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Wednesday 29 March 2017
Guard Guilty of Accepting Bribe to Smuggle Contraband into JailRead the Press Release
CORPUS CHRISTI, Texas – A 28-year-old former employee of the Costal Bend Detention Center has pleaded guilty to accepting a bribe as a public official, announced Acting U.S. Attorney Abe Martinez.
At today’s hearing, Misti Dawn Alva, of Corpus Christi, admitted she accepted money in exchange for delivering contraband to a federal inmate housed at the Costal Bend Detention Center in Robstown.
Avila was the warehouse supervisor and smuggled synthetic marijuana, also known as “K2” into the facility for inmates. During the course of the investigation, she met with an undercover agent and accepted cash to smuggle a package of synthetic marijuana to an inmate at the facility. Alva took the package, which she believed contained synthetic marijuana, and drove directly to the Costal Bend Detention Center. When she entered the facility, she was arrested and found in possession of the package.
Sentencing has been set for July 20, 2017, before U.S. District Judge Nelva Gonzales Ramos. At that time, Alva faces up to 15 years in federal prison and a possible $250,000 maximum fine.
This FBI conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
Grand Jury Returns Three-Count Indictment Charging Ogden Couple in FBI Child Pornography CaseRead the Press Release
SALT LAKE CITY – A federal grand jury returned a three-count indictment last week charging Jason David Lott, age 32, and his wife, Camila Mae Bergeson, age 22, both of Ogden, in connection with a child pornography case investigated by the FBI Child Exploitation Task Force.
Lott faces charges of distribution of child pornography, possession of child pornography, and possession of a firearm and ammunition following a felony conviction. Bergeson is charged with Lott in a possession of child pornography count. Lott and Bergeson appeared for arraignment on the charges in U.S. District Court Thursday. Both entered not guilty pleas to the charges
According to a complaint filed in the case, an FBI special agent was conducting an online investigation on the BitTorrent network for offenders sharing child pornography. He directed his investigative focus to a device at a specific IP address, referred to as the “Suspect Device” in the complaint, because it was associated with Torrent files. At least one of the files was identified as being a file of interest in child pornography investigations.
The complaint alleges that on several occasions, the agent successfully completed several downloads made available from the Suspect Device. The downloaded files included sexually explicit images and videos depicting the sexual abuse of infants, toddlers, and prepubescent children. Further investigation of the IP address led the FBI task force to Lott and Bergeson’s residence in Ogden.
Federal agents executed a federal search warrant at the residence on March 16, 2017. Several devices were seized during the execution of the warrant, including a laptop computer. During a preliminary search of the laptop computer, agents located the Bit-Torrent program Vuze, as well as evidence indicative of an individual using a peer-to-peer program to obtain files of child pornography.
Agents also located an H & R 12 gauge shotgun and associated ammunition. Lott is a registered sex offender. He has a 2009 Utah conviction for sexual exploitation of a minor.
Lott admitted to having the Bit-Torrent program on his computer and having knowledge that one could obtain images of child pornography. He also admitted to using a program to wipe his computer once a week. Bergeson admitted to looking at videos and images of child pornography on the computer with her husband. She admitted they have looked at child pornography for the last six months approximately every other week. They erased the child pornography after looking at it.
Lott faces a potential mandatory minimum sentence of 15 years with a maximum 40-year sentence if convicted of distribution of child pornography. Because of his criminal history, Lott faces a potential 10-year mandatory minimum for the possession of child pornography count. Possessing a firearm following a felony conviction carries a potential 10-year sentence. Bergeson faces up to 20 years in prison if convicted of the possession of child pornography count.
A four-day jury trial is set for May 22, 2017, before U.S. District Judge Jill N. Parrish. Lott is in custody. Bergeson was been released from custody subject to standard and special conditions of supervised release, including a requirement that she get a full-time job.
Indictments are not findings of guilt. Individuals charged in an indictment are presumed innocent unless or until proven guilty in court.
Gonzales Pleads Guilty to Possession of Ammunition; Agreement Includes Stipulated 10-Year SentenceRead the Press Release
SALT LAKE CITY – Sentencing is set for June 7, 2017, for Aldo Gonzalez, 26, of Salt Lake City, who pleaded guilty to possession of ammunition after a previous felony conviction. The plea agreement includes a stipulated 10-year sentence in federal prison. Gonzalez, a member of the Nortenos Familia Varrio Loco gang, is being prosecuted as a part of the #UtahGangInitiative and the Utah Project Safe Neighborhoods initiative.
Gonzalez was indicted on the charge in September. He entered his guilty plea March 14, 2017, before U.S. District Judge Tena Campbell.
The charges stem from a July 1, 2016, encounter Gonzalez had with an individual at a restaurant in West Valley City. The victim and his girlfriend saw a male, later identified as Gonzalez, wearing a red 49ers hat. The victim told Gonzalez he had a cool hat. Gonzalez left the restaurant shortly thereafter.
The victim and his girlfriend finished their dinner and drove to their home in West Valley City. As they got out of the vehicle, they were approached by two men who were pointing handguns at them. The victim recognized one of the men as the individual he had seen at the restaurant. Gonzalez asked the victim, “What set you claim?” The two men immediately began shooting at the victim. The two men got back into their car and fled the scene. The victim, who was not injured, recognized the make and model of the car.
A West Valley City police officer responded to the scene and observed several bullet holes in a nearby car and the victim’s home. He also located 10 spent shell casings. Two bullets were recovered from the house.
An officer patrolling the area quickly found a car that matched the description provided by the victim and the description of Gonzalez. After following the car for a while, the driver of the car suddenly accelerated in an apparent effort to evade the officer. The officer activated his lights and siren as the car reached speeds of 50-60 in a residential neighborhood. Gonzalez abandoned the car he was driving and fled the scene. The officer continued to give commands for him to stop. After a chase, Gonzalez jumped a fence and swam across a canal. Other officers responded to the other side of the canal where Gonzalez had been seen last. A bystander advised officers that Gonzalez had entered a home. Officers set up a perimeter around the home and ordered the occupants to leave the house. Three people exited the house. One occupant advised officers that Gonzalez was still in the home. SWAT teams entered the home and took Gonzalez into custody.
Officers found ammunition in the garage of the home, including ammunition that appeared to be hollow point. Additionally, 20 rounds of .40 caliber centerfire pistol cartridges and 20 rounds of 9 mm centerfire pistol cartridges in Gonzalez’ car.
The 10-year sentence in the plea agreement is subject to the approval of the court. As a part of the plea agreement reached in the federal case, Gonzalez agreed to plead guilty to three counts (12-14) in a related case filed in Third District Court. At the time of the offense, Gonzalez was on parole for a felony burglary conviction in state court.
Gonzalez was indicted on the charge in September. The case is being investigated by West Valley City police officers and special agents of the ATF. The case is being prosecuted by a West Valley City prosecutor acting as a Special Assistant U.S. Attorney.
Former Vice President of Finance at Publicly Traded Company Charged with Accounting and Securities Fraud SchemeRead the Press Release
A former vice president of finance for Bankrate Inc., a publicly traded financial services and marketing company headquartered in New York City, was charged in an indictment filed yesterday for his alleged participation in a complex accounting and securities fraud scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Benjamin Greenberg of the Southern District of Florida and Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS) made the announcement today.
Hyunjin Lerner, 48, of Martin County, Florida, was charged in an indictment filed in the Southern District of Florida with one count of conspiracy to commit wire fraud, falsify a public company’s books, records and accounts and make false statements to a public company’s accountants; three counts of wire fraud; one count of securities fraud; four counts of false entries in a public company’s books, records and accounts; and three counts of false statements to a public company’s accountants. Lerner, who previously worked at Bankrate’s offices in Palm Beach Gardens, Florida, made his initial appearance earlier today before U.S. Magistrate Judge John J. O’Sullivan of the Southern District of Florida and was released on bond.
The indictment alleges that between 2011 and 2014, Lerner and his co-conspirators carried out a complex scheme to manipulate Bankrate’s financial statements and artificially inflate Bankrate’s earnings. According to the indictment, Lerner and his co-conspirators allegedly engaged in “cookie jar” or “cushion” accounting, meaning unsupported expense accruals were left on Bankrate’s books and then selectively reversed in later quarters to meet earnings goals. In addition, Lerner and his co-conspirators allegedly: misrepresented certain company expenses as “deal costs” in order to artificially inflate publicly reported adjusted earnings metrics; booked hundreds of thousands of dollars in unsupported revenue to further inflate Bankrate’s reported revenue and earnings; and made materially false statements to conceal the improper accounting entries from Bankrate’s auditors, shareholders and the investing public.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The USPIS Washington, D.C., Division investigated the case. Assistant Chief Henry Van Dyck and Trial Attorneys Rush Atkinson, Emily Scruggs and Somil Trivedi of the Criminal Division’s Fraud Section are prosecuting the case. The Securities and Exchange Commission and the U.S. Attorney’s Office of the Southern District of Florida provided assistance in this matter.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Former Vice President of Finance at Publicly Traded Company Charged with Accounting and Securities Fraud SchemeRead the Press Release
A former vice president of finance for Bankrate Inc., a publicly traded financial services and marketing company headquartered in New York City, was charged in an indictment filed yesterday for his alleged participation in a complex accounting and securities fraud scheme.
Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, and Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS) made the announcement today.
Hyunjin Lerner, 48, of Martin County, Florida, was charged in an indictment filed in the Southern District of Florida with one count of conspiracy to commit wire fraud, falsify a public company’s books, records and accounts and make false statements to a public company’s accountants; three counts of wire fraud; one count of securities fraud; four counts of false entries in a public company’s books, records and accounts; and three counts of false statements to a public company’s accountants. Lerner, who previously worked at Bankrate’s offices in Palm Beach Gardens, Florida, made his initial appearance earlier today before U.S. Magistrate Judge John J. O’Sullivan of the Southern District of Florida and was released on bond.
The indictment alleges that between 2011 and 2014, Lerner and his co-conspirators carried out a complex scheme to manipulate Bankrate’s financial statements and artificially inflate Bankrate’s earnings. According to the indictment, Lerner and his co-conspirators allegedly engaged in “cookie jar” or “cushion” accounting, meaning unsupported expense accruals were left on Bankrate’s books and then selectively reversed in later quarters to meet earnings goals. In addition, Lerner and his co-conspirators allegedly: misrepresented certain company expenses as “deal costs” in order to artificially inflate publicly reported adjusted earnings metrics; booked hundreds of thousands of dollars in unsupported revenue to further inflate Bankrate’s reported revenue and earnings; and made materially false statements to conceal the improper accounting entries from Bankrate’s auditors, shareholders and the investing public.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The USPIS Washington, D.C., Division investigated the case. Assistant Chief Henry Van Dyck and Trial Attorneys Rush Atkinson, Emily Scruggs and Somil Trivedi of the Criminal Division’s Fraud Section are prosecuting the case. The Securities and Exchange Commission and the U.S. Attorney’s Office of the Southern District of Florida provided assistance in this matter.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Pontoon Beach Water District Supervisor Admits to Embezzlement and Wire FraudRead the Press Release
Brian Buske, 44, of Alton, Illinois, entered a plea of guilty to an indictment charging wire fraud in a scheme to defraud the Pontoon Beach Water District, in Madison County, Illinois, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Buske faces a statutory maximum prison sentence of up to 20 years, a fine of up to $250,000, three years of supervised release and mandatory restitution. Sentencing is scheduled for July 21, 2017. Buske was employed by the Pontoon Beach Water District from 2007 through June of 2016. In approximately May of 2014, Buske was promoted to the position of supervisor. As supervisor, Buske managed the daily operations of the company. Buske also handled the daily financial transactions of the company in that he issued checks to pay other companies for equipment or services rendered. In May of 2016, the Chairperson of the Pontoon Water District Board noticed that the District was a month behind in making the bank deposits. The missing deposits were not located within the safe. On May 27, 2016, Buske was confronted about the missing funds. Buske then retrieved four deposit summaries with the corresponding checks and cash from his truck. Four additional deposits were found to be missing. Buske admitted to taking the money and later returned with $5323 in cash, the amount of money corresponding to the records of the missing deposits. Further investigation revealed that records of the Pontoon
Beach Water District had been falsified to cover up personal expenses that Buske made on the District’s credit card. Check stubs were supposed to record the payment of legitimate District expenses, but some of the stubs falsified who the payee was to conceal personal expenses made by Buske that included the payment of an electric bill, insurance, cell phone bills and other personal expenses. The total misappropriated funds was in excess of $10,000.
The prosecution is the result of an investigation by the Pontoon Beach Police Department and the Federal Bureau of Investigation with the cooperation of the Pontoon Beach Water District. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Former O.C. Superior Court Clerk Pleads Guilty to RICO Charge in Bribery Scheme to ‘Fix’ Criminal Cases and Traffic ChargesRead the Press Release
SANTA ANA, California – A former clerk of the Orange County Superior Court pleaded guilty this afternoon to federal racketeering charges stemming from a scheme in which he accepted more than a quarter-million dollars in bribes to illegally resolve criminal cases and traffic offenses on terms favorable to hundreds of defendants without the knowledge of prosecutors or judges.
