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Thursday 16 March 2017
Al Qaeda Operative Convicted of Multiple Terrorism Offenses Targeting Americans OverseasRead the Press Release
Today, a jury returned its verdict convicting al Qaeda operative Ibrahim Suleiman Adnan Adam Harun, 46, of multiple terrorism offenses including conspiracy to murder American military personnel in Afghanistan and conspiracy to bomb the U.S. embassy in Nigeria. Harun traveled to Afghanistan in the weeks before Sept. 11, 2001 where he joined al Qaeda, trained at al Qaeda training camps and participated in attacks on U.S. and Coalition troops in Afghanistan in which two American service members were killed and others were seriously wounded in 2003. Harun also received training in explosives from an al Qaeda weapons expert and traveled from Pakistan to Nigeria intending to attack U.S. government facilities there.
The guilty verdict was announced by Acting Assistant Attorney General Mary B. McCord for National Security, Acting U.S. Attorney Bridget M. Rohde for the Eastern District of New York, Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office and Commissioner James P. O’Neill of the NYPD.
“Harun is an al Qaeda operative who targeted U.S. personnel and diplomatic facilities across two continents. The evidence presented at trial established that the defendant and other jihadists attacked a U.S. military patrol in Afghanistan, resulting in the death of two American soldiers and the serious injury of others. Today’s guilty verdict ensures that the defendant will be held accountable for his acts of terrorism,” said Acting Assistant Attorney General McCord. “I want to thank the many agents, analysts, and prosecutors whose hard work and dedication made this result possible.”
“As demonstrated by this case, the United States will be tireless in its efforts to hold al-Qaeda members accountable when they target American citizens serving their country abroad. We are firmly committed to bringing such terrorists to justice,” said Acting U.S. Attorney Rohde. Ms. Rohde expressed her grateful appreciation to the Department of Defense Army investigators, the Office of Military Commissions, the Italian Ministry of Justice, the Prosecutor’s Office in Palermo, Italy, the Italian National Police, Guardia di Finanza and Carabinieri authorities for their support and assistance.
“We hope the verdict today shows the public the FBI New York JTTF and our law enforcement partners are still arresting, charging and trying operatives for al-Qaeda 15 years after 9/11 because we won’t give up the obligation to bring terrorists to justice,” said FBI Assistant Director in Charge Sweeney. “It should also prove to anyone who wishes to harm our country, we will not stop, and we will never forget.”
“Al Qaeda operative Ibrahim Suleiman Adnan Adam Harun pledged allegiance to a known terrorist organization, conspiring to kill coalition soldiers in Afghanistan and even bomb a U.S. embassy in Nigeria,” said Commissioner O’Neill. “Today’s conviction holds the defendant responsible for the terror he waged overseas. I am thankful to the detectives, agents, and more than 50 partner agencies on the Joint Terrorism Task Force here in Manhattan and to the prosecutors in the Eastern District of New York who continue bring rigorous terrorism cases in federal court.”
Harun, also known as “Spin Ghul,” “Abu Tamim,” “Esbin Gol,” “Isbungoul,” “Joseph Johnson” and “Mortala Mohamed Adam,” was convicted on all five counts presented to the jury, which include conspiracy to murder U.S. nationals; conspiracy to bomb a government facility; conspiracy to provide material support to a foreign terrorist organization, al Qaeda; providing and attempting to provide material support to al Qaeda; and use of explosives in connection with terrorist activities.
During the two-week trial, the government established that Harun, purportedly a citizen of Niger, traveled from Saudi Arabia to Afghanistan in late summer of 2001 to join a jihadist group. There, he moved into an al Qaeda guesthouse – a registration center for new al Qaeda recruits – where he was living on Sept. 11, 2001. Immediately after the September 11 terrorist attacks, al Qaeda military leaders sent Harun to training camps in Afghanistan, in anticipation of an American invasion. At these camps, he learned how to use weapons and explosives, met top al Qaeda leaders and received his “kunya” (nom de guerre) “Spin Ghul,” meaning the, “White Rose.” Harun then traveled to Waziristan in the Federally Administered Tribal Areas region of Pakistan, where he operated under Abdul Hadi al-Iraqi, one of bin Laden’s deputies who was al Qaeda’s top military commander in Afghanistan at that time.
On April 25, 2003, Harun and fellow al Qaeda jihadists ambushed a U.S. military patrol from Firebase Shkin. Harun fired machinegun rounds and threw grenades at American soldiers while shouting “Allahu Akhbar” or “God is Great.” Two U.S. servicemen were killed in the attack, Private First Class Jerod Dennis, 19, of Oklahoma, and Airman First Class Raymond Losano, 24, of Texas. Several other soldiers were seriously wounded. Harun was also wounded but escaped to Pakistan. A pocket-sized Koran recovered at the scene contained Harun’s fingerprints and a journal describing the attacks contained Harun’s alias.
While recovering from his wounds in Pakistan, Harun met with senior al Qaeda officials – including Abu Faraj al-Libi (Abu Faraj), then al Qaeda’s external operations chief – and expressed his desire to engage in acts of terror against U.S. interests outside of Afghanistan, specifically attacks similar to 1998 al Qaeda bombings of the U.S. embassies in Kenya and Tanzania. Harun also swore “bayat” – or formal allegiance – to bin Laden through bin Laden’s military commander Abdul Hadi.
In summer of 2003, Harun traveled from Pakistan to Nigeria, where he planned to bomb the U.S. Embassy. He recruited accomplices, scouted the Embassy and other potential Western targets, and sent an accomplice to find explosives. He also met with local terrorist leaders to build up al Qaeda’s network in West Africa.
In 2004, Harun directed a co-conspirator to travel from Nigeria to deliver information and materials to al Qaeda leaders in Pakistan. After learning that the co-conspirator had been arrested in Pakistan, Harun fled Nigeria. At approximately the same time, the FBI obtained a hard drive containing a letter written from Harun’s al Qaeda handler to Harun, providing him with detailed instructions on how to attack Americans in Nigeria. The letter specifically instructed Harun to target Americans – whom he described as “the head of the snake” – at “locations where Americans congregate,” such as embassies, hotels and “places where they gather for fun.” The al Qaeda handler also instructed Harun to obtain one ton of explosives for the bombing operation in Nigeria.
Harun then traveled to Libya where he planned to surreptitiously enter Europe to carry out terrorist attacks against Western interests. In early 2005, however, he was arrested by Libyan authorities and held in custody until his release in June 2011. Subsequently, Harun was arrested on June 24, 2011 by Italian authorities.
Harun was indicted in the U.S. on Feb. 21, 2012, and the Italian Minister of Justice ordered his extradition on Sept. 14, 2012 to face the charges pending in the Eastern District of New York.
When sentenced by U.S. District Judge Brian M. Cogan on June 22, Harun faces a maximum sentence of life in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The government’s case is being prosecuted by Assistant U.S. Attorneys Shreve Ariail, Melody Wells and Matthew J. Jacobs of the Eastern District of New York, and Trial Attorney Joseph N. Kaster of the National Security Division’s Counterterrorism Section.
Al Qaeda Operative Convicted of Multiple Terrorism Offenses Targeting Americans OverseasRead the Press Release
Earlier today in United States District Court in Brooklyn, a jury returned its verdict convicting al-Qaeda operative Ibrahim Suleiman Adnan Adam Harun of multiple terrorism offenses including conspiracy to murder American military personnel in Afghanistan and conspiracy to bomb the U.S. Embassy in Nigeria. Harun traveled to Afghanistan in the weeks before September 11, 2001 where he joined al-Qaeda, trained at al-Qaeda training camps, and in 2003 participated in attacks on U.S. and Coalition troops in Afghanistan in which two American service members were killed and others were seriously wounded. Harun also received training in explosives from an al-Qaeda weapons expert and traveled from Pakistan to Nigeria intending to attack U.S. government facilities there.
The guilty verdict was announced by Bridget M. Rohde, Acting U.S. Attorney for the Eastern District of New York, Mary B. McCord, Acting Assistant Attorney General for National Security, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) and James O’Neill, Commissioner, New York City Police Department.
“As demonstrated by this case, the United States will be tireless in its efforts to hold al-Qaeda members accountable when they target American citizens serving their country abroad. We are firmly committed to bringing such terrorists to justice,” said Acting U.S. Attorney Rohde. Ms. Rohde expressed her grateful appreciation to the Department of Defense Army investigators, the Office of Military Commissions, the Italian Ministry of Justice, the Prosecutor’s Office in Palermo, Italy, the Italian National Police, Guardia di Finanza and Carabinieri authorities for their support and assistance.
“Harun is an al-Qaeda operative who targeted U.S. personnel and diplomatic facilities across two continents. The evidence presented at trial established that the defendant and other jihadists attacked a U.S. military patrol in Afghanistan, resulting in the death of two American soldiers and the serious injury of others. Today’s guilty verdict ensures that the defendant will be held accountable for his acts of terrorism,” said Acting Assistant Attorney General McCord. “I want to thank the many agents, analysts, and prosecutors whose hard work and dedication made this result possible.”
“We hope the verdict today shows the public the FBI New York JTTF and our law enforcement partners are still arresting, charging and trying operatives for al-Qaeda 15 years after 9/11 because we won’t give up the obligation to bring terrorists to justice. It should also prove to anyone who wishes to harm our country, we will not stop, and we will never forget,” said FBI Assistant Director-in-Charge Sweeney.
“Al-Qaeda operative Ibrahim Suleiman Adnan Adam Harun pledged allegiance to a known terrorist organization, conspiring to kill coalition soldiers in Afghanistan and even bomb a U.S. embassy in Nigeria,” said Police Commissioner O’Neill. “Today’s conviction holds the defendant responsible for the terror he waged overseas. I am thankful to the detectives, agents, and more than 50 partner agencies on the Joint Terrorism Task Force here in Manhattan and to the prosecutors in the Eastern District of New York who continue to bring rigorous terrorism cases in federal court.”
Harun, also known as “Spin Ghul,” was convicted of all five counts presented to the jury, which included conspiracy to murder U.S. nationals; conspiracy to bomb a U.S. government facility; conspiracy to provide material support to a foreign terrorist organization, al-Qaeda; providing and attempting to provide material support to al-Qaeda; and use of explosives in connection with a felony offense.
During the two-week trial, the government established that Harun, purportedly a citizen of Niger, traveled from Saudi Arabia to Afghanistan in late summer of 2001 to join a jihadist group. There, he moved into an al-Qaeda guesthouse – a registration center for new al-Qaeda recruits – where he was living on September 11, 2001. Immediately after the September 11 terrorist attacks, al-Qaeda military leaders sent Harun to training camps in Afghanistan, in anticipation of an American invasion. At these camps, he learned how to use weapons and explosives, and met top al-Qaeda leaders. Harun then traveled to Waziristan in the FATA region of Pakistan, where he operated under Abdul Hadi al-Iraqi, one of bin Laden’s deputies who was a senior al-Qaeda’s military commander at that time.
On April 25, 2003, Harun and fellow al-Qaeda jihadists ambushed a U.S. military patrol from Firebase Shkin. Harun fired machinegun rounds and threw grenades at American soldiers while shouting “Allahu Akhbar” or “God is Great.” Two U.S. servicemen were killed in the attack, Private First Class Jerod Dennis, 19, of Oklahoma, and Airman First Class Raymond Losano, 24, of Texas. Several other soldiers were seriously wounded. Harun was also wounded but escaped to Pakistan. A Koran recovered at the scene contained Harun’s fingerprints and a journal describing the attacks contained Harun’s alias.
While recovering from his wounds in Pakistan, Harun met with senior al-Qaeda officials – including Abu Faraj al-Libi (“Abu Faraj”), then al-Qaeda’s external operations chief. Harun expressed the desire to engage in acts of terror against U.S. interests outside Afghanistan, specifically attacks similar to the 1998 al-Qaeda bombings of the U.S. embassies in Kenya and Tanzania. Harun also swore “bayat” – or formal allegiance – to bin Laden through bin Laden’s military commander Abdul Hadi al Iraqi.
In the summer of 2003, Harun traveled from Pakistan to Nigeria, where he planned to bomb the U.S. Embassy in Abuja, Nigeria. He recruited accomplices, scouted the Embassy and other potential Western targets, and sent an accomplice to find explosives. He also met with local terrorist leaders to build-up al-Qaeda’s network in West Africa.
In 2004, Harun directed a co-conspirator to travel from Nigeria to deliver information and materials to al-Qaeda leaders in Pakistan. After learning that the co-conspirator had been arrested in Pakistan, Harun fled Nigeria. At approximately the same time, the FBI obtained a hard drive containing a letter written from Harun’s al-Qaeda handler to Harun, providing him detailed instructions regarding how to attack Americans in Nigeria. The letter specifically instructed Harun to target Americans – whom he described as “the head of the snake” – at “locations where Americans congregate,” such as embassies, hotels and “places where they gather for fun.” The al-Qaeda handler also instructed Harun to obtain one ton of explosives for the bombing operation in Nigeria.
Harun then traveled to Libya from where he planned to surreptitiously enter Europe to carry out terrorist attacks against Western interests. In early 2005, however, he was arrested by Libyan authorities and held in custody until his release in June 2011. Subsequently, Harun was arrested on June 24, 2011 by Italian authorities.
Harun was indicted in the United States on February 21, 2012, and the Italian Minister of Justice ordered his extradition on September 14, 2012 to face the charges pending in the Eastern District of New York.
When sentenced by U.S. District Judge Brian M. Cogan on June 22, 2017, Harun faces a maximum sentence of life in prison.The government’s case is being prosecuted by the Office’s National Security & Cybercrime Section. Assistant U.S. Attorneys Shreve Ariail, Melody Wells and Matthew J. Jacobs of the United States Attorney’s Office for the Eastern District of New York, along with Joseph N. Kaster, Trial Attorney, Counterterrorism Section of the Justice Department’s National Security Division, are in charge of the prosecution.
