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Tuesday 20 June 2017
Quebec Man Extradited to Vermont on Firearms Smuggling ChargesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Alexis Vlachos, 40, of Montreal, Quebec, was recently extradited from Quebec to the District of Vermont to face multiple federal firearms charges, including exporting firearms from the United States into Canada without a permit.
The Indictment against Vlachos, returned by the grand jury in Burlington, Vermont in February 2015 contains five counts. The first count charges Vlachos with conspiring to export approximately 100 handguns from the United States to Quebec without a munitions permit from the Department of State. Two counts charge Vlachos with exporting specific handguns without a permit and the remaining two counts charge Vlachos with possession of specific firearms in the United States while in alien status.
Specifically, the Indictment alleges that from July 2010 to April 2011, Vlachos, working with Annette Wexler and another co-conspirator, bought approximately 100 handguns from multiple licensed gun dealers in Florida. In purchasing these guns, the Indictment alleges that Annette Wexler and another co-conspirator falsely stated on the ATF forms they were the true owners of the firearms when they were actually purchasing these firearms on behalf of Vlachos with the intention of smuggling the firearms into Quebec. In addition, the Indictment alleges that on March 25, 2011, Wexler and a co-conspirator traveled to Derby Line, Vermont with multiple handguns and hid a small backpack containing these handguns in the bathroom of the Haskell Free Library. Vlachos, who entered the Library after walking from Quebec, went into the bathroom, retrieved the backpack containing the handguns, exited the library, and walked back into Quebec without going through the port-of-entry.
Annette Wexler previously pled guilty to conspiring to make false statements to licensed gun dealers and unlawful exportation. Her sentencing is scheduled for July 25, 2017 in Brattleboro, Vermont before United States District Judge J. Garvan Murtha.
At his initial appearance in the United States on June 5, 2017, Vlachos pled not guilty to the charges and did not contest continued detention until trial. Magistrate Judge John M. Conroy ordered that Vlachos be remanded into the custody of the United States Marshals Service pending trial.
The United States Attorney emphasizes that the charges contained in the indictment are merely accusations and that the defendant is presumed innocent unless and until she is proven guilty. If he is convicted, Vlachos faces a maximum possible term of imprisonment of twenty years. However, the actual sentence in the event of a conviction will be determined pursuant to the advisory federal sentencing guidelines and the federal statutory sentencing factors.
The United States is represented by Assistant U.S. Attorney Joe Perella. Vlachos is represented by Paul Volk, Esq. of Burlington. Wexler is represented by Robert Katims, Esq. of Burlington. This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and Homeland Security Investigations of the Department of Homeland Security. In addition, the Royal Canadian Mounted Police and the Surete du Quebec provided assistance.
Princeton man pleads guilty to obtaining a controlled substance by fraudRead the Press Release
CHARLESTON, W.Va. – A Princeton man pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Frederick Torrefiel de Mesa, 38, entered his guilty plea to obtaining a controlled substance by misrepresentation, fraud, forgery, deception and subterfuge.
As part of his plea agreement, de Mesa admitted that on February 22, 2016, in Princeton, he presented a forged prescription for zolpidem, a controlled substance more commonly known as Ambien, to a pharmacist at Hickman Rx Druggist. The prescription was filled the same day, and de Mesa admitted that he wrote the prescription himself without the consent of a doctor.
When de Mesa is sentenced on September 26, 2017, he faces up to four years in federal prison.
The Drug Enforcement Administration conducted the investigation. Senior United States District Judge David A. Faber is presiding over the case.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Previously Deported Mexican National Charged with Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Juan Carlos Quezada-Lara, 31, a previously deported Mexican national illegally residing in Albuquerque, N.M., made his initial appearance today in federal court on a criminal complaint charging him with violating federal firearms laws. Quezada-Lara remains in custody pending a preliminary hearing and detention hearing, both of which are scheduled for tomorrow.
Quezada-Lara is charged in a criminal complaint with being a drug addict in possession of a firearm and being an illegal alien in possession of a firearm on June 19, 2017, in Bernalillo County, N.M. According to the complaint, Quezada-Lara allegedly participated in a methamphetamine transaction with an undercover FBI agent in a parking lot in Albuquerque. Following the alleged transaction, Quezada-Lara fled from the scene in a vehicle and allegedly struck an FBI task force officer with his vehicle while attempting to evade arrest.
The criminal complaint further alleges that law enforcement agents located two firearms and ammunition in Quezada-Lara’s residence. According to court documents, Quezada-Lara is a Mexican citizen who has been deported from the United States on three prior occasions and is allegedly addicted to methamphetamine.
If convicted of the charges in the criminal complaint, Quezada-Lara faces a maximum penalty of ten years in federal prison each of the firearms charges. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Members of the FBI’s Safe Streets Task Force including the New Mexico State Police, Bernalillo County Sheriff’s Office, Homeland Security Investigations and the New Mexico Corrections Department, assisted in the investigation. Assistant U.S. Attorney Letitia C. Simms is prosecuting the case.
Porcupine Man Charged with AssaultRead the Press Release
United States Attorney Randolph J. Seiler announced that a Porcupine, South Dakota, man was charged in federal district court with Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Olin Janis, age 40, was charged on April 18, 2017. He appeared before U.S. Magistrate Judge Daneta Wollmann on June 14, 2017, and pleaded not guilty to the charges. The maximum penalty upon conviction is 10 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Janis assaulting another man at Rockyford, breaking his nose and arm. The charges are merely an accusation and Janis is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Janis was released pending trial. A trial date has not been set.
Pine Ridge Man Charged in Death of ChildRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pine Ridge, South Dakota, man was charged in federal district court with First Degree Murder – Felony Murder, Assault Resulting in Serious Bodily Injury of a Minor, Felony Child Abuse-Aggravated Battery of an Infant, and Felony Child Abuse and Neglect.
Zachariah Michael Poor Bear, age 23, was charged on May 23, 2017. Poor Bear appeared before U.S. Magistrate Judge Daneta Wollmann on June 14, 2017, and pleaded not guilty to the charges. The maximum penalty upon conviction is life imprisonment and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Poor Bear abusing a young child, causing her death. The charges are merely an accusation and Poor Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Sarah Collins is prosecuting the case.
Poor Bear was detained pending further hearing. A trial date has not been set.
Physician at Veterans Administration Medical Center in Martinsburg indicted on drug chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA - A Maryland man was arrested today after being indicted on drug charges by a federal grand jury in Wheeling on June 6, 2017, Acting United States Attorney Betsy Steinfeld Jividen announced.
Daniel J. Bochicchio, of Monkton, Maryland, age 59, was indicted on 15 counts of “Acquiring Fentanyl by Misrepresentation, Fraud, Deception, and Subterfuge.” Bochicchio allegedly acquired fentanyl by fraudulently entering patient information at the Veterans Administration Medical Center in Martinsburg, West Virginia. The crimes are alleged to have occurred from January to March of 2017.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The U.S. Department of Veterans Affairs, Office of Inspector General is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Peter Mendiola Diego Sentenced to Prison in Ice Trafficking CaseRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant PETER MENDIOLA DIEGO, age 48, from Tamuning, was sentenced yesterday in District Court to a 63-month term of imprisonment for Conspiracy to Distribute Methamphetamine. The Court also ordered 3 years of supervised release, 50 hours of community service, and a mandatory $100 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On February 24, 2016, DIEGO entered a guilty plea to an Information that charged Conspiracy to Distribute Methamphetamine, in violation of 21 U.S.C. §§ 846 and 841(a)(1). The investigation revealed that DIEGO and others arranged to have over 831.6 grams of methamphetamine mailed from California to his place of employment in Guam. Forensic analysis determined the drugs were 97.3% pure. Federal agents also seized U.S. currency, including $237,230.00 from defendant’s residence. The money was owed to DIEGO’s source of supply for ice. Defendant agreed to the forfeiture of the seized funds.
U.S. Postal Inspection Service and the Drug Enforcement Administration conducted the investigation. case was prosecuted by Belinda Alcantara, an Assistant United States Attorney for the District of Guam.
Peter Mendiola Diego Sentenced to Prison in Ice Trafficking CaseRead the Press Release
SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant PETER MENDIOLA DIEGO, age 48, from Tamuning, was sentenced yesterday in District Court to a 63-month term of imprisonment for Conspiracy to Distribute Methamphetamine. The Court also ordered 3 years of supervised release, 50 hours of community service, and a mandatory $100 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On February 24, 2016, DIEGO entered a guilty plea to an Information that charged Conspiracy to Distribute Methamphetamine, in violation of 21 U.S.C. §§ 846 and 841(a)(1). The investigation revealed that DIEGO and others arranged to have over 831.6 grams of methamphetamine mailed from California to his place of employment in Guam. Forensic analysis determined the drugs were 97.3% pure. Federal agents also seized U.S. currency, including $237,230.00 from defendant’s residence. The money was owed to DIEGO’s source of supply for ice. Defendant agreed to the forfeiture of the seized funds.
The U.S. Postal Inspection Service and the Drug Enforcement Administration conducted the investigation. The case was prosecuted by Belinda Alcantara, an Assistant United States Attorney for the District of Guam.
Pensacola Tax Preparer Pleads Guilty to Tax FraudRead the Press Release
PENSACOLA, FLORIDA – Christopher Jacob Rankins, 32, of Pensacola, Florida, has pled guilty to twelve counts of aiding or assisting others in the preparation of false tax returns. The guilty plea was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Documents introduced at the time of the guilty plea reflect that, between January 1, 2011, and May 8, 2012, while working as a tax preparer at American Tax Service in Pensacola, Florida, Rankins aided, assisted, counseled, and advised others in the preparation and presentation of fraudulent and false tax returns. The tax returns prepared by Rankins falsely represented the taxpayers’ business expenses and falsely claimed educational credits which resulted in tax payers receiving approximately $356,172 in refunds and credits that the taxpayers were not entitled to receive.
The charges were the result of an investigation by the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney J. Ryan Love.