Jose Lopez Jr., 36, of Anaheim, pleaded guilty today to one count of conspiring to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO).
In a plea agreement filed last week, Lopez admitted that he was at the center of a scheme in which co-conspirators paid him as much as $8,000 in bribes to “fix” cases. The co-conspirators were middlemen who recruited individuals with pending cases to pay money that was given to Lopez to resolve their cases without the authorization of the court.
“In total, defendant [Lopez] improperly resolved approximately 1,034 cases, including 69 misdemeanor driving under the influence cases, 160 other misdemeanor cases and 805 traffic-related infraction cases,” Lopez admitted in the plea agreement.
Over the course of more than five years, Lopez “resolved” cases by entering information into the court’s computers to make it appear that a defendant had pleaded guilty, paid required fees or had performed community service. In some cases, Lopez fraudulently created records that made it appear drunk driving charges had been dismissed or defendants had served mandatory jail time.
In addition to taking bribes and falsifying court records, Lopez also forged the signature of a prosecutor with the Orange County District Attorney’s Office.
The conspiracy ended in the spring of 2015 when the court learned about the misconduct and took steps to reopen the cases that Lopez tampered with.
“This defendant compromised the justice system in Orange County to line his pocket with money he used to travel abroad, take trips to Las Vegas and open a Mexican restaurant,” said Acting United States Attorney Sandra R. Brown. “This scheme affected hundreds of cases and caused havoc in the Orange County Superior Court – problems that were further complicated when the former clerk encouraged others to lie about the scheme.”
Lopez pleaded guilty before United States District Judge Josephine L. Staton, who is scheduled to sentence the defendant on September 22. As a result of today’s guilty plea, Lopez faces a statutory maximum sentence of 20 years in federal prison.
“The defendant ignored the rule of law and potentially undermined public safety by essentially serving as judge and jury in scores of cases to enrich himself,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI and our partners will continue to investigate complaints of corruption by public officials and those with access to sensitive information.”
“IRS Criminal Investigation will continue to use our financial investigative skills to combat corruption and hold public officials accountable for their actions,” stated IRS Criminal Investigation’s Acting Special Agent in Charge Anthony J. Orlando. “Today’s guilty plea should serve as a reminder of what can happen when officers of the court try to profit from their position.”
With Lopez’s guilty plea late this afternoon, and the guilty plea of a co-defendant earlier today, 10 people charged last fall with participating in the racketeering scheme by acting as recruiters have pleaded guilty. One more defendant is scheduled to plead guilty next month, and the twelfth defendant in the case is pending trial.
The other 10 defendants who have pleaded guilty or have agreed to plead guilty are:
- Ricardo Quinones, 33, of Santa Ana;
- Juan C. Rosas Santillana, 33, of Chino Hills, who is scheduled to plead guilty on April 21;
- Ramon Salvador Vasquez, 28, of Santa Ana;
- Manuel Galindo Jr., 27, of Santa Ana;
- Gibram Rene Lopez, also known as “Ivan,” 27, of Anaheim;
- Agustin Sanchez Jr., 32, of Santa Ana;
- Luis Alberto Flores Guillen, also known as “Bills,” 26, of Santa Ana, who pleaded guilty earlier today;
- Oscar Centeno, also known as “Mosquito,” 27, of Santa Ana;
- Jeff Reynes Fernandez, also known as “Lean,” 25, of Fullerton; and
- Jesus Saldana, 28, of Garden Grove.
The final defendant in the case – Javed Asefi, also known as “Joey,” 44, of Ladera Ranch, who in addition to the RICO count is charged with making false statements to the FBI during its investigation into the bribery scheme – is scheduled to go on trial before Judge Staton on May 2.
Prior to the 12-defendant indictment being returned by a federal grand jury last fall, three other recruiters pleaded guilty to federal bribery charges, including Rebeca Sarai Rosell, who worked at a Santa Ana bail bonds company and funneled a bribe to Lopez from a drunk driving defendant.
This case is being investigated by special agents with the Federal Bureau of Investigation and IRS Criminal Investigation.
Former Labor Union Officer SentencedRead the Press Release
Abingdon, VIRGINIA – A former officer in a local labor union was sentenced today on federal embezzlement charged, Acting United States Attorney Rick A. Mountcastle announced.
William Dixon, 41, of Castlewood, Virginia, previously pled guilty to one count of embezzling funds from a labor organization. Today in the United States District Court for the Western District of Virginia in Abingdon, Dixon was sentenced to two years of probation and ordered to pay full restitution.
Dixon previously admitted that while serving as the secretary/treasurer of a labor union in Lebanon, Virginia, of which he was a member, he embezzled $4,338 between October 2015 and April 2016.
The investigation of the case was conducted by the United States Department of Labor, Office of Labor-Management Standards. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Former IT Director and Wife Convicted for Embezzling More Than $1 Million from EmployerRead the Press Release
HOUSTON - Former director of Information Technology (IT) Services for Orion Real Estate Services Inc. and his wife have entered guilty pleas related to a conspiracy in which they stole more than $1 million, announced Acting U.S. Attorney Abe Martinez today.
Bradley David Freitas pleaded guilty to conspiracy to commit mail and wire fraud, while Loren Elizabeth Freitas, entered her plea last Friday to conspiracy to commit mail fraud. From approximately April 14, 2009 through Jan. 14, 2014, Bradley Freitas embezzled approximately $1,009,634.45 from Orion Real Estate Services Inc., at times with the help of his wife.
Orion is a full-service, multi-family residential real estate management company serving a wide variety of investors, ranging from institutions, private partnerships, foreign investors, individual owners and government housing organizations. Orion had more than over 665 employees and provides management for all types of multi-family properties, and had a growing portfolio of more than 25,000 apartment homes under management throughout the nation.
Bradley Freitas was hired as the Director IT services for Orion on March 5, 2009. Throughout his employment, he created false explanations on internal Orion company justification documents so that the unauthorized purchases were masked as IT related items. Bradley Freitas would miscode Orion justification documents to mask the unauthorized personal purchases for several years and made these unauthorized purchases with the company credit cards issued to him for IT purchases only. The merchandise was purchased from online retailers, such as Amazon, NewEgg and CDW, and mailed either to his office or home. Several of the items, such as a dining room table with chairs, a Gucci purse and wallet, home entertainment systems, televisions and more, were purchased for the Freitas’ own personal enrichment. Other items, such as ipads and laptops, were sold on eBay or to their own private customers in New York and elsewhere for them to obtain a profit. At times, Loren Freitas would direct her husband as to what to purchase and then mailed the various items to be sold to their customers via FedEx or UPS.
U.S. District Judge Sim Lake accepted the guilty pleas and has set sentencing for Mr. and Mrs. Freitas on July 21 and June 14, 2017, respectively. At that time, Bradley Freitas faces up to 20 years in federal prison, while Loren Freitas faces a maximum five-year-term of imprisonment. Both convictions also carry a maximum possible $250,000 fine. Both were permitted to remain on bond pending their sentencing hearings.
The FBI conducted the investigation. Assistant U.S. Attorneys Suzanne Elmilady and Melissa Annis are prosecuting the case.
Former Deputy Executive Director of Port Authority Sentenced to 24 Months in Prison, Former Deputy Chief of Staff in N.J. Governor’s Office to 18 MonthsRead the Press Release
Misused Government Property to Punish Fort Lee Mayor for Not Endorsing Gov. Christie’s Re-election
NEWARK, N.J. – A former top official of the Port Authority of New York and New Jersey and a former member of Gov. Christopher J. Christie’s senior staff were sentenced today to prison terms for their roles in a scheme to punish the mayor of Fort Lee, New Jersey, by misusing Port Authority resources to cause traffic problems in the borough, Acting U.S. Attorney William E. Fitzpatrick announced.
William E. Baroni Jr., 45, former deputy executive director of the Port Authority of New York and New Jersey, was sentenced to 24 months in prison and Bridget Anne Kelly, 44, former deputy chief of staff to Gov. Christie, to 18 months. On Nov. 4, 2016, Baroni and Kelly were each convicted following a six-week trial before U.S. District Judge Susan D. Wigenton on all seven counts with which they had been charged in an indictment returned May 1, 2015, by a federal grand jury. Judge Wigenton imposed the sentences today in Newark federal court.
“We are satisfied that the sentences handed down today are a just result,” Acting U.S. Attorney Fitzpatrick said. “The defendants’ unlawful use of their government positions and government resources to settle a petty political score was a flagrant breach of their duty to the public and reflected a callous disregard for the welfare of the people of New Jersey. These sentences are fair and appropriate.”
“Today’s sentencing further reinforces the FBI’s commitment to aggressively pursue public corruption at any level, along with our federal, state, and local law enforcement partners and the U.S. Attorney’s Office,” Special Agent in Charge Timothy Gallagher of the Newark FBI Field Office said. “The citizens of the state of New Jersey expect and deserve the highest quality of government, and the FBI and our law enforcement partners remain dedicated to ensuring they receive it.”
“The investigation, prosecution, and convictions, after trial, of William Baroni and Bridget Anne Kelly established that they misused their sacred public trust to harm the very constituents they were hired to serve,” Michael Nestor, Inspector General of the Port Authority, said. “Further, Baroni and Kelly engaged in a cover-up of their scheme, and caused false information to be distributed to their fellow Port Authority employees, other government employees, and the public. The Port Authority Office of Inspector General, and its professional staff, will continue to fulfill its mission of rooting out corruption, no matter what level it may exist within the Port Authority. We commend our law enforcement partners for their cooperative effort and tireless work.”
Baroni and Kelly were each convicted of conspiring to misuse, and actually misusing, property of an organization receiving federal benefits; conspiring to commit, and actually committing, wire fraud; conspiring to injure and oppress certain individuals’ civil rights, and acting under color of law to deprive certain individuals of their civil rights. All of the charges relate to the defendants’ scheme to manufacture traffic problems in Fort Lee by, without public warning, reducing from three to one the number of local access lanes, located in Fort Lee, to the upper level of the George Washington Bridge, and the toll booths servicing those lanes. This was done to punish Mayor Mark Sokolich for not endorsing Gov. Christie’s re-election bid.
A third conspirator, David Wildstein, the former director of Interstate Capital Projects at the Port Authority, pleaded guilty May 1, 2015, to a separate information charging him with two counts of conspiracy for his role in the scheme. Wildstein pleaded guilty to conspiring to misuse the property of an organization receiving federal benefits and conspiring to injure and oppress certain individuals’ civil rights in connection with his role in causing traffic problems to punish Mayor Sokolich. He is awaiting sentencing.
According to documents filed in this case, statements made in court and the evidence at trial:
In August 2013, after Kelly confirmed that Mayor Sokolich would not be endorsing Gov. Christie for re-election in November 2013, Baroni, Kelly, and Wildstein decided to punish the mayor by deliberately causing significant traffic problems in Fort Lee under the false pretense of a traffic study.
From the morning of Sept. 9, 2013, to Sept. 13, 2013, they caused the local access lanes to be reduced so that only one toll booth, instead of the usual three, was accessible to the approach to the bridge for local traffic traveling through Fort Lee. To maximize the congestion and the punitive impact on Mayor Sokolich, Baroni, Kelly and Wildstein caused these lane and toll booth reductions to start on the first day of the school year without any advance notice to Mayor Sokolich, the Fort Lee chief of police or borough residents. The lane and toll booth reductions resulted in significant traffic in Fort Lee, for motorists intending to access the George Washington Bridge from local lanes and for residents, whose streets were choked with traffic.
The conspirators agreed to disregard any inquiries from Mayor Sokolich and other Fort Lee officials about the lane and toll booth reductions. They purposely ignored communications from Mayor Sokolich, including his pleas for help, requests for information, and repeated warnings about the increased risks to public safety. On Sept. 9, 2013, after Baroni received an email that Mayor Sokolich had called about an urgent matter of public safety, Wildstein sent an email to Baroni reiterating that Baroni should maintain “radio silence” toward the mayor. On Sept. 10, 2013, Kelly sent Wildstein a text message stating: “I feel badly about the kids … I guess,” to which Wildstein replied, “They are the children of Buono voters …” a reference to Christie’s opponent in the gubernatorial election, state Sen. Barbara Buono (D-Middlesex).
When Kelly was made aware of Mayor Sokolich’s communication regarding an urgent matter of public safety, she thanked Wildstein for confirming that Baroni had maintained “[r]adio silence” toward Mayor Sokolich. On Sept. 12, 2013, Baroni instructed a Port Authority employee through coded language that the employee should not contact Mayor Sokolich.
The three conspirators concocted and promoted a sham story that the lane reductions were for a traffic study. They created and advanced this cover story so they could use Port Authority property, including the time and services of unwitting Port Authority personnel and other resources, to implement the lane and toll booth reductions and conceal their true punitive purpose.
On Nov. 25, 2013, with Kelly’s and Wildstein’s knowledge, Baroni provided false and misleading testimony about the lane and toll booth reductions to the N.J. Assembly Transportation, Public Works, and Independent Authorities Committee. Baroni knowingly and intentionally made misleading statements and false representations, including: (1) communications between members of the Port Authority Police Department and Wildstein triggered the lane and toll booth reductions; (2) the lane and toll booth reductions were part of a one-week traffic study; and (3) the failure to communicate with Fort Lee and the executive director of the Port Authority was simply the result of communication breakdowns at the Port Authority.
