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Monday 10 April 2017
Arson Awareness Week 2017 to Focus on Preventing Arson at Houses of WorshipRead the Press Release
The Justice Department today announced that its Civil Rights Division is partnering with the Federal Emergency Management Agency’s U.S. Fire Administration on this year’s Arson Awareness Week, May 7-13, with a focus on Preventing Arson at Houses of Worship.
There were an average of 103 arsons of houses of worship per year from 2000 to 2015. Half of all reported fires at houses of worship turn out to involve arson.
The Department of Justice enforces a number of federal statutes protecting places of worship from attack, including 18 U.S.C. § 247, known as the Church Arson Prevention Act, which was passed in the 1990s in response to a sharp increase in church arsons. That law makes it a federal crime to target religious property because of the religion or race of the congregation. In February of this year, the Department indicted an Idaho man under § 247 alleging that he set fire to a Catholic Church in Bonner’s Ferry in April 2016. In 2013, an Indiana man was sentenced to 20 years imprisonment for setting a fire at the Islamic Center of Greater Toledo.
FEMA and the Department of Justice have produced a number of materials to help congregations, community organizations and local law enforcement and fire safety officials to increase arson awareness and hold events highlighting proactive steps that can be taken to try to reduce house of worship arson. These materials are available at the Arson Awareness Week homepage, www.usfa.fema.gov/aaw.
“Arson against houses of worship is a serious crime that the Department of Justice is committed to prosecuting to the fullest extent of the law,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “But our role as prosecutors, while critically important, only comes after the fact when the damage is already done. That is why we encourage communities and local officials to take proactive steps to increase public awareness of the problem and measures that can be taken to reduce the likelihood of being a victim of house of worship arson.”
Further information about hate crimes, including arsons against on places of worship, is available at the Civil Rights Division hate crimes page, https://www.justice.gov/crt/hate-crimes-0.
Arizona Man Sentenced to 18 Months in Federal Prison for Marijuana ConspiracyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that Luis Fernando Enciso-Ulloa, 58, was sentenced Friday morning by United States Chief District Judge Michael J. Reagan to 18 months in federal prison for one count of conspiring to distribute and possess with the intent to distribute marijuana, three years of supervised release to follow the imprisonment, a $300 fine, and a $100 special assessment fee.
Facts revealed in open court at the sentencing and plea hearings revealed that Enciso-Ulloa packaged and shipped four packages of marijuana weighing 22 pounds each from Nogales, Arizona to Belleville, Illinois, and agreed to help find a buyer for approximately 13 pounds of marijuana in 2014 and 2015. Enciso-Ulloa was charged in February 2016 and pled guilty in January 2017. This was Enciso-Ulloa’s seventh drug conviction. In sentencing Enciso-Ulloa to 18 months of imprisonment, 3 years of supervised release, a $300 fine and a $100 special assessment fee, Chief Judge Reagan indicated that this sentence punishes Enciso-Ulloa, promotes respect for the law and serves to deter the public and Enciso-Ulloa from committing drug crimes.
Evidence in support of this prosecution was obtained in an investigation conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking
organizations. Agencies participating in this case include the Drug Enforcement Administration, the Internal Revenue Service, Criminal Investigations, the Illinois State Police, and Fontana, California Police Department. This case was prosecuted by Assistant United States Attorney Monica A. Stump.
Allegany County Man Pleads Guilty to Sexual Exploitation of a Minor to Produce Child PornographyRead the Press Release
Baltimore, Maryland – Jason Wayne Hines, age 37, formerly of Cumberland, Maryland, pleaded guilty today to sexually exploiting a child to produce child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Baltimore; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Allegany County State’s Attorney Michael O. Twigg.
According to his plea agreement, on January 29 and February 1, 2016, during an undercover investigation, Maryland State Police officers downloaded two videos of minors engaged in sexually explicit conduct from Hines’ computer, which he was sharing over the internet. On May 3, 2016, a search warrant was executed at Hines’ residence. An on-scene forensic analysis of Hines’ laptop computer recovered images and videos depicting minors engaged in sexually explicit conduct. Hines was arrested on state criminal charges for distribution and possession of child pornography.
Forensic examination of Hines’ computers, storage media, and cell phone seized during the search revealed over 1,000 images and over 50 videos of child pornography. Hines’ internet search history also showed an interest in sexual activity with minors. Investigators recovered 23 images created between October 3, 2015 and February 28, 2016, and five videos from Hines’ smartphone. The five videos did not have create dates, but depicted Hines sexually abusing a prepubescent female as she is sleeping. The images recovered from the phone also document Hines’ sexual abuse of the child.
As part of his plea agreement, Hines must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Hines and the government have agreed that if the Court accepts the plea agreement Hines will be sentenced to between 17 ½ and 25 years in prison, followed by a lifetime of supervised release. U.S. District Judge Richard D. Bennett has scheduled sentencing for July 18, 2017, at 3:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI-Baltimore, Maryland State Police, and Allegany County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Sandra Wilkinson, who are prosecuting the federal case.
Albuquerque Man Sentenced to Prison for Failing to Update his Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Douglas Humilestewa, 53 of Albuquerque, N.M., was sentenced today in federal court to 30 months in prison followed by five years of supervised release for violating the Sex Offender Registration and Notification Act (SORNA). Humilestewa will be required to register as a sex offender when he completes his prison sentence.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Humilestewa was charged by indictment on Feb. 9, 2016, with violating SORNA by failing to update his sex offender registration on Nov. 15, 2015 or thereafter. According to the indictment, Humilestewa was required to maintain an updated sex offender registration while residing in Bernalillo County, N.M.
On Dec. 1, 2016, Humilestewa pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the U.S. Marshals Service and was prosecuted by Assistant U.S. Attorney David M. Walsh.
Acting Manhattan U.S. Attorney Announces Compensation Program for Absolute Poker Victim PlayersRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that the United States has retained the Garden City Group (“GCG”) to oversee a process for compensating eligible victims of a fraud committed by Absolute Poker against United States players who were unable to withdraw funds from Absolute Poker following the Office’s filing in 2011 of a civil money laundering and forfeiture action against Absolute Poker and others in United States v. PokerStars, et al.
GCG is already overseeing the claims process for eligible victims of the fraud committed by Full Tilt Poker against United States players, as described in both United States v. PokerStars, et al., and the indictment in the parallel criminal case, United States v. Bitar, et. al. To date, approximately $118 million has been paid to Full Tilt Poker fraud victims through that process.
Background
In July 2012, the United States entered into settlement agreements with Full Tilt Poker and PokerStars – two of the three online poker companies named as defendants in a civil forfeiture action brought by the United States alleging bank fraud, wire fraud, money laundering, and illegal gambling offenses. On July 16, 2013, the third online poker company named in the complaint, Absolute Poker, along with certain of its affiliates, entered into a settlement agreement in which they also agreed to the forfeiture of their assets. Under the terms of the July 2012 settlement with Full Tilt Poker, the company agreed to forfeit virtually all of its assets to the United States (the “Forfeited Full Tilt Assets”) in order to fully resolve the action. The amended complaint filed in that action alleged that Full Tilt Poker defrauded its players by misrepresenting to the public that player funds held by Full Tilt Poker were safe, secure, and available for withdrawal at any time. In reality, the company did not maintain funds sufficient to repay all of its players and instead used player funds to finance more than $400 million in dividend payments to Full Tilt Poker’s owners.
Under the terms of the settlement with PokerStars (the “PokerStars Settlement”), the company agreed, among other things, to forfeit $547 million to the United States (the “Forfeited Poker Funds”) and to assume Full Tilt Poker’s liability for the approximately $184 million owed by Full Tilt to foreign players. The PokerStars Settlement also provided that PokerStars will acquire the Forfeited Full Tilt Assets from the Government and also precludes PokerStars from offering online poker for real money in the United States unless and until it becomes permissible to do so under relevant law.
The Full Tilt Poker Claims Process
Pursuant to the regulations governing remission, the Department of Justice may use forfeited funds to compensate victims of a charged criminal offense or a related offense that was the underlying basis for forfeiture.
Using a portion of the Forfeited Poker Funds, the Department of Justice established a process (the “FTP Claims Process”) by which eligible U.S. victims of Full Tilt Poker were able to seek compensation for their losses. GCG was selected as Claims Administrator by the United States to process claims submitted by the U.S. Full Tilt fraud victims.
GCG is a class action settlement and bankruptcy administration company that has provided comprehensive legal administration services for nearly 30 years. GCG has worked on numerous complex administrations, including the U.S. Victims of State-Sponsored Terrorism Fund; the Gulf Coast Claims Facility; the Deepwater Horizon Economic and Property Damage Settlement; the Visa Check/MasterMoney Antitrust Litigation; the WorldCom Securities Litigation; and the IPO Securities Litigation.
The FTP Claims Process was announced in March 2013 and is winding down. GCG received and reviewed 53,220 claims submitted by U.S. Full Tilt fraud victims during the claims period. To date, 44,320 claims have been approved for payment and approximately $118,116,918.04 has been paid to U.S. Full Tilt fraud victims.
The Absolute Poker Claims Process
As alleged in the operative forfeiture complaints and indictments in this case, the three online poker companies, including Absolute Poker, and their principals, conspired with one another, and others, such as payment processors who worked with multiple poker companies, to carry out the offense conduct that served as the basis for the forfeiture of the Forfeited Poker Funds.
Additionally, the Department of Justice has concluded that players of Absolute Poker who were unable to recover their funds from Absolute Poker are similarly situated to the eligible victims of Full Tilt Poker, in that Absolute Poker, like Full Tilt Poker, did not maintain funds sufficient to repay all of its players.
Accordingly, remaining Forfeited Poker Funds will be used to fund a claims process for eligible Absolute Poker victims.
That victim claims process will begin shortly. Information about the claims administration will be posted on the dedicated website GCG has established in connection with the victim compensation process, www.AbsolutePokerClaims.com. Information is also available from the toll-free hotline number at (855) 907-3254.
This aspect of the matter is being handled by the Office’s Money Laundering and Asset Forfeiture Unit.
ADA Settlement Agreement Entered Between United States Attorney’s Office and Local RestaurantRead the Press Release
Steve Butler, Acting United States Attorney for the Southern District of Alabama, announces the successful resolution of complaints made by a person with disabilities who could not access a local restaurant. The United States Attorney’s Office recently entered into a settlement agreement with the owner and operator of Old 27 Grill in Fairhope.
The office opened its investigation after receiving complaints that people with mobility disabilities were unable to access the restaurant. As a result of the settlement, the restaurant has agreed to add an ADA-compliant bathroom, accessible parking, tables, and routes throughout the restaurant. The restaurant also adopted policies which require providing dining assistance to persons who are deaf, hard of hearing, blind, and people with mobility disabilities. Service dog policies were also adopted. Staff training is required by the agreement.
Acting United States Attorney Butler said, “After being notified of the investigation, the owner of Old 27 Grill eventually chose to do the appropriate thing, removing the barriers which prevented persons with disabilities from enjoying the restaurant. Not only is this required by law, but it’s also great for business. With more than 55 million persons with disabilities in our country, the restaurant has the potential for much more business.”
This matter was handled by Assistant United States Attorney Holly L. Wiseman.
For more information, visit www.ada.gov or our office’s website at http://www.justice.gov/usao/als/civil/cre.html”. Any person with a disability who believes they have been discriminated against in the Southern District of Alabama may contact our office at 63 South Royal Street, Suite 600, Mobile, AL 36602, telephone us at 251.441.5845 or file a complaint with the U. S. Department of Justice, 950 Pennsylvania Avenue, NW, Civil Rights Division, Disability Rights Section, Washington, DC 20530.
Saturday 8 April 2017
Oswego County Prevention Coalition and United States Attorney’s Office to Screen Opiate Drugs Documentary in Oswego on Tuesday Evening April 11, 2017Read the Press Release
SYRACUSE, NEW YORK - In response to the growing epidemic of prescription drug and heroin abuse, the Oswego County Prevention Coalition and the United States Attorney’s Office for the Northern District of New York are jointly sponsoring a community event April 11th at the Oswego Elks Lodge.