As to each of the twelve counts, Rankins faces a maximum of three years in prison. The sentencing hearing is scheduled for September 19, 2017, at 2:00 p.m. at the United States Courthouse in Pensacola.
United States Attorney Canova said: “Fraudulent tax returns steal from the millions of honest taxpayers who fulfilled their tax obligations accurately and on time. My office is committed to working with our law enforcement partners, such as the Internal Revenue Service, to ensure that tax dollars are used for their intended purpose.”
“We owe it to honest, hardworking taxpayers to investigate and assist in prosecuting unscrupulous return preparers who steal from the American citizens through the filing of false tax returns,” said IRS-CI Special Agent in Charge Mary Hammond.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Parker Woman Sentenced to 42 Months in Prison for Vehicular AssaultRead the Press Release
PHOENIX – On June 19, 2017, Beatrice Denise Welsh, 40, of Parker, Ariz., a member of the Colorado River Indian Tribes, was sentenced by U.S. District Judge Douglas L. Rayes to 42 months in prison. Welsh was found guilty by a federal jury of assault resulting in serious bodily injury.
Welsh was driving on the Colorado River Indian Tribes Reservation, after consuming alcohol. She knew her vehicle had faulty brakes. Welsh took back dirt roads and sped around a ninety degree corner at a speed between fifty-three and fifty-seven miles per hour. The pickup rolled and her passenger, a non-tribal member, was ejected and is permanently paralyzed.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Colorado River Indian Tribal Police. The prosecution was handled by Abbie Broughton Marsh and Ryan Powell, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-16-325-PHX-DLR
RELEASE NUMBER: 2017-055_Welsh
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Orange County Man Arrested on Federal Charges Related to Illegal Importation of Ozone-Depleting Refrigerant R-22Read the Press Release
LOS ANGELES – A Garden Grove man was arraigned this afternoon on an indictment that charges him with illegally importing a large shipment of a highly regulated chemical compound known as R-22 under the pretense that he was actually bringing into the United States a safe refrigerant that does not destroy the ozone layer.
Mahmoud Alkabbani, 63, the owner of USA Car Parts in Garden Grove, pleaded not guilty this afternoon to the nine-count indictment. A trial date was set for August 8.
Alkabbani was arrested Friday evening at Los Angeles International Airport after he returned to the United States from a trip abroad. At today’s arraignment, he was ordered released on a $30,000 bond.
R-22 is R22Chlorodifluoromethane, sometimes known as HCFC-22, a refrigerant gas and class II ozone-depleting substance. Pursuant to international treaty, the use of R-22 is being phased out around the world. In the United States, pursuant to the Clean Air Act, only parties with unexpended “consumption allowances” are allowed to import the chemical.
According to the indictment, Alkabbani entered into an agreement with a Chinese company to purchase R-22, which was packaged in cylinders bearing counterfeit “Glacier” trademarks. The 2013 contract with the Chinese company listed the product as R-134a – which is not regulated by the Clean Air Act and does not deplete the ozone layer – but a second, secret agreement called for the Chinese company to actually sell R-22 to Alkabbani.
The indictment charges Alkabbani with conspiracy, one count of entry of goods by means of false statement, five counts of passing false and fraudulent papers through a customhouse, one count of smuggling and one count of violating the Clean Air Act by improperly selling R-22 to an undercover agent.
If convicted of the nine counts in the indictment, Alkabbani would face a statutory maximum sentence of 132 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The investigation into Alkabbani is being conducted by special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Environmental Protection Agency.
The prosecution is being handled by Assistant United States Attorney Cameron L. Schroeder of the Cyber and Intellectual Property Crimes Section and Assistant United States Attorney Mark Williams of the Environmental and Community Safety Crimes Section.
Operation “Real Time”: Greenville Man Enters Guilty in Federal Court on Firearms ChargeRead the Press Release
Greenville, South Carolina---- United States Attorney Beth Drake stated today that Dominick Larenzo Johnson, age 30, of Greenville, South Carolina, pled guilty in federal court in Greenville to felon in possession of a firearm, a violation of 18 U.S.C. 922(g)(1). United States District Court Judge Timothy Cain, of Anderson, accepted the plea and will impose sentence after he has reviewed the presentence report prepared by the United States Probation Office. Due to his prior history of felony convictions, Johnson faces a statutory mandatory minimum of 15 years in federal prison and a maximum term of life.
Evidence presented by the government during the plea established that, on September 8, 2016, Johnson bailed out of his vehicle after fleeing an attempted traffic stop initiated by the Greenville County Sheriff’s Office (GCSO). After locating the abandoned vehicle and while canvassing the area looking for Johnson, GCSO deputies learned from eyewitnesses that Johnson had discarded an object in a dumpster as he ran by it. GCSO arrested Johnson shortly thereafter and retrieved that object that Johnson discarded—a backpack containing a loaded 9mm pistol.
Johnson was arrested federally as a part of “Operation Real-Time.” The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the Upstate community.
In addition to the Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Real Time’s core partners include the Greenville Police Department, the Anderson Police Department, the South Carolina Department of Probation, Parole, and Pardon Services, the South Carolina Highway Patrol, United States Probation, the Department of Homeland Security, the Federal Bureau of Investigation, the Drug Enforcement Administration, the 13th Circuit Solicitor’s Office, and the U.S. Attorney’s Office.
Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 115 defendants and seizure of over 130 firearms as well as assorted ammunition from prohibited persons.
U.S. Attorney Beth Drake commended the partnership between the state and federal agencies that led to the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Attorney’s Office adopting the case. “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”
The Greenville County Sheriff’s Office along with agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case. Assistant United States Attorney Max Cauthen in the Greenville U.S. Attorney’s Office is handling the case.
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On “American Eagle Day” the Justice Department Highlights its Longstanding Role in Protecting the Nation’s Eagle PopulationsRead the Press Release
In recognition of June 20, 2017, as American Eagle Day, Acting Assistant Attorney General Jeffrey H. Wood of the Environment and Natural Resources Division (ENRD) issued the following statement:
“Our Division is proud to play a central role in the protection of the bald eagle, our national symbol and a distinctive emblem of freedom and the sovereignty of the United States. Over the course of many years, the lawyers in our Division have worked to promote conservation of lands and resources across the United States and to enforce federal laws protecting our natural treasures, including wildlife like bald eagles, golden eagles, and other raptors. As we celebrate American Eagle Day, we also honor the work of our client agencies—the U.S. Fish and Wildlife Service and the National Park Service at the U.S. Department of Interior, in particular—as well as state conservation agencies and private citizens around the nation for their vital work in this area.”
On June 15, the U.S. Senate passed a resolution designating June 20, 2017, as “American Eagle Day” and celebrating the recovery and restoration of the bald eagle. By 1963, only an estimated 417 nesting pairs of bald eagles remained in the lower 48 states. Through the extraordinary efforts of American citizens around the country, including state and federal agencies, conservations groups, and private landowners, the bald eagle once again began to flourish. By 2007, the number of nesting pairs of eagles in the lower 48 states increased to approximately 11,000, and the Secretary of the Interior and the Director of the U.S. Fish and Wildlife Service ultimately determined that the bald eagle is no longer endangered or threatened.
The attorneys in the Environment and Natural Resources Division at the U.S. Department of Justice have a key role in efforts related to bald eagle protection under the laws passed by Congress, including the Bald and Golden Eagle Protection Act, the Migratory Bird Treaty Act and the Lacey Act. The Division’s Wildlife and Marine Resources Section represents the U.S. Fish and Wildlife Service and other wildlife agencies in litigation involving the Bald and Golden Eagle Protection Act, the Endangered Species Act, and other federal wildlife conservation laws. The Division’s Environmental Crimes Section brings criminal cases against individuals and organizations that break the laws that protect our nation’s ecological and wildlife resources.
The bald eagle is prominently featured in the official seal of the U.S. Department of Justice.
For more information about the Justice Department’s Environment and Natural Resources Division, please visit its website at https://www.justice.gov/enrd.
Nigerian Man Pleads Guilty in Manhattan Federal Court to Participating in Business Email Compromise ScamsRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that DAVID CHUKWUNEKE ADINDU pled guilty this morning before U.S. District Judge Paul A. Crotty in Manhattan federal court to a superseding Information that charged him with one count of conspiracy to commit wire fraud and one count of conspiracy to use a means of identification in connection with a federal crime. These charges stemmed from ADINDU’s participation in fraudulent business email compromise scams that targeted thousands of victims around the world, including the United States. Collectively, the scams attempted to defraud victims of millions of dollars.
Acting U.S. Attorney Joon H. Kim said: “As he has now admitted, David Chukwuneke Adindu participated in thousands of business email compromise scams, trying to trick various businesses into wiring millions of dollars to his overseas bank accounts. Cyber is increasingly becoming a powerful tool for criminals, including those like Adindu who indiscriminately target businesses around the world with scams. We are committed to tracking down and holding these cyber fraudsters accountable.”
FBI Assistant Director William F. Sweeney Jr. said: “Adindu targeted his victims from afar, but the pain he likely inflicted upon them hit too close to home. Most people assume they won't become a victim of a business email scam, but this case should remind the public that everyone is at risk. Today's guilty plea is yet another example of our efforts to confront cyber crime worldwide.”
According to the Information and statements made at public court proceedings:
Between 2014 and 2016, ADINDU participated in Business Email Compromise scams (“BEC scams”) targeting thousands of victims around the world, including in the United States. As part of the BEC scams, emails were sent to employees of various companies directing that funds be transferred to specified bank accounts. The emails purported to be from supervisors at those companies or third party vendors that did business with those companies. The emails, however, were not legitimate. Rather, they were either from email accounts with a domain name that was very similar to a legitimate domain name, or the metadata in the emails had been modified so that the emails appeared as if they were from legitimate email addresses. After victims complied with the fraudulent wiring instructions, the transferred funds were quickly withdrawn or moved into different bank accounts. In total, the BEC scams attempted to defraud millions of dollars from victims.