In addition to the prison terms, Judge Wigenton sentenced the each of the defendants to one year of supervised release.
Acting U.S. Attorney Fitzpatrick credited criminal investigators of the Port Authority, Office of Inspector General, under the direction of Inspector General Nestor; special agents of the FBI, under the direction of Special Agent in Charge Gallagher; and criminal investigators of the U.S. Attorney’s Office, for the investigation leading to today’s guilty verdicts.
The government is represented by Assistant U.S. Attorneys Lee M. Cortes Jr., Vikas Khanna, David W. Feder and Senior Litigation Counsel J Fortier Imbert of the U.S. Attorney’s Office Special Prosecutions Division.
Defense counsel:
William E. Baroni: Michael Baldassare Esq., Newark
Bridget Anne Kelly: Michael Critchley Sr. Esq., Roseland, New JerseyFormer Department of Children’s Services Employees Sentenced for Unlawfully Accessing Confidential InformationRead the Press Release
Memphis, TN – Two Memphis women who used to work for the Tennessee Department of Children’s Services (DCS) have been found guilty and sentenced for unlawfully accessing confidential information on the Department’s computers. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentences today.
According to information presented in court, on May 17, 2016, former DCS employee Rubbie King, 48, of Memphis, contacted a friend who still worked at the agency and caused the friend, Bernice Gunn-Davis, 58, to access the file of a minor child in the Department’s care. King’s daughter was involved with Marcus Ross, who faces charges of rape, aggravated statutory rape, aggravated child abuse, and sex trafficking in connection with the minor whose file was accessed. Neither King nor Gunn-Davis had authority to review the contents of the minor’s file. Ross’ case is pending in Shelby County Criminal Court.
King was convicted of conspiracy to access a protected computer without authorization and obtain information, a violation of Title 18, United States Code, Section 371. On March 17, 2017, the Honorable Judge Sheryl H. Lipman sentenced King to serve an eighteen-month term of supervised release, with the first three months on home confinement. This is a felony conviction.
Gunn-Davis was convicted of exceeding authorized access to a protected computer to obtain information, a misdemeanor violation of Title 18, United States Code, Section 1030 (a) (2) (c). On March 27, 2017, Judge Lipman sentenced Gunn-Davis to one year of probation. Gunn-Davis is no longer associated with DCS.
DCS is the state of Tennessee’s public child welfare agency. It investigates allegations of child abuse and neglect; administers the state’s foster care system; works to establish permanency for children that come into the Department’s care; and serves youth who have been adjudicated delinquent. DCS case files are designated confidential by state law. It is a state crime to disclose confidential information about children or families involved with DCS.
The case was investigated by the FBI cybercrime unit, with the assistance of the Department of Children’s Services.
Assistant U.S. Attorney Debra Ireland prosecuted this case on the government’s behalf.
Former Compton Treasury Official Arrested on Federal Charges Related to Embezzlement of $3.7 Million from City CoffersRead the Press Release
LOS ANGELES – The former deputy city treasurer for the City of Compton was arrested today on federal charges related to the theft of more than $3.7 million of city funds.
Salvador Galvan, 47, of La Mirada, was arrested this morning by special agents with the FBI pursuant to a criminal complaint that charges him with theft concerning programs receiving federal funds.
Galvan faces federal charges stemming from allegations that he stole $3,721,924 from May 2010 through December 2016
Galvan, who worked in the Compton Treasurer’s Office for more than 20 years, was responsible for tallying the cash received by the city as payment for parking tickets, business licenses and other fees. After the cash was counted, Galvan prepared the money for deposit into a city bank account.
According to the criminal complaint filed late yesterday in United States District Court, Galvan skimmed cash from the daily receipts on numerous occasions. An audit of the city’s cash deposits “identified discrepancies which vary from approximately $200 to $8,000 per day,” according to the affidavit in support of the complaint.
The FBI interviewed Galvan’s supervisor, who “reflected about Galvan’s time in the office, his unexplained affluence, and his generosity,” according to the affidavit. The supervisor told investigators that Galvan went from driving an “old Toyota” to increasingly luxurious vehicles, including a black Audi sedan. That affidavit states that Galvan told his supervisor that he purchased a residence in La Mirada and demolished the house so he could rebuild it – all on an annual salary of approximately $60,000.
“The people of Compton deserved better,” said Acting United States Attorney Sandra R. Brown. “This defendant stole millions of dollars intended to help residents, placing his own greed over their interests.”
Galvan was arrested late last year by the Los Angeles County Sheriff’s Department in relation to the theft of city funds. The federal case that led to Galvan’s arrest this morning resulted from further investigation by the Federal Bureau of Investigation.
“Defendant Galvan violated the trust of the public he served by stealing money designated for the betterment of the Compton community,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “By operating a scheme whereby he skimmed Compton city coffers to live beyond his means, Mr. Galvan faces significant federal charges and time behind bars.”
Galvan is scheduled to make his initial court appearance this afternoon in United States District Court.
If he is convicted of the embezzlement charge, Galvan would face a statutory maximum sentence of five years in federal prison.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
The case against Galvan is being investigated by the FBI, which is receiving assistance from the Los Angeles County Sheriff’s Department.
This matter is being prosecuted by Assistant United States Attorney Daniel O’Brien of the Public Corruption and Civil Rights Section
Five from Northeast Ohio indicted for firearms violationsRead the Press Release
Five men from Northeast Ohio were indicted on federal firearms charges, said Acting U.S. Attorney David A. Sierleja and Trevor Velinor, ATF Special Agent in Charge for the Columbus Field Division.
Indicted in the unrelated cases are: Nicholas Martin, 37, of Cleveland; Terrence Trawick, 30, of Garfield Heights; Delvon Houser, 31, of Euclid; Vernell Jordan, 27, of Cleveland, and Marlon Clemons, 39, of Warrensville Heights.
“These are individuals with criminal records who have to business or right to carry firearms,” Sierleja said. “We will continue to work with federal agencies and local police to curb violence and prosecute gun offenses.”
“ATF is committed to combating gun violence in our communities,” Velinor said. “These indictments demonstrate our on-going commitment to work with our law enforcement partners to make our communities safer.”
Martin had a SCCY 9 mm pistol on March 2, despite prior felony convictions in Cuyahoga County Common Pleas Court for drug trafficking and improper discharge of a firearm into a habitation.
Trawick had a Taurus .380 caliber pistol with an obliterated serial number on Feb. 11, despite prior felony convictions in Cuyahoga County Common Pleas Court for drug trafficking and robbery and a federal conviction for being a felon in possession of a firearm.
Houser had a Taurus .38 caliber revolver on Jan. 19 despite prior felony convictions in Cuyahoga County Common Pleas Court for robbery and felonious assault.
Jordan had a Smith & Wesson .40 caliber pistol on March 1 despite a conviction in Cuyahoga County Common Pleas Court for attempted felonious assault with a firearms specification.
Clemons had a Taurus .45 caliber pistol and ammunition on Jan. 23, despite prior convictions in Cuyahoga County Common Pleas Court for improper discharge of a firearm, robbery and felonious assault.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
These cases are being prosecuted following investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshal Service, the Cleveland Division of Police and the Euclid Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Federal Judge Sentences Hondo, TX, Man to more than 15 Years Imprisonment for Distribution of Child PornRead the Press Release
In Del Rio this week, 46–year-old Bryan DeWain Splawn was sentenced to 188 months in federal prison for distributing child pornography announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
During Monday’s sentencing hearing, United States District Judge Alia Moses also ordered that Splawn be placed on supervised release for a period of ten years after completing his prison term.
On July 28, 2016, Splawn pleaded guilty to one count of distribution of child pornography. According to court documents, on December 9, 2015, HSI launched its investigation after making contact online with the defendant who was actively seeking minor females for sex. During the investigation, while Splawn was chatting and texting online, he sent by email five videos containing child pornography to an undercover agent.
On December 19, 2015, HSI agents, with assistance from the Hondo Police Department, arrested Splawn without incident. He has remained in federal custody since.
“These HSI investigations help protect children by taking child predators off the internet and off the streets by putting them behind bars," said Special Agent in Charge Shane Folden, HSI San Antonio. "Targeting these crimes against children is a high priority for HSI. We will continue to dedicate our law enforcement resources to identify and bring to justice child predators who traumatize and victimize children."
Assistant United States Attorney Matthew H. Watters prosecuted the case.
This case was prosecuted as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html.
Edlind Sentenced on Witness Tampering Charges Related to Labor Trafficking CaseRead the Press Release
Harrisonburg, VIRGINIA – A local woman, who was found guilty in December 2015 by a jury of witness tampering and perjury charges in relation to the Inca’s Secret labor trafficking investigation, was sentenced yesterday in the United States District Court for the Western District of Virginia in Harrisonburg, Acting United States Attorney Rick A. Mountcastle announced.
In December 2015, Carolyn J. Edlind, 69, of Harrisonburg, was convicted by jury trial of one count of conspiracy to witness tamper, one count of witness tampering, two counts of obstruction of justice, and one count of perjury. Following the trial, in response to the defendant’s motion, Judge Michael F. Urbanski overturned a portion of the jury’s verdict and dismissed one count of obstruction of justice and one count of perjury.
Yesterday in District Court, Edlind was sentenced to two years’ probation and six months’ home confinement. A co-conspirator in the case, Felix Adriano Chujoy, who was also convicted of similar charges during the same jury trial, has yet to have his sentencing hearing. At Chujoy’s request, the court has put off his sentencing hearing indefinitely.
According to information presented during trial by Assistant United States Attorney Heather L. Carlton, Edlind and Chujoy facilitated in-person meetings between a government witness with information about employees of Inca’s Secret, a restaurant in Harrisonburg being investigated for labor trafficking. Evidence presented at trial proved that the purpose of those meetings was to persuade the witness to change his expected trial testimony.
The investigation of the case was conducted by the Department of Homeland Security. Assistant United States Attorney Heather L. Carlton prosecuted the case for the United States.
Duson man sentenced to 12 months in prison for not paying nearly a quarter of a million dollars in taxesRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Duson business owner was sentenced Monday to 12 months and one day in prison for evading taxes for three years.
Larry J. Thibodeaux, 66, of Duson, La., was sentenced by U.S. District Judge Donald E. Walter on one count of attempting to evade and defeat payment of tax. He was also sentenced to one year of supervised release. The judge also ordered Thibodeaux to pay $248,777 in restitution and a $50,000 fine. According to the November 16, 2016 guilty plea, Thibodeaux, who at the time of the offense was the president and sole shareholder of Thib’s Trailers in Duson, underreported taxes on IRS forms from 2012 to 2014. The corporate tax loss for the three years was $110,970, and the individual tax loss was $137,807 for a total loss to the U.S. Treasury of $248,777.
Internal Revenue Service (IRS) Criminal Investigations conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
Dominican Man Sentenced to 61 Months in Prison for Wire Fraud and Identity TheftRead the Press Release
Johnny Santiago Valdez Calderon, 24, a dual citizen of the United States and the Dominican Republic, was sentenced on March 27, 2017, to serve 61 months in prison, followed by 3 years of supervised release, for engaging in a wire fraud and identity theft scheme, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee.
According to testimony at a plea hearing in September 2016, Valdez Calderon discovered a technique by which he was able to submit fraudulent online claims to a Tennessee company engaged in the business of selling insurance policies on mobile telephones. By assuming the identities of customers of that company, Valdez Calderon was able to cause that company to ship approximately 2,499 replacement telephones to various addresses in the United States, from which the telephones were collected by individuals who were aiding Valdez Calderon in the scheme. The total value of the fraudulently obtained cellular telephones was approximately $1,144,783.
Valdez Calderon also was ordered to pay restitution in the amount of $1,144,783.54. He has been in custody since his arrest on September 11, 2015.
This case was investigated by the Federal Bureau of Investigation and the Tennessee Bureau of Investigation. Assistant U.S. Attorney Byron Jones of the Middle District of Tennessee and Senior Counsel Anthony V. Teelucksingh of the U.S. Department of Justice, Computer Crimes and Intellectual Property Section are prosecuting the case.
Detroit man pleads guilty for role in Boone County heroin conspiracyRead the Press Release
CHARLESTON, W.Va. – A Detroit man pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Darrell Eugene Woodside, 46, entered his guilty plea to using a phone to facilitate the distribution of heroin.
Woodside admitted that from October 2015 through March 2016, while in Detroit, he communicated by phone regarding heroin trafficking with his nephew in Boone County, Daymeon Johnson. Woodside also admitted that these conversations were to help arrange the delivery of heroin from Michigan to West Virginia for distribution in and around Boone County. Woodside additionally admitted making travel arrangements for runners carrying heroin and cash between Michigan and West Virginia.
Woodside faces up to four years in federal prison when he is sentenced on June 22, 2017.
