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Thursday 23 March 2017
Greenville Man Pleads Guilty to Possession of a Firearm and AmmunitionRead the Press Release
Contact Person: Max Cauthen, II (864) 282-2100
Greenville, South Carolina---- United States Attorney Beth Drake stated today that Cornelius Trotoyal Wilson, age 38, of Greenville, South Carolina, pled guilty in Federal court in Greenville, South Carolina, to being a felon in possession of a firearm and ammunition, a violation of 18 U.S.C. 922(g). United States District Court Judge Bruce H. Hendricks of Charleston accepted the plea and will impose sentence after she has reviewed the presentence report prepared by the U.S. Probation Office.
Wilson faces a mandatory minimum sentence of fifteen years and a maximum sentence of life in federal prison.
Evidence presented by the government during the plea established that on September 15, 2016, officers with the Simpsonville Police Department responded to a local motel based on a report of a domestic disturbance. Upon arrival at the location, officers made contact with several individuals including Wilson. During the investigation, officers recovered a loaded .25 caliber pistol from Wilson after he told the officers that he had a .25 caliber pistol in his pocket.
Prior to that date, Wilson had previously been convicted of a crime for which he could have received more than a year in prison and agents confirmed that he had not received a pardon nor had his rights restored to possess firearms or ammunition.
The Simpsonville Police Department along with agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case. The case is assigned to Assistant United States Attorney Max Cauthen in the United States Attorney’s Office in Greenville.
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Greenville Man Pleads Guilty to Felon in Possession of a Firearm and AmmunitionRead the Press Release
Contact Person: Max Cauthen, II (864) 282-2100
Greenville, South Carolina---- United States Attorney Beth Drake stated today that Joshua Matthew Garrett, age 26, of Greenville, South Carolina, pled guilty in federal court in Greenville, South Carolina, to being a felon in possession of a firearm and ammunition, a violation of 18 U.S.C. 922(g). United States District Court Judge Bruce H. Hendricks of Charleston, accepted the plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Garrett faces a statutory maximum sentence of 10 years in federal prison.
Evidence presented by the government during the plea established that on November 15, 2016, members of the Greenville County Sheriff’s Office (GCSO) made contact with Garrett in his vehicle.
As Garrett was approached by GCSO, Garrett opened the driver’s side door of the vehicle and an officer observed a handgun in the pocket of the driver’s door. GCSO seized the handgun which was identified as a loaded Harrington & Richardson .22 caliber revolver.
Prior to that date, Garrett had previously been convicted of a crime for which he could have received more than a year in prison and agents confirmed that he had not received a pardon nor had his rights restored to possess firearms or ammunition.
Garrett was arrested federally as a part of “Operation Real-Time.” The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the Upstate community.
In addition to the Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco, and Firearms, Real Time’s core partners include the Greenville Police Department, the Anderson Police Department; the South Carolina Department of Probation, Parole, and Pardon Services; the South Carolina Highway Patrol; United States Probation; the Department of Homeland Security; the Federal Bureau of Investigation; the Drug Enforcement Administration; the 13th Circuit Solicitor’s Office; and the United States Attorney’s Office.
Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 90 defendants and seizure of approximately 110 firearms as well as assorted ammunition from prohibited persons.
U.S. Attorney Beth Drake commended the partnership between the state and federal agencies that led to the Bureau of Alcohol, Tobacco and Firearms and the U.S. Attorney’s Office adopting the case, “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”
The Greenville County Sheriff’s Office along with agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case. The case is assigned to Assistant United States Attorney Max Cauthen in the Greenville U.S. Attorney’s Office.
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Gang Members and Mexican Supplier Among Eleven Federal Defendants Charged with Selling Narcotics on Chicago’s West SideRead the Press Release
CHICAGO — Members of a Chicago street gang and a Mexican supplier are among eleven individuals charged for their alleged roles in the distribution of heroin and cocaine on the city’s West Side.
The joint federal and state investigation, dubbed “Operation Shut Travel Down,” spanned more than a year and resulted in the seizures of ten firearms, more than 3,500 grams of heroin, more than 550 grams of cocaine and crack cocaine, and more than 2,000 grams of methamphetamine. Authorities uncovered the alleged criminal activity through the use of wiretapped cellular phones, undercover narcotics purchases and extensive surveillance. The probe was conducted under the umbrella of the Organized Crime Drug Enforcement Task Force (OCDETF), with assistance from the High Intensity Drug Trafficking Area Task Force (HIDTA).
The investigation resulted in charges against eleven defendants in federal court and more than 40 defendants in state court. Law enforcement officers arrested several of the defendants this morning. Authorities today also executed search warrants at two alleged drug stash houses, including a barbershop in the 900 block of South Western Avenue in Chicago.
The charges were announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois; Kimberly M. Foxx, Cook County State’s Attorney; Dennis A. Wichern, Special Agent in Charge of the Chicago Field Division of the Drug Enforcement Administration; James D. Robnett, Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division; and Eddie T. Johnson, Superintendent of the Chicago Police Department. The United States Marshals Service provided valuable assistance.
The federal complaints describe a narcotics-distribution organization in the North Lawndale neighborhood overseen by members of the Traveling Vice Lords street gang. The organization utilized street-level distributors to sell cocaine and heroin at multiple open-air drug markets near the intersection of California Avenue and Lexington Street, according to the complaints. Traveling Vice Lords members used the barbershop to stash the drugs and facilitate distribution. The barbershop’s owner, TYRONE HUNTER, 38, of Chicago, is a ranking member of the gang who is described in the complaints as a drug supplier and a supervisor of the sales.
The complaints identify the operation’s other supervisor as ANTHONY WILLIAMS, 32, of Chicago. Anthony Williams is a Traveling Vice Lord whom law enforcement observed conducting numerous drug transactions, the complaints state. Anthony Williams also sold narcotics to an undercover officer on multiple occasions during the course of the investigation, according to the complaints.
Also charged in the federal complaints are CALVIN WILLIAMS, 41, of Chicago, a Traveling Vice Lord who oversaw the distribution of cocaine and heroin near the intersection of California Avenue and Harrison Street; and several Traveling Vice Lords who sold cocaine and heroin at street level: DEMETRIUS YANCY, 24, of Chicago; RICKY BROOKS, 39, of Chicago; JEROME CHOICE, 46, of Chicago; TERRANCE BROOKS, 34, of Chicago; and ATKINS WILLIAMS, 53, of Chicago.
In addition, two alleged suppliers of the drugs were also charged in the complaints. SIR CHARLES BLAND, 38, of Bolingbrook, and SALVADOR ROJAS-SANTOS, 63, of Mexico, supplied heroin and cocaine to Williams and Hunter for distribution on the West Side of Chicago, according to the charges.
The eleventh federal defendant, JOHN ANTHONY, 40, of Chicago, distributed heroin to undercover officers in North Lawndale on multiple occasions last year, according to the complaints.
Seven of the federal defendants are charged with conspiracy to possess with intent to distribute and distribution of a controlled substance; two are charged with distribution of a controlled substance; one is charged with possession with intent to distribute, and possession of a weapon by an illegal alien; and one is charged with attempted possession with intent to distribute a controlled substance. The federal defendants will begin making initial court appearances this afternoon before U.S. Magistrate Judge Sidney I. Schenkier in Chicago.
The state defendants will appear later in Cook County Criminal Court.
The investigation was conducted under the umbrella of the OCDETF program, a partnership between federal, state and local law enforcement agencies. The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations.
The public is reminded that complaints contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The U.S. Attorney’s Office in Chicago is representing the government in the federal cases. The cases are being prosecuted by Assistant U.S. Attorney Jordan Matthews of the Violent Crimes Section, and Assistant U.S. Attorney Nani Gilkerson of the Narcotics Section.
Fugitive Captured by U.S. Marshals Pleads Guilty to Firearms ChargeRead the Press Release
NORFOLK, Va. – A fugitive captured by the U.S. Marshals at a Suffolk hotel on January 6 pleaded guilty today to being a fugitive from justice in possession of firearms and ammunition.
According to the statement of facts filed with the plea agreement, the U.S. Marshals captured convicted felon David Webb, 40, of Georgia, at a hotel in Suffolk after being on the run for multiple outstanding arrest warrants issued in Dekalb and Chatham County, Georgia. During his time as a fugitive, Webb evaded or eluded police on at least three occasions, including one instance when he fled from police by jumping out of the back window of a hotel and hiding in an alligator-infested swamp.
According to the statement of facts filed with the plea agreement, prior to his capture, Webb was able to evade law enforcement through his use of various aliases and false identity documents. When U.S. Marshals arrested the defendant, he was in possession of more than a dozen driver’s licenses bearing his image but associated with different names. These identification documents included driver’s licenses purportedly issued by the states of Texas, Nebraska, Illinois, Connecticut, Tennessee, Kentucky, Georgia, and the District of Columbia. Webb was also in possession of five social security cards bearing names other than his own, a U.S. Department of Veterans Affairs identification card, and a U.S. Military Common Access Card bearing Webb’s picture and claiming the rank of Sergeant in the Army. At the time of his arrest, U.S. Marshals also recovered methamphetamine, $7,300 in cash, a digital scale, drug packaging materials, ammunition, and three firearms, one of which had an obliterated serial number.
Webb faces a maximum penalty of 10 years in prison sentenced on July 5. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Robert Mathieson, U.S. Marshal for the Eastern District of Virginia; and Thomas E. Bennett, Chief of Suffolk Police, made the announcement after U.S. District Judge Raymond A. Jackson accepted the plea. Special Assistant U.S. Attorney John F. Butler and Assistant U.S. Attorney Kevin Comstock are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-15.
Fort Wayne Man Sentenced to 240 MonthsRead the Press Release
FORT WAYNE – The Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announces that Christian D. Shelton, 39, of Fort Wayne, Indiana was sentenced before Chief District Court Judge Theresa Springmann to a total of 240 months imprisonment and a term of supervised release of 2 years.
On June 4, 2015, at the conclusion of his jury trial, the jury returned verdicts of guilty on all three counts of the Indictment for violations of maintaining a drug involved premises, possessing a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm.
According to documents in this case, from October 26, 2012, through November 19, 2012, Shelton maintained a premises for the purpose of manufacturing, distributing and using controlled substances. On November 19, 2012, he knowingly possessed a firearm in furtherance of maintaining a drug involved premises, and on that same date he knowingly possessed a firearm and ammunition after previously being convicted of felony offenses on July 21, 2003.
This investigation was conducted by the Bureau of Alcohol Tobacco Firearms and Explosives and the Fort Wayne Police Department. This case was handled by Assistant United States Attorney Anthony W. Geller.
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Forsyth Co. Man Sentenced to Prison for Conspiracy to Distribute Marijuana Through the U.S. Mail and Postal Robbery ChargesRead the Press Release
CHARLOTTE, N.C. – Dorian Dent Williams, 25, Kernersville, N.C., was sentenced late yesterday to 100 months in prison on conspiracy to distribute marijuana through the U.S. mail and postal robbery charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, Chief U.S. District Judge Frank D. Whitney ordered Williams to serve three years under court supervision after he is released from prison.
U.S. Attorney Rose is joined in making the announcement by David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS) and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department.
According to documents filed in the case and yesterday’s sentencing hearing, from about November 2015 to January 9, 2016, Williams operated a marijuana trafficking conspiracy, in which he paid people to receive mailed packages containing marijuana. The packages were sent from Arizona to residential addresses in Charlotte and High Point, N.C. using the U.S. Postal Service. According to court records, on January 9, 2016, a U.S. mail carrier was delivering mail and parcels to a residential neighborhood in Charlotte. Court records indicate that the mail carrier had two parcels addressed to a residence, and was in the process of leaving a delivery notice on the door of the residence when he was approached by a female from a neighboring residence. The female asked for the two packages. The mail carrier refused to give her the packages, indicating they were not addressed to her. The mail carrier was then approached by a male, who stood at the doorway of the postal vehicle and demanded the parcels. The mail carrier again refused to hand them over, threatened to call the police and resumed his mail delivery after the man left.
According to court records, while the mail carrier was still on his delivery route, Williams pulled in front of him in a pick-up truck, blocking his postal vehicle. Then, Williams and another male, who was brandishing a handgun, demanded the two parcels. Court records show that the mail carrier handed over the parcels and the two men drove off in the pick-up truck. Williams previously admitted in court documents that he had arranged for the two packages containing marijuana to be mailed to the residential address on the mail carrier’s delivery route, and that he had been waiting nearby for their delivery. According to court records, over the course of the conspiracy, Williams was responsible for shipping approximately 144 kilograms of marijuana from Arizona to North Carolina utilizing the postal service.
Williams pleaded guilty in October 2016 to one count of conspiracy to distribute and to possess with intent to distribute marijuana, and one count of postal robbery. He remains in the custody of the United States Marshals Service pending placement by the Federal Bureau of Prisons. All federal sentences are served without the possibility of parole.
