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4 May 2017
Schuele Boys Gang Associate Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. — Acting U.S. Attorney James P. Kennedy, Jr. announced today that Demario Robbins, 26, of Buffalo, NY, who was convicted of conspiracy to distribute cocaine, was sentenced to 24 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney George C. Burgasser, who handled the case, stated that as an associate of the Schuele Boys Gang, the defendant purchased cocaine from another gang member which he then repackaged into smaller amounts for re-sale in the Buffalo area.
The Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, is believed to be responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine, and marijuana.
Robbins is one of 28 Schuele Boys Gang members, associates, and other individuals arrested in this case. To date, 19 of the 28 charged have been convicted. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s sentencing is the culmination of an investigation on the part of the FBI's Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
San Jose Resident Pleads Guilty in False Tax Refund SchemeRead the Press Release
SAN JOSE – Trong Minh Nguyen, aka John Nguyen, pleaded guilty for his role in a conspiracy to file false claims announced United States Attorney Brian J. Stretch, United States Postal Inspection Service Inspector in Charge Rafael Nuñez, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf.
According to the plea agreement entered yesterday afternoon, Nguyen, 57, of San Jose, began preparing false federal income tax returns in May of 2012 for individuals in the San Jose area. Nguyen told unemployed individuals that he was able to secure a tax refund on their behalf. He then obtained the individuals’ names and social security numbers and used that information to prepare tax returns. In each case, he claimed the person was employed and had earned income. Nguyen charged each person a fee of between $50 and $500 for preparing the false tax return and was typically paid after the IRS issued a tax refund check related the false claim he filed. When completing the false tax returns, Nguyen included fictitious information. For example, instead of using a taxpayer’s real home address, Nguyen used an address where he was able to intercept the mail. Nguyen also included false information for wages, federal tax withholdings, earned income tax credit, making work pay credit, and tax refund amounts.
In addition, in June of 2012, Nguyen conspired with others to file false federal income tax returns. As part of the conspiracy, Nguyen and his co-conspirators solicited individuals in the San Jose area, asking only for their names and social security numbers. Nguyen received forms that were signed by the individuals and then altered information on the forms by, among other things, inserting figures into the document. Nguyen also rented several private mailboxes and used numerous addresses on Senter Road in San Jose as well as other residential addresses in order to collect the tax refund checks that were issued by the IRS. In total, Nguyen and his coconspirators filed about 1,700 false federal income tax returns that claimed more than $1.5 million in fraudulent tax refunds.
A grand jury indicted Nguyen on June 10, 2015, and charged him with conspiracy to submit false claims, in violation of 18 U.S.C. § 286, and twenty-one counts of submitting false claims, in violation of 18 U.S.C. § 287. Pursuant to yesterday’s plea agreement, Nguyen pleaded guilty to one count of conspiracy and four counts of filing false claims. The remaining counts will be dismissed.
The maximum sentence for conspiracy to file false claims is ten years in prison and a fine of $250,000. The maximum sentence for submitting file false claims is five years in prison and a fine of $250,000. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Thomas Newman and U.S. Department of Justice Trial Attorney Gregory Bernstein are prosecuting the case. The prosecution is the result of an investigation by the U.S. Postal Service and the Internal Revenue Service, Criminal Investigation.
Salamanca Man Indicted on Fraud and Money Laundering ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned a 48-count indictment charging Sergiy Bezrukov, 33, of Salamanca, NY, with conspiracy to defraud, mail fraud, wire fraud, bank fraud, and money laundering. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Trini Ross, who is handling the case, stated that according to the indictment, the defendant operate fraudulent debt restructuring businesses out of two offices that he opened in the Western New York area.
Bezrukov sent solicitation letters under various false and fictitious names, offering to assist small businesses with restructuring high interest loans. After the small businesses agreed to work with the defendant and his company, Bezrukov withdrew sums of money from the accounts of the small businesses and used those funds for purposes not associated with assisting the small businesses. When the small business owners attempted to contact the defendant or others at the fraudulent company, they would get no response. Bezrukov used the fraudulent debt restricting business to defraud approximately 200 victims out of $1,200,000 dollars.
The defendant is being held pending arraignment on May 9, 2017, at 11:00 a.m. before U.S. Magistrate Judge H. Kenneth Schroeder.
The indictment is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division, and Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Retired NYPD Officer Sentenced to 15 Months Imprisonment for Laundering Funds of A Multi-Million Dollar Prostitution ServiceRead the Press Release
Michael Rizzi, a retired New York City Police Officer, was sentenced today to 15 months’ imprisonment, to be followed by four months’ home confinement and three years of supervised release, for laundering the proceeds of a multi-million dollar prostitution enterprise that he operated. Additionally, United States District Judge Carol B. Amon ordered the forfeiture of 58 websites and $120,247 seized from merchant accounts, as well as the Florida vacation home that the defendant had purchased using proceeds of his prostitution operation. The sentence followed the defendant’s guilty plea to one count of conspiring to launder the proceeds of a prostitution enterprise between June 2012 and May 2016.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (HSI), New York.
As detailed in prior court filings, Rizzi operated a prostitution service under the name BJM/Manhattan Stakes and Entertainment (“BJM”). BJM advertised its services on dozens of websites, including nycescortsnyc.com, and eliteescortsnyc.com, among others. BJM employed “phone bookers” to arrange appointments between prostitutes and BJM’s customers, as well as drivers who collected cash and receipts from BJM’s prostitutes.
The prostitutes working for BJM charged their customers as much as $2,000 per hour. The investigation into the company’s financial records has revealed that several of BJM’s clients spent more than $100,000 on the company’s services, and that some clients paid more than $25,000 for a single night. Over the course of its operations, BJM collected millions of dollars in payments, including more than $2 million in credit card payments alone between October 2012 and March 2016.
BJM is a successor to Pure Platinum Models, another company that offered prostitution services. Following an investigation by HSI, Pure Platinum Models was closed in 2014 and its owner, Marc Schulman, was convicted in the Eastern District of New York of laundering more than $1 million dollars through the company.
“Michael Rizzi left behind a life of law enforcement for a new career in which he flagrantly disregarded the law and exploited others for his own enrichment,” stated Acting United States Attorney Rohde. “This Office is committed to dismantling money laundering organizations, including those which promote and capitalize on illegal prostitution.”
“Leaving behind a life of public service as a member of the NYPD, Michael Rizzi retired into the life of a pimp, running a high end prostitution ring and laundering the proceeds of those crimes,” Special Agent-in-Charge Melendez stated. “The forfeiture of Rizzi’s vacation home, on top of his jail sentence, shows that HSI will continue to aggressively target those who run illegal prostitution rings, as well as proceeds that are generated by this illegal activity.”
The government’s case is being handled by the Office’s Narcotics and Money Laundering Section. Assistant United States Attorneys Jennifer M. Sasso and Erik D. Paulsen are in charge of the prosecution. Assistant United States Attorney Claire Kedeshian is in charge of the forfeiture.
The Defendant:
MICHAEL RIZZI
Age: 45
Staten Island, New York
E.D.N.Y. Docket No. 16-CR-487
Reno Man Indicted for Sexual Exploitation of an Infant and Distribution of Child PornographyRead the Press Release
RENO, Nev. – A Reno man was indicted on Wednesday for the sexual exploitation of an infant and distribution of child pornography, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
Derrick Joseph Rady, 35, was charged with one count each of sexual exploitation of a minor and distribution of child pornography. If convicted, the mandatory minimum sentence for sexual exploitation of a minor is 15 years and a maximum of 30 years, and the mandatory minimum sentence for distribution of child pornography is five years and a maximum of 20 years.
As alleged in the indictment, on or about Jan. 27, 2017, Rady used an approximately one-year-old infant to engage in sexually explicit conduct for the purpose of producing and distributing child pornography. According to the complaint, Facebook and Google both reported possible child pornography on their sites to the National Center for Missing and Exploited Children. During the execution of a search warrant at Rady’s residence, the Northern Nevada Child Exploitation Task Force seized multiple electronic devices containing child pornography and a mobile phone that was later identified as the device used to create the child pornography.
“It is a high priority of the FBI to protect the most vulnerable in our society: our children,” said Aaron C. Rouse, FBI Las Vegas Special Agent in Charge. “Every time child pornography is viewed on the internet it re-victimizes a child.”
The case is being investigated by the Northern Nevada Child Exploitation Task Force, which is comprised of members of the FBI, the Reno Police Department, the Washoe County Sheriff’s Office, and the Nevada Attorney General’s Office. The case is being prosecuted by Assistant U.S. Attorney Shannon M. Bryant.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Registered Sex Offender Sentenced to 16+ Years for Distributing Child PornRead the Press Release
WICHITA KAN. - A registered sex offender from Wichita was sentenced Thursday to 195 months in federal prison for distributing child pornography, U.S. Attorney Tom Beall said.
Jeremy Michael Schmidt, formerly known as Jeremy Michael Davis, 41, Wichita, Kan., pleaded guilty to one count of distributing child pornography. In 2013, Schmidt was convicted in Florida on a possession of child pornography charge and registered as a sex offender under the name Jeremy Michael Davis. He later changed his name to Jeremy Michael Schmidt.
Schmidt came to the attention of investigators in Wichita when they received four separate Cyber Tipline Reports from the National Center for Missing and Exploited Children. Investigators identified emails in which Schmidt provided links to child pornography.
Beall commended the Wichita Police Department, Homeland Security Investigations, the Internet Crimes Against Children Task Force and Assistant U.S. attorney Jason Hart for their work on the case.
Registered Sex Offender Charged with Enticement of A MinorRead the Press Release
James Johnman Jr., 36, of New Cumberland, Pennsylvania and a registered Megan’s Law offender, was charged today by Indictment with attempted enticement of a minor, distribution of child pornography, and possession of child pornography, announced Acting United States Attorney Louis D. Lappen.
If convicted the defendant faces a maximum possible sentence of life imprisonment and a mandatory of at least 15 years of imprisonment, a lifetime of supervised release, a $750,000 dollar fine, mandatory restitution, a $300 special assessment, and a $15,000 special victims assessment.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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 www.projectsafechildhood.gov.
The case was investigated by Federal Bureau of Investigations and is being prosecuted by Assistant United States Attorney Priya De Souza.
Philadelphia Pair Charged with CounterfeitingRead the Press Release
Garmonyou Wiles, 31, of Philadelphia, PA, and Michael Barnes, 29, of Camden, NJ, were charged today by Grand Jury Indictment with counterfeiting and narcotics charges announced Acting United States Attorney Louis D. Lappen. Wiles and Barnes were charged with possession and sale of counterfeit currency, as well as conspiring to sell and possess counterfeit currency. Additionally, Wiles alone was charged with possession with intent to distribute and sale of crack cocaine, as well as conspiring to possess and sell crack cocaine.
If convicted, Wiles and Barnes face guideline range sentences of 78-97 months and 70-87 months, respectively.
The case was investigated by Special Agent Harry Speer of the United States Secret Service and Special Agents Dale T. Keddie, James W. Crockett and Michael E. Roche of the United States Drug Enforcement Agency. The case is being prosecuted by Assistant United States Attorney Christopher J. Mannion.
Philadelphia Man Charged with Illegal Reentry After DeportationRead the Press Release
Karie Tafari Anthony Hibbert of Philadelphia, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about April 3, 2017, Hibbert, an alien, and native and citizen of Jamaica, was found in the United States after having been deported from the United States on or about October 22, 2001.