This case is part of a long-term investigation of heroin trafficking in Boone County conducted by the West Virginia State Police and the U.S. Route 119 Drug Task Force. The investigation has led to the convictions of several defendants. Christopher Priestly, of Bloomingrose, was sentenced to two and a half years in federal prison for distribution of heroin. Robert Donavan Buzzard, of Bloomingrose, was sentenced to a year and nine months in federal prison for distribution of heroin. Gregory Scott Runion, of Seth, was sentenced to a year and a half in federal prison for being a felon in possession of a firearm. Daymeon Johnson, of Detroit, previously pleaded guilty to conspiracy to distribute heroin and faces up to 20 years in federal prison when he is sentenced on April 4, 2017. Joyce Ann Zornes, of Seth, previously pleaded guilty to aiding and abetting the distribution of heroin and faces up to 20 years in federal prison when she is sentenced on April 27, 2017.
Assistant United States Attorney Joshua C. Hanks is in charge of these prosecutions. The plea hearing was held before United States District Judge Joseph R. Goodwin.
These cases are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Couple Charged with Tax Fraud SchemeRead the Press Release
Christine Corazo Holscher, 47, and Mark E. Holscher, 54, of Pennsauken, NJ, were charged yesterday by Indictment with conspiracy to defraud the United States and multiple counts of tax fraud, announced Acting United States Attorney Louis D. Lappen. According to the indictment, for several years Corazo Holscher and Holscher, who were then living in Philadelphia, conducted a scheme to defraud the IRS by soliciting the Social Security Numbers and dates of birth from other persons, and then filing false tax returns in the names of those persons. The tax returns filed by the Holschers falsely claimed that those persons had earned income and were entitled to a tax refund. When tax refunds were issued, the Holschers would obtain and keep a portion of each refund for themselves. The refunds issued as a result of the scheme totaled over $2 million.
If convicted, each of the defendant faces a maximum possible sentence of 131 years in prison and over $10 million in fines.
The case was investigated by the Internal Revenue Service and is being prosecuted by Assistant United States Attorneys Bea L. Witzleben and Tiwana L. Wright.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Columbia Man Pleads to Sex Trafficking ChargeRead the Press Release
Contact Person: William K. Witherspoon (803) 929-3000
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Alshura Tabil Annessa Frazier, age 36, of Columbia, South Carolina has entered a guilty plea in federal court in Columbia, to sex trafficking of children, a violation of 18 U.S.C. § 1591(a) (1) and possession of a firearm during a drug trafficking crime, a violation of 18 U.S.C. § 924(c). United States District Judge Mary Geiger Lewis of Columbia accepted the guilty plea and will impose sentence after she has reviewed the presentence report that will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that around Memorial Day in 2015, a minor female under the age of eighteen (18) left her family in North Carolina and met Frazier in Myrtle Beach. Following this encounter, Frazier and others had sex with the minor in exchange for providing her with the recreational drug “Molly” and shelter for the night. After leaving Myrtle Beach, Frazier brought the minor to Columbia, South Carolina, where Frazier recruited her to perform sexual acts on clients for money. Frazier posted the minor or had others post the minor on Backpage.com, a site known to be used for sex trafficking. Frazier transported her to and from North Carolina and to and from South Carolina on multiple occasions for the purpose of prostitution. Frazier received one-hundred (100%) percent of the profits made from the prostitution. The minor was sixteen (16) years of age at the time she began working as a prostitute for Frazier. During this time, Frazier knew that the minor was under the age of eighteen (18).
The minor also advised that she engaged in sexual intercourse with Frazier when she was sixteen (16) years of age. The minor stated that Frazier used one of his cell phones to video her and another prostitute with Frazier engaging in sexual activity when the minor was sixteen (16) or seventeen (17) years of age.
In addition, on March 18, 2015, a Richland County deputy attempted to make a traffic stop on a car for failing to give a turn signal. The car sped off and a chase took place. During the chase, the car pulled into a parking lot and a female, who was later identified as a prostitute working for Frazier, got out of the car and ran carrying a box. The officer was able to identify Frazier by his driver’s license photo. The car was registered to Frazier’s mother.
After the officer could not stop the car, he returned to the spot where the prostitute exited the car and ran. With the help of citizens, he found the female hiding in the woods. The female took the officer back to where she hid the box. In the box, officers located a 10mm Glock pistol, cocaine, crack cocaine, and suspected Molly. The female told the officer that the box belonged to Frazier who gave it to her and told her to run. Based upon this evidence, the gun was used and carried during and in relation to, and possessed in furtherance of a drug trafficking crime.
Ms. Drake stated the maximum penalty for the sex trafficking charge is life imprisonment and/or a fine of $250,000. The maximum penalty for the possession of a firearm in furtherance of the drug trafficking crime is also life imprisonment and/or a fine of $250,000.
The case was investigated by agents of the Federal Bureau of Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, Springdale Police Department, and Richland County Sheriff’s Department. Assistant United States Attorneys William K. Witherspoon and T. DeWayne Pearson of the Columbia office are prosecuting the case.
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Columbia Man Pleads Guilty to Possession of a FirearmRead the Press Release
Contact Person: William K. Witherspoon (803) 929-3000
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Johnny Willie Jones, age 30, of Columbia, South Carolina has entered a guilty plea in federal court in Columbia to felon in possession of a firearm, a violation of 18 U.S.C. § 922(g)(1). United States District Judge Mary Geiger Lewis of Columbia accepted the guilty plea and will impose sentence after she has reviewed the presentence report that will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on January 31, 2016, Jones was involved in a verbal altercation at a halfway house on Lady Street. Under the rules of the halfway house, females are not allowed in the males’ rooms. The manager of the home confronted Jones about having a female in his room. A verbal altercation turned physical between Jones, the manager, and her daughter. After it became physical, Jones stated, “I got something for you” and went up to his room and retrieved a sawed-off shotgun, went back downstairs, and shot in the direction of the two females. Both females were unharmed. Jones then left the halfway house after the police were called. The police found the shotgun in a lot behind the house. Jones fled the scene and was later arrested in Arizona. Jones had previously been convicted of kidnapping and two (2) counts of armed robbery and, therefore, was prohibited from possessing a firearm.
Ms. Drake stated the maximum penalty for a felon in possession of a firearm in this case is imprisonment for 10 years and a fine of $250,000.
The case was investigated by agents of the Federal Bureau of Investigation (FBI) and Columbia Police Department. Assistant United States Attorney William K. Witherspoon of the Columbia office is prosecuting the case.
This case was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases.
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Collin County Man Guilty of Federal Tax ViolationsRead the Press Release
PLANO, Texas – A 48-year-old McKinney, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Peter Mwedziwendira pleaded guilty on Mar. 28, 2017, to filing false personal tax returns before U.S. Magistrate Judge Kimberly C. Priest Johnson.
According to information presented in court, Mwedziwendira admitted to filing false personal tax returns for himself for tax years 2011, 2012 and 2013. In those false returns, Mwedziwendira falsely claimed that he was entitled to a Head of Household filing status and also falsely claimed the Earned Income Tax Credit and the Child Tax Credit in addition to false educational expenses. Mwedziwendira also admitted to preparing false tax returns for several of his clients for the 2011, 2012 and 2013 tax years. Mwedziwendira’s actions caused a tax loss to the Internal Revenue Service of $248,332. He was indicted in February 2017 by a federal grand jury.
Under federal statutes, Mwedziwendira faces up to three years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the Internal Revenue Service Criminal Investigations is being prosecuted by Assistant U.S. Attorney J. Andrew Williams.
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Cleveland man indicted for robbing two Mansfield banksRead the Press Release
A Cleveland man was indicted for robbing two banks in Mansfield, said Acting U.S. Attorney David A. Sierleja, FBI Special Agent in Charge Stephen D. Anthony and Mansfield Police Chief Kenneth Coontz.
Marty Taylor, 40, was indicted on two counts of bank robbery.
Taylor robbed the Richland Bank located at 50 Marion Avenue in Mansfield on Dec. 12, 2016. He also robbed the First Merit Bank located at 100 Park Avenue West in Mansfield on Jan. 17, 2017, according to the indictment.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Mansfield Police Department and the Federal Bureau of Investigation’s Mansfield Office. The case is being prosecuted by Assistant United States Attorney Brad J. Beeson.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland man guilty of making illegal straw purchases at gun showRead the Press Release
A Cleveland man pleaded guilty to making illegal straw purchases of 24 firearms over two days at a gun show, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio and Trevor Velinor, ATF Special Agent in Charge for the Columbus Field Division.
Carlton H. Nunn, 36, is scheduled to be sentenced July 11.
Nunn purchased two dozen firearms from four dealers at an area gun show on Sept. 10 and 11, 2016. He knowingly and unlawfully made false and fictitious statements, intended to deceive dealers, that he was the actual buyer of said firearms when, in fact, he was not the actual buyer of said firearms, according to court documents and statements.
This case is being prosecuted by Assistant United States Attorney Megan R. Miller following an investigation by the ATF.
Caribbean Corridor Strike Force Arrests Four Individuals and Seizes 1,608 Kilograms of CocaineRead the Press Release
SAN JUAN, PR – On March 27, 2017, federal officers assigned to the Caribbean Corridor Strike Force (CCSF) arrested four individuals while attempting to smuggle 1,608 kilograms of cocaine into Puerto Rico, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. A Glock 9mm pistol and 18 rounds of 9mm ammunition were also seized during the arrests. U.S. Magistrate Judge Camille L. Vélez-Rivé authorized a complaint charging Wilson Cuevas-Alcántara, Evelio Rivera-Jiménez, Tairo Martínez-De Rosario and Juan C. Rodríguez with Conspiracy to Possess with Intent to Distribute Cocaine and Possession of Cocaine.
On Monday, at approximately 12:00am, a United States Customs and Border Protection Marine Patrol Aircraft detected a vessel traveling southbound without navigation lights at approximately 40 nautical miles (NM) north of Dorado, Puerto Rico. The aircraft coordinated with the CBP Interceptor Unit and the United States Coast Guard to intercept the vessel. The CBP Interceptor Unit came to a short distance of the vessel at approximately four nautical miles north of the coast of Río Grande, PR, and initiated the interdiction of the vessel by energizing its blue lights, siren and verbal commands, but the vessel did not stop and continued at a high rate of speed of approximately 30-35knots.
The CBP Interceptor Unit fired two warning shots, but the vessel did not stop so they fired six disabling rounds to the vessel engines. Two individuals were arrested onboard and the other two who had jumped overboard during the pursuit were also apprehended by members of the United States Coast Guard and Puerto Rico Police Maritime Unit.
Forty-eight bales containing 1,449 bricks of cocaine weighing approximately 1,608 kilograms were field tested and yielded positive results to cocaine.
“These arrests are a clear indication of the continued success of the Caribbean Corridor Strike Force” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “This is just another example of the fine work our State and Federal law enforcement partners accomplish every day. With the continued collaboration and assistance of our law enforcement partners, we will continue our efforts to bring the most powerful and prolific drug organizations to justice.”
“This is another example of how our anti-crime plan, which establishes a close collaboration with the federal agencies, is producing great dividends,” said Puerto Rico Police Department Superintendent Michelle Hernandez. “We congratulate all PRPD police officers who participated in this effort and the Caribbean Corridor officers and special agents for keeping our borders safe. Drug traffickers should know that we are working as a team to stop the flow of drugs on the Island.”
The case is being investigated by agents from the Caribbean Corridor Strike Force (CCSF). The CCSF is an initiative of the U.S. Attorney's Office created to disrupt and dismantle major drug trafficking organizations operating in the Caribbean. CCSF is part of the Organized Crime Drug Enforcement Task Force (OCDETF) that investigates South American-based drug trafficking organizations responsible for the movement of multi-kilogram quantities of narcotics using the Caribbean as a transshipment point for further distribution to the United States. The initiative is composed of DEA, HSI, FBI, US Coast Guard, US Attorney Office for the District of Puerto Rico, and PRPD's Joint Forces for Rapid Action.
The case is being prosecuted by Assistant United States Attorney Carlos R. Cardona.
The defendants are facing terms of imprisonment from 10 years to life for the narcotics violations. Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Buffalo Man Pleads Guilty to Heroin and Fentanyl ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Francis Tessina, 45, of Buffalo, NY, pleaded guilty to possession with intent to distribute heroin and fentanyl before U.S. District Judge Lawrence J. Vilardo. The charges carry a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Frank T. Pimentel, who is handling the case, stated that on March 9, 2015, the defendant sold heroin and fentanyl to an individual cooperating with law enforcement. The following day, as Tessina was again preparing to sell heroin and fentanyl to the same person, he was arrested.
According to a previously filed complaint, on February 28, 2015, law enforcement officers investigated the apparent opioid overdose of a man in Hamburg, NY. During the investigation, officers discovered a cellular telephone that belonged to the individual. Text messages exchanged between him and an individual identified as John Haak revealed that the man received what was purported to be heroin from Haak shortly before his body was discovered. Further investigation revealed that Haak delivered fentanyl, purchased from Tessina, to the man late in the afternoon of February 28, 2015. Haak also sent text messages to him warning him to be careful with the heroin because Haak believed it contained fentanyl.