The investigation was led by USPIS and CMPD. Assistant U.S. Attorney Dana Washington, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Former Utz Quality Foods Vendor Sentenced in $1.4 Million False Invoice & Kickback SchemeRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jonathan Haas, age 45, of Easton, Pennsylvania, the owner/operator of a former Utz Quality Foods, Inc. supplier, was sentenced today by United States District Court Judge Yvette Kane to 36 month’s imprisonment for his participation in a false invoice, kickback scheme that defrauded Utz Quality Foods, Inc. (Utz) out of approximately $1.4 million.
Judge Kane ordered Haas to pay $925,146 restitution to Utz and $500,000 restitution to Utz’s insurance carrier, Chubb Insurance, for a total of $1,425,146 in restitution. During the sentencing hearing, Haas submitted a check in the amount of $100,000 towards his restitution obligations.
According to United States Attorney Bruce D. Brandler, Haas, the former owner of Haas Packaging and Design, Inc. in Bethlehem, Pennsylvania, and Kevin Myers, age 38, formerly of Abbottstown, Pennsylvania, and the former Director of Purchasing for Utz, pleaded guilty in July 2016, to an information charging them with wire fraud.
Haas Packaging & Design supplied Utz with shelving and packaging products. The defendants defrauded Utz between January 2010 and August 2014, by Myers’ preparation of approximately 43 bogus purchase orders and ’ submission of approximately 83 false invoices for products Utz never received. After Myers approved ’ false invoices for payment, Haas would kick back a portion of the proceeds to Myers. According to a forensic audit commission by Utz, received approximately $1,425,765 from Utz and from that amount Haas paid Myers approximately $523,500.
Haas and Myers attempted to conceal some of the kickbacks Haas paid Myers as payments for fictional consulting services. The payments were made in the form of checks payable to “Myers Packaging Consulting,” a non-existent, paper company created by Myers.
Judge Kane sentenced Myers to 51 months’ imprisonment in November 2016. Judge Kane ordered Haas to surrender to the Bureau of Prisons to begin serving his sentence on May 23, 2017.
The case was investigated by the Harrisburg Office of the Federal Bureau of Investigation and Utz Quality Foods, Inc. cooperated with the investigation. Assistant United States Attorney Kim Douglas Daniel prosecuted the case.
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Former New Hampshire Resident Pleads Guilty to Failure to Register as A Sex OffenderRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced today that William Soltan, 34, of Suffolk County, New York, pleaded guilty to one count of failing to register as a sex offender as required by the federal Sexual Offender Registration and Notification Act (SORNA).
According to documents that were filed and statements made in court, Soltan left New Hampshire sometime after July 2014 for a temporary visit to New York. At the time he left, Soltan was obligated to return to New Hampshire not later than December 30, 2014. Soltan did not return to New Hampshire, did not register in New Hampshire in 2015, and did not register in New York in 2015. Under SORNA, a person who is required to register must register in each jurisdiction where he resides, is employed or is going to school. SORNA gives an individual three days in which to register.
A sentencing hearing is scheduled for 10 a.m. on June 28, 2017.
The case was investigated by the United States Marshals Service with the assistance of the Manchester Police Department and the Suffolk County, New York, Police Department. The case is being prosecuted by Assistant United States Attorney Donald Feith.
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Former Lebanon Teacher Pleads Guilty to Downloading Child Porn at SchoolRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a former Lebanon Junior High School teacher pleaded guilty in federal court today to downloading child pornography.
Evert Henry, 42, of Lebanon, Mo., pleaded guilty before U.S. District Judge M. Douglas Harpool to the charge contained in a Feb. 23, 2016, federal indictment.
Henry was a teacher in the Lebanon R-3 School District at the junior high school during the time of the offense. By pleading guilty today, Henry admitted that he received child pornography over the Internet from Jan. 1, 2011, to Jan. 13, 2016.
According to court documents, the Information Technology Director of the junior high school, where Henry was employed as a teacher, discovered he was downloading pornography to his school-issued computer while at the school. Henry admitted that “it was possible” that he had viewed child pornography on his computer. He later specified that he had intentionally searched for images of child pornography. When questioned by law enforcement, Henry confessed that he had been viewing child pornography for a considerable amount of time.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Lebanon, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former GSA Official and Husband Plead Guilty in Nepotism SchemeRead the Press Release
ALEXANDRIA, Va. – A former senior official with the General Services Administration and her husband pleaded guilty today to engaging in a nepotism scheme in which they conspired to fraudulently obtain employment from the U.S. government and private federal contractors.
According to the statement of facts filed with their plea agreements, Helen Renee Ballard, 51, and Robert S. Ballard, 56, both of Brandywine, Maryland, pleaded guilty to conspiracy to make false statements to the United States.
Helen Renee Ballard (aka Renee Ballard) was the Director of the Central Office Contracting Division of the U.S. General Services Administration (GSA) from May 2006 to May 2011 and worked for GSA until 2016. From 2010 through July 2014, Renee Ballard and her husband, Robert S. Ballard (aka Steve Ballard), engaged in a scheme to enrich themselves by obtaining employment with federal contractors and the U.S. government through false and misleading statements concerning Steve Ballard’s relation, education, and qualifications. As part of the more than $200,000 scheme, Renee and Steve Ballard fraudulently induced a federal contractor located in Arlington to hire Steve Ballard. The Arlington based contractor then placed Steve Ballard on a federal contract awarded by GSA and supervised by Renee Ballard. Later, Renee Ballard attempted to hire Steve Ballard for a position within GSA under her supervision.
According to the statement of facts, Renee and Steve Ballard caused over 139 false employment applications to be submitted to federal agencies, including the FBI, Office of the Director of National Intelligence, U.S. State Department, U.S. Transportation and Security Administration, Department of Veterans Affairs, Department of Education, Federal Communications Commission, Federal Emergency Management Agency, Department of Labor, U.S. Office of Personnel Management, and the Internal Revenue Service. These applications falsely misrepresented Steve Ballard’s education and qualifications, including that he had earned or taken classes toward a master’s degree and was certified in government contracting at Levels I, II, and III. In order to corroborate these false representations, Renee and Steve Ballard obtained and submitted fake certification documents. In addition to these fraudulent applications, the Ballards sent Steve Ballard’s false resume to the Executive Office of the President in an attempt to obtain employment there. Subsequently, Steve Ballard submitted false applications to at least six different private contractors who worked, at times on-site, with the federal agencies, including GSA and U.S. Customs and Border Protection.
The Ballards each face a maximum penalty of five years in prison sentenced on July 28. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Carol Fortine Ochoa, Inspector General, GSA, made the announcement after the plea was accepted by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorneys Uzo Asonye and Katherine Wong are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-136.
Former Coach USA Inc. Executive Sentenced to 15 Months in Prison for Obstruction of JusticeRead the Press Release
A former executive of Coach USA Inc. was sentenced today for attempting to conceal and destroy documents relevant to a civil antitrust investigation and for providing false and misleading statements during the course of civil antitrust litigation, the Department of Justice announced.
Ralph Groen, of North Carolina, the former vice president of information technology for Coach USA Inc. (Coach), was ordered to serve 15 months in prison and ordered to pay a $5000 criminal fine. On Oct. 14, 2016, Groen pleaded guilty to corruptly obstructing, influencing and impeding a civil antitrust investigation and subsequent litigation brought by the United States and State of New York.
According to court documents filed in this case in the U.S. District Court for the Southern District of New York, Groen directed his subordinates to recall, conceal and destroy end-of-month backup tapes containing emails that were relevant and responsive to the litigation. Additionally, according to court documents, Groen provided false and misleading information to Coach’s investigators and to the United States during the course of a deposition taken as part of the litigation.
The civil litigation, which was filed in the U.S. District Court for the Southern District of New York, related to the New York City hop-on, hop-off tour bus market and challenged Coach’s and City Sights LLC’s formation of the Twin America LLC joint venture in 2009. On Nov. 17, 2015, the district court entered a final judgment requiring Coach and City Sights to pay $7.5 million in disgorgement and to make divestitures to address the competitive harm alleged in the division’s lawsuit.
Today’s sentence is a result of an investigation into obstruction of justice conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Washington Field Office. Anyone with information on price fixing, bid rigging and other anticompetitive conduct should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit http://www.justice.gov/atr/contact/newcase.html or call the FBI’s Washington Office at 202-278-2000.
Former Bureau of Prisons Correctional Officer Sentenced for Sex OffenseRead the Press Release
PHOENIX – Yesterday, Edward Mendoza, 37, of Surprise, Ariz., was sentenced by U.S. District Judge Diane J. Humetewa to 16 months in prison. Mendoza had previously pleaded guilty to sexual abuse of a ward.
Mendoza worked as a Senior Correctional Officer at the Federal Bureau of Prisons in Phoenix, Ariz. His duties included supervision of the women’s camp. Between Feb. 1, 2015, and April 2, 2015, Mendoza engaged in sexual intercourse with a female inmate who he supervised at the camp.
The investigation in this case was conducted by the U.S. Department of Justice, Office of the Inspector General, Denver office. The prosecution was handled by Gayle L. Helart, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-01325-DJH-1
RELEASE NUMBER: 2017-025_Mendoza
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Florida Businessman Pleads Guilty to Conspiracy to Commit Tax and Bank FraudRead the Press Release
Concealed Approximately $2.5 Million in Secret Belize Accounts
A Florida businessman pleaded guilty today in the U.S. District Court for the Middle District of Florida to conspiracy to commit tax and bank fraud, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents filed with the court, Casey Padula, 48, of Port Charlotte, was the sole shareholder of Demandblox Inc. (Demandblox), a marketing and information technology business. Padula conspired with others to move funds from Demandblox to offshore accounts in Belize and disguised them as business expenses in Demandblox’s corporate records. Padula created two offshore companies in Belize: Intellectual Property Partners Inc. (IPPI) and Latin American Labor Outsourcing Inc. (LALO). He opened and controlled bank accounts in the names of these entities at Heritage International Bank & Trust Limited (Heritage Bank), a financial institution located in Belize. From 2012 through 2013, Padula caused periodic payments to be sent from Demandblox to his accounts at Heritage Bank and deposited approximately $2,490,688. Padula used the funds to pay for personal expenses and purchase significant personal assets. However, he falsely recorded these payments in Demandblox’s corporate books as intellectual property rights or royalty fees and deducted them as business expenses on Demandblox’s 2012 and 2013 corporate tax returns causing a tax loss of more than $728,000.
Padula also conspired with investment advisors Joshua VanDyk and Eric St-Cyr at Clover Asset Management (CAM), a Cayman Islands investment firm, to open and fund an investment account that he would control, but that would not be in his name. Heritage Bank had an account at CAM in its name and its clients could get a subaccount through Heritage Bank at CAM, which would not be in the client’s name but rather would be a numbered account. Padula transferred $1,000,080 from the IPPI bank account at Heritage Bank in Belize to CAM to fund a numbered account.
In addition to the tax fraud, Padula also conspired with others to commit bank fraud. Padula had a mortgage on his Port Charlotte, Florida home of approximately $1.5 million with Bank of America (BoA). In 2012, he sent a letter to the bank stating that he could no longer repay his loan. At the same time, Padula provided Robert Robinson, III, 43, who acted as a nominee buyer, with more than $625,000 from his IPPI bank account in Belize to fund a short sale of Padula’s home. Padula and Robinson signed a contract, which falsely represented that the property was sold through an “arms-length transaction,” and agreed that Padula would not be permitted to remain in the property after the sale. Padula in fact never moved from his home and less than two months after the closing, Robinson conveyed it back to Padula by transferring ownership to one of Padula’s Belizean entities for $1. Robinson also pleaded guilty today to signing a false Form HUD-1 in connection with his role in the scheme.
“Casey Padula employed secret offshore bank accounts and shell companies to hide millions and evade U.S. taxes,” said Acting Deputy Assistant Attorney General Goldberg. “As his guilty plea today demonstrates, there are no safe havens any more, whether in Belize, Switzerland or elsewhere around the world, for U.S. taxpayers intent on not paying their fair share of taxes.”
“Today’s plea is the result of another exercise in following the money and it sends a clear message to those who believe they can avoid taxes by hiding their money offshore,” said Chief Richard Weber of IRS Criminal Investigation (CI). “Together with our law enforcement partners, IRS-CI will continue to unravel complex financial transactions and hold those accountable who break the law. IRS-CI special agents will use their financial investigative expertise to ensure taxpayers who violate the law will be brought to justice which is necessary to foster voluntary compliance of our tax laws.”
Padula faces a statutory maximum sentence of five years in prison, a term of supervised release and monetary penalties. As part of his plea agreement, Padula agreed to pay restitution in the amount of $728,609 to the IRS and to BoA in the amount of $728,609. Robinson faces a statutory maximum sentence of one year in prison, a term of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS-CI, who conducted the investigation, and Assistant Chiefs Todd Ellinwood and Caryn Finley of the Tax Division, who are prosecuting the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office of the Middle District of Florida for its assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Federal Law Enforcement Agent Arrested on Charges of Helping Mexican National Illegally Enter the United StatesRead the Press Release
LOS ANGELES – A special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) has been arrested on federal charges of helping a foreign national enter the United States without proper authorization.