The evening begins at 5:30 PM with agency resource tables and will feature a 6:30 PM showing of “Chasing the Dragon,” a 45-minute documentary film that profiles the stories of real people and their families experiencing opiate addiction, loss and treatment. Created by the Federal Bureau of Investigation (FBI) and Drug Enforcement Administration (DEA), “Chasing the Dragon” profiles the cycle of addiction and looks at the tragic consequences associated with opioid abuse. Immediately following the film will be an interactive community panel discussion focusing on the local response in Oswego to the epidemic of opiate drug addiction.
April 11, 2017 – Anti-Opiate/Heroin Community Event
5:30 PM resource tables
6:30 – 8:30 PM “Chasing the Dragon” Documentary and Community Panel
Oswego Elks Lodge, 132 West 5th Street, Oswego, NY 13126
United States Attorney Richard S. Hartunian said, “The opioid drug epidemic has afflicted communities, families, and individuals throughout the thirty-two counties of the Northern District of New York and across the nation. My office will continue to work with local drug coalitions to bring ‘Chasing the Dragon: the Life of an Opiate Addict’ and its powerful prevention message to a wide audience. Only by working together to prevent the tragedy of addiction and loss, can we begin to overcome this grave threat to public health and safety.”
The documentary features interviews with former addicts and their families discussing the effects of addiction, and how the opiate epidemic is unlike any this country has seen in the past. Also included are medical and law enforcement professionals discussing opiate drugs and the current crisis. “Chasing the Dragon” provides a vivid and thought provoking message of prevention and includes strong language and graphic images suitable for children age 12 and up.
Friday 7 April 2017
Woonsocket Resident Sentenced for Possessing Child PornographyRead the Press Release
PROVIDENCE - Jose Marquez Escarcega, 29, of Woonsocket, today was sentenced yesterday to 60 months in federal prison for possession of child pornography, announced Acting United States Attorney Stephen G. Dambruch; Rhode Island State Police Superintendent Ann C Assumpico; and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Escarcega to serve 20 years supervised release upon completion of his term of incarceration. Escarcega pleaded guilty on October 31, 2016, to one count of possession of child pornography, as charged in a federal indictment returned on December 3, 2015.
According to information presented to the court, in July 2014, the National Center for Missing and Exploited Children notified the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force that someone at Escarcega’s residence downloaded child pornography. Based on information developed during a subsequent investigation by the ICAC Task Force and HSI, a court authorized search was executed on October 2, 2014, at Escarcega’s residence.
A forensic analysis of a computer owned by Escarcega and seized by investigators revealed approximately 450 images and 40 videos of child pornography. Additionally, investigators recovered evidence that Escarcega had contacted and paid an individual in the Philippines to provide him with a live video feed as a prepubescent female was molested.
Assistant U.S. Attorney Terrence P. Donnelly prosecuted the case.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
William T. “Billy” Walters Convicted in Manhattan Federal Court of Insider TradingRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that WILLIAM T. WALTERS, a/k/a “Billy,” was found guilty on all 10 counts of conspiracy, securities fraud, and wire fraud charges after a four-week trial before U.S. District Judge P. Kevin Castel relating to his scheme to commit insider trading from 2008 through 2014, principally relating to securities of Dean Foods Company (“Dean Foods” or the “Company”).
Acting U.S. Attorney Joon H. Kim said: “Today, Billy Walters lost his bet that he could cheat the securities markets on a massive scale and get away with it scot-free. As a unanimous jury swiftly found, Walters received inside information about Dean Foods for years – directly from one its board members – and illegally traded on it, netting over $43 million. Armed with his illegal edge, Walters made huge, perfectly-timed trades, at times accounting for over a third of the trading volume in Dean Foods stock. In engaging in his years-long stock fraud scheme, Walters underestimated law enforcement’s resolve to pursue and catch those who cheat the market. The integrity of the American financial markets is a bedrock principle upon which our economy and justice system relies, and this Office and our partners at the FBI are as committed as ever to protecting it.”
According to the allegations in the charging documents and statements made in court proceedings:
From 2008 through 2014, WALTERS and Thomas C. Davis, among others, participated in a scheme to commit insider trading principally related to securities of Dean Foods, a Fortune 500 company that is the largest processor and distributor of fresh milk in the United States. Davis pled guilty to insider trading, perjury, and obstruction of justice charges on May 16, 2016 and has been cooperating with the investigation.
From 2001 until August 7, 2015, Davis served as a member of the Board of Directors of Dean Foods (the “Board”), and regularly possessed material, nonpublic information about Dean Foods, including about the Company’s financial performance and results, comprising quarterly earnings results; contemplated and actual corporate transactions; and other significant corporate and strategic developments (the “Inside Information”). In furtherance of the scheme, Davis violated his duties of trust and confidence to Dean Foods by providing Inside Information to WALTERS in advance of public announcements. WALTERS, knowing that Davis owed duties of trust and confidence to the Company, used the Inside Information to execute profitable trades in Dean Foods stock. In total, WALTERS’ trading on the basis of Inside Information netted realized and unrealized profits of approximately $32 million and avoided additional losses of approximately $11 million. In return for Davis providing the Inside Information to WALTERS, WALTERS, among other things, provided capital to Davis for joint business ventures and made two loans to Davis for approximately $1 million in total, which Davis largely did not repay.
In furtherance of the scheme, and to avoid detection by law enforcement, WALTERS provided Davis with a prepaid cellular phone to use when passing Inside Information to WALTERS. Moreover, WALTERS further instructed Davis to use code words when discussing the Inside Information, including by referring to Dean Foods as the “Dallas Cowboys.”
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WALTERS, 70, of Las Vegas, Nevada, was convicted of one count of conspiracy to commit securities fraud, four counts of securities fraud, one count of conspiracy to commit wire fraud, and four counts of wire fraud. Count One carries a maximum sentence of five years in prison. Counts Two through 10 each carry a maximum sentence of 20 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence for WALTERS will be determined by the judge. WALTERS will be sentenced by Judge Castel on July 14, 2017.
Mr. Kim praised the work of the FBI and the Postal Inspection Service, and thanked the SEC and the Financial Industry Regulatory Authority (“FINRA”) for their assistance. He also thanked the Las Vegas offices of the FBI and the Internal Revenue Service, Criminal Investigation Division.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brooke E. Cucinella, Daniel S. Goldman, and Michael Ferrara are in charge of the prosecution.
Waterbury Grocery Store Worker Sentenced to 30 Months in Federal Prison for Food Stamp FraudRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RAUL CARLOS MONARCA-GONZALEZ, 40, last residing in Waterbury, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 30 months of imprisonment, followed by three years of supervised release, for food stamp fraud offenses.
The federal Supplemental Nutrition and Assistance Program (“SNAP”) is administered by the USDA’s Food and Nutrition Service and utilizes federal tax dollars to subsidize low-income households to provide them with the opportunity to achieve a more nutritious diet by increasing their food-purchasing power. SNAP recipients purchase eligible food items at retail food stores through the use of an Electronic Benefits Transfer (EBT) card, and SNAP benefits may be accepted by authorized retailers only in exchange for eligible items. Items such as alcoholic beverages, cigarettes, paper goods and soaps are not eligible for purchase with Food Stamp benefits, and it is a violation of the rules and regulations governing the food stamp program to allow benefits to be used to purchase ineligible items. SNAP benefits may not lawfully be exchanged for cash under any circumstances. The program is designed so that the total amount of each purchase is electronically transferred to the retailer’s designated bank account.
According to court documents, MONARCA worked at WB Trade Fair Grocery, located at 43 Willow Street in Waterbury. From November 2014 until June 2016, MONARCA and others illegally allowed customers to redeem their food stamp benefits for cash and other ineligible items.
Given the stock of eligible food items at the store, the number of registers and the customer amenities, it is estimated that WB Trade Fair Grocery could lawfully redeem at most between $120,000 to $240,000 per year in food stamp benefits. However, during this approximately 18-month period, food stamp redemptions at the store totaled approximately $3.2 million.
MONARCA was ordered to pay restitution in the amount of $1,550,756.
MONARCA has been detained since his arrest on August 18, 2016. On November 28, 2016, he pleaded guilty to one count of unlawful use of food stamp benefits and one count of conspiracy to commit food stamp fraud.
MONARCA, a citizen of Mexico, faces immigration proceedings at the conclusion of his prison term.
This matter was investigated by the U.S. Department of Agriculture, Office of Inspector General, and is being prosecuted by Assistant U.S. Attorneys Anastasia King and Neeraj Patel.
Ventura County Man Indicted by Federal Grand Jury for Allegedly Producing Child Pornography Involving 6-Year-Old GirlRead the Press Release
LOS ANGELES – A Simi Valley man was indicted today by a federal grand jury on charges of producing child pornography in a case involving a 6-year-old girl.
Eric Allen Haensgen, 38, who until August 2015 lived in Huntley, Illinois, is also charged with distributing and possessing child pornography.
The indictment alleges that Haensgen produced still photos and videos of the young victim. Investigators found 83 images and three videos of a 6-year-old girl that had been shot with Haensgen’s iPhone and downloaded to a computer, according to court documents.
Haensgen allegedly distributed over the BitTorrent Network other examples of child pornography he obtained from the internet.
Haensgen was arrested on March 24 by special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) after federal prosecutors filed a criminal complaint that accused him of one count of producing child pornography.
Haensgen is scheduled to be arraigned on the indictment on April 13 in United States District Court. Haensgen remains in custody without bond.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The charge of producing child pornography carries a mandatory minimum penalty of 15 years in federal prison and a statutory maximum sentence of 30 years. The charge of distributing child pornography carries a mandatory minimum sentence of five years and a maximum sentence of 20 years. The charge of possessing child pornography carries a statutory maximum sentence of 20 years in federal prison.
This case is being prosecuted by Assistant United States Attorney Vanessa Baehr-Jones of the Violent and Organized Crime Section.
Two Kansas Men Charged with Shooting EagleRead the Press Release
WICHITA, KAN. - Two Kansas men were charged Thursday with shooting and killing a golden eagle, U.S. Attorney Tom Beall said.
Michael Dusin, 22, Phillipsburg, Kan., and Elijah J. Kuhlman, 22, Sharon Springs, Kan., are charged with violating the federal Bald and Golden Eagle Protection Act. According to court documents, it is alleged the two defendants were driving around in Wallace County when they saw what they later described as a large, black bird. Dusin told Kuhlman to back up so he could take a shot at the bird. Dusin shot the bird and it fell to the ground.
On Dec. 12, 2016, a natural resource officer with the Kansas Department of Wildlife, Parks and Tourism investigating a report of a dead Eagle found the eagle’s remains in a field and two spent shotgun shells in the road. With the help of the Wallace County Sheriff, investigators identified a Ford F-150 pickup belonging to Kuhlman that had been seen in the area. An autopsy performed at the U.S. Fish and Wildlife Services’ Wildlife Forensics Laboratory in Ashland, Ore., confirmed the Eagle’s remains contained 41 metal pellets.
If convicted, the defendants face up to a year in federal prison and a fine up to $100,000. The Kansas Department of Wildlife, Parks and Tourism, the Wallace County Sheriff and U.S. Fish and Wildlife Service investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Two Indicted for Allegedly Trafficking 5 Kilos of CocaineRead the Press Release
PROVIDENCE – A federal grand jury in Providence on Thursday returned a two-count indictment charging Willy D. Espinal, 32, and Laura G. Martinez, 23, of Providence, with trafficking 5 kilograms of cocaine worth an estimated $150,000, announced Acting United States Attorney Stephen G. Dambruch and Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police.
Rhode Island State Police arrested Espinal and Martinez on February 21, 2017, after troopers allegedly discovered 5 kilos of cocaine hidden inside an electronically controlled “hide” below a rear passenger compartment of a vehicle operated by Espinal. Troopers were alerted to the alleged presence of narcotics inside the vehicle by a certified narcotics detection K-9, after a trooper discovered that the vehicle had been altered consistent with the construction of a “hide.” The vehicle, in which Martinez was a passenger, was stopped on Rte. 95 in West Warwick for a minor traffic violation.
