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Wednesday 10 May 2017
Dover Man Fined for Illegally Possessing Protected BirdsRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley today announced that Jeremiah S. Loui, 31, of Dover, New Hampshire was fined $1000 for the illegal possession of birds of prey protected by the Migratory Bird Treaty Act (MBTA) and other federal laws.
According to court documents and statements made during prior proceedings in the case, Loui bought and resold a taxidermied Accipiter gentilis, commonly known as a Northern Goshawk, on the Internet. He also sold or possessed 14 other taxidermied birds of prey protected under either the MBTA or a similar wildlife statute, the Wild Bird Conservation Act. Finally, Loui made false statements to a law enforcement officer investigating his offenses.
Birds of prey, including the Northern Goshawk, play an important role in ecosystems here in the United States and across the globe. “The U.S. Attorney’s Office is committed to working with our law enforcement partners to combat illegal conduct that promotes the taking of -- or trafficking in -- protected wildlife.” said Acting U.S. Attorney Farley.
Loui previously pleaded guilty to violating the MBTA. As part of a plea agreement, Loui agreed to forfeit any interest he has in any of the fifteen protected birds.
This matter was investigated by the U.S. Fish and Wildlife Service with valuable support from the U.S. Postal Inspection Service. Assistant United States Attorney Bill Morse prosecuted the case.
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Dominican National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for illegally reentering the United States after deportation.
Luis Moreno-Tejeda, 39, a Dominican national residing in Boston, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 24 months in prison, to be served consecutively with a sentence imposed by the Suffolk Superior Court in September 2016, and three years of supervised release. He will be subject to deportation upon completion of his sentence.
In 2002, Moreno-Tejeda was convicted of bribery, and determined to be unlawfully present in the United States. Upon completion of his 12-month sentence, he was deported. In 2005, Moreno-Tejeda, using the alias Ricardo Rodriguez, was convicted of cocaine distribution in Suffolk Superior Court. Moreno-Tejeda received a sentence of 48-60 months in prison, but due to altered fingerprints, law enforcement was unable to determine his legal identity at the time, which would have revealed his prior conviction and immigration status.
In September 2016, Moreno-Tejeda was convicted of heroin distribution in Suffolk Superior Court and sentenced to 30 months in prison, which will be served consecutively with his federal prison sentence.
Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Criminal Division prosecuted the case.
District Man Sentenced to 47 Months in Prison for Federal Gun ChargeRead the Press Release
WASHINGTON - Antoine Miller, 35, of Washington, D.C., was sentenced today to 47 months in prison for a federal weapons offense following his arrest last year by a gun recovery team from the Metropolitan Police Department (MPD), announced U.S. Attorney Channing D. Phillips and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Miller was found guilty on February 2, 2017, in the U.S. District Court for the District of Columbia of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. The verdict followed a bench trial before the Honorable Ketanji Brown Jackson. In an earlier case, Miller was sentenced in 2004 to a prison term of 11 years and eight months, to be followed by three years of supervised release, following his conviction of drug and weapons offenses.
Following his prison term in the current case, Miller will be placed on two years of supervised release. In a separate proceeding, he also faces revocation of his probation in the earlier case.
According to the government’s evidence, on March 31, 2016, at approximately 9:50 pm, members of the MPD Narcotics and Special Investigation Division – Gun Recovery Unit were driving and operating a gray Ford Explorer. While the officers traveled northbound in the 4600 block of Livingston Road SE, they observed Miller walking with another person southbound on the sidewalk. The officers slowed the vehicle, greeted the two males, identified themselves as police, and asked if they had any guns on them. Miller immediately stated “no,” and turned around so that his back was facing the officers. He then lifted the back of his puffy vest jacket, deliberately not showing the officers the front of his waistband.
As Miller did this, the other male continued to walk, keeping his head down, and at this time walking faster and ahead of the defendant. Seeing these actions from both individuals, the officers exited their vehicle to talk to the two men. One officer approached Miller and again calmly asked the defendant, “Hey, man can I talk to you?”, whereupon Miller stopped walking and turned and faced the officer. Subsequently, he turned and faced the officer and stated, “I told you I have! I been telling you I have one! You can have it! Just take it! Just take it! You can have it!” Moreover, a passing pedestrian called out, “You good slim?,” at which time the defendant replied, “They got me with a gun and all that.” The firearm was identified as a Smith and Wesson .40 caliber loaded with 9 rounds of ammunition.
In announcing the sentence, U.S. Attorney Phillips and Chief Newsham commended the actions of those who worked on the case from the Metropolitan Police Department. They also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Jeannette Litz and Teesha Tobias. Finally, they expressed appreciation for the efforts of Assistant U.S. Attorneys Veronica Jennings and Emory V. Cole, who investigated and prosecuted the case.
Developer Pleads Guilty to Bank Fraud in Connection with Carbondale Apartment ComplexRead the Press Release
Yesterday afternoon, Christopher E. Creek, 56, of Champaign, IL, pled guilty to a charge of bank fraud in federal court in Benton, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. The charge arose from Creek’s participation as a developer for the construction of an apartment complex in Carbondale, IL, known as the Pointe at SIU.
In pleading guilty yesterday, Creek admitted that he submitted fraudulent requests for draws of construction loan funds to the banks that financed the project. Specifically, Creek admitted that he submitted documents to the banks that falsely stated that the framing for the project had been provided by a company called "Southern Framing," and that the foundation work had been done by a company called "Solid as a Rock." Both Southern Framing and Solid as a Rock were fictitious entities that Creek created. Creek deposited the checks that were payable to Southern Framing and Solid as a Rock into bank accounts that he controlled. He then used those funds for his own purposes, including paying subcontractors and materials suppliers from prior jobs to whom he still owed money.
Creek’s sentencing hearing is scheduled for August 9, 2017, at 10:00 a.m., at the federal courthouse in Benton, Illinois. The crime of bank fraud is punishable by up to 30 years of imprisonment, a fine of up to $1,000,000, not more than five years of supervised release, and
restitution.
The investigation was conducted by agents from the Springfield Division, Marion, Illinois, Resident Agency, of the Federal Bureau of Investigation ("FBI"). The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Convicted Felon Charged for Dealing Firearms and Heroin from La Jolla HomeRead the Press Release
Assistant U. S. Attorney Matthew Sutton (619) 546-8941
NEWS RELEASE SUMMARY – May 10, 2017
SAN DIEGO – Convicted felon Paul Joseph Holdy was arrested this morning and charged with multiple federal drug- and gun-related offenses after a long-term investigation revealed that he was allegedly trafficking heroin and firearms from his La Jolla residence.
As alleged in the complaint and search warrants unsealed today, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation began the investigation in the summer of 2016. Undercover agents conducted multiple controlled purchases of firearms and narcotics from Holdy, some of which Holdy manufactured himself from unfinished lower receivers. In total, law enforcement purchased 19 firearms, including short-barrel machine guns, assault rifles, and handguns, along with multiple silencers from Holdy.
Due to his prior felony conviction for possession of a controlled substance for sale, Holdy is prohibited from possessing a firearm or ammunition under federal law. ATF records showed that Holdy lacked a Federal Firearms License, which would allow him to engage in the business of importing, manufacturing, or dealing in firearms.
During the arrest today, investigators executed three search warrants and seized one additional machine gun and two gallons of suspected GHB. Holdy is scheduled to be arraigned before U.S. Magistrate Judge David H. Bartick at 10:30 a.m. tomorrow.
“Illegally manufacturing and brokering the sale of guns and drugs on the streets of San Diego poses a tremendous danger to our community,” said Acting U.S. Attorney Alana W. Robinson. “Prosecuting firearms offenses is a top priority for the U.S. Attorney’s Office, and we will continue our efforts to disrupt the availability of illegal guns in our city.”
“Firearms traffickers are responsible for the crimes committed with the guns they provide to felons and gang members,” said ATF Los Angeles Field Division Special Agent in Charge Eric Harden. “Felons cannot skirt the system by manufacturing and selling untraceable firearms from unfinished lower receivers. ATF will use its resources to strategically target and identify these criminals and interrupt the illegal flow of firearms to those who are prohibited from possessing firearms under the law.”
“Illegal firearms and narcotics trafficking cannot be tolerated on our streets,” said FBI Special Agent in Charge Eric S. Birnbaum. “The FBI will continue to identify, disrupt and dismantle these traffickers in order to keep our communities safe.”
This case is also the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANT Criminal Case No: 17MJ1397-DHB
Name
Age
Hometown
Paul Joseph Holdy
39
La Jolla, CA
SUMMARY OF CHARGES
Distribution of Heroin, in violation of Title 21, U.S.C., Sec. 841(a)(1)
Felon in Possession of a Firearm, in violation of Title 18, U.S.C., Sec. 922(g)(1)
Dealing in Firearms Without a License, in violation of Title 18, U.S.C. Secs. 922(a)(1)(A), 923(a), 924(a)(1)(D)
Maximum Penalties:
For drug charges: Twenty years in prison and a $1 million fine.
For firearms charges: Ten years in prison and a $250,000 fine.
AGENCIES
Bureau of Alcohol, Tobacco, Firearms and Explosives
Federal Bureau of Investigation
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Colombian National Sentenced to Prison for Aggravated Identity TheftRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced Guillermo Pardo (53) to two years and one day in federal prison for aggravated identity theft and passport fraud. He pleaded guilty on February 15, 2017.
According to court documents, on January 22, 2015, Pardo made a false statement in an application for a passport. Specifically, he claimed to be a United States citizen and used information belonging to a real United States citizen to do so. In reality, Pardo was a citizen and national of Colombia (South America) and was ordered to be deported from the United States in 1986, after a felony drug conviction.
This case was investigated by the U.S. Department of State - Diplomatic Security Service and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Emily C.L. Chang and Special Assistant United States Attorney Christina R. Downes.
Citizen of Togo Sentenced for Passport FraudRead the Press Release
ALBANY, NEW YORK –Koffi Roudolphe Sewoul, age 40, and a citizen of Togo, was sentenced today to time served (7 months in jail) for misusing a United States passport in an attempt to enter the United States.
The announcement was made by United States Attorney Richard S. Hartunian and Steve Bronson, Acting Port Director, United States Customs and Border Protection.
On October 15, 2016, Sewoul attempted to enter the United States at the Champlain Port of Entry using his brother’s United States passport. Upon questioning, Sewoul admitted the passport belonged to his brother. An examination of airline itineraries showed Sewoul successfully used the passport to travel from Lome, Togo, to Accra, Ghana, on October 12, 2016, and then from Ghana to Brussels, Belgium, to Montreal, Quebec, on October 13.
Following his sentencing, Sewoul was transferred to the custody of the Department of Homeland Security, which will place Sewoul into removal proceedings.
This case was investigated by United States Customs and Border Protection and prosecuted by Assistant U.S. Attorney Douglas Collyer.
Chicago Scrap Iron Refining Company and Its President Plead Guilty to Criminal Tax Violations for Concealing $11.6 Million from IRSRead the Press Release
CHICAGO — A Chicago-based scrap iron refining business and its president admitted in federal court today that they concealed from the Internal Revenue Service more than $11.6 million in cash wages paid to employees.
ACME REFINING CO., which does business as Acme Refining Scrap Iron & Metal Co., and its president, LAURENCE C. BARON, each pleaded guilty to impairing and impeding the IRS. Acme and Baron admitted in plea agreements that from 2009 to 2013 they paid cash wages of more than $11.6 million to at least 50 employees, but failed to report the payments to the IRS. Acme and Baron also acknowledged that they willfully failed to withhold for the government the required amounts for FICA taxes and Medicare.
As part of their plea agreements, Baron and Acme agreed to pay restitution of $5,878,327 to the IRS and the state of Illinois, with Acme paying $4,545,243 and Baron paying $1,333,084.
The guilty pleas were announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; and Gabriel L. Grchan, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago.
Impairing and impeding the IRS is punishable by up to three years in prison. Baron, 70, of Burr Ridge, also pleaded guilty to a separate count of willfully filing a false individual income tax return, which carries the same maximum penalty. U.S. District Judge Harry D. Leinenweber set sentencing for Sept. 14, 2017.
The cases against Acme and Baron are part an ongoing federal investigation of cash transactions in the Chicago-area scrap metal industry that has resulted in several previous convictions.
According to the plea agreements, Baron directed Acme employees to issue multiple vouchers for cash payments due to suppliers that exceeded $10,000, using nominee or fictitious payees as the purported seller. Between 2009 and 2013 the company and Baron obtained approximately $152 million in cash from two currency exchanges, then used the money to pay 85 separate scrap metal suppliers in order to assist those suppliers in underreporting their income and taxes.
Acme – at the direction of Baron – also spent at least $1.6 million to fund construction of a personal residence in Wisconsin that had no business-related purpose, the plea agreements state. The company falsely recorded this expenditure as “cost of goods sold,” in order to reduce Acme’s tax liability and conceal the payment on behalf of its corporate officers. The bogus records included phony invoices that fraudulently identified the payments as purchases of scrap steel.