If convicted the defendant faces a maximum possible sentence of twenty years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Karen L. Grigsby.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Peruvian National Pleads Guilty to Smuggling Counterfeit Currency Through Logan AirportRead the Press Release
BOSTON – A Peruvian national pleaded guilty and was sentenced on April 26, 2017, for smuggling counterfeit U.S. currency into the United States.
Alejendrina Elsa Quispe Ramirez, 48, pleaded guilty on April 26, 2017, to smuggling counterfeit U.S. currency into the United States. U.S. District Court Judge George A. O’Toole Jr. sentenced Quispe to time served. As part of the plea agreement, Quispe agreed to leave the United States following sentencing.
In July 2016, Peruvian National Police advised the United States Secret Service (USSS) that Quispe and two of her sons would be traveling to the United States on July 11, 2016, through Boston’s Logan Airport, carrying a large amount of U.S. currency concealed in their luggage. The family members, all Peruvian nationals, were traveling on visas that were issued, in part, for the purpose of allowing one of the sons to obtain medical treatment in the United States. When federal agents searched Quispe’s luggage, they found spindles, used for string or yarn for industrial sewing or textile manufacturing machines, wrapped within the travelers’ clothing. Shortly after entering the United States, Quispe was arrested and further investigation of the luggage contents revealed counterfeit $100 bills totaling $1,190,000, all concealed within 140 spindles of thread.
Acting United States Attorney William Weinreb and Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office, made the announcement. The case was prosecuted by Lori J. Holik, Chief of Weinreb’s Major Crimes Unit.
Owners of Biofuel Company Indicted on Conspiracy and False Statement ChargesRead the Press Release
A Pennsylvania biofuel producer and two of its officers have been indicted on conspiracy and false statements charges for participating in a scheme that generated over $10 million in U.S. Environmental Protection Agency (EPA) renewable fuels credits (RIN credits) at Keystone Biofuels, Inc., a company that purported to produce and sell biodiesel for use as transportation fuel.
Ben Wootton, 52, of Enola, Pennsylvania; Race Miner, 48, of Buena Vista, Colorado; and Keystone Biofuels, Inc. were indicted by a grand jury in Harrisburg, Pennsylvania yesterday, announced U.S. Attorney Bruce D. Brandler for the Middle District of Pennsylvania, Acting Assistant Attorney General Jeffrey H. Wood for the Department of Justice’s Environment and Natural Resources Division, Acting Special Agent in Charge Jennifer Lynn for the Philadelphia Office of the EPA’s Criminal Investigation Division, and Acting Special Agent in Charge Steven L. McQueen of the FBI’s Philadelphia Field Office.
According to the indictment, Wootton and Miner were co-owners of Keystone Biofuels, Inc. located in Shiremanstown, Pennsylvania and later in Camp Hill, Pennsylvania. Wootton, serving as President of Keystone Biofuels and Miner, serving as Chief Executive Officer, are alleged to have participated in a scheme with other coconspirators to fraudulently claim RIN credits on non-qualifying renewable fuel. Although the credits required that the fuel pass standards set by the American Society for Testing and Materials (ASTM), the fuel produced by Keystone did not meet this standard, the grand jury alleges, and was placed into commerce despite being “off-spec.” The conspirators also allegedly generated fraudulent documentation and manipulated samples to be sent to laboratories for testing as part of their scheme. Keystone, Wootton and Miner also allegedly made false entries into an EPA tracking system in violation of the Clean Air Act.
The investigation was conducted by the EPA and FBI. Senior Litigation Counsel Howard P. Stewart for the Department of Justice’s Environmental Crimes Section, Trial Attorney Adam Cullman, and Assistant U.S. Attorney Geoffrey W. MacArthur of the Middle District of Pennsylvania are prosecuting this case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines. The crime of conspiracy is punishable by up to five years in prison. The crime of False Statements is punishable by up to five years in prison. A fine of up to $250,000 for an individual and $500,000 for a corporation may also be imposed.
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, among other factors.
Owners of Biofuel Company Indicted on Conspiracy and False Statement ChargesRead the Press Release
WASHINGTON – A Pennsylvania biofuel producer and two of its officers were indicted on May 3, 2017, on conspiracy and false statements charges for participating in a scheme that generated over $10 million in U.S. Environmental Protection Agency (EPA) renewable fuels credits (RIN credits) at Keystone Biofuels, Inc., a company that purported to produce and sell biodiesel for use as transportation fuel.
Ben Wootton, age 52, of Enola, PA, Race Miner, age 48, of Buena Vista, Co., and Keystone Biofuels, Inc. were indicted by a grand jury in Harrisburg, announced Bruce D. Brandler, U.S. Attorney for the Middle District of Pennsylvania, Jeffrey H. Wood, Acting Assistant Attorney General for the Department of Justice’s Environment and Natural Resources Division, Jennifer Lynn, Acting Special Agent in Charge for the Philadelphia Office of the Environmental Protection Agency’s Criminal Investigation Division, and Steven L. McQueen, Acting Assistant Special Agent In Charge of the Philadelphia Office of the Federal Bureau of Investigation.
According to the indictment, Wootton and Miner were co-owners of Keystone Biofuels, Inc. located in Shiremanstown, PA and later in Camp Hill, PA. Wootton, serving as President of Keystone Biofuels and Miner, serving as Chief Executive Officer, are alleged to have participated in a scheme with other coconspirators to fraudulently claim RIN credits on non-qualifying renewable fuel. Although the credits required that the fuel pass standards set by the American Society for Testing and Materials (ASTM), the fuel produced by Keystone did not meet this standard, the grand jury alleges, and was placed into commerce despite being “off-spec.” The conspirators also allegedly generated fraudulent documentation and manipulated samples to be sent to laboratories for testing as part of their scheme. Keystone, Wootton and Miner also allegedly made false entries into an EPA tracking system in violation of the Clean Air Act.
The investigation was conducted by the Environmental Protection Agency and Federal Bureau of Investigation. Department of Justice Environmental Crimes Section, Senior Litigation Counsel Howard P. Stewart, Trial Attorney Adam Cullman, and Assistant U.S. Attorney Geoffrey W. MacArthur of the Middle District of Pennsylvania are prosecuting this case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines. The crime of conspiracy is punishable by up to five years in prison. The crime of False Statements is punishable by up to five years in prison. A fine of up to $250,000 for an individual and $500,000 for a corporation may also be imposed.
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, among other factors.
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Oakland Man Charged with Transporting A Minor from Oregon to Engage in Prostitution in CaliforniaRead the Press Release
OAKLAND - A federal grand jury in Oakland indicted Eugene Latrell McNeely on April 20, 2017, for transporting a minor from Oregon to California with the intent that the minor engage in prostitution, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation, Special Agent in Charge, John F. Bennett.
According to the indictment unsealed today, on October 3, 2015, McNeely, 34, of Oakland, transported a person who was under the age of 18 from Oregon, where she then resided, to Oakland, Calif. with the intent that she engage in prostitution. The indictment charges McNeely with one count of transportation of a minor for prostitution, in violation of 18 U.S.C. § 2423(a).
McNeely was arrested this morning in Oakland and made his initial appearance in the Oakland federal courthouse today before U.S. Magistrate Judge Kandis A. Westmore. McNeely is currently in federal custody pending further hearings, the next of which is scheduled for 9:30 a.m. on May 9, 2017, before U.S. Magistrate Judge Nandor J. Vadas, for identification of counsel and status regarding detention.
The maximum statutory penalty for a violation of 18 U.S.C. § 2423(a), is life in prison, a $250,000 fine, and a lifetime term of supervised release. McNeely also faces a mandatory minimum sentence of 10 years in prison and a mandatory minimum 5-year term of supervised release. In addition, the court may order forfeiture and restitution. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorney Bill Gullotta is prosecuting the case with the assistance of Trina Khadoo. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Oakland Police Department.
Anyone who suspects instances of human trafficking are encouraged to call the FBI or the Human Trafficking Hotline at 1-888-373-7888. Anonymous calls are welcome.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, via its toll-free 24-hour hotline, 1-800-843-5678. Indeed, a NCMEC tip led to the discovery and rescue of the victim in this case.
New Orleans Man Sentenced for Conspiracy to Commit Access Device FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that RYAN CLAVERIE, age 37, of New Orleans, was sentenced today after previously pleading guilty today to conspiracy to commit access device fraud.
U.S. District Judge Jane Triche Milazzo sentenced CLAVERIE to two years probation and ordered to pay $7,460.06 in restitution.
According to court documents, CLAVERIE worked as a waiter in a restaurant in Metairie. During the course of his employment, CLAVERIE routinely handled the credit and debit cards of restaurant patrons. CLAVERIE had a credit card “skimmer” that extracted customer account information from the magnetic strip on the back of a credit card and a bank debit card and logged it for later download to a computer.
CLAVERIE and his co-conspirators used the captured electronic account information contained on the magnetic strips of these valid cards in order to manufacture and produce counterfeit credit cards. These counterfeit credit cards were used to fraudulently obtain things of value for their own personal gain at several retail stores and establishments in the metropolitan New Orleans area.
Acting U.S Attorney Evans praised the work of the U.S. Secret Service, New Orleans Field Office, the Jefferson Parish Sheriff’s Office, the New Orleans Police Department, the St. Tammany Parish Sheriff’s Office, and the Kenner Police Department. Assistant U.S. Attorney Loan AMimi@ Nguyen was in charge of the prosecution.
New Orleans Man Pleads Guilty to Possession of Ammunition as a FelonRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that AHMAD WATERHOUSE, age 32, of New Orleans, pled guilty today to one count of possession of ammunition as a felon.
According to court documents, on the morning of May 3, 2016, New Orleans Police Department (NOPD) officers responded to a 911 call reporting firearm violence at 2632 Deslonde Street, New Orleans. The caller stated that she had been in a fight with her ex-boyfriend, AHMAD WATERHOUSE, and that he shot a gun at her during the fight. She further stated that she saw the defendant leave the house with the gun, possibly in order to hide it.
NOPD officers responded minutes later and met with the victim. She confirmed that she had been in a fight with WATERHOUSE at his mother’s house where he was living. She stated that, during the altercation, WATERHOUSE went to his room, retrieved a gun, and fired it. Officers met with WATERHOUSE and performed a gunshot residue test on his hands. The test result was positive for the presence of gunshot residue. Officers obtained a search warrant for the premises and found over one hundred rounds of ammunition in the defendant’s bedroom. Most of the ammunition was .40 caliber Smith & Wesson bullets. Officers also found an empty box for a Glock .40 caliber Smith & Wesson handgun. Officers could not locate the gun despite bringing in a K-9 unit.
At the time of this incident, WATERHOUSE was on federal supervised release. He had been convicted in U.S. District Court for the Eastern District of Louisiana on August 7, 2014, for conspiracy to distribute crack cocaine and distribution of crack cocaine. WATERHOUSE had been sentenced to 43 months of imprisonment and three years of supervised release.
WATERHOUSE faces a maximum sentence of 10 years in prison, a $250,000 fine, and up to three years of supervised release. U.S. District Judge Jane Triche Milazzo set sentencing for August 10, 2017. WATERHOUSE also faces supervised release revocation proceedings on July 27, 2017, which will also be heard by U.S. District Judge Milazzo.