Felix Cisneros, 42, of Murrieta, a 10-year veteran of ICE who most recently was assigned to the HSI Inland Empire office, was arrested yesterday afternoon pursuant to a criminal complaint filed by federal prosecutors. The complaint was unsealed this morning, and Cisneros is scheduled to make his initial appearance this afternoon in United States District Court.
The complaint charges Cisneros with aiding and assisting an inadmissible alien to enter the United States, a felony offense that carries a statutory maximum penalty of 10 years in federal prison.
The case against Cisneros is the product of an investigation by the Federal Bureau of Investigation; the Department of Homeland Security, Office of Inspector General; and the ICE Office of Professional Responsibility.
According to the affidavit in support of the criminal complaint, Cisneros took steps that allowed an inadmissible Mexican national to enter the United States. Cisneros allegedly acted at the behest of a local organized crime figure with business interests in Mexico.
The alien – a legal permanent resident, who, as a result of felony convictions, would have been barred from re-entering the United States – was employed by the organized crime figure to negotiate with a Mexican company. The complaint alleges that the organized crime figure asked Cisneros in 2013 to help the alien return to the United States after a trip to Mexico.
Cisneros allegedly helped the alien regain a passport that had been seized several months earlier when the alien had attempted to enter and had been paroled into the United States. The complaint further alleges that Cisneros facilitated the alien’s re-entry into the United States at Los Angeles International Airport.
Cisneros convinced officers with U.S. Customs and Border Protection to return the alien’s passport and re-admit him to the United States “likely through deception,” according to the affidavit.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
Federal Court Bars South Florida Tax Return Preparers from Preparing Tax Returns for OthersRead the Press Release
A federal court in Miami, Florida has permanently barred Aleluya Universal Accounting Services Inc. (Aleluya) and its officers Frantz Petit-Dos, Luczor Fertilien, and David Joseph from preparing federal income tax returns for others, the Justice Department announced today.
In its complaint, the government alleged that Petit-Dos of Fort Lauderdale, Florida, Fertilien of Margate, Florida, and Joseph of Lauderhill, Florida, prepared false returns from Aleluya’s office located at 7537 West Oakland Park Boulevard in Lauderhill, Florida. In addition to barring the defendants from preparing tax returns, the court ordered them to post a notice, in English and in Creole, in the store window where they prepared tax returns stating that the defendants are barred from preparing tax returns for others.
According to the government’s complaint, the defendants prepared tax returns that unlawfully understated income tax liabilities and overstated refunds by fabricating and/or exaggerating deductions and tax credits their clients are not eligible to take. For example, the defendants claimed Fuel Tax Credits for customers who did not qualify for this credit, according to the complaint. In particular, Joseph falsely advised one customer that she was eligible for the Fuel Tax Credit because she was self-employed and drove herself to work, according to the complaint. Similarly, Fertilien told the Internal Revenue Service (IRS) that he advised anyone with receipts for gas used in their vehicles could claim the Fuel Tax Credit, according to the complaint.
The government alleged in its complaint that Petit-Dos’s, Fertilien’s, and Joseph’s misconduct predated the creation of Aleluya. Prior to Joseph forming Aleluya in June 2013, Petit-Dos and Fertilien owned a tax return preparation business called Imperial Taxation that was located at the same Lauderhill location as Aleluya, according to the complaint. The complaint alleged that Petit-Dos, Fertilien, and Joseph, a return preparer at Imperial Taxation, prepared false tax returns and committed other violations of the Internal Revenue Code while at Imperial Taxation. Altogether, the complaint alleged that the loss to the U. S. Treasury from the defendants’ activities may be in the millions of dollars.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
El Paso Man Sentenced to Life in Federal Prison in Connection with Murder-For-Hire PlotRead the Press Release
In El Paso this morning, 30-year-old Emmanuel Velasco Gurrola was sentenced to life in federal prison for his role in a murder-for-hire plot announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, Drug Enforcement Administration (DEA) Special Agent in Charge Will R. Glaspy, and Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist.
Senior United States District Judge David Briones imposed a life-imprisonment sentence on each count to which Velasco Gurrola pleaded guilty prior to trial: three counts of conspiracy to kill in a foreign country and one count of conspiracy to violate the Racketeering Influenced Corrupt Organization (RICO) statute. According to court records, Velasco Gurrola was the leader of a criminal organization that ran a cross-border car theft ring and imported and distributed tons of marijuana His organization also engaged in an international kidnapping scheme whereby victims were kidnapped and held in Juarez, Mexico, while he and other criminal associates located in El Paso extorted ransom payment from the victims’ families.
In addition to the prison term, Judge Briones ordered that Velasco Gurrola pay over $1 million in restitution to the families of his victims; and, a money judgment for $12,480,000. Judge Briones also ordered that Velasco Gurrola forfeit to the Government various real estate properties he owned in El Paso and Midland counties as well as a condominium located on the Las Vegas Strip.
On October 17, 2016, a federal jury convicted Emmanuel’s 41–year-old brother, Samuel Velasco Gurrola, of three counts of conspiracy to commit murder in a foreign country and four counts of conspiracy to cause foreign travel for murder for hire.
According to evidence presented during his trial, in 2008, Samuel Velasco Gurrola was married to Ruth Sagredo Escobedo. At the time, Samuel was under indictment in El Paso County for aggravated sexual assault of a child and indecency with a child. Evidence further revealed that from September 2008 until November 2008, Samuel initiated a plot, with Emmanuel’s help, to kill Sagredo while in Mexico in order to prevent her from testifying in the State case.
Testimony revealed that with Emmanuel’s help, Samuel also arranged to have Sagredo’s father and sister killed in an attempt to lure Sagredo to Mexico. On October 3, 2008, Francisco Maria Sagredo Villareal, Gurrola’s father-in-law, was murdered in his house in Ciudad Juarez, Chihuahua, Mexico. On November 20, 2008, Francisco’s daughter, Cinthia Sagredo Escobedo, was murdered in Ciudad Juarez. Two days later, while traveling to her sister Cinthia’s funeral, Ruth Sagredo Escobedo, and her friend Robert Martinez, were ambushed and murdered.
“This life sentence sends a clear message to transnational criminal organizations. HSI and its law enforcement partners are committed to ensuring the safety and security of our border community,” said Waldemar Rodriguez, special agent in charge of HSI El Paso.
“Mr. Velasco Gurrola falls into the category of the ‘worst of the worst’ criminals. His actions have devastated a family on both sides of the U.S. / Mexico border. The DEA is proud to have played a role with our law enforcement partners in bringing Velasco Gurrola to justice and ensuring that never again will he be able to commit an act of violence in the Borderland,” said Will R. Glaspy, Special Agent in Charge of the Drug Enforcement Administration’s El Paso Division.
“The sentence handed down today is the result of outstanding efforts by the FBI and our partner agencies, DEA and HSI. A murderer is behind bars. Justice has been served for the victims, their families, and the greater border community,” stated Federal Bureau of Investigation (FBI) Special Agent in Charge Douglas E. Lindquist, El Paso Division.
Following his conviction in the murder-for-hire plot, on November 18, 2016, Samuel Velasco Gurrola pleaded guilty to conspiracy to violate the RICO statute, namely acts of drug trafficking and money laundering. Emmanuel and Samuel’s sister, 44-year-old Dalia Valencia, pleaded guilty to the same charge prior to jury selection in the above-mentioned trial.
Samuel Velasco Gurrola is scheduled for sentencing tomorrow at 10:30am before Judge Briones. Dalia Valencia is scheduled for sentencing at 9:30am on April 19, 2017, before Judge Briones. Emmanuel and Samuel’s other sister, 43-year-old Monica Velasco, remains a fugitive in this case. Monica Velasco is charged with conspiracy to violate the RICO statute, two money laundering counts and conspiracy to possess with intent to distribute and import over 1,000 kilograms of marijuana. If you have information as to Monica Velasco’s whereabouts, contact the United States Marshals Service in El Paso at (915) 534-6779.
This investigation was conducted by the Homeland Security Investigations (HSI), Drug Enforcement Administration (DEA), and the Federal Bureau of Investigation with assistance from the United States Marshals Service and the El Paso Police Department. Assistant United States Attorneys Daphne Newaz and John Gibson are prosecuting this case on behalf of the Government.
Drug Trafficker Sentenced in Methamphetamine ConspiracyRead the Press Release
Contact Person: Jamie L. Schoen (864) 282-2100
Greenville, South Carolina---- United States Attorney Beth Drake stated today that Richard Ryan Jones, age 39, of Gaffney, South Carolina was sentenced today in federal court in Greenville, South Carolina, for Conspiracy to Possess with Intent to Distribute Five Hundred Grams or More of a Mixture or Substance Containing Methamphetamine, in violation of 21 U.S.C. § 841(b)(1)(A). United States District Judge J. Michelle Childs of Columbia sentenced Jones to 120 months imprisonment, followed by 5 years of supervised release. Judge Childs has already sentenced co-defendant Charlie Farris to 180 years imprisonment, co-defendant Bobby Spencer to 108 months imprisonment, and co-defendant Joy Nicole Spencer to 60 months imprisonment. Co-defendant Christopher O’Brien has pled guilty and is awaiting sentencing.
Evidence presented at the change of plea and sentencing hearings established that in 2015 and 2016, Richard Ryan Jones was the supplier of methamphetamine to Bobby Spencer, a co-defendant, and others throughout the Upstate. Christopher O’Brien and Joy Nicole Spencer were couriers of methamphetamine for Jones and Bobby Spencer, respectively. Evidence demonstrated that Jones distributed over 20 pounds of methamphetamine throughout the Upstate. Charley Farris and Bobby Spencer were also convicted of carrying firearms in relation to this drug trafficking conspiracy.
The case was investigated by agents of FBI, ATF, Cherokee County Sheriff’s Office, Gaffney Police Department, and Spartanburg City Police Department. Assistant United States Attorney Jamie Lea Schoen of the Greenville office prosecuted the case.
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District Man Sentenced to 8 1/2-Year Prison Term for Armed Burglary at Gallaudet University KitchenRead the Press Release
WASHINGTON - Donald Williams, 26, of Washington, D.C., was sentenced today to an 8½-year prison term for forcing his way at gunpoint into the kitchen of the food service department at Gallaudet University, where he used to work, and ordering employees to turn over money kept in a safe, U.S. Attorney Channing D. Phillips announced.
Two of the victims, who are deaf, helped identify him as the gunman.
Williams pled guilty in January 2017, in the Superior Court of the District of Columbia, to a charge of first-degree burglary while armed. He was sentenced by the Honorable Danya A. Dayson. Following completion of his prison term, Williams will be placed on three years of supervised release.
According to the government’s evidence, in the late afternoon of Oct. 22, 2016, Williams entered his former place of employment, the food service department on the campus of Gallaudet University, in the 800 block of Florida Avenue NE. Upon entry, he pointed a gun at two female employees and forced them into the rear of the kitchen. He forced one of the two victims into a storage room and the other, who is deaf, into a back office space that contained a safe that held daily deposits. He pointed a gun at the latter victim and motioned for her to open the safe. When she refused, he struck her upon the head with the gun, causing a laceration.
Williams left the office and approached a third female employee, who was located in a different area of the kitchen and was unaware that a robbery was taking place; this employee is also deaf. Williams pointed his gun at her, grabbed her by the shirt, forced her into the office with the other victim, and directed her to open the safe. Once she opened the safe, she and the other victim handed money to Williams, who then fled the scene.
During their interviews with members of the Metropolitan Police Department (MPD), the two victims who were directed to open the safe indicated that their assailant reminded them of their former colleague, Williams, who had been fired from Gallaudet University a few weeks before the crime. Although their assailant had a mask covering his face, the victims stated that his build, skin complexion, leanness, mannerisms, and gait were consistent with the defendant’s, whom they had worked with regularly for more than a year.
During their investigation, MPD located surveillance video footage depicting a vehicle similar to the defendant’s enter a parking garage on campus around the time of the crime. The video also depicted a male, wearing clothing identical to the look-out description, exit the vehicle and walk toward the building where the robbery occurred. MPD also recovered video from the defendant’s cell phone showing him dumping a large amount of cash into a bathroom sink bundled with red bands consistent with the description given by the victims. Williams recorded the cell phone video approximately three and a half hours after the crime. Finally, a black mask consistent with the mask described by the victims as the one worn by the assailant was found at the scene and was swabbed for DNA. Subsequent testing revealed the presence of Williams’s DNA on it. Williams was arrested on Dec. 20, 2016.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the work performed by the Forensic Biology Unit of the District of Columbia Department of Forensic Sciences as well as Sorensen Forensics. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Shana Fulton and Tamika Griffin; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Diana Lim, Katina Adams-Washington, and LaJune Thames, all of the Victim/Witness Assistance Unit; Supervisory Paralegal Supervisor Darline Douglas; Lead Paralegal Specialist Lynda Randolph, and Paralegal Specialist Benjamin Kagan-Guthrie.
Finally, he commended the work of Assistant U.S. Attorney Vanessa Goodwin, who investigated and prosecuted the case.