Baron also admitted filing false individual income tax returns for tax years 2011 and 2012. The fraudulent returns resulted in a total federal and state tax loss of approximately $208,875, the plea agreement states.
The government is represented by Assistant U.S. Attorney Patrick King.
Cheektowaga Man Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Jason Yelder, 35, of Cheektowaga, NY, pleaded guilty to conspiracy to possess with intent to distribute five grams or more of methamphetamine before U.S. District Judge Lawrence J. Vilardo. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that on March 20, 2016, Yelder was arrested for driving with a suspended license. The defendant’s vehicle was searched by Hamburg Police and more than 23 grams of methamphetamine, a digital scale, and large amounts of U.S. currency were seized. Yelder was advised of his rights, waived his rights, and admitted to police that he was going to sell the methamphetamine to another co-conspirator.
The plea is the result of an investigation by the Hamburg Police Department, under the direction of Chief Gregory Wickett; the Amherst Police Department, under the direction of Chief John Askey; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Sentencing is scheduled for August 14, 2017, at 10:00 a.m. before Judge Vilardo.
Central Ohio Group Charged with Running Identity Theft RingRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged five individuals in an identity theft ring that allegedly used victims’ information to obtain and use new and existing in-store lines of credit at well-known retailers in an indictment returned here yesterday.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Frank S. Turner II, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Columbus Police Chief Kim Jacobs, Jason Hayden, Acting Special Agent in Charge, United States Secret Service and other members of the Southern Ohio Financial Crimes Task Force announced the indictment.
Kwame E. McCauley, 35, of Canal Winchester, Ohio; Deangelo D. Simms, 26, of Reynoldsburg, Ohio; Shirley M. Dillen, 43, of Westerville, Ohio; Julie E. Ring, 38, of Columbus, Ohio and Robert S. Tingler, 32, of Columbus, Ohio were each charged with conspiracy to commit wire fraud. McCauley, the alleged leader of the ring, is also charged with 20 counts of wire fraud and two counts of aggravated identity theft. The other four co-defendants each face various charges of wire fraud and aggravated identity theft, as well.
The 24-count indictment alleges that from January 2014 until January 2016 the group bought store merchandise after fraudulently obtaining new and using existing credit from retail stores. McCauley allegedly obtained victims’ social security numbers and dates of birth. Afterwards, he ran their credit history reports from websites like creditkarma.com.
According to the indictment, McCauley provided false identification cards containing the victims’ information but actually bearing photographs of the co-defendants who were “shoppers.” The group would travel to various clothing and electronics retail stores in the Southern District of Ohio and elsewhere, including Indiana and Pennsylvania. Examples of the stores include Best Buy, Elder Beerman, Buckle, Menard’s, Meijer and Cabela’s.
The group would allegedly review the victims’ credit history reports and personal information prior to arrival at the retail stores so the defendants could answer any qualifying questions that the stores used to screen credit applicants. The group is alleged to have opened new and used existing lines of credit on approximately 80 separate occasions causing $150,000 of loss from the retailers.
Conspiracy to commit wire fraud and wire fraud are each crimes punishable by up to 20 years in prison in this case. Aggravated identity theft carries a mandatory term of imprisonment of two years for each count.
Defendants were arrested today by Task Force agents.
U.S. Attorney Glassman commended the investigation of this case by the IRS-CI, Columbus Police and other members of the Southern Ohio Financial Crimes Task Force, as well as Assistant United States Attorney Jonathan J.C. Grey, who is prosecuting the case.
An indictment merely contains allegations, and a defendant is presumed innocent unless proven guilty in a court of law.
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California Man Sentenced to Eight Years in Federal Prison for Drug TraffickingRead the Press Release
Fort Smith, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Gary Murl Beck, age 54, of Fallbrook, California, was sentenced today to 100 months in federal prison to run concurrent with any sentence in the state of California followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. The Honorable Chief Judge P. K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, on September 29, 2015, Eureka Springs Police Department arrested co-conspirator, Jeffrey Vanroy, in Eureka Springs for possession of methamphetamine. The suspected substance was sent to the Arkansas State Crime Lab where it was determined to be 52 grams of actual methamphetamine. Agents discovered during the investigation that the methamphetamine had originally been sent by FedEx to co-conspirator, Stephen Carufel, at his residence in Eureka Springs. Vanroy who was living with Carufel at the time took the package when it was delivered knowing it contained methamphetamine. Police were able to recover the FedEx packaging and found the sender listed as Gary Backe from Fallbrook, California; Gary Beck had used the name Gary Backe as an alias. California law enforcement identified the sender of the FedEx as Gary Murl Beck from Fallsbrook, California. They discovered 12 packages had been sent from Beck to Carufel between January 2015 to September 2015. Agents executed a search warrant on Beck’s residence on October 6, 2015 where they found over one pound of methamphetamine along with the receipt for one of the packages that Beck had shipped to Carufel. Agents retrieved messages between Beck and Carufel from Beck’s cell phone wherein they discussed what day and time the methamphetamine would arrive in Eureka Springs and how the payment for the methamphetamine was to be sent. A search warrant executed on Carufel’s residence produced MoneyGram receipts, cancelled personal checks, and wire transfers made out to Beck for the methamphetamine for the time period between April 2014 and October 2015. Beck was indicted by a federal grand jury on August 9, 2016 and pleaded guilty on October 25, 2016.
Co-conspirator Stephen Carufel pleaded guilty to Aiding and Abetting Money Laundering and Possession with Intent to Distribute Methamphetamine on June 7, 2016. He was sentenced to 78 months in federal prison on October 27, 2016.
Co-conspirator Jeffrey Vanroy pleaded guilty to Aiding and Abetting Possession with Intent to Distribute Methamphetamine on June 9, 2016 and was sentenced to 100 months in federal prison on November 9, 2016.
Homeland Security Investigations assisted the Eureka Springs Police Department in the investigation of this case. Assistant United States Attorney Candace Taylor prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Buffalo Man Sentenced in Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Elias Figueroa, 47, of Buffalo, NY, who was convicted of possession with intent to distribute more than 100 grams of heroin, was sentenced to 78 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that on February 26, 2014, law enforcement officers executed a search warrant at a residence on West Delavan Avenue. During the search, officers recovered more than 100 grams of heroin, drug packaging paraphernalia, and $4,000 in cash. Figueroa was arrested along with co-defendants Julio Sanchez and Tomas Figueroa. Two other defendants, Steven Martinez and Jeffrey Coleman, were also arrested that day. All five defendants have been convicted; Elias Figueroa is the third to be sentenced.
Charges against two other individuals, who were also arrested that day and are alleged to have been part of a heroin distribution conspiracy that was bringing heroin to Buffalo from New York City, remain pending.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Brooklyn Man Charged with Bank Fraud and Aggravated Identity TheftRead the Press Release
An Indictment[1] was unsealed today charging Bright Ogodo, 42, of Brooklyn, New York, with one counts of bank fraud and two counts of aggravated identity theft, announced Acting United States Attorney Louis D. Lappen.
The Indictment alleges that Ogodo recruited other persons, referred to as “runners,” to pose as TD Bank customers by using false drivers’ licenses supplied by Ogodo and means of identification of the TD Bank customers, including their names, social security numbers, and dates of birth. The Indictment alleges that Ogodo drove the runners to TD Bank branches in the Philadelphia area, as well as in New York, New Jersey, Connecticut, and Delaware, gave the runners the false drivers’ licenses and other means of identification, and instructed them how to access the TD Bank customers’ accounts. The Indictment alleges that the runners, and defendant Ogodo himself, deposited large-dollar counterfeit checks and small amounts of cash and money orders into the bank accounts, thereby learning the account numbers (if they were not already known) and also as a way of being able to know the exact date, location, and amount of the last deposit into the account, which co-schemers then used to set up on-line access to the accounts. The Indictment alleges that runners posing as the true account holders obtained new ATM cards tied to the TD Bank customers’ checking accounts, and then one or more co-schemers, including defendant Ogodo himself, began to deplete the funds in that checking account by using the newly-obtained ATM cards to withdraw cash and purchase merchandise and money orders. The Indictment alleges that one or more co-schemers often transferred funds from the TD Bank customers’ existing home equity lines of credit (HELOC) into the checking accounts that were tied to the ATM cards in the possession of defendant Ogodo and other co-schemers, which allowed defendant Ogodo and other co-schemers to obtain over $579,000 from the TD Bank accounts. The Indictment further alleges that defendant Ogodo and his co-schemers intended to cause TD Bank to sustain more than $785,000 in losses, as that is the amount of counterfeit checks and HELOC and other transfers made into the checking accounts tied to the ATM cards in the co-schemers’ possession.
Ogodo faces a maximum sentence of 34 years’ imprisonment, including a mandatory minimum two-year term of imprisonment, a five-year period of supervised release, a $1,500,000 fine, and a $300 special assessment and restitution of $597,107.
The case was investigated by the Bureau of Immigration and Customs Enforcement, Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
[1] An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty
Barling Man Sentenced to 15 Years in Federal Prison for Firearms ViolationRead the Press Release
Fort Smith, Arkansas – Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Jason Lee Pyles, age 44 of Barling, Arkansas, was sentenced today to 180 months in federal prison and three years of supervised release on one count of Knowingly Possessing a Firearm After a Felony Conviction. The Honorable Chief Judge P.K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, Jason Lee Pyles was convicted in Sebastian County Circuit Court in May 1995 of Possession of Methamphetamine with Intent to Deliver, a class Y felony. He was sentenced to 10 years in the Arkansas Department of Corrections, and because of that conviction, he is prohibited from possessing a firearm.
On or about April 25, 2016, Barling Police Department assisted Arkansas Probation and Parole in a compliance check at Pyle’s residence in Barling. He was not at home but his mother showed law enforcement the bedroom that he lived in. Officers searched the bedroom and found a .380 caliber pistol, a .22 caliber revolver, and a .38 caliber revolver in an unlocked rifle box.
Pyles was indicted by a federal grand jury in August 2016 and pleaded guilty in November 2016.
This is another case prosecuted as a part of the Department of Justice’s Project Safe Neighborhoods Initiative, which is aimed at reducing gun and gang violence, deterring illegal possession of firearms and improving the safety of residents in the Western District of Arkansas. Participants in the initiative include federal, state and local law enforcement agencies.
This case was investigated by Barling Police Department, Arkansas Probation and Parole and Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Candace Taylor prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Bank Officers and Bank Customer Charged with Wire Fraud and Making a False Loan ApplicationRead the Press Release
ROCKFORD — Two bank officers and a bank customer were charged Tuesday by a federal grand jury in Rockford with fraud and falsifying statements to the Small Business Administration, an agency of the United States.
RYAN COLE, 45, of Garland, Tex., JAMES GRABER, 57, of Rockton, Ill., and KRISTIN KING, 44, of South Beloit, Ill., were charged with wire fraud in connection with a loan application made to the SBA. Cole was also charged with two counts of making false statements to the SBA on a loan application. Graber and King were each charged with one count of making false statements to the SBA on a loan application.
As charged in the indictment, the SBA provides financial assistance to small businesses, in part, through loan guarantees to local banks. If the SBA approves a loan, it guarantees the lender that if the borrower defaults the SBA will repay part of the loan, thereby transferring the risk of borrower non-payment from the bank to the SBA, up to the amount of the guaranty. The local bank must disclose to the SBA whether the loan will reduce the exposure of the bank, disclose if the loan will be used to repay a debt already due to the bank, and disclose any relationships between the small business, its associates, and the lender.
According to the indictment, SunLee Development owned a commercial building at 4001 North Perryville Rd., in Loves Park, Ill. SunLee had three loans totaling more than $3 million at a local bank where Graber was employed as a Vice President and King was employed as a Vice President and Government Guaranteed Lending Specialist. Cole, a member of SunLee, was a guarantor of the three loans in the event of a default. SunLee was constantly behind on making its loan payments to the bank because tenants at 4001 North Perryville were not paying their rent.
The indictment alleges that Cole organized a group of the tenants at 4001 North Perryville to apply for an SBA guaranteed loan and to purchase the building from SunLee. The group of tenants and Cole became known as the Perryville Investment Group. The indictment alleges that on March 16, 2012, Cole, Graber and King submitted a $3,980,000 loan application to the SBA for the Perryville Investment Group that contained false statements and concealed material facts. Shortly after closing, the Perryville Investment Group had trouble making payments on the SBA loan and ultimately defaulted on the SBA loan.
Each count of wire fraud and making false statements and concealing material facts to the SBA carries a maximum penalty of up to 30 years in prison, a fine of up to $1 million, and restitution. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines. Graber and King are scheduled to appear for arraignment on May 12, 2017, at 2:00 p.m. in federal court in Rockford, before U.S. Magistrate Iain D. Johnston. Cole’s arraignment date has yet to be set.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed to be innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The indictment was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Lawrence Valett, Associate Inspector General of Investigations for the Federal Reserve Board - Office of Inspector General; and Talmadge Gaylor, Special Agent-in-Charge of the Central Regional Office of the SBA - Office of Inspector General.