The Defendant:
IBRAHIM SULEIMAN ADNAN ADAM HARUN
Age: 46E.D.N.Y. Docket No. 12-CR-134
Acting U.S. Attorney and IRS Special Agent in Charge Present Equitable Sharing Funds from Township 37 Marijuana Grow Case to Maine Law Enforcement PartnersRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
(207) 780-3257
Bangor, Maine: Acting United States Attorney Richard W. Murphy and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, announced the distribution of more than $1.1 million of criminally forfeited funds to eight Maine law enforcement agencies for their participation in the successful federal prosecution of Malcolm French and Haynes Timberland, Inc. Pursuant to the U.S. Department of the Treasury’s Equitable Sharing Program, the funds have been distributed to the Maine Drug Enforcement Agency; the Maine State Police; the Maine Warden Service; the Washington County Sheriff; and the Brewer, Biddeford, Scarborough and Gorham police departments.The prosecution arose out of the September 22, 2009 seizure of 2,943 marijuana plants in Township 37, Washington County. On January 24, 2014, following a jury trial, French was convicted of conspiracy to manufacture over 1000 marijuana plants, manufacturing over 1,000 marijuana plants, managing and controlling property used to manufacture marijuana, and harboring illegal aliens. His business, Haynes Timberland, Inc., was found guilty of managing and controlling property used to manufacture marijuana.
On February 10, 2016, Haynes Timberland was sentenced to pay a $100,000 fine. On April 21, 2016, French was sentenced to 175 months in prison, five years of supervised release and a fine of $100,000. Haynes Timberland and French were also ordered to forfeit $1,550,000, a warehouse compound in Township 31, and a hunting camp in LaGrange that facilitated drug trafficking. The funds shared today were from the forfeiture of the $1,550,000.
Acting U.S. Attorney Joon H. Kim Statement on the Investigation into City Hall FundraisingRead the Press Release
“In response to allegations of misconduct, this Office, along with the FBI, has been investigating fundraising by and on behalf of Mayor Bill de Blasio for his 2013 election campaign, the Campaign for One New York, and the 2014 State Senate effort. We have conducted a thorough investigation into several circumstances in which Mayor de Blasio and others acting on his behalf solicited donations from individuals who sought official favors from the City, after which the Mayor made or directed inquiries to relevant City agencies on behalf of those donors. In considering whether to charge individuals with serious public corruption crimes, we take into account, among other things, the high burden of proof, the clarity of existing law, any recent changes in the law, and the particular difficulty in proving criminal intent in corruption schemes where there is no evidence of personal profit. After careful deliberation, given the totality of the circumstances here and absent additional evidence, we do not intend to bring federal criminal charges against the Mayor or those acting on his behalf relating to the fundraising efforts in question. Although it is rare that we issue a public statement about the status of an investigation, we believe it appropriate in this case at this time, in order not to unduly influence the upcoming campaign and Mayoral election.”
Acting U.S. Attorney AppointedRead the Press Release
BATON ROUGE, LA – Corey R. Amundson has been appointed as the Acting United States Attorney for the Middle District of Louisiana following the resignation of Walt Green who had served as the United States Attorney since 2014.
Acting U.S. Attorney Amundson stated: “I am deeply honored and humbled to lead an office of outstanding career professionals through this period of transition. Our office has a long history of commitment and dedication to the cause of justice that will be steadfastly maintained and honored on my watch. Crime has not stopped and neither will we. Our aggressive pursuit of criminals and our efforts to resolve pending matters will continue without pause. I look forward to continuing to work with our excellent federal, state, and local law enforcement partners and the communities we serve.”
Mr. Amundson has been a federal prosecutor in the Middle District of Louisiana for the past 15 years. He previously served as First Assistant United States Attorney (2014‐ 2017), Chief of the Criminal Division (2013‐2017), Senior Deputy Criminal Chief (2010‐ 2013), Deputy Criminal Chief in charge of the white collar crime section and the healthcare fraud strike force (2007‐2010), and line prosecutor in the white collar crime section and the violent crimes and narcotics section (2002‐2007). He has prosecuted more than 100 individuals and corporations, handling many significant and complex prosecutions and trials involving virtually all areas of federal criminal law.
Mr. Amundson frequently serves as an instructor for federal prosecutors and law enforcement agents at the U.S. Department of Justice’s National Advocacy Center and the
U.S. Department of Homeland Security’s Federal Law Enforcement Training Center. He is also an Adjunct Professor at the Louisiana State University Law Center, where he teaches a course entitled Corporate and White Collar Crime.
Before becoming a prosecutor, Mr. Amundson practiced at the law firm of King & Spalding LLP in its Washington, D.C. office, where he was assigned to the Special Matters and Government Investigations Group led by former U.S. Attorney General Griffin Bell. He also served for two years as a judicial law clerk for U.S. District Judge Sarah Evans Barker in Indianapolis. Mr. Amundson received his J.D. from Emory University and his B.A. from Indiana University.
65-Year Old Repeat Bank Robber Sentenced to 130 Months in Federal PrisonRead the Press Release
MEDFORD, Ore. – On Thursday, March 16, 2017, U.S. District Judge Michael J. McShane sentenced Gerald Thomas Schram, 65, of Medford, to 130 months in prison for bank robbery and interference with commerce by robbery. Following his prison sentence, Schram will be on supervised release for three years. Schram was also ordered to pay $9,177 in restitution.
On January 20, 2014, Schram robbed a Minute Market in Medford, Oregon. Wearing a mask and hooded sweatshirt, Schram shouted at the clerks and threatened to pull a gun while reaching for his waistband. Schram fled the scene with $605.
On September 29, 2014, Schram robbed a U.S. Bank in Medford, Oregon, fleeing on a bicycle with $8,572. The same day, he was found hiding in his girlfriend’s home with most of the stolen money. Schram was arrested and, based in part on DNA found at the Minute Market, charged in federal court with both robberies.
Following a jury trial on September 27, 2016, Schram was convicted of the Minute Market robbery. He later pleaded guilty to the U.S. Bank robbery. Schram has seven prior felony convictions in California and Oregon between 1970 and 2014. He has served two prior federal prison sentences of 170 and 37 months for separate bank robbery and robbery convictions.
This case was investigated by the Medford Police Department and the FBI’s Medford Resident Agency Office and prosecuted by Jeffrey Sweet, Assistant United States Attorney for the District of Oregon.
Wednesday 15 March 2017
Woman Sentenced in Robbery ConspiracyRead the Press Release
St. Croix, USVI B Senior District Court Judge Raymond Finch on March 14, 2017, sentenced, Ketisha Iles, 25, to 70 months in prison for conspiracy to interfere and interference with commerce by robbery, Acting United States Attorney Joycelyn Hewlett announced. Judge Finch also sentenced Iles to three years of supervised release and a special monetary assessment of $200.
On March 6, 2015, after a five-day trial, a federal jury on St. Croix convicted Iles of conspiracy to interfere with commerce by robbery and interference with commerce by robbery. Evidence presented at trial established that on June 17, 2013, after Iles was buzzed into Perfection Jewelry Store, she held the door open for three masked gunmen to enter. Once in the store, one of the gunmen hit an employee several times with a gun. Another gunman stood at the door while the others broke the display case and stole approximately $100,000 worth of 14-carat gold jewelry. The evidence also showed that Iles knew of the robbery before it happened and agreed to hold the door open for the gunmen.
This case was investigated by the Virgin Islands Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rhonda Williams-Henry.
Woman Found Guilty of Mail Fraud, Using Fire to Commit Mail Fraud, and Money Laundering in Connection with 2013 House Fire in MartelleRead the Press Release
A woman who participated in a scheme to submit a fraudulent insurance claim when her boyfriend intentionally set fire to his vacant house was convicted by a jury today after a three-day trial in federal court in Cedar Rapids.
Beth Galloway, age 42, from Camanche, Iowa, and formerly of Olin, was convicted of one count of mail fraud, one count of using fire to commit mail fraud, and one count of conspiracy to commit money laundering. The jury returned the verdicts this afternoon following about two hours of jury deliberations.
The evidence at trial showed that, between Spring 2013 and Spring 2014, Galloway and her boyfriend, James Plower, made up and participated in a scheme to defraud Plower’s insurance company. The evidence showed that Galloway, as part of the scheme, twice drove a minor to Plower’s vacant home in Martelle, Iowa, to attempt to set fire to the home, but that both attempts failed. Further evidence showed that Plower then deliberately set fire to his vacant home and then submitted an insurance claim in which he falsely claimed the fire was accidental. As a result of the fraudulent insurance claim, the insurance company mailed Plower a check for $66,497.46. Evidence also showed that Galloway and Plower agreed to launder the proceeds from the fraudulent insurance claim in February and March of 2014 when, after learning that law enforcement was investigating the cause of the fire, the two agreed to take $10,000 of the proceeds from Plower’s bank account. They then gave the $10,000 to a friend to hold for them to prevent law enforcement from seizing the money.
Plower had previously pled guilty to charges of mail fraud and use of fire to commit mail fraud. He also had previously been sentenced to 13 years’ in federal prison.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Galloway remains free on conditions of release pending sentencing. Galloway faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of 50 years’ imprisonment, a $750,000 fine, $300 in special assessments, and nine years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Ravi Narayan and Tony Morfitt and was investigated by the Iowa Division of Criminal Investigation, the United States Postal Inspection Service, the Iowa State Fire Marshal Division, and the Jones County Sheriff’s Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-68.
Follow us on Twitter @USAO_NDIA.
Virginia Man Charged with Robbing Two New Jersey BanksRead the Press Release
CAMDEN, N.J. – A Virginia man appeared in federal court today to face charges that he robbed a TD Bank in Ocean City, New Jersey, and a Wells Fargo Bank in Atlantic City, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Bruce Wayne Higgins, 43, of Herndon, Virginia, is charged by complaint with two counts of bank robbery. Higgins appeared this afternoon before U.S. Magistrate Judge Karen M. Williams in Camden federal court and was detained.
According to the complaint:
On Dec. 15, 2016, a man entered a TD Bank in Ocean City and presented a teller with a note that read: “GUN IN Pocket, MONEY NOW or –BANG-.” He then took cash from the teller and fled on foot. Afterwards, law enforcement officers issued a bulletin with a bank surveillance photograph. The robber was later identified as Higgins.
On Dec. 16, 2017, a man fitting Higgins’s description walked into a TD Bank in Atlantic City. After recognizing Higgins from the police bulletin, a bank employee triggered the bank’s “hold-up” alarm, and Higgins left the bank and got into a taxicab. Officers from the Atlantic City Police Department (ACPD) arrived at the TD Bank and, following up on information provided by witnesses, issued a bulletin describing the taxicab’s number and direction of travel.
Having received the bulletin describing the taxicab, another ACPD officer located the taxicab near a Wells Fargo Bank in Atlantic City while Higgins was allegedly in the process of robbing that bank. Higgins entered the Wells Fargo Bank and presented a teller with a note that read, “Gun in Pocket, Money Now or Bang now.” After Higgins took the money and fled the bank, ACPD officers arrested him.
Higgins had been detained at the Atlantic County Jail on state charges relating to the bank robberies.
Each bank robbery count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Ocean City Police Department, under the direction of Chief Chad Callahan; the Atlantic City Police Department, under the direction of Chief Henry White; the Cape May County Prosecutor’s Office, under the direction of Prosecutor Robert L. Taylor; and the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon Tyner, with the investigation.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office in Camden.
Defense Counsel: Lori Koch Esq., Assistant Federal Public Defender, Camden
United States Attorney's Office Names Eric Day as New Public Information OfficerRead the Press Release
Steven Butler, Acting United States Attorney for the Southern District of Alabama, announces today that Eric Day, who also serves as the Victim Witness Coordinator for the United States Attorney’s Office, will now serve as the office’s Public Information Officer.
Eric was born and raised in Mobile, and graduated from Toulminville High School in 1971. After serving in the U.S. Army, he received his Bachelors of Arts Degree in Criminal Justice Administration and his Masters of Education in Counseling from the University of South Alabama.
Eric started his Criminal Justice career working for the Alabama State Department of Pardons and Parole in 1975, and stayed until he was employed by the Mobile County Sheriff’s Office in 1977. While there, he served as a Deputy Sheriff, Corrections Officer, Assistant Warden of the Mobile County Jail, Assistant Planning Officer, Director of the Victim Witness Program, Evaluator and Director of the Mobile County Work Release Program.
In May of 1988, Eric was hired by the United States Department of Justice, U.S. Attorney’s Office for the Southern District of Alabama, as the Law Enforcement /Victim Witness Coordinator.
We are honored to have Eric Day serve in the capacity, and request that all media inquiries be directed to Eric Day, who can be reached at [email protected] and 251-415-7120.
U.S. Charges Russian FSB Officers and Their Criminal Conspirators for Hacking Yahoo and Millions of Email AccountsRead the Press Release
A grand jury in the Northern District of California has indicted four defendants, including two officers of the Russian Federal Security Service (FSB), for computer hacking, economic espionage and other criminal offenses in connection with a conspiracy, beginning in January 2014, to access Yahoo’s network and the contents of webmail accounts. The defendants are Dmitry Aleksandrovich Dokuchaev, 33, a Russian national and resident; Igor Anatolyevich Sushchin, 43, a Russian national and resident; Alexsey Alexseyevich Belan, aka “Magg,” 29, a Russian national and resident; and Karim Baratov, aka “Kay,” “Karim Taloverov” and “Karim Akehmet Tokbergenov,” 22, a Canadian national and a resident of Canada.
The defendants used unauthorized access to Yahoo’s systems to steal information from about at least 500 million Yahoo accounts and then used some of that stolen information to obtain unauthorized access to the contents of accounts at Yahoo, Google and other webmail providers, including accounts of Russian journalists, U.S. and Russian government officials and private-sector employees of financial, transportation and other companies. One of the defendants also exploited his access to Yahoo’s network for his personal financial gain, by searching Yahoo user communications for credit card and gift card account numbers, redirecting a subset of Yahoo search engine web traffic so he could make commissions and enabling the theft of the contacts of at least 30 million Yahoo accounts to facilitate a spam campaign.
The charges were announced by Attorney General Jeff Sessions of the U.S. Department of Justice, Director James Comey of the FBI, Acting Assistant Attorney General for National Security Mary McCord, U.S. Attorney Brian Stretch for the Northern District of California and Executive Assistant Director Paul Abbate of the FBI’s Criminal, Cyber, Response and Services Branch.
“Cyber crime poses a significant threat to our nation’s security and prosperity, and this is one of the largest data breaches in history,” said Attorney General Sessions. “But thanks to the tireless efforts of U.S. prosecutors and investigators, as well as our Canadian partners, today we have identified four individuals, including two Russian FSB officers, responsible for unauthorized access to millions of users’ accounts. The United States will vigorously investigate and prosecute the people behind such attacks to the fullest extent of the law.”