ADINDU and others carried out BEC scams by exchanging information regarding: (1) bank accounts used for receiving funds from victims; (2) email accounts for communicating with victims; (3) scripts for requesting wire transfers from victims; and (4) lists of names and email addresses for contacting and impersonating potential victims.
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ADINDU, 29, of Lagos, Nigeria, and Guangzhou, China, was arrested on November 22, 2016. ADINDU pled guilty today to one count of conspiracy to commit wire fraud, which carries a maximum penalty of 20 years in prison, and one count of conspiracy to use a means of identification in connection with a federal crime, which carries a maximum penalty of 15 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
ADINDU is scheduled to be sentenced by Judge Crotty on September 26, 2017 at 3:30 p.m.
Mr. Kim praised the investigative work of the FBI. Mr. Kim also thanked the Yahoo! E-Crime Investigations Team, and noted that the investigation is continuing.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Andrew K. Chan is in charge of the prosecution.
Nicholas County man pleads guilty to attempted enticement of a minorRead the Press Release
CHARLESTON, W.Va. – A Nicholas County man pleaded guilty today to a federal sex crime involving a minor, announced United States Attorney Carol Casto. John Marshall Underwood, Jr., 44, of Gilboa, entered his guilty plea to attempted enticement of a minor to engage in sexual activity.
Underwood admitted that from December 14, 2016, through February 1, 2017, he used a cell phone to communicate with a woman he believed to be a prostitute who had custody of two minor nieces. The woman Underwood thought was a prostitute was actually an undercover law enforcement officer. Underwood also admitted that he communicated with the woman about engaging in commercial sexual activity with one of the nieces. On at least two occasions, Underwood communicated with an individual he believed to be the niece and attempted to entice her to engage in commercial sexual activity. The individual Underwood thought was the niece was also an undercover law enforcement officer. Underwood admitted that on February 1, 2017, he arranged a meeting with the individuals who were actually undercover officers and was arrested after he arrived at the meeting location. Law enforcement recorded all the calls between Underwood and the undercover officers.
Underwood faces at least 10 years and up to life in federal prison. Underwood will also be required to register as a sex offender. Sentencing is scheduled for September 20, 2017.
The investigation was conducted by the Charleston Police Department, the West Virginia State Police, and Homeland Security Investigations. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This prosecution is being brought as part of an ongoing initiative of the United States Attorney’s Office to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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New Haven Man Who Brandished Gun Outside Nightclub Sentenced to 3 Years in PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that EDWARD FULTON, 34, of New Haven, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 36 months of imprisonment, followed by three years of supervised release, for illegally possessing a firearm.
According to court documents and statements made in court, in the early morning hours of March 12, 2016, a New Haven Police detective working an extra duty assignment at a nightclub on Hamilton Street observed FULTON outside the club pointing a handgun at a group of people shortly after the club had closed for the evening. The detective drew his service revolver and ordered FULTON to drop his weapon, at which time FULTON put the gun in his sweatshirt and kept walking. The detective ordered FULTON to stop, FULTON eventually complied and the firearm was seized.
The firearm, a Cobra nine millimeter derringer, was cocked and loaded with two rounds of ammunition. It had been reported stolen in New Haven in 2015.
FULTON’s criminal history includes multiple felony convictions for robbery and firearm offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
FULTON has been detained since his arrest on March 12, 2016. On March 13, 2017, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Peter D. Markle.
Mission Man Faces Cocaine ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
Charles Griffen Spotted Elk, age 20, was indicted on May 16, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 13, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on November 6, 2016, Spotted Elk possessed cocaine, a Schedule II controlled substance, with the intent to distribute it within the District of South Dakota.
The charge is merely an accusation and Spotted Elk is presumed innocent until and unless proven guilty.
This case is being investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Spotted Elk was released on bond pending trial. A trial date has not been set.
Mexican Man Sentenced to Nine Years in Prison for Drug Distribution, Illegal Weapons PossessionRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Mexican man to nine years in prison for distributing methamphetamine and illegally possessing firearms, announced Acting U.S. Attorney Robert O. Posey and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Steven L. Gerido.
U.S. District Court Judge R. David Proctor sentenced OSCAR ADRIAN CASTILLO, 25, on one count of illegally distributing more than 50 grams of methamphetamine in Jefferson County on Sept. 15, and on one count of possessing firearms on Sept. 20 while an illegal resident in the United States. Castillo possessed a Remington 12-gauge shotgun and a Smith & Wesson .40-caliber pistol at the Bessemer home where he was living at the time of his arrest. Castillo pleaded guilty to the charges in November.
According to Castillo’s plea agreement with the government, Castillo sold 84.5 grams of methamphetamine to a confidential informant on Sept. 15 in the parking lot of the Walmart in Bessemer. ATF agents, Jefferson County Sheriff’s deputies and officers with the West Alabama Narcotics Task Force executed a search warrant at Castillo’s Bessemer residence five days later and recovered the firearms.
ATF, WANTF and the Jefferson County Sheriff’s Office investigated the case, which Assistant U.S. Attorney John B. Felton prosecuted.
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Massachusetts Man Pleads Guilty to Bank and Credit Card Fraud and Tax EvasionRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Steven Nygren, 50, of Salem, Massachusetts, pled guilty today in U.S. District Court to bank fraud, credit card fraud and tax evasion charges.
According to court records, from June 2014 through August 2015, Nygren used his position as financial officer of a Brooklin, Maine business to forge and embezzle 63 checks worth over $732,000. In 2015, he charged $62,000 to business credit cards for unauthorized personal purchases. Finally, from 2010 through 2016, he evaded federal unemployment and income taxes.
Nygren faces up to 30 years in prison, a $1,000,000 fine, and five years of supervised release for bank fraud; up to 10 years in prison, a $250,000 fine, and three years of supervised release for access device fraud; and up to five years, a $100,000 fine, and three years of supervised release for tax evasion. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Maine State Police, the Federal Bureau of Investigation, and the Internal Revenue Service.
Lexington Business Owner Pleads Guilty to Failing to Pay $1.4 Million in Payroll TaxesRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Lexington, Mo., business owner pleaded guilty in federal court today to failing to pay over to the IRS more than $1.4 million in payroll taxes.
Randy K. Small, 50, of Lexington, waived his right to a grand jury and pleaded guilty before U.S. District Judge Gary A. Fenner to a federal information that charges him with failure to pay over to the IRS the payroll taxes of his employees.
Small is the owner of RSB Leasing, a transportation business that provides school bus service to multiple school districts in Missouri (including the Buchanan County R-IV School District, the Lexington, Mo., R-5 School District and the Hardin-Central C-2 School District). Small operated the business under three different names, and failed to fully pay employment taxes for each of the three businesses, resulting in an aggregate tax loss of at least $1,457,483.
Small operated the business under the name Hill Transportation, Inc., from 2005 through February 2010. After accruing over $300,000 in employment tax liability, Small discontinued operations under Hill Transportation and began operating under the name SPYKE, LLC. After accruing over $1 million in employment tax liability, Small discontinued operations under SPYKE in 2012. Finally, Small operated under the name RSB Leasing which has continued to accrue tax liability.
Small admitted that he did not deposit the Federal Insurance Contributions Act and Medicare (FICA) taxes or the income taxes that he withheld from his employees’ wages, nor did he pay the employer portion of FICA.
While accruing employment tax liabilities, Small withdrew significant amounts of cash, purchased new buses and maintained a personal collection of cars. From 2009 through 2011, Small withdrew $286,052 from the business bank account in the form of cash and cashier’s checks payable to himself. Small spent an additional $147,000 to purchase new buses for the business.
Under federal statutes, Small is subject to a sentence of up to five years in federal prison without parole and must pay restitution to the IRS. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by IRS-Criminal Investigation.
Leader of Drug Organization Sentenced to 27 Years in PrisonRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Corey R. Amundson announced today that U.S. District Judge Shelly D. Dick sentenced Wilbert Mathes, 40, to twenty seven (27) years in federal prison, as the leader of a large scale drug trafficking network operating in the Baton Rouge region. Mathes was also ordered to forfeit to the United States $593,000, representing the drug proceeds generated during the conspiracy.
At the conclusion of a four-day jury trial on September 22, 2016, Mathes was convicted of conspiracy to distribute more than 500 grams of cocaine and cocaine base, distribution of cocaine, possession with the intent to distribute more than 500 grams of cocaine, and unlawful use of a communications facility.
The defendant and his seven co-conspirators were charged in a multi-count superseding indictment on October 29, 2015, with conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine and cocaine base, distribution of cocaine, possession of firearms by a convicted felon, unlawful use of communications facilities and forfeiture. The co-conspirators have previously been found guilty of the charges against them.
The investigation, deemed Operation Roadblock, was another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
Acting U.S. Attorney Amundson stated, “My office, together with our federal, state, and local partners, will continue to focus our energies and resources on prosecuting the members of these large scale drug trafficking organizations to the full extent of the law. These organizations must be eradicated to protect the citizens of Baton Rouge from the crime and violence associated with their operations.”
Drug Enforcement Administration (DEA) Assistant Special Agent-in-Charge Brad L. Byerley stated, “The sentencing today of Wilbert Mathes sends a message to all who engage in the distribution of illegal drugs - we will work together to see that you are brought to justice. Federal and local law enforcement successfully collaborated in order to put Mathes in federal prison for 27 years as a result of his desire to supply the citizens of Baton Rouge with cocaine.”
This operation was handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration, the Baton Rouge City Police Department, East Baton Rouge Sheriff’s Office, West Baton Rouge Parish Sheriff’s Office, Louisiana State Police, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). This matter was prosecuted by Assistant United States Attorney Jennifer Kleinpeter, who also serves as a Deputy Criminal Chief, and Assistant United States Attorney Jessica Thornhill.
Justice Department and the State of New York Settle Claims over Voter Registration OpportunitiesRead the Press Release
The Department of Justice announced today that it has entered an agreement with the State of New York to resolve claims it failed to provide voter registration opportunities required by Section 5 of the National Voter Registration Act of 1993 (NVRA).