Acting U.S. Attorney Evans praised the work of the New Orleans Police Department along with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) in investigating this matter. Assistant United States Attorney Matthew Payne and Special Assistant United States Attorney Ryan McLaren are in charge of the prosecution.
New Orleans Bail Bondswoman Sentenced for Mail Fraud ConspiracyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JANET SMITH, age 54, of New Orleans, was sentenced today after previously pleading guilty to a one-count Bill of Information charging her with conspiracy to commit mail fraud.
U.S. District Judge Jane Triche Milazzo sentenced SMITH to one year of probation.
According to court documents, SMITH became a licensed bail bondwoman in 1996. In about June 2006, she began working as a bailbondsman at an office operated by Rufus Johnson located at 538 S. Broad Street in New Orleans. Between June 2006 and July 2012, SMITH permitted her name, license, and contracts with two insurance companies to be used by Rufus Johnson, an unlicensed bailbondsman, to operate an illegal bail bonding business out of the Broad Street office.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter, and the assistance of the Metropolitan Crime Commission, the New Orleans Police Department, and the Orleans Parish District Attorney’s Office. Assistant U.S. Attorneys Michael B. Redmann and Mark A. Miller were in charge of the initial prosecution. Jordan Ginsberg, Harry W. McSherry, and Brittany Reed were in charge of sentencing-related proceedings and the trial of Rufus Johnson.
New London Man Sentenced to 7 Years in Federal Prison for Heroin and Firearm OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that GABRIEL PAULINO, 28, of New London, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 84 months of imprisonment, followed by three years of supervised release, for heroin and firearm offenses.
According to court documents and statements made in court, on April 6, 2016, PAULINO was arrested after a court-authorized search of PAULINO’s New London apartment revealed a fully-loaded Beretta 9mm handgun, a Beretta “Silver Pigeon” 12-gauge shotgun, 12-gauge shotgun shells, 94 individually knotted bags of heroin, items used to process and package drugs for street sale, and several cell phones. The 9mm handgun had been reported stolen.
PAULINO has been detained since his arrest. On February 8, 2017, he pleaded guilty to one count of possession with intent to distribute heroin, and one count of possession of a firearm in furtherance of a drug trafficking crime.
PAULINO’s criminal history includes convictions for criminal possession of a firearm, possession with intent to sell, possession of narcotics, and violation of a protective order.
This matter was investigated by the New London Police Department, Connecticut State Police Statewide Narcotics Task Force and Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
New Hampshire Asbestos Abatement Company Sentenced for Defrauding Union Benefit FundsRead the Press Release
BOSTON – An asbestos removal company was sentenced today in federal court in Boston in connection with a scheme to pay union members at non-union rates and without benefits by setting-up and paying union members through a separate corporate entity.
AQE Inc. of Windham, NH, was sentenced by U.S. District Court Judge Patti B. Saris to one year of probation and was ordered to pay restitution of $500,000 to the Massachusetts Laborers Benefit Fund (MLBF). In February 2017, AQE Inc. pleaded guilty to 18 counts of mail fraud, one count of benefit fund embezzlement and 18 counts of filing false documents with an ERISA fund.
AQE Inc. employed members of the Tewksbury Local 1421 of the Laborers International Union of North America. It paid members of Local 1421 for jobs that required union participation from the payroll of AQE Inc., which was a union signatory corporation. When the jobs did not require a union signatory company, union members were paid from the payroll of Air Quality Experts Inc.— an entity of AQE Inc.’s business, serving as a second corporate identity. In these instances, union members did not receive union rates, and benefits were not paid by AQE Inc. to the MLBF, which provides medical and pension benefits to 8,000 laborers and their families in Massachusetts. AQE Inc. sent “remittance reports” to the MLBF that failed to report thousands of hours worked by members of Local 1421. By significantly under reporting the hours worked by union members, AQE Inc. failed to pay hundreds of thousands of dollars to the MLBF.
Acting United States Attorney William D. Weinreb; Cheryl Garcia, Special Agent in Charge of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigation, New York Region; and Susan Hensley, Regional Director of the Department of Labor, Employee Benefits and Security Administration, made the announcement today. Assistant U.S. Attorneys Fred M. Wyshak Jr. and Ryan M. DiSantis of Weinreb’s Public Corruption Unit prosecuted the case.
Navajo Man from McKinley County Pleads Guilty to Assaulting a ChildRead the Press Release
ALBUQUERQUE – Richard Martinez, 38, an enrolled member of the Navajo Nation who resides in Ojo Encino, N.M., pled guilty today in federal court in Albuquerque, N.M., to federal child abuse charges. The plea agreement recommends that Martinez be sentenced to five years of imprisonment followed by a term of supervised release to be determined by the court.
Martinez was arrested in Aug. 2016, on an indictment charging him with two counts of child abuse resulting in great bodily harm on Dec. 24, 2014, on the Navajo Indian Reservation in McKinley County, N.M.
During today’s proceedings, Martinez pled guilty to an information charging him with two counts of assault resulting in substantial bodily injury. In entering the guilty plea, Martinez admitted that on Dec. 24, 2014, he assaulted the victim who was under the age of 16 years by twisting and pulling the victim’s left leg and left arm causing the victim to suffer fractures to his shoulder and left leg. A sentencing hearing has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and is being prosecuted by Assistant U.S. Attorney Sarah Mease and Nicholas J. Marshall.
Morrisville Man Charged with Reentry After DeportationRead the Press Release
Jose Chaves-Leiva, a/k/a “Jose Amando Chaves,” of Morrisville, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about April 3, 2017, Chaves-Leiva, an alien, and native and citizen of Costa Rica, was found in the United States after having been deported from the United States on or about April 28, 2008, July 9, 2008, January 14, 2009, and March 26, 2009.
If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Terri Marinari.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Monsignor Pleads Guilty to Wire Fraud ChargesRead the Press Release
PHILADELPHIA – William Dombrow, of Darby, PA, pled guilty to four counts of wire fraud, announced Acting United States Attorney Louis D. Lappen. Dombrow, a Monsignor in the Archdiocese who is currently on administrative leave, is charged with fraudulently diverting more than $535,000 in Archdiocese funds for his own personal use.
Dombrow resided at the Villa Saint Joseph Retirement home in Darby, PA, which also served as home to a number of retired priests. In his position as Monsignor, Dombrow had sole access to a Villa Saint Joseph bank account at Sharon Savings Bank, which was funded by gifts from wills and life insurance proceeds that were intended for the Archdiocese. Today Dombrow admitted that from December 2007 through May 2016 he withdrew, or caused to be withdrawn, and fraudulently misappropriated approximately $535,258.11 in fraudulently obtained funds from the bank account that he controlled at Sharon Savings Bank, and spent the funds at casinos in Chester, the Poconos, and Aruba, as well as funding a lavish lifestyle for himself.
Sentencing has been set for August 15, 2017 before the Honorable Jeffrey Schmehl, Eastern District of Pennsylvania. Dombrow faces a maximum of 80 years’ imprisonment for all four counts of wire fraud, $1,000,000 in fines, 5 years of supervised release, a $400 special assessment, and mandatory restitution. Dombrow is 77 years of age.
This case was investigated by the FBI in conjunction with the Darby Police Department. It is being prosecuted by Assistant United States Attorney Michelle Rotella.
Momentive Performance Materials to pay $1.25 million for violating federal and state environmental laws in Waterford, New YorkRead the Press Release
ALBANY, NEW YORK - Momentive Performance Materials Silicones, LLC (“MPM”) has agreed to pay a $1.25 million civil penalty to resolve a complaint alleging violations of federal and state environmental laws in connection with MPM’s use of an incinerator at a manufacturing facility that it owns and operates in Waterford, New York, announced the United States Attorney’s Office for the Northern District of New York, the Department of Justice, the Environmental Protection Agency (“EPA”), the New York State Attorney General’s Office, and the New York State Department of Environmental Conservation (“DEC”). Both the complaint and the settlement agreement were filed in United States District Court in Albany.
The allegations in the civil complaint, which is docketed as United States of America and the State of New York v. Momentive Performance Materials Silicones, LLC, Civil No 1:17-CV-470, include the following:
MPM purchased a manufacturing facility in Waterford, New York in 2006 from the General Electric Company (GE), and continues to operate it to this day. At the time of the purchase of the facility, a rotary kiln incinerator, which had been operated by GE for more than 25 years, was part of the manufacturing process. MPM manufactures various products at the facility, including sealants made of silicone. The silicone manufacturing process generates hazardous waste. MPM sought and received permits from DEC to dispose of the hazardous waste onsite, subject to compliance with the Clean Air Act (CAA) and the Resource Conservation and Recovery Act (RCRA). MPM disposed of hazardous waste in the incinerator that included an automatic waste feed cut-off system designed to shut down the incinerator if MPM deviated from operating parameters designed to ensure compliance with the CAA and RCRA. Unbeknownst to federal and state authorities, MPM used a computer program to override the incinerator’s automatic waste feed cut-off system, allowing MPM to continue to burn hazardous waste in the incinerator in violation of its CAA and RCRA permits. On at least 4,213 occasions during the period of December 4, 2006 until December 31, 2008, MPM employees manually overrode the automatic waste feed cut-off system, thereby potentially exposing the public and the environment to harmful hazardous air pollutants, such as carbon monoxide, dioxins, and furans. Though its employees were violating federal and state law, MPM submitted, for the calendar years 2006 and 2007, compliance reports to the United States and the State of New York falsely attesting to compliance with RCRA, the CAA, and permits issued pursuant to those statutes. During its ownership and operation of the facility from the 1940s to 2006, GE committed similar violations, and in 2015 paid a $2.25 million civil penalty to resolve a civil complaint alleging that its employees also improperly overrode the incinerator’s automatic waste feed cut-off system while feeding hazardous waste into it.
MPM disclosed the extent to which its employees were improperly overriding the incinerator’s automatic waste feed cut-off system. Throughout the investigation, MPM also cooperated fully with the United States. In addition, MPM implemented new calibration procedures and modified equipment to address the issue. In light of its disclosure and subsequent cooperation, a civil penalty of $1.25 million was deemed appropriate.
“This settlement emphasizes that companies must adhere to mandated air pollution controls when disposing of hazardous wastes. Improper overrides threaten all of us with unnecessary exposure to harm”, said First Assistant United States Attorney Grant C. Jaquith. Jaquith commended EPA, DEC, the NYS Attorney General’s Office, and DOJ’s Environmental Enforcement Section for their contributions to this investigation.
This case was investigated by EPA and DEC, and is being handled by Assistant United States Attorneys Thomas Spina Jr. and Adam J. Katz, New York State Assistant Attorneys General Maureen F. Leary and James C. Woods, an attorney from the Department of Justice’s Environmental Enforcement Section, and assistant regional counsel from EPA’s office in New York City.
Mexican Nationals Arrested on Federal Counterfeit Trafficking ChargesRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney and Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Texas, announced federal charges against two Mexican nationals for allegedly operating a counterfeit airbag business out of their residence in Albuquerque, N.M. Dina Gonzalez-Marquez, 23, and Emilio Gonzalez-Marquez, 21, both of whom are illegally present in the United States, were arrested yesterday and made their initial appearances today in federal court on a three-count indictment charging them with trafficking in counterfeit goods.
