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Thursday 4 May 2017
Navajo Man from McKinley County Pleads Guilty to Assaulting a ChildRead the Press Release
ALBUQUERQUE – Richard Martinez, 38, an enrolled member of the Navajo Nation who resides in Ojo Encino, N.M., pled guilty today in federal court in Albuquerque, N.M., to federal child abuse charges. The plea agreement recommends that Martinez be sentenced to five years of imprisonment followed by a term of supervised release to be determined by the court.
Martinez was arrested in Aug. 2016, on an indictment charging him with two counts of child abuse resulting in great bodily harm on Dec. 24, 2014, on the Navajo Indian Reservation in McKinley County, N.M.
During today’s proceedings, Martinez pled guilty to an information charging him with two counts of assault resulting in substantial bodily injury. In entering the guilty plea, Martinez admitted that on Dec. 24, 2014, he assaulted the victim who was under the age of 16 years by twisting and pulling the victim’s left leg and left arm causing the victim to suffer fractures to his shoulder and left leg. A sentencing hearing has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and is being prosecuted by Assistant U.S. Attorney Sarah Mease and Nicholas J. Marshall.
Morrisville Man Charged with Reentry After DeportationRead the Press Release
Jose Chaves-Leiva, a/k/a “Jose Amando Chaves,” of Morrisville, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about April 3, 2017, Chaves-Leiva, an alien, and native and citizen of Costa Rica, was found in the United States after having been deported from the United States on or about April 28, 2008, July 9, 2008, January 14, 2009, and March 26, 2009.
If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Terri Marinari.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Monsignor Pleads Guilty to Wire Fraud ChargesRead the Press Release
PHILADELPHIA – William Dombrow, of Darby, PA, pled guilty to four counts of wire fraud, announced Acting United States Attorney Louis D. Lappen. Dombrow, a Monsignor in the Archdiocese who is currently on administrative leave, is charged with fraudulently diverting more than $535,000 in Archdiocese funds for his own personal use.
Dombrow resided at the Villa Saint Joseph Retirement home in Darby, PA, which also served as home to a number of retired priests. In his position as Monsignor, Dombrow had sole access to a Villa Saint Joseph bank account at Sharon Savings Bank, which was funded by gifts from wills and life insurance proceeds that were intended for the Archdiocese. Today Dombrow admitted that from December 2007 through May 2016 he withdrew, or caused to be withdrawn, and fraudulently misappropriated approximately $535,258.11 in fraudulently obtained funds from the bank account that he controlled at Sharon Savings Bank, and spent the funds at casinos in Chester, the Poconos, and Aruba, as well as funding a lavish lifestyle for himself.
Sentencing has been set for August 15, 2017 before the Honorable Jeffrey Schmehl, Eastern District of Pennsylvania. Dombrow faces a maximum of 80 years’ imprisonment for all four counts of wire fraud, $1,000,000 in fines, 5 years of supervised release, a $400 special assessment, and mandatory restitution. Dombrow is 77 years of age.
This case was investigated by the FBI in conjunction with the Darby Police Department. It is being prosecuted by Assistant United States Attorney Michelle Rotella.
Momentive Performance Materials to pay $1.25 million for violating federal and state environmental laws in Waterford, New YorkRead the Press Release
ALBANY, NEW YORK - Momentive Performance Materials Silicones, LLC (“MPM”) has agreed to pay a $1.25 million civil penalty to resolve a complaint alleging violations of federal and state environmental laws in connection with MPM’s use of an incinerator at a manufacturing facility that it owns and operates in Waterford, New York, announced the United States Attorney’s Office for the Northern District of New York, the Department of Justice, the Environmental Protection Agency (“EPA”), the New York State Attorney General’s Office, and the New York State Department of Environmental Conservation (“DEC”). Both the complaint and the settlement agreement were filed in United States District Court in Albany.
The allegations in the civil complaint, which is docketed as United States of America and the State of New York v. Momentive Performance Materials Silicones, LLC, Civil No 1:17-CV-470, include the following:
MPM purchased a manufacturing facility in Waterford, New York in 2006 from the General Electric Company (GE), and continues to operate it to this day. At the time of the purchase of the facility, a rotary kiln incinerator, which had been operated by GE for more than 25 years, was part of the manufacturing process. MPM manufactures various products at the facility, including sealants made of silicone. The silicone manufacturing process generates hazardous waste. MPM sought and received permits from DEC to dispose of the hazardous waste onsite, subject to compliance with the Clean Air Act (CAA) and the Resource Conservation and Recovery Act (RCRA). MPM disposed of hazardous waste in the incinerator that included an automatic waste feed cut-off system designed to shut down the incinerator if MPM deviated from operating parameters designed to ensure compliance with the CAA and RCRA. Unbeknownst to federal and state authorities, MPM used a computer program to override the incinerator’s automatic waste feed cut-off system, allowing MPM to continue to burn hazardous waste in the incinerator in violation of its CAA and RCRA permits. On at least 4,213 occasions during the period of December 4, 2006 until December 31, 2008, MPM employees manually overrode the automatic waste feed cut-off system, thereby potentially exposing the public and the environment to harmful hazardous air pollutants, such as carbon monoxide, dioxins, and furans. Though its employees were violating federal and state law, MPM submitted, for the calendar years 2006 and 2007, compliance reports to the United States and the State of New York falsely attesting to compliance with RCRA, the CAA, and permits issued pursuant to those statutes. During its ownership and operation of the facility from the 1940s to 2006, GE committed similar violations, and in 2015 paid a $2.25 million civil penalty to resolve a civil complaint alleging that its employees also improperly overrode the incinerator’s automatic waste feed cut-off system while feeding hazardous waste into it.
MPM disclosed the extent to which its employees were improperly overriding the incinerator’s automatic waste feed cut-off system. Throughout the investigation, MPM also cooperated fully with the United States. In addition, MPM implemented new calibration procedures and modified equipment to address the issue. In light of its disclosure and subsequent cooperation, a civil penalty of $1.25 million was deemed appropriate.
“This settlement emphasizes that companies must adhere to mandated air pollution controls when disposing of hazardous wastes. Improper overrides threaten all of us with unnecessary exposure to harm”, said First Assistant United States Attorney Grant C. Jaquith. Jaquith commended EPA, DEC, the NYS Attorney General’s Office, and DOJ’s Environmental Enforcement Section for their contributions to this investigation.
This case was investigated by EPA and DEC, and is being handled by Assistant United States Attorneys Thomas Spina Jr. and Adam J. Katz, New York State Assistant Attorneys General Maureen F. Leary and James C. Woods, an attorney from the Department of Justice’s Environmental Enforcement Section, and assistant regional counsel from EPA’s office in New York City.
Mexican Nationals Arrested on Federal Counterfeit Trafficking ChargesRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney and Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Texas, announced federal charges against two Mexican nationals for allegedly operating a counterfeit airbag business out of their residence in Albuquerque, N.M. Dina Gonzalez-Marquez, 23, and Emilio Gonzalez-Marquez, 21, both of whom are illegally present in the United States, were arrested yesterday and made their initial appearances today in federal court on a three-count indictment charging them with trafficking in counterfeit goods.
The indictment charges the siblings with conspiring to traffic in counterfeit goods and two counts of trafficking in counterfeit goods. According to the indictment, Dina Gonzalez-Marquez and Emilio Gonzalez-Marquez conspired to traffic in counterfeit goods from Jan. 2015 to March 2017, by operating a business that sold counterfeit airbag modules and airbag covers out of their Albuquerque residence. They allegedly facilitated the conspiracy by listing and selling counterfeit airbag modules and airbag covers online, shipping the counterfeit goods to purchasers, and conducting in person sales of the counterfeit goods. The indictment alleges that undercover HSI Special Agents purchased counterfeit goods from the defendants on two occasions. Specifically it alleges that one Special Agent purchased a counterfeit airbag from the defendants in Aug. 2016, and another Special Agent purchased a counterfeit airbag cover from them in March 1, 2017.
Dina Gonzalez-Marquez and Emilio Gonzalez-Marquez remain in federal custody pending arraignment and detention hearings, which are scheduled for May 5, 2017.
If convicted on the charges in the indictment, Dina Gonzalez-Marquez and Emilio Gonzalez-Marquez each face a statutory maximum penalty of ten years in prison and a maximum fine of $2 million. Charges in indictments are merely accusations, and all criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of HSI, and is being prosecuted by Assistant U.S. Attorneys Brandon L. Fyffe and Nicholas Jon Ganjei.
Kennett Square Man Charged with Illegal Re-entry After DeportationRead the Press Release
Miguel Zavala-Lopez, of Kennett Square, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about April 7, 2017, Zavala-Lopez, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about October 15, 2002, May 2, 2007, and April 17, 2008.
If convicted the defendant faces a maximum possible sentence of two years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Laurie Magid.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Jury Finds Truck Driver Guilty Following Largest Seizure of Methamphetamine in Arkansas HistoryRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, Matthew Barden, Assistant Special Agent in Charge, Drug Enforcement Administration (DEA), Little Rock District Office, and Colonel William J. Bryant, Director of the Arkansas State Police, announced today that a federal jury found Javier Leon, 56, of Moreno Valley, Calif., guilty of possessing with the intent to distribute methamphetamine in a case that involved the largest amount of methamphetamine ever seized in Arkansas. Law enforcement located more than 260 pounds of methamphetamine—worth millions of dollars—in the back of Leon’s tractor-trailer while he was traveling through Lonoke in 2015.
United States District Judge James M. Moody, Jr., presided over the four-day trial, which concluded Thursday with the jury verdict. Leon will be sentenced by Judge Moody at a later date.
"This seizure had enough methamphetamine to supply every man, woman, and child in Little Rock," Harris said. "Thanks to the efforts of several law enforcement agencies and agents, this significant amount of methamphetamine will never hit the streets, and never poison our communities. This jury verdict makes clear that whatever level of involvement you have with this drug—as a seller, user, or courier—there will be justice served and punishment delivered."
Testimony during the trial established that the 260 pounds of methamphetamine, broken into user quantities, could have had more than 300,000 individual user amounts, with a potential street value of $7-$8 million.
Leon owned his own 18-wheel tractor-trailer and drove for California furniture shipping company American West. On March 30, 2015, while heading east on Interstate 40, Leon pulled over and parked illegally on an exit ramp in Lonoke. Now-retired Arkansas State Police Corporal Olen Craig made contact with Leon, and the state police then searched the trailer after a drug-detection dog indicated narcotics were present.
Arkansas State Police Corporal Chase Melder located the methamphetamine, which included more than 22 pounds of powder methamphetamine and more than 240 pounds of liquid methamphetamine, amongst a load of furniture destined for Alabama and the Atlanta area. The liquid methamphetamine was contained in multiple five-gallon plastic jugs, similar to the type of jugs used with water coolers.
"Stopping drug traffickers traveling across Arkansas highways is a priority for state troopers, particularly the department’s criminal interdiction unit," Bryant said. "This case represents a major victory in stopping illegal drugs from getting to a destination and our troopers are committed to staying in the fight."
The DEA became involved in the case following the seizure and continued to investigate Leon. In addition to the guilty verdict, the jury found that the 18-wheel tractor-trailer is to be forfeited.
"The federal conviction of Javier Leon sends a strong message to criminals that we take methamphetamine trafficking very seriously in the Eastern District of Arkansas," Barden said. "The DEA will continue working with our law enforcement partners and pursue those who threaten our communities with the distribution of methamphetamine and other illegal and dangerous drugs."
The statutory penalty for possession with intent to distribute more than 500 grams of methamphetamine is not less than 10 years’ imprisonment, not more than life, a $10,000,000 fine, or both.
The investigation was conducted by the DEA, Arkansas State Police, Little Rock Police Department, and Lonoke County Sheriff’s Office. The case was prosecuted by Assistant United States Attorneys Chris Givens and Michael Gordon.
Jamaican Man Sentenced for Conspiracy to Commit FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Corey Buddle, 25, of Brooklyn, NY, who was convicted of conspiracy to commit mail and wire fraud, was sentenced to 60 months by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that the defendant, along with co-conspirators from Jamaica, defrauded elderly individuals residing in the United States by leading the victims to believe they won cash prizes of more than $1,000,000 and, in at least one case, a Mercedes Benz automobile. The victims were told they must pay “taxes” and other administrative expenses in order to collect their “prizes.”