Section 5 of the NVRA requires states to provide voter registration opportunities for federal elections when eligible citizens apply for or seek to renew their driver’s license or other identification documents through state motor vehicle offices. Section 5 also requires states to update voter registration records when registrants update the address associated with a driver’s license or other identification document, unless the registrant indicates otherwise.
Justice Department’s investigation found noncompliance with these NVRA requirements in New York State. Applications for New York driver’s licenses, learner’s permits, and identification cards did not consistently serve as applications for voter registration with respect to elections for federal office, as required by the NVRA. Moreover, the procedures by which citizens notified motor vehicle authorities that their address had changed did not consistently serve as notification of a change of address for voter registration purposes, as the NVRA requires.
“Our democracy is strengthened when voter registration is accessible to all eligible citizens,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The Civil Rights Division commends the State of New York for working with the Division to ensure that New York’s citizens have the opportunity to register to vote and update their voting information easily and conveniently through motor vehicle agencies, as envisioned by the National Voter Registration Act.”
Under the terms of the settlement, New York will fully integrate a voter registration opportunity into all applications for a driver’s license and other identification documents, including in-person and online renewal applications. New York will also ensure that all change of address information submitted for driver’s license purposes will be used to update voters’ address information unless voters decline to update their voter registration. The State has worked diligently throughout the settlement process to bring about NVRA compliance.
“The Motor Voter provision of the NVRA critically supports and enhances our citizens’ access to the democratic process,” said U.S. Attorney Rick Hartunian of the Northern District of New York. “I commend our many state officials for their hard work in reaching this agreement and for their commitment to protecting and promoting voting rights in New York.”
More information about the National Voter Registration Act and other federal voting laws is available on the Department of Justice website at https://www.justice.gov/crt/voting-section. Complaints about voter registration practices may be reported to the Civil Rights Division at 1-800-253-3931.
Judge Sentences FCI-Loretto Inmate to Additional 9 Months in Prison for Attempting to Obtain SuboxoneRead the Press Release
JOHNSTOWN, Pa. – An inmate at the Federal Correctional Institution in Loretto, Pa., has been sentenced in federal court to 9 months in prison and three years’ supervised release, consecutive to the 120 months sentence and supervised release provision he is serving currently from the District of Maryland, on his conviction of attempting to obtain contraband in prison, Acting United States Attorney Soo C. Song announced today.
United States District Judge Kim R. Gibson imposed the sentence on Douglas Vines, 45.
According to information presented to the court, on July 20, 2015, Vines attempted to obtain a quantity of suboxone.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Ms. Song commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Federal Correctional Institution, Special Investigative Staff, for the investigation leading to the successful prosecution of Vines.
Henrico Heroin Dealer Sentenced to 10 Years in PrisonRead the Press Release
RICHMOND, Va. – A Henrico man was sentenced today to 10 years in prison for distribution of heroin.
Arlando Harris, 35, pleaded guilty on Dec. 29, 2016. According to the statement of facts filed with the plea agreement, Henrico Police executed a search warrant at Harris’ mother’s residence in Henrico on March 16, 2016. Police found two large bags of suspected heroin, two large bags of suspected cocaine, didgital scales, baking soda, cell phones, a handgun, ammunition, and approximately $73,000 in cash. After searching Harris’ residence, police discovered another handgun, ammunition, digital scales, numerous baggies with the corners missing, and $460 in cash. During an interview with Henrico Police officers, Harris admitted to selling drugs to support himself, and was found in possession of 152 grams of heroin, or more than 1,500 individual doses. After being released on bond pending trial for drug distribution, Harris was again arrested by Henrico Police for selling cocaine.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Virginia Attorney General; Humberto I. Cardounel, Jr., Chief of Henrico County Police Division; and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Special Assistant U.S. Attorney Michael A. Jagels prosecuted 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. 3:16-cr-132.
Hazleton Woman Charged with Making False Statements in the Purchase of Six FirearmsRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jasmine T. Wing, a resident of Hazleton, PA, was charged on June 16, 2017 in a criminal information with making false statements in the purchase of six firearms in Luzerne County.
According to United States Attorney Bruce D. Brandler, Wing, age 25, falsely represented that she was the actual buyer of six firearms purchased from Bob’s Sporting Goods in Hazleton, PA, and from Dave’s Gun Shop in Drums, PA between September 19, 2014 and April 14, 2015. The firearms were:
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a Glock 19 9mm;
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a Glock 23 .40 caliber;
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a Taurus PT745Pro .45acp;
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an Extar EXP556 5.56;
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a CAI/Romarm Micro Draco 7.62x39; and
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a Ruger P91DC .40acp.
The CAI/Romarm Micro Draco is a semiautomatic firearm that is capable of accepting a large capacity magazine.
The government simultaneously filed a plea agreement with Wing to the alleged charge, which is subject to approval of the court. As part of the plea agreement, Wing stipulated that she knew that her offense would result in the transfer of firearms to a person prohibited from possessing them. A date for Wing’s arraignment has not been set.
The matter was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant United States Attorney Phillip J. Caraballo.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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 penalties under federal law for the charge are 10 years of 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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Harrisonburg Man Pleads Guilty to Submitting Fraudulent Voter Registration FormsRead the Press Release
Harrisonburg, VIRGINIA – Acting United States Attorney Rick A. Mountcastle announced today that a former staffer with Harrisonburg Votes, a political organization affiliated with the Democratic Party, who was paid to register area voters during the weeks leading up to the 2016 National Election, admitted in federal court that he caused 18 fraudulent Virginia Voter Registration Forms to be submitted to the local registrar’s office.
Andrew J. Spieles, 21, Harrisonburg, pled guilty today in the United States District Court for the Western District of Virginia in Harrisonburg to a one-count Information charging him with knowingly transferring false Virginia Voter Registration Forms. As part of the plea agreement, Spieles agreed to a prison sentence of 100 to 120 days.
According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Jeb Terrien, in July 2016 Spieles’ job was to register as many voters as possible and reported to Democratic Campaign headquarters in Harrisonburg.
In August 2016, Spieles was directed to combine his registration numbers with those of another individual because their respective territories overlapped. After filling out a registration form for a voter, Spieles entered the information into a computer system used by the Virginia Democratic Party to track information such as name, age, address and political affiliation. Every Thursday an employee/volunteer hand-delivered the paper copies of the registration forms to the Registrar’s Office in Harrisonburg.
On August 15, 2016, an employee of the Registrar’s Office contacted law enforcement after another employee in the office recognized a registration form submitted in the name of the deceased father of a Rockingham County Judge. The Registrar’s Office discovered multiple instances of similarly falsified forms when it reviewed additional registrations. Some were in the names of deceased individuals while others bore incorrect middle names, birth dates, and social security numbers. The Registrar’s Office learned that the individuals named in these forms had not in fact submitted the new voter registrations. The assistant registrar’s personal knowledge of the names of some of the individuals named in the falsified documents facilitated the detection of the crime.
Spieles admitted that he prepared the false voter registration forms by obtaining the name, age, and address of individuals from “walk sheets” provided to him by the Virginia Democratic Party, fabricating a birth date based on the ages listed in the walk sheet, and fabricating the social security numbers. Spieles admitted that he created all 18 fraudulent forms himself and that no one else participated in the crime.
The investigation of the case was conducted by the Federal Bureau of Investigation and the Harrisonburg Police Department. The Rockingham County Commonwealth’s Attorney’s office also assisted in the investigation. Assistant United States Attorney Jeb Terrien prosecuted the case for the United States.
Greenville Man, Charged in Federal Court for Conspiracy to Commit Six Armed Robberies of Local Businesses, Pleads GuiltyRead the Press Release
Greenville, South Carolina ---- United States Attorney Beth Drake stated today that Delmar Deshion Jackson, age 39, of Greenville, South Carolina, pled guilty in federal court in Greenville. Jackson pled guilty to conspiracy to commit six armed robberies in violation of Title 18, United States Code, Section 1951(a). United States District Judge Henry M. Herlong, Jr., of Greenville, accepted the plea and will impose a sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Jackson conspired with Demiriao Trione Bonds, between October 26, 2015 and November 26, 2015, including on Thanksgiving day, to rob six area businesses. An investigation into the activity of the two men revealed that Jackson would provide transportation to the target businesses for Bonds. Bonds committed five of the six robberies with a firearm, which he brandished during the course of each, and a sixth, under threat of a firearm. During the course of the six robberies, the co-conspirators took from the targeted businesses cash, retail inventory, personal effects, and store cellular devices. At the time of his arrest, Jackson was found in possession of various items connected with the robberies, including one of the firearms, stolen pharmaceuticals, and a piece of distinctive winter apparel.
Ms. Drake stated that the maximum penalty the defendant can receive is a fine of $250,000 and/or imprisonment of up to 20 years, plus a special assessment of $100. Bonds had previously pled guilty pursuant to a plea agreement, which stipulated to a sentence of 32 years.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) working in conjunction with the Greenville County Sheriff’s Office. Assistant United States Attorney D. Josev Brewer of the Greenville office handled the case.
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Grant County Man convicted of meth trafficking and firearm chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Petersburg, West Virginia, man was convicted today of methamphetamine distribution and illegal possession of a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Joseph Nathaniel Hartman, age 33, pled guilty to one count of “Distribution of Methamphetamine” and one count of “Unlawful Possession of a Firearm.” The crimes occurred in August 2015 in Grant County.
Hartman faces up to 20 years incarceration and a fine of up to $1,000,000 for the first count and 10 years incarceration and a fine of up to $250,000 for the second count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, The West Virginia State Police Bureau of Criminal Investigation, and the Grant County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.Grand Jury Returns Indictment Charging Felon with Illegal ReentryRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging an El Salvadorian man with illegally reentry into the United States.