The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
Augusta Woman Pleads Guilty to Stealing MailRead the Press Release
Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that Amanda K. Wentzell, 26, of Augusta, Maine, pleaded guilty today in U.S. District Court to stealing mail while being a U.S. Postal Service (USPS) employee.
According to court documents, in February 2016, the defendant began working as a retail clerk the post office in Temple, Maine. In July 2016, a Temple resident complained that his son had not received a prepaid debit card sent to him by U.S. mail. Investigation revealed that the defendant activated the debit card and used it to make two purchases totaling the $100 value of the debit card, she had been “rifling” mail, and between about April and August 2016, she took and opened several pieces of mail that were being processed by the post office. On August 9, 2016, the defendant resigned her USPS position.
Wentzell faces up to five years in prison and a $250,000 fine. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Franklin County Sheriff’s Office and the USPS, Office of Inspector General.
Albuquerque Man Charged in 13-Count Dog Fighting IndictmentRead the Press Release
ALBUQUERQUE – A federal grand jury in Albuquerque, N.M., returned an indictment yesterday afternoon charging Albuquerque resident Robert Arellano, 63, with 13 counts of violating the animal fighting prohibitions of the federal Animal Welfare Act, announced James D. Tierney, Acting U.S. Attorney for the District of New Mexico, and Jeffrey H. Wood, Acting Assistant Attorney General for the Department of Justice’s Environment and Natural Resources Division.
Arellano had previously been arrested and indicted on additional charges in the District of New Jersey pertaining to his alleged involvement in a multi-state dog fighting network. Those charges alleged criminal acts related to transporting, delivering, buying, selling, and receiving pit bull-type dogs for dog fighting ventures and conspiring to commit these acts in New Jersey and elsewhere throughout the United States.
The charges returned yesterday in the District of New Mexico pertain to fighting dogs allegedly kept by Arellano at his residence in Albuquerque. Those dogs were seized by federal authorities when Arellano was arrested last June.
This case is part of Operation Grand Champion, a coordinated effort across numerous federal judicial districts to combat organized dog fighting. The phrase “Grand Champion” is used by dog fighters to refer to a dog with more than five dog-fighting “victories.” To date, 85 dogs have been rescued as part of Operation Grand Champion, and either surrendered or forfeited to the government.
The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to knowingly sell, buy, possess, train, transport, deliver, or receive any animal, including dogs, for purposes of having the animal participate in an animal fighting venture. Under federal law, an animal fighting venture means “any event, in or affecting interstate or foreign commerce, that involves a fight conducted or to be conducted between at least two animals for purposes of sport, wagering, or entertainment.”
This part of Operation Grand Champion was investigated by the U.S. Department of Agriculture, Office of the Inspector General, under the direction of Special Agent in Charge Dax Roberson; and the FBI, under the direction of Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, in coordination with the Department of Justice.
The government is represented by Assistant U.S. Attorneys Letitia Simms and Paul Mysliwiec of the District of New Mexico, and Trial Attorney Ethan Eddy of the Justice Department’s Environmental Crimes Section, Environment and Natural Resources Division. The Humane Society of the United States assisted with the care of the dogs seized by federal law enforcement.
An indictment is an allegation based upon a finding of probable cause by a grand jury. A defendant is presumed innocent unless and until convicted.
If convicted, the defendant faces up to five years in prison and a $250,000 fine per count of animal fighting charges. The investigation is ongoing.
Arellano Indictment
Tuesday 9 May 2017
Wernersville Man Pleads Guilty to Bank Robberies in York, Lebanon, and Berks CountiesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Derek Pelker, age 27, of Wernersville, Pennsylvania, pled guilty on May 8, 2017, before United States District Judge John E. Jones, III, to three counts of armed bank robbery, use of a firearm in relation to a crime of violence, and possession of a firearm by a felon.
According to U.S. Attorney Bruce D. Brandler, Pelker pled guilty to charges related to the armed bank robberies of the BB&T Bank in East Prospect, Pennsylvania on April 24, 2015; the National Penn Bank in Oley, Pennsylvania on May 19, 2015; and, the M&T Bank in Lebanon, Pennsylvania on April 5, 2016. The guilty plea was made pursuant to a plea agreement, subject to the approval of the court, that specified that Pelker will receive a 25-year term of imprisonment when he is sentenced.
Pelker is the eighth and final defendant to plead guilty in relation to these robberies:
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Andrew Ishman, age 31, Wrightsville, pled guilty to the East Prospect bank robbery on October 3, 2016;
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Ryan Miller, a/k/a “Otis,” age 25, Robinson Township, pled guilty to the East Prospect and Oley Bank robberies on April 24, 2015 and December 6, 2016;
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Keith Pelker, age 28, Wernersville, pled guilty to the Lebanon bank robbery on October 3, 2016;
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Shannon Gadzouris, age 24, Shillington, pled guilty to the Lebanon bank robbery on October 3, 2016;
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Kelsie Bair, age 28, and Lindsey School, age 27, both of Lebanon, pled guilty to accessory after the fact after they disposed of the weapon used in the Lebanon bank robbery off a pier in Ocean City, New Jersey. The weapon was ultimately recovered by the FBI scuba diving team; and
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William Papoutsis, Pelker’s uncle, age 35, of Reading, pled guilty to obstruction of justice in relation to these robberies.
All defendants are awaiting sentencing.
The investigation was conducted by the Federal Bureau of Investigation Capital City Violent Crimes Task Force, the Pennsylvania State Police, the South Lebanon Township Police Department, the U.S. Marshals Fugitive Task Force, and the Lebanon and York County District Attorney’s Offices. The Capital City Violent Crimes Task Force consists of representatives from the FBI’s Harrisburg Field Office and the Harrisburg Police Department. Assistant U.S. Attorneys Scott R. Ford and Daryl Bloom are prosecuting the case.
This case was also 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.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for the offenses is life imprisonment, a term of supervised release following imprisonment, and a $1,250,000 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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Two Former Executives of Foreign Defense Contractor Plead Guilty to Fraud in International Navy Corruption ScandalRead the Press Release
Two former executives of a foreign defense contractor pleaded guilty in federal court today for participating in a conspiracy to submit bogus bids, claims and invoices to the U.S. Navy in an effort to steal tens of millions of dollars as part of a years-long corruption and fraud scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Alana W. Robinson of the Southern District of California, Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS) and Director Andrew L. Traver of the Naval Criminal Investigative Service (NCIS) made the announcement.
Neil Peterson, 39, and Linda Raja, 44, both Singaporean nationals, each pleaded guilty to one count of conspiracy to defraud the United States with respect to claims. Both defendants were arrested by authorities in Singapore at the request of the U.S. government and were extradited on Oct. 28, 2016. Sentencing for Peterson and Raja is set before the Honorable Janis L. Sammartino of the Southern District of California on Aug. 11, 2017.
Peterson and Raja worked for Singapore-based Glenn Defense Marine Asia (GDMA). Peterson served as the Vice President for Global Operations, and Raja served as General Manager for Singapore, Australia and the Pacific Isles. According to their pleas, Peterson and Raja conspired with Leonard Glenn Francis, the owner of GDMA, to defraud the U.S. Navy in order to financially benefit GDMA.
As part of their pleas, Peterson and Raja admitted that they and other members of GDMA’s management team created and submitted fraudulent bids. These bids were either entirely or partially fictitious. This ensured that GDMA’s quote would be selected by the U.S. Navy as the supposed lowest bidder. As a result, GDMA could control and inflate the prices charged to the U.S. Navy without engaging in any competitive bidding, as required.
Additionally, Peterson, Raja admitted that they and others knowingly created fictitious port authorities with fraudulently inflated tariff rates and approved the presentation of these fraudulent documents to the U.S. Navy. As a result, GDMA charged inflated prices to the U.S. Navy, rather than what GDMA actually paid to the port authorities. For example, in October 2012, Peterson and other members of GDMA’s core management team directed that false documents and inflated invoices be presented to the U.S. Navy for the U.S.S. Bonhomme Richard’s visit to Kota Kinabalu, Malaysia. The full amount billed to the U.S. Navy for this visit was $1,232,858, of which approximately $877,413 was fraudulently inflated.
Peterson and Raja admitted that the U.S. Navy suffered losses exceeding $34.8 million in total, as a result of the scheme.
Twenty U.S. Navy officials have been charged so far in the fraud and bribery investigation. Additionally, to date, five GDMA executives have been charged and pleaded guilty: (1) Alex Wisidagama, (2) Francis, (3) Edmund Aruffo, (4) Peterson and (5) Raja. Wisidagama was sentenced on March 18, 2016, to 63 months in prison and was ordered to pay $34.8 million in restitution to the U.S. Navy. Francis and Aruffo await sentencing.
A criminal complaint is merely an accusation, and the accused is presumed innocent unless proven guilty in a court of law.
The DCIS, NCIS and the Defense Contract Audit Agency are investigating this matter. Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California are prosecuting the case. The Criminal Division’s Office of International Affairs provided substantial assistance in this matter.
Anyone with information relating to fraud or corruption should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
Two Convicted of Racketeering Offenses Related to Criminal Activities of Florencia 13 Street Gang Receive Lengthy Prison TermsRead the Press Release
LOS ANGELES – Two key operatives of the Florencia 13 street gang who were convicted of racketeering and narcotics offenses following a trial last year have each been sentenced to over a decade in federal prison.
Giselle Casado, also known as “Guera,” 33, of Downey, was sentenced yesterday to 121 months in prison for being a “secretary” to the gang’s “shot-caller,” which allowed her to play an inside role in the gang’s illegal operations.
The evidence presented at last year’s trial showed that Casado relayed gang-related messages, controlled illicit monies, and assisted drug trafficking activities.
A second person found guilty last year by a federal jury – Jose Sanchez, also known as “Trouble” and “Troll,” 41, of Huntington Park – was sentenced last month to 238 months in federal prison. Sanchez, a longtime F13 member, was sentenced on April 17 for his role in the gang’s racketeering activities, as well as related drug trafficking and firearm offenses.
Casado and Sanchez were sentenced by United States District Judge Beverly Reid O’Connell, who presided over a four-week trial that culminated last July with a jury returning guilty verdicts on charges of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act and conspiracy to distribute narcotics. Sanchez also was found guilty of possessing a firearm in furtherance of a drug trafficking crime for possessing a handgun at a “casita” – one of the illegal gambling establishments run by the gang.
The evidence presented at trial showed that Sanchez was one of the F13’s “soldiers,” who were required to engage in drug trafficking and violent acts on behalf of the gang. Sanchez served as armed security to protect illegal narcotics sales at several casitas. He also sold drugs both at the casitas and from his residence in Huntington Park. When she sentenced Sanchez last month, Judge O’Connell described Sanchez as having “consistently led a life of crime.”
The jury that convicted Casado and Sanchez also returned guilty verdicts against two other F13 members who were charged in a federal racketeering indictment in August 2013. The indictment named 30 members and associates of the F13 Gang. With the four convictions last summer, a total of 25 defendants have been convicted in the case (one charged defendant died, and the other four remain fugitives).
The other two defendants found guilty at trial last summer are scheduled to be sentenced by Judge O’Connell on June 5. Jose Dorado, 35, and Tannous Fazah, 27, both of Huntington Park, were also found guilty of the RICO and drug trafficking conspiracies, with the latter offense based on F13’s street sales of illegal narcotics and smuggling of drugs into the Los Angeles County jail system.
During the trial, prosecutors argued that Dorado and Fazah were also “soldiers” who, among other things, participated in the murder of a junior member of the F13 Gang. At sentencing, Dorado and Fazah are each facing a maximum sentence of life without parole in federal prison.
The investigation into Florencia 13 was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Los Angeles County Sheriff’s Department; the California Department of Corrections and Rehabilitation; the Huntington Park Police Department; and the Los Angeles Police Department.
The case is being prosecuted by Assistant United States Attorneys Terrence P. Mann of the Santa Ana Branch Office, Sheila Nagaraj of the Public Corruption and Civil Rights Section, and Victoria A. Degtyareva of the General Crimes Section.
Topeka Man Pleads Guilty to Lying to Investigators Before Deadly StandoffRead the Press Release
TOPEKA, KAN. B A Topeka man pleaded guilty Tuesday to lying to investigators in a 2016 interview during a search for fugitive Orlando J. Collins, U.S. Attorney Tom Beall said today.
Quentin Kirk Lawton, 37, pleaded guilty to one count of making a false statement. In his plea, he admitted that on April 23, 2016, he visited Collins in a room at the Country Club Motel at 3732 S.W. Topeka Boulevard. Lawton left the motel shortly before a standoff between Collins and federal agents. When the FBI questioned Lawton about Collins’ whereabouts, Lawton denied he had been to the motel and seen Collins. In fact, Lawton was captured on video surveillance entering and leaving Collins’ room shortly before members of a federal task force attempted to arrest Collins.
When members of a task force tried to take Collins into custody he shot two U.S. Marshals and an FBI agent. A fire ignited from inside Collins’ room during the gunfight and spread throughout the motel. After the fire, Collins’ body was found in the motel room.