“Today we continue to pierce the veil of anonymity surrounding cyber crimes,” said Director Comey. “We are shrinking the world to ensure that cyber criminals think twice before targeting U.S. persons and interests.”
“ The criminal conduct at issue, carried out and otherwise facilitated by officers from an FSB unit that serves as the FBI’s point of contact in Moscow on cybercrime matters, is beyond the pale,” said Acting Assistant Attorney General McCord. “Once again, the Department and the FBI have demonstrated that hackers around the world can and will be exposed and held accountable. State actors may be using common criminals to access the data they want, but the indictment shows that our companies do not have to stand alone against this threat. We commend Yahoo and Google for their sustained and invaluable cooperation in the investigation aimed at obtaining justice for, and protecting the privacy of their users.”
“This is a highly complicated investigation of a very complex threat. It underscores the value of early, proactive engagement and cooperation between the private sector and the government,” said Executive Assistant Director Abbate. “The FBI will continue to work relentlessly with our private sector and international partners to identify those who conduct cyber-attacks against our citizens and our nation, expose them and hold them accountable under the law, no matter where they attempt to hide.”
“Silicon Valley’s computer infrastructure provides the means by which people around the world communicate with each other in their business and personal lives. The privacy and security of those communications must be governed by the rule of law, not by the whim of criminal hackers and those who employ them. People rightly expect that their communications through Silicon Valley internet providers will remain private, unless lawful authority provides otherwise. We will not tolerate unauthorized and illegal intrusions into the Silicon Valley computer infrastructure upon which both private citizens and the global economy rely,” said U.S. Attorney Stretch. “Working closely with Yahoo and Google, Department of Justice lawyers and the FBI were able to identify and expose the hackers responsible for the conduct described today, without unduly intruding into the privacy of the accounts that were stolen. We commend Yahoo and Google for providing exemplary cooperation while zealously protecting their users’ privacy.”
Summary of Allegations
According to the allegations of the Indictment:
The FSB officer defendants, Dmitry Dokuchaev and Igor Sushchin, protected, directed, facilitated and paid criminal hackers to collect information through computer intrusions in the U.S. and elsewhere. In the present case, they worked with co-defendants Alexsey Belan and Karim Baratov to obtain access to the email accounts of thousands of individuals.
Belan had been publicly indicted in September 2012 and June 2013 and was named one of FBI’s Cyber Most Wanted criminals in November 2013. An Interpol Red Notice seeking his immediate detention has been lodged (including with Russia) since July 26, 2013. Belan was arrested in a European country on a request from the U.S. in June 2013, but he was able to escape to Russia before he could be extradited.
Instead of acting on the U.S. government’s Red Notice and detaining Belan after his return, Dokuchaev and Sushchin subsequently used him to gain unauthorized access to Yahoo’s network. In or around November and December 2014, Belan stole a copy of at least a portion of Yahoo’s User Database (UDB), a Yahoo trade secret that contained, among other data, subscriber information including users’ names, recovery email accounts, phone numbers and certain information required to manually create, or “mint,” account authentication web browser “cookies” for more than 500 million Yahoo accounts.
Belan also obtained unauthorized access on behalf of the FSB conspirators to Yahoo’s Account Management Tool (AMT), which was a proprietary means by which Yahoo made and logged changes to user accounts. Belan, Dokuchaev and Sushchin then used the stolen UDB copy and AMT access to locate Yahoo email accounts of interest and to mint cookies for those accounts, enabling the co-conspirators to access at least 6,500 such accounts without authorization.
Some victim accounts were of predictable interest to the FSB, a foreign intelligence and law enforcement service, such as personal accounts belonging to Russian journalists; Russian and U.S. government officials; employees of a prominent Russian cybersecurity company; and numerous employees of other providers whose networks the conspirators sought to exploit. However, other personal accounts belonged to employees of commercial entities, such as a Russian investment banking firm, a French transportation company, U.S. financial services and private equity firms, a Swiss bitcoin wallet and banking firm and a U.S. airline.
During the conspiracy, the FSB officers facilitated Belan’s other criminal activities, by providing him with sensitive FSB law enforcement and intelligence information that would have helped him avoid detection by U.S. and other law enforcement agencies outside Russia, including information regarding FSB investigations of computer hacking and FSB techniques for identifying criminal hackers. Additionally, while working with his FSB conspirators to compromise Yahoo’s network and its users, Belan used his access to steal financial information such as gift card and credit card numbers from webmail accounts; to gain access to more than 30 million accounts whose contacts were then stolen to facilitate a spam campaign; and to earn commissions from fraudulently redirecting a subset of Yahoo’s search engine traffic.
When Dokuchaev and Sushchin learned that a target of interest had accounts at webmail providers other than Yahoo, including through information obtained as part of the Yahoo intrusion, they tasked their co-conspirator, Baratov, a resident of Canada, with obtaining unauthorized access to more than 80 accounts in exchange for commissions. On March 7, the Department of Justice submitted a provisional arrest warrant to Canadian law enforcement authorities, requesting Baratov’s arrest. On March 14, Baratov was arrested in Canada and the matter is now pending with the Canadian authorities.
An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
The FBI, led by the San Francisco Field Office, conducted the investigation that resulted in the charges announced today. The case is being prosecuted by the U.S. Department of Justice National Security Division’s Counterintelligence and Export Control Section and the U.S. Attorney’s Office for the Northern District of California, with support from the Justice Department’s Office of International Affairs.
Defendants: At all times relevant to the charges, the Indictment alleges as follows:
-
- Dmitry Aleksandrovich Dokuchaev, 33, was an officer in the FSB Center for Information Security, aka “Center 18.” Dokuchaev was a Russian national and resident.
-
- Igor Anatolyevich Sushchin, 43, was an FSB officer, a superior to Dokuchaev within the FSB, and a Russian national and resident. Sushchin was embedded as a purported employee and Head of Information Security at a Russian investment bank.
-
- Alexsey Alexseyevich Belan, aka “Magg,” 29, was born in Latvia and is a Russian national and resident. U.S. Federal grand juries have indicted Belan twice before, in 2012 and 2013, for computer fraud and abuse, access device fraud and aggravated identity theft involving three U.S.-based e-commerce companies and the FBI placed Belan on its “Cyber Most Wanted” list. Belan is currently the subject of a pending “Red Notice” requesting that Interpol member nations (including Russia) arrest him pending extradition. Belan was also one of two criminal hackers named by President Barack Obama on Dec. 29, 2016, pursuant to Executive Order 13694, as a Specially Designated National subject to sanctions.
-
- Karim Baratov, aka “Kay,” “Karim Taloverov” and “Karim Akehmet Tokbergenov,” 22. He is a Canadian national and a resident of Canada.
Victims: Yahoo; more than 500 million Yahoo accounts for which account information about was stolen by the defendants; more than 30 million Yahoo accounts for which account contents were accessed without authorization to facilitate a spam campaign; and at least 18 additional users at other webmail providers whose accounts were accessed without authorization.
Time Period: As alleged in the Indictment, the conspiracy began at least as early as 2014 and, even though the conspirators lost their access to Yahoo’s networks in September 2016, they continued to utilize information stolen from the intrusion up to and including at least December 2016.
Crimes:
Count(s)
Defendant(s)
Charge
Statute 18 U.S.C.
Conduct
Maximum Penalty
1
All
Conspiring to commit computer fraud and abuse
§ 1030(b)
Defendants conspired to hack into the computers of Yahoo and accounts maintained by Yahoo, Google and other providers to steal information from them.
First, Belan gained access to Yahoo’s servers and stole information that allowed him, Dokuchaev, and Sushchin to gain unauthorized access to individual Yahoo user accounts.
Then, Dokuchaev and Sushchin tasked Baratov with gaining access to individual user accounts at Google and other Providers (but not Yahoo) and paid Baratov for providing them with the account passwords. In some instances, Dokuchaev and Sushchin tasked Baratov with targeting accounts that they learned of through access to Yahoo’s UDB and AMT (e.g., Gmail accounts that served as a Yahoo user’s secondary account).
10 years
2
Dokuchaev
Sushchin
Belan
Conspiring to engage in economic espionage
§ 1831(a)(5)
Starting on Nov. 4, 2014, Belan stole, and the defendants thereafter transferred, received and possessed the following Yahoo trade secrets:
- the Yahoo UDB, which was proprietary and confidential Yahoo technology and information, including subscriber names, secondary accounts, phone numbers, challenge questions and answers;
- the AMT, Yahoo’s interface to the UDB; and
- Yahoo’s cookie “minting” source code, which enabled the defendants to manufacture account cookies to then gain access to individual Yahoo user accounts.
15 years
3
Dokuchaev
Sushchin
Belan
Conspiring to engage in theft of trade secrets
§ 1832(a)(5)
See Count 2
10 years
4-6
Dokuchaev
Sushchin
Belan
Economic espionage
§§ 1831(a)(1), (a)(4), and 2
See Count 2
15 years (each count)
7-9
Dokuchaev
Sushchin
Belan
Theft of trade secrets
§§ 1832(a)(1), and 2
See Count 2
10 years (each count)
10
Dokuchaev
Sushchin
Belan
Conspiring to commit wire fraud
§ 1349
The defendants fraudulently schemed to gain unauthorized access to Yahoo’s network through compromised Yahoo employee accounts and then used the Yahoo trade secrets to gain unauthorized access to valuable non-public information in individual Yahoo user accounts.
20 years
11-13
Dokuchaev
Sushchin
Belan
Accessing (or attempting to access) a computer without authorization to obtain information for the purpose of commercial advantage and private financial gain.
§§ 1030(a)(2)(C), 1030(c)(2)(B)(i)-(iii), and 2
The defendants gained unauthorized access to Yahoo’s corporate network and obtained information regarding Yahoo’s network architecture and the UDB.
5 years
(each count)
14-17
Dokuchaev
Sushchin
Belan
Transmitting code with the intent to cause damage to computers.
§§ 1030(a)(5)(A), 1030(c)(4)(B), and 2
During the course of their unauthorized access to Yahoo’s network, the defendants transmitted code on Yahoo’s network in order to maintain a persistent presence, to redirect Yahoo search engine users and to mint cookies for individual Yahoo accounts.
10 years (each count)
18-24
Dokuchaev
Sushchin
Belan
Accessing (or attempting to access) a computer without authorization to obtain information for the purpose of commercial advantage and private financial gain.
§§ 1030(a)(2)(C), 1030(c)(2)(B)(i)-(iii), and 2
Defendants obtained unauthorized access to individual Yahoo user accounts.
5 years
(each count)
25-36
Dokuchaev
Sushchin
Belan
Counterfeit access device fraud
§§ 1029(a)(1), 1029(b)(1), and 2
Defendants used minted cookies to gain unauthorized access to individual Yahoo user accounts.
10 years (each count)
37
Dokuchaev
Sushchin
Belan
Counterfeit access device making equipment
§§ 1029(a)(4)
Defendants used software to mint cookies for unauthorized access to individual Yahoo user accounts.
15 years
38
Dokuchaev
Sushchin
Baratov
Conspiring to commit access device fraud
§§ 1029(b)(2)
Defendants Dokuchaev and Sushchin tasked Baratov with gaining unauthorized access to individual user accounts at Google and other Providers and then paid Baratov for providing them with the account passwords. In some instances, Dokuchaev and Sushchin tasked Baratov with targeting accounts that they learned of through access to Yahoo’s UDB and AMT (e.g., Gmail accounts that served as a Yahoo user’s secondary account).
7 ½ years.
39
Dokuchaev
Sushchin
Baratov
Conspiring to commit wire fraud
§ 1349
See Count 38
20 years
40-47
Dokuchaev
Baratov
Aggravated identity theft
§ 1028A(a)(1)
See Count 38
2 years
The language of this release was updated to reflect the current citizenship of Karim Baratov.
Dmitri Dokuchae et al Indictment Redacted-
U.S. Charges Russian FSB Officers and Their Criminal Conspirators for Hacking Yahoo and Millions of Email AccountsRead the Press Release
Watch the press conference
Remarks by U.S. Attorney Brian StretchSAN FRANCISCO – A grand jury in the Northern District of California has indicted four defendants, including two officers of the Russian Federal Security Service (FSB), for computer hacking, economic espionage and other criminal offenses in connection with a conspiracy, beginning in January 2014, to access Yahoo’s network and the contents of webmail accounts. The defendants are Dmitry Aleksandrovich Dokuchaev, 33, a Russian national and resident; Igor Anatolyevich Sushchin, 43, a Russian national and resident; Alexsey Alexseyevich Belan, aka “Magg,” 29, a Russian national and resident; and Karim Baratov, aka “Kay,” “Karim Taloverov” and “Karim Akehmet Tokbergenov,” 22, a Canadian and Kazakh national and a resident of Canada.
The defendants used unauthorized access to Yahoo’s systems to steal information from about at least 500 million Yahoo accounts and then used some of that stolen information to obtain unauthorized access to the contents of accounts at Yahoo, Google and other webmail providers, including accounts of Russian journalists, U.S. and Russian government officials and private-sector employees of financial, transportation and other companies. One of the defendants also exploited his access to Yahoo’s network for his personal financial gain, by searching Yahoo user communications for credit card and gift card account numbers, redirecting a subset of Yahoo search engine web traffic so he could make commissions and enabling the theft of the contacts of at least 30 million Yahoo accounts to facilitate a spam campaign.
The charges were announced by U.S. Attorney Brian J. Stretch, Attorney General Jeff Sessions, Director James Comey of the FBI, Acting Assistant Attorney General Mary McCord of the National Security Division, and Executive Assistant Director Paul Abbate of the FBI’s Criminal, Cyber, Response and Services Branch.
“Silicon Valley’s computer infrastructure provides the means by which people around the world communicate with each other in their business and personal lives. The privacy and security of those communications must be governed by the rule of law, not by the whim of criminal hackers and those who employ them. People rightly expect that their communications through Silicon Valley internet providers will remain private, unless lawful authority provides otherwise. We will not tolerate unauthorized and illegal intrusions into the Silicon Valley computer infrastructure upon which both private citizens and the global economy rely,” said U.S. Attorney Stretch. “Working closely with Yahoo and Google, Department of Justice lawyers and the FBI were able to identify and expose the hackers responsible for the conduct described today, without unduly intruding into the privacy of the accounts that were stolen. We commend Yahoo and Google for providing exemplary cooperation while zealously protecting their users’ privacy.”