According to allegations in the indictment, Jose Amilcar De Leon Garcia, 44, was found in the United States on or about July 5, 2016, after having been removed on two separate occasions, and without having obtained the express consent of the Attorney General or the Secretary of Homeland Security to reapply for admission to the United States.
De Leon Garcia, a native and citizen of El Salvador, was removed from the United States in November 2012 and again in July 2014. On or about July 5, 2016, U.S. Immigration and Customs Enforcement became aware of his presence in the United States when De Leon Garcia was charged in Fairfax County for felony assault and battery on a police officer, an offense for which he was convicted on February 7.
De Leon Garcia has been charged with illegal reentry and faces a maximum penalty of 2 years in prison if convicted. 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 Russell Hott, Acting Director of U.S. Immigration and Customs Enforcement’s Washington, D.C. Enforcement and Removal Operations Field Office, made the announcement. Special Assistant U.S. Attorney Rebecca A. Caruso is 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-142.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Georgetown woman pleads guilty to copying U.S. money, printing counterfeit versionsRead the Press Release
ALEXANDRIA, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Georgetown woman pleaded guilty last week to making fake U.S. $20 bills.
Gena Armstrong, 20, of Georgetown, La., pleaded guilty Friday before U.S. District Judge Dee D. Drell to one count of manufacturing counterfeit U.S. securities. According to the guilty plea, Armstrong bought a copy machine and paper on March 29, 2016 from an Alexandria office supply business. She then entered a vehicle driven by a friend. While driving around the city, Armstrong copied a genuine $20 bill (Federal Reserve Note) and began printing counterfeit money. In total, she printed a two-sided cut $20 bill, 30 two-sided uncut $20 bills and nine one-sided uncut $20 bills. While driving through the city, the friend stopped at a convenience store. Armstrong gave the friend the counterfeit $20 bill to make his purchase while there.
Armstrong faces up to 20 years in prison, three years of supervised release and a $250,000 fine. The court set the sentencing date for September 13, 2017.
The U.S. Secret Service and the Rapides Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Grady A. Crooks is prosecuting the case.
Franklin, Tennessee Man Pleads Guilty to Transporting Illegal AlienRead the Press Release
Ronald Edward Strickland, 70, of Franklin, Tenn., pleaded guilty today in U.S. District Court, to transporting an illegal alien, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
Strickland, a retired Tennessee Highway Patrol sergeant, was arrested on a criminal complaint on August 1, 2016, and indicted on August 31, 2016.
According to court documents, in early 2016, Strickland devised a plan to smuggle a 22- year-old female from Honduras into the United States. Strickland texted the woman on January 7, 2016, about uniting with him and engaging in a sexual relationship. Strickland then began a series of text communications with an individual in Honduras and others, in which he discussed smuggling the woman into the Unites States. Strickland maintained the text communications, monitoring the progress of the woman’s journey, until he was notified that the woman had arrived in Houston, Texas.
In July 2016, Strickland drove to Houston, Texas, where he picked up the woman and drove her to his home in Franklin, Tenn.
Acting on a tip, on July 22, 2016, HSI agents went to Strickland’s Franklin home, where they located the 22-year-old female. The subsequent investigation determined that the woman had been illegally smuggled into the United States and that Strickland had paid a coyote $8,000 to smuggle her from Honduras to the United States. The investigation also determined that Strickland maintained an apartment in Honduras and travelled there on a regular basis.
Strickland faces up to 5 years in prison when he is sentenced on October 17, 2017.
This case was investigated by Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorneys Henry Leventis and Lynne T. Ingram.
Fort Thompson Man Charged with Voluntary ManslaughterRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Voluntary Manslaughter.
Zachery Lee Ziegler, age 31, was indicted on June 14, 2017. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 14, 2017, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 23, 2017, Ziegler, upon a sudden quarrel and heat of passion, unlawfully killed another human being.
The charge is merely an accusation and Ziegler is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Ziegler was released on bond. A trial date has not been set.
Florida Man Pleads Guilty to Obstructing the IRS and Stealing Government FundsRead the Press Release
A Boynton Beach, Florida resident pleaded guilty today to corruptly endeavoring to obstruct the administration of the internal revenue laws and theft of government funds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, from 2010 to 2015, David R. Andre, 41, filed fraudulent personal tax returns with the Internal Revenue Service (IRS) that sought more than $5.6 million in refunds to which he was not entitled. As a result of these returns, which falsely reported income earned and income tax withheld, the IRS paid Andre more than $485,000 in refunds. He used the funds to purchase his residence and multiple vehicles, including a Jaguar and Mercedes Benz. In late 2012, the IRS began trying to collect the taxes Andre owed and placed a lien on his residence. Days after the lien was recorded, Andre filed a form with the IRS that falsely claimed he was making a substantial payment, and the IRS released the lien. After Andre did not make the payment, the IRS revoked its release and re-filed the lien. In 2015, Andre also made false statements to IRS agents and told them that he purchased his residence with money he inherited, did not recall receiving any large refunds from the IRS and had not filed a tax return since 2008.
Sentencing is scheduled for Sept. 8. Andre faces a statutory maximum sentence of three years in prison for corruptly endeavoring to obstruct and impede the due administration of the internal revenue laws and a statutory maximum sentence of 10 years in prison for theft of government funds. He also faces a period of supervised release, restitution, forfeiture and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Daniel McGraw and Charles Edgar, Jr. of the Tax Division, who are prosecuting the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Southern District of Florida for its substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Federal inmate pleads guilty to possessing weapon in prisonRead the Press Release
CHARLESTON, W.Va. – An inmate at the Federal Correctional Institution at McDowell pleaded guilty today to possessing a weapon in prison, announced United States Attorney Carol Casto. Christopher Williams, 32, entered his guilty plea to possession of a weapon by an inmate of the institution.
Williams admitted that on August 25, 2016, he possessed a handcrafted weapon commonly known as a “shank.” The weapon was a piece of metal about six inches long, sharpened on one end, with a handle made of duct tape. The weapon was discovered during a search of Williams when a prison staff member observed it fall from his clothing.
Williams faces up to five years in federal prison when he is sentenced on September 26, 2017.
This case was investigated by the Federal Bureau of Prisons. Assistant United States Attorney John File is handling the prosecution. The plea hearing was held before Senior United States District Judge David A. Faber.
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Federal Jury Finds Corcoran Man Guilty of Multi-Million Dollar Fraud in the Bakken Oil FieldsRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced the conviction of RONALD DAVID JOHNSON, 51, for stealing more than $2.1 million from victims who were hoping to invest successfully in the North Dakota oil boom. JOHNSON, who was charged in a superseding indictment with nine counts of wire fraud and one count of money laundering, was found guilty on all counts by a federal jury in St. Paul, Minn.
Assistant U.S. Attorney Joseph H. Thompson wrote: “Ron Johnson saw the North Dakota oil boom as an opportunity to steal from people looking to invest in the Bakken. Under the guise of a fake company, Johnson defrauded investors, including a former girlfriend and his own church pastor, out of more than $2 million. Fortunately, after just two hours of deliberation, the jury recognized Johnson for the selfish fraud he committed and convicted him on all counts.”
FBI Minneapolis Division Special Agent in Charge, Richard T. Thornton said, “Mr. Johnson is a classic con-man who lured investors with empty promises of financial gain and false assurances to provide housing to hard working oil workers. In reality, Mr. Johnson stole millions to support his expensive hobbies and line his pockets. The FBI is committed to identifying these types of fraudsters, bringing them to justice, and getting restitution for the victims.” Thornton added that, “The FBI is pleased with the jury’s decision and grateful for their service.”
“The guilty verdict of Ronald Johnson again emphasizes that we and our law enforcement partners will continue our aggressive pursuit of those who defraud and harm investors,” said Hubbard Burgess, IRS Criminal Investigation Special Agent in Charge, St. Paul Field Office. “We are proud to work with the U.S. Attorney’s Office to investigate and prosecute individuals who attempt to enrich themselves by fraudulent means, and to help put a stop to investment schemes and other types of white collar crime.”
As proven at trial, JOHNSON came up with an investment idea to address the need to house oil workers in the Bakken in North Dakota and Montana. The idea, registered as Indoor RV Parks, LLC (“IRVPK”), would allow oil workers to eschew more common barracks-style housing in favor of comfortable indoor RV parks, specifically large climate-controlled warehouses where oil workers could park their RVs and have access to shared amenities like on-site storage, laundry and vending machines. Johnson promised his investors that as “members” of IRVPK, they would, based on the amount of the investment, receive a percentage of the rental income and other revenue generated by the indoor RV park. As part of his scheme, JOHNSON sent emails and letters to investors designed to lull them into a false sense of security and to postpone complaints regarding delays in the project.
As proven at trial, JOHNSON fraudulently solicited $2.1 million from four investors in IRVPK, telling the investors that their money would be used to build and manage indoor RV parks for oil workers. Instead of using the investor money to purchase land and start construction on the RV parks, JOHNSON used the funds to repay prior investors, fund his personal 51-acre cattle farm, take vacations, buy vintage Chevrolets, and purchase real estate, including a 17-acre island on Mink Lake in Maple Lake, Minn. As of today, IRVPK has not built any indoor RV Parks, has not acquired any property in North Dakota or Montana, and has a bank account that is empty.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS and the FBI.
This case is being prosecuted by Assistant U.S. Attorneys Benjamin Langner and Joseph H. Thompson.
Defendant Information:
RONALD DAVID JOHNSON, 51
Corcoran, Minn.
Convicted:
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Wire fraud, 9 counts
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Money laundering, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
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Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Beth Drake stated today that a federal grand jury in Columbia, South Carolina, returned Indictments against the following:
Georgia Man Indicted for Extortion and Pretending to be an Attorney. Phillip Asher, a/k/a “Phillip Reynolds,” of Douglasville, Georgia, was charged in a 7-count indictment that related to his attempting to defraud and extort money from the owner of a Columbia restaurant by pretending to be an attorney. The indictment charges that Asher demanded amounts of $250,000 and $300,000, threatening legal action, economic harm, and immigration consequences if the money was not paid.