Sentencing is set for Aug. 14. Both parties have agreed to recommend a sentence of 42 months in federal prison. Beall commended the U.S. Marshals Service investigated and Assistant U.S. Attorney Jared Maag for their work on the case.
Sullivan County Man Convicted in White Plains Federal Court of 2015 Robbery and Murder in Swan LakeRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that JEFFREY HERRING, 27, was convicted today of robbing and murdering Michael Northcote on October 12, 2015, in Swan Lake, New York, as well as racketeering charges in connection with his membership in the Askari, a Bloods gang. The jury convicted HERRING on all five counts in the controlling indictment following a two-week trial before U.S. District Judge Kenneth M. Karas.
Acting U.S. Attorney Joon H. Kim stated: “Jeffrey Herring, as a member of the Bloods gang Askari, carried out a violent home-invasion robbery with fellow gang members and senselessly murdered Michael Northcote. Today, a unanimous jury convicted him of racketeering and murder, holding him accountable for his brutal crimes. We want to thank our law enforcement partners – federal, state, and local – for their outstanding work on this case. We are particularly grateful to Sullivan County District Attorney James Farrell for his extraordinary partnership with our Office on this and so many other cases. We hope the jury’s verdict brings some comfort and justice to the family of the victim of Herring’s crimes.”
According to court papers and evidence admitted at trial:
From 2014 to May 2016, JEFFREY HERRING was a member of the Askari in Sullivan County. The Askari is a subset of the Bloods gang that engaged in, among other things, robberies, shootings, and drug dealing. On October 12, 2015, HERRING and several other individuals, including other Askari members, carried out a home-invasion robbery of Michael Northcote, a marijuana dealer, at 177 Cohen & Cohen Road, Swan Lake, New York. In the course of that robbery, HERRING shot and killed Northcote.
For these activities, HERRING was convicted of one count of conspiracy to commit robbery, which carries a maximum sentence of 20 years; one count of robbery, which carries a maximum sentence of 20 years; one count of murder through the use of a firearm, which carries a mandatory minimum sentence of 10 years, to be served consecutively to any other sentence, and a maximum sentence of life; conspiring to violate the racketeering laws, which carries a maximum sentence of 20 years; and felony murder in aid of racketeering, which carries a mandatory minimum sentence of life imprison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
HERRING is scheduled to be sentenced on November 16, 2017, before Judge Karas.
Acting U.S. Attorney Kim praised the Sullivan County District Attorney, the FBI, the New York State Police, the Sullivan County Sheriff’s Office, the Village of Monticello Police Department, and the Village of Liberty Police Department for their outstanding work in this investigation.
The case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Michael Gerber, Lauren Schorr, and Maurene Comey are in charge of the prosecution.
Steamboat Man Sentenced to 120 Months for Voluntary ManslaughterRead the Press Release
PHOENIX – On May 9, 2017, D’Juan Manuel Pizarro, 27, of Steamboat, Ariz., and a member of the Navajo Nation, was sentenced by U.S. District Judge David G. Campbell to 120 months in federal prison, followed by three years of supervised release. Pizarro had previously pleaded guilty to voluntary manslaughter.
On June 4, 2016, Pizarro stabbed the victim, also an enrolled member of the Navajo Nation, to death. The incident occurred on the Navajo Nation Indian Reservation.
The investigation in this case was conducted by the Navajo Nation Department of Public Safety and the Federal Bureau of Investigation. The prosecution was handled by Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-16-8148-DGC
RELEASE NUMBER: 2017-042_Pizarro
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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.
Singapore Executives Plead Guilty to Fraud in International Navy Corruption Scandal; Admit Bilking U.S. Navy of MillionsRead the Press Release
Assistant U. S. Attorneys Mark W. Pletcher (619) 546-9714 and Patrick Hovakimian (619) 546-9718
NEWS RELEASE SUMMARY – May 9, 2017
SAN DIEGO – Neil Peterson and Linda Raja, former executives of foreign defense contractor Glenn Defense Marine Asia (GDMA), pleaded guilty in federal court today to fraud charges, admitting that they conspired to submit bogus bids, claims and invoices to the U.S. Navy in an effort to win contracts and overcharge the Navy by tens of millions of dollars as part of a years-long corruption and fraud scheme.
Peterson, 39, and Raja, 44, both of Singapore, worked as chief deputies for foreign defense contractor Leonard Glenn Francis to fill the coffers of their company, Glenn Defense Marine Asia (GDMA), at the expense of the U.S. Navy. Peterson served as the Vice President for Global Operations for GDMA and Raja served as GDMA’s General Manager for Singapore, Australia, and the Pacific Isles.
Both defendants were arrested by authorities in Singapore at the request of the U.S. government and were extradited on Oct. 28, 2016. Sentencing for Peterson and Raja is set before U.S. District Judge Janis L. Sammartino on August 11, 2017 at 9 a.m.
According to Peterson’s and Raja’s plea agreements, they and other members of GDMA’s management team created and submitted fraudulent bids that were either entirely fictitious, contained falsified prices supposedly from actual businesses, or fraudulently stated that the business shown on the letterhead could not provide the items or services requested. In this manner, Peterson and Raja and other members of GDMA's core management team could ensure that GDMA's quote would be selected by the U.S. Navy as the supposed low bidder. GDMA could thus control and inflate the prices charged to the U.S. Navy without any true, competitive bidding, as required.
Peterson and Raja admitted that they and other members of the GDMA management team knowingly created and approved fictitious Port Authorities with fraudulently inflated Port Tariff Rates, and approved the presentation of such fraudulent documents to the U.S. Navy. GDMA thus charged inflated prices to the U.S. Navy, rather than what GDMA actually paid to the bona fide Port Authorities.
For example, for the visit of the U.S.S. Bonhomme Richard visit to Kota Kinabalu, Malaysia, in or about October 2012, under the direction of Peterson and other members of GDMA's core management team, false
documents and inflated invoices were presented to the U.S. Navy. The full amount billed to the U.S. Navy for this visit was $1,232,858, of which approximately $877,413 was fraudulently inflated.
Peterson and Raja admitted that losses to the United States Navy exceeded $34,800,000.
Twenty Navy officials have been charged so far in the fraud and bribery investigation.
In addition, five GDMA executives – Neil Peterson and Linda Raja as well as Francis, Alex Wisidagama, Ed Aruffo, – have been charged All five have pleaded guilty.Wisidagama was sentenced on March 18, 2016 to 63 months and $34.8 million in restitution to the Navy. Francis and Aruffo await sentencing;
The Defense Criminal Investigative Service, Naval Criminal Investigative Service and the Defense Contract Audit Agency are investigating. Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California and Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section are prosecuting the case.
Anyone with information relating to fraud or corruption should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
DEFENDANTS Case Number: 14-CR-3703-JLS
Neil Peterson Age: 39 Singapore
Linda Raja Age: 44 Singapore
SUMMARY OF CHARGES
Conspiracy to Defraud the United States with Respect to Claims, in violation of 18 U.S.C. § 286
Maximum Penalty: 10 years in prison, a $250,000 fine.
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Santa Ana Man Arrested on Federal Charges of Illegally Selling Feathers from Bald Eagles and Other Protected Migratory BirdsRead the Press Release
LOS ANGELES – A Santa Ana man was arrested today by special agents with the United States Fish and Wildlife Service after he was charged with unlawfully selling feathers from a bald eagle and other protected migratory birds.
Tyler Rene Vela, 27, was arrested this morning without incident pursuant to a criminal complaint filed last week. Vela is scheduled to make his initial appearance this afternoon in United States District Court.
The complaint filed last Wednesday outlines an undercover investigation conducted by agents from the Fish and Wildlife Service to identify individuals who illegally traffic in eagles, red-tail hawks and other protected bird species.
Following a series of undercover Facebook messages, Vela sold “bustles” made from feathers taken from red-tail hawks, turkey vultures and bald eagles, according to the complaint. A bustle is a string of either hawk or eagle feathers attached to a backboard and worn on the back during Native American dance exhibitions. In 2015 2016, Vela allegedly negotiated prices, accepted payments and mailed the bustles to undercover agents.
Southern California is home to a variety of protected native and migratory bird species. Protected wildlife species are generally identified as threatened or endangered and are in need of protection to ensure the viability of the population.
Federal wildlife statutes are in place to protect migratory birds, red-tail hawks and other birds of prey, generally prohibiting the sale and trafficking of their parts. The use of the internet and social media platforms to sell protected bird species – or any other threatened or endangered wildlife – creates a market, increases demand and ultimately leads to the decimation of these vulnerable populations.
The complaint charges Vela with misdemeanor offenses of selling subadult bald eagle feathers and the parts of other protected migratory birds, including a red-tailed hawk. If convicted of violating the Bald and Golden Eagle Protection Act, Vela faces a statutory maximum sentence of one year in federal prison. If convicted of violating the Migratory Bird Treaty Act, he faces a statutory maximum of six months in federal prison.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The case against Vela is being investigated by the United States Fish and Wildlife Service, Office of Law Enforcement.
The case is being prosecuted by Assistant United States Attorney Amanda M. Bettinelli of the Environmental and Community Safety Crimes Section.
Sales Rep for North Alabama Compounding Pharmacy Charged in $13 M Insurance ConspiracyRead the Press Release
BIRMINGHAM – Federal prosecutors today charged a sales representative for a Haleyville, Ala.,-based compounding pharmacy with conspiracy in a multi-faceted scheme to generate prescriptions and defraud Blue Cross Blue Shield of Alabama and one of its prescription drug administrators out of over $13 million in one year. Acting U.S. Attorney Robert O. Posey, Federal Bureau of Investigation Special Agent in Charge Roger Stanton, United States Postal Inspector in Charge, Houston Division Adrian Gonzalez, U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Derrick L. Jackson, and Defense Criminal Investigative Service Special Agent in Charge John F. Khin announced the charges.
The U.S. Attorney’s Office filed a four-count information in U.S. District Court charging ROBIN GARY LOWRY, 49, of Columbus, Miss., with conspiring between October 2014 and November 2015 to defraud BCBS of Alabama and Prime Therapeutics, the entity that processed prescription drug reimbursement claims for BCBSAL. The information also charges Lowry with three counts of health care fraud for submitting fraudulent claims for payment to BCBSAL.
In conjunction with the charges, prosecutors also filed a plea agreement with Lowry.
Lowry worked for Northside Pharmacy, which did business as Global Compounding Pharmacy. Global’s compounding and shipping facility was in Haleyville. The pharmacy did all of its prescription processing, billing and customer service at its “call center” in Clearwater, Fla.
In May 2015, Prime notified Global that it was terminating the compounding pharmacy from its network, effective Sept. 4, 2015. Also in May 2015, two Global employees became listed owners of Carrollton Pharmacy, which does business as The Prescription Shop in Haleyville. After the Sept. 4 date, Global began compounding and shipping its drugs from other pharmacies, including TPS, which in 2015 was a Prime network pharmacy contracted with BCBSAL.
Prime paid claims of more than $13 million to Global and TPS in 2015, according to Lowry’s plea agreement. Global and TPS billed more than $13 million. Lowry’s plea agreement holds her accountable for between $250,000 and $550,000 of the fraudulent claims and seeks to have her forfeit $272,405 as proceeds of illegal activity.
According to the information and plea agreement, there was a conspiracy among Lowry and others at Global to generate prescriptions, particularly high-reimbursement prescriptions. To increase profits, Global targeted products covered by BCBSAL, which was its employee insurance provider.
Global paid Lowry an annual salary, plus a monthly commission for each prescription she obtained.
The court documents describe the conspiracy as follows:
Global recruited close relatives of doctors and other prescribers as sales representatives. It also encouraged employees to work, typically without pay, at prescribers’ offices where they were to review patient files in order to recommend and encourage use of Global's products.
Global also frequently instructed its employees to obtain high-reimbursing, but medically unnecessary prescriptions for Global products for themselves and their family members, and waived co-pays for these products. A July 2015 email from a Global sales executive to other pharmacy employees encouraged every sales representative and district manager to get a prescription “for themselves and every eligible family member” for SilaPak, a high-reimbursing “topical skin repair complex.”
“So far we have 15 reps and one [district manager] who have gotten at least one in. If we get everyone in the week that would be around 45-50 depending on the family. At 50 that is $220,000 in revenue and we need it,” the email said.
Lowry obtained prescriptions from a prescriber with whom she had a close familial relationship, and who sometimes issued the prescriptions to people without talking to or having a doctor-patient relationship with them. Lowry also frequently forged prescriptions from her relative, according to the charges and her plea agreement.
In July 2015, Lowry sent Global a forged SilaPak prescription for the three-year-old child of a Global employee, even though Global’s own marketing materials warned that the SilaPak cream was not to be used for children. Global filled the prescription and mailed a refill of it for the child to Santa Rosa Beach, Fla., in August 2015.
The maximum punishment for the conspiracy charge is five years in prison and a $250,000 fine. The maximum penalty for health care fraud is 10 years in prison and a $250,000 fine.
FBI, USPIS, HHS-OIG and DCIS investigated the case, which Assistant U.S. Attorneys Chinelo Dike-Minor and Nicole Grosnoff are prosecuting.