“Cyber crime poses a significant threat to our nation’s security and prosperity, and this is one of the largest data breaches in history,” said Attorney General Sessions. “But thanks to the tireless efforts of U.S. prosecutors and investigators, as well as our Canadian partners, today we have identified four individuals, including two Russian FSB officers, responsible for unauthorized access to millions of users’ accounts. The United States will vigorously investigate and prosecute the people behind such attacks to the fullest extent of the law.”
“Today we continue to pierce the veil of anonymity surrounding cyber crimes,” said Director Comey. “We are shrinking the world to ensure that cyber criminals think twice before targeting U.S. persons and interests.”
“The criminal conduct at issue, carried out and otherwise facilitated by officers from an FSB unit that serves as the FBI’s point of contact in Moscow on cybercrime matters, is beyond the pale,” said Acting Assistant Attorney General McCord. “Once again, the Department and the FBI have demonstrated that hackers around the world can and will be exposed and held accountable. State actors may be using common criminals to access the data they want, but the indictment shows that our companies do not have to stand alone against this threat. We commend Yahoo and Google for their sustained and invaluable cooperation in the investigation aimed at obtaining justice for, and protecting the privacy of their users.”
“This is a highly complicated investigation of a very complex threat. It underscores the value of early, proactive engagement and cooperation between the private sector and the government,” said Executive Assistant Director Abbate. “The FBI will continue to work relentlessly with our private sector and international partners to identify those who conduct cyber-attacks against our citizens and our nation, expose them and hold them accountable under the law, no matter where they attempt to hide.”
Summary of Allegations
According to the allegations of the Indictment:
The FSB officer defendants, Dmitry Dokuchaev and Igor Sushchin, protected, directed, facilitated and paid criminal hackers to collect information through computer intrusions in the U.S. and elsewhere. In the present case, they worked with co-defendants Alexsey Belan and Karim Baratov to obtain access to the email accounts of thousands of individuals.
Belan had been publicly indicted in September 2012 and June 2013 and was named one of FBI’s Cyber Most Wanted criminals in November 2013. An Interpol Red Notice seeking his immediate detention has been lodged (including with Russia) since July 26, 2013. Belan was arrested in a European country on a request from the U.S. in June 2013, but he was able to escape to Russia before he could be extradited.
Instead of acting on the U.S. government’s Red Notice and detaining Belan after his return, Dokuchaev and Sushchin subsequently used him to gain unauthorized access to Yahoo’s network. In or around November and December 2014, Belan stole a copy of at least a portion of Yahoo’s User Database (UDB), a Yahoo trade secret that contained, among other data, subscriber information including users’ names, recovery email accounts, phone numbers and certain information required to manually create, or “mint,” account authentication web browser “cookies” for more than 500 million Yahoo accounts.
Belan also obtained unauthorized access on behalf of the FSB conspirators to Yahoo’s Account Management Tool (AMT), which was a proprietary means by which Yahoo made and logged changes to user accounts. Belan, Dokuchaev and Sushchin then used the stolen UDB copy and AMT access to locate Yahoo email accounts of interest and to mint cookies for those accounts, enabling the co-conspirators to access at least 6,500 such accounts without authorization.
Some victim accounts were of predictable interest to the FSB, a foreign intelligence and law enforcement service, such as personal accounts belonging to Russian journalists; Russian and U.S. government officials; employees of a prominent Russian cybersecurity company; and numerous employees of other providers whose networks the conspirators sought to exploit. However, other personal accounts belonged to employees of commercial entities, such as a Russian investment banking firm, a French transportation company, U.S. financial services and private equity firms, a Swiss bitcoin wallet and banking firm and a U.S. airline.
During the conspiracy, the FSB officers facilitated Belan’s other criminal activities, by providing him with sensitive FSB law enforcement and intelligence information that would have helped him avoid detection by U.S. and other law enforcement agencies outside Russia, including information regarding FSB investigations of computer hacking and FSB techniques for identifying criminal hackers. Additionally, while working with his FSB conspirators to compromise Yahoo’s network and its users, Belan used his access to steal financial information such as gift card and credit card numbers from webmail accounts; to gain access to more than 30 million accounts whose contacts were then stolen to facilitate a spam campaign; and to earn commissions from fraudulently redirecting a subset of Yahoo’s search engine traffic.
When Dokuchaev and Sushchin learned that a target of interest had accounts at webmail providers other than Yahoo, including through information obtained as part of the Yahoo intrusion, they tasked their co-conspirator, Baratov, a resident of Canada, with obtaining unauthorized access to more than 80 accounts in exchange for commissions. On March 7, the Department of Justice submitted a provisional arrest warrant to Canadian law enforcement authorities, requesting Baratov’s arrest. On March 14, Baratov was arrested in Canada and the matter is now pending with the Canadian authorities.
An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
The FBI, led by the San Francisco Field Office, conducted the investigation that resulted in the charges announced today. The case is being prosecuted by the U.S. Department of Justice National Security Division’s Counterintelligence and Export Control Section and the U.S. Attorney’s Office for the Northern District of California, with support from the Justice Department’s Office of International Affairs.
Defendants: At all times relevant to the charges, the Indictment alleges as follows:
- Dmitry Aleksandrovich Dokuchaev, 33, was an officer in the FSB Center for Information Security, aka “Center 18.” Dokuchaev was a Russian national and resident.
- Igor Anatolyevich Sushchin, 43, was an FSB officer, a superior to Dokuchaev within the FSB, and a Russian national and resident. Sushchin was embedded as a purported employee and Head of Information Security at a Russian investment bank.
- Alexsey Alexseyevich Belan, aka “Magg,” 29, was born in Latvia and is a Russian national and resident. U.S. Federal grand juries have indicted Belan twice before, in 2012 and 2013, for computer fraud and abuse, access device fraud and aggravated identity theft involving three U.S.-based e-commerce companies and the FBI placed Belan on its “Cyber Most Wanted” list. Belan is currently the subject of a pending “Red Notice” requesting that Interpol member nations (including Russia) arrest him pending extradition. Belan was also one of two criminal hackers named by President Barack Obama on Dec. 29, 2016, pursuant to Executive Order 13694, as a Specially Designated National subject to sanctions.
- Karim Baratov, aka “Kay,” “Karim Taloverov” and “Karim Akehmet Tokbergenov,” 22. He is a Canadian and Kazakh national and a resident of Canada.
Victims: Yahoo; more than 500 million Yahoo accounts for which account information about was stolen by the defendants; more than 30 million Yahoo accounts for which account contents were accessed without authorization to facilitate a spam campaign; and at least 18 additional users at other webmail providers whose accounts were accessed without authorization.
Time Period: As alleged in the Indictment, the conspiracy began at least as early as 2014 and, even though the conspirators lost their access to Yahoo’s networks in September 2016, they continued to utilize information stolen from the intrusion up to and including at least December 2016.
Crimes:
Count(s)
Defendant(s)
Charge
Statute 18 U.S.C.
Conduct
Maximum Penalty
1
All
Conspiring to commit computer fraud and abuse
§ 1030(b)
Defendants conspired to hack into the computers of Yahoo and accounts maintained by Yahoo, Google and other providers to steal information from them.
First, Belan gained access to Yahoo’s servers and stole information that allowed him, Dokuchaev, and Sushchin to gain unauthorized access to individual Yahoo user accounts.
Then, Dokuchaev and Sushchin tasked Baratov with gaining access to individual user accounts at Google and other Providers (but not Yahoo) and paid Baratov for providing them with the account passwords. In some instances, Dokuchaev and Sushchin tasked Baratov with targeting accounts that they learned of through access to Yahoo’s UDB and AMT (e.g., Gmail accounts that served as a Yahoo user’s secondary account).
10 years
2
Dokuchaev
Sushchin
Belan
Conspiring to engage in economic espionage
§ 1831(a)(5)
Starting on Nov. 4, 2014, Belan stole, and the defendants thereafter transferred, received and possessed the following Yahoo trade secrets:
- the Yahoo UDB, which was proprietary and confidential Yahoo technology and information, including subscriber names, secondary accounts, phone numbers, challenge questions and answers;
- the AMT, Yahoo’s interface to the UDB; and
- Yahoo’s cookie “minting” source code, which enabled the defendants to manufacture account cookies to then gain access to individual Yahoo user accounts.
15 years
3
Dokuchaev
Sushchin
Belan
Conspiring to engage in theft of trade secrets
§ 1832(a)(5)
See Count 2
10 years
4-6
Dokuchaev
Sushchin
Belan
Economic espionage
§§ 1831(a)(1), (a)(4), and 2
See Count 2
15 years (each count)
7-9
Dokuchaev
Sushchin
Belan
Theft of trade secrets
§§ 1832(a)(1), and 2
See Count 2
10 years (each count)
10
Dokuchaev
Sushchin
Belan
Conspiring to commit wire fraud
§ 1349
The defendants fraudulently schemed to gain unauthorized access to Yahoo’s network through compromised Yahoo employee accounts and then used the Yahoo trade secrets to gain unauthorized access to valuable non-public information in individual Yahoo user accounts.
20 years
11-13
Dokuchaev
Sushchin
Belan
Accessing (or attempting to access) a computer without authorization to obtain information for the purpose of commercial advantage and private financial gain.
§§ 1030(a)(2)(C), 1030(c)(2)(B)(i)-(iii), and 2
The defendants gained unauthorized access to Yahoo’s corporate network and obtained information regarding Yahoo’s network architecture and the UDB.
5 years
(each count)
14-17
Dokuchaev
Sushchin
Belan
Transmitting code with the intent to cause damage to computers.
§§ 1030(a)(5)(A), 1030(c)(4)(B), and 2
During the course of their unauthorized access to Yahoo’s network, the defendants transmitted code on Yahoo’s network in order to maintain a persistent presence, to redirect Yahoo search engine users and to mint cookies for individual Yahoo accounts.
10 years (each count)
18-24
Dokuchaev
Sushchin
Belan
Accessing (or attempting to access) a computer without authorization to obtain information for the purpose of commercial advantage and private financial gain.
§§ 1030(a)(2)(C), 1030(c)(2)(B)(i)-(iii), and 2
Defendants obtained unauthorized access to individual Yahoo user accounts.
5 years
(each count)
25-36
Dokuchaev
Sushchin
Belan
Counterfeit access device fraud
§§ 1029(a)(1), 1029(b)(1), and 2
Defendants used minted cookies to gain unauthorized access to individual Yahoo user accounts.
10 years (each count)
37
Dokuchaev
Sushchin
Belan
Counterfeit access device making equipment
§§ 1029(a)(4)
Defendants used software to mint cookies for unauthorized access to individual Yahoo user accounts.
15 years
38
Dokuchaev
Sushchin
Baratov
Conspiring to commit access device fraud
§§ 1029(b)(2)
Defendants Dokuchaev and Sushchin tasked Baratov with gaining unauthorized access to individual user accounts at Google and other Providers and then paid Baratov for providing them with the account passwords. In some instances, Dokuchaev and Sushchin tasked Baratov with targeting accounts that they learned of through access to Yahoo’s UDB and AMT (e.g., Gmail accounts that served as a Yahoo user’s secondary account).
7 ½ years.
39
Dokuchaev
Sushchin
Baratov
Conspiring to commit wire fraud
§ 1349
See Count 38
20 years
40-47
Dokuchaev
Baratov
Aggravated identity theft
§ 1028A(a)(1)
See Count 38
2 years
Two members of Indiana family sentenced to federal prison for pain pill conspiracyRead the Press Release
CHARLESTON, W.Va. – Two members of a family from Indiana were sentenced today for their involvement in an oxycodone conspiracy, announced United States Attorney Carol Casto. Linda Vannatter, 74, of Hammond, was sentenced to three years and a month in federal prison for conspiracy to distribute oxycodone. Vannatter’s son-in-law, Steven Jurick, 57, of Valparaiso, was sentenced to two and a half years in federal prison for conspiracy to distribute oxycodone.
Vannatter and Jurick admitted to conspiring with each other from approximately January 2016 until April 13, 2016, to provide oxycodone to an individual who distributed the pain pills in Logan County. That individual contacted either Vannatter or Jurick on several occasions and met with either or both of them in Indiana to obtain oxycodone. Vannatter admitted that on March 15, 2016, she sold 231 thirty milligram and 17 twenty milligram oxycodone pills to that individual, who on that occasion was acting as a confidential informant. Jurick admitted that on April 13, 2016, he sold 150 thirty milligram oxycodone pills to that individual, who on that occasion was again acting as a confidential informant. The drug deals both took place in Indiana.
The Drug Enforcement Administration conducted the investigation. Assistant United States Attorney John J. Frail is responsible for the prosecution. United States District Judge Joseph R. Goodwin imposed the sentences.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Two Defendants Plead Guilty in Multi-Million Dollar Health Care Fraud and Money Laundering Scheme Involving Sober Homes and Alcohol and Drug Addiction Treatment CentersRead the Press Release
Two owners of sober homes and alcohol and drug addiction treatment centers pled guilty for their participation in a multi-million dollar health care fraud and money laundering scheme that involved the filing of fraudulent insurance claim forms and defrauded health care benefit programs.
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), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Dave Aronberg, State Attorney, Palm Beach County State Attorney’s Office, Jeff Atwater, Florida Chief Financial Officer, William D. Snyder, Sheriff Martin County Sheriff's Office, Robert Koons, Special Agent in Charge, Amtrak Office of Inspector General, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA), Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), Ric Bradshaw, Sheriff, Palm Beach County Sheriff's Office (PBSO), Sarah Mooney, Chief, West Palm Beach Police Department, Jeffrey S. Goldman, Chief, Delray Beach Police Department, Pam Bondi, Florida Attorney General, and Scott Rezendes, Special Agent in Charge, Office of Personnel Management, Office of Inspector General (OPM-OIG), made the announcement.
Kenneth Chatman, a/k/a “Kenny,” 46, of Boynton Beach, pled guilty to one count of conspiracy to commit health care fraud in violation of Title 18, United States Code, Section 1349; one count of conspiracy to commit money laundering in violation of Title 18, United States Code, Section 1956(h); and one count of sex trafficking conspiracy, in violation of Title 18, United States Code, Section 1594(c). Laura Chatman, 44, of Boynton Beach, pled guilty to two counts of making a false statement related to a health care matter, in violation ofTitle18, United States Code, Section 1035(a)(1). Sentencings for the Chatmans are scheduled for May 17, 2017 at 10:00 a.m. before U.S. District Judge Donald M. Middlebrooks.