Espinal and Martinez, first ordered held on Rhode Island state charges brought in this matter, have been detained in federal custody since their initial appearance in federal court on April 5, 2017.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
Homeland Security Investigations assisted Rhode Island State Police in bringing this matter to the U.S. District Court for prosecution.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Twenty-Five Tri-City Bombers Gang Members and Associates Indicted on Federal Racketeering, Drug Distribution and Money Laundering ChargesRead the Press Release
A grand jury sitting in Houston returned a 27-count superseding indictment against 25 Tri-City Bombers (TCB) gang members and associates in a conspiracy involving racketeering, drug distribution, money laundering, robbery and discharge of a firearm resulting in death.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office and Special Agent in Charge D. Richard Goss of IRS - Criminal Investigation’s (CI) Houston Field Office made the announcement.
A 27-count superseding indictment was returned by a grand jury on March 30, 2017, and unsealed in its entirety yesterday in the U.S. District Court of the Southern District of Texas.
According to court documents, the TCB is a national gang active in multiple states that was formed in the early 1980s in the Pharr, San Juan and Alamo areas of South Texas. TCB has an organized decision-making hierarchy, including a person in charge of each city, and leaders within the organization who determined whether its members violated the gang’s rule and deserved punishment. To instill loyalty, including participation in gang’s criminal activities and adherence to its strict rule structure, TCB leaders determined and ordered the severe beating of members and associates for acts of disobedience or non-observance of the TCB’s rules.
The scope of the TCB’s crimes is wide-ranging and consistent in its nationwide operation. The RICO conspiracy charged here includes murder, attempted murder, drug trafficking, firearms crimes, money laundering and other crimes in furtherance of the organization’s enterprise. In Texas, for example, the TCB brought money into the gang through drug trafficking, home invasion robberies and money laundering.
The indictment alleges that from January 2009 and continuing through March 2017, TCB members and associates engaged in a variety of racketeering activities, including murder, attempted murder, robbery and drug trafficking. TCB members and associates allegedly coordinated the transportation and sale of cocaine, marijuana, methamphetamine and heroin from South Texas to Atlanta, Georgia, Ft. Wayne, Indiana, St. Louis, Missouri, and other cities nationwide. The indictment also alleges that TCB members committed a home invasion robbery for the purpose of stealing controlled substances, during which the home owner was shot to death.
The 19 defendants charged for their alleged roles in the RICO conspiracy are Mike Bueno, aka Mocho, 45, of Edinburg/Alamo, Texas; Eduardo Hernandez, aka Lepo, 36, of Donna, Texas; Arturo Ramirez Jr., aka China, 41, of Weslaco/San Juan, Texas; Jose Rolando Gonzalez, aka Rollie, 38, of Alton, Texas; Ernesto Alonzo Ruiz, aka Gallito, 38, of Raymondville, Texas; Hipolito Gonzalez, aka Pollie, 34, of Mission, Texas; Israel Gonzalez, aka Rayo, 34, of Pharr, Texas; Rolando Cruz, aka Party, 45, of Edinburg/Mission, Texas; Jesus Silva, aka Bola, 42, of San Juan, Texas; Luis Antonio Saldivar, aka Flaco, 25, of Mission, Texas; Octavio Muniz, aka Tavo, 40, of Pharr/Edinburg, Texas; Joseph Alberto Lopez, 33, of Donna, Texas; Margil Reyna, Jr., aka Mikeo, 32, formerly of Alamo, Texas, now of Toledo, Ohio; Joshua Omar Santillan, 35, of Donna, Texas; Roberto Cortez, aka Robe, 35, of Pharr/San Juan, Texas; Rene Vela, aka Gordo, 47, of Edinburg/McAllen, Texas; Carlos de la Rosa, aka Charlie, 40, of San Juan, Texas, Ernesto Saenz, aka Tuerto, 26, of McAllen, Texas; and Luis Alberto Tello, aka Wicho, 36, of Mercedes, Texas.
The superseding indictment also charges conspiracies to distribute cocaine, marijuana and methamphetamine, money laundering conspiracy, robbery, discharge of a firearm in the course of a violent crime resulting in death, and multiple instances of possession of controlled substances with the intent to distribute. Multiple racketeering conspiracy defendants are charged with each of these offenses. In addition, Daniel Saenz, 32, of Donna, Texas, is charged with conspiracy to distribute cocaine. De la Rosa; Ricardo Ortega, 34, of Edinburg, Texas; and Veronica Chavez, 38, of Mesquite/Brownsville, Texas, are charged with conspiracy to distribute marijuana and possession with intent to distribute marijuana. Ivan Rodriguez, 33, of McAllen, Texas, and Ciro Moya, 39, of Olivia, Minnesota, are charged with conspiracy to distribute methamphetamine. Roberto Reyes, aka Pelon, 31, of Pharr, Texas, is charged with possession with intent to distribute cocaine.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI and IRS-CI are investigating the case along with the Drug Enforcement Administration, Customs and Border Protection, Texas Alcoholic Beverage Commission, Hidalgo County Sheriff’s Office and police departments in McAllen, Mission, Edinburg, Weslaco and Pharr, Texas.
Assistant U.S. Attorneys Anibal J. Alaniz and Casey N. MacDonald of the Southern District of Texas and Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
Tri-City Bombers Gang Members and Associates Indicted on Federal Racketeering, Drug Distribution, and Money Laundering ChargesRead the Press Release
HOUSTON - A grand jury sitting in Houston returned a 27-count superseding indictment against 25 Tri-City Bombers (TCB) gang members and associates in a conspiracy involving racketeering, drug distribution, money laundering, robbery and discharge of a firearm resulting in death.
Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office and Special Agent in Charge D. Richard Goss of IRS - Criminal Investigation (CI) - Houston Field Office made the announcement.
A 27-count superseding indictment was returned by a grand jury on March 30, 2017, and unsealed in its entirety today in the U.S. District Court of the Southern District of Texas.
According to court documents, the TCB is a national gang active in multiple states that was formed in the early 1980s in the Pharr, San Juan and Alamo areas of South Texas. TCB has an organized decision-making hierarchy, including a person in charge of each city, and leaders within the organization who determined whether its members violated the gang’s rule and deserved punishment. To instill loyalty, including participation in gang’s criminal activities and adherence to its strict rule structure, TCB leaders determined and ordered the severe beating of members and associates for acts of disobedience or non-observance of the TCB’s rules.
The scope of the TCB’s crimes is wide-ranging and consistent in its nationwide operation. The RICO conspiracy charged here includes murder, attempted murder, drug trafficking, firearms crimes, money laundering and other crimes in furtherance of the organization’s enterprise. In Texas, for example, the TCB brought money into the gang through drug trafficking, home invasion robberies and money laundering.
The indictment alleges that from January 2009 and continuing through March 2017, TCB members and associates engaged in a variety of racketeering activities, including murder, attempted murder, robbery and drug trafficking. TCB members and associates allegedly coordinated the transportation and sale of cocaine, marijuana, methamphetamine and heroin from South Texas to Atlanta, Georgia, Ft. Wayne, Indiana, St. Louis, Missouri, and other cities nationwide. The indictment also alleges that TCB members committed a home invasion robbery for the purpose of stealing controlled substances, during which the home owner was shot to death.
The 19 defendants charged for their alleged roles in the RICO conspiracy are Mike Bueno, aka Mocho, 45, of Edinburg/Alamo; Eduardo Hernandez, aka Lepo, 36, Joseph Alberto Lopez, 33, and Joshua Omar Santillan, 35, all of Donna; Arturo Ramirez Jr., aka China, 41, of Weslaco/San Juan; Jose Rolando Gonzalez, aka Rollie, 38, of Alton; Ernesto Alonzo Ruiz, aka Gallito, 38, of Raymondville; Hipolito Gonzalez, aka Pollie, 34, of Mission; Luis Antonio Saldivar, aka Flaco, 25, of Mission; Israel Gonzalez, aka Rayo, 34, of Pharr; Rolando Cruz, aka Party, 45, of Edinburg/Mission; Jesus Silva, aka Bola, 42, of San Juan; Carlos de la Rosa, aka Charlie, 40, of San Juan; Octavio Muniz, aka Tavo, 40, of Pharr/Edinburg; Margil Reyna, Jr., aka Mikeo, 32, formerly of Alamo, now of Toledo, Ohio; Roberto Cortez, aka Robe, 35, of Pharr/San Juan; Rene Vela, aka Gordo, 47, of Edinburg/McAllen; Ernesto Saenz, aka Tuerto, 26, of McAllen; and Luis Alberto Tello, aka Wicho, 36, of Mercedes.
The superseding indictment also charges conspiracies to distribute cocaine, marijuana and methamphetamine, money laundering conspiracy, robbery, discharge of a firearm in the course of a violent crime resulting in death and multiple instances of possession of controlled substances with the intent to distribute. Multiple racketeering conspiracy defendants are charged with each of these offenses. In addition, Daniel Saenz, 32, of Donna, is charged with conspiracy to distribute cocaine. De la Rosa, Ricardo Ortega, 34, of Edinburg, and Veronica Chavez, 38, of Mesquite/Brownsville, are charged with conspiracy to distribute marijuana and possession with intent to distribute marijuana. Ivan Rodriguez, 33, of McAllen, and Ciro Moya, 39, of Olivia, Minnesota, are charged with conspiracy to distribute methamphetamine. Roberto Reyes, aka Pelon, 31, of Pharr, is charged with possession with intent to distribute cocaine.
The FBI and IRS-CI are investigating the case along with the Drug Enforcement Administration, Customs and Border Protection, Texas Alcoholic Beverage Commission, Hidalgo County Sheriff’s Office and police departments in McAllen, Mission, Edinburg, Weslaco and Pharr, Texas.
Assistant U.S. Attorneys Anibal J. Alaniz and Casey N. MacDonald of the Southern District of Texas and Trial Attorney Catherine K. Dick of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Topeka Man Charged in Two RobberiesRead the Press Release
KANSAS CITY, KAN. - A Topeka man has been arrested and charged in two robberies, U.S. Attorney Tom Beall said Friday.
The Topeka Police Department assisted the FBI in arresting Joshua Alexander Musgraves, 24, Topeka, Kan., who is charged with two counts of commercial robbery. An indictment filed in U.S. District court in Topeka alleges that on Jan. 6, 2017, Musgraves robbed Plato’s Closet, a clothing store at 1580 S.W. Wanamaker Road in Topeka. The indictment also alleges that on Jan. 20, 2017, Musgraves robbed Kentucky Fried Chicken at 1812 N.W. Topeka Boulevard in Topeka.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000 on each count. The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Toledo men arrested and charged with sex trafficking of childrenRead the Press Release
The Federal Bureau of Investigation (FBI), Cleveland Division, Toledo Resident Agency, and the United States Attorney’s Office, Northern District of Ohio, announce the arrest of Cordell Jenkins, age 46, and Anthony Haynes, age 37, pursuant to a federal complaint and arrest warrant for sex trafficking of children.
Agents placed Jenkins and Haynes into custody early this morning at their residences in Toledo without incident. Additional law enforcement activity occurred today in regards to this ongoing investigation.
Jenkins and Haynes are accused of knowingly recruiting, enticing, harboring, transporting, providing or obtaining a person(s) that the defendants knew was less than eighteen years old to engage in commercial sex acts. In addition to the above, Haynes is also being charged with Obstruction of Justice and Jenkins is being charged with sexual exploitation of children. Both men will have their initial appearance in U.S. District Court later today.
A complaint is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
This investigation was conducted by the FBI’s Northwest Ohio Violent Crimes Against Children Task Force. The Task Force is comprised of members of the FBI, Toledo Police Department, Perrysburg Township Police Department, Lima Police Department, Oregon Police Department, Fulton County Sheriff’s Office, Ottawa County Sheriff’s Office, Ohio State Highway Patrol, the Bureau of Criminal Investigation and Lucas County Sheriff’s Office.