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Queens, New York Man Charged with Supplying over 1 Kilogram of Heroin for Distribution in VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that a federal grand jury returned a Second Superseding Indictment charging Javier Pallamps-Fernandez, aka “Javi,” of Queens, New York with drug distribution charges. Specifically, the indictment alleges that Pallamps-Fernandez conspired with Christopher Nazer of Milton to distribute over a kilogram of heroin in Vermont from approximately 2012 to May of 2016.
In Court documents, the United States alleges that during the conspiracy, Pallamps-Fernandez, Nazer, and others trafficked heroin from New York City to the Burlington area, through the use of vehicles with hidden compartments. On May 9, 2016, law enforcement seized an Audi station wagon registered to Nazer that contained over 1 kilogram of heroin in a hidden compartment. The United States alleges that Pallamps-Fernandez was the source of that heroin.
On May 9, 2017, Javier Pallamps-Fernandez appeared before United States Magistrate Judge John M. Conroy for his arraignment, and was ordered detained pending trial.
The United States Attorney emphasizes that the charges contained in the Second Superseding Indictment are merely accusations and that the defendants are presumed innocent unless and until they are proven guilty. If Pallamps-Fernandez is convicted, he faces a mandatory minimum sentence of twenty years, and a maximum possible term of imprisonment of life.
The United States is represented in this matter by Assistant U.S. Attorney Jonathan A. Ophardt. Pallamps-Fernandez is represented by Barry Goldberg, Esq. of New York, New York. The investigation was conducted by the Burlington Police Department and the Drug Enforcement Administration, with assistance from the Milton Police Department.
Pittsburgh Man Charged with Distributing FentanylRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Jacob Palaski, 26, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the indictment, on or about July 9, 2016, Palaski distributed and possessed with intent to distribute a quantity of a mixture and substance containing a detectable amount of fentanyl, a Schedule II controlled substance.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine not to exceed $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Katherine A. King is prosecuting this case on behalf of the government.
The Peters Township Police Department and the Drug Enforcement Administration conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia District Attorney Rufus Seth Williams Indicted on Additional Fraud ChargesRead the Press Release
PHILADELPHIA – Philadelphia District Attorney Rufus Seth Williams was indicted today on additional fraud charges stemming from his alleged use of political action committee (PAC) funds and official government vehicles for his personal benefit, Acting New Jersey U.S. Attorney William E. Fitzpatrick announced.
Williams, 50, of Philadelphia, is now charged in a superseding indictment with 11 counts of travel and use of interstate facilities to promote and facilitate bribery contrary to Pennsylvania law (the “Travel Act counts”), two counts of Hobbs Act extortion under color of official right, two counts of honest services wire fraud, 12 counts of wire fraud and two counts of mail fraud.
Williams was originally charged in a 23-count indictment on March 21, 2017. The superseding indictment now contains 29 counts, including Counts 22 to 29 regarding Williams’ use of PAC funds and official vehicles.
The Fraud Involving PAC Funds Friends of Seth Williams, a/k/a “The Committee to Elect Seth Williams,” was a political action committee that accepted contributions from individuals to support Williams’ campaigns for public office. Under applicable law, the PAC funds could only be used in relation to political campaigns.
According to the superseding indictment, from August 2010 through August 2016, Williams allegedly defrauded the PAC by using its funds for personal expenditures, which he concealed by providing false or incomplete reports to the Commonwealth of Pennsylvania and to the City of Philadelphia.
For instance, between August 2010 and September 2010, the PAC disbursed two checks to a political consultant totaling approximately $4,136.59. The memo line on these checks falsely stated, “Political Consulting.” Within days of the political consultant receiving the PAC checks, Williams obtained checks from the political consultant’s account and deposited them into his own bank account. In total, Williams received approximately $4,036.59 of the approximately $4,136.59 that the political consultant received from the PAC between August 2010 and September 2010. Williams used these funds for personal expenses.
In addition, from October 2011 through April 2015, Williams incurred expenses at a social club for his personal benefit, including dinner parties, lodging, and family events, none of which were incurred in connection with any election. Williams used the PAC’s debit card to pay for these expenses, including charges of $677.98 for a New Year’s Eve celebration at the social club on Dec. 31, 2013 for Williams and his girlfriend; $195.50 for a facial and massage in January 2014; $777.19 for an April 10, 2014 birthday dinner that Williams held for his girlfriend; $491.50 for a massage, facial, gift card, and fitness classes in January 2015; approximately $2,674.41 for an April 10, 2015 birthday dinner that Williams held for his girlfriend; and approximately $211.50 for massages in May 2015.
From January 2013 through May 2015, Williams incurred expenses at a health club for his own personal benefit, including massages, facials, and clothing, none of which were incurred in connection with any election. Williams also used the PAC’s debit card to pay for these expenses, including charges for massages of $222.50 in January 2013, $209 in July 2013, $251.50 in September 2013, and $90 in November 2013.
The Fraud Involving Official Government Vehicles Williams also allegedly engaged in a scheme to use official vehicles – which were provided by the City of Philadelphia and a federal narcotics law enforcement program – for his personal benefit.
Some of those vehicles were obtained through grants provided by the High Intensity Drug Trafficking Area (HIDTA) program. The purpose of the HIDTA program was to reduce illegal drug trafficking and drug production in the United States by, among other things, facilitating cooperation among federal, state, and local law enforcement agencies. The HIDTA program provided resources and funding to enhance and promote regional drug control strategies within defined geographic areas. Each geographic area designated as a HIDTA was governed by an Executive Board comprised of federal, state, and local law enforcement agencies.
Williams was a member of the Executive Board for the HIDTA of Philadelphia and Camden, New Jersey. The District Attorney’s Office (DAO) assigned HIDTA vehicles to detectives in its Dangerous Drug Offender Unit (DDOU), which often conducted narcotics investigations with federal and state HIDTA partners. Vehicles owned or leased by these agencies could not be used for personal purposes.According to the superseding indictment, Williams repeatedly used city and HIDTA vehicles for his personal use during non-working hours, including weeknights and weekends. Williams directed his security detail to leave a city or HIDTA vehicle at his home every weeknight, so that he would have access to it during all non-working hours. Williams used the vehicles to transport himself, family members, friends and other non-employees on non-DAO business, including personal trips outside of Philadelphia.
During the scheme, Williams had full-time access to city or HIDTA vehicles for nearly all of his personal vehicular needs and personally incurred almost no expenses related to the use of a personal vehicle for years, including costs of purchasing, leasing, or renting a vehicle, or paying for insurance, fuel, and maintenance.
In addition, Williams’ acquisition and use of the HIDTA vehicles, including a Nissan Armada SUV and two Chevrolet Tahoe SUVs, reduced the number of vehicles available to members of the DAO’s DDOU for undercover operations, surveillance, and other aspects of narcotics investigations.
Bribes Involving Business Owners and Fraud on a Nursing Home and Family Friends
Williams remains charged with the same three schemes that were detailed in the March 21, 2017 indictment:
• From July 2010 through May 2015, Williams allegedly had an arrangement with an individual identified in the superseding indictment as “Business Owner #1,” in which Williams, while serving as the Philadelphia District Attorney, accepted trips, money, and other things of value in exchange for performing and agreeing to perform official acts on behalf of Business Owner #1.
• From March 2012 through July 2015, Williams allegedly had an arrangement with an individual identified in the superseding indictment as “Business Owner #2,” in which Williams accepted airline tickets, money, an automobile, and other things of value in exchange for performing and agreeing to perform official acts on behalf of Business Owner #2.
• From February 2012 through November 2013, Williams allegedly diverted a relative’s pension and Social Security payments to pay for his own personal expenses instead of applying them to the relative’s nursing home costs. In addition, after accepting $10,000 from friends of his relative intended to cover expenses for the relative’s nursing home care, Williams spent the money on his personal expenses instead.
The 29-count superseding indictment presents some alterations to the original counts, without changing the substance of the above allegations. Williams was arraigned on March 22, 2017, and entered a plea of not guilty. The trial is presently set for May 31, 2017.
Each of the Travel Act counts is punishable by a maximum potential penalty of five years in prison. The Hobbs Act extortion under color of official right and the wire and mail fraud charges are each punishable by a maximum potential penalty of 20 years in prison. Each count carries a potential fine of $250,000 or twice the gross gain or loss from the offense. The indictment also seeks forfeiture of a total of approximately $64,878.22, representing the sum of approximately $33,765.52 worth of bribe proceeds and approximately $31,112.70 worth of fraud proceeds.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Michael Harpster in Philadelphia; special agents of IRS-Criminal Investigation, Philadelphia Office, under the direction of Acting Special Agent in Charge Gregory Floyd, and special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigation (HSI) Philadelphia, under the direction of Special Agent in Charge Marlon V. Miller, with the investigation. He also thanked the U.S. Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Nick DiGiulio, for its participation in the investigation.
The U.S. Attorney in the Eastern District of Pennsylvania recused his office from the investigation involving the Philadelphia District Attorney’s Office, and the matter was assigned to the U.S. Attorney’s Office for the District of New Jersey. Two prosecutors from the Eastern District of Pennsylvania office were assigned to the case, subject to the supervision of prosecutors in the New Jersey office.
The government is represented by Deputy Chief Eric W. Moran of the U.S. Attorney’s Office Criminal Division in Newark and Chief of Appeals Robert A. Zauzmer and Assistant U.S. Attorney Vineet Gauri of the U.S. Attorney’s Office in Philadelphia.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Thomas F. Burke Esq., Philadelphia.
Pasadena Man Sentenced to 9 Years in Federal Prison for Distributing Child Pornography over Peer-to-Peer Computer NetworkRead the Press Release
LOS ANGELES – A Pasadena resident has been sentenced to nine years in federal prison for distributing child pornography over a peer-to-peer file-sharing network.
Michael Brian Perry, 38, was sentenced on Monday by United States District Judge Otis D. Wright II.
Perry pleaded guilty on February 15 to one count of distribution of child pornography. In a plea agreement filed in court, Perry admitted that in October 2014 he “used peer-to-peer software on his computer hard drive to knowingly share with other peer-to-peer users files that defendant knew contained visual depictions of minors engaged in sexually explicit conduct.”
When authorities searched Perry’s residence in November 2014, they recovered computer equipment that contained at least 697 images of child pornography and at least 457 videos of child pornography, some of which depicted children under the age of 12 being used for sexual acts and some of which portrayed sadistic or masochistic sexual conduct against the minor victims.
Once he completes his prison term, Perry will be on supervised release for 20 years and will be required to register as a sex offender.
The case against Perry was brought as part of Operation “Wide Net,” an investigation conducted by the Los Angeles Internet Crimes Against Children (ICAC) Task Force. ICAC includes special agents with the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the United States Postal Inspection Service, who work in conjunction with local law enforcement partners, including the Los Angeles Police Department and the Los Angeles Sheriff’s Department.
The case against Perry was prosecuted by Assistant United States Attorney
Vanessa Baehr-Jones of the Violent and Organized Crime Section.
Oncology Therapy Center in High Desert Pays $3 Million to Resolve Allegations of Providing Radiation Treatments without Doctor PresentRead the Press Release
LOS ANGELES – A Lancaster-based radiation therapy center has paid $3 million to resolve allegations that it submitted fraudulent bills over a nearly 10-year period to three government-run healthcare programs for unsupervised radiation oncology services.
Valley Tumor Medical Group paid $2,865,693 to the United States and $134,307 to the State of California on April 13 to resolve allegations in a “whistleblower” lawsuit that it submitted fraudulent bills to the Medicare, Medi-Cal and TRICARE programs.
The civil action, United States ex rel. Shindler v. Valley Tumor Medical Group, et al., CV 15-2249, was unsealed and dismissed on April 20 by United States District Judge R. Gary Klausner. The government learned of the unsealing late yesterday.
From January 3, 2006 through November 13, 2015, Valley Tumor’s radiation therapists allegedly administered radiation oncology treatments at Valley Tumor’s Ridgecrest location to beneficiaries of the three government healthcare programs when no doctor was on-site at the center, which is required by federal regulations. Valley Tumor closed its Ridgecrest location in early 2016.
Valley Tumor was named in a federal “whistleblower” lawsuit filed in 2015 that alleged the company and its doctor-owners knowingly submitted false claims to the Medicare, Medi-Cal and TRICARE programs. The lawsuit was brought by a former Valley Tumor employee under the qui tam – or whistleblower – provisions of the False Claims Act, which allows private citizens to bring suit on behalf of the government and share in any recovery. The whistleblower, Jared Shindler, received $555,000 from the settlement.
Valley Tumor did not admit liability in settling the lawsuit.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General. The settlement was finalized by Assistant United States Attorney Linda A. Kontos of the Civil Fraud Section.
Ohkay Owingeh Man from Santa Fe Pleads Guilty to Federal Kidnapping ChargeRead the Press Release
ALBUQUERQUE – Earl Adams, 53, and enrolled member of the Ohkay Owingeh Pueblo who resides in Santa Fe, N.M., pled guilty today in federal court in Albuquerque, N.M., to a kidnapping charge. The plea agreement recommends that Adams be sentenced to 11 years of imprisonment followed by a term of supervised release to be determined by the court.