The indictment charges the siblings with conspiring to traffic in counterfeit goods and two counts of trafficking in counterfeit goods. According to the indictment, Dina Gonzalez-Marquez and Emilio Gonzalez-Marquez conspired to traffic in counterfeit goods from Jan. 2015 to March 2017, by operating a business that sold counterfeit airbag modules and airbag covers out of their Albuquerque residence. They allegedly facilitated the conspiracy by listing and selling counterfeit airbag modules and airbag covers online, shipping the counterfeit goods to purchasers, and conducting in person sales of the counterfeit goods. The indictment alleges that undercover HSI Special Agents purchased counterfeit goods from the defendants on two occasions. Specifically it alleges that one Special Agent purchased a counterfeit airbag from the defendants in Aug. 2016, and another Special Agent purchased a counterfeit airbag cover from them in March 1, 2017.
Dina Gonzalez-Marquez and Emilio Gonzalez-Marquez remain in federal custody pending arraignment and detention hearings, which are scheduled for May 5, 2017.
If convicted on the charges in the indictment, Dina Gonzalez-Marquez and Emilio Gonzalez-Marquez each face a statutory maximum penalty of ten years in prison and a maximum fine of $2 million. Charges in indictments are merely accusations, and all criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of HSI, and is being prosecuted by Assistant U.S. Attorneys Brandon L. Fyffe and Nicholas Jon Ganjei.
Kennett Square Man Charged with Illegal Re-entry After DeportationRead the Press Release
Miguel Zavala-Lopez, of Kennett Square, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about April 7, 2017, Zavala-Lopez, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about October 15, 2002, May 2, 2007, and April 17, 2008.
If convicted the defendant faces a maximum possible sentence of two years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Laurie Magid.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Jury Finds Truck Driver Guilty Following Largest Seizure of Methamphetamine in Arkansas HistoryRead the Press Release
LITTLE ROCK—Patrick C. Harris, Acting United States Attorney for the Eastern District of Arkansas, Matthew Barden, Assistant Special Agent in Charge, Drug Enforcement Administration (DEA), Little Rock District Office, and Colonel William J. Bryant, Director of the Arkansas State Police, announced today that a federal jury found Javier Leon, 56, of Moreno Valley, Calif., guilty of possessing with the intent to distribute methamphetamine in a case that involved the largest amount of methamphetamine ever seized in Arkansas. Law enforcement located more than 260 pounds of methamphetamine—worth millions of dollars—in the back of Leon’s tractor-trailer while he was traveling through Lonoke in 2015.
United States District Judge James M. Moody, Jr., presided over the four-day trial, which concluded Thursday with the jury verdict. Leon will be sentenced by Judge Moody at a later date.
"This seizure had enough methamphetamine to supply every man, woman, and child in Little Rock," Harris said. "Thanks to the efforts of several law enforcement agencies and agents, this significant amount of methamphetamine will never hit the streets, and never poison our communities. This jury verdict makes clear that whatever level of involvement you have with this drug—as a seller, user, or courier—there will be justice served and punishment delivered."
Testimony during the trial established that the 260 pounds of methamphetamine, broken into user quantities, could have had more than 300,000 individual user amounts, with a potential street value of $7-$8 million.
Leon owned his own 18-wheel tractor-trailer and drove for California furniture shipping company American West. On March 30, 2015, while heading east on Interstate 40, Leon pulled over and parked illegally on an exit ramp in Lonoke. Now-retired Arkansas State Police Corporal Olen Craig made contact with Leon, and the state police then searched the trailer after a drug-detection dog indicated narcotics were present.
Arkansas State Police Corporal Chase Melder located the methamphetamine, which included more than 22 pounds of powder methamphetamine and more than 240 pounds of liquid methamphetamine, amongst a load of furniture destined for Alabama and the Atlanta area. The liquid methamphetamine was contained in multiple five-gallon plastic jugs, similar to the type of jugs used with water coolers.
"Stopping drug traffickers traveling across Arkansas highways is a priority for state troopers, particularly the department’s criminal interdiction unit," Bryant said. "This case represents a major victory in stopping illegal drugs from getting to a destination and our troopers are committed to staying in the fight."
The DEA became involved in the case following the seizure and continued to investigate Leon. In addition to the guilty verdict, the jury found that the 18-wheel tractor-trailer is to be forfeited.
"The federal conviction of Javier Leon sends a strong message to criminals that we take methamphetamine trafficking very seriously in the Eastern District of Arkansas," Barden said. "The DEA will continue working with our law enforcement partners and pursue those who threaten our communities with the distribution of methamphetamine and other illegal and dangerous drugs."
The statutory penalty for possession with intent to distribute more than 500 grams of methamphetamine is not less than 10 years’ imprisonment, not more than life, a $10,000,000 fine, or both.
The investigation was conducted by the DEA, Arkansas State Police, Little Rock Police Department, and Lonoke County Sheriff’s Office. The case was prosecuted by Assistant United States Attorneys Chris Givens and Michael Gordon.
Jamaican Man Sentenced for Conspiracy to Commit FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Corey Buddle, 25, of Brooklyn, NY, who was convicted of conspiracy to commit mail and wire fraud, was sentenced to 60 months by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that the defendant, along with co-conspirators from Jamaica, defrauded elderly individuals residing in the United States by leading the victims to believe they won cash prizes of more than $1,000,000 and, in at least one case, a Mercedes Benz automobile. The victims were told they must pay “taxes” and other administrative expenses in order to collect their “prizes.”
One victim, an elderly man from the Rochester, NY area, was told numerous times in phone calls to send packages of cash to the defendant’s address in Brooklyn, NY. As a result, between May 20 and July 18, 2011, he sent a total of $130,000 in 16 packages via UPS and the U.S. Mail to Buddle.Another victim, an elderly resident of Missouri, was directed to deposit money into Buddle’s accounts at Bank of America. As a result, she made 26 deposits adding up to approximately $140,000 into Buddle’s accounts from July 11, 2012, through April 4, 2013. After April 4, 2013, the victim from Missouri was directed to send cash to the defendant’s residence, which she did by sending more than $50,000 in 10 different packages sent via UPS and Federal Express. Some of the money deposited into Buddle’s Bank of America accounts was withdrawn in Jamaica.
A third elderly victim, who lives in Florida, lost $37,000 by wiring the money into Buddle’s bank accounts in nine separate transfers between August 2, 2012, and April 4, 2013. This victim received a letter in April 2012 purporting to be from the FBI and the Department of Homeland Security, telling him he was $25,000 in arrears on his taxes. None of the victims received anything as a result of their “winnings.”Buddle victimized a total of eleven (11) individuals out of approximately $428,000.
Co-defendant and Corey Buddle’s father, Horace, was also convicted and sentenced to one-year home incarceration for his role in the fraud scheme.
Today’s sentencing is the result of an investigation on the part of the United States Postal Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski of the Boston Division; and Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly.
Inmate Charged with Failing to Report to Halfway HouseRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dyckman Martinez, age 34, previously of York, Pennsylvania, was indicted on May 3, 2017, by a federal grand jury for failing to appear at a halfway house in Harrisburg for service of his sentence.
According to United States Attorney Bruce D. Brandler, the indictment alleges that in July 2014, Martinez was furloughed from the Federal Correctional Institution in Ottisville, New York, and instructed to report to the Residential Re-Entry Center at Capitol Pavilion in Harrisburg, Pennsylvania to complete his sentence. Martinez failed to appear at the residential center. As a result, federal authorities issued a warrant for his arrest.
In September 2014, Martinez was arrested in New York City on drug related charges. New York officials prosecuted Martinez and sentenced him for the crimes he committed while on escape. Martinez has remained in prison since serving a sentence.
In 2010, Martinez was convicted in the Middle District of Pennsylvania for crack cocaine trafficking in York, Pennsylvania. He was sentenced U.S. District Court Judge H. Sylvia Rambo to 70 months’ imprisonment for that offense.
The case was investigated by the U.S. Marshal Service. Assistant U.S. Attorney Michael Consiglio is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is five years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Independence Man Sentenced for Altercation with Federal OfficersRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was sentenced in federal court today for engaging in an altercation with federal law enforcement officers.
Jermaine Arrington, 33, of Independence, was sentenced by U.S. District Judge Brian C. Wimes to five years and 11 months in federal prison without parole for impeding or obstructing an officer. The court also sentenced Arrington to a consecutive two years in prison for violating his supervised release, for a total of seven years and 11 months in federal prison without parole.
Arrington pleaded guilty on Nov. 17, 2016. Arrington admitted that, while in custody, he lunged at a deputy marshal. Arrington was tackled by two deputies and taken to the ground. A deputy suffered injuries during the altercation, including a broken thumb.
Arrington was arrested on Jan. 8, 2016, for violating his supervised release after serving a six-year sentence in federal prison for being a felon in possession of a firearm. Upon arrival at the U.S. Marshals’ detention facility, Arrington’s handcuffs were removed so that he could be searched. Immediately after the handcuffs were removed, Arrington reached inside his shoe and grabbed a clear baggy containing marijuana. He stuffed the baggy into his mouth, began chewing it, and began yelling, “what now?” A deputy directed Arrington to spit the item from his mouth into the trash.
According to court documents, Arrington took a few steps towards the trash and then lunged at the deputy, while clinching his fist. Two deputies took Arrington to the ground, attempting to handcuff him, but he refused to release his hands from under his chest. One deputy struck Arrington in the side with his knee, while the second deputy attempted to remove Arrington’s arms from under his chest area. A third deputy arrived with handcuffs and, after a brief struggle, Arrington was handcuffed and leg restraints applied.
According to court documents, Arrington’s prior convictions include two misdemeanor convictions for aggravated assault, which involved assaulting an officer, and three misdemeanor convictions for simple assault. In addition, there are multiple occasions on record when Arrington resisted arrest, assaulted or hindered law enforcement officers performing their duties. During his arrest in the federal case for which he was under supervised release, Arrington ran from police officers and continued to resist arrest after being tased.
This case was prosecuted by Assistant U.S. Attorney Bruce E. Clark. It was investigated by the U.S. Marshal’s Service.
Hialeah Police Department Officer Pleads Guilty to Corruption and Identity Fraud ChargesRead the Press Release
Hialeah Police Department Officer Raul Castellon pled guilty today to corruption and identify fraud charges.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), and Peter Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, made the announcement.
Raul Castellon, 38, of the Hialeah Police Department, pled guilty to affecting commerce by extortion under color of official right, in violation of Title 18, United States Code, Section 1951(a), punishable by up to twenty years in prison. He also pled guilty to conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029(b)(2), aggravated identity theft, in violation of Title 18, United States Code, Section 1028A, and possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3). Castellon is scheduled to be sentenced before U.S. District Judge Moreno on July 18, at 10:45 a.m. in Miami.
According to the court record, including the agreed upon factual proffer, as an officer for the Hialeah Police Department and as part of his regular duties, Castellon had access to Florida’s Driver and Vehicle Information Database (“DAVID”). DAVID is a confidential database that provides law enforcement officers with the driver and motor vehicle information of other persons, including personal identifying information, such as drivers’ license numbers, social security numbers, and dates of birth.
From on or about June 1, 2016, and continuing through on or about October 19, 2016, Castellon used his law enforcement access to DAVID to log into the system, search for other persons, and take screen shots of other persons’ personal identifying information. Castellon sent over 25 of these DAVID screen shots to his codefendant Neilin Gonzalez Diaz in exchange for gifts.