Tax Preparer Sentenced to 84 Months in Prison in $1.2 Million Tax Refund Fraud SchemeRead the Press Release
TALLAHASSEE, FLORIDA – Jorge Maldonado, 52, of Oviedo, Florida, has been sentenced to 84 months in prison and ordered to pay $1,203,073 in restitution for conspiracy, wire fraud, theft of government property, and aggravated identity theft. His three tax fraud conspirators are scheduled to be sentenced later this month. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The co-defendants are:
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Jennifer Maldonado, 29, of Oviedo, sentencing set for April 19 at 10:00 a.m.;
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Sharon Glover, 55, of Sanford, Florida, sentencing set for April 20 at 2:00 p.m.; and
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Diane White, 54, of Sanford, sentencing set for April 20 at 10:00 a.m.
In July 2016, a federal jury convicted the Maldonados of conspiracy, wire fraud, theft of government property, and aggravated identity theft. Co-conspirators Glover and White pled guilty in February 2016 to conspiracy, theft of government property, and aggravated identity theft.
During the six-day trial, the government presented evidence that, between 2009 and 2011, Jorge Maldonado and his daughter Jennifer, who were both tax preparers, conspired with Glover and White to obtain more than $1.2 million in income tax refunds issued on fraudulent tax returns. The Maldonados filed fraudulent returns that generated refunds. Glover and White cashed refund checks issued as a result of the fraudulent returns. They deposited cash proceeds of the checks into the Maldonados’ bank accounts or delivered the cash to the Maldonados. Glover and White cashed 505 checks by using fraudulent powers of attorney, approximately 16 different forged notary seals, and forged taxpayer signatures.
United States Attorney Canova said: “When fraudsters submit fraudulent tax returns, they are actually stealing from the millions of honest taxpayers who fulfilled their tax obligations accurately and on time. My office is committed to working with our law enforcement partners, such as the Internal Revenue Service, to ensure that tax dollars are used for their intended purpose.”
IRS-Criminal Investigation Tampa Special Agent in Charge Mary Hammond said: “When Jorge and Jennifer Maldonado used their tax return preparation service to steal client identities and make a fast buck for themselves and their co-conspirators, they underestimated the special agents of IRS Criminal Investigation. IRS-CI works diligently to protect the American tax system and root out criminals who prey on unsuspecting taxpayers. ”
This case resulted from an investigation by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorneys Herbert S. Lindsey and Gary K. Milligan prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer-
Statement of Attorney General Jeff Sessions on the District Court's Entry of Baltimore Consent DecreeRead the Press Release
Attorney General Sessions released the following statement on the District Court’s entry of the Baltimore consent decree:
“Today, a federal court entered a consent decree that will require the court and a highly-paid monitor to govern every detail of how the Baltimore Police Department functions for the foreseeable future. This decree was negotiated during a rushed process by the previous administration and signed only days before they left office. While the Department of Justice continues to fully support police reform in Baltimore, I have grave concerns that some provisions of this decree will reduce the lawful powers of the police department and result in a less safe city.
“Make no mistake, Baltimore is facing a violent crime crisis.
“Baltimore has seen a 22 percent increase in violent crime in just the last year. While arrests in the city fell 45 percent based on some of these ill-advised reforms, homicides rose 78 percent and shootings more than doubled. Just in 2017, we’ve seen homicides are up another 42 percent compared to this time last year. In short, the citizens of Baltimore are plagued by a rash of violent crime that shows no signs of letting up.
“The mayor and police chief in Baltimore say they are committed to better policing and that there should be no delay to review this decree, but there are clear departures from many proven principles of good policing that we fear will result in more crime. The citizens of Baltimore deserve to see a real and lasting reduction in the fast-rising violent crime threatening their city.
“The Department of Justice stands ready to work with Baltimore to fight violent crime and improve policing in the city.”
Statement of Acting U.S. Attorney Joon H. Kim on the Conviction of William T. Walters for Insider TradingRead the Press Release
“Today, Billy Walters lost his bet that he could cheat the securities markets on a massive scale and get away with it scot-free. As a unanimous jury swiftly found, Walters received inside information about Dean Foods for years – directly from one its board members – and illegally traded on it, netting over $43 million. Armed with his illegal edge, Walters made huge, perfectly-timed trades, at times accounting for over a third of the trading volume in Dean Foods stock. In engaging in his years-long stock fraud scheme, Walters underestimated law enforcement’s resolve to pursue and catch those who cheat the market. The integrity of the American financial markets is a bedrock principle upon which our economy and justice system relies, and this Office and our partners at the FBI are as committed as ever to protecting it.”
Springfield Woman Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., woman was sentenced in federal court today for her role in a conspiracy to distribute 24 pounds of methamphetamine that was shipped from California.
Lisa Renae Thompson, 39, of Springfield, was sentenced by U.S. District Judge Roseann Ketchmark to 11 years and three months in federal prison without parole.
On Dec. 13, 2016, Thompson pleaded guilty to participating in a conspiracy to distribute methamphetamine from June 1 through Sept. 11, 2015. Co-defendant Michael E. Ford, 37, of Springfield, also has pleaded guilty to his role in the drug-trafficking conspiracy and awaits sentencing. Ford also pleaded guilty to possessing a firearm in furtherance of that drug-trafficking conspiracy.
A co-conspirator shipped methamphetamine from California to Springfield in two- to two-and-a-half-pound increments to Thompson. Thompson picked up the packages at various hotels in the Springfield area then contacted Ford. Ford picked up the methamphetamine from Thompson and distributed it to others.
After a few days, Ford would then meet with Thompson and give her $10,800. Thompson kept $800 and sent $10,000 to the co-conspirator in California.
Thompson admitted that she received approximately 24 pounds of methamphetamine, which she gave to Ford. Thompson also kept some of the methamphetamine and sold it directly to others.
After Thompson was arrested on Sept. 11, 2015, Ford began receiving methamphetamine shipments from the co-conspirator in California. On Sept. 30, 2015, the Springfield Police Department received a phone call from a FedEx employee about a suspicious package. Police officers delivered the 2.2-pound package of methamphetamine to Ford at a Springfield residence, where he was arrested. Ford had a Ruger .22-caliber handgun in his possession.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Drug Enforcement Administration and the Springfield, Mo., Police Department.
Serial Child Molester Sentenced to 20 Years in PrisonRead the Press Release
NORFOLK, Va. – A registered sex offender who was collecting child pornography was sentenced today to 20 years in prison and a lifetime of supervised release.
Michael Murphy, 68, of Norfolk, pleaded guilty to possession of child pornography on Dec. 28, 2016. According to court documents, Murphy was identified by the Norfolk Police Department in March 2016 when a 9-year-old girl disclosed that she was being molested by Murphy. Subsequent to his arrest, Murphy’s electronics were seized and analyzed, which resulted in the discovery of child pornography images that Murphy had collected on the Internet. Murphy was a registered sex offender, having been convicted in Norfolk courts of various offenses: in 1993 of attempted statutory rape and sodomy; in 1994 of production of child pornography, carnal knowledge, and sodomy; and in 2006 of indecent liberties with children. Murphy’s minor victims have ranged from 4 years old to 14 years old.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk; and Larry D. Boone, Chief of Norfolk Police, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-115.
Scioto County Physician Pleads Guilty to Role in Pill MillRead the Press Release
CINCINNATI – Margaret Temponeras, 52, of Portsmouth, Ohio, pleaded guilty in U.S. District Court to conspiracy to distribute a controlled substance, which she did through a pain clinic and dispensary.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Steven W. Schierholt, Executive Director, Ohio State Board of Pharmacy, and the Ohio High Intensity Drug Trafficking Area (HIDTA) announced the plea entered into today before U.S. District Judge Timothy S. Black.
According to the Statement of Facts in this case, Temponeras owned and was the physician at Unique Pain Management in Wheelersburg, Ohio. Her father, John Temponeras, 82, was also a physician at the clinic.
From June 2005 until May 2011, Temponeras and her father saw more than 20 patients per day, who paid cash payments starting at $200 for each medical examination. Many patients received monthly prescriptions for similar combinations of medications – namely, 120-150 pills of 15mg Oxycodone, 120-150 pills of 30mg Oxycodone and 90 pills of 2mg Xanax.
Patients were referred to Raymond Fankell, 62, of Wheelersburg, Ohio, who owned Prime Pharmacy, to fill their prescriptions.
Temponeras became aware that some pharmacies in the Scioto County area had declined to accept or fill her prescriptions from Unique Pain Management so she opened the dispensary Unique Relief LLC from the same location as her clinic in order to fill her own prescriptions.
Temponeras and Fankell have each pleaded guilty to one count of conspiracy to distribute a controlled substance, which is a crime punishable by up to 20 years in prison. John Temponeras pleaded guilty to one count of conspiracy to distribute Oxycodone, which carries the same potential maximum sentence.
U.S. Attorney Glassman commended the investigation of this case by the DEA, FBI, Ohio State Board of Pharmacy, and Ohio HIDTA, as well as Assistant United States Attorneys Timothy D. Oakley and Timothy S. Mangan, who are representing the United States in this case.
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San Angelo Man Who Controlled a Residence as a Multi-Pound Methamphetamine Stash Site Sentenced to 180 Months in Federal PrisonRead the Press Release
LUBBOCK, Texas — Benny T. Martinez, 37, of San Angelo, Texas, was sentenced this morning before Senior District Judge Sam R. Cummings to 180 months in federal prison following his guilty plea in December 2016, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Martinez pleaded guilty to one count of possession of firearms in furtherance of a drug trafficking crime and one count of convicted felon in possession of a firearm. Martinez has been in custody since the time of his arrest in October 2016.
“People like this do everything they can to destroy our communities and the people who live in them,” said U.S. Attorney Parker. “Our job is to raise the cost to them of doing their jobs, and we will aggressively do just that.”
According to plea documents filed in the case, on October 21, 2016, a search warrant was executed at the residence at 9209 Wilma Lane, San Angelo, Texas. Martinez was the only person at the residence. A thorough search of the residence revealed 2,188 grams of methamphetamine in the ceiling of the pantry, two .22 caliber rifles, $13,700.00 in cash, a vacuum sealer and vacuum sealing bags, a digital scale, and MSM, a common adulterant for methamphetamine. An additional 6,279 grams of methamphetamine was located buried on the north side of an outbuilding, in a small garden.
Further investigation revealed that before Martinez possessed the firearms mentioned, he had been convicted on May 1, 2009, in the 399th Judicial District Court of Bexar County, Texas, and was sentenced to eight months imprisonment for Possession of a Controlled Substance.
The Texas Department of Public Safety, the San Angelo Police Department, the Drug Enforcement Administration, and the Tom Green County Sheriff’s Office investigated. Assistant U.S. Attorney Jeffrey Haag prosecuted.
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Roseville Woman Pleads Guilty to Fraud Scheme Using Stolen MailRead the Press Release
SACRAMENTO, Calif. — Ashley Nicole Leyba, aka Ashley Nicole Schlichting, 27, of Roseville, pleaded guilty today to bank fraud, aggravated identity theft, and possession of stolen mail, United States Attorney Phillip A. Talbert announced.
According to court documents, between September 15, 2016 and February 3, 2017, carried out an identity theft scheme in order to defraud banks and credit unions. She obtained stolen mail from victims and opened credit card accounts and lines of credit using the financial and identification information found in the stolen mail. Leyba created notebooks, which she labeled “THINK BIG” and “STAY OUT,” to organize the names, addresses and personal information of the mail theft victims.
According to the plea agreement, Leyba used the credit cards to purchase goods at Wal‑Marts in Sacramento and Rocklin, Kohls in Citrus Heights, Foot Locker in Roseville, Lowes in Rancho Cordova, and other stores in Sacramento and Placer counties. Leyba was depicted in surveillance images during several of these fraudulent transactions.
Leyba was arrested on February 13, 2017. In her plea agreement, she admits that while in custody, she instructed associates to destroy stolen identification and financial information that she had in her residence. One associate was arrested for driving while intoxicated, and during an inventory search of the vehicle, some of the stolen mail was recovered before being destroyed according to Leyba’s instruction.
This case is the product of an investigation of the United States Postal Inspection Service with assistance from the Sacramento County Sheriff’s Office, Sacramento County Probation Office, and the Citrus Heights Police Department.
Leyba is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on June 23, 2017. Leyba faces up to 30 years in prison for bank fraud, a mandatory two years in prison for aggravated identity theft, and five years in prison for possession of stolen U.S. Mail.