Adams was arrested on March 2, 2017, on an indictment charging him with assault resulting in serious bodily injury and kidnapping. According to the indictment, Adams committed the offenses on March 1 and 2, 2016, on the Ohkay Owingeh Pueblo in Rio Arriba County, N.M.
During today’s proceedings, Adams pled guilty to the kidnapping charge. In entering the guilty plea, Adams admitted seizing and confining the victim in a residence on March 1, 2016, because the victim refused to take him to the store to purchase alcohol. Adams assaulted the victim by punching and kicking her, dragging her around the residence by her hair, and binding her hands and feet with zip ties. As a result of the assault, the victim suffered a black eye, a nasal fracture and a forearm fracture, both of which required surgery, injuries the hand and wrist, which required physical therapy, and loose front teeth. Adams admitted that he did not release the victim until March 2, 2016, when police arrived at the residence.
Adams remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and the Ohkay Owingeh Tribal Police Department. Special Assistant U.S. Attorney Lucy Solimon is prosecuting the case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Notice of Court ProceedingsRead the Press Release
Contact Person: Lance Crick (864) 282-2100
David Jerome Butler to make initial appearance tomorrow morning in federal court pursuant to a federal arrest warrant obtained by ATF on Friday, May 5, 2017COLUMBIA, SOUTH CAROLINA – United States Attorney Beth Drake announced this afternoon that an initial appearance has been scheduled for David Jerome Butler tomorrow morning at 10am at the Federal Courthouse in Greenville, South Carolina.
WHEN:Wednesday, May 9, 2017, at 10:00 a.m.
WHERE:Clement F. Haynsworth Federal Building
Courtroom #4
300 East Washington Street
Greenville, SC 29601#####
Navy Port Engineer Admits Working on Projects Despite Having a Personal Financial InterestRead the Press Release
Assistant U.S. Attorney Phillip L.B. Halpern (619) 546-6964
NEWS RELEASE SUMMARY – May 9, 2017
SAN DIEGO – U.S. Navy Port Engineer John Nasshan pleaded guilty today to a conflict of interest charge, admitting that he improperly administered projects at the Navy’s Southwest Regional Maintenance Center involving a defense contractor with whom he had a financial relationship.
According to his plea agreement, Nasshan made decisions and recommendations affecting Navy contracts with NevWest, Inc. even though he made personal loans to a company official, which is a conflict of interest.
Nasshan has been employed at Southwest Regional Maintenance Center as a Combat Systems Port Engineer since March of 2009. As a Combat Systems Port Engineer, Nasshan drafted technical direction letters, recommended which contractors were qualified for jobs and verified and certified work performed on Navy ships by contractors.
Among other things, San Diego-based NevWest provides combat systems engineering support, electronic technical support, enterprise management and application development services in command, control and communications, computers, combat systems, intelligence, surveillance and reconnaissance, and electronics space modernizations.
As detailed in government pleadings, between May 2011 and September 2015, Nasshan had a financial interest in the business affairs of NevWest. In particular, Nasshan loaned NevWest more than $30,000 at the same time that NevWest was engaged in numerous subcontracts with Southwest Regional Maintenance Center. Naashan made these loans despite recognizing that his job required that he administer NevWest subcontracts.
In order to hide and conceal their illegal activity, Nasshan and an official at NevWest agreed to keep their financial arrangement secret; to deal in cash when exchanging amounts over $10,000; and to structure the cash they were exchanging by dividing it up into amounts of $10,000 or less.
Nasshan also lied to both Naval Criminal Investigative Service and Federal Bureau of Investigation agents regarding his relationship with NevWest. For example, on November 13, 2015, he falsely told an FBI agent that he did not have a financial interest with NevWest; that he never gave a NevWest employee cash or a check; and he never loaned a company official or NevWest money.
“As in all phases of the Government contracting process, it is essential that the work performed by contractors be done free of undue influence, bias, or favoritism,” said Acting U.S. Attorney Alana W. Robinson. “Accordingly, government officials and employees are prohibited from working on any and all matters that would affect their personal financial position.”
“The successful prosecution of this case was the direct result of collaborative teamwork between the Naval Criminal Investigative Service, our federal law enforcement partners and the U.S. Attorney's Office,” said Gunnar Newquist, Special Agent in Charge of the NCIS Southwest Field Office. “Convictions like this should be a warning to those who would attempt to take advantage of the U.S. Navy, for personal gain. We are unified in our efforts to catch criminals who not only defraud the U.S. Navy, but specifically are stealing money from the American taxpayers at the direct loss to our warfighters.”
Chris Hendrickson, Special Agent in Charge of the Defense Criminal Investigative Service's Western Field Office said: “DCIS and its partner agencies will aggressively investigate Department of Defense personnel who abuse their positions of trust and corruptly advance their own interests. This behavior tarnishes the integrity of the Department's procurement processes and erodes the public's faith in government.”
“The FBI seeks truth and justice in our investigations,” commented FBI Special Agent in Charge Eric S. Birnbaum. “Today’s conviction shows that the FBI, along with our investigative partners, will ultimately uncover the truth despite roadblocks created by those who stand to personally benefit from their lies.”
DEFENDANT: Case Number 17cr1166-JLS
John Nasshan Age: 55 Jamul, CA
SUMMARY OF CHARGES
Conflict of Interest – Title 18, U.S.C., Section 208
Maximum penalty: Five years in prison and $250,000 fine
AGENCIES
Federal Bureau of Investigation
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Napa California Resident Sentenced to 5 Years in Prison for EmbezzlementRead the Press Release
A 67-year-old resident of Napa, California was sentenced today in U.S. District Court in Seattle to five years in prison, announced U.S. Attorney Annette L. Hayes. TERRANCE L. COSGROVE pleaded guilty in December 2016 to two counts of wire fraud and one count of mail fraud for a series of embezzlements totaling nearly $4 million. The funds were stolen from a fishing company and from trusts set up by COSGROVE’s close friends to provide for those friends’ wives and children. At sentencing U.S. District Judge John C. Coughenour also imposed restitution in the amount of $2,915,916, and a forfeiture money judgment in the amount of $3,936,977.
“This defendant carefully tended a veneer of honesty and loyalty, while betraying those who trusted him most,” said U.S. Attorney Annette L. Hayes. “He stole not only from his business partners but from the widow and children of close friends. The significant prison sentence imposed in this case is the proper ending to this callous crime.”
“By pillaging the finances of close friends’ families, Mr. Cosgrove subjected to further trauma the very people he pledged to help,” said Assistant Special Agent in Charge Carlos Mojica. “He exploited his immense responsibility as a business partner and trustee to fuel his greed. Thanks to the exhaustively detailed work of forensic accountants working alongside investigators for years, Mr. Cosgrove faces justice for his despicable betrayal.”
According to records filed in the case, COSGROVE engaged in a series of thefts. First in 2009, the partners in a fishing company called ISP Trading discovered that COSGROVE had been taking management fees in excess of the fees the partners had authorized. COSGROVE embezzled more than $3 million.
The two other embezzlement schemes involved theft from accounts where COSGROVE had been appointed as a trustee by close friends. In 2013, the widow of one of COSGROVE’s close friends discovered that COSGROVE had depleted the trust that had been set up by her husband. COSGROVE stole more than $335,000. The widow was forced to sell the family home to avoid foreclosure because of the thefts. In the third criminal scheme, between 2011 and 2012, COSGROVE diverted funds that had been set up to benefit the wife and children of a close friend. In this instance COSGROVE stole more than half a million dollars.
In his plea agreement COSGROVE admits he used the funds to live a life of luxury with multiple expensive homes, luxury cars, country club memberships and expensive hobbies such as wine collecting.
The case was investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Francis Franze-Nakamura.
Press contact for the U.S. Attorney’s Office on May 9 and 10, 2017 is Colleen Bernier at (206) 553-7970. After May 10 please contact Public Affairs Officer Emily Langlie at (206) 553-4110 or [email protected].
Max Myong Ahn Sentenced for Selling SpiceRead the Press Release
Today, SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant MAX MYONG AHN, age 60, from Dededo, Guam, was sentenced in District Court on May 8, 2017, to five years probation to include one year home detention, restitution in the amount of $583.00 to the Department of Public Health – Medicaid Division and a $7,500 fine, for Unlawful Use of the Mail to Facilitate the Distribution of Controlled Substance Analogues. The Court also ordered AHN to pay a mandatory $100 assessment fee.
The Federal Analogue Act, 21 U.S.C. § 813, is a section of the United States Controlled Substances Act passed in 1986. The law allows any chemical "substantially similar" to a controlled substance listed in Schedule I or II to be treated as if it were also listed in those schedules, but only if intended for human consumption. These similar substances are often called designer drugs, spice or bath salts.
On November 3, 2016, AHN entered a guilty plea to an Information charging him with Unlawful Use of the Mail to Facilitate the Distribution of Controlled Substance Analogues, in violation of 18 U.S.C. §§ 2 and 1952(a)(3). Undercover investigations at Gallop USA and Max’s Smoke Shop (Max’s), both owned by AHN, revealed that AHN sold Spice to customers and friends. Agents seized 25 bags of spice and 50 plastic jars containing spice residue from Max’s. Agents also seized 792.8 grams of spice and $129,842 in United States currency from Gallop.
Acting U.S. Attorney Anderson stated, “The Drug Enforcement Administration actively works to properly control new generations of designer drugs. These substances are a significant threat to the health of users both domestically and internationally. The Department of Justice and our local and federal partners remain committed to early and active enforcement of drug laws to protect our communities.”
The investigation was conducted by the U.S. Postal Service and the Drug Enforcement Administration, Guam Customs & Quarantine Agency, Guam Police Department, Alcohol, Tobacco, & Firearms, Superior Court of Guam Probation Office, and the Naval Criminal Investigative Service. The case was prosecuted by Clyde Lemons, Jr., Assistant United States Attorney for the District of Guam.
Massachusetts Man Sentenced to 7½ Years for a Heroin Distribution ConspiracyRead the Press Release
Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Victor Rosario, 32, of Lawrence, Massachusetts was sentenced today in U.S. District Court by Judge Jon D. Levy to 7½ years in prison and four years of supervised release for conspiring to distribute heroin. Rosario pled guilty on January 6, 2017.
Court records reveal that between July 2015 and January 2016, Rosario regularly supplied heroin to several Maine residents who transported it from Lawrence to Maine and distributed some of it to associates and customers. In January 2016, state agents seized over 100 grams of heroin from one of Rosario’s Maine customers who was returning to Maine after purchasing it from Rosario. Federal agents later arranged for the covert purchase of heroin from Rosario in Lawrence.
This case was investigated by the Maine Drug Enforcement Agency, the Maine State Police, and the U.S. Drug Enforcement Administration, and investigated and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Maryland Man Sentenced to over 4 Years in Federal Prison for Transporting Stolen GoodsRead the Press Release
Sold $500,000 Worth of Designer Sunglasses and Other Items Stolen from Shopping Mall Kiosks
Baltimore, Maryland – On May 8, 2017, U.S. District Judge Richard D. Bennett sentenced Brian Nelson Halsey, age 52, of Westminster, Maryland, formerly of Dundalk, Maryland to 57 months in prison, followed by three years of supervised release, for a scheme to sell property stolen from shopping mall kiosks online.
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, from October 7, 2014 through March 29, 2016, Halsey used online accounts opened in different names and identities to sell stolen items, including designer sunglasses, and shipped the items nationwide from his home in Dundalk, Maryland.
Specifically, Halsey’s co-conspirator, William Albert Engel, broke into kiosks and stores in shopping malls in Cape Girardeau, Missouri; Fairview Heights, Illinois; Wilmington, North Carolina, and Myrtle Beach, Columbia, and Florence, South Carolina, and stole merchandise which he brought to Halsey in Maryland. Halsey sold the property through an online market, and used the U.S. Postal Service and commercial carriers to ship the stolen property to the buyers. Halsey provided cash from the sale of the stolen property to Engel and also helped to finance Engel’s travel expenses to other states to commit thefts in order to obtain more property for sale. Halsey maintained multiple online market accounts, online payment accounts, and bank accounts under different names and identities during the scheme.
On August 28, 2015, law enforcement searched Halsey’s residence and recovered over $200,000 worth of stolen designer sunglasses, as well as a printing and labeling system, and a large number of documents related to selling sunglasses through an online market. Law enforcement also recovered lock-pick kits and numerous atlases and street maps.
Halsey admitted that more than five individuals participated in the scheme, helping Halsey to package and ship the stolen sunglasses, providing their identification information to Halsey to set up bank and online accounts, and/or assisting in the thefts. Halsey organized the sale of items online and their shipment to buyers outside Maryland. The estimated loss from the scheme was approximately $500,000.
Engel has pleaded guilty and is scheduled to be sentenced on June 5, 2017, at 3:00 p.m.
Acting United States Attorney Stephen M. Schenning commended the FBI and Maryland State Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorney Aaron S. J. Zelinsky, who is prosecuting the case.