One victim, an elderly man from the Rochester, NY area, was told numerous times in phone calls to send packages of cash to the defendant’s address in Brooklyn, NY. As a result, between May 20 and July 18, 2011, he sent a total of $130,000 in 16 packages via UPS and the U.S. Mail to Buddle.Another victim, an elderly resident of Missouri, was directed to deposit money into Buddle’s accounts at Bank of America. As a result, she made 26 deposits adding up to approximately $140,000 into Buddle’s accounts from July 11, 2012, through April 4, 2013. After April 4, 2013, the victim from Missouri was directed to send cash to the defendant’s residence, which she did by sending more than $50,000 in 10 different packages sent via UPS and Federal Express. Some of the money deposited into Buddle’s Bank of America accounts was withdrawn in Jamaica.
A third elderly victim, who lives in Florida, lost $37,000 by wiring the money into Buddle’s bank accounts in nine separate transfers between August 2, 2012, and April 4, 2013. This victim received a letter in April 2012 purporting to be from the FBI and the Department of Homeland Security, telling him he was $25,000 in arrears on his taxes. None of the victims received anything as a result of their “winnings.”Buddle victimized a total of eleven (11) individuals out of approximately $428,000.
Co-defendant and Corey Buddle’s father, Horace, was also convicted and sentenced to one-year home incarceration for his role in the fraud scheme.
Today’s sentencing is the result of an investigation on the part of the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division; and Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly.
Inmate Charged with Failing to Report to Halfway HouseRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dyckman Martinez, age 34, previously of York, Pennsylvania, was indicted on May 3, 2017, by a federal grand jury for failing to appear at a halfway house in Harrisburg for service of his sentence.
According to United States Attorney Bruce D. Brandler, the indictment alleges that in July 2014, Martinez was furloughed from the Federal Correctional Institution in Ottisville, New York, and instructed to report to the Residential Re-Entry Center at Capitol Pavilion in Harrisburg, Pennsylvania to complete his sentence. Martinez failed to appear at the residential center. As a result, federal authorities issued a warrant for his arrest.
In September 2014, Martinez was arrested in New York City on drug related charges. New York officials prosecuted Martinez and sentenced him for the crimes he committed while on escape. Martinez has remained in prison since serving a sentence.
In 2010, Martinez was convicted in the Middle District of Pennsylvania for crack cocaine trafficking in York, Pennsylvania. He was sentenced U.S. District Court Judge H. Sylvia Rambo to 70 months’ imprisonment for that offense.
The case was investigated by the U.S. Marshal Service. Assistant U.S. Attorney Michael Consiglio is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is five years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Independence Man Sentenced for Altercation with Federal OfficersRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was sentenced in federal court today for engaging in an altercation with federal law enforcement officers.
Jermaine Arrington, 33, of Independence, was sentenced by U.S. District Judge Brian C. Wimes to five years and 11 months in federal prison without parole for impeding or obstructing an officer. The court also sentenced Arrington to a consecutive two years in prison for violating his supervised release, for a total of seven years and 11 months in federal prison without parole.
Arrington pleaded guilty on Nov. 17, 2016. Arrington admitted that, while in custody, he lunged at a deputy marshal. Arrington was tackled by two deputies and taken to the ground. A deputy suffered injuries during the altercation, including a broken thumb.
Arrington was arrested on Jan. 8, 2016, for violating his supervised release after serving a six-year sentence in federal prison for being a felon in possession of a firearm. Upon arrival at the U.S. Marshals’ detention facility, Arrington’s handcuffs were removed so that he could be searched. Immediately after the handcuffs were removed, Arrington reached inside his shoe and grabbed a clear baggy containing marijuana. He stuffed the baggy into his mouth, began chewing it, and began yelling, “what now?” A deputy directed Arrington to spit the item from his mouth into the trash.
According to court documents, Arrington took a few steps towards the trash and then lunged at the deputy, while clinching his fist. Two deputies took Arrington to the ground, attempting to handcuff him, but he refused to release his hands from under his chest. One deputy struck Arrington in the side with his knee, while the second deputy attempted to remove Arrington’s arms from under his chest area. A third deputy arrived with handcuffs and, after a brief struggle, Arrington was handcuffed and leg restraints applied.
According to court documents, Arrington’s prior convictions include two misdemeanor convictions for aggravated assault, which involved assaulting an officer, and three misdemeanor convictions for simple assault. In addition, there are multiple occasions on record when Arrington resisted arrest, assaulted or hindered law enforcement officers performing their duties. During his arrest in the federal case for which he was under supervised release, Arrington ran from police officers and continued to resist arrest after being tased.
This case was prosecuted by Assistant U.S. Attorney Bruce E. Clark. It was investigated by the U.S. Marshal’s Service.
Hialeah Police Department Officer Pleads Guilty to Corruption and Identity Fraud ChargesRead the Press Release
Hialeah Police Department Officer Raul Castellon pled guilty today to corruption and identify fraud charges.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), and Peter Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, made the announcement.
Raul Castellon, 38, of the Hialeah Police Department, pled guilty to affecting commerce by extortion under color of official right, in violation of Title 18, United States Code, Section 1951(a), punishable by up to twenty years in prison. He also pled guilty to conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029(b)(2), aggravated identity theft, in violation of Title 18, United States Code, Section 1028A, and possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3). Castellon is scheduled to be sentenced before U.S. District Judge Moreno on July 18, at 10:45 a.m. in Miami.
According to the court record, including the agreed upon factual proffer, as an officer for the Hialeah Police Department and as part of his regular duties, Castellon had access to Florida’s Driver and Vehicle Information Database (“DAVID”). DAVID is a confidential database that provides law enforcement officers with the driver and motor vehicle information of other persons, including personal identifying information, such as drivers’ license numbers, social security numbers, and dates of birth.
From on or about June 1, 2016, and continuing through on or about October 19, 2016, Castellon used his law enforcement access to DAVID to log into the system, search for other persons, and take screen shots of other persons’ personal identifying information. Castellon sent over 25 of these DAVID screen shots to his codefendant Neilin Gonzalez Diaz in exchange for gifts.
Mr. Greenberg commended the investigative efforts of the FBI, including the Miami Area Corruption Task Force, ATF, Miami-Dade Police Department, and Hialeah Police Department. This case is being prosecuted by Assistant U.S. Attorneys Daniel Cervantes and Elina Rubin-Smith.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida atwww.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Harrison County man indicted for illegal possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Clarksburg, West Virginia man was arraigned today in federal court, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Casey Love, age 28, was indicted by a grand jury sitting in Elkins on April 18, 2017, for one count of “Unlawful Possession of a Firearm.” Love, having previously been convicted of second degree robbery in Harrison County Circuit Court and being a known user and addict of controlled substances, was alleged to have in his possession a 9mm pistol in Harrison County in November 2016.
Love faces up to ten years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bridgeport Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Guatemalan National Sentenced for Illegal ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that RUDY OTONIEL AZANON-RODAS, age 50, a citizen of Guatemala, was sentenced today after previously pleading guilty to a one-count Bill of Information for reentry of a removed alien.
U.S. District Judge Nannette Jolivette Brown sentenced AZANON-RODAS to 8 months imprisonment and a $100 special assessment. Following completion of his sentenced, AZANON-RODAS will be surrendered to the custody of the Immigration and Customs Enforcement for removal proceedings.
According to court documents, on or about December 29, 2016, AZANON RODAS was found in the United States after having been officially deported and removed on or about May 2, 1986.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement and the Office of Enforcement and Removal Operations Investigations in investigating this matter. Assistant U.S. Attorney Irene Gonzalez was in charge of the prosecution.
Gretna Woman Sentenced for Theft of Federal FundsRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DANIELLE RANDALL, 42, of Gretna, was sentenced today after previously pleading guilty to theft of federal funds.
U.S. District Judge Carl J. Barbier sentenced RANDALL to 15 months imprisonment followed by three years supervised release, and $100 special assessment. RANDALL was also ordered to pay full restitution to the Federal Emergency Management Agency (FEMA) in the amount of $10,953.
According to court documents, on or about August 29, 2012, Hurricane Isaac struck southeastern Louisiana and shortly thereafter, the Federal Emergency Management Agency (“FEMA”) declared a major disaster in parts of southeastern Louisiana, including the Eastern District of Louisiana. To assist individuals in coping with damage to their personal property and primary residences, FEMA established an application process for temporary disaster assistance. RANDALL submitted an application for Disaster Assistance for damage to her apartment and personal property. After she received an initial disbursement of approximately $3,000, RANDALL continued to apply for housing assistance while falsely representing her rental address and housing expenses. In total, RANDALL’s false submissions to FEMA allowed her received four U.S. Treasury checks totaling $10,953 to which she was not entitled.
Acting U.S. Attorney Evans praised the work of the Department of Homeland Security, Office of Inspector General in investigating this matter. Assistant U.S. Attorney Sharan E. Lieberman was in charge of the prosecution.
Grand Jury Indicts Sterling Man on Child Pornography ChargesRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging a Sterling man with receipt and possession of child pornography.
According to court records and allegations in the indictment, Anoushiravan Dadgar, 33, used a computer to receive photos and videos of minors engaging in sexually explicit conduct. Some of the videos Dadgar possessed depicted minors who appeared to be less than 10 years old and other prepubescent minors engaging in sexually explicit conduct.
Dadagar faces a mandatory minimum of five years in prison and a maximum penalty of 20 years in prison if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after the indictment was returned. Assistant U.S. Attorneys Nathaniel Smith III and Maya D. Song are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-100.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Four Chinese Nationals Arrested and Charged in Connection with College Admissions Exam ScamRead the Press Release
BOSTON – Yue Wang, 25, Shikun Zhang, 24, Leyi Huang, 21, and Xiaomeng Cheng, 21, all in the United States on F-1 non-immigrant student visas, were arrested today on charges of conspiracies to defraud the United States.
The conspiracies involved Wang, a current student at the Hult International Business School in Cambridge, Mass., agreeing to sit for the TOEFL exam in the place of Zhang, Huang, and Cheng. The TOEFL exam is an English language test recognized by more than 9,000 colleges, universities, and agencies in more than 130 countries. It is also used by the United States government in issuing, extending, or renewing F-1 student visas.
After Wang took the TOEFL exam in her co-conspirators places, her scores were allegedly used by the co-conspirators to apply for admission to various universities in the United States. Zhang used this fraudulently acquired TOEFL score to gain admission to Northeastern University in Boston, Mass.; Huang fraudulently used the TOEFL score to gain admission to Penn State University in Erie, Pa.; and Cheng used the fraudulently acquired TOEFL score to gain admission to Arizona State University. In each case, the United States Department of State issued the student an F-1 non-immigrant student visa based on their admittance to these educational institutions.
“Illegal schemes to circumvent the TOEFL exam jeopardize both academic integrity and our country’s student visa program,” said William B. Weinreb, Acting U.S Attorney. “The TOEFL exam ensures that international students have adequate English language skills to succeed in higher education programs in the United States. It also helps maintain the security of our borders and immigration system. By effectively purchasing passing scores, they violated the rules and regulations of the exam, taking spots at US colleges and universities that could have gone to others.”
“These schemes not only undermine the integrity of the academic institutions, they also undermine our nation’s immigration system,” said Matthew Etre, Special Agent in Charge of HSI in Boston. “HSI will continue to protect the nation’s immigration system by working with our federal law enforcement partners and our partners in academia to ensure that those involved in these scams are held accountable.”
The charge of conspiracy to defraud the United States provides for a sentence of no greater than 5 years in prison, up to three years of supervised release and a fine of $250,000. The defendants are subject to deportation after conviction and serving any sentence imposed. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of the Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit is prosecuting the case.
Former Tennessee Sheriff Sentenced on Federal Corruption ChargesRead the Press Release
A former Rutherford County Sheriff was sentenced today to 50 months in prison for operating a private electronic cigarette company in the county jail for personal gain and the concealment and misrepresentation of their involvement with the business, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
Robert F. Arnold, 41, of Murfreesboro, Tennessee, was sentenced today by Senior U.S. District Judge Marvin E. Aspen of the Northern District of Illinois (sitting by designation in the Middle District of Tennessee) who also ordered Arnold to pay $52,500 in restitution and to forfeit $66,790, an amount equal to all proceeds he received from sales at the Rutherford County jail. Arnold previously pleaded guilty on Jan. 30, 2017 before Chief U.S. District Judge Kevin H. Sharp of the Middle District of Tennessee.
According to his plea, Arnold admitted to using his official position as Sheriff of Rutherford County to benefit JailCigs by allowing the company’s electronic cigarettes to come into the Rutherford County jail as non-contraband and be distributed by county employees; taking steps to disguise their involvement in the company; and misrepresenting the benefits that Rutherford County was supposedly receiving from JailCigs. Additionally, Arnold admitted that he personally received over $66,000 from the company, and that he lied about his income from – and knowledge of – JailCigs when he was confronted by local media in April 2015.