Portland Man Sentenced to 14 Months for Misusing a Social Security NumberRead the Press Release
Contact: James W. Chapman, Jr.
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Carlos Rafael Acosta-Joaquin, a/k/a “Kelvin Valle-Alicea,” 31, of Portland, was sentenced today in U.S. District Court by Judge Jon D. Levy to 14 months in prison and two years of supervised release for misusing a social security number assigned to another person. On October 26, 2016, the defendant was convicted after a three-day jury trial.
The evidence at trial established that the defendant, a citizen of the Dominican Republic, entered the United States through Puerto Rico without proper documentation after he purchased the social security card and birth certificate of Kelvin Valle-Alicea, a citizen of Puerto Rico. In 2015, while assuming Valle-Alicea’s identity, the defendant used Valle-Alicea’s name and social security number on a state court form after he received a speeding ticket.
Acosta-Joaquin has been in custody since February 24, 2016, when U.S. Citizenship and Immigration Services agents arrested him on immigration charges. Federal agents arrested him on social security fraud charges the next day. A condition of supervised release requires that he surrender to immigration authorities upon his release from prison.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Social Security Administration, Office of Inspector General; the U.S. Department of Health and Human Services, Office of Inspector General; and the Maine Department of Health and Human Services, Fraud Investigations and Recovery Unit.
Peruvian National Pleads Guilty in Manhattan Federal Court to Commodities and Wire Fraud for Running Million-Dollar Ponzi SchemeRead the Press Release
Joon H Kim, the Acting United States Attorney for the Southern District of New York, announced that PEDRO JARAMILLO, a/k/a “Enrique Jaramillo,” pled guilty in Manhattan federal court yesterday to commodities fraud and wire fraud stemming from his scheme to defraud more than two dozen investors, mostly retirees and professionals from Peru and countries in Latin America, of more than $1.2 million through a fraud scheme in which JARAMILLO solicited investments largely for the purported purpose of short-term commodity futures contracts but instead diverted the funds for his own purposes. As a result of their investments with JARAMILLO, investors have lost their life savings, retirement funds, and their homes.
Among other false and misleading statements, JARAMILLO represented to clients that he was an accomplished Wall Street commodities trader who partnered with a certain well-known international investment bank (the “Global Investment Bank”) to earn returns of 25 percent every 90 days for his investors. In fact, JARAMILLO utterly failed to invest monies as promised, had no partnership with the Global Investment Bank, and instead diverted the majority of investor funds to his own use through cash withdrawals, debit purchases, and by wiring funds offshore. The investor funds not diverted offshore or directly to JARAMILLO were used to repay earlier investors whose redemption requests could not be forestalled, in a Ponzi-like fashion.
JARAMILLO was arrested on December 2, 2016, and pled guilty yesterday before United States District Judge Laura Taylor Swain.
Acting U.S. Attorney Joon H. Kim said: “As he admitted, Pedro Jaramillo lured investors with the promise of guaranteed high returns, but the only one who profited was Jaramillo. He failed to invest funds as promised, and paid back early investors with funds from later investors. Many of the victims of his frauds lost their life savings. I want to thank the FBI for working with us to protect investors.”
According to the Complaint, the Indictment, and other statements made in open court:
From at least January 2014 to in or about December 2016, JARAMILLO solicited more than $1.2 million in investments from more than two dozen investors, primarily for the purported purpose of investing in commodity futures contracts, by falsely representing, orally and in writing, that investor monies would be invested in short-term commodities contracts with a guaranteed rate of return.
To help attract investors, JARAMILLO maintained an office on Wall Street (the “Wall Street Office”) where he met with prospective investors to tout his prior success and relationship with the Global Investment Bank. JARAMILLO also starred in a youtube.com video (the “Video”) set to the soundtrack of Frank Sinatra’s “New York, New York.” The Video featured a series of images of Wall Street, the New York Stock Exchange, and JARAMILLO in front of the Wall Street Office. In the video, JARAMILLO told prospective investors that he was a “proven winner” and “trusted partner” who would maintain individually managed and federally insured accounts for each client. JARAMILLO told prospective investors that these safeguards would ensure that prospective investors would “be protected against fraud and brokerage failure.”
In truth and in fact, JARAMILLO not only failed to create individual investment accounts, he also failed to use investor funds to make any legitimate investments, instead diverting the majority of funds to his own use, out of the country, or to repay earlier investors whose redemption requests could not be forestalled. In total, JARAMILLO diverted more than $700,000 to his own use in the form of cash withdrawals and debit card purchases used to fund his lifestyle, including thousands of dollars on three vacations to Disney World for JARAMILLO, family, and guests.
To hide his misappropriations and continue to fund his personal lifestyle, JARAMILLO also used new investor funds to pay back other investors in a Ponzi-like fashion. In total, since January 2014, JARAMILLO distributed more than $200,000 back to investors from funds deposited by new investors. During that time, JARAMILLO also diverted more than $100,000 of investor funds out of bank accounts he controlled in the United States to foreign bank accounts, including in Peru, where JARAMILLO is a citizen.
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JARAMILLO, 48, a Peruvian National who was residing in Queens, New York, before his arrest, pled guilty to one count of commodities fraud and one count of wire fraud. The commodities fraud count carries a maximum sentence of 10 years in prison and a maximum fine of $1 million, or twice the gross gain or loss from the offense. The wire fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. 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. The defendant, who has been detained since his arrest, will be sentenced at a future date by Judge Swain.
Mr. Kim praised the work of the Federal Bureau of Investigation. He also noted that the investigation is continuing.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Andrea M. Griswold is in charge of the prosecution.
Pakistani Man Pleads Guilty in Axact Diploma Mill ScamRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that UMAIR HAMID, a/k/a “Shah Khan,” a/k/a the “Shah,” pled guilty yesterday before U.S. District Judge Ronnie Abrams to conspiracy to commit wire fraud in connection with an international “diploma mill” scheme that collected tens of millions of dollars from thousands of customers. As alleged in the Indictment to which HAMID pled guilty and the related criminal Complaint, HAMID and his co-conspirators made false and fraudulent representations to consumers on websites and over the phone to trick them into enrolling in purported colleges and high schools, and issued fake diplomas upon receipt of upfront fees from consumers.
Acting U.S. Attorney Joon H. Kim said: “Operating from Pakistan, Umair Hamid helped fraudulently rake in millions of dollars from unwitting American consumers who paid to enroll in, and get degrees from, high schools and colleges that did not exist. As a result of his fraud, people who thought they were investing in an education received nothing more than worthless diplomas and a harsh lesson in the worldwide reach of deceit. Together with our partners at the FBI and the Postal Service, we will continue to work to protect consumers from scams that victimize our citizens.”
According to the allegations contained in the Indictment and the Complaint against HAMID, as well as other court filings in this matter:
The Axact Scheme
HAMID, using the aliases “Shah Khan” and the “Shah,” and others operated a massive education “diploma mill” through the Pakistani company “Axact,” which has described itself as one of the world’s leading information technology (“IT”) providers. Working on behalf of Axact, HAMID and others made misrepresentations to individuals across the world, including throughout the United States and in the Southern District of New York, in order to dupe these individuals into enrolling in supposed high schools, colleges, and other educational institutions. Consumers paid upfront fees to HAMID and his co-conspirators, believing that in return they would be enrolled in real educational courses and, eventually, receive legitimate degrees. Instead, after paying the upfront fees, consumers did not receive any legitimate instruction and were provided fake and worthless diplomas.
Axact promoted and claimed to have an affiliation with approximately 350 fictitious high schools and universities, which Axact advertised online to consumers as genuine schools. During certain time periods since 2014, Axact received approximately 5,000 phone calls per day from individuals seeking to purchase Axact products or enroll in educational institutions supposedly affiliated with Axact. At least some of those consumers appeared to believe that they were calling phone numbers associated with the respective schools. When consumers asked where the schools were located, sales representatives were instructed to give fictitious addresses.
Once a consumer paid for a school certificate or diploma that falsely reflected a completed course of study, Axact sales agents were trained to use sales techniques to persuade the consumer to purchase additional “accreditation” or “certifications” for such certificates or diplomas in order to make them appear more legitimate. Axact, through HAMID and his co-conspirators, falsely “accredited” purported colleges and other educational institutions by arranging to have diplomas from these phony educational institutions affixed with fake stamps supposedly bearing the seal and signature of the U.S. Secretary of State, as well as various state agencies and federal and state officials.
HAMID’s Role in the Scheme
HAMID served as Axact’s “Assistant Vice President of International Relations.” Among other things, HAMID made various false and fraudulent representations to consumers in order to sell fake diplomas. HAMID controlled websites of purported “schools” that (1) falsely represented that consumers who “enrolled” with the schools by paying tuition fees would receive online instruction and coursework, (2) sold bogus academic “accreditations” in exchange for additional fees, (3) falsely represented that the schools had been certified or accredited by various educational organizations, and (4) falsely represented that the schools’ degrees were valid and accepted by employers, including in the United States.
As a further part of the scheme, HAMID and a co-conspirator (1) opened bank accounts in the United States in the names of shell entities, effectively controlled by HAMID, that received funds transferred by consumers in exchange for fake diplomas, (2) transferred funds from those bank accounts to bank accounts associated with other entities located elsewhere in the United States and abroad, at the direction of HAMID, and (3) opened and operated an account to collect and distribute consumer funds obtained in connection with their fraudulent scheme.
In May 2015, Axact was shut down by Pakistani law enforcement, and certain individuals associated with Axact were prosecuted in Pakistan. Nevertheless, after May 2015, HAMID resumed his fraudulent business of selling fake diplomas to consumers in the United States for upfront fees based upon false and fraudulent representations. Most recently, HAMID traveled to the United States in 2016 in order to open a bank account used to collect money from defrauded consumers.
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HAMID, 31, of Karachi, Pakistan, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. HAMID is scheduled to be sentenced by Judge Abrams on July 21, 2017, at 3:00 p.m.
Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation and the U.S. Postal Inspection Service.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to http://www.usdoj.gov/usao/nys/victimwitness.html.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Edward A. Imperatore, Noah D. Solowiejczyk, and David Abramowicz are in charge of the prosecution.
Northern Ohio Felon Sentenced to 100 Months for Illegally Possessing a FirearmRead the Press Release
COLUMBUS, Ohio – Richard Jerel Doyle, 32, of Brooklyn, Ohio, was sentenced to 100 months in prison for illegally possessing a firearm when Columbus Police arrested him in March 2016. A U.S. District Court jury convicted Doyle following a two-day trial in September.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Columbus Police Chief Kimberley Jacobs announced the sentence handed down yesterday evening by Chief U.S. District Judge Edmund A. Sargus Jr.
A Columbus Police officer arrested Doyle on March 18, 2016 after a victim called police and said that Doyle drove up next to her while she was walking along Cleveland Avenue. The victim told officers that Doyle assaulted her with a loaded firearm and that she was able to run away from him. She called 911 and reported the incident. An officer met with the victim and asked for a description of the man. According to testimony, the victim looked up, saw Doyle in his 1994 Cadillac Deville and said, “That’s him! Oh my God.”
Doyle drove away and officers followed him before stopping him without incident along I-71. They searched his car and found a .380 caliber handgun and ammunition.
On July 27, 2016, a grand jury indicted Doyle, who had been convicted in Cuyahoga County in 2010 on charges of drug trafficking and drug possession and in 2005 on charges of sexual battery and robbery. Federal law prohibits people convicted of felonies from owning, possessing or controlling firearms. The same restrictions apply to ammunition.
U.S. Attorney Glassman commended the investigation by agencies on the ATF task force, as well as Assistant U.S. Attorneys Salvador A. Dominguez and Jonathan J.C. Grey who represented the United States in this case.
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New York Man Charged with Aiding the Transportation of 47 Stolen Firearms and Distributing HeroinRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Luis Mercado, age 46, of Queens, New York, was charged on April 6, 2017, in a criminal information with firearms and controlled substance offenses associated with a May 2015, gun store burglary in Bradford County, Pennsylvania.