According to court documents, defendant Kenneth Chatman established a series of sober homes, including Stay’n Alive, Inc., Total Recovery Sober Living LLC, and several other multi-bed residences operating as sober homes in Palm Beach and Broward Counties. These sober home facilities were purportedly in the business of providing safe and drug-free residences for individuals suffering from drug and alcohol addiction. Kenneth Chatman conspired with others to obtain patients who would receive ineffective and medically unnecessary substance abuse treatment and testing that could be billed to the patients’ insurance in order to enrich Chatman and the members of the conspiracy.
To achieve this goal, defendant Kenneth Chatman paid kickbacks and bribes to the sober home owners for referring their residents to Reflections Treatment Center LLC in Margate, Florida and Journey to Recovery LLC in Lake Worth, Florida for treatment, and disguised these kickbacks and bribes as “case management fees,” “consulting fees,” “marketing fees,” and “commissions.” The co-defendants met with Kenneth Chatman on a weekly basis to collect their kickbacks and bribes, which were based on the number of insured patients that received treatment each week.
To obtain residents for the sober homes, defendant Kenneth Chatman and others involved in the conspiracy provided kickbacks and bribes, in the form of free or reduced rent and other benefits, to individuals with insurance who agreed to reside at the sober homes, attend drug treatment, and submit to regular drug testing that members of the conspiracy could bill to the residents’ insurance plans. Although the sober homes were purportedly drug-free residences, some of the defendants permitted the residents to continue using drugs as long as they attended treatment and submitted to drug testing.
Defendants Kenneth and Laura Chatman submitted to the Florida Department of Children and Families fraudulent applications for licensure for Journey to Recovery and Reflections Treatment Center, stating that Laura Chatman was the sole owner of those entities and hiding the fact that Kenneth Chatman owned and operated the treatment centers and was a convicted felon and therefore unable to operate the facilities in his own name.
Defendant Laura Chatman appeared at Reflections and Journey for audits and inspections by DCF and other accrediting agencies to make it seem that she was the sole owner and officer of the companies. Defendant Laura Chatman also filed corporate documents and opened bank accounts in the name of Reflections and Journey to allow co-defendant Kenneth Chatman access to deposit proceeds from the health care fraud scheme and to conduct transactions meant to promote the scheme. Defendant Kenneth Chatman managed all aspects of these facilities including the hiring and firing of personnel; admitting and discharging patients and making financial decisions.
Defendant Kenneth Chatman dictated which patients were admitted and discharged and the type and frequency of different types of lab testing that would be performed based the kickbacks and bribes that he was receiving from different clinical laboratories rather than based upon the individual patients’ needs. Kenneth Chatman dictated that confirmatory urine drug testing; duplicative saliva drug testing, DNA and allergy testing regardless of whether patients complained of allergies. These tests were medically unnecessary and not used to direct the treatment of patients. Many of the test results were never reviewed and new samples were submitted before older tests were received and reviewed.
Defendant Kenneth Chatman also recruited and coerced female patients and residents into prostitution, telling them that they would not have to pay rent or participate in treatment or testing so long as they would allow him to continue to bill their insurance companies for substance abuse treatment and testing that the patients did not receive.
Defendants Kenneth Chatman and other co-conspirators recruited, enticed, harbored, transported, provided, obtained, and maintained some female patients into performing commercial sex acts. The defendant provided housing for the female patients, who would be made to perform sex acts in exchange for money that would then have to be paid to defendant Kenneth Chatman as “rent.” The commercial sex activity occurred at some of the sober homes controlled by the defendant or at hotels and motels. Kenneth Chatman provided condoms and advertised and caused the advertisement of the commercial sexual activity. Kenneth Chatman and other co-conspirators provided controlled substances to these addicted patients to induce them to perform sexual acts.
Kenneth Chatman also used intimidation tactics and threats of legal process, including evicting the patients from his sober homes to maintain their compliance. These patients were not required to attend treatment at Reflections or provide bodily fluid samples for testing but he submitted and caused the submission of claims to the patients’ Insurance Plans for substance abuse treatment and testing that they did not receive.
Kenneth Chatman further maintained control over patients who attended Reflections and Journey by threats and confiscating their belongings, car keys, telephones, medications, and food stamps, in order to maintain the ability to continue billing their Insurance Plans.
The proceeds of the health care fraud scheme were deposited into bank accounts that Kenneth Chatman and co-defendant Laura Chatman opened at Wells Fargo Bank in the name of Reflections and Journey. Kenneth Chatman and the co-conspirators agreed to use the proceeds to promote the ongoing fraud scheme including the making of kickback and bribe payments in the form of checks to sober home owners. These checks were for the referral of insured clients to Reflections for treatment and often noted that they were for “case management.” Kenneth Chatman, Laura Chatman and their co-conspirators also made payments to the medical directors, clinical directors, employees and others to continue their involvement with the fraud. Monies from these accounts were also used to pay kickbacks and bribes to patients, including providing prescription and illicit drugs to patients and potential patients.
Potential victims should call (561) 822-5114 or submit complaints through the IC3 Complaint Form - https://www.ic3.gov/complaint/default.aspx and use the key word “Chatman Reflections” in the “Description of the Incident” field when submitting complaints related to this case.
Greenberg commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, the Palm Beach County State Attorney's Office Sober Homes Task Force, Florida Division of Investigative and Forensic Services, Martin County Sheriff's Office, Amtrak OIG, DOL-OIG, DOL-EBSA, National Insurance Crime Bureau, Palm Beach County Sheriff's Office, West Palm Beach Police Department, Delray Beach Police Department, Florida Attorney General Office of Statewide Prosecution, and OPM-OIG. The cases are being prosecuted by Assistant United States Attorney A. Marie Villafaña.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov at http://www.usdoj.gov/usao/fls.
Three indicted for shipping methamphetamine from California to AkronRead the Press Release
An Akron man and two from California were indicted for a methamphetamine conspiracy, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
Jonathan Dowdell, 32, of Akron, Dwan Dowdell, 31, and Justin Jones, 26, both of San Bernardino, California were charged with conspiracy to possess with intent to distribute approximately 900 grams of methamphetamine.
They were arrested by the U.S. Postal Inspection Service on Feb. 15 for shipping approximately 900 grams of methamphetamine from California to Akron, according to court documents.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case was investigated the U.S. Postal Inspection Service, Homeland Security Investigation/ICE, Cleveland Police Department, Akron Police Department and Summit County Sheriff’s Office. It is being prosecuted by Assistant U.S. States Attorney Teresa Riley.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Heroin Dealers Arrested on Federal Drug Charges in Connection to the Overdose Death of a Farmers Branch WomanRead the Press Release
DALLAS — A Dallas-area man has been charged by federal criminal complaint stemming from his role in selling the heroin that caused a young woman’s overdose death at a McDonald’s restaurant in Farmers Branch in June 2016. Two other men were charged by federal criminal complaints stemming from their trafficking of illegal narcotics. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
“Tragically, heroin deaths like this are not isolated events anymore,” said U.S. Attorney Parker. “We obviously can’t bring this life back, but we can, together with our state and local partners, bring the full weight of law enforcement to bear on finding and prosecuting those who sell this poison. We will find you.”
Specifically, the complaint charges Rogelio Bernal, 20, of Dallas, Texas, and Zakariah Michael Wolf, 29, of Greenville, Texas, with conspiracy to distribute heroin in November of 2016, and separately charges Bernal with conspiracy to distribute heroin in June of 2016. Bernal and Wolf made appearances in federal court this week before U.S. Magistrate Judge Renee Harris Toliver, who ordered that Bernal remain in custody pending the detention hearing set for March 20, 2017, and Wolf remain in custody pending his detention hearing set for March 22, 2017.
In a separate complaint, Steven Gomez, 18, of Dallas, Texas, was charged with conspiracy to distribute methamphetamine on March 9, 2017, after having been found sharing a residence with Rogelio Bernal. Gomez made his initial appearance in federal court on March 9, 2017, before U.S. Magistrate Judge Renee Harris Toliver who ordered that he remain in custody pending trial.
According to the affidavit filed with the federal complaint for Bernal and Wolf, on November 9, 2016 investigators learned that Bernal distributed heroin in the Farmers Branch, Texas, area. Bernal had been the source of supply of heroin in the area since at least April 2016, and supplied Nancy Pineda, who was previously charged in a separate complaint for her role in the conspiracy. Investigators discovered Bernal had several text conversations with co-conspirators coordinating meetings to conduct illegal drug transactions.
On November 17, 2016, Farmers Branch Police Department observed Bernal arrive at a shopping center parking lot in Dallas, Texas. Officers observed a white male get into the front passenger seat of Bernal’s vehicle. The white male was later identified as Wolf. Approximately five to ten minutes later, Wolf exited Bernal’s vehicle and Bernal departed the location.
In the early morning hours of November 18, 2016, a Greenville Police officer observed a green 1994 Chrysler Concord, traveling east on Templeton Street in Greenville, Texas. The vehicle was stopped after committing multiple traffic violations, and the driver was identified as Wolf. Wolf was eventually arrested and the Greenville Police Department located a safe in the vehicle containing digital scale, several small clear zip lock style baggies, a syringe, a spoon with possible heroin residue, Suboxone sublingual packs, a half pill of Alprozolam, a plastic baggie containing suspected cocaine, a plastic baggie containing suspected methamphetamine, and a plastic baggie containing suspected heroin. Texas Department of Public Safety Laboratory Analysis of the drugs seized from the safe revealed 11.20 gross grams of heroin and 1.77 gross grams of methamphetamine. Two glass pipes, a wood stick, and 50 packaged syringes were also found in the vehicle.
According to the affidavit filed with the Gomez complaint, a federal search warrant was executed on March 9, 2017, at the residence of Bernal and Gomez. A search of Gomez’s room revealed a number of weapons, crack cocaine, and methamphetamine. Specifically, 490 gross grams of crack cocaine, 2,036 gross grams of suspected methamphetamine, and multiple firearms were located.
A federal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The penalty for the offenses charged in these criminal complaints is not more than 20 years in federal prison and a $1 million fine.
The Farmers Branch Police Department, Greenville Police Department, and the Drug Enforcement Administration are investigating the case. The Grand Prairie Police Department and Dallas Police Department provided assistance for the operation on March 9, 2017. Deputy Criminal Chief Assistant U.S. Attorney Rick Calvert and Assistant U.S. Attorney Myria Boehm are prosecuting.
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Sumter Drug Traffickers Sentenced over Two Days in Federal CourtRead the Press Release
Contact Person: JD Rowell (803) 929-3000
Columbia, South Carolina---- United States Attorney Beth Drake stated today that Shan Hill, age 36, of Sumter, SC; Tywon Blackwell, age 35, of Alcolu, SC; George “Tech” McDowell, age 45, of Sumter, SC; Shawn Green, age 38, of Sumter, SC; Quanta Lewis, age 23, of Sumter, SC; and Keenan McDowell-Gregg, age 22, of Sumter, SC; were sentenced yesterday and today in federal court in Columbia for conspiracy to possession with intent to distribute and distribution of cocaine and/or cocaine base in violation of Title 21, United States Code, Sections 841(a)(1) and 846. Chief United States District Judge Terry L. Wooten of Columbia sentenced the defendants to the following terms of imprisonment and supervised release:
• Shan Hill: 56 months imprisonment followed by 6 years supervised release;
• Tywon Blackwell: 192 months imprisonment followed by 4 years of supervised release;
• George “Tech” McDowell: 130 months imprisonment followed by 5 years supervised release;
• Shawn Green: 188 months imprisonment followed by 4 years supervised release;
• Quanta Lewis: 60 months imprisonment followed by 5 years supervised release; and
• Keenan McDowell-Gregg: 32 months imprisonment followed by 4 years of supervised release.Evidence presented at each defendant’s guilty plea and sentencing hearing established that the defendants were members of a cocaine and crack cocaine trafficking conspiracy that was operating in Sumter from 2013 through the summer of 2015. These six defendants were charged along with over fifty others in connection with the investigation into armed drug trafficking in Sumter. The case was based largely on evidence obtained via court-authorized wiretaps that ran from late 2014 through the summer of 2015. Evidence presented at plea and sentencing hearings showed that the above defendants dealt in quantities that ranged from multi-kilograms of cocaine down to street-level crack sale quantities.
The Federal Bureau of Investigation (FBI) and the Sumter Police Department investigated the case. Assistant United States Attorney JD Rowell of the Columbia office prosecuted the case.
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St. Mary’s County Man Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Christopher Zane Ordiway, age 43, of Drayden, Maryland, today to 10 years in prison, followed lifetime supervised release, for possession of child pornography. Ordiway admitted to engaging in sexual activity with a minor victim and possessing photos of that sexually explicit conduct. Judge Titus also ordered that, upon his release from prison, Ordiway must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
In U.S. District Court in Baltimore, Santos Jovany Quintanilla, age 37, of Lutherville-Timonium, Maryland, pleaded guilty today to two counts of sexually abusing a minor to produce child pornography.
The sentence and guilty plea were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to Ordiway’s plea agreement, from 2012 through 2014, Ordiway engaged in sexual activity with a minor female and possessed digital photographs documenting the abuse. The photos were found on Oridway’s cellular telephone on January 21, 2016, during a forensic analysis of the phone by an HSI examiner. Even though Ordiway had attempted to delete the photographs, the forensic analysis was able to recover thumbnails of the photographs that remained on the phone.
According to Quintanilla’s plea agreement, from 2010 through 2015, beginning when the victim was five years old, Quintanilla sexually abused a young girl, producing images of himself and the victim engaged in sexually explicit conduct. Multiple instances of abuse occurred when Quintanilla visited the home of the victim’s father. On several occasions, Quintanilla was left alone to watch the victim and her younger sister when their father left the house. During these times, Quintanilla sexually abused the victim and, on at least one occasion, took photographs documenting the abuse.
Quintanilla admitted that in 2015 he sent text messages to the victim asking her to take off her clothes and send Quintanilla photographs of her body. On March 30, 2015, Quintanilla contacted the victim, who was 10 years old at that time, via Facebook. Quintanilla sent the victim a photograph of a $50 bill, along with the message: “Do you want it? Do you want me to come over?”
In addition to photographs of the victim engaged in sexually explicit conduct, Quintanilla also took and possessed 40 images of child pornography, including pictures of a pre-pubescent male’s genitalia.