Co-defendants former Chief Administrative Deputy Joe L. Russell II, of Rutherford County, Tennessee, and John Vanderveer, of Marietta, Georgia, pleaded guilty on Jan. 20, 2017, and Jan. 30, 2017, respectively. Vanderveer is set to be sentenced on Sept. 6, 2017, and Russell is set to be sentenced on Sept. 8, 2017.
The FBI and Tennessee Bureau of Investigation investigated the case. Trial Attorney Mark J. Cipolletti of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Cecil W. VanDevender of the Middle District of Tennessee prosecuted the case.
Former Rutherford County Sheriff Sentenced on Federal Corruption ChargesRead the Press Release
Former Rutherford County Sheriff Robert Arnold, 41, of Murfreesboro, Tenn., was sentenced today to 50 months in prison, followed by 3 years of supervised release, after pleading guilty earlier this year to fraud and corruption charges, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.
Arnold was indicted in May 2016 and in January 2017, he pleaded guilty to wire fraud, honest services fraud and extortion under color of official right. These charges resulted from an investigation into his role in the formation and operation of the electronic cigarette company, JailCigs, LLC. In his plea, Arnold admitted to using his official position as Sheriff of Rutherford County to benefit JailCigs by allowing the company’s electronic cigarettes to come into the Rutherford County jail as non-contraband and be distributed by county employees; taking steps to disguise his involvement in the company; and misrepresenting the benefits that Rutherford County was supposedly receiving from JailCigs. Additionally, Arnold admitted that he personally received over $66,000 from the company, and that he lied about his income from, and knowledge of, JailCigs when he was confronted by local media in April 2015.
In addition to his prison sentence, Senior U.S. District Judge Marvin E. Aspen of the Northern District of Illinois (sitting by designation in the Middle District of Tennessee) ordered Arnold to pay $52,500 in restitution to Rutherford County and to forfeit $66,790, an amount equal to the commission payments he received from sales at the Rutherford County jail, plus the additional payments Arnold obtained that should have been paid to the county general fund. Judge Aspen also ordered Arnold to serve a three-year term of supervised release following his prison sentence.
Co-defendants, former Chief Administrative Deputy Joe L. Russell II, of Rutherford County, Tennessee, and John Vanderveer, of Marietta, Georgia, pleaded guilty on Jan. 20 and Jan. 30, respectively. Vanderveer is set to be sentenced on September 6, 2017 and Russell is set to be sentenced on September 8, 2017.
This case was prosecuted by Assistant U.S. Attorney Cecil W. VanDevender, of the Middle District of Tennessee and Trial Attorney Mark J. Cipolletti of the Criminal Division’s Public Integrity Section. The case was investigated by special agents from the FBI and Tennessee Bureau of Investigation.
Former Regions Bank Executive Agrees to Plead Guilty in $5 Million Bribery and Wire Fraud SchemeRead the Press Release
BIRMINGHAM – A former senior vice president at Regions Bank has agreed to plead guilty to conspiracy charges in a $5 million bribery and wire fraud scheme, announced Acting U.S. Attorney Robert O. Posey and FBI Special Agent in Charge Roger C. Stanton.
The U.S. Attorney’s Office on Wednesday filed a plea agreement in U.S. District Court with PHILIP HENRY COOPER, 67, of Birmingham. As part of the agreement, Cooper pledges to plead guilty to conspiracy to solicit and accept bribes for steering Regions’ business to a company established by a co-conspirator, and to conspiracy to launder the millions of dollars the conspirators received as part of the scheme.
Along with his two co-conspirators, Cooper agrees to repay Regions $5.1 million, according to the plea agreement. Cooper also agreed to forfeit approximately $1.5 million he received from the scheme.
Cooper was indicted last year along with Richard Alan Henderson, 57, of Hoover, on conspiracy, bank bribery, wire fraud affecting a financial institution and money laundering charges. Henderson, who also was a senior vice president at Regions, is scheduled for trial on those charges in June.
A third conspirator in the case, Jesse Stewart Ellis, 56, of Hoover, pleaded guilty last year to conspiracy to commit bank bribery and wire fraud, and money laundering conspiracy. He is scheduled for sentencing June 26.
Henderson and Cooper served as senior officers of Regions Bank. Through a wholly-owned subsidiary, Regions Equipment Financing Company, Regions Bank offered business customers various financing tools, including equipment financing and lease options. Henderson was first assigned to be finance manager of REFCO and was later promoted by Regions Bank to REFCO’s chief administrative officer. Cooper worked for Regions Bank as REFCO’s asset manager.
According to Cooper’s plea agreement, he and Henderson recruited Ellis to establish a company that would enter an agreement with REFCO to provide residual value insurance, a type of insurance designed to manage asset value risk and provide favorable accounting treatment on leases for Regions Bank. Ellis had no experience providing residual value insurance. The defendants directed REFCO’s residual value insurance business to Ellis’ new company, and Ellis, in return, split the money paid to him with Henderson and Cooper, according to the charges and Cooper’s plea agreement. Cooper and Henderson concealed from Regions that they were receiving money as a result of directing residual value insurance business to the company Ellis established.
Between Sept. 2010 and Nov. 2015, REFCO paid Ellis’ company, Residual Assurance Inc., about $5.1 million. Henderson received about $1.8 million as a result of the scheme and Cooper received about $1.5 million, according to Cooper’s plea agreement.
In 2014, after initially receiving his share of the bribery money in cash, Cooper established a company named Capital Equipment Appraisal Service to receive his payments, according to the plea agreement. After May 2014, Ellis deposited most of Cooper’s share of the bribery payments into a Wells Fargo Bank account Cooper opened for that company. Cooper also had a part of his share of the money deposited into an account at Merrill Lynch, according to the plea agreement.
The maximum penalty for conspiracy is five years in prison and a $250,000 fine. The maximum penalty for money laundering conspiracy is 20 years in prison and a fine of $500,000 or twice the value of the property involved in the transaction, whichever is greater. As part of the plea agreement, the government recommends a five-year prison sentence for Cooper.
The FBI investigated the case, which Assistant U.S. Attorneys George A. Martin Jr., Henry B. Cornelius, and John B. Ward are prosecuting.
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Former Orleans Criminal District Court Employee Sentenced for Role in Bail Bonds FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that PATRICIA TATE, age 52, of New Orleans, was sentenced today after previously pleading guilty today to a one-count Bill of Information charging her with conspiracy to commit honest services mail fraud.
U.S. District Judge Lance M. Africk sentenced TATE to three years probation, including 100 hours of unpaid community service, and a $100 special assessment.
According to court documents, TATE was employed by the Clerk of Orleans Parish Criminal District Court’s Office (“Clerk’s Office”) from 1993 through August 15, 2014, as a deputy clerk assigned to a division known as the Magistrate Clerk’s Office. During her employment as a deputy clerk, TATE became was aware that Rufus Johnson was operating as a bail bondsman out of an office located at 538 S. Broad Street in New Orleans without having the required license, and therefore could not legally run a bail bond business. TATE accepted cash payments from Johnson in exchange for facilitating the operation of Johnson’s illegal bail bonding business. TATE’s activities included accessing official-use criminal justice records, delivering pre-certified bail bonds to the bail business, and other activities to assist the business outside the scope of her official duties.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter, and the assistance of the Metropolitan Crime Commission, the New Orleans Police Department, and the Orleans Parish District Attorney’s Office. Assistant U.S. Attorneys Michael B. Redmann and Mark A. Miller were in charge of the initial prosecution. Jordan Ginsberg, Harry W. McSherry, and Brittany Reed were in charge of sentencing-related proceedings and the trial of Rufus Johnson.
Former NHL Player Sentenced for Oxycodone ConspiracyRead the Press Release
BOSTON – A former NHL player was sentenced in federal court in Boston today for an oxycodone conspiracy.
Kevin Stevens, 52, of Weymouth, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to three years of probation and ordered to pay a fine of $10,000. In December 2016, Stevens pleaded guilty to conspiracy to possess with intent to distribute and to distribute oxycodone. Co-defendant Christopher Alonardo pleaded guilty to the same charge as well as possession with intent to distribute oxycodone. He is scheduled to be sentenced on May 16, 2017.
From approximately August 2015 through March 2016 Stevens and Alonardo conspired to distribute oxycodone in southeastern Massachusetts and the Boston area. Stevens supplied wholesale quantities of oxycodone to Alonardo who resold the drugs. On Nov. 5, 2015, Stevens was stopped by the Massachusetts State Police and was found in possession of 175 30mg pills of oxycodone that were intended for redistribution.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The Internal Revenue Service’s Criminal Investigation, the Massachusetts Department of Correction, and the Boston, Medford and Quincy Police Departments provided assistance with the investigation. Assistant U.S. Attorney Timothy E. Moran of Weinreb’s Organized Crime and Gang Unit prosecuted the case.
Former Minister of Mines for the Republic of Guinea Convicted of Receiving and Laundering $8.5 Million in Bribes from Chinese CompaniesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Kenneth A. Blanco, the Acting Assistant Attorney General of the Department of Justice’s Criminal Division, announced that MAHMOUD THIAM was convicted in Manhattan federal court yesterday of money laundering charges stemming from his scheme to launder $8.5 million in bribes that THIAM received from senior representatives of a Chinese conglomerate. THIAM was charged with using his official position as Minister of Mines for the Republic of Guinea to facilitate the award to the Chinese conglomerate of exclusive and highly valuable investment rights in various sectors of the Guinean economy. THIAM was convicted after a seven-day trial before U.S. District Judge Denise L. Cote.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As a New York federal jury has now found, Thiam abused his official government position to enrich himself at the expense of one of Africa’s poorest countries. Thiam laundered the proceeds of his bribery scheme into the United States to fund his lavish lifestyle, buying a multi-million dollar estate in Dutchess County, and paying for private schools for his children. Thanks to the work of the FBI, Thiam’s scheme was exposed and he was swiftly convicted.”
Acting Assistant Attorney General Kenneth A. Blanco said: “As a high-level Minister in Guinea, Thiam sold out his country and then used U.S. banks and real estate to hide millions in bribes paid to him by a Chinese conglomerate. Corruption is a global disease that undermines the rule of law everywhere. The Justice Department is committed to investigating and prosecuting those who commit these crimes and use the U.S. financial system and free marketplace to conceal and benefit from their crimes.”
According to the Indictment, other filings in Manhattan federal court, and the evidence admitted at trial:
THIAM, a United States citizen who was Minister of Mines and Geology of the Republic of Guinea in 2009 and 2010, engaged in a scheme to accept bribes from senior representatives of a Chinese conglomerate and to launder that money into the United States and elsewhere. In exchange for these multimillion-dollar bribe payments, THIAM used his position as Minister of Mines to facilitate the award to the Chinese conglomerate of exclusive and highly valuable investment rights in a wide range of sectors of the Guinean economy, including near-total control of Guinea’s significant mining sector.
In order to receive the bribes covertly, THIAM opened a bank account in Hong Kong (the “Hong Kong Account”) and misreported his occupation to the Hong Kong bank to conceal his status as a public official in Guinea. Upon receiving the bribes, THIAM transferred millions of dollars in bribe proceeds from the Hong Kong Account to, among others, THIAM’s bank accounts in the United States; a Malaysian company that facilitated and concealed THIAM’s purchase of a $3,750,000 estate in Dutchess County, New York; private preparatory schools in Manhattan attended by THIAM’s children; and at least one other West African public official.
To further conceal the unlawful source of the bribery proceeds that THIAM transferred from the Hong Kong Account to banks in the United States, THIAM lied to two banks based in Manhattan and on tax returns filed with the Internal Revenue Service regarding the bribe payments, his position as a foreign public official, and the source of the funds in the Hong Kong Account. In total, THIAM received approximately $8.5 million in bribes from the Chinese conglomerate.
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THIAM, 50, of Manhattan, was convicted of one count of transacting in criminally derived property, which carries a maximum sentence of 10 years in prison, and one count of money laundering, which carries a maximum sentence of 20 years in prison. THIAM is scheduled to be sentenced before Judge Cote on August 11, 2017, at 10:00 a.m.
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.
Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter. The Office is grateful to the government of Guinea for providing substantial assistance in gathering evidence during this investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Elisha J. Kobre and Christopher J. Dimase and Trial Attorney Lorinda I. Laryea of the Fraud Section of the Justice Department’s Criminal Division are in charge of the prosecution.