According to United States Attorney Bruce D. Brandler, the information alleges that Mercado aided and abetted the transport of 47 stolen firearms from Pennsylvania to New York. The firearms were stolen from Fulmer’s Sporting Goods, a federally licensed firearms dealer in Wysox, Pennsylvania, on or about May 24, 2015. The information also charges Mercado with conspiring to distribute and possess with the intent to distribute 100 to 400 grams of heroin, which is equivalent to approximately 4,000 to 16,000 doses of heroin, during a three-year period from June 1, 2012 through June 17, 2015.
The government simultaneously filed a plea agreement with Mercado to the alleged charges, which is subject to approval of the court. A date for his arraignment has not been set.
Mercado is the third individual to be charged in relation to the Fulmer’s Sporting Goods burglary. Jared Miller and Aaron Vanderpool were charged in August 2016, with firearms and heroin trafficking offenses. Miller and Vanderpool have pleaded guilty before United States District Judge Richard Caputo and are awaiting sentencing.
The matter was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives and the Pennsylvania State Police. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
This case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalties under federal law for the charges are 50 years of imprisonment, a term of supervised release following imprisonment, and a fine. The heroin conspiracy charge carries a five-year mandatory minimum sentence of imprisonment. 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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New Jersey Feedstock Processor Sentenced to Five Years in Prison for Conspiracy to Commit Biofuel FraudRead the Press Release
The owner of a New Jersey feedstock collector and processor was sentenced today for his role in a scheme that generated over $7 million in fraudulent tax credits and renewable fuels credits (RIN credits) connected to the purported production of biodiesel fuel, as well as his subsequent attempts to obstruct a Grand Jury investigation into the fraud.
Malek Jalal, 52, was sentenced to 60 months in prison to be followed by three years of supervised release. He was also sentenced to pay $1,017,087 in restitution, and a $12,500 fine.
Acting Assistant Attorney General Jeffrey H. Wood for the Department of Justice’s Environment and Natural Resources Division, U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Acting Special Agent in Charge Frank S. Turner II for the Internal Revenue Service Criminal Investigation, and Acting Special Agent in Charge John Gauthier of EPA’s Criminal Enforcement Program in Ohio announced the sentence handed down today by Senior U.S. District Court Judge James L. Graham.
The RFS program is a national policy, authorized under the Energy Policy Act of 2005 and expanded under the Energy Independence and Security Act of 2007, which requires a certain volume of renewable fuel to be produced to replace or reduce the quantity of petroleum-based transportation fuel, heating oil or jet fuel. Tax credits incentivize businesses to produce renewable fuel like biodiesel.
According to his plea, Jalal, who owned Unity Fuels of Newark, New Jersey, engaged in a scheme with other coconspirators to fraudulently claim tax credits and RIN credits multiple times on the same fuel. Jalal did this by buying fuel from a New York-based company, blending it with other materials, and selling it back to the same New York-based company.
Jalal also admitted to obstruction of justice. According to his plea, Jalal knowingly modified and destroyed records after receiving a Grand Jury subpoena from the Southern District of Ohio. Jalal also directed an employee of Unity Fuels to fabricate false records that were provided to the Grand Jury in an attempt to hide the fraud scheme.
“Unlawful acts like those at issue in this case defraud the U.S. Government, harm American taxpayers and consumers, and undermine energy and environmental laws enacted by Congress,” said Acting Assistant Attorney General Wood. “As today’s plea demonstrates, the Department of Justice will continue to pursue and prosecute those who seek to line their own pockets through RFS fraud.”
“Environmental programs are not immune from fraud," U.S. Attorney Glassman said. "The surest way to deter this and all fraud is to catch the criminal and ensure that he is punished for the crime. That's what we're doing here.”
“At the IRS, protecting taxpayer money is a matter we take extremely seriously. An integral part of the agency’s mission involves detecting and catching those who claim fraudulent tax credits," stated Frank S. Turner II, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. "The object of these schemes is to defraud the government and the taxpaying public.”
“Violations of renewable fuels laws can have serious impacts on the marketplace and hurt companies that play by the rules,” said Larry Starfield, Acting Assistant Administrator for the Office of Enforcement and Compliance Assurance at EPA. “EPA and its law enforcement partners are committed to ensuring a level playing field for businesses that follow the rules by pursuing those who blatantly violate the law.”
Assistant Attorney General Wood and U.S. Attorney Glassman commended the cooperative investigation by law enforcement, as well as Department of Justice Trial Attorney Adam Cullman, Senior Trial Attorney Jeremy Korzenik and Assistant United States Attorney J. Michael Marous, who represented the United States in this case.
Nebraska Resident Sentenced to 160 Months in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - On April 6, 2017, Gerald N. Holden, age 42, of Bellevue, Nebraska, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 160 months in prison for conspiring to distribute methamphetamine, announced United States Attorney Kevin E. VanderSchel. Holden will be required to serve a five-year term of supervised release following his release from prison.
On November 29, 2016, Holden pleaded guilty to the charge and admitted he participated in a conspiracy to distribute methamphetamine in the Southern District of Iowa during the month of August 2016. Holden’s charge was the result of a law enforcement investigation of drug trafficking that occurred in both Omaha, Nebraska, and Council Bluffs, Iowa.
This investigation was conducted by the Southwest Iowa Narcotics Enforcement Task Force, the Omaha Police Department, the Council Bluffs Police Department, and the Pottawattamie County Sheriff’s Office. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Multiple Credit Card Fraud Indictment AnnouncedRead the Press Release
Mamadou Billo Barry, age 32 of Newark, New Jersey, was charged yesterday, by Indictment, with conspiracy to commit an offense against the United States and with possession of 15 or more counterfeit or unauthorized access devices (credit cards) announced Acting United States Attorney Louis D. Lappen.
The indictment further alleges that Barry possessed, without lawful authority, a means of identification of another person, a resident of the State of Michigan, who had a credit card account with a credit union in Michigan. Barry is charged with having encoded the credit card account number, issued to the Michigan resident by his credit union, onto a credit card that Barry possessed. If convicted of the charged offenses, Barry faces a maximum term of imprisonment of 17 years which includes a 2-year minimum mandatory sentence, a fine of up to $750,000, a special assessment of $300 and 3 years of supervised release.
The case was investigated by the United States Department of Homeland Security and the Office of the District Attorney for Delaware County and is being prosecuted by Assistant United States Attorney Floyd J. Miller.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Middlesex County, New Jersey, Man Charged with Theft of Trade Secret Materials from DupontRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man has been charged with stealing computer files containing trade secrets from a DuPont manufacturing facility in Parlin, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced today.
Anchi Hou, 61, East Brunswick, New Jersey, was arrested this morning and charged by complaint with one count of theft of trade secrets. Hou is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the documents filed in this case and statements made in court:
In the summer and fall 2016, Hou allegedly copied and removed thousands of files containing DuPont’s proprietary information, including formulas, data, and customer information related to flexographic printing plate technology. He also allegedly took photographs in restricted areas of plant equipment and layouts used to manufacture DuPont’s products.
After allegedly stealing DuPont’s trade secrets, Hou announced his intention to retire from the company by the end of 2016. At some point in 2016, he formed a consulting business intended to provide consulting services to the manufacturing industry. Hou admitted to DuPont officials he secretly copied the files from his DuPont work computer and then uploaded those files onto a personal computer at his residence in order to assist him with his consulting business.
A forensic review of Hou’s personal computer revealed that it contained more than 20,000 stolen DuPont files related to the company’s flexographic printing plate technology. Some of the stolen files include information that DuPont considers trade secrets developed by its employees over the course of the past 40 years and which are critical to its technical, economic, and business operations.
The theft of trade secrets charge carries a maximum potential penalty of up to 10 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the arrest. He also thanked security officials in the DuPont corporation for their cooperation in the investigation.
The government is represented by Assistant U.S. Attorneys James M. Donnelly of the U.S. Attorney’s Office National Security Unit and L. Judson Welle, coordinator of the Computer Hacking and Intellectual Property Unit, in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Michael ‘The Situation’ Sorrentino and His Brother, Marc Sorrentino, Indicted on Additional Charges Including Tax Evasion, Structuring and Falsifying RecordsRead the Press Release
Television personality Michael “The Situation” Sorrentino and his brother, Marc Sorrentino, were indicted today on additional charges including tax evasion, structuring and falsifying records, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney William E. Fitzpatrick for the District of New Jersey announced.
In September 2014, the Sorrentino brothers were indicted for tax offenses and conspiring to defraud the United States. The superseding indictment returned today includes new charges against both men. Michael is now also charged with tax evasion and structuring funds to evade currency transaction reports and Marc is now also charged with falsifying records to obstruct a grand jury investigation. An arraignment on the superseding indictment is scheduled on April 17 at 11:30 a.m. before U.S. District Court Judge Susan D. Wigenton in Newark, New Jersey.
According to the superseding indictment, Michael was a reality television personality who gained fame on the television show “The Jersey Shore,” which first appeared on the MTV network. Michael and his brother Marc created businesses, such as MPS Entertainment LLC and Situation Nation Inc., to exploit Michael’s celebrity status. The superseding indictment alleges that the brothers conspired to defraud the United States by not paying all federal income tax owed on approximately $8.9 million that Michael earned between 2010 and 2012. It is alleged that the brothers filed or caused to be filed with the Internal Revenue Service (IRS) false tax returns that understated gross receipts, claimed fraudulent business deductions, disguised income payments made to the brothers and to others and underreported net business income. As part of the conspiracy, the brothers also allegedly commingled funds among business and personal bank accounts and used the money from the business bank accounts to pay for personal items, such as high-end luxury vehicles and clothing.
The superseding indictment further alleges that Michael evaded his 2011 income taxes – failing to file a personal return, filing a false corporate return for Situation Nation and concealing his cash income.
The superseding indictment also charges that Michael made multiple cash deposits on the same day in amounts less than $10,000, into different bank accounts that he controlled, in an effort to evade the banks’ reporting requirements – banks are required to file reports with the U.S. Treasury for cash deposits exceeding $10,000. These reports include the identity of the person who conducted the transaction and the individual or organization for whom the transaction was completed.
The superseding indictment also alleges that after being served with Grand Jury subpoenas seeking books and records of MPS and Situation Nation, but prior to producing the books and records to the Grand Jury, Marc falsified them by altering and reclassifying taxable payments to himself as non-taxable payments and as legitimate business deductions.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
If convicted, the Sorrentino brothers face a statutory maximum sentence of five years in prison on the conspiracy count and three years in prison for each count of aiding in the preparation of false tax returns. Michael faces a statutory maximum sentence of 10 years in prison for each structuring count and five years in prison for the tax evasion count. Marc faces a statutory maximum sentence of 20 years in prison for obstruction. They also face a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney William E. Fitzpatrick thanked special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Jonathan W. Romankow and Trial Attorneys Yael T. Epstein and Jeffrey Bender of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Michael ‘The Situation’ Sorrentino and His Brother, Marc Sorrentino, Indicted on Additional ChargesRead the Press Release
Tax Evasion, Structuring and Falsifying Records
NEWARK, N.J. – Television personality Michael “The Situation” Sorrentino and his brother, Marc Sorrentino, were indicted today on additional charges including tax evasion, structuring and falsifying records, Acting U.S. Attorney William E. Fitzpatrick for the District of New Jersey and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced.
In September 2014, the Sorrentino brothers were indicted for tax offenses and conspiring to defraud the United States. The superseding indictment returned today includes new charges against both men. Michael is now also charged with tax evasion and structuring funds to evade currency transaction reports and Marc is now also charged with falsifying records to obstruct a grand jury investigation. An arraignment on the superseding indictment is scheduled for April 17, 2017, before U.S. District Court Judge Susan D. Wigenton in Newark federal court.
According to the superseding indictment:
Michael was a reality television personality who gained fame on the television show “The Jersey Shore,” which first appeared on the MTV network. Michael and his brother Marc created businesses, such as MPS Entertainment LLC and Situation Nation Inc., to exploit Michael’s celebrity status. The superseding indictment alleges that the brothers conspired to defraud the United States by not paying all federal income tax owed on approximately $8.9 million that Michael earned between 2010 and 2012. The brothers allegedly filed or caused to be filed with the IRS false tax returns that understated gross receipts, claimed fraudulent business deductions, disguised income payments made to the brothers and to others and underreported net business income. The brothers also allegedly commingled funds among business and personal bank accounts and used the money from the business bank accounts to pay for personal items, such as high-end luxury vehicles and clothing.