As part of his plea agreement, Quintanilla will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Quintanilla faces a minimum mandatory sentence of 15 years and up to 30 years in prison for each of two counts of production of child pornography. U.S. District Judge J. Frederick Motz has scheduled sentencing for May 31, 2017 at 9:30 a.m. Quintanilla remains detained pending sentencing.
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, and the Maryland State Police for their work in the Oridway case; and the FBI, HSI-Baltimore, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the Quintanilla investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Joseph R. Baldwin and Daniel C. Gardner who prosecuted the Ordiway case, and Assistant U.S. Attorneys Aaron S. J. Zelinsky and Paul E. Budlow, who are prosecuting the Quintanilla case.
Springfield Woman Pleads Guilty to Stolen Mail, FraudRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., woman responsible for mail thefts from at least 40 victims in three counties, pleaded guilty in federal court today.
Lisa Beatrice Gee, 29, of Springfield, pleaded guilty before U.S. District Judge M. Douglas Harpool to passing a forged check, credit card fraud and stealing mail.
By pleading guilty today, Gee admitted that she was in possession of stolen mail between Jan. 8 and March 17, 2016. When Gee was arrested on March 17, 2016, she was in possession of mail stolen by herself, or others at her direction, from at least 40 different individuals in Greene, Christian and Polk Counties. Gee admitted that she took checks, credit cards, Social Security cards and personal identification cards belonging to those mail theft victims. Gee used the contents of the stolen mail to engage in fraudulent criminal acts.
Gee admitted that she fraudulently conducted financial transactions with credit cards, debit cards, identification cards and personal identification numbers. Gee also passed a forged check on Jan. 23, 2016. Gee altered the check, which had been mailed from one person to another, to make it payable to a third person and deposited the check in that person’s bank account. Shortly thereafter, Gee withdrew the same amount of money from the account in the form of ATM cash withdrawals.
Under federal statutes, Gee is subject to a sentence of up to 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Postal Inspection Service, the Springfield, Mo., Police Department, the Nixa, Mo., Police Department and the Ozark, Mo., Police Department.
Springfield Sex Offender Pleads Guilty to Child PornRead the Press Release
SPRINGFIELD, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a registered sex offender in Springfield, Mo., pleaded guilty in federal court today to receiving and distributing child pornography over the Internet.
Frank A. Kuhn, 52, of Springfield, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charge contained in a Jan. 18, 2017, federal indictment. Kuhn was convicted of the deviate sexual assault of a 15-year-old victim in 1994 in Newton County, Mo.
According to court documents, investigators received a cyber tip from the National Center for Missing and Exploited Children regarding four images of child pornography reported by Yahoo! employees. Kuhn was identified as the user responsible for transmitting the images.
On Nov. 29, 2016, officers executed a search warrant at Kuhn’s residence and seized computers, digital storage media and phones. Investigators found multiple images of child pornography on the digital storage devices.
Under federal statutes, Kuhn is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Southwest Missouri Cyber Crimes Task Force, the Springfield, Mo., Police Department and the Greene County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Seven from Cleveland indicted for stealing nearly $750,000 worth of cell phones from stores across 11 statesRead the Press Release
Seven people from Cleveland were indicted in federal court for a conspiracy in which they stole nearly $750,000 worth of cell phones and other electronics from shopping malls and kiosks in several states, law enforcement officials said.
Melvin Swinney, 21, Tyron Hicks, 30, Adolph Boyd III, 24, Jerome Goins, 21, Delante Hudson-Frost, 22, Dennis McKenzie, 20, and Padra Graves, 38, were indicted on charges of conspiring to transport stolen goods in interstate commerce. The indictment also charges 13 counts of transporting stolen goods in interstate commerce.
The seven co-defendants and others targeted shopping malls, kiosks, and retailers of cellular telephones and electronic devices. They broke into these stores or locked storage areas in Wisconsin, Illinois, Indiana, Maryland, Michigan, New Jersey, New York, Pennsylvania, North Carolina, South Carolina and Ohio, including Summit Mall in Fairlawn and SouthPark Mall in Strongsville, according to the indictment,
The defendants stole the electronic devices, and returned to the Cleveland area to sell the stolen merchandise to individuals, gas stations and independent phone stores, according to the indictment.
The conspirators stole approximately $738,500 worth of cell phones and other electronic devices between April 24 and July 24, 2016, according to the indictment.
An eighth man, Darnell Foster, 20, also of Cleveland, was charged in a related case with one count of transporting stolen goods in interstate commerce.
“This group roamed the eastern half of the United States stealing phones and merchandise worth hundreds of thousands of dollars,” said Acting U.S. Attorney David A. Sierleja. “Our partners at the FBI and Cleveland Police are to be commended for breaking up this sophisticated crime ring.”
“This gang-affiliated group traveled to numerous states to break into retail stores to steal hundreds of thousands of dollars in electronic devices,” said FBI Special Agent in Charge Stephen D. Anthony said. “Due to law enforcement's collaborative efforts, we are able to hold these criminals accountable for their unlawful acts.”
“The criminals named in this indictment have victimized multiple local businesses, causing significant damage and loss,” said Cleveland Police Chief Calvin Williams. “In addition, their crimes spread to multiple states and even overseas, showing what a damaging effect organized crime has on society. I am proud of the work done by the officers and agents in this case and grateful for the strong partnership the Cleveland Division of Police has with the Cleveland Office of the Federal Bureau of Investigation.”
Assistant United States Attorneys Megan R. Miller and Elliot D. Morrison are prosecuting the case following an investigation by the Federal Bureau of Investigation and the Cleveland Division of Police.
If convicted, the court will determine the defendants’ sentences after a review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Sandusky man indicted for trafficking cocaine and marijuanaRead the Press Release
A Sandusky man was indicted on charges of possession with intent to distribute cocaine and marijuana, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
Deonte Graves, 34, had more than two kilograms of cocaine and more than a kilogram of marijuana, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Drug Enforcement Administration in Toledo. It is being handled by Assistant U.S. Attorneys Michael J. Freeman and Thomas P. Weldon.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Randolph County man pleads guilty to illegally possessing a gunRead the Press Release
ELKINS, WEST VIRGINIA –Jason Randall Howard, 38, of Elkins, West Virginia, was convicted of illegally possessing a firearm, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Howard, having previously been convicted in Randolph County of Domestic Battery, admitted to possessing a 9mm pistol in Randolph County in August 2016.
Howard pled guilty to one count of “Unlawful Possession of a Firearm.” He faces up to ten years in prison 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 Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force and the Barbour County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Pittsburgh Man Charged with Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH – A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on charges of violating federal firearms and narcotics laws, Acting United States Attorney Soo C. Song announced today.
The five-count superseding indictment, returned yesterday, named Eric Clancy, age 30, as the sole defendant.
According to the superseding indictment, on May 13, 2015, Eric Clancy possessed with the intent to distribute a quantity of heroin and fentanyl. Clancy, a convicted felon, is also charged with illegally possessing a firearm on March 26, 2016. The superseding indictment further charges that on August 25, 2016, Clancy possessed with the intent to distribute a quantity of heroin, possessed a firearm as a convicted felon, and possessed that firearm in furtherance of that drug trafficking crime. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm.
The law provides for a maximum total sentence of not less than 5 years and up to life in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government. This case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pittsburgh Bureau of Police and the Mount Oliver Police Department conducted the investigation leading to the superseding indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pastor Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – Mark Q. Stafford of O’Fallon, Missouri, pled guilty to mail fraud and filing a false tax return in connection with a large-scale investment fraud arising out of his company, the Stafford Financial Firm. Stafford appeared before United States District Judge Henry E. Autrey, who set sentencing for June 13, 2017.
Stafford, who was also a minister at New Birth Powerplex Ministries in North St. Louis, admitted in open court that he falsely represented to clients of the Stafford Financial Firm that their funds would be placed with Quest Financial Holdings or Gain Capital Group, which Stafford sometimes misspelled “Gain Capitol Group.” In truth and in fact, Stafford did not open any accounts at Quest Financial Holdings or Gain Capital Group in his clients’ names. Instead, Stafford in some cases did not deposit the clients’ funds with either Quest Financial Holdings or Gain Capital Group, and in others he deposited their funds into his own accounts at Gain Capital Group, where he then used those funds for his own personal benefit. Stafford obtained approximately $1.26 million in proceeds from approximately 31 victims, and caused an actual loss to those victims in the approximate amount of $1.08 million.
Stafford also pled guilty to filing a false tax return in 2011 that failed to disclose the income he had illegitimately taken from his investors. Stafford also admitted to failing to file any tax return in 2012 and 2014.
Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000. Filing a false tax return carries a maximum penalty of three years in prison and/or fines up to $100,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges. Restitution is mandatory under the Mandatory Victims Restitution Act. Additionally, Stafford agreed to a forfeiture allegation that will result in a money judgment against him equal to the amount he swindled from investors.
The case was investigated by the Internal Revenue Service and the U.S. Postal Inspection Service. Assistant United States Attorney Richard E. Finneran is handling the case for the U.S. Attorney’s Office.
Pain Management Physician Pleads Guilty to Health Care Fraud and Money LaunderingRead the Press Release
BOSTON – A Dover, Mass., pain management physician pleaded guilty today in U.S. District Court in Boston in connection with his scheme to defraud Medicare and other health care insurers, and then using the proceeds of his illegal activity to support his extravagant lifestyle.
Fathallah Mashali, 62, pleaded guilty to 27 counts of health care fraud, one count of conspiracy to commit mail fraud, and 16 counts of money laundering. U.S. District Court Senior Judge Rya W. Zobel scheduled sentencing for June 21, 2017. Judge Zobel ordered Mashali released on GPS monitoring pending sentencing.
Mashali was a licensed physician in Massachusetts and Rhode Island. Mashali operated New England Wellness & Pain Management, P.C., a/k/a New England Pain Associates, P.C., of Massachusetts and Rhode Island, a/k/a Greystone Pain Management, Inc., a/k/a New England Pain Institute, P.C. (NEPA). He also employed Egyptian doctors in Cairo, Egypt, who entered false information into U.S. patients’ medical records. Many of the patients at NEPA were Medicare beneficiaries.
From approximately October 2010 through March 2013, Mashali falsely billed Medicare for extensive medical services that he did not provide. He treated patients with chronic pain conditions and frequently gave his patients large doses of prescription medications, including powerful opiates. Mashali falsely stated in patients’ medical records and representations to Medicare and private insurance companies that he had seen patients for twenty-five minutes per appointment or longer, when in fact, Mashali often saw his patients for less than five minutes. In his brief interactions with his patients, Mashali did not perform any physical examinations and barely inquired into the patient’s medical status or history. In addition, he overbooked his patient appointments and arrived to work sometimes as late as four hours after his first scheduled appointment. His scheduling practices caused significant overcrowding at his offices and left him with no meaningful ability to assess each individual patient. Mashali then falsely documented that he conducted extensive physical exams, when he most often did not even touch his patients. As a result of his false statements, he obtained substantial reimbursement from Medicare and private insurance companies.
Mashali also routinely billed Medicare and private insurers for urine drug test results that were false and fraudulent. He caused patients’ urine samples to be stored for weeks and up to three months unrefrigerated in a heated, sunlit space in his laboratory in Holbrook, Mass., which left them degraded and worthless. The decomposition caused a significant stench of stale urine throughout the lab. Mashali nevertheless made his lab technicians test all the old urine, while well aware that his practice of urine sample storage was wrong. When inspectors showed up at his lab, he directed his staff to move the unrefrigerated urine out of sight.
Mashali mandated that his staff run every patients’ urine sample on two machines, each of which used the same scientific testing methodology, which Mashali knew was contrary to Medicare billing rules. He caused every patients’ urine specimen to be chemically confirmed, despite the fact that he did not even know the result of the initial urine drug screening test, knowing that this was also contrary to Medicare billing rules. Moreover, Mashali ran tests on chemical analyzers that had not been properly calibrated and validated.
When Medicare began to inquire about Mashali’s unlawful billing practices and initiated an audit of Mashali’s medical services, requesting 40 patient medical files, Mashali caused his staff both in the United States and in Egypt to falsely alter patient records. This included falsifying patient encounters which had taken place sometimes one or more years earlier, and faking and backdating the results of patients’ urine drug tests. Mashali knew that his patient records would not pass muster with Medicare’s auditors and thus ordered his staff to make these changes.
Mashali used the proceeds derived from his fraudulent billing to fund a lavish lifestyle, spending money on his extravagant Dover residence and a condominium in Florida. For example, he ordered the construction of a carriage house, outfitted with a squash court and movie theater, at his Dover home.
“Dr. Mashali failed his patients and deceived Medicare,” said Acting U.S. Attorney William D. Weinreb. “He billed Medicare for patient visits and urine drug testing that he did not perform. He exposed his vulnerable patient population to significant medical risks, by refusing to properly examine them and by paying no attention to the results of their drug tests. A physician who knowingly defrauds Medicare and other health care insurers compromises patient care and squanders precious health care resources.”
“The FBI will continue to target those providers in the medical community who operate under the cover of legitimacy to commit criminal acts,” said Harold Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Today’s plea highlights the ongoing work the FBI is doing to investigate providers who exploit patients by submitting fraudulent medical claims for services they never provided.”
“Dr. Mashali violated the fundamental trust that taxpayers and patients have in medical professionals. Such health care fraud scams increase health care costs, threaten patient health and well-being, and undermine the public’s trust in the health care profession,” said Special Agent in Charge Phillip Coyne of the U.S. Department of Health and Human Services, Office of Inspector General. “Working together with our law enforcement partners to stop fraud, as we did today, will ensure that Americans’ hard-earned dollars are used to provide quality care for patients — not to line the pockets of criminals.”
“This matter illustrates the commitment of all agencies to combat medical billing fraud which affects all citizens,” said Anthony M. DiPaolo, Chief of Investigations for the Insurance Fraud Bureau. “The Insurance Fraud Bureau of Massachusetts places a high priority on fighting this type of insurance fraud. The collaboration in this matter is unprecedented.”
“Fraud schemes of this magnitude undermine the integrity of our health care system and contribute to its rising cost,” said Special Agent in Charge Joel P. Garland, of the Internal Revenue Service’s Criminal Investigation. “Ultimately, Dr. Mashali’s patients were deprived of quality health care while he was unjustly enriched. We are proud of our law enforcement partnership in this important investigation, and IRS will continue to offer our forensic accounting skills to combat health care fraud in all forms.”