Former Military Sealift Command Contractor Charged with Bribery and FraudRead the Press Release
A former contractor at the Military Sealift Command (MSC) was indicted for his role in a bribery and fraud conspiracy from approximately 1999 to 2014, in which he allegedly received almost $3 million dollars in bribes. Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Dana J. Boente of the Eastern District of Virginia made the announcement.
Scott B. Miserendino Sr., 58, formerly of Stafford, Virginia, was charged in a five-count indictment with one count of conspiracy to commit bribery and honest services mail fraud, one count of bribery and three counts of honest services mail fraud. Miserendino’s arraignment will be scheduled at a later date.
According to allegations in the indictment, Miserendino was a government contractor at MSC, an entity of the U.S. Department of the Navy that provided support and specialized services to the Navy and other U.S. military forces. The indictment alleges that Miserendino and Joseph P. Allen, the owner of a government contracting company, conspired to use Miserendino’s position at MSC to enrich themselves through bribery.
Specifically, beginning in 1999, Miserendino allegedly used his position and influence at MSC to assist Allen and his company in obtaining and expanding a commission agreement with a telecommunications company, which sold maritime satellite services to MSC, according to the indictment. For more than a decade, Miserendino allegedly used his influence at MSC to take official acts to benefit the telecommunications company, which through the commission agreement, also benefited Allen and his company. Among his actions, the indictment alleges that Miserendino: advised officials at MSC and on their ships about using the telecommunications company’s services; authorized Allen and his employees to perform services on MSC ships and ensure that the equipment on those ships defaulted to the telecommunications company’s services rather than that of an alternative provider; and facilitated payment to the telecommunications company for the services it rendered to MSC. Unknown to MSC or the telecommunications company, throughout the scheme, Allen paid half of the commissions he received from the telecommunications company to Miserendino as bribes, according to allegations in the indictment.
For his role in the scheme, Allen, 56, of Panama City, Florida, pleaded guilty to one count of conspiracy to commit bribery on April 19, 2017, before U.S. Magistrate Judge Lawrence R. Leonard, in Norfolk, Virginia. Sentencing is scheduled for July 28, 2017, before U.S. District Judge Arenda L. Wright Allen, in Norfolk.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The Norfolk offices of the FBI, the Defense Criminal Investigative Service and the Naval Criminal Investigative Service investigated the case. Trial Attorneys Sean F. Mulryne and Molly Gaston of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Stephen W. Haynie of the Eastern District of Virginia are prosecuting the case.
Former Military Sealift Command Contractor Charged with BriberyRead the Press Release
NORFOLK, Va. – A federal grand jury returned an indictment today charging a former contractor at the Military Sealift Command for his role in a bribery and fraud conspiracy through which he received nearly $3 million in bribes.
According to the indictment, Scott Miserendino, Sr., 58, of Stafford, was charged in a five-count indictment with one count of conspiracy to commit bribery and honest services mail fraud, one count of bribery, and three counts of honest services mail fraud.
According to the indictment, Miserendino was a government contractor at MSC, an entity of the U.S. Department of the Navy that provided support and specialized services to the Navy and other U.S. military forces. The indictment alleges that Miserendino and Joseph P. Allen, the owner of a government contracting company, conspired to use Miserendino’s position at MSC to enrich themselves through bribery. Specifically, beginning in 1999, Miserendino allegedly used his position and influence at MSC to assist Allen and his company in obtaining and expanding a commission agreement with a telecommunications company, which sold maritime satellite services to MSC, according to the indictment. For more than a decade, Miserendino allegedly used his influence at MSC to take official acts to benefit the telecommunications company, which through the commission agreement, also benefited Allen and his company. Among his actions, the indictment alleges that Miserendino: advised officials at MSC and on their ships about using the telecommunications company’s services; authorized Allen and his employees to perform services on MSC ships and ensure that the equipment on those ships defaulted to the telecommunications company’s services rather than that of an alternative provider; and facilitated payment to the telecommunications company for the services it rendered to MSC.
Unknown to MSC or the telecommunications company throughout the scheme, Allen paid half of the commission payments from the telecommunications company to Miserendino as bribes. In total, between approximately 1999 and approximately 2014, Allen received more than $6 million from the telecommunications company, and in turn, he paid more than $2.8 million to Miserendino in bribes.
For his role the scheme, Allen, 56, from Panama City, Florida, pleaded guilty to one count of conspiracy to commit bribery on April 19, and is scheduled for sentencing on July 28.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Kenneth Blanco, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Robert Craig, Special Agent in Charge for Defense Criminal Investigative Service Mid-Atlantic Field Office; and Maureen Evans, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after the indictment was returned. Assistant U.S. Attorney Stephen W. Haynie, and Trial Attorneys Sean F. Mulryne and Molly Gaston of the Criminal Division’s Public Integrity Section are prosecuting the case.
The FBI’s Norfolk Field Office, the Defense Criminal Investigative Service and the Naval Criminal Investigative Service investigated the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Former Hopkinton Ethanol Plant Executive Charged with Fraud, Aggravated Identity Theft, and Money LaunderingRead the Press Release
Darrell Smith, age 61, from Forest City, Iowa, has been charged with mail fraud, wire fraud, money laundering, and aggravated identity theft. The charges are contained in a Complaint filed last month in United States District Court in Cedar Rapids. The Complaint follows Smith’s conviction and 13-month prison sentence imposed late last year for payroll tax fraud.
The Complaint alleges Smith was a broker and adviser for several investment firms. After one of the firms allowed Smith to resign in March 2012, a number of customer disputes were filed against Smith alleging misrepresentation, conversion, and purchase of investments without authorization. In 2013, Smith consented to having his securities agent license and insurance producer license in the State of Iowa revoked.
The Complaint specifically alleges that Smith solicited funds from many of his investment clients to be invested in Permeate Refining, LLC, which operated a now-defunct ethanol plant in Hopkinton, Iowa, by having funds transferred to what is now known as Energae, LP. Smith was one of the original general partners of Energae, which was formed in 2008 to invest in different bio-energy companies. Many of Smith’s clients agreed to make such investments, while others did not. The Complaint further alleges that, on a number of occasions, Smith nevertheless caused money to be transferred or checks to be issued via wire and/or mail from his clients’ investment accounts without their knowledge or authorization. Smith deposited the funds in accounts he controlled through Energae and then used those funds for the operation of Permeate and for other purposes. Smith either used pre-signed, blank authorization forms or forged his clients’ signatures without their authority. The Complaint details allegations concerning three of Smith’s clients in 2012 and 2013—an Alaska resident, a Forest City clergyman, and a trust created for a retired veterinarian from Mississippi.
If convicted on all charges, Smith faces a mandatory minimum sentence of two years’ imprisonment, a possible maximum sentence of 72 years’ imprisonment, a $1.25 million fine, $500 in special assessments, and 15 years of supervised release following imprisonment.
Smith appeared on May 1, 2017 in federal court in Cedar Rapids and was held without bond. On May 3, 2017, United States District Judge Linda R. Reade ordered Smith detained pending further proceedings. In a written order, Judge Reade found Smith was “a serious risk” to “obstruct justice or attempt to obstruct justice.” The Court noted that, while on pretrial release in last year’s payroll tax fraud case, Smith had violated a no-contact order, made misrepresentations to the Court, and distributed a report to prospective investors that contained several misrepresentations. The report was a so-called private placement memorandum advertising the sale of as much as $20 million in purported federal tax credits arising out of Permeate Refining, LLC—even though the Hopkinton plant was defunct since 2013—but under the name “Texas Energy and Water, Inc.” and allegedly pursuant to a “Cooperative Research and Development Agreement” with the United States Department of Agriculture. Last year, a USDA official from Ames, Iowa, testified at one of Smith’s detention hearings that a document bearing USDA letterhead that Smith had filed in federal district court was forged, and testimony at this week’s detention hearing revealed that the official had repeatedly instructed Smith to stop using his signature without the USDA official’s permission. The Court found Smith was a continued “financial danger” to the community.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Federal Bureau of Investigation, the United States Postal Service Inspection Service, Internal Revenue Service-Criminal Investigation, and the United States Department of Agriculture, Office of Inspector General.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-mj-111.
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Former Guinean Minister of Mines Convicted of Receiving and Laundering $8.5 Million in Bribes from China International Fund and China SonangolRead the Press Release
A former Minister of Mines and Geology of the Republic of Guinea, has been convicted by a federal jury for his role in a scheme to launder bribes paid to him by executives of China Sonangol International Ltd. (China Sonangol) and China International Fund, SA (CIF). The jury reached its verdict yesterday after five hours of deliberations, following a seven-day trial.
Acting Assistant Attorney General Kenneth Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Joon Kim for the Southern District of New York, Assistant Director Stephen Richardson of the FBI’s Criminal Investigative Division and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office announced the conviction.
Mahmoud Thiam, 50, of New York, was convicted of one count of transacting in criminally derived property and one count of money laundering. According to the charges, the funds that were laundered were proceeds derived through violations of Guinean bribery laws.
“As a high-level Minister in Guinea, Thiam sold out his country and then used U.S. banks and real estate to hide millions in bribes paid to him by a Chinese conglomerate,” said Acting Assistant Attorney General Blanco. “Corruption is a global disease that undermines the rule of law everywhere. The Justice Department is committed to investigating and prosecuting those who commit these crimes and use the U.S. financial system and free marketplace to conceal and benefit from their crimes.”
“As a New York federal jury has now found, Thiam abused his official government position to enrich himself at the expense of one of Africa’s poorest countries,” said Acting U.S. Attorney Kim. “Thiam laundered the proceeds of his bribery scheme into the United States to fund his lavish lifestyle, buying a multi-million dollar estate in Dutchess County, and paying for private schools for his children. Thanks to the work of the FBI, Thiam’s scheme was exposed and he was swiftly convicted.”
“This conviction showcases the FBI’s commitment to combatting corruption domestically and abroad,” said Assistant Director Stephen Richardson. “Thiam’s misuse of his official position for personal gain violated federal law and the trust of the Guinean people. I applaud the excellent work that our employees put into this case and thank all of our partners who helped bring Thiam to justice.”
“The conviction of Thiam demonstrates that no one who violates public office is above the law when they are involved in corruption,” said Assistant Director in Charge Sweeney. “The FBI’s International Corruption Squads were established to take on foreign corruption cases like this that use money laundering and lies to deceive the trust in public office.”
According to evidence presented at trial, China Sonangol, CIF and their subsidiaries signed a series of agreements with Guinea that gave them lucrative mining rights in Guinea, and Thiam influenced the Guinean government’s decision to enter into those agreements while serving as Guinea’s Minister of Mines and Geology from 2009 to 2010.
The evidence showed that Thiam participated in a scheme to launder money from 2009 to 2011, during which time China Sonangol and CIF paid him $8,500,000 to a bank account in Hong Kong. Thiam then transferred approximately $3,900,000 to the United States through bank accounts and other means, and used the money to pay for luxury goods and other expenses, according to trial evidence. To conceal the bribe payments, Thiam falsely claimed to banks in Hong Kong and the United States that he was employed as a consultant and that the money was income from the sale of land which he earned before he was a minister, according to the evidence.
The purpose of the bribes, according to the evidence presented at trial, was to obtain substantial rights and interests in natural resources in Guinea, including the right to be the first and strategic shareholder with Guinea of a national mining company into which Guinea had to, among other things, transfer all of its stakes in various mining projects and future mining permits or concessions that the government decided to develop on its own. China Sonangol and CIF, through their subsidiaries, also obtained exclusive and valuable rights to conduct business operations in a broad range of sectors of the Guinean economy, including mining, according to the trial evidence.
Thiam was detained pending trial and is still in the custody of the U.S. Marshals. Sentencing is scheduled for Aug. 11, 2017.
Trial Attorney Lorinda Laryea of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Elisha Kobre and Christopher DiMase of the Southern District of New York are prosecuting the case. Fraud Section Assistant Chief Tarek Helou, Senior Trial Attorney Jason Linder, Trial Attorney Sarah Edwards, and Money Laundering and Asset Recovery Section Senior Trial Attorney Stephen Parker and Trial Attorney Alexis Loeb previously investigated the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter. The department is grateful to the government of Guinea for providing substantial assistance in gathering evidence during this investigation. The department also thanks Israel and Switzerland for their assistance in the department’s investigation.
The FBI’s International Corruption Squads in New York City and Los Angeles are investigating the case. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
To learn more about the government’s FCPA enforcement efforts, go to www.justice.gov/criminal/fraud/fcpa.
Former Chief Accounting Officer Pleads Guilty in Million Dollar Fraud SchemeRead the Press Release
Memphis, TN – The former Chief Accounting Officer for a Memphis business conglomerate has pleaded guilty to mail fraud. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.