The plea is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, the Hamburg Police Department, under the direction of Chief Gregory Wickett, and the Evans Police Department, under the direction of Chief Douglas Czora.Sentencing is scheduled for July 12, 2017 at 9:00 a.m. before Judge Vilardo.
Bridgeport Heroin Trafficker Sentenced to 51 Months in Federal PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL BENNETT, 29, of Bridgeport, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 51 months of imprisonment, followed by three years of supervised release, for trafficking heroin.
According to court documents and statements made in court, in 2015, the FBI’s Bridgeport State Streets Task Force, Bridgeport Police Department and Connecticut State Police Statewide Narcotics Task Force initiated an investigation into several heroin distributors operating in Bridgeport. The investigation, included court-authorized wiretaps, controlled purchases of heroin and physical surveillance, revealed that Kareem Roseboro, also known as “Swiss,” was supplying heroin to other distributors. Roseboro and others used the Stylz Barbershop, located on State Street in Bridgeport, as a hub for their narcotics distribution activity.
The investigation further revealed that BENNETT supplied certain individuals in Roseboro’s network with heroin when Roseboro was unable to do so. In addition, in September and November 2015, investigators conducted two controlled purchases of heroin from BENNETT.
During the course of the investigation, investigators seized multiple “bricks” of heroin, items used in the processing and packaging of heroin, and five firearms. A brick of heroin contains 100 individual dose bags.
On June 6, 2016, a grand jury in Bridgeport returned an eight-count indictment charging BENNETT, Roseboro and five other Bridgeport residents with heroin trafficking offenses. The seven defendants were arrested on June 7, 2016.
BENNETT has been detained since his arrest. On December 21, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, heroin.
BENNETT’s criminal history includes a 2007 state conviction for first degree assault, which stemmed from an incident in which BENNETT shot an individual in the shoulder during a personal dispute. BENNETT was sentenced to 15 years of incarceration, suspended after 117 months, and five years of probation. He was on state probation when he was trafficking heroin that resulted in this federal charge.
Roseboro has pleaded guilty and awaits sentencing.
This matter was investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department, with the assistance of the Drug Enforcement Administration, Connecticut State Police, Stratford Police Department, Stamford Police Department and the Trumbull Police Department K-9 Unit. The case is being prosecuted by Assistant U.S. Attorneys Alina P. Reynolds and H. Gordon Hall.
Boise Man Sentenced for Unlawful Possession of GBLRead the Press Release
BOISE – Davis Jacobs, 27, of Boise, Idaho, was sentenced on March 28, 2017, to one year of probation, including six months of home detention, 200 hours of community service, and a $1,000 fine, for unlawful possession of Gamma-Butyrolactone (GBL), Acting United States Attorney Rafael Gonzalez announced. Jacobs was charged in an information.
According to the plea agreement, on April 13, 2016, United States Customs and Border Protection in San Francisco, California, intercepted a parcel from Hong Kong addressed to Jacobs in Boise, Idaho. The parcel, which was declared as “paint tools,” contained a bottle of 1,218 gross grams of liquid GBL. GBL is a Schedule I controlled substance. Jacobs admitted to purchasing the GBL knowing that it was illegal and a controlled substance.
The case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement, with assistance from the U.S. Postal Inspection Service.
Boerne Man Admits Hacking into Former Employer’s Computer System and Shutting it DownRead the Press Release
In San Antonio, 40-year-old Brian Neal Bond of Boerne, TX, faces up to five years in federal prison after admitting to hacking into a local business and shutting down their computer operations announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States District Judge Xavier Rodriguez, Bond pleaded guilty to one count of computer intrusion and damage. According to court records, from September 2010 to approximately April 2015, Bond worked as an Information Technology Help Desk manager in the Boerne, TX, facility of Colorado-based business. Bond left that company’s employment to accept a position with a different company. By pleading guilty, Bond admitted that beginning in June 2015 and continuing to January 2016, Bond, without authorization, accessed his former employer’s computers approximately 124 times. On one of those occasions—January 12, 2016—Bond admitted to shutting down his former employer’s trading system, making it unavailable to customers. Bond also deleted a file that was essential to the trading systems ability to operate. Bond’s interruption actions resulted in an estimated loss to his former employer of $10,816, which Bond has already paid into the registry of the Court.
The defendant remains out on bond pending sentencing scheduled for June 28, 2017, before Judge Rodriguez.
The Federal Bureau of Investigation conducted this investigation. Assistant United States Attorney William R. Harris is prosecuting this case on behalf of the Government.
Bay Area Fraudster Sentenced to 30 Months in Prison for Duping Investors Out of More Than $3 MillionRead the Press Release
SAN FRANCISCO- Marc Christopher Harmon was sentenced today to 30 months in prison for his role in a conspiracy to commit wire fraud and wire fraud, announced United States Attorney Brian J. Stretch, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The sentence was handed down by the Honorable Richard Seeborg, U.S. District Judge, after Harmon was tried and found guilty by a federal jury.
Harmon, 44, formerly of San Leandro, Calif., was charged in an indictment filed July 3, 2014, along with co-conspirator Jason George Rivera, Jr., 38, of Danville, Calif., in a scheme to defraud multiple investors of more than $3 million. The evidence at trial demonstrated that between October 2008 and January 2011, Harmon and Rivera used a Nevada corporation known as Executive Members Management Group, or EMMG, as a vehicle to defraud investors. The scheme involved promises that EMMG would purchase or trade collateralized mortgage obligations (CMOs) using funds provided by the investors, or would invest their funds in other lucrative transactions. Rivera and Harmon convinced victims to invest substantial sums of money, by promising, among other things, high rates of returns by participating in exclusive trading markets overseas and funding short-term loans for banks. The evidence at trial demonstrated Harmon’s role included recruiting investors to EMMG and making many false representations to induce the investors to contribute to non-existent investment programs.
On July 3, 2014, a grand jury returned an indictment charging defendants with eight counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349. Rivera also was charged with two counts of tax evasion, in violation of 26 U.S.C. § 7201. On July 29, 2015, Rivera pleaded guilty to the conspiracy to commit wire fraud charge and the two tax evasion counts. As against Harmon, the government dismissed two counts of fraud and the jury convicted him of all the remaining charges. Following trial, on October 11, 2016, Harmon entered into a post-trial plea agreement with the government in which he pleaded guilty to one count of fraud.
In addition to the prison sentence, Judge Seeborg sentenced Harmon to three years of supervised release and $1,837,500 in restitution. Harmon is in custody and will begin serving his sentence immediately.
Rivera was sentenced on February 8, 2017, to 33 months of imprisonment, three years of supervised release, and $2,045,207 in restitution.
Assistant U.S. Attorneys Benjamin Kingsley and Shailika Kotiya are prosecuting the case with the assistance of Bridget Kilkenny. The prosecution is the result of an investigation by the FBI and IRS, Criminal Investigation.
Baltimore Area Retailer Sentenced to Federal Prison for Food Stamp FraudRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Muhammad Sarmad, age 41, of Nottingham, Maryland, to 18 months in prison, followed by three years of supervised release, for conspiracy to commit food stamp fraud and wire fraud in connection with a scheme to illegally redeem food stamp benefits in exchange for cash. At the sentencing on March 27, 2017, Judge Bennett also ordered that Sarmad pay restitution of $3,550,662.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture Office of Inspector General, Northeast Region; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation.
“The food stamp program can be exploited by criminals like Muhammad Sarmad, who take advantage of the fact that the Department of Agriculture trusts retailers to actually provide food in return for taxpayer money,” said U.S. Attorney Rod J. Rosenstein.
The Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program, is administered by the Food and Nutrition Service (FNS) of the United States Department of Agriculture (USDA), together with state agencies. The program funds low-income individuals to allow them to obtain a more nutritious diet. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Retailers must apply to and be approved by FNS to participate in the program. Authorized retailers use a point-of-sale terminal that checks the EBT card information and deducts the cash value of the purchase from the customer’s SNAP benefit balance. SNAP reimbursements are paid to retailers through electronic funds transfers. Retailers must bill the government only in return for providing approved food items.
Sarmad, co-defendant Mohammad Irfan, and other family members owned and/or operated New Sherwood Market, 6324 Sherwood Road in Northwood, Maryland; Martin Mart, 1504 Martin Boulevard in Middle River, Maryland; Rosedale Mart, 6326 Kenwood Avenue in Rosedale, Maryland; and M&A Mart 7400-A Belair Road in Baltimore. All of the stores were authorized to accept SNAP, except the M&A Mart. According to their plea agreements, from October 2010 through at least July 2016, Sarmad, Irfan, and their co-conspirators exchanged EBT benefits for cash, in violation of the food stamp program rules. Sarmad, Irfan, and their co-conspirators typically paid half the value of the EBT benefits in cash. To avoid detection, they often debited the funds from the card in multiple transactions over a period of hours or days, or called a different store where the transaction was processed manually. Since the M&A Mart was not authorized to accept SNAP, Sarmad or a co-conspirator would call one of the other stores to run the transaction at the other store and then hand out the cash at M&A Mart.
Sarmad, Irfan and their co-conspirators received instruction regarding the requirements and regulations of the food stamp program, including that only eligible food items could be exchanged for EBT benefits, and that a retailer may never exchange EBT benefits for cash or non-food items. Sarmad admitted that from October 2010 through August 2016, Sarmad and his co-conspirators obtained more than $3.5 million in payments for food sales that never occurred or were substantially inflated.
In addition to Sarmad and Irfan, nine other retail store operators have pleaded guilty to their roles in similar schemes to illegally redeem food stamp benefits in exchange for cash, and are awaiting sentencing. Three other defendants are scheduled to go to trial later this year.
Mohamad Irfan, age 59, of Baltimore, previously pleaded guilty to conspiracy to commit wire and food stamp fraud, and faces a maximum sentence of five years in prison. Judge Bennett has scheduled sentencing for Irfan on May 9, 2017 at 11:00 a.m. Irfan is detained pending sentencing.
United States Attorney Rod J. Rosenstein praised the USDA Office of Inspector General and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Kathleen O. Gavin, who prosecuted Sarmad and Irfan.
Attorney General Sessions to Travel to St. LouisRead the Press Release
****** MEDIA ADVISORY ******
Attorney General Jeff Sessions will travel to St. Louis on FRIDAY, MARCH 31, 2017, to speak with federal, state and local law enforcement about efforts to combat violent crime and restore public safety.
WHO: Attorney General Jeff Sessions
WHAT: Speech to federal, state and local law enforcement partners.
WHEN: FRIDAY, MARCH 31, 2017
10:00 a.m. CDT (11 a.m. EDT)
WHERE: Thomas Eagleton U.S. Courthouse
111 S. 10th Street
St. Louis, MO 63102
1st Floor Jury Assembly Room
OPEN PRESS
(Camera Preset by for K9 Sweep: 9:15 a.m. CDT // Final Access: 9:40 a.m. CDT)
NOTE: All media must RSVP and present government-issued photo I.D. (such as a driver’s license as well as valid media credentials). The RSVP and any inquiries regarding logistics should be directed to Peter Carr in the Office of Public Affairs at 202 514-2007 or [email protected].Arnaudville man pleads guilty to theft of mail on Opelousas routeRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that an Opelousas mail carrier pleaded guilty to stealing cell phones from mail.
Tremayne Cluse, 24, of Arnaudville, La., pleaded guilty before U.S. Magistrate Judge Carol Whitehurst to one count of theft of mail by a postal service employee. The plea will become final when accepted by U.S. District Judge Donald E. Walter. According to the guilty plea, the Opelousas postmaster reported to law enforcement agents that there was information linking Cluse to missing packages. Agents conducted an investigation, and they found packages in Cluse’s post office locker that had been opened and not delivered. Agents interviewed Cluse on December 24, 2015. He initially lied about taking the packages, but later admitted that he had started opening packages in November of 2015. Cluse stole four cell phones and one cell phone case from mail.
Cluse faces up to five years in prison, three years of supervised release, restitution and a $250,000 fine. A sentencing date of July 17, 2017 was set.
The U.S. Postal Service-Office of Inspector General conducted the investigation. Assistant U.S. Attorney Robert F. Moore is prosecuting the case.
Arizona Man Sentenced for Methamphetamine Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Carlos Matta Heredia, 32, of Phoenix, Ariz., was sentenced today in Las Cruces, N.M., to 63 months in prison followed by three years of supervised release for his federal methamphetamine trafficking conviction.
Heredia was arrested in May 2016, on a criminal complaint after law enforcement officers located approximately 2,721.7 grams (six pounds) of methamphetamine in Heredia’s vehicle during a routine traffic stop. According to the complaint, the offense took place on May 26, 2016, on Interstate 10 in Luna County, N.M.
On Sept. 13, 2016, Heredia pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Heredia admitted that on May 26, 2016, law enforcement officers recovered six pounds of methamphetamine from his vehicle during a traffic stop. Heredia further admitted that he was transporting the drugs with the intention of delivering them to another person.
This case was investigated by the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force and was prosecuted by Assistant U.S. Attorney Sarah M. Davenport of the U.S. Attorney’s Las Cruces branch office.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Antitrust Division Issues 2017 Annual NewsletterRead the Press Release
The Department of Justice’s Antitrust Division today issued the 2017 edition of its annual newsletter on its website. The newsletter highlights the Antitrust Division’s recent activities and successes on civil and criminal enforcement, international cooperation and competition advocacy.