Acting U.S. Attorney Weinreb; FBI SAC Shaw; HHS-OIG SAC Coyne; Massachusetts IFB Chief DiPaolo; IRS-CI SAC Garland; and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement today. Assistant U.S. Attorneys Maxim Grinberg and Abraham R. George of Weinreb’s Office are prosecuting the case.
Orrville man indicted for selling fentanylRead the Press Release
An Orrville man was indicted on fentanyl trafficking charges, said David A. Sierleja, Acting U.S. Attorney for the Northern District of Ohio.
Kenneth L. Johnson was indicted on one count of possession with the intent to distribute and distribution of fentanyl.
Johnson, originally from Chicago, sold two packages containing fentanyl to a person in Orrville, Ohio on Dec. 3, 2016, according to the indictment.
The matter is being prosecuted by Assistant U.S. Attorney Aaron P. Howell following an investigation by the Orville Police Department, Medway Drug Enforcement Agents and the Drug Enforcement Administration.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove each defendant’s guilt beyond a reasonable doubt.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ roles in the offense and the characteristics of the violations.
New York man pleads guilty to student loan fraudRead the Press Release
MARTINSBURG, WEST VIRGINIA – Shiftan Shagabaev, 42, of Brooklyn, New York was convicted today for committing student loan fraud, Acting United States Attorney Betsy Steinfeld Jividen announced.
Shagabaev admitted to making a fraudulent statement on a student loan application in Jefferson County, West Virginia in December 2012.
Shagabaev pled guilty to one count of “Student Loan Fraud.” He faces up to one year in prison and a fine 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 Paul T. Camilletti prosecuted the case on behalf of the government. The United States Department of Education investigated.U.S. Magistrate Judge Robert W. Trumble presided.
New Orleans Couple Sentenced for Drugs, Firearms and Obstruction ChargesRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that GROSS WILLIAMS, age 49, and his wife, KATHLEEN WILLIAMS, age 47, both of New Orleans, were sentenced today by U.S. District Judge Kurt D. Engelhardt.
GROSS WILLIAMS had previously pled guilty to conspiracy to distribute a kilogram or more of heroin and five kilograms or more of cocaine, as well as illegal possession of a firearm by a convicted felon. GROSS WILLIAMS was sentenced to 276 months imprisonment on the drug conspiracy and 120 months on the gun charge, to run concurrently. He was also fined $20,000 and placed on ten years of supervised release following his term of imprisonment.
KATHLEEN WILLIAMS had previously pled guilty to obstruction of justice for destroying a cellular phone used by GROSS WILLIAMS in his drug dealing activity. KATHLEEN WILLIAMS was sentenced to four years of probation, with the initial nine months to be on house arrest.
According to court documents, GROSS WILLIAMS was a large-scale narcotics dealer. He operated a used car business in Arabi that served as a cover and means of laundering his drug proceeds. Law enforcement officers seized over $425,000 in cash and a .40 caliber semi-automatic pistol from the WILLIAMS’ bedroom during a search, and later discovered another $240,000 in cash in a safe deposit box that KATHLEEN WILLIAMS had opened in her name. Through a detailed financial investigation, law enforcement was able to show that GROSS WILLIAMS deposited hundreds of thousands of dollars in cash into the bank accounts of his used car business despite selling only a few midrange models each year. KATHLEEN WILLIAMS also admitted that she destroyed her husband’s “dope phone” the day that he was arrested.
Acting U.S. Attorney Evans praised the work of the Drug Enforcement Administration, the Federal Bureau of Investigation, the St. Bernard Parish Sheriff’s Office, the New Orleans Police Department, and Louisiana Probation and Parole, in investigating this matter. Assistant United States Attorneys David Haller and Hayden Brockett were in charge of the prosecution.
New Iberia man pleads guilty to transporting obscene material of minorsRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a man from New Iberia pleaded guilty to transporting obscene material.
Lance Robert LeMaire, 36, of New Iberia, La., pleaded guilty before U.S. Magistrate Judge Carol B. Whitehurst to one count of transporting obscene material. The plea will become final when accepted by U.S. District Judge Robert G. James. According to the guilty plea, law enforcement agents identified LeMaire as possibly possessing obscene material. An agent obtained LeMaire’s tablet computer on May 5, 2015, and a forensic examination found 161 images involving sexual exploitation of a minor on the device.
LeMaire faces five years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of July 10, 2017.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative 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 combines 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.
Those concerned may also leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Lafayette FBI office number is (337) 233-2164.
The FBI conducted the investigation. Assistant U.S. Attorneys Robert C. Abendroth and John Luke Walker are prosecuting the case.
New Iberia man pleads guilty to sending threatening letters to government agencies in South LouisianaRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a New Iberia man pleaded guilty Tuesday to sending threatening letters to government agencies across South Louisiana, including the governor’s office.
Kyle Dore, 33, of New Iberia, La., pleaded guilty before U.S. Magistrate Judge Patrick Hanna to five counts of mailing threatening communications and four counts of false information and hoaxes. The plea will become final when accepted by U.S. District Judge Donald E. Walter. According to the guilty plea, Dore sent a series of letters in December 2015 and January 2016 threatening agencies and persons working at offices in local, state and federal government. In four of the nine letters, he sent a white powder with the implication that it was toxic. The substance was later tested and found not dangerous. He sent letters to the Louisiana State Capitol to the attention of Governor John Bel Edwards, the Vermilion Parish Courthouse, the Lafayette Parish Courthouse, and U.S. Post Offices in New Iberia, Delcambre, Abbeville and Lake Charles.
Dore faces five years in prison, three years supervised release and a $250,000 fine for each count. The court set a June 9, 2017 sentencing date.
The FBI, the U.S. Postal Inspection Service and the Louisiana State Police investigated the case. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Neenah, Wisconsin Woman Sentenced to 4 Years for Tax Fraud SchemeRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on March 14, 2017, Billie Jo Bottine (age 39) of Neenah, Wisconsin, was sentenced in Federal Court in Green Bay to 4 years in prison to be followed by 3 years on supervised release. The sentence follows her guilty plea to charges of filing numerous false federal income tax returns using other peoples’ identities, in violation of Title 18, United States Code, Sections 287, 1028A, and 1343. Ms. Bottine was also ordered to pay $186,414 in restitution to the Internal Revenue Service.
According to the plea agreement and other court documents, Bottine filed more than 70 false federal income tax returns in the names of 32 different people between 2009 and 2014. To prepare these false returns, Bottine unlawfully used the names, dates of birth, and social security numbers of various individuals and children. She created fake W2 forms and fake Schedule C forms that she attached to the filings in an effort to obtain fraudulent tax refunds. In all, Bottine sought more than $340,000 in tax refunds from the IRS through these false federal income tax return filings.
While handing down the sentence, Chief United States District Judge William C. Griesbach noted the extended period over which the scheme occurred, the fact that Bottine stole the identities of several individuals, the large dollar amount of the fraud, and Bottine’s history of fraudulent conduct. Judge Griesbach stated that these types of tax fraud offenses are very serious crimes that call for significant sentences.
This case was investigated by IRS Criminal Investigation. The case was prosecuted by Assistant United States Attorney Benjamin W. Proctor.
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For further information contact:
Public Information Officer Dean Puschnig at (414) 297-1700
National Youth Violence Prevention Week Events AnnouncedRead the Press Release
BOSTON – The Boston Interagency Committee on Violence Prevention announced its annual anti-violence creative contests and a call for all Boston Public school students to participate. Winners will be announced during the City’s National Youth Violence Prevention Week festivities, April 3 – 7.
Students in grades K-8 are invited to submit posters, middle school students can submit poetry, and high school students can enter their own music videos – all must reflect this year’s theme, “Youth Standing Strong Against Violence.” Prizes include gift cards, tickets to Red Sox and Celtics games, and an interview on JAM’N 94.5. Contest winners will be revealed at the annual city-wide Peace Rally at the Reggie Lewis Track & Athletic Center at Roxbury Community College on April 6, 2017 from 5:30 to 7:30 pm.
Information on the contests and Peace Rally is available at https://www.boston.gov/calendar/youth-peace-rally or by emailing [email protected].
Other National Youth Violence Prevention Week events include a program at the J.W. Hennigan School in Jamaica Plain, merging the U.S. Attorney’s “Your Future, Your Decision” presentation with the Suffolk County District Attorney’s “Overcoming Violence” graduation, as well as a Flashlight Walk with the Boston Police Department.
National Youth Violence Prevention Week aims to raise awareness and educate young people, parents, and communities as a whole, about effective ways to prevent and reduce youth violence. The campaign, which is held in cities across the country, features activities, competitions and events that bring young people together to make their schools and communities safer using peaceful forms of self-expression.
The Boston Interagency Committee on Violence Prevention consists of representatives from the U.S. Attorney’s Office, Office of the Governor, Massachusetts Attorney General’s Office, MassHousing, Suffolk County District Attorney’s Office, Suffolk County Sheriff’s Department, City of Boston Mayor’s Office, Boston Police Department and the Boston Centers for Youth & Families.
JAM’N 94.5 Radio, Roxbury Community College, Crystal Rock Beverages and the Boston Police Athletic/Activities League are sponsoring the contests and Peace Rally.
Monument Company Worker Embezzled $12.9 Million from EmployerRead the Press Release
PITTSBURGH – An Allegheny County resident pleaded guilty in federal court to charges of mail fraud, wire fraud, tax evasion, and money laundering, Acting United States Attorney Soo C. Song announced today.
Cynthia A. Mills, 56, of McKees Rocks, Pa., pleaded guilty to six counts (one count of mail fraud, three counts of wire fraud, one count of tax evasion, and one count of engaging in monetary transactions in criminally derived property) before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that from February 1999 to May 2015, Mills embezzled $12,969,774.42 from Matthews International Corporation where she was employed as a Cashier and Treasury Specialist.
Judge Fischer scheduled sentencing for July 28, 2017, at 9:30 a.m. The law provides for a total sentence of 95 years in prison, a fine of $1,500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Internal Revenue Service and the U.S. Postal Inspection Service conducted the investigation that led to the prosecution of Mills.
Mexican Citizen Pleads Guilty to Immigration ChargeRead the Press Release
Lynchburg, VIRGINIA – A citizen of Mexico, who on four occasions was removed from the United States only to return later without lawful permission, pled guilty this afternoon to a federal immigration charge, Acting United States Attorney Rick A. Mountcastle announced.
Adolfo Castaneda-Garcia, 45, a native of Mexico, pled guilty today in the United States District Court for the Western District of Virginia in Lynchburg to one count of illegally reentering the United States without obtaining express consent of the Secretary of the Department of Homeland Security to reapply for admission.
According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Charlene R. Day, Castaneda-Garcia was first encountered by Immigrations officials at or near Denver, Colorado in February 1996 while serving a state prison sentence for possession of a controlled substance. The defendant was sentenced to four years in prison for this conviction and later removed to Mexico. Over the next decade, Castaneda-Garcia was arrested, incarcerated, removed from the United States and encountered by Border Patrol officers at least four times in Arizona, California and Texas.
On June 17. 2016, officials with the Rockbridge Regional Jail in Lexington, Va., contacted officials with Immigrations and Customs and Enforcement officers and informed them that Castaneda-Garcia was arrested in Buena-Vista on state drug charges.
U.S. Department of Homeland Security, ICE- Enforcement and Removal Services conducted the investigation of the case. Assistant United States Attorney Charlene R. Day prosecuted the case for the United States.
Mexican Businessman Sentenced to Federal Prison for Pyramid SchemeRead the Press Release
In El Paso today, a federal judge sentenced 40-year-old self-proclaimed licensed investment broker Roberto Trinidad Del Carpio Frescas to 235 months in federal prison followed by three years of supervised release for carrying out a Ponzi scheme that resulted in an estimated $14 million loss announced United States Attorney Richard L. Durbin, Jr., U.S. Secret Service Special Agent in Charge Lee Dotson and El Paso Police Chief Greg Allen.
During sentencing, United States District Judge David C. Guaderrama scheduled a hearing on May 25, 2017, to determine the amount of restitution in this case. Del Carpio has remained in federal custody since his arrest in February 2015.
On February 19, 2016, a federal jury convicted Del Carpio of Chihuahua, MX, of 24 counts of wire fraud and ten counts of money laundering.
Evidence presented during trial revealed that the defendant held himself out to have superior knowledge and ability as an investor in stocks, bonds, futures in oil, gas, precious metals and currency. Though he was not licensed in the state of Texas as a dealer, or registered as an investment adviser, Del Carpio formed several companies in Texas including SMI International Institute Corporation (aka Stock Market Investment), Del Carpio Trading Institute LLC, and one in the Cayman Islands, Del Carpio Holdings, to facilitate his scheme.
From August 2010 until January 2012, Del Carpio and others collected money from over 100 known investors in Mexico and the United States. Del Carpio pocketed most all of the funds he collected though he did pay minimal amounts of money to “early” investors as a return on their investment and to encourage his victims to invest more of their money with him.
On March 3, 2017, Del Carpio’s co-defendant, 61-year-old David Brian Binder of Pittsburg, PA, pleaded guilty to one count of wire fraud. By pleading guilty, Binder admitted to helping Del Carpio keep proceeds from the scheme out of the hands of potential creditors as well as lying to them about protecting their investments. As a result, Binder faces up to 20 years in federal prison. He remains on bond pending sentencing scheduled for 9:00am on June 1, 2017, before Judge Guaderrama.
This investigation was conducted by the U.S. Secret Service and the El Paso Police Department. Assistant United States Attorneys Ian Hanna and Stanley Serwatka prosecuted this case on behalf of the Government.
Manchester Man Pleads Guilty to Bank RobberyRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that Brian Christoffels, 35, of Manchester, New Hampshire, pleaded guilty in federal court on Monday to one count of bank robbery.
According court records and statements made in court, Christoffels robbed the TD Bank at 293 S. Main Street in Manchester, New Hampshire, on October 10, 2016. Christoffels entered the bank, handed a bank teller a note demanding cash, then fled the area in his truck. Manchester Police pursued Christoffels and eventually arrested him at an off-ramp from Interstate 93.
A sentencing hearing is scheduled for June 27, 2017.
The case was investigated by the Manchester Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Shane Kelbley.