Decatur Insurance Agent Pleads Guilty to Fraud Scheme, Money LaunderingRead the Press Release
PEORIA, Ill. – A Decatur, Ill., man, James P. Smith, who worked as an independent insurance agent, today pled guilty to charges that he defrauded his clients of more than $250,000 from February 2011 to July 2016. Smith, 60, of the 5400 block of Traughber Road, appeared before Chief U.S. District Judge James E. Shadid in Peoria. Sentencing is scheduled on July 20, 2017.
During today’s court appearance, Judge Shadid granted the defense’s motion for Smith’s release from federal custody; however, Smith remains in law enforcement custody on charges previously filed by the Macon County State’s Attorney’s Office.
The Federal Bureau of Investigation and the Macon County Sheriff’s Office conducted the investigation. Supervisory Assistant U.S. Attorney Eugene L. Miller is prosecuting the case with the cooperation of the Macon County State’s Attorney’s Office.
Smith acted as an independent agent at the Prairie State Insurance Agency in Decatur. According to court documents and statements made in court, from at least February 2011 through July 2016, Smith solicited clients to purchase insurance, including whole life insurance, and financial products, including annuities. As part of the scheme, Smith admitted that he falsely represented the minimum rate of return the annuities could obtain for his clients. Instead of investing clients’ money in insurance, annuities, or other financial products, as promised, Smith used the money for his own benefit.
Smith requested that clients make payment to “MSM, Inc.,” which he represented was the insurance company or the investment company for the annuity the clients were purchasing. In fact, as Smith knew, MSM, Inc., was actually Main Street Marathon, a gas station in Mt. Zion, Ill., that Smith owned. Rather than use clients’ funds as represented, Smith used the money to finance the gas station and to make mortgage payments on his personal residence.
Smith also admitted he cancelled or cashed out clients’ insurance policies or annuities without their knowledge or permission, and then used the cash value and / or future premiums or payments for personal expenses. Smith admitted he used the money to pay his attorney’s fees, personal bankruptcy fees, and to make purported annuity payments to other clients to prevent them from discovering that he had not purchased their annuities as promised.
The maximum statutory penalty for each offense is prescribed by Congress and is provided for informational purposes, as sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors. For each of the offenses, mail fraud (two counts) wire fraud (one count), and money laundering (one count) the maximum penalty is 20 years in prison.
Dallas Man Convicted for His Role in Methamphetamine Distribution ConspiracyRead the Press Release
DALLAS — Following a four-day jury trial before U.S. District Judge David C. Godbey, a federal jury has convicted Gilberto Gomez, 37, on felony drug offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Gomez was convicted yesterday on one count of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine, one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute cocaine, one count of possession with intent to distribute marijuana, and two counts of possession of a firearm in furtherance of a drug trafficking crime. The drug trafficking conspiracy count carries a maximum statutory penalty of life in federal prison and a $1 million fine. Sentencing is scheduled in June.
Co-conspirator Felix Cantu, 30, pled guilty in March 2017 to conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. No date has been set for his sentencing.
The government presented evidence at trial that beginning in November 17, 2015 until March 1, 2016 Gomez and Cantu operated a drug distribution enterprise from Gomez’s residence on Palacios Avenue in West Dallas. After a four-month long investigation, DEA and the Dallas Police Department executed a search warrant on the residence and recovered more than $37,000 in cash and over $40,000 worth of narcotics. To protect his drugs, Gomez installed three-inch steel coverings for the windows and a coded-entry metal gate in the hallway leading to the master bedroom. Gomez travelled to California every two weeks to purchase marijuana. He concealed the newly purchased marijuana in hidden compartments of vehicles and shipped them back to Texas on open-air tractor-trailers. In an effort to keep drugs off the streets in that neighborhood, the U.S. Attorney’s Office is seeking an order to forfeit the house since it was used for the criminal activity.
The Drug Enforcement Administration and the Dallas Police Department investigated. Assistant U.S. Attorneys Rachael Jones and P.J. Meitl prosecuted.
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Cuban National Sentenced for Access Device FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that YOETNIS VAZQUEZ PEDROSA, age 32, a Cuban national residing in Florida, was sentenced today after previously pleading guilty to one count of conspiracy to commit access device fraud and two counts of access device fraud.
U.S. District Judge Nannette Jolivette Brown sentenced VAZQUEZ PEDROSA to 24 months in prison. Additionally, VAZQUEZ PEDROSA was ordered to pay restitution of $7,873.97 jointly and severally with his codefendants and a $100 special assessment.
VAZQUEZ PEDROSA pled guilty to conspiring with five co-defendants to possess fifteen or more unauthorized and counterfeit access devices, as well as producing, possessing, and trafficking device-making equipment. He also pleaded guilty to the substantive offenses of access device fraud and possessing device-making equipment. According to court records, the six defendants traveled from Florida in late July 2015, and agreed to place card skimming devices on gas pumps in the New Orleans area. All defendants have admitted to, among other things, possessing a card encoding machine, a card embossing machine, and a laptop computer containing stolen credit card information. In February 2016, while on bond in this case, VAZQUEZ PEDROSA was arrested and charged with being a felon in possession of a firearm in the Middle District of Florida. That case remains pending, and VAZQUEZ PEDROSA is presumed innocent until proven guilty in that matter.
VAZQUEZ PEDROSA is the fourth defendant to be sentenced in this case. JESUS ENRIQUE GONZALES TORRES was previously sentenced to 30 months imprisonment; JULIET ESTRADA PEREZ was sentenced to serve 36 months; and LUIS RIVERA GARCIA was sentenced to a term of 57 months. As part of sentencing, U.S. District Judge Nannette Jolivette Brown ordered VAZQUEZ PEDROSA to pay restitution of $7,873.97 jointly and severally with his codefendants and a $100 special assessment.
Acting U.S. Attorney Evans praised the work of the Jefferson Parish Sheriff’s Office, the United States Secret Service, and Homeland Security Investigations in investigating this matter. Assistant U.S. Attorney Hayden Brockett was in charge of the prosecution.
Civilian Employee at Aberdeen Proving Ground Pleads Guilty to Accepting Bribes in Exchange for Favorable Actions on ContractsRead the Press Release
Baltimore, Maryland – Rainier Ramos, age 50, of Bel Air, Maryland, pleaded guilty today to bribery in connection with his duties at the U.S. Army Public Health Command at Aberdeen Proving Ground.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge L. Scott Moreland, Mid-Atlantic Fraud Field Office, Major Procurement Fraud Unit, U.S. Army Criminal Investigation Command; and Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.
According to Ramos’ plea agreement, he was a civilian information technology professional at the U.S. Army Public Health Command at Aberdeen Proving Ground (APG). Beginning in 2009, Ramos solicited and accepted bribes from the owner and CEO of an information technology company headquartered in McLean, Virginia (the Company). Specifically, Ramos admitted that he sought and accepted, among other things, meals and drinks, rounds of golf, tickets to sporting events, and gift cards. The sporting events included courtside seats to Washington Wizards basketball games, football tickets and access to the company’s luxury suite for Washington Redskins games at FedEx field, tickets to the see the New Orleans Saints play at the Mercedes Benz Dome in New Orleans, and tickets to see the New Orleans Hornets basketball team in New Orleans. In exchange, Ramos admitted that he took official actions favorable to the Company and the owner in relation to the MEDCOM contract, which was worth more than $50 million.
For example, in exchange for bribes from the Company’s owner, Ramos sought contracting opportunities at APG in the spring and summer of 2010, that would allow the Company to develop a track record of performance, in order to increase the likelihood that the Company would be awarded the MEDCOM contract when it was recompeted in 2011. Ramos admitted that he took the following actions in exchange for bribes: influenced the award of a contract to the Company to deploy and configure 70 desktop and laptop computers at APG; recommended that the MEDCOM contract be reserved for companies that were part of the U.S. Small Business Administration 8(a) program, - a significant benefit to the Company as a certified 8(a) business; provided the owner of the Company with the winning proposal of the previous contractor on the MEDCOM contract, including pricing data, which was sensitive, proprietary information; and helped write the Statement of Work for the MEDCOM contract to increase the likelihood that the Company would be awarded that contract. On May 20, 2010, in an email to the owner of the Company, Ramos stated, “If there’s any way you can pull off a miracle and switch the 10 Eagles/Skins tickets you have already acquired for 10 Skins/Cowboys tickets, I’ll owe you some serious 8A business. . . . Thanks again for EVERYTHING.”
In August 2011, the solicitation for the MEDCOM contract was issued, and Ramos was selected as the Chairman of the Source Selection Board. In early 2012, Ramos recommended that the contract be awarded to the Company. After the Company was awarded the contract, Ramos approved invoices submitted by the Company under the contract. As of July 2016, the Company was paid almost $37 million by the U.S. government for invoices submitted under the MEDCOM contract.
Ramos faces a maximum sentence of 15 years in prison for bribery. As part of his plea agreement Ramos is required to pay a money judgment of at least $33,000, and pay restitution in the full amount of the victim’s losses. U.S. District Judge Richard D. Bennett has scheduled Ramos’ sentencing for July 12, 2017 at 2:00 p.m.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys= Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrate the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein thanked the FBI, Army CID, and DCIS for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorney Leo J. Wise, who is prosecuting the case.
Chico Man Sentenced to 50 Years in Prison for Receipt, Distribution and Conspiracy to Produce Child PornographyRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge Morrison C. England Jr. sentenced Jesse Davenport, aka Draco John Flama, 41, of Chico, today to 50 years in prison for conspiracy to sexually exploit a child, two counts of receipt of child pornography, and one count of distribution of child pornography, U.S. Attorney Phillip A. Talbert announced. Davenport was found guilty by a jury on October 3, 2016.
According to court documents and evidence presented at trial, in August 2013, Davenport conspired with a woman in Connecticut to produce a video of child pornography after meeting her in an online chat room that focused on bondage, domination, sadism, and masochism. At the time, Davenport was on parole and on an electronic ankle monitor for a prior offense. On September 5, 2013, during a parole search, Davenport’s parole officer found an internet-capable cellphone in Davenport’s possession. The officer seized a micro-SD card from the phone to search it for contraband. Several days later, Davenport cut off his electronic monitor and fled from parole. Davenport was arrested in Redding, California on September 12, 2013.
According to evidence presented at trial, a subsequent search of the seized micro-SD card revealed a video of a woman engaged in sexually explicit conduct with a child approximately two to three years old. Further investigation led to the woman in Connecticut who was later arrested. She testified at trial that when Davenport learned she babysat for a two-and-half-year-old girl, he requested that she record a sexually explicit video of the minor and send it to him. The Connecticut woman made the video following Davenport’s instructions and sent it to him two times. Davenport then distributed the video to another person. Court documents indicate that Davenport has prior convictions for sex offenses against minors.
U.S. Attorney Talbert said, “Children are the most vulnerable members of our society, and we must do everything we can to protect them from horrific crimes like those committed by this defendant. The sentence handed down today rightly punishes the defendant for his conduct and seeks to ensure that he will not be able to commit crimes against children in the future. My office is committed to protecting the public by continuing to prosecute crimes against children.”
This case was the product of an investigation by the Federal Bureau of Investigation, the Butte County District Attorney's Office, the Redding Police Department, and the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney André M. Espinosa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
California Residents Plead Guilty to Obtaining Cell Phones Through Identity TheftRead the Press Release
BOISE – California residents Jeromy Reeves, 27, Karina Flores, 22, Brittany Terry, 20, and Joseph Jancu, 21, pleaded guilty this week to their roles in a fraud scheme to obtain iPhones through identity theft, Acting United States Attorney Rafael Gonzalez announced. They were indicted by a federal grand jury in Boise in September 2016.
According to plea agreements, Reeves organized the group in California and used Flores’ and Terry’s photographs to make fake California driver’s licenses that contained the identifying information of other persons. Once the group arrived in the Boise area, Reeves directed Flores and Terry to use the fake driver’s licenses to open up cellular services contracts in the names of the unsuspecting victims and to obtain iPhones. Flores and Terry intentionally misrepresented themselves as the victims to obtain the iPhones, with the costs then billed to the victims. Their plan was to take the iPhones back to California where they would be re-sold. In total, the group obtained 32 iPhones and other devices before being caught by the Boise Police Department.
According to Jancu’s plea agreement, he knew of the scheme and drove his co-conspirators from store to store where they executed the scheme.
Terry and Jancu are set to be sentenced on June 14, 2017, before Senior U.S. District Judge Edward J. Lodge. Reeves and Flores are set to be sentenced on June 15, 2017, also before Judge Lodge.
The case was investigated by the Boise Police Department.
California Man Pleads Guilty to Operating Bi-Coastal Marijuana Distribution RingRead the Press Release
BOSTON – A California man pleaded guilty today in U.S. District Court in Boston in connection with a large-scale marijuana distribution and money laundering ring operating between California and the East Coast.
Virayuth Chau, a/k/a David Chau, 40, of Temecula, Calif., pleaded guilty to one count of conspiracy to distribute marijuana and one count of conspiracy to launder monetary instruments. In September 2016, Chau was arrested and indicted along with co-conspirator Ratanack Oung, a/k/a Yoshi, 31, of Allentown, Penn. U.S. District Court Judge Nathaniel M. Gorton scheduled Chau’s sentencing for June 22, 2017, at 3:00 p.m.