Asher is charged with Hobbs Act extortion, a violation of Title 18, U. S. C. §1951, wire fraud, a violation of Title 18, U. S. C. §1343, and traveling in interstate commerce to execute a fraud, a violation of Title 18, U. S. C. §2314. The maximum penalty Asher could receive is 20 years imprisonment and a maximum fine of $250,000 for the extortion and wire fraud counts and 10 years imprisonment and $250,000 for the traveling in interstate commerce to commit fraud. The case was investigated by agents of the FBI and is assigned to Assistant United States Attorneys Jim May and Alyssa Richardson of the Columbia office for prosecution.
The United States Attorney stated that all charges in these indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Ex-Suffolk County Conservative Party Chairman Edward Walsh, Jr., Sentenced to 24 Months for Fraud SchemeRead the Press Release
Earlier today at the federal courthouse in Central Islip, New York, former Suffolk County Conservative Party Chairman Edward M. Walsh, Jr. was sentenced to 24 months in prison, 3 years of supervised release, $202,225 in restitution, and $245,811.21 in forfeiture. Walsh was convicted at trial in March 2016 on charges of theft of government funds and wire fraud in connection with his employment with the Suffolk County Sheriff’s Office (SCSO). The sentencing proceeding was before United States District Judge Arthur D. Spatt.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
As proven at trial, from January 2011 to April 2014, Walsh, a SCSO Correction Officer III Investigator, falsely represented to the SCSO that he had worked certain regular and overtime hours when in fact, he did not work those hours. Contrary to his representations, Walsh was, among other things, playing golf, gambling at Foxwoods Casino, or performing work on behalf of the Suffolk County Conservative Party. In reliance on Walsh’s false representations, the SCSO paid Walsh wages for hours he did not work. Over the course of the indictment period, Walsh was paid more than $200,000 for regular and overtime hours he did not work.
“The defendant, Edward Walsh, Jr., engaged in sports gambling and politics on the taxpayer’s dime to the tune of $200,000,” stated Acting United States Attorney Rohde. “We will continue to ensure that public officials who abuse their positions will be brought to justice.” Ms. Rohde extended her grateful appreciation to the FBI New York Office for its excellent work in the investigation that lead to Walsh’s trial conviction and the SCSO for its important assistance with the investigation.
“What Walsh did was steal taxpayer money, plain and simple. He misrepresented the hours he worked with the intent of deceiving his employer, the Suffolk County Sheriff’s Office, which in turn netted him more than $200,000,” stated FBI Assistant Director-in-Charge Sweeney. “We certainly expect more from our public servants. Today’s sentence should remind the public that nobody gets a free pass.”
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Raymond A. Tierney, Catherine M. Mirabile, and Madeline O’Connor are in charge of the prosecution.
The Defendant:Edward M. Walsh, Jr.
Age: 51East Islip, New York
E.D.N.Y. Docket No. 15-CR-091 (ADS)
Essex County, New Jersey, Man Gets 51 Months in Prison for Prison Tax ScamRead the Press Release
NEWARK, N.J. – An East Orange, New Jersey, man was sentenced today to 51 months in prison for his role in a conspiracy to file false federal income tax returns on behalf of inmates at the Essex County Correctional Facility, Acting U.S. Attorney William E. Fitzpatrick announced.
Reginald Eaford, 47, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with conspiracy to make and present false, fictitious, and fraudulent claims to the IRS. Judge Walls imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
From 2013 through Aug. 5, 2014, Eaford, Winfred Moses, 49, also of East Orange, and others conspired to file bogus federal tax returns in order to fraudulently obtain tax refunds.
Eaford was an inmate at the Essex County Correctional Facility from approximately May 20, 2013 through Feb. 12, 2014. As part of the scheme, Eaford, Moses, and others obtained social security numbers, dates of birth, and other information from inmates at the jail. Eaford and Moses would then generate false W-2 forms indicating that the inmates had earned income during the relevant tax year and that federal income tax had been withheld from their paychecks.
Afterwards, Eaford and Moses filed false federal income tax returns on behalf of the inmates and had the refund checks sent to the Essex County Correctional Facility or to Moses’s East Orange residence. The proceeds of the fraud were split among Eaford, Moses, and the relevant inmates. Eaford and Moses admitted that they filed 112 phony tax returns that sought approximately $670,206 in fraudulent refunds.
In addition to the prison term, Judge Walls sentenced Eaford to three years of supervised release and ordered him to pay restitution of $200,045.
Moses also previously pleaded guilty to his role in the scheme and was sentenced April 12, 2017 to 26 months in prison.
Acting U.S. Attorney Fitzpatrick credited special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, postal inspectors from the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, and the Internal Affairs Division of Essex County Jail, under the leadership of Warden Roy Hendricks, with the investigation.
The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Assistant Federal Public Defender Lisa Mack Esq., Newark, New Jersey
Des Moines Woman Sentenced to 16 Months in Prison for Nigerian Email SchemeRead the Press Release
DES MOINES, IA – On June 20, 2017, Victoria Lovan, age 67, of Des Moines, Iowa, appeared before Chief United States District Court Judge John A. Jarvey and was sentenced to 16 months in prison for charges related to a Nigerian email scam, announced United States Attorney Kevin E. VanderSchel. Lovan was sentenced to 16 months of imprisonment for three counts of wire fraud, and was ordered to pay restitution to the victims.
On January 25, 2017, Lovan pleaded guilty. Lovan admitted between November of 2012 and October of 2014, she communicated with individuals over the Internet who persuaded her to accept money wires from victims across the country, and send the money wires to Nigeria. These individuals contacted persons across the country and overseas, and told them false stories to induce them to send money. Lovan kept a portion of the funds she received before sending the remainder to her associates in Nigeria.
At least 89 victims sent Lovan money because of these fictional stories of hardship and promises of financial gain. Lovan continued to engage in fraudulent financial transactions despite being told by law enforcement to cease her activity. In 2016, Lovan deposited two fraudulent checks at two different credit unions, again at the direction of individuals located abroad.
The investigation was conducted by the Des Moines Police Department and the Federal Bureau of Investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Deputy Attorney General Recognizes Alaska EmployeesRead the Press Release
WASHINGTON – On Friday, June 16, 2017, 179 members of the Department of Justice, including a team from Alaska, were recognized by Deputy Attorney General Rod Rosenstein, and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 33rd Director’s Awards Ceremony in Washington D.C. The Alaskans were recognized for “Superior Performance as a Litigative Team” in the prosecution of Mark Avery in 2016. The team included Steven Skrocki, Bryan Schroder, Chloe Martin, Monica Valenzuela, and Kathryn Richards of the U.S. Attorney’s Office; Kirk Oberlander and Holly Steeves of the Federal Bureau of Investigation; and Patrick Matthew of the Internal Revenue Service-Criminal Investigations.
The District of Alaska was one of 35 districts represented at the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In his prepared remarks, Deputy Attorney General Rosenstein told the awardees: “These 179 award recipients embody the best of the Department of Justice.… Today’s honorees have earned the esteem of their colleagues. But most importantly, you have earned the gratitude of your fellow citizens — whose communities you have made safer, whose lives you have improved, and whose trust you have rewarded.”
The litigation team of agents, prosecutors and support staff from the District of Alaska was recognized for their exceptional work in the prosecution of Mark Avery for a $52 million wire fraud and money laundering scheme, the largest fraud by dollar amount in Alaskan history. Avery defrauded a private trust set up to take care of an elderly woman who, at the time, was suffering advanced dementia. Avery was convicted at trial in February 2016, and was sentenced to serve over 13 years in prison and pay over $45 million dollars in restitution.
Acting U.S. Attorney Bryan Schroder recognized that: “The most effective way of protecting the people of Alaska is for law enforcement agencies to work together. Federal law enforcement agencies, along with our state and local partners, work together every day to help make our state a safer place. I am proud that the Department of Justice has recognized the outstanding team effort in U.S. v. Avery.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Defendants Arrested for Methamphetamine TraffickingRead the Press Release
Abingdon, VIRGINIA – Acting United States Attorney Rick A. Mountcastle announced today that Operation Rolling Thunder, a joint investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, has resulted in twenty-four arrest warrants being issued for individuals charged with conspiring to distribute methamphetamine in Southwest Virginia, and North Carolina. In addition to the arrest warrants being issued, law enforcement agents executed one search warrant today in furtherance of the investigation. The following individuals were arrested today and charged:
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Rodriguez, Sanson P.
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Hoyt, Amy
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Nester, Grandy
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Bilyeu, Amber “Rose”
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Hawks, Karen
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Sexton, Walter “Butch”
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Sellers, Larry
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Cochran, Brittany
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Bowman, Timothy
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Freeman, Annette
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Hunley, Brad
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Phipps, Shawanna
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Graff, Brian
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Alley, Riley
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Maxwell, Calvin Jermaine
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Norman, David
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Long, Lelana
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Choate, Jonathan
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Humphries, Kevin
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Parsons, Jackie Christopher
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Jones, Jessalyn
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Grose, Vicky
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Sawyers, Stacey Jerome
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Anders, Travis Brian
The investigation of the case was conducted by the Grayson County Sheriff’s Office, Carroll County Sheriff’s Office, Surry County Sheriff’s Office, Virginia State Police, North Carolina State Bureau of Investigation, Galax Police Department, Bureau of Alcohol, Tobacco, Firearms, and Explosives, United States Marshals Service, United States Secret Service and the Lexington, N.C. Police Department. Assistant United States Attorney Zachary T. Lee will prosecute the case for the United States.
An arrest warrant is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
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Daly City Resident Pleads Guilty in Tax Fraud SchemeRead the Press Release
OAKLAND – Everardo Laurian pleaded guilty to theft of government money announced United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf.
Laurian, 26, of Daly City, pleaded guilty to theft of government money. The Honorable Jeffery S. White, United States District Judge, accepted the plea today.