According to the criminal information filed by the United States Attorney’s Office, Jim Tyson Jenkins, 46, also known as Ty Jenkins, was the Chief Accounting Officer for Blake Enterprises, LLC, a local business conglomerate affiliated with several other businesses including Reliable Finance Company, Inc.
In connection to his guilty plea, Jenkins admitted that between 2011 through March 2017, he defrauded Blake Enterprises and Reliable Finance of approximately $1.1 million by authorizing loans against the cash values of life insurance policies. The policies were issued by Voya Financial and were owned by the Reliable Finance Company retirement plan. In addition to his duties as Chief Accounting Officer, Jenkins was the retirement plan administrator.
According to information presented in court, Jenkins contacted Voya and requested loans against the policies. Voya mailed loan proceeds checks to Reliable. Jenkins deposited the checks to Reliable Finance accounts at First Tennessee Bank or InSouth Bank. Jenkins, who was authorized to transact business on the accounts, thereafter stole the funds by writing checks payable to himself, depositing them to his personal account at Regions Bank and using the funds for his personal benefit.
Jenkins faces a maximum penalty of 20 years’ imprisonment, $250,000 fine and 3 years supervised release. The defendant is scheduled to be sentenced on July 28, 2017, by U.S. District Judge John T. Fowlkes, Jr.
The case was investigated by the United States Postal Inspection Service. Assistant U.S. Attorney Carroll L. Andre III is prosecuting this case on the government’s behalf.
Former Cay Clubs Chief Financial Officer Sentenced to 40 Years in Prison for Conspiracy, Bank Fraud and Tax OffensesRead the Press Release
The former Chief Financial Officer of Cay Clubs Resorts and Marinas (Cay Clubs) was sentenced to 40 years in prison, after having been previously convicted by a federal jury of conspiracy, bank fraud, and tax offenses.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Timothy Mowery, Special Agent in Charge, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), made the announcement.
David W. Schwarz, 60, of Orlando, was convicted at trial on March 3, 2017 of conspiracy to commit bank fraud, in violation of Title18 ,United States Code, Section 1349, two counts of bank fraud, in violation of Title 18, United States Code, Section1344, and one count of interference with the administration of the IRS, in violation of Title 26, United States Code, Section 7212(a). Chief U.S. District Judge K. Michael Moore, sitting in Key West, sentenced Schwarz to 40 years in prison. Judge Moore found that the criminal conduct resulted in $303 million in fraudulent proceeds and approximately $170 million in victim losses. A restitution hearing has been set for July 10, 2017, in Key West.
According to evidence at trial, Schwarz was the Vice President and Chief Financial Officer (CFO) of Cay Clubs, which operated purported luxury resorts in the Florida Keys, Clearwater, Orlando, Las Vegas, and elsewhere. Between 2004 and 2008, Cay Clubs grew to more than 1,000 employees and became one of the largest employers in the Florida Keys. Schwarz, who was the one-third owner, and Fred Davis Clark, Jr., a/k/a Dave Clark, who was the two-thirds owner, began Cay Clubs in 2004 with fraudulent sales of Cay Clubs units to insiders, using money from Cay Clubs bank accounts to fund the cash to close for purchases, while obtaining mortgage financing from lending institutions. These fraudulent sales were used in marketing materials to falsely show demand for Cay Clubs units and to inflate prices, as Cay Clubs was in reality purchasing units from itself. Proceeds of these sales were diverted to Schwarz and Clark.
Trial evidence established that Cay Clubs raised more than $300 million from approximately 1,400 investors, who purchased units in Cay Clubs developments. Schwarz and Clark failed to remodel the dilapidated properties as they promised investors, while taking millions of dollars out of the company for their own benefit. During the operation of Cay Clubs from 2004 through 2008, Schwarz and Clark diverted more than $30 million in proceeds for themselves, including millions of dollars in cash transfers that were used to purchase property and other businesses, including a gold mine, a rum distillery, aircraft, and a coal reclamation business.
Trial evidence further showed that as Cay Clubs faced dwindling sales due to its failure to upgrade the dilapidated properties in 2006, Schwarz, Clark, and others engaged in additional fraudulent sales of Cay Clubs units to insiders, including Clark’s family members. These mortgage loans were used to prevent Cay Clubs from defaulting on commercial debts. The documents used to obtain these mortgages included falsified signatures and notary attestations, and had Cay Clubs acting as the seller while Schwarz provided the cash to close so that mortgage loans could be obtained to fund the sales.
During the course of this scheme, Schwarz and Clark did not file any corporate tax return for $74 million in income generated by the Cay Clubs entities. Furthermore, neither Schwarz or Clark filed any individual tax return for these years until after an investigation of Cay Clubs by the U.S. Securities and Exchange Commission (SEC). In 2010 and 2011, Schwarz filed false individual tax returns for tax years 2004, 2005 and 2006, respectively, in which he substantially underreported his income for these tax years and concealed his receipt of millions of dollars in proceeds.
On December 11, 2015, Dave Clark, 59, formerly a resident of Tavernier, was convicted by a federal jury in connection with related bank fraud charges and obstruction of the SEC. He was sentenced on February 21, 2016, to 40 years in prison by U.S. District Judge Jose E. Martinez. Former Cay Clubs sales executives Barry Graham, 59, and Ricky Lynn Stokes, 54, both formerly of Ft. Myers, previously pled guilty to conspiracy to commit bank fraud in related cases and were sentenced to 60 months, and 30 months, respectively.
Mr. Greenberg commended the investigative efforts of the IRS-CI and FHFA-OIG, and the extensive assistance of the SEC’s Miami Regional Office. This matter was prosecuted by Assistant U.S. Attorneys Jerrob Duffy, James V. Hayes, and Alison Lehr.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Attorney Convicted of Mail FraudRead the Press Release
HAMMOND-Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announced that Robert E. Stochel, age 64, of Crown Point, Indiana was convicted of mail fraud, after a three-day jury trial before District Court Senior Judge Rudy Lozano.
According to documents filed in this case, Stochel, a local attorney, and former Tip Top Supermarket receiver was convicted on a charge of mail fraud relating to a scheme he operated from 2001 to June 2012 against the Tip Top Receivership estate. In his capacity as receiver, Stochel stole hundreds of thousands of dollars from the receivership and then attempted to hide that theft from not only the court that appointed him receiver but also from the receivership’s beneficiaries.
This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorneys Diane Berkowitz, Alexandra McTague and Maria Lerner.
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Federal jury finds Sulphur company bookkeeper guilty of stealing more than $4 millionRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a federal jury found a former bookkeeper for a Sulphur oil field company guilty of stealing more than $4 million while working there.
Elizabeth Istre, 51, of Sulphur, La., was found guilty of three counts of wire fraud. After the conclusion of the four-day trial, the jury deliberated for approximately one hour before delivering the guilty verdict before U.S. District Judge Donald E. Walter who presided over the trial. According to the evidence presented, Istre worked as a bookkeeper for a family-owned petroleum company in Sulphur, La. From 2004 through January of 2014, Istre issued fraudulent checks payable to herself and her husband from the company’s corporate bank account. During that time, she issued more than 800 checks totaling more than $4 million and used the money for personal expenses.
Istre began writing fraudulent checks payable to herself not long after being hired in 2004. She started writing the checks in small amounts but then increased the amount. By 2011, she was writing fraudulent checks for half a million dollars a year. She was the only person to use the business’ software, and she provided the financial statements directly to the company’s accountant. Because of fluctuations in the oil and gas industry, Istre was able to conceal the stolen funds. She bought several vehicles, took numerous trips, paid bills, bought property, paid family members’ expenses, withdrew cash and made other transactions with the stolen funds.
Istre faces up to 20 years in prison, five years of supervised release, restitution and a $250,000 fine for each count. Istre was detained pending sentencing. The court did not set a sentencing date.
The U.S. Secret Service investigated the case. Assistant U.S. Attorneys Kelly P. Uebinger and Dominic A. Rossetti are prosecuting the case.
Federal Prisoner and his Fiancée Indicted for running an Inmate Taxi ServiceRead the Press Release
ATLANTA – Federal inmate Deldrick D. Jackson and Kelly M. Bass have been arraigned on charges of conspiring to assist inmates to escape from the U.S. Penitentiary in Atlanta and for escaping and assisting in the escape from prison.
“Jackson and Bass allegedly ran a scheme that resulted in inmates escaping from Atlanta’s federal prison camp into the community,” said U. S. Attorney John Horn. “Inmates who escape from custody present a threat to the safety of the citizens in the area. Safety concerns also arise when inmates return with contraband to feed a thriving black market.”
“The federal indictment of both federal inmate Jackson and his girlfriend Kelly Bass not only illustrates very clearly the problems at the federal camp of the U.S. Penitentiary Atlanta but also the efforts underway by the FBI, working with the Atlanta Police and its other law enforcement partners, to remedy the matter. Federal inmates walking away from federal detention facilities is escape, plain and simple, and the federal indictment of these two reflects this,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
“The Atlanta Police Department’s number one priority is the safety of our communities. The department is always willing to cooperate with other agencies to reduce the threat to neighborhoods that escaped inmates present. U.S. Attorney John Horn and his staff deserve a lot of credit and thanks for making these types of cases a top priority and sending a message that any prison escapes will be prosecuted and result in additional charges,” said Atlanta Police Chief Erika Shields.
According to U.S. Attorney Horn, the charges, and other information presented in court: the United States Penitentiary in Atlanta (“USP Atlanta”) also operates a satellite prison camp for minimum-security male inmates. In May 2010, Jackson was convicted of conspiring to distribute cocaine and conspiring to launder money. From July 2016 to April 2017, Jackson was assigned to the USP Atlanta minimum security camp. According to prison visitation records, Jackson listed Bass as his fiancée.
The indictment alleges that from approximately November 2016 to April 2017, Jackson and Bass conspired to provide inmates who escaped from USP Atlanta’s camp with transportation in exchange for a fee. For example, on January 28, 2017, Bass allegedly picked up Jackson and other escaped inmates from outside USP Atlanta, drove them to a nearby hotel, and hours later, returned Jackson and the other inmates to USP Atlanta. Financial records show that Bass received approximately $4,000 from accounts associated with USP Atlanta inmates or the inmates’ families during this six-month period.
On April 13, 2017, Jackson allegedly escaped from USP Atlanta’s camp again, after which Bass picked him up and drove him away from the prison. Law enforcement officers then stopped Bass’s SUV and arrested Bass and Jackson. After searching the SUV, officers recovered two cell phones, a box filled with packs of cigarettes, and several bottles of alcohol, which is consistent with contraband that is smuggled back into the prison.
On April 25, 2017, a federal grand jury indicted Deldrick D. Jackson, 41, of DeKalb County, Georgia, and Kelly M. Bass, 38, also of DeKalb County, on conspiratorial and substantive escape charges.
This case is being investigated by the Federal Bureau of Investigation and Atlanta Police Department.
Assistant U.S. Attorneys Jeffrey W. Davis and Timothy H. Lee are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Eight-Time Felon Indicted on Federal Firearms ChargRead the Press Release
Erwin Keith Bell, age 36, from Clinton, Iowa, has been charged with one count of Felon in Possession of a Firearm. The charge is contained in an Indictment filed yesterday in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about February 4, 2017, Bell knowingly possessed a .22 magnum caliber revolver after eight prior felony convictions in Iowa and Illinois for, among other things, possession of controlled substances with the intent to deliver, firearms trafficking, extortion, and burglary. In an affidavit filed last month in the case, it was alleged that an officer with the Mount Vernon Police Department conducted a traffic stop on a car in which Bell was seated in the front passenger seat after sunset on February 4, 2017. During the course of the traffic stop, Bell assaulted the officer by striking him after the officer saw a marijuana pipe between Bell’s legs. Bell then fled on foot, and the officer pursued him. After the officer caught him, Bell continued to assault the officer, punching and kicking him in the face. Bell removed the officer’s baton and struck the officer with the baton in an attempt to gain access to the officer’s taser. Bell was eventually placed under arrest. During a search of the car, police located drug paraphernalia, baggies, a scale, marijuana, and cocaine.
If convicted, Bell faces up to life in prison, a $250,000 fine, a $100 special assessment, and five years of supervised release following any imprisonment.
Bell appeared on April 14, 2017 in federal court in Davenport and was held without bond. Bell’s next appearance in Cedar Rapids is set for May 9, 2017, at 3:00 p.m.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the Federal Bureau of Investigation, the Mount Vernon Police Department, the Lisbon Police Department, the Linn County Sheriff’s Office, the Mechanicsville Police Department, the Iowa State Patrol, the Clinton Police Department, the Davenport Police Department, the Eldridge Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 17-mj-65 and 17-cr-27.