Beginning around January 2014, Chau and Oung shipped large quantities of marijuana from California to the East Coast of the United States. When payment for the marijuana was due, co-conspirators deposited cash (typically in an amount under $10,000) into one of many “feeder” accounts in banks on the East Coast. The “feeder” accounts were maintained in the names of businesses or persons associated with Chau in order to disguise the nature and ownership of the drug proceeds flowing into the account. Once the money was deposited, it was either withdrawn in cash in California or transferred into a “target” account, which was an account controlled by Chau and then withdrawn. In total, the operation distributed between 1,000 and 3,000 kilograms of marijuana and laundered approximately $6,135,035 in drug proceeds.
Oung is scheduled to plead guilty on April 14, 2017.
The charge of conspiracy to distribute marijuana provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of $1 million. The charge of money laundering provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The DEA, Los Angeles Division, Riverside County (California) Sheriff’s Department and Murrieta (California) Police Department also assisted with the investigation. Assistant U.S. Attorney Eric Rosen of Weinreb’s Narcotics & Money Laundering Unit is prosecuting the case.
California Man Indicted for Sex Trafficking Woman for 9 YearsRead the Press Release
NORFOLK, Va. – A federal grand jury returned an indictment today charging a Portsmouth man with sex trafficking by force, fraud, and coercion.
According to the indictment, Naeem Lateef Odums, 39, of Clovis, California, and Portsmouth, Virginia, forced “Jane Doe” to engage in commercial sex acts in California and Virginia for nearly nine years. Odums used a combination of extreme physical violence, threats of violence, and threats of kidnapping Jane Doe’s children, and other forms of control to cause her to perform commercial sex acts. Odums arranged appointments for Jane Doe using a website known to promote prostitution, and collected all the money Jane Doe earned both from her appointments, as well as from her legitimate jobs. In January 2017, Jane Doe was hospitalized after Odums broke three of her ribs and punctured her lung. Odums was originally charged by criminal complaint on March 7.
Odums faces a mandatory minimum penalty of 15 years in prison and a maximum penalty of life in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Tonya D. Chapman, Chief of Portsmouth Police Department, made the announcement after the indictment was returned. Assistant U.S. Attorney V. Kathleen Dougherty is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Buffalo Man Pleads Guilty to Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Julio Cesar Sanchez, 47, of Buffalo, NY, pleaded guilty before U.S. District Court Judge Richard J. Arcara to conspiracy to possess with intent to distribute, and to distribute, cocaine. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that in March of 2015, the Drug Enforcement Agency (DEA) executed a search warrant at an apartment where illegal narcotics were sold. At that time, agents recovered an internal video surveillance system that recorded Sanchez holding and describing a bag of cocaine he intended to sell to customers.
On October 5, 2015, the U.S. Postal Inspection Service (USPIS) intercepted a package shipped from Puerto Rico to an address in Buffalo. Agents executed a search warrant on the package which contained cocaine stuffed inside a set of speakers. After removing the cocaine, the DEA conducted a controlled delivery of the package. During the controlled delivery, the defendant arrived at the address and signed for the package. Upon signing for the package, DEA agents arrested Sanchez.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division, and the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski.
Sentencing is scheduled for June 29, 2017, before Judge Arcara.
Brandon Resident Sentenced to Prison for Possession of Child PornographyRead the Press Release
Jackson, Miss. – James Glenn Dukes, 64, of Rankin County, Mississippi, was sentenced on March 21, 2017, by U.S. District Judge Daniel P. Jordan III, to serve 150 months in federal prison followed by a lifetime of supervised release for possession of child pornography, announced Acting U.S. Attorney Harold Brittain, FBI Jackson Division Special Agent in Charge Christopher Freeze and Mississippi Attorney General Jim Hood.
In February, 2015, a federal search warrant was executed at Dukes’ residence in Brandon and electronic devices including computers and hard drives were seized. A forensic examination revealed numerous images and videos of minors engaging in sexually explicit conduct. He pled guilty on Sept. 29, 2016 to possession of child pornography.
Acting U.S. Attorney Brittain praised the efforts of the Mississippi Attorney General’s Office and the FBI Jackson Division’s Child Exploitation Task Force who investigated the case. "As this case demonstrates, the coordination of state and federal law enforcement agencies is an essential component in our efforts to combat child exploitation and abuse," said Brittain.
"Children must be protected from any type of exploitation, especially sexual exploitation," said Special Agent in Charge Freeze. "This sentencing indicates the partnership between law enforcement to find and prosecute these types of offenders to the fullest extent of the law. The outcome of this case would have not been possible without the Mississippi Attorney General’s Office."
"Our law enforcement agencies are partnered with state and federal prosecutors in the court systems to ensure that those who take advantage of our children receive the longest sentences," Mississippi Attorney General Jim Hood said. "The 150-month sentence handed down in this case should send a deterrent message to any perverts thinking about abusing our children."
This investigation was initiated by the Mississippi Attorney General’s Office, and was assisted by the FBI Jackson Division’s Child Exploitation Task Force, which is made up of agents from the FBI and the Mississippi Attorney General’s Office and prosecutors from the United States Attorney’s Offices in Oxford and Jackson. The case was prosecuted by Assistant United States Attorney Glenda Haynes.
Boston Man Sentenced for Murder-For-Hire PlotRead the Press Release
BOSTON – A Boylston Street gang member was sentenced today in U.S. District Court in Boston in connection with attempting to hire a hit man to murder another gang member.
Jaime Rivera, 21, was sentenced today by U.S. District Court Judge Rya W. Zobel to nine years in prison and three years of supervised release. In November 2016, Rivera pleaded guilty to one count of using the mail or the telephone with the intent that a murder-for-hire be committed, and one count of distribution of cocaine. His co-defendant, Frandys Ortiz, 24, was previously sentenced to eight years in federal prison and three years of supervised release.
Beginning in October 2014, Rivera and Ortiz sold firearms, ammunition, heroin and cocaine to a witness cooperating with federal law enforcement agents. On July 4, 2015, the two men were involved in a shooting with another gang member. Shortly after the shooting, Ortiz told the cooperating witness that he wanted the other gang member to be murdered in retaliation for the July 4th shooting, stating that he would pay the cooperating witness, “if the [gang member] dies.” During a separate recorded meeting, Rivera told the cooperating witness “there’s bread for you … if he dies.” Ultimately, Rivera agreed to pay the cooperating witness $2,500 in exchange for murdering the gang member, cautioning the cooperating witness, “I don’t need any leg shots bro … if you gonna do leg shots, don’t even do it.”
Acting United States Attorney William D. Weinreb and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division, made the announcement today. Assistant U.S. Attorney Rachel Y. Hemani of Weinreb’s Criminal Division prosecuted the case.
Bloods Gang Member Sentenced in Manhattan Federal Court to 22 Years in Prison for 2006 MurderRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that LARRY GREEN, a/k/a “Mafia,” a/k/a “Maf,” was sentenced in Manhattan federal court to 22 years in prison, in connection with the 2006 drug-related murder of Shawn Williams, a/k/a “Showtime” (“Williams”) in Paterson, New Jersey. Sentenced was imposed by U.S. District Judge Laura Taylor Swain.
Acting U.S. Attorney Joon H. Kim said: “This case is yet another example of the senseless violence that often accompanies drug dealing on our city streets. Today, Larry Green was sentenced to 22 years in prison for murdering a rival drug dealer over a turf dispute in Paterson, New Jersey. This case exemplifies the determination of this Office and our law enforcement partners to ensure that even after 11 years, the perpetrator would be held responsible for this ruthless murder.”
GREEN previously pled guilty to participating in a conspiracy to distribute and possess with the intent to distribute more than one kilogram of heroin.
According to the indictment previously filed in Manhattan federal court and public information:
GREEN, an enforcer of the Fruit Town Brims set of the Bloods street gang, was arrested on February 22, 2014, in Paterson, New Jersey. On March 17, 2016, GREEN pled guilty to participating in a conspiracy to distribute and possess with the intent to distribute more than one kilogram of heroin, from 2006 through 2014. GREEN admitted that, as part of the charged narcotics distribution offense, he and his co-conspirators were engaged in an ongoing dispute concerning, alia, drug distribution territory in Paterson. In connection with that ongoing dispute, on or about July 2, 2006, GREEN encountered Williams, who was inside a vehicle that was driving in the vicinity of 145 North Main Street, in Paterson. GREEN pulled out a firearm, and fired one shot at the vehicle, striking and killing Williams.
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Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation (“FBI”) Newark Division, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Clifton Police Department, and the New Jersey State Police.
The Office’s Violent and Organized Crime Unit is overseeing the case. Assistant U.S. Attorney Justina L. Geraci is in charge of the prosecution.
Bakersfield Man Charged with Multiple Counts of U.S. Postal Theft and Possession of 15 or More Credit CardsRead the Press Release
FRESNO, Calif. — A federal grand jury returned an eight-count indictment today against Jason Leroy Geiser, 36, of Bakersfield, charging him with conspiracy to possess stolen U.S. mail and to unlawfully possess 15 or more unauthorized access devices (credit or debit cards), and other related charges, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between October 1, 2016, and March 2, 2017, Geiser conspired with others to steal mail and to use information and access devices obtained from the stolen mail for their own monetary benefit.
This case is the product of an investigation by the United States Postal Inspection Service and the Bakersfield Police Department. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
If convicted, Geiser faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Altoona Man Admits Possessing Child PornographyRead the Press Release
JOHNSTOWN, Pa. – A Blair County resident pleaded guilty in federal court to a charge of possession of child pornography, Acting United States Attorney Soo C. Song announced today.
Timothy Hufford, 56, of Altoona, Pa., pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on August 18, 2015, Hufford knowingly possessed pictures and videos in individual computer graphic files which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
Judge Gibson scheduled sentencing for July 6, 2017, at 10 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
“HSI special agents will relentlessly pursue predators who deal in the exploitation of images our children,” said Marlon V. Miller, special agent in charge of HSI Philadelphia. “Thanks to the ceaseless efforts of our highly skilled HSI special agents another sexual predator will face justice.”
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, Pennsylvania State Police and Altoona Police Department conducted the investigation that led to the prosecution of Hufford.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Altoona Man Admits Possessing Child PornographyRead the Press Release
JOHNSTOWN, Pa. – A Blair County resident pleaded guilty in federal court to a charge of possession of child pornography, Acting United States Attorney Soo C. Song announced today.
Timothy Hufford, 56, of Altoona, Pa., pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on August 18, 2015, Hufford knowingly possessed pictures and videos in individual computer graphic files which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
Judge Gibson scheduled sentencing for July 6, 2017, at 10 a.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, Pennsylvania State Police and Altoona Police Department conducted the investigation that led to the prosecution of Hufford.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Acting Manhattan U.S. Attorney Announces Settlement with American University of Beirut, Resolving Claims It Provided Material Support to Three Entities Designated Prohibited Parties Under U.S. LawRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Jonathan Schofield, Special Agent in Charge of the Office of Inspector General for the U.S. Agency for International Development (“USAID-OIG”), announced today the settlement of a civil fraud lawsuit against AMERICAN UNIVERSITY OF BEIRUT (“AUB”), a teaching-centered research university located in Beirut, Lebanon, that receives funding from USAID. The settlement resolves claims that during the period December 2007 through March 2016 (the “Covered Period”), AUB violated the federal False Claims Act (the “FCA”) by providing material support to three entities that had been included on the U.S. Office of Foreign Assets Control’s (“OFAC”) Specially Designated Nationals and Blocked Persons List (the “SDN List”). The SDN List is a list of individuals and entities, such as terrorists and narcotics traffickers, that have been identified as engaging in conduct antithetical to U.S. interests. The three SDN List entities at issue here are al Nour Radio, al Manar TV, and Jihad al-Binaa. Al Nour Radio and al Manar TV have been on the SDN List since March 2006, while Jihad al-Binaa has been on the SDN List since February 2007, and thus all three are prohibited parties under U.S. law. The Government’s Complaint alleges that AUB provided material support to those three SDN List entities by (1) providing specialized training on a variety of media topics to representatives of al Nour Radio and al Manar TV, and (2) including Jihad al-Binaa in a database that AUB maintained on its public website (the “NGO database”) for the stated purpose of connecting Non-Governmental Organizations (“NGOs”) with students and others interested in assisting them.
Today, U.S. District Court Judge J. Paul Oetken approved a settlement agreement to resolve the Government’s claims against AUB. Under the settlement, AUB is required to pay $700,000 to the United States and has revised its internal policies to ensure that, going forward, it complies with applicable U.S. laws. In addition, in connection with the settlement, AUB has admitted to and accepted responsibility for (1) holding journalism training workshops that were attended by representatives of entities that were prohibited parties under U.S. law, and (2) including in the NGO database an entity that was a prohibited party under U.S. law.
Acting Manhattan U.S. Attorney Joon H. Kim said: “For years, the American University of Beirut accepted grant money from USAID, but failed to take reasonable steps to ensure against providing material support to entities on the Treasury Department’s prohibited list. Without such proper safeguards, the University ended up providing training to entities that were prohibited parties under U.S. law. With today’s settlement, the University is being made to pay a financial penalty for its conduct, and importantly, it has admitted to its conduct and agreed to put proper precautions in place to ensure that it does not happen again.”