Mr. Greenberg commended the investigative efforts of the FBI, including the Miami Area Corruption Task Force, ATF, Miami-Dade Police Department, and Hialeah Police Department. This case is being prosecuted by Assistant U.S. Attorneys Daniel Cervantes and Elina Rubin-Smith.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida atwww.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Harrison County man indicted for illegal possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Clarksburg, West Virginia man was arraigned today in federal court, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Casey Love, age 28, was indicted by a grand jury sitting in Elkins on April 18, 2017, for one count of “Unlawful Possession of a Firearm.” Love, having previously been convicted of second degree robbery in Harrison County Circuit Court and being a known user and addict of controlled substances, was alleged to have in his possession a 9mm pistol in Harrison County in November 2016.
Love faces up to ten years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bridgeport Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Guatemalan National Sentenced for Illegal ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that RUDY OTONIEL AZANON-RODAS, age 50, a citizen of Guatemala, was sentenced today after previously pleading guilty to a one-count Bill of Information for reentry of a removed alien.
U.S. District Judge Nannette Jolivette Brown sentenced AZANON-RODAS to 8 months imprisonment and a $100 special assessment. Following completion of his sentenced, AZANON-RODAS will be surrendered to the custody of the Immigration and Customs Enforcement for removal proceedings.
According to court documents, on or about December 29, 2016, AZANON RODAS was found in the United States after having been officially deported and removed on or about May 2, 1986.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement and the Office of Enforcement and Removal Operations Investigations in investigating this matter. Assistant U.S. Attorney Irene Gonzalez was in charge of the prosecution.
Gretna Woman Sentenced for Theft of Federal FundsRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DANIELLE RANDALL, 42, of Gretna, was sentenced today after previously pleading guilty to theft of federal funds.
U.S. District Judge Carl J. Barbier sentenced RANDALL to 15 months imprisonment followed by three years supervised release, and $100 special assessment. RANDALL was also ordered to pay full restitution to the Federal Emergency Management Agency (FEMA) in the amount of $10,953.
According to court documents, on or about August 29, 2012, Hurricane Isaac struck southeastern Louisiana and shortly thereafter, the Federal Emergency Management Agency (“FEMA”) declared a major disaster in parts of southeastern Louisiana, including the Eastern District of Louisiana. To assist individuals in coping with damage to their personal property and primary residences, FEMA established an application process for temporary disaster assistance. RANDALL submitted an application for Disaster Assistance for damage to her apartment and personal property. After she received an initial disbursement of approximately $3,000, RANDALL continued to apply for housing assistance while falsely representing her rental address and housing expenses. In total, RANDALL’s false submissions to FEMA allowed her received four U.S. Treasury checks totaling $10,953 to which she was not entitled.
Acting U.S. Attorney Evans praised the work of the Department of Homeland Security, Office of Inspector General in investigating this matter. Assistant U.S. Attorney Sharan E. Lieberman was in charge of the prosecution.
Grand Jury Indicts Sterling Man on Child Pornography ChargesRead the Press Release
ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging a Sterling man with receipt and possession of child pornography.
According to court records and allegations in the indictment, Anoushiravan Dadgar, 33, used a computer to receive photos and videos of minors engaging in sexually explicit conduct. Some of the videos Dadgar possessed depicted minors who appeared to be less than 10 years old and other prepubescent minors engaging in sexually explicit conduct.
Dadagar faces a mandatory minimum of five years in prison and a maximum penalty of 20 years in prison if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after the indictment was returned. Assistant U.S. Attorneys Nathaniel Smith III and Maya D. Song are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:17-cr-100.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Four Chinese Nationals Arrested and Charged in Connection with College Admissions Exam ScamRead the Press Release
BOSTON – Yue Wang, 25, Shikun Zhang, 24, Leyi Huang, 21, and Xiaomeng Cheng, 21, all in the United States on F-1 non-immigrant student visas, were arrested today on charges of conspiracies to defraud the United States.
The conspiracies involved Wang, a current student at the Hult International Business School in Cambridge, Mass., agreeing to sit for the TOEFL exam in the place of Zhang, Huang, and Cheng. The TOEFL exam is an English language test recognized by more than 9,000 colleges, universities, and agencies in more than 130 countries. It is also used by the United States government in issuing, extending, or renewing F-1 student visas.
After Wang took the TOEFL exam in her co-conspirators places, her scores were allegedly used by the co-conspirators to apply for admission to various universities in the United States. Zhang used this fraudulently acquired TOEFL score to gain admission to Northeastern University in Boston, Mass.; Huang fraudulently used the TOEFL score to gain admission to Penn State University in Erie, Pa.; and Cheng used the fraudulently acquired TOEFL score to gain admission to Arizona State University. In each case, the United States Department of State issued the student an F-1 non-immigrant student visa based on their admittance to these educational institutions.
“Illegal schemes to circumvent the TOEFL exam jeopardize both academic integrity and our country’s student visa program,” said William B. Weinreb, Acting U.S Attorney. “The TOEFL exam ensures that international students have adequate English language skills to succeed in higher education programs in the United States. It also helps maintain the security of our borders and immigration system. By effectively purchasing passing scores, they violated the rules and regulations of the exam, taking spots at US colleges and universities that could have gone to others.”
“These schemes not only undermine the integrity of the academic institutions, they also undermine our nation’s immigration system,” said Matthew Etre, Special Agent in Charge of HSI in Boston. “HSI will continue to protect the nation’s immigration system by working with our federal law enforcement partners and our partners in academia to ensure that those involved in these scams are held accountable.”
The charge of conspiracy to defraud the United States provides for a sentence of no greater than 5 years in prison, up to three years of supervised release and a fine of $250,000. The defendants are subject to deportation after conviction and serving any sentence imposed. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of the Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Nicholas Soivilien of Weinreb’s Major Crimes Unit is prosecuting the case.
Former Tennessee Sheriff Sentenced on Federal Corruption ChargesRead the Press Release
A former Rutherford County Sheriff was sentenced today to 50 months in prison for operating a private electronic cigarette company in the county jail for personal gain and the concealment and misrepresentation of their involvement with the business, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
Robert F. Arnold, 41, of Murfreesboro, Tennessee, was sentenced today by Senior U.S. District Judge Marvin E. Aspen of the Northern District of Illinois (sitting by designation in the Middle District of Tennessee) who also ordered Arnold to pay $52,500 in restitution and to forfeit $66,790, an amount equal to all proceeds he received from sales at the Rutherford County jail. Arnold previously pleaded guilty on Jan. 30, 2017 before Chief U.S. District Judge Kevin H. Sharp of the Middle District of Tennessee.
According to his plea, Arnold admitted to using his official position as Sheriff of Rutherford County to benefit JailCigs by allowing the company’s electronic cigarettes to come into the Rutherford County jail as non-contraband and be distributed by county employees; taking steps to disguise their involvement in the company; and misrepresenting the benefits that Rutherford County was supposedly receiving from JailCigs. Additionally, Arnold admitted that he personally received over $66,000 from the company, and that he lied about his income from – and knowledge of – JailCigs when he was confronted by local media in April 2015.
Co-defendants former Chief Administrative Deputy Joe L. Russell II, of Rutherford County, Tennessee, and John Vanderveer, of Marietta, Georgia, pleaded guilty on Jan. 20, 2017, and Jan. 30, 2017, respectively. Vanderveer is set to be sentenced on Sept. 6, 2017, and Russell is set to be sentenced on Sept. 8, 2017.
The FBI and Tennessee Bureau of Investigation investigated the case. Trial Attorney Mark J. Cipolletti of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Cecil W. VanDevender of the Middle District of Tennessee prosecuted the case.
Former Rutherford County Sheriff Sentenced on Federal Corruption ChargesRead the Press Release
Former Rutherford County Sheriff Robert Arnold, 41, of Murfreesboro, Tenn., was sentenced today to 50 months in prison, followed by 3 years of supervised release, after pleading guilty earlier this year to fraud and corruption charges, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.
Arnold was indicted in May 2016 and in January 2017, he pleaded guilty to wire fraud, honest services fraud and extortion under color of official right. These charges resulted from an investigation into his role in the formation and operation of the electronic cigarette company, JailCigs, LLC. In his plea, Arnold admitted to using his official position as Sheriff of Rutherford County to benefit JailCigs by allowing the company’s electronic cigarettes to come into the Rutherford County jail as non-contraband and be distributed by county employees; taking steps to disguise his involvement in the company; and misrepresenting the benefits that Rutherford County was supposedly receiving from JailCigs. Additionally, Arnold admitted that he personally received over $66,000 from the company, and that he lied about his income from, and knowledge of, JailCigs when he was confronted by local media in April 2015.
In addition to his prison sentence, Senior U.S. District Judge Marvin E. Aspen of the Northern District of Illinois (sitting by designation in the Middle District of Tennessee) ordered Arnold to pay $52,500 in restitution to Rutherford County and to forfeit $66,790, an amount equal to the commission payments he received from sales at the Rutherford County jail, plus the additional payments Arnold obtained that should have been paid to the county general fund. Judge Aspen also ordered Arnold to serve a three-year term of supervised release following his prison sentence.
Co-defendants, former Chief Administrative Deputy Joe L. Russell II, of Rutherford County, Tennessee, and John Vanderveer, of Marietta, Georgia, pleaded guilty on Jan. 20 and Jan. 30, respectively. Vanderveer is set to be sentenced on September 6, 2017 and Russell is set to be sentenced on September 8, 2017.
This case was prosecuted by Assistant U.S. Attorney Cecil W. VanDevender, of the Middle District of Tennessee and Trial Attorney Mark J. Cipolletti of the Criminal Division’s Public Integrity Section. The case was investigated by special agents from the FBI and Tennessee Bureau of Investigation.
Former Regions Bank Executive Agrees to Plead Guilty in $5 Million Bribery and Wire Fraud SchemeRead the Press Release
BIRMINGHAM – A former senior vice president at Regions Bank has agreed to plead guilty to conspiracy charges in a $5 million bribery and wire fraud scheme, announced Acting U.S. Attorney Robert O. Posey and FBI Special Agent in Charge Roger C. Stanton.
The U.S. Attorney’s Office on Wednesday filed a plea agreement in U.S. District Court with PHILIP HENRY COOPER, 67, of Birmingham. As part of the agreement, Cooper pledges to plead guilty to conspiracy to solicit and accept bribes for steering Regions’ business to a company established by a co-conspirator, and to conspiracy to launder the millions of dollars the conspirators received as part of the scheme.
Along with his two co-conspirators, Cooper agrees to repay Regions $5.1 million, according to the plea agreement. Cooper also agreed to forfeit approximately $1.5 million he received from the scheme.
Cooper was indicted last year along with Richard Alan Henderson, 57, of Hoover, on conspiracy, bank bribery, wire fraud affecting a financial institution and money laundering charges. Henderson, who also was a senior vice president at Regions, is scheduled for trial on those charges in June.
A third conspirator in the case, Jesse Stewart Ellis, 56, of Hoover, pleaded guilty last year to conspiracy to commit bank bribery and wire fraud, and money laundering conspiracy. He is scheduled for sentencing June 26.