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Eight Residents of Florida and Missouri Charged in $1.67 Million Fraud SchemeRead the Press Release
Eight defendants have been charged in a multi-count indictment, for their participation in an elaborate automobile fraud scheme that netted over $1.67 million.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Division; and Rick Maglione, Chief, Fort Lauderdale Police Department, made the announcement.
Mark David Johnson, 41, of Fort Lauderdale, Florida, David William Wheat, 66, of Fort Pierce, Florida, Michael Kennedy Brown, 53, of Delray Beach, Florida, James Carrington, 37, of Aurora, Missouri, Jana Kabelova, 41, of Fort Lauderdale, Florida, Michael Munday, a/k/a “Mickey,” 71, of North Miami, Florida, Juan Ottavianelli, 71, of North Miami, Florida, and Edwin Fernandes, 50, of North Miami, Florida are charged in a fourteen count indictment with conspiracy to commit mail fraud, in violation of Title 18, United States Code, Section 1349, and mail fraud, in violation of Title 18, United States Code, Section 1341. If convicted, the defendants face up to twenty years in prison, three years of supervised release, a $250,000 fine, and restitution, as to each count.
The initial hearings are scheduled for May 5, 2017 before U.S. Magistrate Judge Judge Alicia Otazo-Reyes.
According to the indictment, between September 2008 and February 2015, defendants Johnson, Wheat, Brown, Carrington, Kabelova, Munday, Ottavianelli and Fernandes engaged in a scheme to unjustly enrich themselves by, among other things, (1) obtaining mortgaged automobiles through various fraudulent methods, including, among other things, the use of straw buyers; (2) preparing and mailing, via U.S. mail, false and fraudulent lien notices to all interested parties, including the lender, as required by Florida law; (3) hiding the automobiles at various locations in Miami-Dade and Broward Counties, in Florida, to avoid repossession by the rightful lienholders; (4) falsely and fraudulently removing the automobile’s lawful owner from its title; and (5) selling the automobiles to co-conspirators at prices below market value, so that the co-conspirators could re-sell the automobiles at a profit.
The indictment alleges that Johnson, Kabelova, and their co-conspirators fraudulently obtained automobiles by (1) recruiting straw buyers to purchase automobiles from dealerships in Miami-Dade and Broward Counties; (2) identifying distressed automobiles loans in Miami-Dade and Broward Counties and offering to buy those automobiles at a discounted rate; and (3) enlisting Carrington to steal automobiles. Munday, Fernandes, and other co-conspirators transported automobiles, provided by Carrington, from Missouri to Florida. Brown, Johnson, Munday, Ottavianelli, and other co-conspirators stored the fraudulently obtained automobiles at various locations in Miami-Dade and Broward Counties. Wheat prepared and mailed false and fraudulent documents falsely claiming that the lienholders incurred costs to tow and store the automobiles. Johnson sold the fraudulently obtained automobiles to Brown, among others. Wheat prepared and filed applications for a Certificate of New Title from the Florida Department of Motor Vehicles.
Mr. Greenberg commended the investigative efforts of the USSS and Fort Lauderdale Police Department in this matter. This case is being prosecuted by Assistant United States Attorneys Joshua S. Rothstein and Nalina Sombuntham.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
East Side Crips Taken Down by Metro Gang Task Force in One of the Largest Federal Drug Enforcement Actions in the Past DecadeRead the Press Release
DENVER – A federal grand jury in Denver has returned eight separate indictments charging a total of 52 individuals with trafficking cocaine and crack cocaine in the Denver metro area, Acting United States Attorney Bob Troyer, FBI Denver Division Special Agent in Charge Calvin Shivers, Aurora Police Chief Nick Metz, and members of the Metro Gang Task Force announced. Of the 52 indicted, 35 were arrested. The other 17 defendants are considered fugitives. Most of those arrested today made an initial appearance before a U.S. Magistrate Judge, where they were advised of their rights and the charges pending against them. Those individuals will have detention hearings and arraignments next week on May 9, 2017. Those who didn’t make it to court today will appear in court tomorrow.
Today’s take down involved 225 Special Agents and officers from 18 agencies, including SWAT teams from 4 different departments. This 20-month investigation focused on cocaine and crack cocaine dealing by members and associates of the East Side Crips. These gang members dealt cocaine and crack cocaine in open air drug markets, including near parks and public transportation centers – both areas where children and families congregate. The goal of this investigation is to remove poison, fear and danger from these places so they can be used again freely by the public.
The lead defendants of each of the eight indictments are: Jerrell Birch (1 of 14 defendants); Rodrick Harris (1 of 4 defendants); Shedrick Wilford (1 of 6 defendants); Tamar Henry (sole defendant); Sealed Indictment; Deon Jackson (sole defendant); Kiki Douglas (1 of 6 defendants); and Clarence Antoine and Spencer Antoine (2 of 22 defendants). Three defendants are named in two different indictments.
If convicted, the 52 defendants face a wide variety of criminal consequences depending on the drug trafficking charges. Some face not less than 10 years and up to life, others face not less than 5 years and up to 40 years, and yet others face not more than 20 years in federal prison. Also, some defendants are charged with using a telephone to commit a drug trafficking offense. The penalty for that charge is not more than 4 years in federal prison per count.
“In Colorado we pride ourselves on gold-standard law enforcement partnerships that make life safe here,” said Acting U.S. Attorney Bob Troyer. “Eighteen agencies came together in this investigation and removed poison, fear and danger from parks, neighborhoods, and public transportation. And they did it with minimal disruption to the folks in those communities who just want to go outside, walk to school, use their parks, or take the light rail.”
“Today’s arrests are indicative of the success that can be attained when agencies combine resources to attack violent street gangs,” said FBI Special Agent in Charge Calvin Shivers. “Crimes of this nature cause our citizens to live in fear and threaten to destroy our neighborhoods. This cannot be tolerated. We are confident today’s arrests will send a message to those contemplating committing these egregious acts that they will be aggressively investigated and prosecuted to the full extent of the law. The FBI will continue to continue to work with our law enforcement partners and prosecutors to attack this crime problem and remove violent criminals from our neighborhoods.”
“The magnitude of this investigation demonstrates the collaborative effort to identify, target and address metropolitan-wide organized gangs involved in drug trafficking and violence in our community,” said Aurora Police Chief Nick Metz. “The hard work and dedication of all the investigators and officers involved will have a tremendous impact on our communities. Thank you to everyone who was involved.”
The Metro Gang Task Force consists of the U.S. Attorney’s Office, the Aurora Police Department, the FBI, the Denver Police Department, the Arapahoe County Sheriff’s Office, the Colorado State Patrol, the Colorado National Guard Joint Counter-Drug Task Force, the Denver District Attorney’s Office, the Douglas County Sheriff’s Office, the Lakewood Police Department, the Jefferson County Sheriff’s Office, High Intensity Drug Trafficking Area (HIDTA) and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigation (HSI). Agencies assisting with the arrest operations include: the Longmont Police Department, the Northglenn Police Department, the Thornton Police Department, the Westminster Police Department, and the U.S. Marshal’s Service.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
Document Broker Pleads Guilty to Role in Trafficking Identities of Puerto Rican U.S. CitizensRead the Press Release
A document broker pleaded guilty today in connection with his role in trafficking the identities of Puerto Rican U.S. citizens and corresponding identity documents.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney William D. Weinreb of the District of Massachusetts, Acting Director Thomas D. Homan of the U.S. Immigration and Customs Enforcement (ICE) and Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS) made the announcement.
Sandro Tavera Mora, aka Jose Laureano Ayala, 46, a Dominican citizen residing in Springfield, Massachusetts, pleaded guilty before U.S. District Court Judge Mark G. Mastroianni of the District of Massachusetts, to false personation of U.S. citizenship, fraud and misuse of visas and conspiracy to possess and transfer identification documents. Tavera Mora was charged in a superseding indictment returned by a federal grand jury in Springfield on July 23, 2015. Sentencing is set for June 22, 2017.
According to admissions made in connection with the plea, identity document runners located in the Savarona area of Caguas, Puerto Rico, obtained Puerto Rican identities and corresponding identity documents. Other conspirators located in various cities throughout the United States, identified as identity document suppliers and brokers, solicited customers and sold social security cards and corresponding Puerto Rico birth certificates for prices ranging from $400 to $1,200 per set.
As part of his plea, Tavera Mora admitted that he operated as a document broker in Springfield, Massachusetts, buying, possessing, transferring and selling personal identifying information contained in legitimate government documents belonging to residents of Puerto Rico. Tavera Mora further admitted that the customers who purchased these documents were undocumented aliens who would use this information to assume identity of U.S. citizens in order to apply for other identity documents. Tavera Mora also admitted that he knew that these customers would use these documents to violate federal law, including social security fraud and the impersonation of a U.S. citizen.
Additionally, Tavera Mora admitted that upon his arrest he identified himself as “Lareano Ayala,” stated he was born in Puerto Rico and possessed a fraudulent Puerto Rico Driver's License and a U.S. social security card in the same name. Tavera Mora further admitted that he possessed a fraudulent Dominican Republic passport that contained a non-immigration U.S. Visa with fraudulent admittance record and a Customs and Border Patrol (CBP) admittance stamp.
The Chicago offices of ICE-HSI, USPIS, DSS and IRS-CI led the investigation, dubbed Operation Island Express II, with assistance from HSI Springfield, Massachusetts, and USPIS in Hartford, Connecticut. The ICE-HSI Attaché office in the Dominican Republic, International Organized Crime Intelligence and Operations Center (IOC-2) and Illinois Secretary of State Police provided invaluable assistance, as well as various ICE, USPIS, DSS and IRS CI offices around the country.
Trial Attorney Marianne Shelvey of the Justice Department Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kevin O’Regan of the District of Massachusetts are prosecuting the case
Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html. Anyone who believes their identity may have been compromised in relation to this investigation may contact the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) and its online tip form at www.ice.gov/tipline. Anyone who may have information about particular crimes in this case should also report it to the ICE tip line or website.
District Court Enters Permanent Injunction Against Florida Company and Senior Managers to Stop the Distribution of Misbranded and Adulterated Medicated Animal FeedsRead the Press Release
The U.S. District Court for the Southern District of Florida entered a consent decree of permanent injunction against Syfrett Feed Company Inc. of Okeechobee, Florida, its owner and President Charles B. Syfrett I, its Vice President Melissa S. Montes De Oca and its Operations Manager Charles B. Syfrett II, the Department of Justice announced today. injunction permanently enjoins the defendants from distributing misbranded and adulterated medicated animal feed in violation of the federal Food, Drug, and Cosmetic Act, and requires the defendants to cease manufacturing medicated animal feed until remedial steps are taken.
The Department filed a complaint in the U.S. District Court for the Southern District of Florida on Feb. 1, at the request of the U.S. Food and Drug Administration (FDA). According to the complaint, the company’s medicated animal feeds failed to list the name of the active drug ingredients and to include adequate instruction for use on the labels of the medicated feeds. As noted in the complaint, the label of the medicated feeds did not include dose administration instructions, feeding limitations and/or cautionary statements for use of the drugs in combination with other drugs.
The complaint also alleged that the medicated feed was not manufactured in conformity with current good manufacturing practices for medicated feeds. For example, the complaint alleged that the defendants failed to establish and maintain adequate procedures for the identification, storage, and inventory control of drugs intended for use in their medicated feeds, and failed to establish and use adequate procedures for all equipment used in the production and distribution of medicated feeds to avoid unsafe contamination of animal feeds.
“Animal feed manufacturers that fail to comply with labeling and good manufacturing requirements for medicated animal feeds jeopardize the health of animals,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice and FDA will continue to work together to ensure that animal feed manufacturers produce safe medicated animal feed products.”
The complaint further alleged that Syfrett Feed conducted a recall of its non-medicated horse pellet food in April 2014 when customers complained that their horses were falling ill after consuming Syfrett Feed’s horse pellet food. The complaint stated that 15 horses had to be euthanized, and in September 2014, two more horses had to be euthanized after consuming Syfrett Feed’s horse pellet food. According to the complaint, following these events, Syfrett Feed discontinued manufacturing medicated and non-medicated feeds for horses.
The consent decree entered today resolves the litigation. The decree requires that the defendants adhere to the law’s labeling requirements and current good manufacturing practices for medicated animal feeds. The decree also directs Syfrett Feed to cease manufacturing medical animal feed until the company implements specified remedial measures. The measures include, among other things, retaining an expert to conduct an inspection of Syfrett Feed and certifying that the company’s manufacturing methods, facilities and controls are in conformity with current good manufacturing practices for medicated feeds.