USAID-OIG Special Agent in Charge Jonathan Schofield said: “USAID OIG thanks the Southern District of New York for partnering so effectively to ensure the programs of USAID are executed safely and effectively. Implementers executing USAID’s critical programs around the world, regardless of the context, must remember that all contract regulations and applicable laws still apply to them. Too often, implementers and funding recipients report to USAID that they have taken necessary precautions or requisite steps – such as checking the SDN List – when in fact those actions were not undertaken or done properly. Today, we see once again that there are consequences for those who fail to live up to their obligations while executing their award or mandate under a USAID program.”
As alleged in the Government’s Complaint and set forth in the parties’ settlement agreement, both of which have been filed in Manhattan federal court:
Since at least 2007, AUB has received monetary grants from USAID to fund various university projects and programs. As a condition of receiving those grants, AUB submitted certifications to USAID each year in which it represented, inter alia, that it “has not provided, and will take all reasonable steps to ensure that it does not and will not knowingly provide, material support or resources to any individual or entity that commits, attempts to commit, advocates, facilitates, or participates in terrorist acts, or has committed, attempted to commit, facilitated, or participated in terrorist acts.” In these annual certifications, AUB further represented that “[b]efore providing any material support or resources to an individual or entity, [it] will verify that the individual or entity does not appear . . . on the [SDN List].” The annual certifications defined “material support and resources” to include, among other things, “training, expert advice or assistance, . . . [and] personnel.”
Notwithstanding the above-referenced certifications, during the Covered Period, AUB provided specialized training to al Nour Radio and al Manar TV. Specifically, AUB held three multi-day training workshops (in 2007, 2008 and 2009) during which it provided specialized training on a variety of media topics to a group of journalists that included representatives of al Nour Radio and al Manar TV. For example, one of the training workshops, titled “Citizen/Online Journalism,” was conducted over five days in December 2007, and consisted of two Internet and news media experts providing training to the attendees – one of whom was from al Nour Radio – on various topics, including the creation of online blogs; photo, audio and video editing and production; linking to other websites; podcasting; packaging stories for multimedia and different platforms; and presentation of final products. The three training workshops provided the two SDN List entities with knowledge and insight they could use to more effectively communicate their desired message and reach their target audience. At the time the three training workshops were conducted, AUB was on notice that they were being attended by representatives of al Nour Radio and al Manar TV.
In addition, during the Covered Period, AUB allowed Jihad al-Binaa to be included in the NGO database. This was also contrary to the above certifications, as it provided a mechanism for this SDN List entity to recruit persons interested in assisting it.
Because AUB provided specialized journalism training to representatives of two SDN List entities and included a third SDN List entity in the NGO database, its certifications to USAID during the Covered Period that it had not provided and would take all reasonable steps to ensure that it did not knowingly provide material support or resources to SDN List entities were false. As a result of those false certifications, AUB induced USAID to provide it with monetary grants that but for the false certifications, USAID would not have provided.
As part of the settlement, AUB admitted, acknowledged, and accepted responsibility for the following conduct:
- During the period 2007 through 2009, as part of its Journalism Training Program, AUB held on-campus workshops taught by experienced journalists, highly-regarded academics, and representatives from government organizations. The workshops were full-day events which typically took place over the course of several days.
- Three of the Journalism Training Program workshops that AUB held during the period 2007 through 2009 were conducted in a manner that was inconsistent with AUB’s certifications to USAID, in that they were attended by representatives of entities that were prohibited parties under U.S. law.
- During the Covered Period, AUB maintained a public website that included a database of NGOs. The purpose of this database was to connect students interested in engaging in social work with relevant NGOs.
- During the Covered Period, AUB included information in the NGO database that was inconsistent with its certifications to USAID. Specifically, AUB included in the NGO database an entity that was a prohibited party under U.S. law, along with contact information for that entity.
In connection with the settlement, AUB has also agreed to revise its internal policies to ensure that it complies with applicable U.S. laws and the terms of the grants it receives. Such revisions include revisions to its USAID Grant Compliance Policy and its Policy on Compliance with U.S. Economic Sanctions Programs to provide for additional training of AUB administrative and academic staff on compliance with applicable U.S. laws and grant terms; regular audits by an external auditor of AUB’s compliance with applicable U.S. laws and grant terms; and periodic reviews for purposes of making appropriate updates to relevant AUB internal policies and procedures. Moreover, upon request by USAID or any other U.S. agency that provides AUB with grants or any other type of funding, AUB shall provide such agency with, inter alia, a list of the administrative and academic staff who received the above-referenced training, together with a description of the training they received, as well as a written report, prepared by the external auditor, of the results of each of the above-referenced audits, and a description of any actions taken by AUB in response to such audits.
In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that previously had been filed under seal pursuant to the False Claims Act.
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Mr. Kim thanked USAID-OIG for its investigative efforts and assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Christopher B. Harwood is in charge of the case.
Wednesday 22 March 2017
“Protecting Our Tribal Communities: Responding to Gun Violence and Its Victims” Conference to be held in Pine Ridge on April 6Read the Press Release
United States Attorney Randolph J. Seiler announced that a half-day conference addressing gun violence in Indian country will be held in Pine Ridge, South Dakota, on Thursday April 6, 2017. The event will be held in conjunction with National Crime Victim’s Rights Week and is hosted by the U.S. Attorney’s Office, the Oglala Sioux Tribe, and the Bureau of Alcohol, Tobacco, Firearms & Explosives.
On the agenda is Nikki Munholand, a Tribal Administrator who survived a mass shooting which took place during a tribal council meeting in which four tribal members, including the Tribal Chairman, were killed. Sheriff Michael Poindexter was one of the responding officers who worked closely with the victims. They will share their story of survival and the effect of the shooting on the community.
Representatives from several local victim service providers will have a display/information booth. Following the conference, a ceremony will be held honoring four individuals who have provided outstanding services to victims of crime in Indian country.
The events will be held at the SuAnn Big Crow Center in Pine Ridge, located at 1 Positive Place. The conference will run from 10:00 am – 1:00 pm, followed by the National Crime Victims’ Rights Week presentations. The public is welcome and a free lunch will be served.
Save The Date FlyerZTE Corporation Pleads Guilty for Violating U.S. Sanctions by Sending U.S.-Origin Items to IranRead the Press Release
ZTE Corporation pleaded guilty today to conspiring to violate the International Emergency Economic Powers Act (IEEPA) by illegally shipping U.S.-origin items to Iran, obstructing justice and making a material false statement.
Attorney General Jeff Sessions of the U.S. Department of Justice, Acting Assistant Attorney General Mary B. McCord for National Security, U.S. Attorney John R. Parker for the Northern District of Texas and Assistant Director Bill Priestap for the FBI’s Counterintelligence Division made the announcement today. The plea was entered before U.S. District Judge Ed Kinkeade.
Specifically, ZTE pleaded guilty to one count of conspiring to unlawfully export in violation of the IEEPA, one count of obstruction of justice and one count of making a material false statement. ZTE agreed to pay a fine in the amount of $286,992,532 and a criminal forfeiture in the amount of $143,496,266, and submit to a three-year period of corporate probation, during which time an independent corporate compliance monitor will review and report on ZTE’s export compliance program.
As previously announced on March 7, at the time that ZTE agreed to plead guilty, the Corporation simultaneously reached settlement agreements with the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) and the U.S. Department of the Treasury’s Office of Foreign Assets Control. In total ZTE has agreed to pay the U.S. Government $892,360,064. The BIS has suspended an additional $300,000,000, which ZTE will pay if it violates its settlement agreement with the BIS.
The plea agreement ended a five-year joint investigation into ZTE’s export practices, which was handled by the DOJ’s National Security Division, the U.S. Attorney’s Office for the Northern District of Texas, the FBI, the BIS, the Department of Homeland Security and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
According to plea documents filed in the case, between January 2010 and January 2016, ZTE, either directly or indirectly through a third company, shipped approximately $32,000,000 of U.S.-origin items to Iran without obtaining the proper export licenses from the U.S. government. In early 2010, ZTE began bidding on two different Iranian projects. The projects involved installing cellular and landline network infrastructure. Each contract was worth hundreds of millions of U.S. Dollars and required U.S. components for the final products.
In December 2010, ZTE finalized the contracts with Iranian customers. The contracts were signed by four parties: the Iranian customer, ZTE, Beijing 8 Star and ZTE Parsian (ZTE’s subsidiary in Iran). Court documents explain that ZTE identified Beijing 8 Star (8S) as a possible vehicle for hiding its illegal shipments of U.S. items to Iran. It intended to use 8S to export U.S.-origin items from China to ZTE customers in Iran. As part of this plan, ZTE supplied 8S with necessary capital and took over control of the company.
Under the terms of the Iran contracts, ZTE agreed to supply the “self-developed equipment,” collect payments for the projects and manage the whole network. ZTE Parsian was to provide locally purchased materials and all services. 8S was responsible for “relevant third-party equipment,” which primarily meant parts that would be subject to U.S. export laws. ZTE intended for 8S to be an “isolation company,” that is, ZTE intended for 8S (rather than ZTE) to purchase the embargoed equipment from suppliers and provide that equipment under the contract in an effort to distance ZTE from U.S. export-controlled products, and insulate ZTE from U.S. export violations. However, 8S had no purchasing or shipping history and no real business reputation.
Ultimately, although 8S was a party to the contracts, ZTE itself purchased and shipped the embargoed goods under the contract. In its shipping containers, it packaged the U.S. items with its own self-manufactured items to hide the U.S.-origin goods. ZTE did not include the U.S. items on the customs declaration forms, though it did include the U.S.-origin items on the packing lists included inside of the shipments.
In early 2011, when ZTE determined that the use of 8S was insufficient to hide ZTE’s connection to the illegal export of U.S.-origin goods to Iran, senior management of ZTE ordered that a company-level export control project team study, handle and respond to the company’s export control risks. In September 2011, four senior managers signed an Executive Memo, which proposed that the company identify and establish new “isolation companies” that would be responsible for supplying U.S. component parts necessary for projects in embargoed countries. The isolation companies would conceal ZTE’s role in the transshipment scheme and would insulate ZTE from export control risks.
In March 2012, Reuters published an article regarding ZTE’s sale of equipment to Iran. In response, ZTE made a decision to temporarily cease sending new U.S. equipment to Iran. By November 2013, however, ZTE had resumed its business with Iran. Beginning in July 2014, ZTE began shipping U.S.-origin equipment to Iran once again without the necessary licenses.
Instead of using 8S, however, ZTE identified a new isolation company. ZTE signed a contract with the new isolation company, which in turn signed contracts with the two Iranian customers. According to the new scheme, ZTE purchased and manufactured all relevant equipment – both U.S.-origin and ZTE-manufactured – and prepared them for pick-up at its warehouse by the new isolation company. The new isolation company then shipped all items to the Iranian customers. Shipments to Iran continued from January 2014 through January 2016.
Despite its knowledge of an ongoing grand jury investigation into its Iran exports, according to plea documents, ZTE took several steps to conceal relevant information from the U.S. government. It further took affirmative steps to mislead the U.S. government. In the summer of 2012, ZTE asked each of the employees who were involved in the Iran sales to sign nondisclosure agreements in which the employees agreed to keep confidential all information related to the company’s U.S. exports to Iran.
During meetings throughout late 2014, late 2015 and early 2016, outside counsel for ZTE, unaware that the statements ZTE had given to counsel for communication to the U.S. Government were false, represented to the DOJ and federal law enforcement agents that ZTE had stopped doing business with Iran and therefore was no longer violating U.S. export laws. Similarly, on July 8, 2015, in-house counsel for ZTE accompanied outside counsel in a meeting with the DOJ and federal law enforcement agents and reported that ZTE was abiding by U.S. laws. That statement was also false.
ZTE also hid data related to its resumed illegal sales to Iran from a forensic accounting firm hired by defense counsel to conduct an internal investigation into the company’s Iran sales. ZTE knew the forensic accounting firm was reviewing its systems and knew that the analysis was being reported to the DOJ and U.S. law enforcement. To avoid detection of its 2013-2016 resumed illegal sales to Iran, ZTE formed the “contract data induction team” (“CDIT”). The CDIT was comprised of approximately 13 people whose job it was to “sanitize the databases” of all information related to the 2013-2016 Iran business. The team identified and removed from the databases all data related to those sales. ZTE also established an auto-delete function for the email accounts of those 13 individuals on the CDIT, so their emails were deleted every night – a departure from its normal practices – to ensure there were no communications related to the hiding of the data.
The case is being prosecuted by Deputy Chief Elizabeth Cannon of the National Security Division’s Counterintelligence and Export Control Section and Assistant U.S. Attorney Mark Penley of the Northern District of Texas.
Woman from Peru Charged with Identity TheftRead the Press Release
WICHITA, KAN. – A woman from Peru who came to the United States in 2005 on a visitor’s visa and stayed has been charged in federal court here with identity theft and document fraud, U.S. Attorney Tom Beall said today.