According to his plea agreement, between March and April 2015, Laurian participated in a conspiracy to illegally obtain money from the United States. The conspiracy involved filing false federal income tax returns in order to obtain fraudulent federal income tax refunds and cashing stolen U.S. Treasury checks at Walmart stores throughout the United States. Laurian became a member of the conspiracy knowing that the objective was to steal money from the federal government.
In 2015, codefendants Gary Bostick, 39, and Ana Bostick, 37, both of Pittsburg, Calif., asked Laurian to participate in a scheme to cash stolen or fraudulently obtained U.S. Treasury Checks. In March and April 2015, Laurian aided the Bosticks, co-conspirator Hugh Robinson, 46, of San Pablo, Calif., and others to cash fraudulently obtained or stolen U.S. Treasury checks. Laurian’s role was to drive individuals to Walmart stores and cashed the stolen or fraudulently obtained U.S. Treasury checks. In addition, after the checks were cashed, Laurian delivered the proceeds to Gary Bostick and Ana Bostick. In sum, Laurian conspired with others to cash a total of $88,826.41 in stolen U.S. Treasury checks as part of this joint undertaking.
On November 5, 2015, a federal grand jury indicted Laurian and ten co-conspirators for various crimes in connection with the scheme. For his part in the scheme, Laurian was charged with conspiracy to defraud the United States, in violation of 18 U.S.C. § 371; two counts of theft of public money, in violation of 18 U.S.C. § 641; and two counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A. He pleaded guilty to two counts of theft of public money.
On October 31, 2017, a jury found Hugh Robinson guilty of conspiracy to commit theft of public money, in violation of 18 U.S.C. § 371; seven counts of theft of public money, in violation of 18 U.S.C. § 641; and seven counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A, in connection with the scheme. Judge White sentenced Robinson to 144 months in prison for his role in a conspiracy. Ana Bostick was charged with conspiracy to commit theft of public money, in violation of 18 U.S.C. § 371; two counts of theft of public money, in violation of 18 U.S.C. § 641; and two counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A. On June 15, 2017, she pleaded guilty to all charges. For his part in the scheme, Gary Bostick was charged with conspiracy to commit theft of public money, in violation of 18 U.S.C. § 371; four counts of wire fraud, in violation of 18 U.S.C. § 1343; and four counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A. On June 15, 2017, he pleaded guilty to the conspiracy charge and to the wire fraud charges.
Judge White scheduled Laurian’s sentencing for September 26, 2017. The maximum sentence for theft of public money is ten years in prison and a fine of $250,000. 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.
Gary Bostick’s sentencing is scheduled for September 19, 2017, and Ana Bostick’s sentencing is scheduled for November 14, 2017.
Assistant U.S. Attorneys Thomas Newman and Jose A. Olivera and Trial Attorney Gregory Bernstein and Paralegal Jonathan Deville of the Tax Division are prosecuting this case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Coeur d’Alene Doctor to Serve Prison Sentence for Submitting False Tax ReturnsRead the Press Release
COUER D’ALENE – U.S. Chief District Judge B. Lynn Winmill sentenced Dr. Stanley Toelle to one month in federal prison to be followed by one year supervised release for submitting false income tax returns in 2012 and 2013, Acting U.S. Attorney Rafael Gonzalez announced. Pursuant to a plea agreement, Toelle admitted that his and his wife’s joint tax returns were false because they did not report that his wife, Loren Toelle, was conducting business activities. Toelle admitted that Loren Toelle generated income of $52,692.00 in 2012 and $111,396.00 in 2013, none of which was reported. As a result, Judge Winmill also ordered Toelle to pay $47,597.31 in restitution for back taxes on this revenue. Judge Winmill also ordered Toelle to pay a $5,000 fine.
Loren Toelle, now divorced from Toelle, pleaded guilty to conspiracy to distribute controlled substances and conspiracy to launder money. She was sentenced to 212 months in prison. Loren Toelle admitted to being the organizer and leader of her drug trafficking and money laundering organization, which involved her children and friends. This group sold oxycodone, heroin and methamphetamine in Idaho, Washington, Montana and North Dakota. The organization sold an average of about $1 million of illegal narcotics per year from 2012 through 2014.
Toelle maintains that he did not know about Loren Toelle’s drug organization and that it was the source of her income. In a separate civil action, he agreed to forfeit $150,000 to resolve forfeiture claims on two homes and other assets that constituted proceeds of Loren Toelle’s drug trafficking organization.
The case is a result of a joint investigation and cooperative law enforcement efforts of the Organized Crime and Drug Enforcement Task Force (OCDETF), including the FBI North Idaho Violent Crime Task Force which consist of the Coeur d’Alene Police Department, the Kootenai County Sheriff’s Office, Post Falls Police Department, Kootenai county Sheriff’s Department, Drug Enforcement Administration (DEA), Internal Revenue Service-Criminal Investigation (IRS-CI), U.S. Marshal Service and Department of Homeland Security. Other agencies involved include the Williston, North Dakota Police Department, the United States Attorney’s Offices in Las Vegas, Nevada and North Dakota, the FBI in North Dakota, Williams County Sheriff’s Office, U.S. Border Patrol, Williston Police Department, North Dakota Bureau of Criminal Investigation, Northwest Narcotics Task Force, the Washington State Patrol, the U.S. Marshal Service in Las Vegas, IRS-CI in Las Vegas, and the DEA in Las Vegas and the United States Attorney’s Office in Idaho.
The indictments are the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi agency, multi- jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Chief Digital Officer of Premium Cable Network Pleads Guilty in Manhattan Federal Court to Defrauding His Employer of More Than $7 MillionRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, today announced that EMIL RENSING pled guilty in connection with his scheme to defraud his employer, a premium cable network (the “Network”), of more than $7 million through false statements about purported services to be provided to the Network by companies RENSING owned and controlled that were, in large part, never performed. RENSING pled guilty earlier today before United States Magistrate Judge James L. Cott in Manhattan federal court.
Acting U.S. Attorney Joon H. Kim said: “Emil Rensing, an executive at a premium cable network, defrauded his employer out of more than $7 million by causing the network to pay companies Rensing controlled for services that were never rendered. To conceal his role in the payments, Rensing used false and stolen identities and dummy email accounts. I want to thank the FBI for their work to hold Rensing accountable for his crimes.”
According to the allegations in the Indictment to which RENSING pled guilty, a criminal Complaint filed against RENSING, and statements made during the plea and other court proceeding proceedings:
EMIL RENSING defrauded the Network of more than $7 million over the course of his five-year employment with the Network. Through his position as Chief Digital Officer of the Network, RENSING caused the Network to contract with vendor companies owned and controlled by RENSING to perform digital media services for the Network and to perform those services through vendor personnel identified in the contracts. In truth and in fact, however, the promised services were, in large part, never performed, and the vendor personnel designated in the contracts to perform the services – which included several of RENSING’s former professional associates and business partners – had never heard of the vendors or performed services for the Network. These individuals were further unaware that their names were being used by RENSING in this manner.
RENSING concealed his fraudulent scheme by, among other things, using false and stolen identities to hide his own involvement in the scheme. As to one of the vendors used to perpetrate the scheme (“Vendor-1”), RENSING provided the Network with a false name and email address as the “contact” to be used by the Network to communicate with Vendor-1. As to a second vendor, (“Vendor-2”), provided the Network with the name of a personal acquaintance as a “project manager” and “contact” for Vendor-2 when, in truth and in fact, this acquaintance had nothing to do with Vendor-2. Unbeknownst to this personal acquaintance, also established an email account in that acquaintance’s name that RENSING, posing as the acquaintance, used regularly to communicate with the Network about the vendor’s billing and other administrative matters.
After the Network learned of RENSING’s fraudulent scheme, RENSING was interviewed by attorneys for the Network. During this interview, which was recorded at the request of RENSING and his counsel, RENSING made multiple false statements to further conceal his fraudulent scheme.
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RENSING, 43, of Manhattan, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison and three years of supervised release. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the FBI.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Elisha Kobre is in charge of the prosecution.
California Man Admits Scheme to Steal 94,000 Debit and Credit Cards from Michaels’ Stores in 19 StatesRead the Press Release
CAMDEN, N.J. – A Riverside, California, man today admitted his role in a conspiracy to steal 94,000 credit and debit cards from customers at approximately 80 Michaels’ Stores and use that information to make fraudulent withdrawals from the customers’ bank accounts, Acting U.S. Attorney William E. Fitzpatrick announced.
Angel Angulo, 27, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to Count One and Count Two of an indictment charging him with conspiracy to commit bank fraud and aggravated identity theft.
According to documents filed in this case and statements made in court:
The conspirators installed devices that acquired customers’ bank account and personal identification number (PIN) information on point of sale (POS) terminals at stores operated by Michaels. The stolen account information was used to produce counterfeit bank cards, which were used with the stolen PINs to withdraw funds from the compromised bank accounts.
The conspirators allegedly replaced 88 POS terminals in 80 different stores operated by Michaels across 19 states, including New Jersey, with counterfeit POS devices. Each counterfeit device was equipped with wireless technology, which the conspirators used to retrieve the stolen information. From February 2011 to April 2011, conspirators stole approximately 94,000 debit and credit card account numbers.
From April 2011 to May 2011, Angulo, Crystal Banuelos, and others obtained counterfeit cards with the corresponding PIN numbers written on them from other conspirators. They used the cards and PIN numbers to withdraw money using ATMs from hundreds of bank accounts. On May 14, 2011, Angulo and Banuelos possessed 179 counterfeit cards in New Jersey.
The charge of conspiracy to commit bank fraud carries a maximum potential penalty of 30 years in prison and a $1 million fine. The charge of aggravated identity theft carries a mandatory penalty of two years in prison, to be served consecutively to any other sentence. Angulo’s sentencing is scheduled for Sept. 25, 2017.
Banuelos previously pleaded guilty to her role in the scheme and awaits sentencing.
Acting U.S. Attorney Fitzpatrick credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the U.S. Attorney’s Office Economic Crimes Unit.