The newsletter includes a message from Acting Assistant Attorney General Brent Snyder as well as articles about the Antitrust Division’s enforcement actions in the criminal, merger and civil non-merger areas over the past year. The newsletter highlights the Division’s accomplishments during FY 2016, including charging 52 executives and 19 companies with price-fixing, bid-rigging, fraud, and obstruction of justice, resulting in fines and penalties of $399 million and significant prison sentences. Additional highlights include the Division’s success in preventing anticompetitive acquisitions in the health insurance industry and in preserving competition in a variety of important industries, including movie theaters, advertising, banking, cable, transportation and beer, in matters that were favorably resolved through settlement.
The newsletter also features articles about new leadership and staff within the Division, an update from the Diversity Committee, and a feature on how the Division’s Economic Analysis Group is shaping enforcement efforts.
The newsletter can be found at https://www.justice.gov/atr/division-operations/division-update-spring-2017. Each article provides hyperlinks so that the reader can easily access relevant documents such as press releases, court filings and speeches.
Albuquerque Man Pleads Guilty to Federal Narcotics Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Jose Martinez-Encinias, 44, of Albuquerque, N.M., pled guilty today in federal court to drug trafficking and firearms charges. Under the terms of his plea agreement, Martinez-Encinias will be sentenced to 135 months in prison followed by a term of supervised release to be determined by the court. The guilty plea was announced by Acting U.S. Attorney James D. Tierney and Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division.
Martinez-Encinias is one of 14 defendants charged with drug trafficking and firearms offenses as the result of an 18-month investigation by DEA and the HIDTA Region I Narcotics Task Force into a drug trafficking organization allegedly led by David Reynolds, 34, of Albuquerque, N.M., that distributed large quantities of heroin in Bernalillo and Santa Fe Counties, N.M. The investigation was designated as part of the Organized Crime Drug Enforcement Task Forces (“OCDETF”) program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Martinez-Encinias was arrested in June 2013, on a criminal complaint charging him with possessing heroin and cocaine with intent to distribute and possessing a firearm in furtherance of a drug trafficking crime. The criminal complaint charged Martinez-Encinias with committing the crimes on June 4, 2013, in Bernalillo County, N.M. Martinez-Encinias was indicted on the same charges on June 26, 2013.
The indictment was superseded on Dec. 4, 2013, to add 13 co-defendants, including Reynolds, and additional charges. The 15-count superseding indictment charged the defendants with conspiring to distribute heroin in Bernalillo and Santa Fe Counties from Sept. 2012 through Dec. 2013. It also charged Gene Solis, 22, with distributing heroin on three occasions in fall 2012; Humberto Hernandez, Jr., 40, with distributing methamphetamine on seven occasions between Feb. and Aug. 2013; and Martinez-Encinias with possessing heroin and cocaine with intent to distribute in June 2013, and with possessing firearms in furtherance of a drug trafficking crime. Reynolds also was charged with money laundering. The superseding indictment included forfeiture provisions seeking a money judgment of at least $1.3 million and property and assets obtained directly or indirectly from the commission of the crimes alleged in the indictment. A second superseding indictment that added additional charges was filed on June 30, 2016.
During today’s proceedings, Martinez-Encinias pled guilty to possessing cocaine and heroin with intent to distribute and possessing a firearm in furtherance of a drug trafficking crime. In entering the guilty plea, Martinez-Encinias admitted that on June 14, 2013, law enforcement officers executed a search warrant at his residence and recovered approximately 2,032.8 grams of heroin, 1,090.6 grams of cocaine, numerous firearms and over $19,000 in cash. A sentencing hearing has yet to be scheduled.
Six of Martinez-Encinias’ co-defendants previously entered guilty pleas and three have been sentenced. Teddy Archuleta, 35, of Albuquerque, pled guilty on Oct. 15, 2015, and was sentenced on Oct. 6, 2016, to time served followed by five years of supervised release. Miguel Baca, 41, of Albuquerque, pled guilty on June 6, 2016, and was sentenced on Nov. 15, 2016, to 37 months in prison followed by four years of supervised release. Daniel Jiron, 42, of Albuquerque, pled guilty on July 15, 2016, and was sentenced on Nov. 15, 2016, to 72 months in prison followed by five years of supervised release. Zebulun Smith, 35, of Albuquerque, pled guilty on Dec. 19, 2016, Hernandez pled guilty on Jan. 4, 2017, and Christopher Ortega, 44, of Albuquerque, pled guilty on Jan. 18, 2017. Smith, Hernandez and Ortega remain in custody pending sentencing hearings.
The remaining eight defendants have entered pleas of not guilty. If convicted on the drug trafficking charges in the superseding indictment, each defendant faces a maximum penalty of a mandatory minimum ten years to a maximum of life in prison. Reynolds faces up to ten years in prison if convicted on the money laundering charge. Charges in indictments and criminal complaints are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA and the HIDTA Region I Narcotics Task Force, with assistance from the Bernalillo County Sheriff’s Office and is being prosecuted by Assistant U.S. Attorneys Timothy S. Vasquez and Joel R. Meyers pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
The HIDTA Region I Narcotics Task Force is comprised of the Albuquerque Police Department, Albuquerque office of the DEA, Pojoaque Tribal Police Department, Rio Rancho Police Department, Sandoval County Sheriff’s Office and the Valencia County Sheriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Albuquerque Man Facing Federal Armed Robbery ChargesRead the Press Release
ALBUQUERQUE – This morning a U.S. Magistrate Judge sitting in Albuquerque, N.M., found probable cause to support a criminal complaint charging Paul Salas, 46, of Albuquerque, with violating the Hobbs Act by robbing the Verizon store located at 8060 Academy Rd NE in Albuquerque. The Magistrate Judge also entered an order requiring Salas to remain in custody pending trial based on findings that Salas poses a risk of flight and danger to the community.
Salas was arrested on March 28, 2017, on a criminal complaint charging him with violating the Hobbs Act on March 16, 2017, in Bernalillo County, N.M. According to the complaint, Salas allegedly brandished a firearm as he entered the Verizon store located at 8060 Academy Rd NE in Albuquerque and demanded money from the store’s safe. The complaint further alleges that Salas ordered a store employee to empty a cash register and the store safe, which contained approximately 22 new cellphones into Salas’ bag. Salas fled the store and was apprehended a short time later.
If convicted of the Hobbs Act robbery charge, Salas faces a statutory maximum penalty of 20 years in prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Paul H. Spiers is prosecuting the case as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Albuquerque Couple Plead Guilty to Prescription Drug Trafficking and Money Laundering ChargesRead the Press Release
ALBUQUERQUE – Yvonne Garcia, 54, and Gerald Roberts, 49, a married couple from Albuquerque, N.M., entered guilty pleas today in federal court to drug trafficking and money laundering charges. Under the terms of the plea agreements, Garcia will be sentenced to 46 months in prison and Roberts will be sentenced to 51 months in prison followed by terms of supervised release to be determined by the court.
The plea agreements also require Garcia and Roberts to forfeit the proceeds of their criminal conduct, including more than $87,000 in cash seized from the couple’s bank accounts and safe deposit box, and a 2016 Toyota Camry, a 2016 Toyota Tacoma truck and a 2013 BMW motorcycle.
Garcia and Roberts were arrested in Sept. 2016, on an eight-count indictment charging them with trafficking controlled substances in Bernalillo County, N.M. Garcia and Roberts were charged with conspiring to distribute oxycodone, oxymorphone and alprazolam from May 2016 through Sept. 2016. The indictment also charged the couple with distributing oxycodone on three separate occasions in May, June and July 2016; distributing oxymorphone on four occasions in May, June, July and Sept. 2016; and distributing alprazolam in July 2016. The indictment included forfeiture provisions requiring Garcia and Roberts to forfeit proceeds of their drug trafficking activities, including $15,500 and three vehicles, to the United States.
During today’s proceedings, Garcia and Roberts each pled guilty to the conspiracy charged in the indictment and to felony informations charging them with conspiring to launder drug proceeds. According to the plea agreement, between May 2016 and Sept. 2016, Garcia and Roberts sold oxycodone, oxymorphone and alprazolam to an individual who unbeknownst to them was an undercover DEA agent. Garcia and Roberts deposited the proceeds of their illegal drug transactions into Wells Fargo checking and savings accounts in amounts that would not trigger currency-reporting requirements that could alert law enforcement authorities to their illegal activities. Garcia and Roberts used the drug proceeds in the bank accounts to make payments on their residential mortgage and vehicle loans.
Garcia and Roberts remain in custody pending sentencing hearings, which have yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorneys Shana B. Long and Peter J. Eicker are prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Akron man indicted for having methamphetamine and four firearmsRead the Press Release
An Akron man was indicted on federal drug and firearms charges, said Acting U.S. Attorney David A. Sierleja.
Curtis Earl Tucker, Jr., aka Reginald T. Shannon, 36, was indicted on one count of possession with the intent to distribute methamphetamine and one count of being a felon in possession of firearms and ammunition.
On March 9, 2017, Tucker possessed with the intent to distribute more than 500 grams of methamphetamine and a Smith & Wesson SDVE, 9mm pistol, a Colt Trooper MK3, .357 magnum revolver, a Ruger, model P95, 9 mm pistol, and a Armi Tan Foglio .25 caliber pistol, and ammunition, despite a prior federal conviction for distribution of crack cocaine, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration and the Akron Police Department, Narcotics Unit. matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Additional Bank Robbery Charges for Two Scranton MenRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Christian Gonzalez, age 23, and Anthony Ocasio, age 21, both of Scranton, Pennsylvania, were charged on March 28, 2017, in a superseding indictment by a federal grand jury for multiple counts of bank robbery.
According to United States Attorney Bruce D. Brandler, the superseding indictment alleges that Gonzalez and Ocasio committed the following three bank robberies together:
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January 12, 2017, Citizens Savings Bank, Cedar Avenue, Scranton, approximately $2,000 stolen;
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December 27, 2016, NBT Bank, Wyoming Avenue, Kingston, approximately $2,550 stolen; and
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December 22, 2016, Fidelity Bank, Birney Avenue, Moosic (attempt).
Gonzalez alone is charged with the following bank robbery:
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December 5, 2016, NBT Bank, Keyser Avenue, Scranton, approximately $7,000 stolen.
This investigation is ongoing and being conducted by the Federal Bureau of Investigation and the Scranton Police Department. Assistant United States Attorney Michelle Olshefski is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offense is 80 years in prison for Gonzalez, 60 years in prison for Ocasio, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Tuesday 28 March 2017
Windsor Man Sentenced to 9 Years in Federal Prison for Distributing Child PornographyRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JONATHAN RHOADES, 32, formerly of Windsor, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 108 months of imprisonment, followed by a lifetime of supervised release, for distributing child pornography.
According to court documents and statements made in court, in December 2014, a member of the Connecticut State Police’s Computer Crimes squad, operating in an undercover capacity, accessed a peer-to-peer file sharing network and downloaded six videos of minors engaging in sexually explicit conduct from an Internet Protocol (IP) address that was subsequently linked to RHOADES’s residence in Windsor.
On March 10, 2015, law enforcement officers executed a search warrant RHOADES’s residence and seized a desktop computer, laptop computer and other items. Forensic analysis of the seized computers revealed at least 1,533 images and 49 videos of child pornography, most of which featured children younger than the age of five.
RHOADES has been detained since his arrest on related state charges on March 18, 2015. On January 3, 2017, he pleaded guilty to one count of distribution of child pornography.
In 2005, RHOADES, who had been serving in the U.S. Navy in Jacksonville, Florida, was convicted through a Special Court Martial in connection with his receipt of 98 images of child pornography. He was sentenced to 12 months of imprisonment and received a “bad conduct” discharge from the military.
This matter was investigated by the Connecticut State Police and Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Vallejo Man Sentenced to over 3 Years in Prison for False Claims in Tax Refund SchemeRead the Press Release
SACRAMENTO, Calif. — United States District Judge John A. Mendez sentenced Kenneth Knockum, 48, of Vallejo, today to three years and 10 months in prison for three counts of filing false claims against the United States, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Knockum was scheduled to be sentenced on May 10, 2016. When he failed to appear, a no bail bench warrant was issued and he was arrested in Vallejo on March 14, 2017.
According to evidence presented at a three–day bench trial in January 2016, Knockum prepared and filed taxes on behalf of himself and others utilizing an OID tax fraud scheme. Knockum prepared and filed tax returns claiming massive amounts of a particular kind of investment interest income, known as Original Issue Discount income. He also claimed that large portions of such income were withheld by financial institutions and paid to the Internal Revenue Service. The returns sought large refunds of such income — one return requested a refund of over $1.4 million, and another made a claim for over $500,000. Through a complex process, Knockum generated false 1099-OIDs and other tax forms to support the claimed income and taxes and filed those documents utilizing an IRS electronic filing system that requires special software and is used primarily by financial institutions and brokerage firms. The IRS caught the majority of the false returns and declared the claims to be frivolous, though the agency did sustain losses of over $125,000 in fraudulent refunds that were actually issued.