The woman, Jennifer Leyva, 35, who has lived in Wichita since at least 2013, is alleged to have used at least three different identities to get jobs at several Wichita-area businesses. She was arrested Tuesday by agents of the Kansas Department of Labor and Homeland Security Investigations, who investigated the case, and she was scheduled to make an initial court appearance Wednesday before U.S. Magistrate Judge Gwynne E. Birzer.
A federal grand jury indicted Leyva March 16 on 10 counts, including two counts of aggravated identity theft, two counts of identity document fraud, two counts of lying of an I-9 Employment Eligibility Verification form, and four counts of misuse of a Social Security number. The charges relate to the defendant’s employment at health care-related businesses in Wichita.
If convicted, the defendant faces up to five years in prison and a $250,000 fine on each count. Assistant U.S. Attorney Brent Anderson is prosecuting. As in any criminal case, defendants are presumed innocent until and unless proven guilty.
Woman Pleads Guilty to Conspiracy to Commit Bank FraudRead the Press Release
Contact Person: Jamie L. Schoen
Greenville, South Carolina---- United States Attorney Beth Drake stated that Katie Marie Reavely, age 26, of Minneapolis, Minnesota, entered a guilty plea in federal court in Greenville to Conspiracy to Commit Bank Fraud, in violation of Title 18 U.S.C. § 1349. United States District Judge Bruce H. Hendricks of Charleston accepted the guilty plea and will impose the sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that on April 29, 2015, Reavely used counterfeit identification at a SunTrust Bank branch in Anderson to withdraw $9,000 in cash and $40,000 in checks made payable to co-conspirators from a bank account that did not belong to her. Shortly thereafter, co-conspirators entered other SunTrust Bank branches in upstate South Carolina to attempt to cash the checks.
On May 22, 2015, Reavely attempted to use counterfeit checks at a Cedartown, Georgia Suntrust Bank branch. On June 23, 2015, in East Ridge, Tennessee, Reavely again attempted to withdraw funds from a bank account that did not belong to her using counterfeit identification. Law enforcement apprehended Reavely, and she confessed to attempting to defraud banks on numerous occasions.
Ms. Drake stated that the maximum penalty Reavely could receive is 30 years imprisonment and a fine of $1,000,000 dollars. The case was investigated by agents of the United States Secret Service, Anderson Police Department, Greenville City Police Department, Conyers Police Department, Cedartown Police Department, and East Ridge Police Department. Assistant United States Attorney Jamie Lea Schoen of the Greenville office prosecuted the case.
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Windsor Woman Charged with Mail and Wire FraudRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Brenda Hilton, age 59, of Windsor, Pennsylvania, was indicted by a federal grand jury on mail and wire fraud charges.
According to United States Attorney Bruce D. Brandler, Hilton worked as a claims specialist responsible for managing and authorizing payments relating to workers’ compensation claims at an insurance company that provides commercial property-casualty insurance to companies throughout North America. The indictment alleges that in 2012, Hilton submitted three fraudulent claims of approximately $27,728 for processing. The fraudulent claims that Hilton submitted directed all payments be sent to Hilton’s home address. Two of the three checks were deposited into Hilton’s personal bank account.
This case was investigated by the United States Postal Inspection Service. Assistant U.S. Attorney Chelsea Schinnour is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for each count under federal law is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Westminster Man Pleads Guilty to Child Porn ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Vern McPherson, age 53, of Westminster, pled guilty in federal court in Greenville, to possession and transporting child pornography, a violation of Title 18, United States Code, Section 2252A. United States District Judge Bruce H. Hendricks of Charleston accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that law enforcement received an investigative lead from HSI Cyber Crimes Center that a server in Switzerland (which had been seized by the Swiss Federal Police) revealed McPherson’s IP address as having accessed child pornography from the server.
After reviewing material from the Swiss case, a federal search warrant was obtained for McPherson’s home. A forensic exam of his computer revealed 693 images and 2 videos of child pornography.
Ms. Drake stated the maximum penalty McPherson can receive is a fine of $250,000 and/or imprisonment for no more than 20 years, plus a special assessment of $100.
The case was investigated by agents of ICE-Homeland Security Investigations. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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West Monroe Man Sentenced to 262 Months in Prison for Distributing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Richard S. Buffham, 49, of West Monroe, New York, was sentenced today to serve 262 months in prison for distributing child pornography, announced United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI). The conviction was the result of a joint investigation by HSI, the New York State Police Troop D Computer Crime Unit, and the New York State Police, Bureau of Criminal Investigation (BCI-Pulaski).
As part of his guilty plea, Buffham admitted that he distributed images of child pornography in an online chat group on September 23, 2015, September 24, 2015, and September 27, 2015. A search warrant of the defendant’s home and computer was executed on June 16, 2016, leading to the recovery of evidence.
Senior United States District Judge Norman A. Mordue also imposed a lifetime term of supervised release, which will start after Buffham is released from prison, and ordered payment of a $300 special assessment. As a result of his conviction, Buffham will be required to register as a sex offender upon his release from prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was prosecuted by Assistant United States Attorney Geoffrey Brown.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Virginia Man Sentenced for International Parental KidnappingRead 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 Philip Zodhiates, 61, of Waynesboro, Virginia, who was convicted by a federal jury of international parental kidnapping and conspiracy to commit international parental kidnapping, was sentenced to 36 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Paul Van de Graaf and Michael DiGiacomo, who handled the prosecution of the case, stated that beginning in 2009, the defendant conspired with Lisa Miller to take Miller’s then seven-year-old daughter from Virginia to Nicaragua. Zodhiates transported Miller and the child to the Buffalo area where the two crossed over the Rainbow Bridge Port of Entry into Canada. Miller and the child then flew from Toronto, Ontario to Nicaragua. After arriving in Nicaragua, Miller was sheltered and assisted by others who had been recruited by Zodhiates. Miller and the child have not been seen since.According to evidence presented by the Government, the kidnapping was an attempt to obstruct the parental rights of Miller’s former partner from a civil union that took place in the State of Vermont. The child was born during the period of the civil union and the State of Vermont accordingly governed the parental rights of both Miller and her former partner.
Lisa Miller is also charged with international parental kidnapping and conspiracy to commit international parental kidnapping but remains a fugitive. Also charged in this case is Timothy Miller (no relation) from Nicaragua. He was recently arrested after being deported by Nicaragua and is due to appear at a later date in the Western District of New York.
A fourth defendant, Kenneth Miller (also not related) from Virginia, was charged and convicted of international parental kidnapping in the District of Vermont in 2012. Kenneth Miller is currently serving a 27-month prison sentence.
The sentencing is the culmination of an investigation by the Vermont Office of the United States Marshal’s Service, under the direction of David Damag, and the Vermont Office of the Federal Bureau of Investigation, under the direction of Andrew Vale, Special Agent-in-Charge.
Utica Man Sentenced for Possessing Firearm and Ammunition as a Convicted FelonRead the Press Release
SYRACUSE, NEW YORK – Harold Jones, 23, of Utica, New York, was sentenced today to serve thirty (30) months in prison for being a felon in possession of a firearm and ammunition, announced United States Attorney Richard S. Hartunian and Special Agent in Charge Ashan M. Benedict of the New York Field Office of the United States Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
As part of his previous guilty plea, Jones admitted that on April 20, 2016, he possessed and sold a Smith & Wesson model .40 caliber pistol and twelve (12) rounds of .40 caliber ammunition for $600. Jones was prohibited from possessing the pistol and ammunition because he was convicted of prior felony offenses.
Senior U.S. District Judge Frederick J. Scullin, Jr. also imposed a three (3) year term of supervised release, which will start after Jones is released from prison, and ordered him to pay a $100 special assessment.
This case was investigated by ATF (Syracuse Resident Office) and prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown.
Upstate Couple Sentenced for Drug ChargesRead the Press Release
Contact Person: Jamie L. Schoen (864) 282-2100
Greenville, South Carolina---- United States Attorney Beth Drake stated today that Norman W. Jefferson, age 51, of Greenville, South Carolina, and Roshaundra A. Griffin, age 46, of Anderson, South Carolina were sentenced today in federal court in Greenville, South Carolina, for Conspiracy to Possess With Intent to Distribute Cocaine Base, in violation of 21 U.S.C. § 841. Jefferson was also sentenced for one count Possession of a Firearm During a Drug Trafficking Crime, in violation of 18 U.S.C. § 924(c). United States District Judge Bruce H. Hendricks of Charleston sentenced Jefferson to one day imprisonment and Griffin to five years’ probation on the drug conspiracy charge, and sentenced Jefferson to sixty months for Possession of a Firearm During a Drug Trafficking Crime.
Evidence presented at the change of plea hearing established that in January and February of 2016, Griffin and Jefferson conducted multiple sales of crack cocaine from their residence. In March of 2016, Greenville Police Department obtained and executed a search of their residence. Officers located Jefferson in possession of a loaded Ruger .380 caliber pistol and both individuals in close proximity to crack cocaine. Drug paraphernalia was located throughout the house.
The case was investigated by agents of ATF and the Greenville Police Department. Assistant United States Attorney Jamie Lea Schoen of the Greenville office prosecuted the case.
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University Law Professor Charged in Multi-Million Dollar Corporate Fraud SchemeRead the Press Release
Acting United States Attorney Gregory G. Brooker today announced a federal indictment charging EDWARD S. ADAMS, an attorney and university law professor, with orchestrating an elaborate fraud scheme to embezzle millions of dollars of investors’ funds. ADAMS is expected to make his initial appearance in U.S. District Court in Minneapolis later this week.
“The defendant’s brazen theft of millions of dollars of investor’s funds over the course of several years is compounded by the fact that he holds positions of public trust as an attorney and law school faculty member,” said FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton. “The FBI remains committed to working with our law enforcement partners to detect corporate crime in all its forms and bring those responsible to justice.”
“The U.S. Postal Inspection Service vigorously pursues prosecution of criminals who callously defraud our citizens using the U.S. Mail. Postal Inspectors are committed to ensuring public confidence in the U.S. Mail. Fraud of this magnitude is not a victimless crime. Honest, hardworking Americans pay the price when fraudsters wrongfully steal their hard-earned money.” said Postal Inspector in Charge, Craig Goldberg.
“IRS Criminal Investigation Special Agents are proud to work with our law enforcement partners and the U.S. Attorney’s Office to investigate and prosecute individuals, such as Edward Adams, who attempt to enrich themselves by fraudulent means,” stated Shea Jones, Special Agent in Charge of the St. Paul Field Office. “IRS Criminal Investigation is committed to using our financial investigative expertise to stop investment fraud schemes and other types of white collar crime."
According to the indictment and documents filed in court, Apollo Diamond, Inc. (“Apollo Diamond”) and Apollo Diamond Gemstone Corporation (“Apollo Gemstone”) (collectively, “Apollo”) was a privately held company that produced lab-grown diamonds. ADAMS, a Minneapolis lawyer and law professor, became involved with Apollo through familial relations and held various managerial titles with the company such as CFO, Secretary, EVP, and General Counsel.
According to the indictment, in 2003, at the direction of ADAMS, Apollo retained ADAMS’ financial services firm, Equity Securities, Inc., to provide investment banking services and to raise money for Apollo. Equity Securities raised more than $25 million for Apollo, for which Equity Securities received approximately $4 million in commission. Following the fundraising efforts, ADAMS continued to handle the ongoing financial matters for Apollo with minimal oversight from the Board of Directors.
According to the indictment, from 2006 through 2009, ADAMS opened multiple bank accounts with various titles including “RL Investments,” “DL Investments,” “ADR Investments,” “Apollo Diamond, Inc.,” and “Apollo Diamond Gemstone Corporation,” none of which were authorized by Apollo or its Board of Directors. ADAMS was the sole signatory and the only person with access to the accounts and the account statements, which were mailed to his personal addresses.
According to the indictment, ADAMS told investors that they could purchase shares in Apollo by making their checks payable to the accounts he controlled. He promised that their money would be used for Apollo’s operations, including working capital, funding additional diamond growing equipment, and research and development, when, in reality, ADAMS was embezzling the money. For example, ADAMS deposited approximately $2,400,000 of investors’ funds into the RL Investments account and then surreptitiously diverted more than $1,200,000 for his own personal use, an additional $101,500 to his law firm’s bank account, and distributed the remainder of the funds to various individuals as determined by ADAMS.
According to the indictment, in 2010, due in part to ADAMS’ embezzlement, Apollo could no longer meet its financial obligations and was on the brink of insolvency. To prevent his theft from being uncovered through bankruptcy litigation, ADAMS devised a scheme to appease shareholders by convincing them to convert their worthless Apollo stock into stock in a new company, which ADAMS secretly controlled. In March 2011, ADAMS and his law partner (identified in the indictment as “M.M.”) created a privately held company called Scio Diamond Technology Corporation (“Private Scio”), of which ADAMS and his partner were the sole shareholders and board members. ADAMS and his partner then notified shareholders that Private Scio would acquire the assets of Apollo for approximately $2,000,000 and that shareholders, without expending any additional money, would receive the same number of shares in the new entity. However, Private Scio was not yet capitalized and did not have the funds to complete the asset purchase. To further this scheme, ADAMS orchestrated a “reverse merger” transaction between Private Scio and Krossbow Holding Corporation, a publicly traded shell company, which resulted in a new publicly traded company, also called Scio Diamond Technology Corporation (“Public Scio”).