Henderson and Cooper served as senior officers of Regions Bank. Through a wholly-owned subsidiary, Regions Equipment Financing Company, Regions Bank offered business customers various financing tools, including equipment financing and lease options. Henderson was first assigned to be finance manager of REFCO and was later promoted by Regions Bank to REFCO’s chief administrative officer. Cooper worked for Regions Bank as REFCO’s asset manager.
According to Cooper’s plea agreement, he and Henderson recruited Ellis to establish a company that would enter an agreement with REFCO to provide residual value insurance, a type of insurance designed to manage asset value risk and provide favorable accounting treatment on leases for Regions Bank. Ellis had no experience providing residual value insurance. The defendants directed REFCO’s residual value insurance business to Ellis’ new company, and Ellis, in return, split the money paid to him with Henderson and Cooper, according to the charges and Cooper’s plea agreement. Cooper and Henderson concealed from Regions that they were receiving money as a result of directing residual value insurance business to the company Ellis established.
Between Sept. 2010 and Nov. 2015, REFCO paid Ellis’ company, Residual Assurance Inc., about $5.1 million. Henderson received about $1.8 million as a result of the scheme and Cooper received about $1.5 million, according to Cooper’s plea agreement.
In 2014, after initially receiving his share of the bribery money in cash, Cooper established a company named Capital Equipment Appraisal Service to receive his payments, according to the plea agreement. After May 2014, Ellis deposited most of Cooper’s share of the bribery payments into a Wells Fargo Bank account Cooper opened for that company. Cooper also had a part of his share of the money deposited into an account at Merrill Lynch, according to the plea agreement.
The maximum penalty for conspiracy is five years in prison and a $250,000 fine. The maximum penalty for money laundering conspiracy is 20 years in prison and a fine of $500,000 or twice the value of the property involved in the transaction, whichever is greater. As part of the plea agreement, the government recommends a five-year prison sentence for Cooper.
The FBI investigated the case, which Assistant U.S. Attorneys George A. Martin Jr., Henry B. Cornelius, and John B. Ward are prosecuting.
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Former Orleans Criminal District Court Employee Sentenced for Role in Bail Bonds FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that PATRICIA TATE, age 52, of New Orleans, was sentenced today after previously pleading guilty today to a one-count Bill of Information charging her with conspiracy to commit honest services mail fraud.
U.S. District Judge Lance M. Africk sentenced TATE to three years probation, including 100 hours of unpaid community service, and a $100 special assessment.
According to court documents, TATE was employed by the Clerk of Orleans Parish Criminal District Court’s Office (“Clerk’s Office”) from 1993 through August 15, 2014, as a deputy clerk assigned to a division known as the Magistrate Clerk’s Office. During her employment as a deputy clerk, TATE became was aware that Rufus Johnson was operating as a bail bondsman out of an office located at 538 S. Broad Street in New Orleans without having the required license, and therefore could not legally run a bail bond business. TATE accepted cash payments from Johnson in exchange for facilitating the operation of Johnson’s illegal bail bonding business. TATE’s activities included accessing official-use criminal justice records, delivering pre-certified bail bonds to the bail business, and other activities to assist the business outside the scope of her official duties.
Acting U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter, and the assistance of the Metropolitan Crime Commission, the New Orleans Police Department, and the Orleans Parish District Attorney’s Office. Assistant U.S. Attorneys Michael B. Redmann and Mark A. Miller were in charge of the initial prosecution. Jordan Ginsberg, Harry W. McSherry, and Brittany Reed were in charge of sentencing-related proceedings and the trial of Rufus Johnson.
Former NHL Player Sentenced for Oxycodone ConspiracyRead the Press Release
BOSTON – A former NHL player was sentenced in federal court in Boston today for an oxycodone conspiracy.
Kevin Stevens, 52, of Weymouth, was sentenced by U.S. District Court Judge George A. O’Toole Jr. to three years of probation and ordered to pay a fine of $10,000. In December 2016, Stevens pleaded guilty to conspiracy to possess with intent to distribute and to distribute oxycodone. Co-defendant Christopher Alonardo pleaded guilty to the same charge as well as possession with intent to distribute oxycodone. He is scheduled to be sentenced on May 16, 2017.
From approximately August 2015 through March 2016 Stevens and Alonardo conspired to distribute oxycodone in southeastern Massachusetts and the Boston area. Stevens supplied wholesale quantities of oxycodone to Alonardo who resold the drugs. On Nov. 5, 2015, Stevens was stopped by the Massachusetts State Police and was found in possession of 175 30mg pills of oxycodone that were intended for redistribution.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The Internal Revenue Service’s Criminal Investigation, the Massachusetts Department of Correction, and the Boston, Medford and Quincy Police Departments provided assistance with the investigation. Assistant U.S. Attorney Timothy E. Moran of Weinreb’s Organized Crime and Gang Unit prosecuted the case.
Former Minister of Mines for the Republic of Guinea Convicted of Receiving and Laundering $8.5 Million in Bribes from Chinese CompaniesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Kenneth A. Blanco, the Acting Assistant Attorney General of the Department of Justice’s Criminal Division, announced that MAHMOUD THIAM was convicted in Manhattan federal court yesterday of money laundering charges stemming from his scheme to launder $8.5 million in bribes that THIAM received from senior representatives of a Chinese conglomerate. THIAM was charged with using his official position as Minister of Mines for the Republic of Guinea to facilitate the award to the Chinese conglomerate of exclusive and highly valuable investment rights in various sectors of the Guinean economy. THIAM was convicted after a seven-day trial before U.S. District Judge Denise L. Cote.
Acting Manhattan U.S. Attorney Joon H. Kim said: “As a New York federal jury has now found, Thiam abused his official government position to enrich himself at the expense of one of Africa’s poorest countries. Thiam laundered the proceeds of his bribery scheme into the United States to fund his lavish lifestyle, buying a multi-million dollar estate in Dutchess County, and paying for private schools for his children. Thanks to the work of the FBI, Thiam’s scheme was exposed and he was swiftly convicted.”
Acting Assistant Attorney General Kenneth A. Blanco said: “As a high-level Minister in Guinea, Thiam sold out his country and then used U.S. banks and real estate to hide millions in bribes paid to him by a Chinese conglomerate. Corruption is a global disease that undermines the rule of law everywhere. The Justice Department is committed to investigating and prosecuting those who commit these crimes and use the U.S. financial system and free marketplace to conceal and benefit from their crimes.”
According to the Indictment, other filings in Manhattan federal court, and the evidence admitted at trial:
THIAM, a United States citizen who was Minister of Mines and Geology of the Republic of Guinea in 2009 and 2010, engaged in a scheme to accept bribes from senior representatives of a Chinese conglomerate and to launder that money into the United States and elsewhere. In exchange for these multimillion-dollar bribe payments, THIAM used his position as Minister of Mines to facilitate the award to the Chinese conglomerate of exclusive and highly valuable investment rights in a wide range of sectors of the Guinean economy, including near-total control of Guinea’s significant mining sector.
In order to receive the bribes covertly, THIAM opened a bank account in Hong Kong (the “Hong Kong Account”) and misreported his occupation to the Hong Kong bank to conceal his status as a public official in Guinea. Upon receiving the bribes, THIAM transferred millions of dollars in bribe proceeds from the Hong Kong Account to, among others, THIAM’s bank accounts in the United States; a Malaysian company that facilitated and concealed THIAM’s purchase of a $3,750,000 estate in Dutchess County, New York; private preparatory schools in Manhattan attended by THIAM’s children; and at least one other West African public official.
To further conceal the unlawful source of the bribery proceeds that THIAM transferred from the Hong Kong Account to banks in the United States, THIAM lied to two banks based in Manhattan and on tax returns filed with the Internal Revenue Service regarding the bribe payments, his position as a foreign public official, and the source of the funds in the Hong Kong Account. In total, THIAM received approximately $8.5 million in bribes from the Chinese conglomerate.
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THIAM, 50, of Manhattan, was convicted of one count of transacting in criminally derived property, which carries a maximum sentence of 10 years in prison, and one count of money laundering, which carries a maximum sentence of 20 years in prison. THIAM is scheduled to be sentenced before Judge Cote on August 11, 2017, at 10:00 a.m.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter. The Office is grateful to the government of Guinea for providing substantial assistance in gathering evidence during this investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Elisha J. Kobre and Christopher J. Dimase and Trial Attorney Lorinda I. Laryea of the Fraud Section of the Justice Department’s Criminal Division are in charge of the prosecution.
Former Military Sealift Command Contractor Charged with Bribery and FraudRead the Press Release
A former contractor at the Military Sealift Command (MSC) was indicted for his role in a bribery and fraud conspiracy from approximately 1999 to 2014, in which he allegedly received almost $3 million dollars in bribes. Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Dana J. Boente of the Eastern District of Virginia made the announcement.
Scott B. Miserendino Sr., 58, formerly of Stafford, Virginia, was charged in a five-count indictment with one count of conspiracy to commit bribery and honest services mail fraud, one count of bribery and three counts of honest services mail fraud. Miserendino’s arraignment will be scheduled at a later date.
According to allegations in the indictment, Miserendino was a government contractor at MSC, an entity of the U.S. Department of the Navy that provided support and specialized services to the Navy and other U.S. military forces. The indictment alleges that Miserendino and Joseph P. Allen, the owner of a government contracting company, conspired to use Miserendino’s position at MSC to enrich themselves through bribery.
Specifically, beginning in 1999, Miserendino allegedly used his position and influence at MSC to assist Allen and his company in obtaining and expanding a commission agreement with a telecommunications company, which sold maritime satellite services to MSC, according to the indictment. For more than a decade, Miserendino allegedly used his influence at MSC to take official acts to benefit the telecommunications company, which through the commission agreement, also benefited Allen and his company. Among his actions, the indictment alleges that Miserendino: advised officials at MSC and on their ships about using the telecommunications company’s services; authorized Allen and his employees to perform services on MSC ships and ensure that the equipment on those ships defaulted to the telecommunications company’s services rather than that of an alternative provider; and facilitated payment to the telecommunications company for the services it rendered to MSC. Unknown to MSC or the telecommunications company, throughout the scheme, Allen paid half of the commissions he received from the telecommunications company to Miserendino as bribes, according to allegations in the indictment.
For his role in the scheme, Allen, 56, of Panama City, Florida, pleaded guilty to one count of conspiracy to commit bribery on April 19, 2017, before U.S. Magistrate Judge Lawrence R. Leonard, in Norfolk, Virginia. Sentencing is scheduled for July 28, 2017, before U.S. District Judge Arenda L. Wright Allen, in Norfolk.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The Norfolk offices of the FBI, the Defense Criminal Investigative Service and the Naval Criminal Investigative Service investigated the case. Trial Attorneys Sean F. Mulryne and Molly Gaston of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Stephen W. Haynie of the Eastern District of Virginia are prosecuting the case.
Former Military Sealift Command Contractor Charged with BriberyRead the Press Release
NORFOLK, Va. – A federal grand jury returned an indictment today charging a former contractor at the Military Sealift Command for his role in a bribery and fraud conspiracy through which he received nearly $3 million in bribes.
According to the indictment, Scott Miserendino, Sr., 58, of Stafford, was charged in a five-count indictment with one count of conspiracy to commit bribery and honest services mail fraud, one count of bribery, and three counts of honest services mail fraud.