This case was the product of an investigation by the IRS, Criminal Investigation. Assistant United States Attorney Roger Yang prosecuted the case.
United States Attorney Announces Release of “A Call to Action” A Report and Recommendations Concerning the Heroin and Opioid Epidemic in Metro LouisvilleRead the Press Release
Report draws from the Heroin and Opioid Response Summit held December 1, 2016
Recommendations include requiring an intensified commitment in the areas of treatment, prevention and law enforcement
final_a_call_to_action.pdfLOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. today announced the state-wide release of A Call to Action: Report and Recommendations from the Louisville Heroin and Opioid Response Summit.
The nearly 40 page report summarizes information shared during the December 1, 2016, Summit held at the University of Louisville School of Medicine. The one-day event, hosted by the United States Attorney’s Office for the Western District of Kentucky in conjunction with the DEA/360 Strategy Program and the University of Louisville School of Medicine, was attended by more than 300 professionals working to combat heroin and opioid abuse, which is one of the most urgent and destructive threats to Metro Louisville’s health and safety. The Summit sought to enhance collaboration across public safety and public health domains and across the private and public sectors to improve the community’s response to the crisis.
The report includes detailed information about the heroin and opioid problem in Louisville, the responses of various agencies and professionals developed during panel-led discussions, and the evidence-based solutions presented by speakers and other sources.
“A Call to Action urges intensified efforts in the areas of treatment, prevention, and law enforcement,” stated United States Attorney John Kuhn. “We must improve access to treatment, broaden our support of people in recovery, intensify our drug-use prevention efforts with young people, and build a comprehensive data-sharing system from partnerships between public health and public safety.”
Recommendations include:
• Addiction treatment should be available for all persons seeking treatment.
• Prevention programs built upon evidence-based principles should be offered in all schools.
• Education outreach to the general public concerning opioid risks, addiction, and treatment should be expanded.
• Law enforcement should improve and intensify efforts to eliminate the supply of heroin, fentanyl, opioid analogues and diverted pharmaceuticals.
• All sectors working on and affected by the heroin and opioid problem should collaborate to share data and information even if not mandated to do so.
• Kentucky should establish a comprehensive, centralized drug data collection, analysis and sharing system.
• Recovery support programs and systems should be developed in schools and throughout the community.
U. S. Attorney Kuhn concluded, “Only two things can defeat us in our battle against this epidemic: a lack of commitment and a failure to collaborate. A serious and sustained commitment to resolve this crisis will bring us the resources we need, and our collaboration will broaden our impact immeasurably. Together, we can build a healthier community and bring this destructive chapter to an end.”
Union City Man Sentenced to 30 Years for Production of Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN —Erin Mal Killey, age 30, of Union City, Michigan, was sentenced today to thirty years in federal prison for producing child pornography, announced Acting U.S. Attorney Andrew Birge. "It is crucial that we protect society’s most vulnerable members from sexual exploitation and ensure swift and certain punishment for those predators who would exploit children," Birge commented.
In announcing the sentence, U.S. District Judge Paul L. Maloney commented on the victim impact statements received in the case, noting that they were "compelling and represent devastation" suffered by victims of child exploitation. Following his term of incarceration, Killey will serve ten years on supervised release. He will also be required to register as a sexual offender.
Killey took sexually explicit photographs of a seven year-old girl he was babysitting and emailed them to an undercover law enforcement agent. He also sent the agent other images from a child pornography collection Killey had amassed. As a result of this conduct, Killey was charged with production of child pornography, distribution of child pornography, and possession of child pornography. Killey pleaded guilty to production of child pornography in October of 2016. At sentencing, the U.S. Attorney’s Office emphasized that Killey had also admitted molesting the child he photographed.
"As demonstrated in this investigation, the sexual exploitation of children is sadly often perpetrated by those considered to be responsible adults in their lives. The FBI will continue to dedicate resources to the investigation and prosecution of sexual predators who commit crimes against children, the most vulnerable and innocent victims of crimes," said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office; county prosecutor’s offices; and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
This particular case is the result of an investigation by the FBI and Union City Police Department. The Branch County Prosecutor’s Office referred the case for federal prosecution. Assistant U.S. Attorney Alexis M. Sanford prosecuted it.
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U.S. Attorney's Office Concludes Investigation into Fatal Shooting in Northeast WashingtonRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia announced today that it has completed its review of the June 27, 2016, fatal shooting of Sherman Evans, Sr., by Metropolitan Police Department (MPD) officers in the 100 block of Varnum Street NE. After a careful review of all of the evidence, the U.S. Attorney’s Office has concluded that there is insufficient evidence to pursue federal criminal civil rights or District of Columbia charges against the officers involved in the fatal shooting of Mr. Evans.
The U.S. Attorney’s Office and the Metropolitan Police Department conducted a comprehensive review of the incident. This included interviews of civilian and law enforcement witnesses, as well as a review of autopsy and toxicology reports; Mobile Crime and District of Columbia Department of Forensic Sciences reports, photographs, and diagrams; body worn camera footage; audio transmissions; and physical evidence collected on the scene, including a BB pistol that is virtually identical in appearance to a real firearm.
According to the evidence, on June 27, 2016, at approximately 10:22 p.m., Mr. Evans called 911 and told the dispatcher, “yes, miss, look, uh, uh, it's a man out in front of the building brandishing a gun” in front of 109 Varnum Street NE. When the dispatcher asked for additional information, Mr. Evans, whose cellphone was used to make the 911 call and whose voice on the 911 call was authenticated, repeated, “It’s a man out in front of the building brandishing a gun.” Mr. Evans then disconnected the call.
Several officers responded to the 100 block of Varnum Street NE, for the report of a “man with a gun.” When they arrived, Mr. Evans was standing outside on the sidewalk with a weapon, later identified as a Marksman Repeater .177 caliber BB gun, in his right hand. As shown on the body worn camera footage and as reported by witnesses, although Mr. Evans initially had the barrel of his weapon pointed towards the ground, on several occasions, he raised the barrel up, pointing the weapon in the officers’ direction. The officers did not initially fire their weapons. Rather, over a period of several minutes, they repeatedly ordered Mr. Evans to “drop the gun,” and “come on, sir, put it down. We’ll talk, we’ll talk.” Mr. Evans, however, did not comply. After several minutes, Mr. Evans again pointed his weapon at the officers, but this time he started to move in the officers’ direction. At that point, the officers started shooting.
An autopsy revealed that Mr. Evans, 63, was shot two to three times, including once in the right forearm, once in the right buttock, and once in the chest, which was possibly a reentry wound from the gunshot wound to the right forearm. The Toxicology Report further indicated the presence of narcotics in Mr. Evans’s blood and urine.
After a careful, thorough, and independent review of the evidence, federal prosecutors have found insufficient evidence to prove beyond a reasonable doubt that the officers used excessive force under the circumstances. To the contrary, there is sufficient evidence to corroborate the officers’ account that they were acting in self-defense at the time of the shooting.
Use-of-force investigations generally
The U.S. Attorney’s Office reviews all police-involved fatalities to determine whether sufficient evidence exists to conclude that any officers violated either federal criminal civil rights laws or District of Columbia law. To prove such violations, prosecutors must typically be able to prove that the involved officers willfully used more force than was reasonably necessary. Proving “willfulness” is a heavy burden. Prosecutors must not only prove that the force used was excessive, but must also prove, beyond a reasonable doubt, that the officer acted with the deliberate and specific intent to do something the law forbids. A conclusion that “there is insufficient evidence” is not meant to suggest anything further about what evidence, if any, exists.
The U.S. Attorney’s Office remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are investigated fully and completely. The Metropolitan Police Department’s Internal Affairs Division investigates all police-involved fatalities in the District of Columbia.
Two Georgia State Prisoners Sentenced for Committing Tax Fraud using Stolen Identities from PrisonRead the Press Release
GAINESVILLE, Ga. - Enrique Toribio has been sentenced to four years in federal prison for engaging in income tax fraud by providing names and Social Security numbers to a tax preparer, and instructing the tax preparer to file fraudulent income tax returns on his behalf using those stolen identities, all while serving his sentence as an inmate in the Georgia Department of Corrections.
“This case highlights the continuing problem of inmates in state prisons using contraband cellular phones to reach beyond the prison walls and continue to victimize our community,” said U. S. Attorney John Horn. “Identity theft is bad enough, but victims shouldn’t have to defend themselves against those who are already serving time for other serious crimes.”
“Identity theft schemes wreak havoc in the lives of victims, often causing extensive financial harm and hardship to countless Americans each year. In addition, the use of fraudulent identity documents can also poses significant national security risk,” said Nick S. Annan, special agent in charge of ICE Homeland Security Investigations Atlanta. “We owe it to the victims of these schemes to pursue cases aggressively; as such, HSI actively partners with governments across the world to dismantle these transnational criminal organizations, bring perpetrators to justice and recoup victims’ losses wherever possible.”
“Sophisticated stolen identity refund fraud schemes have the potential to harm many taxpayers and put large amounts of public money at risk,” said James E. Dorsey, Acting Special Agent in Charge, IRS Criminal Investigation. “Enrique Toribio and his co-conspirators demonstrated a blatant disregard of the integrity of the United States tax system and caused immeasurable hardship to innocent victims. We, along with our law enforcement partners at Department of Homeland Security and the United States Attorney's Office, continue to do our part in protecting the sanctity and integrity of the tax system and those individuals whose identities were stolen, as well as recovering any monetary loss against the U.S. Treasury.”
According to U.S. Attorney Horn, the charges and other information presented in court: Toribio provided 39 stolen identities to a tax preparer via a contraband cell phone while incarcerated at Hancock State Prison. At the time, Toribio was serving an 18-year sentence for aggravated assault. He enlisted his mother, Rosa Toribio-Gama, and sister, Lupita Rodriguez-Toribio, to meet with the tax preparer outside the prison to sign the fraudulent income tax returns.
Marcus Burke, also a prisoner within the Georgia Department of Corrections, provided 29 stolen identities to the same tax preparer by using a contraband cell phone from Hancock State Prison and through a SunTrust bank employee. At the time, Burke was serving a 20-year sentence for voluntary manslaughter.
Both Toribio and Burke were convicted of two counts of aggravated identity theft and one count of conspiracy to commit tax fraud on August 30, 2016 after both pleaded guilty. All involved in these cases and their sentences are as follows:
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Enrique Toribio, 30, of Gainesville, Georgia, has been sentenced to four years in prison to be followed by three years of supervised release.
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Marcus Burke, 35, of Atlanta, Georgia, was sentenced on December 8, 2016, to three years, three months in prison to be followed by three years of supervised release.
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Rosa Toribio-Gama, 48, of Gainesville, Georgia, was sentenced to three years of probation with six months to be served on home confinement, and ordered to pay restitution in the amount of $3,650, to be paid jointly with Rodriguez-Toribio. She was charged for her role in the income tax fraud, after signing tax forms allowing the tax preparer to e-file. Toribio-Gama was convicted of conspiracy to commit income tax fraud after pleading guilty on October 28, 2016.
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Lupita Rodriguez-Toribio, 25, of Gainesville, Georgia, was sentenced to three years of probation, and ordered to pay restitution in the amount of $3,650, to be paid jointly with Toribio-Gama. She also was charged for her role in the fraud, after she signed fraudulent income tax returns prepared by the tax preparer. Rodriguez-Toribio was convicted of conspiracy to commit income tax fraud after pleading guilty on December 7, 2016,
This case was investigated by the Department of Homeland Security, Homeland Security Investigations and the Internal Revenue Service – Criminal Investigation.
Assistant United States Attorneys William L. McKinnon, Jr. and Jennifer Keen prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
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Turkish Banker Arrested for Conspiring to Evade U.S. Sanctions Against Iran and Other OffensesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Division of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a Complaint charging MEHMET HAKAN ATILLA with conspiring with others, including Reza Zarrab, a/k/a “Riza Sarraf,” to use the U.S. financial system to conduct transactions on behalf of the Government of Iran and other Iranian entities, which were barred by United States sanctions, and to defraud U.S. financial institutions by concealing the true nature of these transactions. ATILLA was arrested on March 27, 2017, and will be presented later today in Manhattan federal court before United States Magistrate Judge James C. Francis IV.
Acting U.S. Attorney Joon H. Kim stated: “As alleged, Mehmet Hakan Atilla, a Turkish banker, participated in a years-long scheme to violate American sanctions laws by helping Reza Zarrab, a major gold trader, use U.S. financial institutions to engage in prohibited financial transactions that illegally funneled millions of dollars to Iran. As alleged in the criminal complaint unsealed today, Atilla worked with Zarrab to create and use fraudulent documents to try to disguise prohibited Iranian financial transactions as food that would qualify under the humanitarian exception to the sanctions regime. United States sanctions are not mere requests or suggestions; they are the law. And those who use the American financial system to violate the sanctions laws, as Atilla is alleged to have done, will be investigated and prosecuted aggressively. I thank the FBI and the career prosecutors in my Office for their tireless work and dedication in this and other important investigations of alleged sanctions violators.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Iran continues to illustrate it will use whatever means necessary to evade sanctions and violate U.S. law. Our work in this case shows the unscrupulous behavior by exposing how the men charged allegedly moved massive amounts of money through U.S. banks disguised as humanitarian efforts to feed people in need. In this instance, they allegedly utilized a Turkish national and a financial institution that knowingly shielded the true nature of the transactions. The FBI and the U.S. Intelligence Community have dedicated investigators and analysts who won’t stop weeding out every action Iran takes to continue its alleged illegal activity.”