According to the indictment, ADAMS used Public Scio to raise the $2,000,000 necessary to complete the Apollo asset purchase, leading the former Apollo investors to believe that their investments were safe and that they now held shares in a publicly traded, operational company. However, ADAMS used Public Scio’s acquisition of Apollo as yet another opportunity for personal profit and funneled the majority of the $2,000,000 into bank accounts controlled by ADAMS. In total, from 2006 through 2013, ADAMS stole from investors more than $4.38 million and paid to his own law firm more than $2.54 million.
This case is the result of an investigation conducted by the FBI, United States Postal Inspection Service, and the Criminal Investigation Division of the IRS.
Assistant U.S. Attorneys David M. Maria and John E. Kokkinen are prosecuting the case.
Defendant Information:
EDWARD S. ADAMS, 64,
Minneapolis, Minn.
Charges:
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Mail fraud, 8 counts
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Wire fraud, 6 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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U.S. Attorney's Office and SCDC Continue Partnership for "Real-Time Reentry"Read the Press Release
Contact Person: Lance Crick (864) 282-2105
Columbia, South Carolina-----The United States Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) are continuing their partnership with the South Carolina Department of Corrections (SCDC) to keep guns out of the hands of former offenders.
The project is called “Real-Time Reentry” and focuses on violent offenders and gang members who re-offend with firearms while still under SCDC’s Intensive Supervision Services after being released. Assistant United States Attorneys (AUSAs) and law enforcement officials visit with Youthful Offenders in prison to educate them about the opportunities and resources they have to lead productive and successfully rehabilitated lives upon release. If caught with a firearm or ammunition, however, the individual will be taken into custody immediately and their case will be referred to ATF and the U.S. Attorney’s office in “real time” for federal review and prosecution in federal court, where firearms-related sentences for repeat-offenders are more considerable.
AUSAs and representatives of SCDC were at Trenton Correctional Institution yesterday, Tuesday, March 21, at 11am, for their regularly scheduled “Real-Time Reentry” visit with Youthful Offenders.
“Because of their criminal records, Youthful Offenders in the state system have created future exposure for themselves, in the federal system, if they are ever found in possession of a firearm,” said Beth Drake, United States Attorney for the District of South Carolina. USA Drake further observed, “We want these young South Carolinians to know that they are prohibited as felons from possessing firearms, and to further incentivize good choices and lawful behavior.”
The “Real-Time Reentry” partnership, which began in December 2015, is an iteration of Project Real Time, an initiative launched in the upstate in August 2015 under the U.S. Attorney’s Office’s Project Cease Fire program. Project Cease Fire brings together local, state, and federal law enforcement with the community. The collective efforts of this partnership encourage cooperation in a shared goal to make South Carolina safer by reducing gun violence, arrests, and incarceration.
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U.S. Army Employee at Picattiny Arsenal Charged with Conspiracy to Defraud the United States and to Accept BribesRead the Press Release
NEWARK, N.J. – A Pennsylvania man was charged today with abusing his position as an employee of the U.S. Army Contracting Command New Jersey by accepting bribes in connection with renovation projects at Picattiny Arsenal (PICA) and at the Joint Base McGuire-Dix Lakehurst (Ft. Dix), Acting U.S. Attorney William E. Fitzpatrick announced.
Kevin Leondi, 56, of Stroudsburg, Pennsylvania, was arrested today at PICA. He is charged by complaint with knowingly and intentionally conspiring to defraud the United States and to demand, seek, receive, accept, and agree to accept bribes in return for being influenced in the performance of his official duties. He is scheduled to appear this afternoon before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
According to the complaint:
Leondi represented the Army as a liaison with contractors on renovation projects at PICA and Ft. Dix. A contractor (Contractor No. 1) owned and operated a construction company in Pennsylvania that had subcontracts with a business (Company No. 1) that operated as a prime contractor with respect to various construction projects at PICA and Fort Dix. From December 2010 through August 2015, Leondi demanded and accepted more than $125,000 in bribes from Contractor No. 1 in return for assisting Contractor No. 1 obtain and retain subcontracts and other favorable assistance at PICA and Fort Dix. The bribes included direct payments by Contractor No.1 to Leondi, Contractor No. 1’s purchase of unneeded equipment from Leondi at inflated prices, and Contractor No. 1’s payment for construction work done by another contractor at Leondi’s personal property. Leondi also demanded and accepted more than $30,000 in bribes from someone who managed large-scale construction projects (Project Manager No. 1) for Contractor No. 1. The bribes included cash payments as well as the purchase by Leondi of a truck from Contractor No. 1 at a significantly discounted price.
Leondi also directed Contractor No. 1 to perform free construction work at Project Manager No. 1’s home in Pennsylvania and to pay Project Manager No. 1 approximately $50,000 to help Project Manager No. 1 pay his mortgage.
The conspiracy count with which Leondi is charged carries a maximum potential penalty of five years in prison and a $250,000 fine.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh Barzey; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge Larry Scott Moreland, with the investigation leading to today’s charges.
The government is represented by Senior Litigation Counsel Leslie Faye Schwartz, of the U.S. Attorney’s Office’s Special Prosecutions Division, and Assistant U.S. Attorney Barbara Llanes, Deputy Chief, General Crimes Unit, of the U.S. Attorney’s Office’s Criminal Division, in Newark.
Defense counsel: Ernest D. Preate, Jr. Scranton, Pennsylvania
Two Physicians Found Guilty for Distributing OxycodoneRead the Press Release
Dr. Anthony Conrardy, age 61, and Dr. William McCutchen, III, age 46, were found guilty yesterday of unlawfully distributing Schedule II narcotics by a federal jury in Detroit, MI, acting United States Attorney Daniel L. Lemisch announced today. Dr. Anthony Conrardy was convicted of five counts of unlawfully distributing Oxycodone and Dilaudid, and Dr. William McCutchen, III was convicted of four counts of unlawfully distributing Oxycodone.
Lemisch was joined in the announcement by Special Agent in Charge Timothy J. Plancon, of the Drug Enforcement Administration, Special Agent in Charge David P. Gelios of the Federal Bureau of Investigation’s Detroit Division, Lamont Pugh, Special Agent in Charge of the Inspector General of the Department of Health and Human Services, and Manny Muriel, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation.
The jury deliberated for 8 days before returning the verdict, concluding a four-week trial before United States District Judge Arthur J. Tarnow.
Their convictions at trial follow the earlier guilty pleas of Dr. Shardchandra Patel, age 72, to conspiracy, and Lillian Meghnot, age 86, to conspiracy, healthcare fraud, and money laundering. The criminal activity of Dr. Anthony Conrardy, Dr. William McCutchen, III, Dr. Sharadchandra Patel, and Lillian Meghnot stemmed from the operation of the Meghnot Comprehensive Center for Hope, a purported medical clinic formerly located on the Ann Arbor-Ypsilanti border. Federal agents executed a search warrant and arrests at the Meghnot Clinic in March of 2015. The Meghnot Clinic was owned and operated by Lillian Meghnot, who hired staff and others to give the Meghnot Clinic the false appearance of a legitimate medical center, when in reality the Meghnot Clinic was a pill mill supplying narcotics to drug-seeking customers.
The evidence presented at trial demonstrated that Dr. Anthony Conrardy and Dr. William McCutchen, III wrote Schedule II narcotic prescriptions to individuals outside the course of professional medical practice and for no legitimate medical purpose in exchange for compensation. The Meghnot Center charged its purported patients $250.00 in cash for a thirty-day supply of narcotics.
The guilty pleas of Lillian Meghnot and Dr. Sharadchandra Patel acknowledged that from approximately September of 2011 to March of 2015, the Meghnot Clinic ostensibly operated as a pain management center that, in reality, wrote medically unnecessary prescriptions for Oxycodone, Dilaudid, Vicodin, and other narcotics and benzodiazepines to drug-seeking individuals purporting to be patients. The Meghont Clinic’s unlawful practices generated roughly $4.5 million dollars in revenue. And the Clinic’s physicians prescribed over 1.5 million oxycodone pills, among other drugs.
Each of the counts on which Dr. Conrardy and Dr. McCutchen were convicted carry a penalty of up to 20 years in prison and a fine of up to $1,000,000.
The jury trial and convictions followed a multi-year investigation by the United States Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the United States Department of Health and Human Services Office of the Inspector General (HHS-OIG), and the United States Internal Revenue Service Office of Criminal Investigations (IRS-CI). Assistant United States Attorneys Charles J. Kalil II and Patrick J. Hurford prosecuted the case.
Two Detroit Men Plead Guilty to Robbing Springfield Jewelry StoreRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced today that two Detroit, Mich., men have pleaded guilty in federal court to robbing a Springfield, Mo., jewelry store.
Mark Anthone Pitts, 32, of Detroit, pleaded guilty today before U.S. Magistrate Judge David P. Rush to the charge contained in a Dec. 6, 2016, federal indictment. Co-defendant Justin B. Anderson, 32, of Detroit, pleaded guilty to the same charge on March 9, 2017.
Pitts and Anderson each admitted to robbing Maxon’s Diamond Merchants, 2622 S. Glenstone Ave., Springfield, on Sept. 1, 2016.
According to Pitts’s plea agreement, an unknown African-American male was buzzed through the secured front door of the jewelry store. When the male entered the store, he refused to close the front door. Employees approached the male, telling him to close the door. When the individual refused to shut the door, the employees attempted to push him out of the store. The male then physically shoved an employee as he kept the front door open.
Pitts and Anderson then entered the store. They pulled out small sledgehammers, causing employees to retreat from the front of the store out of fear of being harmed. Pitts and Anderson used the sledgehammers to break the glass counters and display cases that contained Rolex watches. Pitts and Anderson then grabbed several Rolex watches and fled from the store. Officers later determined that 11 Rolex watches, valued at a total of $118,000, were stolen in the robbery.
Cell phone video from a store employee showed the getaway car – a 2000 Dodge Stratus that had been stolen from a local Target department store earlier that day – waiting for the three men. Pitts and Anderson, however, failed to escape in the getaway car, which left the scene without them. Pitts was arrested after store employees who followed him took police officers to his location.
Pitts told officers that he did not specifically threaten an employee of Maxon’s Diamond Merchants, but if they had actively resisted the robbery, he would have used his sledgehammer to physically assault the employees.
Under federal statutes, Pitts and Anderson are each subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Patrick Carney and Nhan D. Nguyen. It was investigated by the FBI and the Springfield, Mo., Police Department.
Texas Business Owner Pleads Guilty to Not Paying Approximately $18 Million in Employment TaxesRead the Press Release
Kept Withholdings and Social Security and Medicare Contributions – Spent Funds on Personal Travel and Ranch
A Houston, Texas business owner pleaded guilty today to one count of failing to pay over employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Abe Martinez for the Southern District of Texas.
According to documents filed with the court, Richard Floyd Tatum Jr., 57, owned Associated Marine & Industrial Staffing Inc. (AMI), an industrial staffing company that provided temporary labor to businesses in Texas and other states. Tatum employed approximately 1,000 people to include internal employees, who worked for AMI, and external employees, who AMI assigned to work on-site at client locations. Tatum was responsible for collecting, accounting for and paying over to the Internal Revenue Service (IRS) the payroll taxes withheld from AMI’s employees’ wages. Tatum exercised significant control over AMI’s finances to include entering into contracts, signing checks, to include payroll, and deciding which creditors to pay. Tatum also signed and filed AMI’s employment tax returns.
From March 2008 through December 2009, Tatum filed false and untimely employment tax returns for AMI that did not report AMI’s external employees. In May 2013, Tatum filed untimely returns for the quarters ending in March 2010 through December 2012, reporting AMI’s external employees but failing to make any payments. Tatum withheld approximately $12 million in payroll taxes from March 2008 through December 2012, which he did not pay over to the IRS. Tatum also failed to pay $6 million of AMI’s contributing share of social security and Medicare taxes during the same quarters. Instead, he used the money for his personal benefit, including making payments on his ranch and traveling to Las Vegas, Hawaii and France. Tatum admitted that he caused a tax loss of more than $18 million.
“Rather than pay over to the IRS his employees’ withholdings and social security and Medicare contributions, Richard Tatum diverted the funds to his personal benefit,” said Acting Deputy Assistant Attorney General Goldberg. “Employment taxes are not a source of funding for ranches or premium travel -- those who keep these funds and use them as a personal piggybank will be prosecuted and face incarceration.”
“Failure to pay over employment taxes taken from employee wages is a serious criminal offense,” said Chief Richard Weber of IRS Criminal Investigation. “It not only harms the employees’ future social security and Medicare benefits, it’s stealing from honest taxpayers and the U.S. Treasury. IRS Criminal Investigation will continue to track down those who collect these taxes and use the funds for personal gain.”
Sentencing is scheduled for June 1. Tatum faces a statutory maximum sentence of five years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Martinez commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Grace Albinson and Mara Strier of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.