According to the indictment, Miserendino was a government contractor at MSC, an entity of the U.S. Department of the Navy that provided support and specialized services to the Navy and other U.S. military forces. The indictment alleges that Miserendino and Joseph P. Allen, the owner of a government contracting company, conspired to use Miserendino’s position at MSC to enrich themselves through bribery. Specifically, beginning in 1999, Miserendino allegedly used his position and influence at MSC to assist Allen and his company in obtaining and expanding a commission agreement with a telecommunications company, which sold maritime satellite services to MSC, according to the indictment. For more than a decade, Miserendino allegedly used his influence at MSC to take official acts to benefit the telecommunications company, which through the commission agreement, also benefited Allen and his company. Among his actions, the indictment alleges that Miserendino: advised officials at MSC and on their ships about using the telecommunications company’s services; authorized Allen and his employees to perform services on MSC ships and ensure that the equipment on those ships defaulted to the telecommunications company’s services rather than that of an alternative provider; and facilitated payment to the telecommunications company for the services it rendered to MSC.
Unknown to MSC or the telecommunications company throughout the scheme, Allen paid half of the commission payments from the telecommunications company to Miserendino as bribes. In total, between approximately 1999 and approximately 2014, Allen received more than $6 million from the telecommunications company, and in turn, he paid more than $2.8 million to Miserendino in bribes.
For his role the scheme, Allen, 56, from Panama City, Florida, pleaded guilty to one count of conspiracy to commit bribery on April 19, and is scheduled for sentencing on July 28.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Kenneth Blanco, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Robert Craig, Special Agent in Charge for Defense Criminal Investigative Service Mid-Atlantic Field Office; and Maureen Evans, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after the indictment was returned. Assistant U.S. Attorney Stephen W. Haynie, and Trial Attorneys Sean F. Mulryne and Molly Gaston of the Criminal Division’s Public Integrity Section are prosecuting the case.
The FBI’s Norfolk Field Office, the Defense Criminal Investigative Service and the Naval Criminal Investigative Service investigated the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Former Hopkinton Ethanol Plant Executive Charged with Fraud, Aggravated Identity Theft, and Money LaunderingRead the Press Release
Darrell Smith, age 61, from Forest City, Iowa, has been charged with mail fraud, wire fraud, money laundering, and aggravated identity theft. The charges are contained in a Complaint filed last month in United States District Court in Cedar Rapids. The Complaint follows Smith’s conviction and 13-month prison sentence imposed late last year for payroll tax fraud.
The Complaint alleges Smith was a broker and adviser for several investment firms. After one of the firms allowed Smith to resign in March 2012, a number of customer disputes were filed against Smith alleging misrepresentation, conversion, and purchase of investments without authorization. In 2013, Smith consented to having his securities agent license and insurance producer license in the State of Iowa revoked.
The Complaint specifically alleges that Smith solicited funds from many of his investment clients to be invested in Permeate Refining, LLC, which operated a now-defunct ethanol plant in Hopkinton, Iowa, by having funds transferred to what is now known as Energae, LP. Smith was one of the original general partners of Energae, which was formed in 2008 to invest in different bio-energy companies. Many of Smith’s clients agreed to make such investments, while others did not. The Complaint further alleges that, on a number of occasions, Smith nevertheless caused money to be transferred or checks to be issued via wire and/or mail from his clients’ investment accounts without their knowledge or authorization. Smith deposited the funds in accounts he controlled through Energae and then used those funds for the operation of Permeate and for other purposes. Smith either used pre-signed, blank authorization forms or forged his clients’ signatures without their authority. The Complaint details allegations concerning three of Smith’s clients in 2012 and 2013—an Alaska resident, a Forest City clergyman, and a trust created for a retired veterinarian from Mississippi.
If convicted on all charges, Smith faces a mandatory minimum sentence of two years’ imprisonment, a possible maximum sentence of 72 years’ imprisonment, a $1.25 million fine, $500 in special assessments, and 15 years of supervised release following imprisonment.
Smith appeared on May 1, 2017 in federal court in Cedar Rapids and was held without bond. On May 3, 2017, United States District Judge Linda R. Reade ordered Smith detained pending further proceedings. In a written order, Judge Reade found Smith was “a serious risk” to “obstruct justice or attempt to obstruct justice.” The Court noted that, while on pretrial release in last year’s payroll tax fraud case, Smith had violated a no-contact order, made misrepresentations to the Court, and distributed a report to prospective investors that contained several misrepresentations. The report was a so-called private placement memorandum advertising the sale of as much as $20 million in purported federal tax credits arising out of Permeate Refining, LLC—even though the Hopkinton plant was defunct since 2013—but under the name “Texas Energy and Water, Inc.” and allegedly pursuant to a “Cooperative Research and Development Agreement” with the United States Department of Agriculture. Last year, a USDA official from Ames, Iowa, testified at one of Smith’s detention hearings that a document bearing USDA letterhead that Smith had filed in federal district court was forged, and testimony at this week’s detention hearing revealed that the official had repeatedly instructed Smith to stop using his signature without the USDA official’s permission. The Court found Smith was a continued “financial danger” to the community.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Federal Bureau of Investigation, the United States Postal Service Inspection Service, Internal Revenue Service-Criminal Investigation, and the United States Department of Agriculture, Office of Inspector General.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-mj-111.
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Former Guinean Minister of Mines Convicted of Receiving and Laundering $8.5 Million in Bribes from China International Fund and China SonangolRead the Press Release
A former Minister of Mines and Geology of the Republic of Guinea, has been convicted by a federal jury for his role in a scheme to launder bribes paid to him by executives of China Sonangol International Ltd. (China Sonangol) and China International Fund, SA (CIF). The jury reached its verdict yesterday after five hours of deliberations, following a seven-day trial.
Acting Assistant Attorney General Kenneth Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Joon Kim for the Southern District of New York, Assistant Director Stephen Richardson of the FBI’s Criminal Investigative Division and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office announced the conviction.
Mahmoud Thiam, 50, of New York, was convicted of one count of transacting in criminally derived property and one count of money laundering. According to the charges, the funds that were laundered were proceeds derived through violations of Guinean bribery laws.
“As a high-level Minister in Guinea, Thiam sold out his country and then used U.S. banks and real estate to hide millions in bribes paid to him by a Chinese conglomerate,” said Acting Assistant Attorney General Blanco. “Corruption is a global disease that undermines the rule of law everywhere. The Justice Department is committed to investigating and prosecuting those who commit these crimes and use the U.S. financial system and free marketplace to conceal and benefit from their crimes.”
“As a New York federal jury has now found, Thiam abused his official government position to enrich himself at the expense of one of Africa’s poorest countries,” said Acting U.S. Attorney Kim. “Thiam laundered the proceeds of his bribery scheme into the United States to fund his lavish lifestyle, buying a multi-million dollar estate in Dutchess County, and paying for private schools for his children. Thanks to the work of the FBI, Thiam’s scheme was exposed and he was swiftly convicted.”
“This conviction showcases the FBI’s commitment to combatting corruption domestically and abroad,” said Assistant Director Stephen Richardson. “Thiam’s misuse of his official position for personal gain violated federal law and the trust of the Guinean people. I applaud the excellent work that our employees put into this case and thank all of our partners who helped bring Thiam to justice.”
“The conviction of Thiam demonstrates that no one who violates public office is above the law when they are involved in corruption,” said Assistant Director in Charge Sweeney. “The FBI’s International Corruption Squads were established to take on foreign corruption cases like this that use money laundering and lies to deceive the trust in public office.”
According to evidence presented at trial, China Sonangol, CIF and their subsidiaries signed a series of agreements with Guinea that gave them lucrative mining rights in Guinea, and Thiam influenced the Guinean government’s decision to enter into those agreements while serving as Guinea’s Minister of Mines and Geology from 2009 to 2010.
The evidence showed that Thiam participated in a scheme to launder money from 2009 to 2011, during which time China Sonangol and CIF paid him $8,500,000 to a bank account in Hong Kong. Thiam then transferred approximately $3,900,000 to the United States through bank accounts and other means, and used the money to pay for luxury goods and other expenses, according to trial evidence. To conceal the bribe payments, Thiam falsely claimed to banks in Hong Kong and the United States that he was employed as a consultant and that the money was income from the sale of land which he earned before he was a minister, according to the evidence.
The purpose of the bribes, according to the evidence presented at trial, was to obtain substantial rights and interests in natural resources in Guinea, including the right to be the first and strategic shareholder with Guinea of a national mining company into which Guinea had to, among other things, transfer all of its stakes in various mining projects and future mining permits or concessions that the government decided to develop on its own. China Sonangol and CIF, through their subsidiaries, also obtained exclusive and valuable rights to conduct business operations in a broad range of sectors of the Guinean economy, including mining, according to the trial evidence.
Thiam was detained pending trial and is still in the custody of the U.S. Marshals. Sentencing is scheduled for Aug. 11, 2017.
Trial Attorney Lorinda Laryea of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Elisha Kobre and Christopher DiMase of the Southern District of New York are prosecuting the case. Fraud Section Assistant Chief Tarek Helou, Senior Trial Attorney Jason Linder, Trial Attorney Sarah Edwards, and Money Laundering and Asset Recovery Section Senior Trial Attorney Stephen Parker and Trial Attorney Alexis Loeb previously investigated the case. The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter. The department is grateful to the government of Guinea for providing substantial assistance in gathering evidence during this investigation. The department also thanks Israel and Switzerland for their assistance in the department’s investigation.
The FBI’s International Corruption Squads in New York City and Los Angeles are investigating the case. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
To learn more about the government’s FCPA enforcement efforts, go to www.justice.gov/criminal/fraud/fcpa.
Former Chief Accounting Officer Pleads Guilty in Million Dollar Fraud SchemeRead the Press Release
Memphis, TN – The former Chief Accounting Officer for a Memphis business conglomerate has pleaded guilty to mail fraud. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.
According to the criminal information filed by the United States Attorney’s Office, Jim Tyson Jenkins, 46, also known as Ty Jenkins, was the Chief Accounting Officer for Blake Enterprises, LLC, a local business conglomerate affiliated with several other businesses including Reliable Finance Company, Inc.
In connection to his guilty plea, Jenkins admitted that between 2011 through March 2017, he defrauded Blake Enterprises and Reliable Finance of approximately $1.1 million by authorizing loans against the cash values of life insurance policies. The policies were issued by Voya Financial and were owned by the Reliable Finance Company retirement plan. In addition to his duties as Chief Accounting Officer, Jenkins was the retirement plan administrator.
According to information presented in court, Jenkins contacted Voya and requested loans against the policies. Voya mailed loan proceeds checks to Reliable. Jenkins deposited the checks to Reliable Finance accounts at First Tennessee Bank or InSouth Bank. Jenkins, who was authorized to transact business on the accounts, thereafter stole the funds by writing checks payable to himself, depositing them to his personal account at Regions Bank and using the funds for his personal benefit.
Jenkins faces a maximum penalty of 20 years’ imprisonment, $250,000 fine and 3 years supervised release. The defendant is scheduled to be sentenced on July 28, 2017, by U.S. District Judge John T. Fowlkes, Jr.
The case was investigated by the United States Postal Inspection Service. Assistant U.S. Attorney Carroll L. Andre III is prosecuting this case on the government’s behalf.