This matter was handled by Trial Attorney Jocelyn Hines of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Christopher Cheek of the U.S. Attorney’s Office for the Southern District of Florida, with the assistance of Associate Chief Counsel for Enforcement Tara Boland of the FDA’s Office of General Counsel, Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at https://www.justice.gov/usao-sdfl.
Davis Man Found Guilty of Distribution and Possession of Child PornographyRead the Press Release
SACRAMENTO, Calif. C A federal jury found Alexander Nathan Norris, 28, of Davis, guilty of distribution and possession of material involving the sexual exploitation of minors, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between December 27, 2010, and April 12, 2011, law enforcement agents noticed an individual sharing child pornography over the internet using a peer-to-peer filing sharing software. One of the IP addresses the individual was using was registered to an apartment in Davis where three female UC Davis students lived. All three denied accessing or distributing child pornography. With the residents’ permission, the agents used a computer program and a directional antenna to find the individual involved in the file sharing. This led to Norris, who lived nearby in the same apartment complex and had gained unauthorized access to the students’ password‑protected network.
At the time of his arrest on April 12, 2011, Norris had child pornography on his computer, including files that he had distributed to law enforcement approximately four days earlier.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Matthew G. Morris and Shelley D. Weger are prosecuting the case.
Norris is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on August 2, 2017. Norris faces a mandatory minimum of five years in prison and a statutory maximum of 20 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Corpus Christi Man Sentenced for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 29-year-old Corpus Christi man has been ordered to prison following his two convictions of sexual exploitation of a child, otherwise known as production of child pornography, announced Acting U.S. Attorney Abe Martinez. Mark Hamauei pleaded guilty Jan. 6, 2017, admitting he took sexually explicit videos of both a 13 and 14-year-old victim.
He was sentenced to 210 months on each count to run concurrently. 10 years of supervised release in each count and $1,229.08 in restitution.
Today, Senior U.S. District Judge Nelva Gonzales Ramos sentenced Hamauei to a total of 210 months in federal prison on each count to run concurrently. The sentence will be immediately by 10 years of supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender and pay $1229 in restitution.
At today’s hearing, the court also heard testimony from one of the victims. She described to the court the impact the crime has had on her life and that of her family.
Hamauei came to the attention of law enforcement after identifying two young females who had been sexually assaulted. Law enforcement later executed a search warrant at Hamauei’s residence and seized various electronic devices which led to the discovery of two videos of the two girls being sexually assaulted. Hamauei’s hands were compared and matched to the hand of the person filming the video. Authorities also discovered 239 videos and more than 1,400 other images of child pornography. At the hearing today, the court heard that many of these images depicted sadistic or masochistic conduct including bondage of children as young as toddlers.
Hamauei was arrested on the federal charges in October 2016 and has been in custody since that time where he will remain pending his transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department – Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, 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."
Convicted Felon Sentenced to 100 Months for Firearm OffenseRead the Press Release
DAYTON – Charles G. Thomas, Jr., 27, of Dayton, was sentenced in U.S. District Court to 100 months in prison for possessing a firearm after being convicted of a felony crime.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced the sentence handed down yesterday by U.S. District Judge Walter H. Rice.
According to the Statement of Facts in this case, between March and July 2016 Thomas possessed nine firearms, including seven pistols, a revolver and a shotgun. One of the firearms was possessed with a high capacity magazine. At least one of the weapons had previously been reported as stolen.
In 2010, Thomas was convicted of aggravated robbery with a deadly weapon, a felony offense, in Montgomery County Common Pleas Court.
Thomas pleaded guilty in December 2016 to one count of felon in possession of a firearm.
U.S. Attorney Glassman commended the cooperative investigation by ATF, as well as Assistant United States Attorney Dominick S. Gerace, who is representing the United States in this case.
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Colombian Man Pleads Guilty to Drug, Immigration OffensesRead the Press Release
BOSTON – A Colombian man pleaded guilty today in federal court in Worcester to drug and immigration charges.
Leonardo Franco, 45, a Colombian national who resided in Worcester, pleaded guilty to one count of possession of cocaine with intent to distribute and one count of illegal re-entry of a deported alien. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Aug. 4, 2017.
On Nov. 3, 2016, Franco was traveling to Oxford, Mass., with the intent of selling cocaine to another individual - an individual to whom Franco had previously sold cocaine. Law enforcement confronted Franco and found him in possession of more than a half-pound of cocaine contained in several clear baggies.
Franco was convicted of illegal re-entry of a deported alien in 2011 and was subsequently deported from the United States. Franco had previously been removed from the United States on three other occasions, including twice in 2010. Sometime after his removal in 2011, Franco illegally re-entered the United States again.
The charging statute for possession of cocaine with intent to distribute provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release and a fine of $1 million. The charging statute for illegal re-entry provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Franco will be subject to deportation upon completion of his sentence. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney William F. Abely of Weinreb’s Worcester Branch Office is prosecuting the case.
Charleston felon pleads guilty to federal gun crimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man pleaded guilty today to a federal gun charge, announced United States Attorney Carol Casto. Re’Shaun Lamonte Wilborne, 31, entered his guilty plea to being a felon in possession of a firearm.
Wilborne admitted that on October 13, 2016, he possessed a Taurus, Model PT92AF, 9x19mm semiautomatic pistol and several boxes of ammunition. An officer with the Metropolitan Drug Enforcement Network Team discovered the handgun in Wilborne’s backpack in a Motel 6 on MacCorkle Avenue in Charleston. Three days later, on October 16, 2016, a Charleston Police Department officer was dispatched to the 700 block of Central Avenue in Charleston in reference to two individuals behind a bar fighting, one of whom was later identified as Wilborne. When Wilborne saw the officer, he admitted that he began to flee. The officer caught up to Wilborne around the 400 block of Elm Street and in a search of Wilborne incident to arrest, law enforcement recovered a Glock, Model 29, 10mm semiautomatic pistol. After a check of the gun’s serial number, law enforcement confirmed that the firearm was stolen. Wilborne was prohibited from possessing any firearm under federal law because of a 2004 conviction for second degree sexual assault in Fayette County Circuit Court.
Wilborne faces up to 10 years in federal prison when he is sentenced on August 3, 2017.
The Metropolitan Drug Enforcement Network Team, the Charleston Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Clint Carte is responsible for the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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California Woman Pleads Guilty to $6.6 Million K2 ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that a Roseville, Calif., woman has pleaded guilty in federal court to her role in a conspiracy to distribute more than $6.6 million of synthetic cannabinoids, also known as K2, at Callaway County, Mo., businesses.
Sheila Marie Nawaz, 40, of Roseville, pleaded guilty before U.S. Magistrate Judge David P. Rush on Wednesday, May 3, 2017, to participating in a conspiracy to commit mail fraud from Dec. 18, 2012, to July 16, 2015.
Nawaz was the president of eComm Organix, Inc., a California distributor of “novelty products.” eComm Organix purchased synthetic cannabinoids from other businesses then distributed those synthetic cannabinoids to retail customers throughout the United States via the U.S. Postal Service.
By pleading guilty, Nawaz agreed that she accumulated approximately $806,260 in gross proceeds attributable to this conduct. Nawaz obtained approximately 179,169 grams of synthetic cannabinoids for distribution at approximately $4.50 per gram.
During the conspiracy, eComm Organix mailed approximately 2,359 retail packages of synthetic cannabinoids to customers in the state of Missouri. The labels on these synthetic cannabinoids misidentified the contents as “incense,” “aroma therapy” or “potpourri” that were “not for human consumption.” In fact, these products were drugs intended for human consumption as a drug. Conspirators mislabeled packages of synthetic cannabinoids for the purpose of avoiding government regulation over these drugs, and to protect the continued sale of these drugs.
Nawaz is among eight co-defendants who have pleaded guilty in this case. Shawn Michael Browning, 26, Timothy Christopher Sandfort, 31, Joshua Adam Sheets, 31, and Brandon Derek Rader, 32, all of Fulton, Mo., also pleaded guilty to participating in the mail fraud conspiracy as well as a money-laundering conspiracy during that time; both conspiracies were related to the distribution of synthetic cannabinoids. Dara Leanne Shirley, 31, of Fulton, pleaded guilty to participating in the money-laundering conspiracy. Casey Dewayne Miller, 32, of Columbia, and Billie L. Bruce, 36, of Jefferson City, each pleaded guilty to distributing synthetic cannabinoids.
According to court documents, the drug-trafficking conspiracy generated $6,656,843 in gross proceeds. Rader and Sandfort each acknowledged that his conduct directly contributed to the generation of approximately $4,544,700 of that total. Browning and Sheets each acknowledged that his conduct directly contributed to the generation of approximately $2,112,142 of that total.
Sandfort, Rader, Shirley, Miller and others operated First Stop Last Stop Pawn & Aromatherapy, Inscentives Resale and Inscentives Auto. First Stop Last Stop Pawn & Aromatherapy represented itself as a “pawn shop” and “potpourri store.” Inscentives Resale was represented to be a “buy, sell, and trade business.” Inscentives Auto held a Missouri motor vehicle dealer’s license. Browning, Sheets, Bruce and others operated Esscentials Resale and S&J Tobacco.
These businesses purchased synthetic cannabinoids from co-conspirators in California and Nevada. At least 251 shipments of synthetic cannabinoids were made via FedEx and UPS. Inscentives Resale sold synthetic cannabinoids from locations in Auxvasse, Mo., and Fulton. Esscentials Resale and S&J Tobacco sold synthetic cannabinoids from locations in Holts Summit, Mo.
Browning, Sandfort, Sheets, Rader and others obtained packages of synthetic cannabinoids from co-conspirators and periodically supplied each other with packages of synthetic cannabinoids for resale.
Under federal statutes, Nawaz is subject to a sentence of up to 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 Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the DEA Task Force – Jefferson City, DEA Sacramento, Calif., DEA Reno, Nev., IRS-Criminal Investigation, the Missouri State Highway Patrol, the MUSTANG Drug Task Force, the Callaway County, Mo., Sheriff’s Department, the Cole County, Mo., Sheriff’s Department, the Jefferson City, Mo., Police Department, the Fulton, Mo., Police Department and the Holts Summit, Mo., Police Department.
Buffalo Man Sentenced on Heroin 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 Julio Sanchez, 30, 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. Sanchez and co-defendants Tomas Figueroa and Elias Figueroa were arrested at the scene. Two other defendants, Steven Martinez and Jeffrey Coleman, were also arrested that day. All five defendants have been convicted; Sanchez is the first to be sentenced.
Today’s 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.
Boston Man Charged with Threats Against Federal OfficerRead the Press Release
BOSTON – A Boston man was arrested today and charged in federal court in Boston in connection with making threats to a Federal Bureau of Investigation (FBI) Task Force Officer.
Carmen J. Polito, 35, was charged in a criminal complaint with knowingly transmitting in interstate communications containing a threat to kidnap or injure an FBI Task Force Officer in Miami, Fla. At his initial appearance today, U.S. District Court Magistrate Judge M. Page Kelley ordered a competency evaluation.
According to court documents, on May 3, 2017, Polito, an individual known to the FBI Miami Division, left threatening voice mails and sent threatening text messages to an FBI Task Force Officer assigned to the Miami Field Division. In those voice messages, Polito threatened to stab the officer and made statements such as, “an officer is going to die.” Polito also sent threatening texts with accompanying photographs including, various weapons, Boston City Hall, and police vehicles.
Federal agents were able to locate Polito by tracking the location of the cell phone used to place the calls and send the texts. On May 3, 2017, Polito was located in Brookline, Mass., and arrested.
The charging statute provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Brookline Police Chief Daniel C. O’Leary made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Alpine Man Admits to Intentionally Setting U.S. Post Office AblazeRead the Press Release
In Alpine today, 59-year-old Karl Henry Peterson admitted to setting the U.S. Post Office in Alpine ablaze last year announced United States Attorney Richard L. Durbin, Jr. and Inspector in Charge Adrian Gonzalez, U.S. Postal Investigation Service, Houston Division.
Appearing before United States Magistrate Judge David Fannin, Peterson pleaded guilty to one count of arson involving a federal facility. By pleading guilty, Peterson admitted to setting fire to the U.S. Post Office during the early morning hours on October 12, 2016. As a result, the building suffered extensive damage.
Peterson, who remains in federal custody, faces an agreed sentence of 37 months in federal prison. Formal sentencing has yet to be scheduled.
The United States Postal Inspection Service, together with the Texas State Fire Marshal’s Office and the Alpine Police Department, investigated this case. Assistant United States Attorney James J. Miller, Jr., is prosecuting this case on behalf of the Government.