The superseding indictment alleges that Michael evaded his 2011 income taxes – failing to file a personal return, filing a false corporate return for Situation Nation and concealing his cash income.
The superseding indictment also charges that Michael made multiple cash deposits on the same day in amounts less than $10,000, into different bank accounts that he controlled, in an effort to evade the banks’ reporting requirements – banks are required to file reports with the U.S. Treasury for cash deposits exceeding $10,000. These reports include the identity of the person who conducted the transaction and the individual or organization for whom the transaction was completed.
The superseding indictment also alleges that after being served with Grand Jury subpoenas seeking books and records of MPS and Situation Nation, but prior to producing the books and records to the Grand Jury, Marc falsified them by altering and reclassifying taxable payments to himself as non-taxable payments and as legitimate business deductions.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
If convicted, the Sorrentino brothers face a statutory maximum sentence of five years in prison on the conspiracy count and three years in prison for each count of aiding in the preparation of false tax returns. Michael faces a statutory maximum sentence of 10 years in prison for each structuring count and five years in prison for the tax evasion count. Marc faces a statutory maximum sentence of 20 years in prison for obstruction. They also face a period of supervised release, restitution and monetary penalties.
Acting U.S. Attorney William E. Fitzpatrick and Acting Deputy Assistant Attorney General Goldberg credited special agents of IRS–Criminal Investigation with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow and Trial Attorneys Yael T. Epstein and Jeffrey Bender of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Defense counsel:
Michael Sorrentino: Henry E. Klingeman Esq., Newark
Marc Sorrentino: Michael D’Alessio Esq., West Orange, New Jersey
Mexican National Indicted for Illegal Re-EntryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JOSE MANUEL MAZON DE-DIOS (“MAZON”), age 32, of Mexico, was charged today in a one-count Indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
According to the indictment, MAZON reentered the United States after he was previously deported on April 5, 2013. If convicted, MAZON faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
Acting U. S. Attorney Evans reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Memphis Man Sentenced to 262 Months in Prison for Armed RobberyRead the Press Release
Memphis, TN – A Memphis man has been sentenced to 262 months in federal prison for committing an armed robbery affecting interstate commerce. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentencing today.
According to information presented in court, on the morning of June 13, 2016, Patrick Owens, 48, of Memphis, Tennessee, entered the Bartlett Prescription Shop at 5675 Stage Road, brandishing a firearm. He went behind the pharmacy counter where three employees were working, demanded the employees open the vault containing prescription medication and took several hundred prescription pills of various types. Owens then threatened an employee with the firearm and took her car keys to aid in his escape, forcing the employees into the restroom at the back of the store at gunpoint.
Surveillance video shows Owens entered the employee’s vehicle but did not leave the parking lot. While sitting in the vehicle, a Bartlett Police Officer entered the store. Owens then exited the vehicle and ran into the woods.
Owens was caught near the scene moments later,wearing the same outfit as the individual seen in the surveillance video from the pharmacy. Police also found a bag of pills, an Arminius .38 caliber revolver, a red hat, a surgical mask, and gloves near the scene and near where Owens was found. He was arrested and taken in for questioning. Four days after his arrest, Owens confessed to the robbery of the Bartlett Prescription Shop.
In January 2016, Owens pleaded guilty before U.S. District Judge John T. Fowlkes to one count of robbery affecting interstate commerce and one count of use of a firearm during a crime of violence.
On Thursday, April 6, 2017, Judge Fowlkes sentenced Owens to 262 months in federal prison.
The case was investigated by the Bartlett Police Department and by detectives from the Memphis Police Department’s Safe Streets Task Force. Assistant U.S. Attorney Elizabeth Rogers prosecuted this case on the government’s behalf.
Maritime Instructor Pleads Guilty to Conspiracy to Commit Wire Fraud and Wire FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MAURICE GEORGE, age 45, of Napoleonville, pled guilty yesterday to one count of Conspiracy to Commit Wire Fraud.
According to court documents, GEORGE was employed by Beier Radio, L.L.C., located in Louisiana, which manufactured maritime electronics products including Dynamic Positioning Systems (“DPS”). DPS is a maritime vessel computer system that automatically maintains a vessel’s position and heading by using position reference sensors and the vessel’s propellers and thrusters. Beier operated a DPS training center in Gray, Louisiana under the name “The Marine Training Institute.” Beier’s Marine Training Institute provided technical and operational training courses for Beier DPS customers. In 2007, GEORGE began working as an instructor for Beier Radio’s Marine Training Institute and taught DPS courses at Beier’s Louisiana classroom facility. Typically, Beier charged tuition in the amount of $2,000 to $2,500 for their DPS courses.
Between 2007 and 2013, GEORGE devised a scheme to embezzle approximately $334,892 from Beier Radio. On approximately 225 occasions, GEORGE negotiated monetary payments of approximately $1,200 to $2,000 with “students,” which he kept for himself, in exchange for endorsing and certifying their log books and for issuing DPS certificates of training from Beier Radio. In order to conceal his activities, GEORGE failed to create invoices for his illegal transactions and failed to have DPS students complete registration materials
GEORGE instructed DPS students to pay him directly by check made payable to “MAURICE GEORGE.” GEORGE also forged the signatures of various employees of Beier Radio on the DPS training certificates. The Indictment alleges that GEORGE deposited the illegal payments into his personal checking account with ASI Federal Credit Union. It is important to note that the investigation determined the overwhelming majority of GEORGE’s students did actually attend the DPS courses.
GEORGE faces a maximum penalty of five years imprisonment, followed by up to three years of supervised release, and a $250,000 fine. U.S. District Judge Eldon E. Fallon set sentencing on July 20, 2017.
Acting U.S. Attorney Evans praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”), as well as the U.S. Coast Guard Investigative Service who assisted HSI in this investigation. Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.
Madera Man Convicted for Tax EvasionRead the Press Release
FRESNO, Calif. — Today, after a four-day trial, a federal jury found Jeffrey G. Vincent, 66, of Madera, guilty of five counts of evading income taxes, United States Attorney Phillip A. Talbert announced.
According to evidence presented at trial, since 1991, Vincent operated a Fresno-based engineering company called Veco Technologies, organized as Stafford Group Limited Partnership, for which Vincent was general partner. Vincent has not filed an individual income tax return since 1989, despite earning significant income from Stafford Group, including close to $500,000 between 2007 and 2010. Two federal tax liens were filed on Vincent’s assets in 1993 and 2000 when he failed to pay assessments made for tax delinquencies in earlier years. Vincent signed tax returns for Stafford Group in which he falsely represented that he does not have a social security number. Vincent also funneled his income through various trusts and other entities.
“Today’s guilty verdict of Mr. Vincent sends a clear message to those who claim that there is no legal requirement to pay federal income taxes. All taxpayers are required to follow the law and the law requires accurate reporting and timely payment of any tax due and owing,” said Michael T. Batdorf, Special Agent in Charge IRS Criminal Investigation.
This case is the product of an investigation by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys Christopher D. Baker and Kirk E. Sherriff are prosecuting the case.
Vincent was remanded into custody following the announcement of the verdict. He is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on July 24, 2017. Vincent faces a maximum statutory penalty of 25 years in prison and a $250,000 fine. 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.
Lynchburg Man Sentenced on Bankruptcy Fraud ChargeRead the Press Release
Lynchburg, VIRGINIA – A Lynchburg man, who previously pled guilty to a federal bankruptcy fraud charge, was sentenced today in the United States District Court for the Western District of Virginia in Lynchburg, Acting United States Attorney Rick A. Mountcastle announced.
Randall K. Falwell, 56, of Lynchburg, previously pled guilty to one count of bankruptcy fraud. Today in District Court, Falwell was sentenced to three months in prison, followed by a two-year term of supervised release. In addition, the Court ordered Falwell to pay a fine of $10,000 and to pay more than $17,000 in restitution to the bankruptcy estate as compensation for harm caused by his fraudulent conduct.
According to evidence presented at previous hearings by Special Assistant United States Attorney Kari Munro, Falwell knowingly and fraudulently made false statements under oath in two separate bankruptcy proceedings. Specifically, Falwell claimed that he owned partial interests in real property without disclosing to the bankruptcy trustee that he had sold the properties some months earlier.
The investigation of the case was conducted by United States Trustee’s Office. Assistant United States Attorney Jennie L. M. Waering and Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
Logansport man pleads guilty to selling methamphetamine, kidnapping conspiracyRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Logansport man pleaded guilty Thursday to distributing methamphetamine in Many, La., and kidnapping a victim in east Texas.
Christopher L. Douglas, 36, of Logansport, La., pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of distribution of methamphetamine and one count of conspiracy to commit kidnapping. According to the guilty pleas, law enforcement agents recorded Douglas selling 2 ounces of methamphetamine on April 26, 2016 for $2,000 in Many. In addition, he pleaded guilty to a kidnapping conspiracy charge from the Eastern District of Texas, in which he participated with others to kidnap the victim, demand ransom, and ultimately attempted to kill the victim, all arising out of related drug trafficking.
Douglas faces five to 40 years in prison for the drug charge and up to life in prison for the kidnapping charge. He also faces not less than four years of supervised release and up to a $5 million fine. The court set a sentencing date of August 25, 2017.
The FBI, ATF-Tyler Texas, Sabine Parish Sheriff’s Office, DeSoto Parish Sheriff’s Office, Carthage Police Department and Longview Police Department conducted the investigations. Assistant U.S. Attorney James G. Cowles Jr. is prosecuting the case for the Western District of Louisiana, and Assistant U.S. Attorney Paul Hable is prosecuting the case for the Eastern District of Texas.
Local Firearms Dealer Convicted for Possessing Unregistered Destructive DeviceRead the Press Release
G.F. Peterman, III, United States Attorney for the Middle District of Georgia, announces that Mark Mann, owner and operator of Mann’s World, LLC d/b/a The Rifleman, was convicted by a jury in federal court on April 6, 2017, of illegal possession of a destructive device, a Finnish Lahti 20mm anti-tank rifle, before the Honorable Marc T. Treadwell, United States District Judge, in Macon, Georgia.
The evidence showed that Mark Mann was the owner and operator of Mann’s World, LLC d/b/a The Rifleman, a local gun dealership. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) received a referral from the previous owner of the anti-tank rifle that Mark Mann illegally possessed the weapon after two checks from Mann’s business account, issued to purchase the weapon, were returned for insufficient funds. A resulting search pursuant to a warrant of Mann’s World, LLC on December 30, 2014, resulted in the discovery and seizure of the gun. Weapons such as machine guns, sawed off shotguns, or weapons of larger than fifty caliber cannot be legally possessed unless the possessor registers them with the ATF. Upon checking records, it was found that this destructive device, being a weapon of larger than fifty caliber, was not registered to Mr. Mann, who had used his status as a firearms dealer in order to circumvent this law.
Mr. Mann will be sentenced in approximately 60 days. He faces a maximum penalty of ten (10) years’ imprisonment, a $250,000 fine, or both.
"A Federal Firearms Licensee, such as Mark Mann, is someone who is trusted to know and follow the law regarding firearms, especially when dealing with dangerous instrumentalities such as this weapon, an anti-tank rifle, which is far more powerful and capable of far more destruction than weapons available to the general public. Mr. Mann chose to violate that trust and now must bear the responsibility for that choice,” said United States Attorney Peterman.
“The ATF’s involvement in securing this guilty verdict is a prime example of the successful use of federal laws to confront, engage and eliminate criminal activity. Criminals must understand there are serious repercussions for those who violate federal law, and that regulatory enforcement and law enforcement personnel will contribute all necessary time and effort to ensure that these individuals are brought to justice,” said ATF Assistant Special Agent in Charge John Schmidt.
This case was investigated by the Industry Operations Investigators and the Criminal Enforcement Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorneys Kimberly S. Easterling and Michael T. Solis prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 752-3511.