Former Cay Clubs Chief Financial Officer Sentenced to 40 Years in Prison for Conspiracy, Bank Fraud and Tax OffensesRead the Press Release
The former Chief Financial Officer of Cay Clubs Resorts and Marinas (Cay Clubs) was sentenced to 40 years in prison, after having been previously convicted by a federal jury of conspiracy, bank fraud, and tax offenses.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Timothy Mowery, Special Agent in Charge, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), made the announcement.
David W. Schwarz, 60, of Orlando, was convicted at trial on March 3, 2017 of conspiracy to commit bank fraud, in violation of Title18 ,United States Code, Section 1349, two counts of bank fraud, in violation of Title 18, United States Code, Section1344, and one count of interference with the administration of the IRS, in violation of Title 26, United States Code, Section 7212(a). Chief U.S. District Judge K. Michael Moore, sitting in Key West, sentenced Schwarz to 40 years in prison. Judge Moore found that the criminal conduct resulted in $303 million in fraudulent proceeds and approximately $170 million in victim losses. A restitution hearing has been set for July 10, 2017, in Key West.
According to evidence at trial, Schwarz was the Vice President and Chief Financial Officer (CFO) of Cay Clubs, which operated purported luxury resorts in the Florida Keys, Clearwater, Orlando, Las Vegas, and elsewhere. Between 2004 and 2008, Cay Clubs grew to more than 1,000 employees and became one of the largest employers in the Florida Keys. Schwarz, who was the one-third owner, and Fred Davis Clark, Jr., a/k/a Dave Clark, who was the two-thirds owner, began Cay Clubs in 2004 with fraudulent sales of Cay Clubs units to insiders, using money from Cay Clubs bank accounts to fund the cash to close for purchases, while obtaining mortgage financing from lending institutions. These fraudulent sales were used in marketing materials to falsely show demand for Cay Clubs units and to inflate prices, as Cay Clubs was in reality purchasing units from itself. Proceeds of these sales were diverted to Schwarz and Clark.
Trial evidence established that Cay Clubs raised more than $300 million from approximately 1,400 investors, who purchased units in Cay Clubs developments. Schwarz and Clark failed to remodel the dilapidated properties as they promised investors, while taking millions of dollars out of the company for their own benefit. During the operation of Cay Clubs from 2004 through 2008, Schwarz and Clark diverted more than $30 million in proceeds for themselves, including millions of dollars in cash transfers that were used to purchase property and other businesses, including a gold mine, a rum distillery, aircraft, and a coal reclamation business.
Trial evidence further showed that as Cay Clubs faced dwindling sales due to its failure to upgrade the dilapidated properties in 2006, Schwarz, Clark, and others engaged in additional fraudulent sales of Cay Clubs units to insiders, including Clark’s family members. These mortgage loans were used to prevent Cay Clubs from defaulting on commercial debts. The documents used to obtain these mortgages included falsified signatures and notary attestations, and had Cay Clubs acting as the seller while Schwarz provided the cash to close so that mortgage loans could be obtained to fund the sales.
During the course of this scheme, Schwarz and Clark did not file any corporate tax return for $74 million in income generated by the Cay Clubs entities. Furthermore, neither Schwarz or Clark filed any individual tax return for these years until after an investigation of Cay Clubs by the U.S. Securities and Exchange Commission (SEC). In 2010 and 2011, Schwarz filed false individual tax returns for tax years 2004, 2005 and 2006, respectively, in which he substantially underreported his income for these tax years and concealed his receipt of millions of dollars in proceeds.
On December 11, 2015, Dave Clark, 59, formerly a resident of Tavernier, was convicted by a federal jury in connection with related bank fraud charges and obstruction of the SEC. He was sentenced on February 21, 2016, to 40 years in prison by U.S. District Judge Jose E. Martinez. Former Cay Clubs sales executives Barry Graham, 59, and Ricky Lynn Stokes, 54, both formerly of Ft. Myers, previously pled guilty to conspiracy to commit bank fraud in related cases and were sentenced to 60 months, and 30 months, respectively.
Mr. Greenberg commended the investigative efforts of the IRS-CI and FHFA-OIG, and the extensive assistance of the SEC’s Miami Regional Office. This matter was prosecuted by Assistant U.S. Attorneys Jerrob Duffy, James V. Hayes, and Alison Lehr.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Attorney Convicted of Mail FraudRead the Press Release
HAMMOND-Acting United States Attorney for the Northern District of Indiana, Clifford D. Johnson, announced that Robert E. Stochel, age 64, of Crown Point, Indiana was convicted of mail fraud, after a three-day jury trial before District Court Senior Judge Rudy Lozano.
According to documents filed in this case, Stochel, a local attorney, and former Tip Top Supermarket receiver was convicted on a charge of mail fraud relating to a scheme he operated from 2001 to June 2012 against the Tip Top Receivership estate. In his capacity as receiver, Stochel stole hundreds of thousands of dollars from the receivership and then attempted to hide that theft from not only the court that appointed him receiver but also from the receivership’s beneficiaries.
This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorneys Diane Berkowitz, Alexandra McTague and Maria Lerner.
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Federal jury finds Sulphur company bookkeeper guilty of stealing more than $4 millionRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a federal jury found a former bookkeeper for a Sulphur oil field company guilty of stealing more than $4 million while working there.
Elizabeth Istre, 51, of Sulphur, La., was found guilty of three counts of wire fraud. After the conclusion of the four-day trial, the jury deliberated for approximately one hour before delivering the guilty verdict before U.S. District Judge Donald E. Walter who presided over the trial. According to the evidence presented, Istre worked as a bookkeeper for a family-owned petroleum company in Sulphur, La. From 2004 through January of 2014, Istre issued fraudulent checks payable to herself and her husband from the company’s corporate bank account. During that time, she issued more than 800 checks totaling more than $4 million and used the money for personal expenses.
Istre began writing fraudulent checks payable to herself not long after being hired in 2004. She started writing the checks in small amounts but then increased the amount. By 2011, she was writing fraudulent checks for half a million dollars a year. She was the only person to use the business’ software, and she provided the financial statements directly to the company’s accountant. Because of fluctuations in the oil and gas industry, Istre was able to conceal the stolen funds. She bought several vehicles, took numerous trips, paid bills, bought property, paid family members’ expenses, withdrew cash and made other transactions with the stolen funds.
Istre faces up to 20 years in prison, five years of supervised release, restitution and a $250,000 fine for each count. Istre was detained pending sentencing. The court did not set a sentencing date.
The U.S. Secret Service investigated the case. Assistant U.S. Attorneys Kelly P. Uebinger and Dominic A. Rossetti are prosecuting the case.
Federal Prisoner and his Fiancée Indicted for running an Inmate Taxi ServiceRead the Press Release
ATLANTA – Federal inmate Deldrick D. Jackson and Kelly M. Bass have been arraigned on charges of conspiring to assist inmates to escape from the U.S. Penitentiary in Atlanta and for escaping and assisting in the escape from prison.
“Jackson and Bass allegedly ran a scheme that resulted in inmates escaping from Atlanta’s federal prison camp into the community,” said U. S. Attorney John Horn. “Inmates who escape from custody present a threat to the safety of the citizens in the area. Safety concerns also arise when inmates return with contraband to feed a thriving black market.”
“The federal indictment of both federal inmate Jackson and his girlfriend Kelly Bass not only illustrates very clearly the problems at the federal camp of the U.S. Penitentiary Atlanta but also the efforts underway by the FBI, working with the Atlanta Police and its other law enforcement partners, to remedy the matter. Federal inmates walking away from federal detention facilities is escape, plain and simple, and the federal indictment of these two reflects this,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
“The Atlanta Police Department’s number one priority is the safety of our communities. The department is always willing to cooperate with other agencies to reduce the threat to neighborhoods that escaped inmates present. U.S. Attorney John Horn and his staff deserve a lot of credit and thanks for making these types of cases a top priority and sending a message that any prison escapes will be prosecuted and result in additional charges,” said Atlanta Police Chief Erika Shields.
According to U.S. Attorney Horn, the charges, and other information presented in court: the United States Penitentiary in Atlanta (“USP Atlanta”) also operates a satellite prison camp for minimum-security male inmates. In May 2010, Jackson was convicted of conspiring to distribute cocaine and conspiring to launder money. From July 2016 to April 2017, Jackson was assigned to the USP Atlanta minimum security camp. According to prison visitation records, Jackson listed Bass as his fiancée.
The indictment alleges that from approximately November 2016 to April 2017, Jackson and Bass conspired to provide inmates who escaped from USP Atlanta’s camp with transportation in exchange for a fee. For example, on January 28, 2017, Bass allegedly picked up Jackson and other escaped inmates from outside USP Atlanta, drove them to a nearby hotel, and hours later, returned Jackson and the other inmates to USP Atlanta. Financial records show that Bass received approximately $4,000 from accounts associated with USP Atlanta inmates or the inmates’ families during this six-month period.
On April 13, 2017, Jackson allegedly escaped from USP Atlanta’s camp again, after which Bass picked him up and drove him away from the prison. Law enforcement officers then stopped Bass’s SUV and arrested Bass and Jackson. After searching the SUV, officers recovered two cell phones, a box filled with packs of cigarettes, and several bottles of alcohol, which is consistent with contraband that is smuggled back into the prison.
On April 25, 2017, a federal grand jury indicted Deldrick D. Jackson, 41, of DeKalb County, Georgia, and Kelly M. Bass, 38, also of DeKalb County, on conspiratorial and substantive escape charges.
This case is being investigated by the Federal Bureau of Investigation and Atlanta Police Department.
Assistant U.S. Attorneys Jeffrey W. Davis and Timothy H. Lee are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Eight-Time Felon Indicted on Federal Firearms ChargRead the Press Release
Erwin Keith Bell, age 36, from Clinton, Iowa, has been charged with one count of Felon in Possession of a Firearm. The charge is contained in an Indictment filed yesterday in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about February 4, 2017, Bell knowingly possessed a .22 magnum caliber revolver after eight prior felony convictions in Iowa and Illinois for, among other things, possession of controlled substances with the intent to deliver, firearms trafficking, extortion, and burglary. In an affidavit filed last month in the case, it was alleged that an officer with the Mount Vernon Police Department conducted a traffic stop on a car in which Bell was seated in the front passenger seat after sunset on February 4, 2017. During the course of the traffic stop, Bell assaulted the officer by striking him after the officer saw a marijuana pipe between Bell’s legs. Bell then fled on foot, and the officer pursued him. After the officer caught him, Bell continued to assault the officer, punching and kicking him in the face. Bell removed the officer’s baton and struck the officer with the baton in an attempt to gain access to the officer’s taser. Bell was eventually placed under arrest. During a search of the car, police located drug paraphernalia, baggies, a scale, marijuana, and cocaine.
If convicted, Bell faces up to life in prison, a $250,000 fine, a $100 special assessment, and five years of supervised release following any imprisonment.
Bell appeared on April 14, 2017 in federal court in Davenport and was held without bond. Bell’s next appearance in Cedar Rapids is set for May 9, 2017, at 3:00 p.m.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the Federal Bureau of Investigation, the Mount Vernon Police Department, the Lisbon Police Department, the Linn County Sheriff’s Office, the Mechanicsville Police Department, the Iowa State Patrol, the Clinton Police Department, the Davenport Police Department, the Eldridge Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 17-mj-65 and 17-cr-27.
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