Littleton Woman Sentenced to Seven Years in Federal Prison for Oil and Investment SchemeRead the Press Release
DENVER – Jill M. Evans, age 51, of Littleton, Colorado, was recently sentenced by U.S. District Court Judge John L. Kane to serve 84 months (7 years) in federal prison for wire fraud and money laundering, the U.S. Attorney’s Office, FBI and Internal Revenue Service – Criminal Investigations announced. Following her prison sentence, Evans was ordered to serve 3 years on supervised release. She was also ordered by Judge Kane to pay $2,094,500 in restitution. Evans was indicted by a federal grand jury on May 21, 2015 and pled guilty on January 23, 2017. She was remanded to the custody of the U.S. Marshals at the end of the hearing.
According to the indictment and plea agreement, in September 2011 and continuing through May 2015, Evans devised a scheme to defraud at least eight individuals whom she solicited to invest in alleged oil transactions. Evans represented to potential investors that she or one of her companies, Paramount Mortgage or Evcom, had a contract with a Russian company to purchase tankers of diesel oil and jet fuel. She claimed that the oil deals could not be completed until certain fees or other expenses related to the deals could be paid.
Evans falsely told investors they would receive a return on their investment ranging from fifty percent to fifty times their original investment within a matter of days or weeks. She told investors that their funds would be held in an escrow account and would be fully refundable if the oil deal did not close. Evans instructed investors to transfer funds to bank accounts. Investors’ funds were not used as represented and were also sent to personal bank accounts that Evans controlled.
Evans told investors that oil deals were nearing successful completion and that disbursements of profits were imminent. She forged e-mails and letters from an attorney at Salans, a major international law firm now merged with Dentons, stating the deal was proceeding and certain steps in the transaction were being completed. She represented that this law firm and Barclays Bank were vetting the deal, when they were not. She created false wire confirmations that she sent to her victims to conceal the disposition of their funds. Evans also sent e-mails attaching fabricated court documents regarding the status of civil litigation purporting to award Evans or related parties substantial sums of money.
Furthermore, Evans concealed from her victims her December 2011 criminal indictment by a State of Colorado grand jury and her subsequent March 2013 criminal conviction for theft and forgery. Evans’s bond conditions prohibited her from entering into any financial transactions in excess of $1,000, and the terms of her subsequent state sentence prohibited her from investing money, entering into any financial contracts or arrangements, and having access to or control of any funds of any individual.
“This is long-term, deliberate, professional stealing,” said Acting U.S. Attorney Bob Troyer. “Luckily for the victims, our prosecutors and the IRS CI and FBI investigators are even more skilled and dogged at rooting out rank theft from innocent victims. And the defendant will have a nice chunk of time to reflect on that.”
"Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money," said Steven Osborne, IRS-Criminal Investigation, Special Agent in Charge, Denver Field Office. “IRS-Criminal Investigation is proud to bring our forensic accounting skills to this joint venture and help put a stop to this and other types of white collar crime."
“This sentence sends a strong message to anyone considering deceiving others with fraudulent investment schemes.” said FBI Denver Special Agent in Charge Calvin Shivers. “The FBI will continue to work with our law enforcement partners to protect innocent victims from being preyed upon.”
This case was investigated by IRS – Criminal Investigation and the FBI. The case was prosecuted by Assistant U.S. Attorneys Anna K. Edgar and Rebeca Weber.
Leader of Alien Smuggling Ring Gets Three YearsRead the Press Release
Assistant U. S. Attorney Christopher Alexander (619) 546-6665
NEWS RELEASE SUMMARY – May 8, 2017
SAN DIEGO – Issac Mahatma Osuna-Sanchez, the ringleader of an alien smuggling crew, was sentenced in federal court Friday to three years in prison for bringing 14 undocumented immigrants into the United States from Mexico in a small boat off the coast of California.
Osuna-Sanchez and three others - Enrique Ramirez-Fernandez, Mario Alejandro Sainz-Avila, and Hector Velasquez – pleaded guilty in connection with the events of November 4, 2016, when the U.S. Coast Guard encountered and stopped a vessel on the open sea operating at night, without any navigation or running lights. They discovered the smugglers and the undocumented immigrants on board.
At sentencing, U.S. District Judge William Q. Hayes found that Osuna-Sanchez was a manager of the smuggling venture and his conduct created a substantial risk to the immigrants on board the vessel.
U.S. Border Patrol agents identified one of the vessel’s occupants as a citizen of Nicaragua; the remainder were citizens of Mexico. Border Patrol agents arrested all eighteen occupants and transported them to the Imperial Beach Border Patrol Station.
In addition to the smugglers, two of the others who were aboard the vessel - Ernesto Ignacio Madrigal-Garza and Danilo Alberto Mairena - had previously been deported to Mexico from the United States. They were prosecuted for unlawful reentry into the United States by a previously deported alien, in violation of Title 8, U.S.C., Section 1326. Madrigal-Garza’s prior criminal history involved felony convictions for access device fraud and one prior immigration offense. Mairena’s prior criminal history involved numerous misdemeanor and felony convictions involving violent crimes such as battery, assault, and numerous domestic violence related offenses.
The remaining twelve undocumented individuals, not charged as alien smugglers, were held as material witnesses.
Earlier, on April 19, 2017, Judge Hayes sentenced one of the vessel’s pilots, Mario Alejandro Sainz-Avila, to a prison term of 24 months, for his role in smuggling the fourteen undocumented aliens. In addition, Judge Hayes sentenced two others who aided in smuggling the aliens, Enrique Ramirez-Fernandez and Hector Velasquez, to thirteen months and one day.
DEFENDANTS Case Number 16CR2752-WQH
Issac Mahatma Osuna-Sanchez Age: 22 Tijuana, B.C., Mexico
Enrique Ramirez-Fernandez Age: 27 Ensenada, Mexico
Mario Alejandro Sainz-Avila Age: 31 Navolato, Sinaloa, Mexico
Hector Velasquez Age: 22 Navolato, Sinaloa, Mexico
SUMMARY OF SENTENCES
DEFENDANTS SENTENCE
Issac Mahatma Osuna-Sanchez 36 months of custody
Enrique Ramirez-Fernandez 13 months and one day of custody
Mario Alejandro Sainz-Avila 24 months of custody
Hector Velasquez 13 months and one day of custody
SUMMARY OF CHARGES
Attempted Bringing in Undocumented Aliens for Financial Gain and Aiding and Abetting – Title 8, U.S.C., Section 1324(a)(2)(B)(ii), and Title 18, U.S.C., Section 2.
Maximum penalty: 10 years’ imprisonment and $250,000 fine.
Bringing in Undocumented Aliens and Aiding and Abetting – Title 8, U.S.C., Section 1324(a)(1)(A)(i) and (v)(II).
Maximum penalty: 10 years’ imprisonment and $250,000 fine.
AGENCIES
United States Coast Guard
United States Border Patrol
Las Vegas Man Sentenced to over 13 Years in Prison for Conspiracy to Travel for Sex with Minors and Possession of Child PornographyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man, who conspired to travel to Michigan for sex with two minors and who was in possession of approximately 6,000 images of child pornography and approximately 300 videos of child pornography, was sentenced today to 160 months in prison, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Bryon Quackenbush, 43, pleaded guilty to one count each of conspiracy to travel with the intent to engage in illicit sexual contact and possession of child pornography. United States District Judge Kent J. Dawson presided over the sentencing hearing.
According to admissions made in the plea agreement, Quackenbush chatted extensively over the internet with co-defendant Robert Norwood-Charlier, who was under investigation for production, distribution, and possession of child pornography, and co-defendant Ryan Lively about pedophilia and their membership in “Guardians,” a fantasy-universe group that discusses “mind control’ over others. They also shared sexually explicit images and videos of children with each other. During an interview with law enforcement, Quackenbush admitted that he traveled to Kalamazoo, Mich., knowing Norwood-Charlier both produce child pornography and perform sexual acts on children. Furthermore, Quackenbush admitted that he received copies of videos from Norwood-Charlier of children being sexually exploited. During a search warrant of Quackenbush’s residence, law enforcement seized computers and numerous electronic devices. A forensic evaluation found approximately 6,000 images and approximately 300 videos of minors engaged in sexually explicit conduct.
The case was investigated by the FBI and the Internet Crimes Against Children Task Force; and prosecuted by Assistant U.S. Attorney Cristina D. Silva.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Las Vegas Man Pleads Guilty to Investment Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who falsely represented himself to be a successful securities trader and investor pleaded guilty today to stealing monies as part of an investment fraud scheme, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Sean Christopher Sladek, 40, pleaded guilty to one count of wire fraud. United States District Judge Jennifer A. Dorsey scheduled sentencing for Aug. 14, 2017. At the time of sentencing, Sladek faces a maximum of 20 years in prison.
According to the plea agreement, Sladek admitted that he falsely and with intent to defraud represented himself as a successful securities trader and investor. In fact, he was not a successful securities trader or investor. On or about May 9, 2013, he caused and intended to cause a victim in California to transfer $100,000 to him. He told the victim that the monies would generate positive returns through trading, securities transactions, and/or investment in securities. Sladek did not generate positive returns and had no intent to do so.
Furthermore, Sladek agreed to make restitution in the amount of $1,427,923, for losses caused by his criminal investment fraud scheme, and he agreed to pay a criminal forfeiture money judgment in the amount of $2,638,143.
The case is being investigated by the FBI, and prosecuted by Assistant U.S. Attorney Jared Grimmer.
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Las Cruces Man Sentenced to Five Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Benjamin David Romero, 38, of Las Cruces, N.M., was sentenced today in federal court to 60 months in prison for his conviction on methamphetamine trafficking charges. Romero will be on supervised release for four years after completing his prison sentence.
Romero and co-defendant Roque Henry Atencio, 42, also of Las Cruces, were arrested on Feb. 6, 2016, on a criminal complaint charging them with methamphetamine trafficking offenses. According to the complaint, Romero and Atencio sold two bags containing an aggregate of 47.35 grams of pure methamphetamine to undercover law enforcement agents in Doña Ana County, N.M., on April 2, 2015.
Romero and Atencio were indicted on April 21, 2016, and were charged with participating in a conspiracy to distribute methamphetamine and distributing methamphetamine on April 2, 2015. The indictment included forfeiture allegations requiring Romero and Atencio to forfeit $2,000 to the United States.
During today’s sentencing hearing, Romero entered into a plea agreement with the U.S. Attorney’s Office. In entering the guilty plea, Romero pled guilty to the indictment and admitted that on April 2, 2015, he provided approximately 47.35 grams of pure methamphetamine to Atencio, which Atencio subsequently sold to an individual working with law enforcement.
Atencio entered a guilty plea on Oct. 5, 2016, without the benefit of a plea agreement. At sentencing, Atencio faces a statutory minimum penalty of five years and a maximum of 40 years in prison. Atencio remains in custody pending a sentencing hearing, which is currently scheduled for May 22, 2017.
This case was investigated by the Las Cruces office of Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
Justice Department Settles Immigration-Related Discrimination Claim Against Rhode Island-Based Staffing AgencyRead the Press Release
The Justice Department reached a settlement agreement today with Provisional Staffing Solutions (Provisional), a temporary staffing agency located in Cranston, Rhode Island. The agreement resolves the department’s investigation into whether Provisional discriminated against non-U.S. citizens when checking their work authorization documents, in violation of the Immigration and Nationality Act (INA).
The department’s investigation concluded that Provisional routinely requested that non-U.S. citizens present specific identity documents to prove their work authorization, such as a Permanent Resident Card (PRC), while not requesting a specific identity document from U.S. citizens. Lawful permanents residents and other work-authorized non-U.S. citizens often have the same identity and work authorization documents available to them as U.S. citizens, and may choose from among the acceptable documents to prove they are authorized to work. The antidiscrimination provision of the INA prohibits employers from subjecting employees to unnecessary documentary demands based on the employees’ citizenship or national origin.
Under the settlement, Provisional must pay a civil penalty of $16,290 to the United States, post notices informing workers about their rights under the INA’s antidiscrimination provision, train their human resources personnel and be subject to departmental monitoring and reporting requirements.
"The Justice Department cautions employers not to erect discriminatory barriers to employment," said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. "Companies large and small must ensure that their Form I-9 practices comply with federal law. We appreciate Provisional’s cooperation with the Department to address this issue."
The division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status, and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship, immigration status, or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral, should contact IER’s worker hotline for assistance.
Provisional Staffing Solutions Settlement AgreementJustice Department Settles Immigration-Related Discrimination Claim Against RI Staffing AgencyRead the Press Release
WASHINGTON – The Justice Department reached a settlement agreement today with Provisional Staffing Solutions (Provisional), a temporary staffing agency located in Cranston, Rhode Island. The agreement resolves the department’s investigation into whether Provisional discriminated against non-U.S. citizens when checking their work authorization documents, in violation of the Immigration and Nationality Act (INA).