According to the allegations contained in the Complaint[1]:
Beginning in or about 1979, the President has repeatedly found that the situation in Iran constitutes an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States and declared a national emergency to deal with the threat. Pursuant to these presidential declarations, the United States has instituted a host of economic sanctions against Iran and Iranian entities pursuant to the International Emergency Economic Powers Act (the “IEEPA”). This sanctions regime prohibits, among other things, financial transactions involving the United States or United States persons that were intended for the Government or Iran or Iranian entities.
Specifically, ATILLA, Zarrab, and others protected and hid Zarrab’s ability to provide access to international financial networks, including U.S. financial institutions, to the Government of Iran, Iranian entities, and entities identified by the Department of the Treasury Office of Foreign Assets Control as Specially Designated Nationals (“SDNs“). They did so by, among other things, using the Turkish bank at which ATILLA acted as Deputy General Manager of International Banking (“Turkish Bank-1”) to engage in transactions that violated U.S. sanctions against Iran. In particular, they took steps to protect and hide Zarrab’s ability to supply currency and gold to the Government of Iran, Iranian entities, and SDNs using Turkish Bank-1 without subjecting Turkish Bank-1 to U.S. sanctions. As described in more detail in the Complaint, ATILLA, Zarrab, and others conspired to create and use false and fraudulent documents to disguise prohibited transactions for Iran and make those transactions falsely appear as transactions involving food and thus falling within humanitarian exceptions to the sanctions regime.
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MEHMET HAKAN ATILLA, 47, is a resident and citizen of Turkey. ATILLA is charged with conspiracies to violate the IEEPA and to commit bank fraud. The conspiracy to violate the IEEPA carries a maximum term of 20 years in prison. The bank fraud conspiracy count carries a maximum term of 30 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division, and the Department of Justice, National Security Division, Counterintelligence and Export Control Section. He also thanked U.S. Customs and Border Protection for their assistance in the arrest, and the Justice Department’s Office of International Affairs for its assistance on this case.
The prosecution of this case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Michael D. Lockard, Sidhardha Kamaraju, and David W. Denton, Jr., and Special Assistant United States Attorney Dean Sovolos, are in charge of the prosecution, with assistance from Trial Attorney David Recker of the Counterintelligence and Export Control Section.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Toledo resident charged with theft of government fundsRead the Press Release
Marita Holland, 32, of Toledo, was charged via criminal information with theft of government funds, said David A. Sierleja, Acting U.S. Attorney.
Holland, in 2012, illegally received two checks from the U.S. Treasury totaling approximately $16,793, according to the information.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case was investigated by the Internal Revenue Service and is being handled by Assistant United States Attorney Gene Crawford.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tennessee General Sessions Judge Charged with Attempting to Obstruct Justice through Bribery and Witness TamperingRead the Press Release
A general sessions judge was charged today in a federal criminal complaint with attempting to obstruct justice through bribery and witness tampering.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Jack Smith of the Middle District of Tennessee and Assistant Special Agent in Charge Matthew Espenshade of the FBI made the announcement.
Cason “Casey” Moreland, 59, of Nashville, was charged with obstruction of justice and witness tampering in a complaint filed in the Middle District of Tennessee. Moreland was arrested this morning and is expected to make his initial appearance later this afternoon.
“The court and criminal justice system function justly only if the public has confidence in their independence and impartiality. Abuses of power like the one charged in this case erode that confidence,” said Acting Assistant Attorney General Blanco. “Our prosecutors and law enforcement partners work diligently every day to root out corruption like that charged and to ensure the public can trust our public institutions.”
“The allegations set forth in the complaint are some of the most egregious abuses of power that I have ever seen,” said Acting U.S. Attorney Smith. “Such an abuse of power undermines the credibility of and destroys the public’s trust in the court system and strikes at the very essence of our judicial branch of government. Public corruption remains one of the highest priorities of the U.S. Attorney’s Office and the FBI and officials who engage in such behavior will always be thoroughly investigated and vigorously prosecuted.”
“Public corruption of this nature threatens the public's confidence in our judicial system and the administration of justice,” said Assistant Special Agent in Charge Espenshade. “This is why public corruption is the FBI's top criminal investigative priority. The FBI and our partner law enforcement agencies will not allow these behaviors to shake the foundations of our society.”According to the complaint, Moreland served as a general sessions judge in Davidson County, Tennessee, and allegedly violated federal anti-corruption statutes by soliciting, accepting and extorting things of value in return for performing official acts that benefitted those persons and their associates.
The criminal complaint alleges that Moreland in fact became aware of the FBI’s investigation on Feb. 1, 2017, when agents attempted to interview him. The complaint alleges that Moreland knew that an individual was a material witness in this investigation and that the witness had made statements implicating his criminal conduct.
The complaint alleges that beginning in approximately March 1, 2017, Moreland took steps to obstruct and interfere with the federal investigation by attempting to have the witness sign an affidavit recanting prior statements about Moreland.
Specifically, the complaint alleges that Moreland devised a scheme to pay several thousand dollars to the witness in exchange for changing that witness’s statements about Moreland. Moreland also conveyed his desire to orchestrate a traffic stop where the witness would be arrested for drugs that had been previously planted on the witness. To conceal his involvement in the scheme, Moreland allegedly instructed another individual to use a burner phone purchased under a fictitious name and speak through an intermediary when corresponding with the witness.
The complaint also alleges that on March 11, 2017, Moreland gave the other individual an affidavit, written as though the witness had authored it and paid the other individual $5,100 cash to insure that his fingerprints would not be on the affidavit. During subsequent conversations, the other individual told Moreland that the witness had agreed to sign the affidavit for an additional $1,000, and Moreland allegedly provided an additional $1,000 cash to pay the witness.
A criminal complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Moreland Complaint
The FBI investigated the case. Trial Attorney Lauren Bell of the Justice Department’s Public Integrity Section and Assistant U.S. Attorney Cecil Vandevender of the Middle District of Tennessee prosecuted the case.Ten Members and Associates of the Bonanno Crime Family Indicted for Racketeering and Related ChargesRead the Press Release
Earlier today, a 37-count indictment was unsealed in United States District Court for the Eastern District of New York charging 10 members and associates of the Bonanno organized crime family of La Cosa Nostra (the “Bonanno family”) with racketeering conspiracy, including predicate acts of murder conspiracy, attempted murder, extortion, illegal gambling, robbery conspiracy, arson conspiracy, narcotics distribution conspiracy and obstruction of justice conspiracy. The indictment relates to the defendants’ alleged criminal activities in Howard Beach, Queens, and elsewhere between January 1998 and March 2017.
The defendants -- Ronald “Ronnie G.” Giallanzo, an acting captain in the Bonanno family, Michael Padavona, Michael Palmaccio and Nicholas “Pudgie” Festa, soldiers in the Bonanno family, and Christopher “Bald Chris” Boothby, Evan “The Jew” Greenberg, Richard Heck, Michael Hintze, Robert “Chippy” or “Chip” Tanico, and Robert Pisani, associates of the Bonanno family -- were arrested earlier today and are scheduled to be arraigned this afternoon before Magistrate Judge Vera M. Scanlon in Brooklyn federal court. The case has been assigned to United States District Judge Dora L. Irizarry.
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Division (FBI).
The indictment is the result of a long-term investigation, with evidence gathered through a variety of methods including wiretap recordings of the defendants, cooperating witnesses, government and public records, electronic evidence and visual surveillance, all of which revealed a pattern of violence and intimidation that the defendants employed to further their enterprise's economic interests.
“Today’s arrests reveal La Costra Nostra’s continued presence in the community. Through acts of violence, including murder conspiracy, loansharking, illegal gambling, robbery and other offenses, the defendants are alleged to have amassed a fortune in ill-gotten gains. With these arrests, the defendants will be held accountable for their wide-ranging and destructive conduct,” said Acting United States Attorney Rohde. Ms. Rohde thanked the Queens District Attorney's Office, New York City Police Department, United States Probation Department of the Eastern District of New York and the Social Security Administration, Office of the Inspector General, for their assistance on the investigation.
“The Mafia hasn’t stopped operating and the crimes these members are charged with today proves that. To put an end to their brand of violence and criminal behavior, the FBI/NYPD Joint Organized Crime Task Force will continue pursuing them with every tool we have. I’d like to commend the work of the agents and detectives who put much time and effort into this investigation,” said Assistant Director-in-Charge Sweeney.
Loansharking
As alleged in the indictment and detention memo, Giallanzo, an acting captain in the Bonanno family, conducted a lucrative loansharking operation in which he provided money to, among others, defendants Festa, Palmaccio, Padavona, Hintze and Heck to extend extortionate loans to, and collect from, numerous individuals. Even while incarcerated, Giallanzo kept watch over his illicit loansharking book, directing his associates to commit acts of violence to ensure that the customers paid the exorbitant weekly interest rate. At one point, Giallanzo had lent over $3 million in extortionate loans to customers. Padavona, a Bonanno soldier, also conducted his own loansharking business with defendants Greenberg and Tanico.
The indictment alleges multiple counts involving threats and acts of violence to collect debts owed to Giallanzo and his associates.
For instance, in May 2013, within one month of his release from prison, Giallanzo ordered an associate of the Bonanno family (“Associate-1”) to bring to him a loanshark customer who owed Giallanzo $250,000 but had not been making the required weekly interest payments. Giallanzo and Associate-1 placed the victim in Associate-1’s car and beat him until the customer soiled himself, while Giallanzo screamed, “Where’s the f-----g money?”
As another example, in June 2014, Greenberg described to a customer that he used acts of violence to collect payments. He said, “I get my s--t. I blow cars up. I f------g knock on people’s doors. I pull them out of their f------g house.” Greenberg went on to describe his assault of another victim who was late paying a debt. “I f-----g grabbed another kid walking out of his house. I was like, he was like, ‘What’s up?’ I say, ‘What’s up?’ I grabbed him by the ankles, I f------g went like this, his head hit the concrete.”
As a result of their illegal activities, including loansharking, illegal gambling, robbery, extortion and other offenses, the defendants earned over $26 million in illicit proceeds, which the indictment alleges will be subject to forfeiture if the defendants are convicted. In addition to the cash proceeds of the racketeering conduct, the indictment further alleges that the houses belonging to defendants Giallanzo, Padavona, Palmaccio and Festa, and one of Pisani’s businesses, are subject to forfeiture.
Murder Conspiracy/Attempted Murder
In addition to the extortion charges, the indictment charges Giallanzo and Padavona with participating in a plot to murder an individual in the summer of 2006. Giallanzo, who at the time was on pre-trial release for a previous case filed in this District, ordered the murder of the victim because, among other reasons, the victim had robbed members of Giallanzo’s crew. The dispute lasted several months, during which Giallanzo’s crew and the victim shot at each other on the streets of Howard Beach on several occasions.
Obstruction of Justice and Perjury
Padavona and Tanico are separately charged with conspiring and attempting to obstruct the federal grand jury proceeding into their criminal activities by coordinating false testimony by Tanico. According to wiretap evidence, in April 2014, after Tanico was subpoenaed, he contacted Bonanno soldier Padavona and solicited his help. Padavona then contacted Tanico’s attorney and arranged to meet to pay Tanico’s legal fees. The next day, Tanico lied in the grand jury, falsely claiming that he had not spoken with Padavona about the subpoena.
Possible Penalties
If convicted of the racketeering or loansharking offenses, the defendants face a maximum of 20 years in prison. If convicted of the obstruction of justice offenses, Padavona and Tanico face a maximum of 20 years in prison. If convicted of operating an illegal gambling business, Giallanzo, Boothby and Pisani face a maximum of 5 years in prison. If convicted of perjury, Tanico faces a maximum of 5 years in prison.
The government’s case is being prosecuted by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Nicole Argentieri, Lindsay K. Gerdes, Keith D. Edelman and Alicyn L. Cooley are in charge of the prosecution, with assistance provided by Assistant United States Attorney Tanya Y. Hill of the Office’s Asset Forfeiture Unit.
The Defendants:
RONALD GIALLANZO
Age: 46Queens, NY
MICHAEL PADAVONA
Age: 48
Queens, NY
MICHAEL PALMACCIO
Age: 45
Queens, NY
NICHOLAS FESTA
Age: 36
Oceanside, NY
CHRISTOPHER BOOTHBY
Age: 37
Queens, NY
EVAN GREENBERG
Age: 45
Queens, NY
RICHARD HECK
Age: 45
Queens, NY
MICHAEL HINTZE
Age: 53
Queens, NY
ROBERT PISANI
Age: 44
Queens, NY
ROBERT TANICO
Age: 49
Queens, NY
E.D.N.Y. Docket No. 17-CR-155 (DLI