Albuquerque Man Sentenced to Ten Years for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Edward Kriglstein, 50, of Albuquerque, N.M., was sentenced this morning in federal court to 120 months in prison for a methamphetamine trafficking conviction. Kriglstein will be on supervised release for eight years following his prison sentence.
Kriglstein was arrested in Feb. 2016, on a criminal complaint charging him with possession of methamphetamine with intent to distribute on Feb. 8, 2016, in Bernalillo County, N.M. According to the complaint, on that day, law enforcement officers executed an arrest warrant on Kriglstein and seized approximately 153.5 gross grams of methamphetamine, marijuana, cash and drug paraphernalia from him incident to his arrest. Kriglstein was indicted on the same charge on Feb. 24, 2016.
On Dec. 16, 2016, Kriglstein pled guilty to the indictment and admitted that on Feb. 8, 2016, law enforcement seized approximately 107.4 grams of pure methamphetamine from him when they arrested him on an outstanding arrest warrant relating to a prior criminal conviction.
This case was investigated by the Albuquerque office of the DEA and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorney Alexander M. Uballez prosecuted the case.
Albuquerque Man Sentenced to Seven Years for Conviction on Federal Firearms and Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – Jeffrey Burlingame, 59, of Albuquerque, N.M., was sentenced today in federal court to 84 months in prison followed by three years of supervised release for violating the federal firearms and drug trafficking laws.
Burlingame was arrested in Feb. 2016, on a criminal complaint charging him with possession of methamphetamine with intent to distribute. The complaint alleged that Burlingame committed the crime on Feb. 24, 2016, in Bernalillo County, N.M. According to the complaint, on that day, law enforcement agents executed a search warrant at the Albuquerque residence of another person. The agents seized methamphetamine, cash, firearms, ammunition and drug paraphernalia from Burlingame, who was present at the time the search warrant was executed.
Burlingame was indicted on March 23, 2016, and was charged with possession of methamphetamine with intent to distribute and carrying a firearm in relation to a drug trafficking crime on Feb. 24, 2016, in Bernalillo County.
On Nov. 28, 2016, Burlingame pled guilty to carrying a firearm in relation to a drug trafficking crime and possession of methamphetamine with intent to distribute. In entering the guilty plea, Burlingame admitted that on Feb. 24, 2016, he was in possession of 450.55 grams of pure methamphetamine and a firearm and ammunition when law enforcement agents executed a search warrant at a residence in Albuquerque.
This case was investigated by Homeland Security Investigations and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorney Alexander M. Uballez prosecuted the case.
Aggravated Felon Sentenced for Illegal Re-EntryRead 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 Jose Manuel Salazar Estrada, 38, of Nogales, Mexico, who was convicted of illegally reentering the United States after a conviction for an aggravated felony, was sentenced to one year in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Stephanie Lamarque, who handled the case, stated that on December 7, 2016, the defendant was encountered at the Peace Bridge Port of Entry after getting lost and turning around on the bridge before reaching Canada. When initially questioned, the defendant claimed to be a citizen of the United States, born in Arizona and gave officials an Arizona voter card as additional proof of identification. Standard record checks revealed that Estrada is a citizen of Mexico and had been deported from the United States on five prior occasions. The most recent deportation occurred in 2015 after the defendant was convicted in Arizona of conspiracy to transport illegal aliens for profit, an aggravated felony, and banned from entering the United States for life.
Estrada was also sentenced to six months in prison for violating the conditions of his supervised release for reentering the United States.
The sentencing is the result of an investigation by United States Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
Acting Manhattan U.S. Attorney Announces Settlement of Bank Secrecy Act Suit Against Former Chief Compliance Officer at Moneygram for Failure to Implement and Maintain an Effective Anti-Money Laundering Program and File Timely SARSRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Jamal El-Hindi, the Acting Director of the Financial Crimes Enforcement Network (“FinCEN”), announced today that the United States Department of the Treasury (the “Treasury Department”) has settled its claims under the Currency and Foreign Transactions Reporting Act of 1970 (“Bank Secrecy Act” or “BSA”) against THOMAS E. HAIDER (“HAIDER”), the former chief compliance officer of MoneyGram International, Inc. (“MoneyGram”). During the relevant time period, MoneyGram operated a money transfer service that enabled its customers to transfer money from one MoneyGram outlet to another. In the settlement – which resolves claims that HAIDER is liable under the BSA for failing to ensure that MoneyGram implemented and maintained an effective anti-money laundering (“AML”) program and filed timely suspicious activity reports (“SARs”) with FinCEN – HAIDER has agreed to a three-year injunction barring him from performing a compliance function for any money transmitter. HAIDER has also agreed to pay $250,000, and has admitted, acknowledged, and accepted responsibility for, among other things, (1) failing to terminate specific MoneyGram outlets after being presented with information that strongly indicated the outlets were complicit in consumer fraud schemes, (2) failing to implement a policy for terminating outlets that presented a high risk of fraud, and (3) structuring MoneyGram’s AML program such that information that MoneyGram’s Fraud Department had aggregated about outlets, including the number of reports of consumer fraud that particular outlets had accumulated over specific time periods, was not generally provided to the MoneyGram analysts who were responsible for filing SARs.
The settlement was approved yesterday by U.S. District Judge David S. Doty of the U.S. District Court for the District of Minnesota.
Acting U.S. Attorney Joon H. Kim said: “Compliance officers perform an essential function, serving as the first line of defense in the fight against fraud and money laundering. Unfortunately, as today's settlement shows, Thomas Haider violated his obligations as MoneyGram's chief compliance officer. By failing to terminate MoneyGram outlets that presented a high risk for fraud and to take other actions clearly required of him, Haider allowed criminals to use MoneyGram to defraud innocent consumers. We are committed to working with FinCEN to enforce the requirements of the Bank Secrecy Act and to hold individuals like Haider accountable.”
Acting FinCEN Director Jamal El-Hindi said: “FinCEN relies on compliance professionals from every corner of the financial industry. FinCEN and our law enforcement partners need their judgment and their skills to effectively fight money laundering, fraud, and terrorist financing. Compliance professionals occupy unique positions of trust in our financial system. When that trust is broken, it is important that we take action so that the reputations of thousands of talented compliance officers are not diminished by any one individual’s outlying egregious actions. We have repeatedly said that when we take an action against an individual, the record will clearly reflect the basis for that action. Here, despite being presented with various ways to address clearly illicit use of the financial institution, the individual failed to take required actions designed to guard the very system he was charged with protecting, undermining the purposes of the BSA. Holding him personally accountable strengthens the compliance profession by demonstrating that behavior like this is not tolerated within the ranks of compliance professionals.”
As part of the settlement, filed in federal court in Minneapolis, HAIDER has admitted, acknowledged, and accepted responsibility for the below-described conduct that occurred during the period 2003 through May 23, 2008 (the “Covered Period”).
MoneyGram operated a money transfer service that enabled its customers to transfer money to and from various locations in the United States and abroad through MoneyGram’s global network of agents and outlets.
HAIDER was MoneyGram’s chief compliance officer, and was the most senior MoneyGram employee with direct oversight over MoneyGram’s Fraud Department and AML Compliance Department. As such, HAIDER had the authority to implement a policy for terminating or otherwise disciplining MoneyGram agents and outlets. In 2006 and 2007, members of MoneyGram’s Fraud Department proposed that MoneyGram implement a policy for terminating or otherwise disciplining agents and outlets that presented a high risk of fraud. A draft policy was provided to HAIDER no later than March 2007. However, MoneyGram’s Sales Department objected to a discipline/termination policy for high-fraud agents and outlets, and therefore, during HAIDER’s employment at MoneyGram, no such policy was implemented.
In addition, in April 2007, MoneyGram’s Fraud Department recommended terminating a number of specific MoneyGram outlets that were located in Canada. To support this recommendation, the Director of Fraud provided HAIDER and other senior managers with specific information on 49 Canadian outlets, which included spreadsheets analyzing the 49 outlets’ money transfer activity during the six-month period from September 2006 through February 2007. The spreadsheets revealed that the 49 outlets accounted for approximately 58% of all reported fraud involving money sent through MoneyGram’s money transfer system to Canada during this six-month period. The spreadsheets also reflected, among other things, that each of the 49 outlets had characteristics that HAIDER and the other members of the Fraud and AML Compliance Departments who reported to him viewed as strong indicators that an outlet was complicit in consumer fraud schemes. Among the 49 outlets were four outlets that were owned and/or operated by the same individual, James Ugoh. The April 2007 spreadsheets revealed that, during the six-month period, the four Ugoh outlets alone had collectively accumulated 150 consumer fraud reports, totaling more than $300,000 in consumer losses. Ugoh has since pled guilty to various crimes relating to consumer fraud, and he has admitted that almost all of the money his outlets received constituted fraud proceeds.
HAIDER had ultimate authority to terminate agents and outlets because of fraud or AML compliance concerns, but in the face of pushback from the Sales Department did not exercise that authority with respect to the vast majority of the 49 outlets identified in the April 2007 spreadsheets.
By April 2007, HAIDER was aware that MoneyGram’s Fraud Department had the ability to aggregate – and had been aggregating – information relating to MoneyGram’s agents and outlets, including the number of consumer fraud reports particular outlets had accumulated over specific time periods. However, HAIDER structured MoneyGram’s AML program such that this information was not generally provided to the MoneyGram analysts who were responsible for filing SARs. During the Covered Period, there were numerous outlets that the Fraud Department identified as having accumulated a disproportionate number of consumer fraud reports, but for which MoneyGram did not file SARs. In addition, MoneyGram’s AML Compliance Department failed to conduct adequate audits of many of those agents/outlets, and certain of the agents were permitted to open additional outlets.
* * *
The Treasury Department filed its complaint in this lawsuit in the United States District Court for the Southern District of New York in December 2014. In March 2015, the parties agreed to transfer the case to the United States District Court for the District of Minnesota, where MoneyGram was headquartered for the period of time relevant to the Government’s complaint.
Mr. Kim thanked FinCEN’s Enforcement Division, Office of Chief Counsel, and Office of Special Investigations for their extraordinary assistance with this case.
This case has been handled at all times by the Civil Frauds Unit of the United States Attorney’s Office for the Southern District of New York. Assistant United States Attorneys Christopher B. Harwood, Jessica Jean Hu, Caleb Hayes-Deats, and Elizabeth M. Tulis are in charge of the case, having been designated as Special Assistant United States Attorneys for the District of Minnesota for that purpose.
Wednesday 3 May 2017
Wisconsin Farmer Sentenced to Federal Prison for Crop Insurance FraudRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on April 27, 2017, Jeffrey Lewke (age: 39) was sentenced to six months in federal prison for a violation of Title 18, United States Code, Section 1001, making a false statement within the jurisdiction of the executive branch of the United States. In addition to the prison term, Lewke was ordered to serve an additional 6 months of home confinement, pay a $2,000 fine, and pay $23,799.44 in restitution to the United States Department of Agriculture (USDA).
The USDA, through the Federal Crop Insurance Corporation (FCIC), provides insurance to farmers for unavoidable crop losses. The FCIC provides insurance by reinsuring private crop insurance companies for losses claimed by their policy holders.
Pursuant to the terms of a plea agreement, Lewke acknowledged that during the 2011 crop season, he falsely represented that he irrigated 120 acres of land in Waushara County more times than he actually did. By doing so, he attempted to fraudulently obtain a nearly $63,000 insurance claim. In total, Lewke acknowledged that he submitted $246,606.53 worth of fraudulent insurance claims during the 2011 crop season.
Moreover, Lewke acknowledged that he attempted to fraudulently obtain additional monies through other false crop insurance claims in 2011. For instance, Lewke falsely claimed that he was prevented from planting a number of properties due to excessive moisture, when in fact, he never attempted to plant some of those properties, some of those properties were already planted with corn, and in one instance, the property was actually a horse pasture. In addition, Lewke fraudulently “shifted” his production by claiming that he produced corn in Dodge County, when in fact he produced the corn in Clark County. By so doing, he falsely claimed that he was entitled to another $70,000 of insurance payments for a loss in Clark County.
At Lewke’s sentencing hearing, District Judge Pamela Pepper described the federal crop insurance program at as a “safety net” for farmers in need, from which Lewke stole while he was enjoying the financial success of farming over 12,000 acres in Wisconsin during the 2011 crop season.
This case was investigated by the United States Department of Agriculture - Office of Inspector General. The case was prosecuted by Assistant United States Attorney Keith S. Alexander
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For additional Information contact:
Public Information Officer Dean Puschnig at (414) 297-1700