Lake Charles woman sentenced to 12 months in prison for purchasing stolen equipmentRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Lake Charles woman was sentenced Thursday to a year and a day in prison for buying stolen equipment from Texas.
Katherine P. LaRocca, 53, of Lake Charles, La., was sentenced by U.S. District Judge Dee D. Drell on three counts of sale and receipt of a stolen vehicle. The court also sentenced her to two years of supervised release and ordered her to pay a $20,000 fine. According to the January 25, 2017 guilty plea, two men stole three pieces of equipment in Texas between December 2010 and October 2011. They transported the equipment to LaRocca in Calcasieu Parish, and she bought them knowing they were stolen. The stolen equipment was a John Deer mower, a CASE Skidster front-end loader and a Kubota KX 61 Mini-Excavator with a value of between $95,000 and $150,000.
The Louisiana State Police conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger prosecuted the case.
Justice Department Honors Contributions to Crime Victims' Rights and ServicesRead the Press Release
The Department of Justice today recognized 12 individuals and teams for their exceptional service to crime victims and innovative work to support victims’ rights. The award recipients were honored during the annual National Crime Victims’ Service Awards Ceremony.
“During this year’s National Crime Victims’ Rights Week, the Department of Justice is proud to pay tribute to the outstanding contributions of the people and groups helping crime victims, reducing crime and improving public safety,” said Acting Associate Attorney General Jesse Panuccio. “We are inspired by their lives, and we are honored to stand with them.”
The awardees were selected from public nominations in nine categories, including federal service, special courage, public policy and victim services. The Office for Victims of Crime, a component of the Department’s Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week. President Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, calling for greater sensitivity to the rights and needs of victims. This year’s observance takes place April 2-8 and features the theme Strength. Resilience. Justice.
“These remarkable individuals and teams demonstrate the tremendous difference a small group of dedicated, inspired and courageous people can make in the lives of victims,” said Acting Assistant Attorney General Alan R. Hanson for the Office of Justice Programs. “The Department of Justice is proud to honor them and build on their good work through the Department’s Office of Victims of Crime.”
Following is a list of the award recipients:
- The National Crime Victim Service Award honors extraordinary efforts to provide direct services to crime victims.
Recipient: The Harry and Jeanette Weinberg Center for Elder Abuse Prevention, Riverdale, New York
- The Crime Victims’ Rights Award recognizes those whose efforts to advance or enforce victims’ rights benefit victims at the state, tribal or national level.
Recipient: Office of Victim Services Agency Support Team, Office of the Arizona Attorney General, Phoenix, Arizona
- The Allied Professional Award recognizes individuals working outside the victim assistance field for their service to victims.
Recipient: Captain Michael Holt, Jackson Police Department, Jackson, Tennessee
- The Award for Professional Innovation in Victim Services recognizes a program, organization or individual who expands the reach of victims’ rights and services.
Recipient: Healing Hurt People, Philadelphia, Pennsylvania
- The Ronald Wilson Reagan Public Policy Award honors leadership, innovation and vision that lead to noteworthy changes in public policy on behalf of crime victims.
Recipient: Kendall L. Carver, Phoenix, Arizona
Recipient: Diane Moyer, Esq., Harrisburg, Pennsylvania
Recipient: The late Teresa P. Scalzo, Alexandria, Virginia
- The Volunteer for Victims Award recognizes individuals who serve victims without compensation.
Recipient: BastaYaPR, Inc., Guaynabo, Puerto Rico
Recipient: Linda D. Axley, Tahlequah, Oklahoma
- The Federal Service Award recognizes federal agency personnel for service to victims of federal, tribal or military crimes.
Recipient: The Blackwater Victim Services Team, Washington, D.C.
- The Tomorrow’s Leaders Award recognizes youth up to 24 years old for efforts to support crime victims.
Recipient: Maya Weinstein, Washington, D.C.
- The Special Courage Award honors extraordinary bravery in the aftermath of a crime or a courageous act on behalf of a victim or potential victim.
Recipient: Laura L. Dunn, Esq., Washington, D.C.
The Office of Justice Programs, headed by Acting Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP and its components can be found at www.ojp.gov.
Judge Sentences Pittsburgh Felon with Gun to 15 Years in Federal PrisonRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 15 years imprisonment followed by 5 years supervised release on his conviction of violating federal firearms laws, Acting United States Attorney Soo C. Song announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Clifford Wood, 30, of Pittsburgh, Pennsylvania.
According to information presented to the court, on February 18, 2016, a West Homestead police officer on patrol near the High Rollers Bar in Homestead, PA, observed Clifford Wood, who was previously convicted of felony drug offenses, carrying, and shooting, what appeared to be a firearm. The officer demanded that Wood drop his gun. Wood refused, and started to flee, dropping the firearm during his flight. Wood was arrested shortly thereafter, and the firearm, a Ruger Security Six .357 revolver, was recovered in the place where the officer had seen Wood discard it.
Assistant United States Attorneys Katherine A. King and Stephen S. Gilson prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Federal Bureau of Investigation, the West Homestead Police Department, and the Homestead Police Department for the investigation leading to the successful prosecution of Wood.
Jeffrey Lavone Shaw Arrested Following Indictment on Federal Drug Conspiracy ChargeRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces today that Jeffrey Lavone Shaw of Fairhope was arrested on charges returned by a federal grand Jury in February 2017. The charges include Conspiracy to Possess with Intent to Distribute Cocaine and Use of a Cellphone in furtherance of the drug activity in violation of Title 21, United States Code Sections 846 and 843(b). The statutory maximum penalty provided by law on the conspiracy charge in this case is 20 years imprisonment.
This case arose from a long-term investigation in the Daphne/Fairhope area conducted by the Federal Bureau of Investigation’s Safe Street Task Force. This investigation has previously resulted in the indictment of six (6) other defendants on drug conspiracy charges, all of whom have entered guilty pleas in federal court.
FBI Special Agent in Charge, Robert Lasky stated, "Today's arrest is a direct result of the continued cooperation between the FBI Safe Street Task Force and our state and local partners."
Acting U.S. Attorney Steve Butler stated, “The goal of law enforcement, be it federal, state or local, is to make our communities safer for all citizens. The FBI’s Safe Street Task Force and all its members work diligently to accomplish this mission.”
As in all criminal cases, the Indictment returned by the Grand Jury is only a charge and the Defendant is presumed innocent.
The case will be prosecuted by the United States Attorney’s Office for the Southern District of Alabama.Hermosa Beach Couple Found Guilty in Tax Scam and Passing Fraudulent Financial Instruments to Pay Off DebtsRead the Press Release
LOS ANGELES – A federal jury this afternoon convicted a Hermosa Beach couple of a host of charges related to their participation in a scheme that filed fraudulent tax returns with the Internal Revenue Service seeking millions of dollars in refunds and used bogus financial instruments as a way to pay off debt.
Sean David Morton, 58, and his wife, Melissa Ann Morton, 50, each were convicted of one count of conspiracy to defraud the United States, two counts each of filing false claims against the United States, and various counts of passing false or fictitious financial instruments (specifically, 26 counts against Sean Morton, and 25 counts against Melissa Morton).
On the fourth day of trial, the jury heard closing arguments and deliberated for approximately two hours before issuing the guilty verdicts.
The charges against the Mortons stem from their participation in a “redemption” scheme, which is the most common scheme used across the nation by tax defiers and “sovereign citizens.” Proponents of this scheme falsely claim that the United States government controls bank accounts – often referred to as “U.S. Treasury Direct Accounts” – for U.S. citizens that can be accessed by submitting paperwork with state and federal authorities. Individuals promoting this scam frequently cite various discredited legal theories and may refer to the scheme as “Redemption” or “Strawman.” This scheme, which repeatedly has been rejected by courts, predominately uses fraudulent financial documents that appear to be legitimate.
“These defendants orchestrated a scheme that used bogus ‘legal’ filings that sought to abuse the tax system and defraud the IRS out of millions of dollars,” said Acting United States Attorney Sandra R. Brown. “These fraudulent schemes are designed to do only one thing – victimize others for profit.”
“Sean and Melissa Morton made multiple attempts to defraud the IRS and the taxpaying public,” stated Special Agent in Charge R. Damon Rowe for IRS Criminal Investigation. “Today’s verdict reinforces our commitment to every American taxpayer to identify and prosecute those individuals who devise illegal tax schemes to obtain refunds to which they are not entitled.”
The evidence presented at trial showed that the Mortons filed income tax returns with the Internal Revenue Service that falsely claimed they had income from various banking institutions reported on Forms 1099-OID. As part of the scheme, the Mortons falsely reported large withholdings and claimed they were owed refunds from the IRS.
As a result, the IRS erroneously issued a refund of $480,323 to Sean Morton for a 2008 income tax return. On the same day the refund was deposited into the Mortons’ joint bank account, the couple took immediate steps to conceal the money, which included opening two new accounts, transferring over $360,000 to the two new accounts, and withdrawing $70,000 in cash.
When the IRS took steps to collect the erroneous refund, the Mortons began a campaign to thwart the government’s collection efforts. Specifically, when the IRS placed a levy on the couple’s joint bank account, Melissa Morton repeatedly sent letters to the IRS that falsely claimed it was her sole and separate account.
When the IRS attempted to collect the erroneous refund from the Mortons, the Mortons presented to the IRS various “coupons” and “bonds” that purported to pay off their debt with the IRS. The Mortons created and submitted these bogus documents to the IRS, instructing the agency to draw upon funds with the United States Treasury to satisfy their debt.
The Mortons also sold the bond scheme to others who were in debt to governmental organizations, such as the IRS and the State of California, and private bank institutions for mortgage or credit card debt. The Mortons charged their clients thousands of dollars to prepare and file useless UCC-1 documents declaring their clients’ “strawman” status, and to prepare and send false bonds to the government or banks which purported to pay off the clients’ debt.
The Mortons are scheduled to be sentenced by United States District Judge Stephen V. Wilson on June 19. As a result of today’s guilty verdicts, Sean Morton faces a statutory maximum sentence of 650 years in federal prison, and Melissa Morton could be sentenced to as much as 625 years.
The investigation into the Mortons was conducted by IRS Criminal Investigation. The case is being prosecuted by Assistant United States Attorneys Valerie Makarewicz and James C. Hughes of the Tax Division.
Henderson Man Sentenced for Possession of a Firearm by a FelonRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court on April 5, 2017, United States District Judge Louise W. Flanagan sentenced WILLIAM LACHLIAN ORMOND, III, 29, of Henderson, NC to 57 months of imprisonment followed by 3 years of supervised release.
ORMOND was named in an Indictment filed on March 22, 2016 and charged with Possession of a Firearm by a Felon. On June 16, 2016, ORMOND pled guilty to that charge.
On October 29, 2015, an officer with the Henderson Police Department in Henderson encountered ORMOND walking down the street, and knew him to have outstanding warrants for his arrest. The officer suspected that ORMOND was armed due to the way he was holding his waistband, and attempted to engage ORMOND in conversation. ORMOND attempted to flee on foot and was captured by the officer. Upon taking the defendant into custody, the officer located a 9mm handgun with a large capacity magazine on the defendant. The handgun was loaded with 22 rounds of ammunition.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
The Henderson Police Department, North Carolina Alcohol Law Enforcement, North Carolina State Crime Lab, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the criminal investigation of this case. Assistant United States Attorney S. Katherine Burnette handled the prosecution of this case and Assistant United States Attorney Peggah Wilson handled the sentencing hearing.
Hammond Man Sentenced to 70 Months ImprisonmentRead the Press Release
HAMMOND- Acting United States Attorney Clifford D. Johnson announced that Leroy Robinson, 39, of Hammond, Indiana was sentenced before Judge Rudy Lozano for being a felon in possession of a firearm.
Robinson was sentenced to 70 months imprisonment and 1 year supervised release.
According to documents in this case, Robinson possessed two firearms, one of which had an obliterated serial number, on July 28, 2016 after being convicted in an Armed Robbery Case in Cook County, Illinois.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives in cooperation with the Hammond Police Department. The case was handled by Assistant United States Attorney Thomas M. McGrath.
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