The department’s investigation concluded that Provisional routinely requested that non-U.S. citizens present specific identity documents to prove their work authorization, such as a Permanent Resident Card (PRC), while not requesting a specific identity document from U.S. citizens. Lawful permanents residents and other work-authorized non-U.S. citizens often have the same identity and work authorization documents available to them as U.S. citizens, and may choose from among the acceptable documents to prove they are authorized to work. The antidiscrimination provision of the INA prohibits employers from subjecting employees to unnecessary documentary demands based on the employees’ citizenship or national origin.
Under the settlement, Provisional must pay a civil penalty of $16,290 to the United States, post notices informing workers about their rights under the INA’s antidiscrimination provision, train their human resources personnel and be subject to departmental monitoring and reporting requirements.
“The Justice Department cautions employers not to erect discriminatory barriers to employment,” said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. “Companies large and small must ensure that their Form I-9 practices comply with federal law. We appreciate Provisional’s cooperation with the Department to address this issue.”
The division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status, and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship, immigration status, or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral, should contact IER’s worker hotline for assistance.
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Idaho Man Pleads Guilty to Federal Gun ViolationRead the Press Release
BOISE — Timothy Bojorquez, Jr., 29, of Plainview, Idaho, pleaded guilty today to illegal possession of firearms after being convicted of a misdemeanor crime of domestic violence, Acting U.S. Attorney Rafael Gonzalez announced. Bojorquez was indicted in February by a federal grand in Boise.
According to the plea agreement, between December 9, 2016, and February 9, 2017, Bojorquez illegally possessed five firearms, including two high-powered rifles and three pistols. Bojorquez was prohibited from possessing firearms under federal law because he was previously convicted of inflicting corporal injury to a spouse/cohabitant/parent of child, on January 17, 2007, in the Superior Court of California County of San Joaquin, California. That crime constituted a conviction for a misdemeanor crime of domestic violence under federal law, which prohibited Bojorquez from possessing firearms.
In November 2016, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began investigating Bojorquez’s illegal firearm possession, communicating with him through his Instagram and Facebook accounts about the sale of firearms. On February 9, 2017, ATF agents executed a search warrant at Bojorquez’s residence in Plainview, Idaho, discovering his cache of firearms.
The charge of illegal possession of a firearm after a misdemeanor conviction for domestic violence is punishable by up to ten years in prison, a maximum fine of $250,000 and up to three years of supervised release.
Sentencing will be August 7, 2017, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Boise ATF office. It was brought as part of Project Safe Neighborhoods, a nationwide initiative launched in May 2001 by the Department of Justice to combat gun violence in the United States. Project Safe Neighborhoods marshals federal, state, and local resources to target and prosecute those who commit gun crimes. For more information about Project Safe Neighborhoods, visit https://www.bja.gov.
Fulton Man Pleads Guilty to Child Pornography After Lost Cell Phone Is Turned InRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Fulton, Mo., man pleaded guilty in federal court today to receiving and distributing child pornography after his lost cell phone, which contained images of child pornography, was turned in to law enforcement.
Anthony Quin Hodges, 51, of Fulton, pleaded guilty before U.S. Magistrate Judge William A. Knox to the charge contained in a Feb. 15, 2017, federal indictment.
By pleading guilty today, Hodges admitted that he had been viewing child pornography from a variety of websites for approximately two to three years and storing the images on his Google Photos account. Hodges used his cell phone for searching, maintaining and distributing images of child pornography.
Two Fulton residents turned in the phone, which Hodges said had been lost or stolen, to the Fulton Police Department on Jan. 17, 2017, after they found it abandoned in their driveway. Prior to reporting the incident to law enforcement, the residents powered on the phone to try to identify the owner. Upon trying to locate the owner of the phone, they discovered images child pornography. One of the residents also opened the Facebook icon and observed a Facebook page for Hodges. Investigators obtained a search warrant for the phone and discovered pornographic images of prepubescent children as well as links to apparent child pornography websites.
Hodges also admitted sending unsolicited images of child pornography to an individual. Investigators interviewed the individual who received the text message from Hodges, which contained child pornography. The individual reported he received pornographic images of prepubescent females from Hodges on several occasions. He did not solicit these images, and repeatedly told Hodges to stop sending him child pornography. The individual repeatedly warned Hodges it was illegal to possess child pornography.
Hodges was already under investigation at the time his cell phone was turned in to law enforcement. On October 24, 2016, a Boone County Cyber Crimes Taskforce detective received a CyberTip from the National Center for Missing and Exploited Children. Google had filed a complaint about an account holder, later identified as Hodges, who uploaded images of child pornography to Google Photos. Shortly after Hodges was identified by law enforcement, his cell phone was turned in to the police department.
Under federal statutes, Hodges is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. 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 Ashley S. Turner. It was investigated by the FBI, the Boone County Cyber Crimes Taskforce and the Fulton, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former SEC Employee Pleads Guilty to Making False Statements Designed to Conceal Prohibited TradingRead the Press Release
A former employee of the Securities and Exchange Commission (SEC) pleaded guilty today in federal court in Washington, D.C., to making false statements in government filings in order to conceal his prohibited trading of options and other securities, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Inspector General Carl W. Hoecker of the SEC.
David Humphrey, 60, of Vail, Arizona, pleaded guilty before U.S. District Judge Rosemary Collyer of the District of Columbia in connection with multiple false statements he made on annual Office of Government Ethics Confidential Financial Disclosure Reports (Form 450s), as well as on internal SEC certifications of holdings. Sentencing is set for Aug. 8, 2017.
According to the plea agreement, Humphrey worked for the SEC in Washington, D.C., for 16 years and was a branch chief in the Division of Corporation Finance from 2004 to 2014. Applicable SEC employee ethics regulations prohibited Humphrey from trading options where the underlying interest was a security or group of securities and from purchasing or holding securities in entities the SEC directly regulates, such as financial institutions. In addition, within his role at the SEC, Humphrey was required to pre-clear securities transactions, make certifications that his holdings were in compliance with these regulations, and annually file Form 450s to disclose assets held for investments with a value greater than $1,000 or that produced more than $200 in income at the end of the reporting period.
Humphrey admitted that despite knowing the restrictions on SEC employees’ trading of options, he devised and executed an “options trading strategy” under which he traded options over 100 times from his SEC computer at various times between 2001 and 2014. During this period, in order to conceal his options trading, Humphrey admitted that he signed and submitted multiple Form 450s that failed to disclose reportable assets, including prohibited options. For example, in 2013, Humphrey submitted a false Form 450 that failed to report the sale of reportable options in 2012, and in 2014, he submitted a separate Form 450 that failed to report reportable options sales and investments holdings in 2013. Furthermore, in 2013 and 2014, Humphrey falsely certified that he was in compliance with all applicable SEC regulations relating to prohibited holdings, when in fact Humphrey had traded options in violation of those regulations, he admitted.
The SEC Office of Inspector General investigated the case. Trial Attorney Gary A. Winters of the Criminal Division’s Fraud Section is prosecuting the case.
Former Revenue Officer and Owner of Tax Consulting Business Sentenced to Prison for Tax Evasion and Impeding the Tax LawsRead the Press Release
WASHINGTON — A former Internal Revenue Service (IRS) revenue officer who is a resident of Greensboro, North Carolina, was sentenced to serve 43 months in prison today for tax evasion and corruptly endeavoring to impede the due administration of the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to documents filed with the court, from 1989 through 2014, Henti Lucian Baird operated HL Baird’s Tax Consultants. Baird had previously worked as an IRS revenue officer for 12 years. Although Baird filed tax returns every year, he has not paid taxes since at least 1998. He used his knowledge and experience as a revenue officer to evade paying his own taxes. He hid hundreds of thousands of dollars that he earned from his consulting business in bank accounts that he created in the names of his children and used money orders and cashier’s checks to pay his personal expenses. In response to IRS collection efforts, he submitted a false collection form on which he claimed to have only one bank account and concealed the existence of his nominee accounts. When Baird learned that the IRS had become aware of these accounts and intended to levy them, he withdrew the funds before the IRS could seize them. To stall impending liens and levies and evade paying the taxes he owed, Baird filed, in bad faith, a cash offer in compromise to settle his tax debt, a request to discharge the levies on the nominee accounts and an application to subordinate his federal tax lien. During this time when Baird was refusing to pay over to the IRS the taxes he duly owed, Baird continued to pay the mortgage on his 4,300 square-foot home, annual fees for his timeshare in Florida and car payments on his BMW.
Baird also corruptly endeavored to impede the internal revenue laws by using his stepson’s identity, without his knowledge, to apply for a Preparer Tax Identification Number that Baird used to file over 900 tax returns for clients, as well as his own tax returns. Baird advertised himself to clients as specializing in “IRS problems, delinquent returns, offer-in-compromise, tax problems, delinquent employee taxes and release of liens and levies,” and submitted at least 120 power of attorney forms to the IRS on behalf of clients falsely claiming to be an enrolled agent, even though the IRS revoked his authorization to represent taxpayers in 2009.
“For well over a decade, Lucian Baird abused his prior experience with the IRS to evade paying the taxes he owed and stymie the IRS’s collection efforts, while spending the government’s money on personal luxuries,” said Acting Deputy Assistant Attorney General Goldberg. “Everyone is required to pay their fair share, and those, like Lucian Baird, who make every effort to dodge their legal obligation to pay what they owe, will face significant consequences including jail and monetary penalties.”
“Henti Lucian Baird engaged in an elaborate scheme to hide assets in nominee accounts for the sole purpose of evading the payment of taxes owed to the federal government,” said Acting U. S. Attorney Hairston. “Through the tireless efforts of dedicated prosecutors from the Tax Division and the United States Attorney’s Office, and special agents from the IRS, Baird has been brought to justice for his crimes.”“The criminal actions of Henti Lucian Baird not only cheated the Treasury Department and law-abiding citizens with his tax evasion efforts, he took advantage of family members to perpetrate additional fraud,” said Chief Richard Weber of IRS Criminal Investigation. “This sentence should send a clear message; It doesn’t matter who you are or where you worked, IRS Criminal Investigation, along with their law enforcement counterparts, will work diligently to uncover fraudulent tax schemes and bring you to justice.”
In addition to the term of prison imposed, Baird was ordered to serve one year of supervised release and to pay $573,422.74 in restitution to the IRS. Baird pleaded guilty in October 2016.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Hairston commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Clifton T. Barrett of the Middle District of North Carolina and Trial Attorney Kathryn A. Kimball of the Justice Department’s Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Former Milton Auctioneer Sentenced for Defrauding Investors of $21 MillionRead the Press Release
BOSTON – A well-known auctioneer was sentenced today in federal court in Boston for defrauding more than 90 victims – many of whom were friends, business associates and sophisticated investors – of more than $21 million.
Acting United States Attorney William D. Weinreb said, “Mr. Flynn preyed upon friends and family, taking their hard earned money with promises of high returns. Instead, he violated their trust, and used their investments to perpetuate an elaborate Ponzi scheme, using the money for his own personal expenses including renovations to his Milton home.”
“Through sophisticated financial schemes, Mr. Flynn took advantage of a wide array of victims, cheating them out of millions of dollars,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “This case highlights the FBI's commitment to aggressively following the money, so that financial fraudsters like Flynn - who are motivated by greed - are brought to justice and do not take advantage of the hard working men and women of our communities.”
Daniel J. Flynn III, 54, of Milton, was sentenced by U.S. District Court Senior Judge Rya W. Zobel to four years in prison, three years of supervised release and ordered to pay restitution. In February 2017, Flynn pleaded guilty to nine counts of wire fraud.
Beginning around 2007, Flynn and another individual started a real estate fund called the DJF Real Estate Opportunity Fund (“the Fund”). The fund touted Flynn’s experience in real estate and boasted of an extraordinary rate of return on investments. To convince potential investors that the Fund was solid, Flynn purported to own promissory notes worth millions of dollars and an apartment complex in Quincy. In fact, Flynn fraudulently created the promissory notes and used the Quincy apartment complex to defraud investors.
Specifically, Flynn used the promissory notes to defraud investors by soliciting loans from investors to purchase or invest in a piece of distressed real estate. In return, Flynn gave the investor a promissory note guaranteeing the investor of a 12 to 15 percent return. Although Flynn did make payments to investors, as is typical in a Ponzi scheme, the money came from other victims – not real estate investment profits. In total, Flynn defrauded about 60 individuals and entities of approximately $18.4 million.
In addition, Flynn used the Quincy apartment complex to defraud investors. In 2005, Flynn purchased the property for $995,000. Despite the fact that he already owned the property, Flynn caused the Fund to purchase the apartment complex for approximately $2.2 million. Flynn then convinced some investors to loan him money to develop the units and convinced other investors to loan him money to purchase the property – despite the fact that he already owned it – and promised a 12 to 15 percent profit in return. Flynn never repaid the investors.
Lastly, acting as a real estate broker, Flynn sold two properties in Dorchester generating $451,000 in profits, but never returned the proceeds to the property owner. The property owner later died due to heart failure, but family members recalled that the victim and Flynn were involved in a heated argument about the money.
Acting U.S. Attorney Weinreb and FBI SAC Shaw made the announcement today. Assistant U.S. Attorney Neil J. Gallagher Jr. of Weinreb’s Economic Crimes Unit prosecuted the case.