Defense counsel: Lisa Lewis, Esq., Federal Public Defender
Brooklyn Man Sentenced to More Than 20 Years in Prison for Murder Committed in Broad Daylight in January 2016Read the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Ashan M. Benedict, the Special Agent in Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and James P. O’Neill, Commissioner of the Police Department for the City of New York (“NYPD”), announced that RAYSHAWN DEMOSTHENE, a/k/a “Smooth,” was sentenced today in Manhattan federal court to a prison term of 244 months for the murder of Michael Morris in Brooklyn, New York, on January 11, 2016. DEMOSTHENE pled guilty before U.S. Magistrate Judge Barbara C. Moses on December 29, 2016, to murdering Morris. DEMOSTHENE was sentenced today by U.S. District Judge P. Kevin Castel.
Acting Manhattan U.S. Attorney Joon H. Kim stated: “In broad daylight, on a residential street in Brooklyn, Rayshawn Demosthene executed Michael Morris. Demosthene’s cold-blooded murder and utter disregard for a fellow human life was driven by greed, a desire to steal drug money. Thanks to the hard work and dedication of the SPARTA Joint Robbery Task Force of the NYPD and the ATF, Demosthene has been brought to justice and will serve a lengthy sentence for his crime.”
ATF Special Agent-in-Charge Ashan M. Benedict stated: “The defendant and his co-conspirators committed a cold-blooded, ambush murder of the victim in order to steal money the victim intended to use to purchase narcotics. In the process, they turned the streets into a shooting gallery, endangering the lives of any number of innocent bystanders. This investigation highlights the ever-present danger of violence that goes along with the narcotics trade, and how invariably that violence plays out on the streets. I would like to extend my gratitude to the ATF Special Agents and NYPD Detectives assigned to the ATF SPARTA Joint Robbery Task Force, and the U.S. Attorney’s Office for their outstanding work in ensuring that this killer faced the justice he so overwhelmingly deserved.”
NYPD Commissioner James P. O’Neill stated: “The individual involved in this case not only participated in the illegal drug trade but compounded his actions by engaging in the wanton murder of another human being for nothing more than his own greed. Murder, no matter what the circumstances, can never be tolerated in a civilized society.”
According to the Indictment and other documents filed in the case, as well as statements made during the plea and sentencing proceedings:
On the morning of January 11, 2016, RAYSHAWN DEMOSTHENE walked along a residential street in Brooklyn toward the car in which Michael Morris was sitting and opened fire. Morris, who was a resident of Virginia, had traveled to Brooklyn that day in the belief that he would purchase drugs in exchange for approximately $30,000 in cash. But the supposed drug transaction was a ruse. Unbeknownst to Morris, DEMOSTHENE and his co-conspirators had agreed beforehand to murder Morris and take his money. After Morris arrived in Brooklyn, DEMOSTHENE carried out the homicide by shooting Morris in the head and killing him.
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In addition to his prison term, DEMOSTHENE, 24, of Brooklyn, New York, was also sentenced to five years of supervised release.
Mr. Kim praised the investigative work of the NYPD and the ATF, and in particular the Strategic Patterned Armed Robbery Technical Apprehension (“SPARTA”) Task Force, which is composed of agents and officers of the ATF and the NYPD.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Scott A. Hartman and David Zhou are in charge of the prosecution.
Billerica Man Sentenced for Child Pornography OffensesRead the Press Release
BOSTON – A Billerica man was sentenced yesterday in federal court in Boston for possessing and distributing child pornography.
Brian Ashley, 38, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to six years in prison and six years of supervised release. He was also ordered to pay restitution in the amount of $15,000 to two of the victims identified in his child pornography collection. Ashley will also be required to register as a sex offender upon release from prison. In March 2017, Ashley pleaded guilty to one count of distribution and one count of possession of child pornography.
In February 2016, federal agents in Montana assumed the identity of an individual who was using an instant messaging app to send and receive child pornography to other users. As part of the investigation, agents identified Brian Ashley as one of the individuals using the app to trade child pornography. Ashley, using a screenname that hid his identity, distributed several images and videos of child pornography to the undercover agents, who subsequently traced his illicit online activity to his home and work addresses in Massachusetts. Agents executed a search warrant at Ashley’s Billerica home, where they seized his cell phone. A forensic review of the cell phone revealed hundreds of images and videos of child pornography and evidence that he had exchanged the material with other users of the instant messaging app.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorneys Jordi de Llano and Anne Paruti of Weinreb’s Criminal Division prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Bergen County Doctor Sentenced to 41 Months in Prison for Taking Bribes in Test-Referral SchemeRead the Press Release
NEWARK, N.J. – A family doctor practicing in Bergen County, New Jersey, was sentenced today to 41 months in prison for accepting bribes in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, Acting U.S. Attorney William E. Fitzpatrick announced.
Bernard Greenspan, 79, of River Edge, New Jersey, was convicted March 6, 2017, of one count of conspiring to commit violations of the Anti-Kickback Statute, the Federal Travel Act and wire fraud; three substantive violations of the Anti-Kickback Statute; three substantive violations of the Federal Travel Act; and three substantive violations of wire fraud. Greenspan was convicted following a 11-day trial before U.S. District Judge William H. Walls, who imposed the sentence today in Newark federal court.
“The defendant in this case abused his position of trust by taking bribes in return for referring his patients to BLS,” Acting U.S. Attorney Fitzpatrick said. “People need to trust that their doctors are making medical decisions based on what is in their best interest and not based on who will pay them a bribe.”
“Patients have every right to insist that their physician is making medical referrals based on what is best for the patient—not what’s best for the doctor’s bank account,” said Special Agent in Charge Timothy Gallagher of the Newark FBI Field Office. “Bernard Greenspan decided to accept bribes in exchange for referrals and deprived patients of their right to honest services. These types of kickback arrangements cripple the healthcare industry and severely impact patient care. The FBI remains committed to investing its resources to combat these types of schemes.”
According to the indictment and testimony at trial, between March 2006 and April 2013, Greenspan received bribes totaling approximately $200,000 from BLS employees and associates. Greenspan periodically solicited and received monthly bribe payments in the form of sham rental, service agreement, and consultant payments.
In addition, Greenspan solicited and received other bribes, including payment for holiday parties for Greenspan and his office staff and additional cash bribes for ordering specific blood tests. In addition, BLS hired – at Greenspan’s specific request –a patient of Greenspan’s with whom he was having a sexual relationship. Greenspan’s referrals generated approximately $3 million in lab business for BLS.
The investigation has thus far resulted in 44 convictions – 30 of them of doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.
“Dr. Greenspan violated the Hippocratic Oath taken by medical professionals when he pledged to ‘come for the benefit of the sick, remaining free of all intentional injustice,” Inspector in Charge James V. Buthorn of U.S. Postal Inspection Service, Newark Division, said. “The culture of kickbacks and bribery have no place in our healthcare system, and the U.S. Postal Inspection Service was proud to do our part, working with our law enforcement partners to ensure justice was served today.”
The investigation has recovered more than $13 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.
In addition to the prison term, Judge Walls sentenced Greenspan to one year of supervised release, fined him $125,000 and ordered forfeiture of $203,693.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Gallagher; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Buthorn; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert with the ongoing investigation.
The government was represented at trial by Assistant U.S. Attorneys Joseph N. Minish and Danielle Alfonzo Walsman of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
The U.S. Attorney’s Office, District of New Jersey, reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.34 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Damian Conforti Esq. and Eric Kanefsky Esq., Newark, NJ
Belleville Man Sentenced for Cocaine and Heroin DistributionRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Tyrone D. Heard, 41, of Belleville, Illinois was sentenced to 151 months of imprisonment on June 19, 2017 for possession with intent to distribute cocaine and heroin.
At his change of plea hearing on January 31, 2017, Heard admitted that he had possessed cocaine and heroin at an O’Fallon, Illinois motel on February 28, 2016, and that he intended to sell 16 grams of black tar heroin and 55 grams of cocaine.
The investigation which resulted in Heard’s arrest and sentence was conducted by the O’Fallon Illinois Police Department. The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Bank Executive Pleads Guilty to FraudRead the Press Release
Assistant U. S. Attorney Andrew P. Young (619) 546-7981
NEWS RELEASE SUMMARY – June 20, 2017
SAN DIEGO – A former executive at Vibra Bank pleaded guilty to causing the filing of false bank reports today, admitting that he caused Vibra Bank to create false anti-money laundering reports as part of an effort to conceal his role in a scheme to structure $70,000 in cash deposits into numerous bank accounts at the bank.
According to a plea agreement, in June 2010, Dan Schon was a Senior Vice President at Vibra Bank. According to the plea agreement, on June 9 and June 10, 2010, Schon and another individual structured approximately $70,000 in cash deposits into various bank accounts at the bank. As part of the plea agreement, the defendant acknowledged that after he participated in the structuring scheme, he was approached by Vibra Bank personnel who had discovered the transactions and were investigating the transactions as part of an Anti-Money Laundering program. During his interview, Schon made at least five false statements to the Vibra Bank employees who then incorporated those false statements into an Anti-Money Laundering report.
Among the false statements made by Schon was a claim that all of the money he deposited was his, that the money he wired to another individual was intended as an investment related to oil and gas, and that he had no knowledge of any of the other structured deposits.
“Today’s guilty plea shows Homeland Security Investigation’s commitment to disrupt financial crimes at the highest levels,” said Dave Shaw, special agent in charge for HSI San Diego. “HSI special agents are highly trained to detect violations of the anti-money-laundering rules at all levels in U.S. financial systems.”
Schon is scheduled to be sentenced on August 21, 2017 at 9 a.m. before U.S. District Judge Michael M. Anello.
DEFENDANT Case Number
Dan Schon Age: 35 Residence: Mexico City
SUMMARY OF CHARGES
Making a False Statement to a Bank, 18 U.S.C. 1005
Maximum Penalties: 30 years in prison and $1 million fine.
INVESTIGATING AGENCY
Department of Homeland Security