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Man Sentenced to 41 Months in Prison for Possession of Cocaine with Intent to DistributeRead the Press Release
St. Croix, USVI – District Court Judge Raymond L. Finch on March 14, 2017 sentenced Alejandro Marva-Romero, 33, of Venezuela, to 41 months in prison for possession of cocaine with intent to distribute, Acting United States Attorney Joycelyn Hewlett announced. Judge Finch also sentenced Marva-Romero to five years of supervised release and ordered him to pay a special assessment of $100.
On September 14, 2016, Marva-Romero pleaded guilty to possession of cocaine with intent to distribute. On November 13, 2015, Marva-Romero and other co-defendants traveled from St. Croix by boat to retrieve a load of cocaine mid-sea from a supply vessel. They transported the drugs in suitcases back to St. Croix and offloaded them at Knight’s Bay beach. Law enforcement tracked the boat as it returned to St. Croix and apprehended Marva-Romero and two co-defendants on the beach in close proximity to the suitcases. The suitcases contained 87 kilograms of cocaine.
The case was investigated by the U.S. Drug Enforcement Administration and was prosecuted by Assistant U.S. Attorney Alphonso G. Andrews, Jr.
Logan businessman pleads guilty to federal tax crimeRead the Press Release
CHARLESTON, W.Va. – A Logan man pleaded guilty today to a federal tax crime, announced United States Attorney Carol Casto. Timothy Moore, 54, entered his guilty plea for making a false statement on a tax return.
Moore admitted that from 2010 through at least 2013, he diverted checks intended for his business, Auto Body Specialists, LLC, an auto body and collision company located in Logan. Moore also admitted that the checks were payment for auto body or other work, and that he diverted the checks by depositing them directly into his personal bank accounts rather than into his company accounts. Moore additionally admitted that he hired an outside bookkeeper to prepare his personal and business taxes and to organize the books and records of the business. He admitted that he did not tell his bookkeeper about the diverted checks, nor did he provide the bookkeeper access to his personal bank accounts. When the bookkeeper filed joint income tax returns for Moore and his wife, Moore admitted that he knew that his tax returns understated his income from his company, as the returns did not take into account those diverted funds. Moore further admitted that he authorized the bookkeeper to file the false returns.
Moore specifically admitted that in tax years 2010, 2011, 2012, and 2013, he diverted $414,273.58 into his personal accounts that was not reported on his tax returns. Moore also admitted that the total tax loss for his criminal conduct is $127,926.26, and he admitted that he owes that same amount to the IRS as restitution.
Moore faces up to three years in federal prison and a fine of up to $250,000 when he is sentenced on June 8, 2017.
This case was investigated by agents of the IRS – Criminal Investigation Division. Assistant United States Attorney Meredith George Thomas is handling the prosecution. The plea hearing was held before United States District Judge Joseph R. Goodwin.
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Letcher County Business Owner Sentenced to 30 Months for Filing False Tax ReturnsRead the Press Release
LEXINGTON, Ky. – A business owner, who previously admitted he underreported more than $5 million in income over the course of three years, has been sentenced to 30 months in federal prison.
On Tuesday, U.S. District Judge Amul R. Thapar sentenced 38-year-old Jarrod C. Breeding, of Letcher County, for making false statements on tax returns filed with the IRS. Under federal law, Breeding must serve at least 85 percent of his sentence.
Breeding, the owner of Southern Steel Recycling in Isom, Ky., previously admitted that, for tax years 2011, 2012, and 2013, he underreported his income, by more than $5 million. Under federal law, domestic financial institutions, such as banks, must report any cash transaction at their institution that exceeds $10,000, as a way to assist in detecting crimes such as tax evasion.
Breeding underreported his income, in part, by structuring transactions, to avoid this $10,000 limit and the institution’s reporting requirements. This resulted in large amounts of money never being included on his bank statements. Then, when filing his tax returns, Breeding only reported the income that was actually included on his statements.
Breeding, who also owns 201 Speedway Racing in Isom, Ky., pleaded guilty in November 2016.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, and Tracey D. Montaño, Special Agent in Charge, IRS Criminal Investigation, Nashville Field Office, jointly announced the sentence.
The case was investigated by IRS Criminal Investigations, and Assistant U.S. Attorneys Kate Anderson and Tiffany Fleming prosecuted the case on behalf of the federal government.
Lawrenceville, Illinois Man Sentenced on Methamphetamine Related ChargesRead the Press Release
Kedly G. Newlin, 57, of Lawrenceville, IL, was recently sentenced to federal prison on methamphetamine related charges, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today.
On March 14, 2017, Newlin was sentenced to 235 months of imprisonment and five years of supervised release following his imprisonment. Newlin previously pleaded guilty to two counts in a federal indictment. Count 1 charged that from November 2015, until June 18, 2016, in Crawford, Lawrence, and Richland Counties, within the Southern District of Illinois, and elsewhere, Newlin and others conspired to distribute methamphetamine. The total amount of methamphetamine involved in the conspiracy was 50 grams or more of crystal methamphetamine, commonly known as "ice." Count 2 charged that on February 17, 2016, in Crawford County, Newlin knowingly and intentionally possessed with the intent to distribute methamphetamine.
The investigation in this case was conducted by the Crawford County Sheriff’s Office, the Robinson, Illinois Police Department, the Bridgeport, Illinois Police Department, the Lawrenceville County Sheriff’s Office, the Richland County Sheriff’s Office, and the Department of Homeland Security.
Investment Adviser Sentenced in Manhattan Federal Court for Insider Trading Scheme Involving Pharmaceutical Industry StocksRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that DAVID HOBSON, a former investment adviser, was sentenced to six months in prison for engaging in a scheme to commit insider trading in connection with deals involving a pharmaceutical company (the “Pharma Company”) at which Michael Maciocio, HOBSON’s friend, client and co-conspirator, worked. HOBSON pled guilty on October 25, 2016, to one count of conspiracy to commit securities fraud and one count of securities fraud before United States District Judge Laura T. Swain, who also imposed today’s sentence.
Acting U.S. Attorney Joon H. Kim said: “David Hobson used his relationship with a childhood friend to obtain inside information, and then traded on that information, making hundreds of thousands of dollars in illegal profits. The securities market must be free and fair for all, and our Office’s commitment to investigating and prosecuting insider trading remains firm.”
According to the allegations contained in the Indictment filed against HOBSON and his co-conspirator and statements made in related court filings and proceedings:
From May 2008 through April 2014, HOBSON and Maciocio participated in a scheme to commit insider trading in advance of, and in connection with, acquisitions and transactions under consideration by the Pharma Company. HOBSON and Maciocio were childhood friends and HOBSON had served as Maciocio’s investment adviser and broker for many years.
Maciocio learned about the impending transactions through his role as a master planner in the Active Pharmaceutical Ingredient Supply Chain Group at the Pharma Company. In that role, Maciocio was tasked with evaluating manufacturing demands and capacity within the Pharma Company and was consulted about potential acquisitions to assist in determining whether the Pharma Company would be able to manufacture any new product in-house. Although Maciocio was not typically provided with the names of the companies targeted for acquisition, he used the inside information he received – including the Pharma Company’s code names for the acquisitions, the drug indications, the dosages, the phases of any clinical trials, and the chemical structure of the drugs – to uncover the true identities of the target companies. At times, HOBSON assisted Maciocio in determining the identities of these target companies based on the inside information Maciocio had obtained as part of his job.
Having learned about these impending transactions, Maciocio, in breach of fiduciary duties and other duties of trust and confidence owed to the Pharma Company, traded on his own behalf and tipped HOBSON, so that HOBSON could use the information to trade for both himself and for Maciocio. HOBSON also used the inside information to trade on behalf of some of his other investment advisory clients.
HOBSON used the inside information that he received from Maciocio to make profitable trades in, among other securities: Medivation, Inc., Ardea Biosciences, Inc., and Furiex Pharmaceuticals, Inc. As a result of the scheme, HOBSON reaped approximately $165,000 in ill-gotten gains for himself, $40,000 for Maciocio, and nearly $150,000 for certain of HOBSON’s other clients.
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In addition to the term of imprisonment, HOBSON, 48, of Providence, Rhode Island, was sentenced to two years of supervised release and was ordered to forfeit $385,664.39.
Maciocio, 47, pled guilty to one count of conspiracy to commit securities fraud, one count of conspiracy to commit wire fraud, and two counts of securities fraud on May 20, 2016. His sentencing has not yet been scheduled.
Mr. Kim praised the work of the Federal Bureau of Investigation, and thanked the U.S. Securities and Exchange Commission.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Aimee Hector and Rebecca Mermelstein are in charge of the prosecution.
Guatemalan national sentenced for immigration crimeRead the Press Release
CHARLESTON, W.Va. – A Guatemalan national was sentenced today to credit for time served for an immigration crime, announced United States Attorney Carol Casto. Obed Zabaleta, 23, previously pleaded guilty to illegally reentering the United States. He has been in federal custody since November 9, 2016, and was remanded to the Department of Homeland Security for deportation proceedings.
Zabaleta had previously been removed from the United States to his home country of Guatemala on July 24, 2014, and again on January 15, 2015. Zabaleta then illegally reentered the United States and was found in Charleston after a traffic stop by the West Virginia State Police on November 9, 2016, on I-79 near Exit 1. Zabaleta had not formally applied for permission to legally reenter the United States and was not otherwise in the United States legally.
The Department of Homeland Security conducted the investigation, with assistance from the West Virginia State Police. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
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Gowanda Man Arrested and Charged with Production and Distribution of Child PornographyRead 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 Shane Michael Aurand, 20, of Gowanda, NY, was arrested and charged by criminal complaint with production and distribution of child pornography. The charges carry a mandatory minimum sentence of 15 years in prison, a maximum of 30 years, and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque who is handling the case, stated that according to the complaint, in March 2017, the defendant started communicating with an undercover law enforcement agent on the messaging application Kik. Aurand shared sexually explicit pictures of a seven-year-old child that he produced while babysitting the child at his house. The defendant also offered to send the undercover agent pictures of other children if he received child pornography in return.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and is being held pending a detention hearing on March 16, 2017, at 10:15 a.m.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
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.
Four Charged with Criminal Contempt of Court for Refusing to Testify at TrialRead the Press Release
PITTSBURGH – Three residents of Duquesne, Pennsylvania, and a resident of New Jersey, have been indicted separately by a federal grand jury in Pittsburgh, Pennsylvania, on charges of criminal contempt of court, Acting United States Attorney Soo C. Song announced today.
The one-count indictments, returned yesterday, named Khayri Battle, 36, of Newark, New Jersey, Shane Brooks, 30, Victoria Morgan, 32, and Bobby Rodgers, 48, all of Duquesne, Pennsylvania, as defendants.
According to the indictments, Battle, Brooks, Morgan and Rodgers refused to testify at the trial of Anthony Pryor and Lance Yarbough, for charges that included conspiracy to possess with intent to distribute and to distribute heroin, despite a written order compelling them to testify pursuant to a grant of immunity from United States District Court Judge Reggie B. Walton.
The law provides for an indeterminate prison sentence, an indeterminate fine, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the indictment.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former L.A. County Sheriff Lee Baca Found Guilty of Orchestrating Scheme to Obstruct Federal Investigation into JailsRead the Press Release
LOS ANGELES – Former Los Angeles County Sheriff Lee Baca was found guilty today of leading a conspiracy to obstruct justice by overseeing a scheme designed to impede a federal investigation into corruption and civil rights abuses at county jail facilities. Baca was also convicted of lying to federal investigators when he denied knowledge of key aspects of the obstruction plot.
After about two days of deliberations, a federal jury found that Baca authorized and condoned a scheme that now has resulted in the conviction of 10 former members of the Sheriff’s Department. During the trial, prosecutors described Baca as being the top figure in the conspiracy, which also involved his right-hand man and deputies who implemented orders from the Sheriff.
The jury convicted Baca on three felony counts: conspiracy to obstruct justice, obstruction of justice and making false statement to federal investigators. As a result of today’s guilty verdicts, Baca, 74, faces a statutory maximum sentence of 20 years in federal prison.
United States District Judge Percy Anderson, who has presided over several trials involving members of the conspiracy, is expected to schedule a sentencing hearing during a status conference on Monday.
The obstruction plot began in August 2011 after LASD officials discovered a cell phone in an inmate’s cell at the Men’s Central Jail, linked the phone to the FBI’s Civil Rights Squad and learned that the inmate was an FBI informant. The cell phone had been smuggled into the jail by a corrupt deputy who took bribes. The FBI developed the informant as part of an investigation into the county jail system, which for years had been the subject of allegations of inmate abuse and subsequent cover-ups. The evidence presented at trial showed that the Sheriff wanted to avoid federal scrutiny of his troubled jails.
As part of the obstruction scheme, Baca ordered a criminal investigation of the FBI agents conducting an undercover investigation, and he directed that the informant be concealed from federal investigators. Members of the conspiracy then hid the informant from federal authorities, engaged in witness tampering in an effort to prevent information from being shared with federal authorities, and threatened to arrest the lead FBI agent on the case.
While Baca put his right-hand man, then-Undersheriff Paul Tanaka, in charge of the scheme, Baca participated in dozens of meetings and phone calls with members of the conspiracy and admitted directing his deputies to approach the FBI agent. Baca participated in the scheme after being warned by a top deputy that the actions would amount to obstruction of justice.
“The former sheriff has now been held accountable for overseeing a widespread scheme to obstruct justice by issuing orders designed to protect a corrupt culture,” said Acting United States Attorney Sandra R. Brown. “As the Sheriff for Los Angeles County, Mr. Baca had a duty to uphold the law, a duty he utterly failed when he played an active role in undermining a federal investigation into illegal conduct at the jails. Today’s verdict shows that no one is above the law.”
“By obstructing the rule of law, Mr. Baca failed both the dedicated men and women of the largest sheriff’s department in the country, as well as the community he swore to serve,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “As this dark chapter for the LASD nears to a close and the department embarks upon reform under new leadership, we owe a debt of gratitude to the agents and prosecutors who worked on this case over several years and, at times, under very difficult circumstances. Their unfailing commitment to this case and to rooting out corrupt officials can only restore faith in law enforcement going forward.”
The case against Baca is the result of an investigation by the Federal Bureau of Investigation and is one in a series of cases resulting from the investigation into county jail facilities in downtown Los Angeles that has resulted in 21 convictions.
As a result of today’s verdicts, Baca becomes the tenth member of the Los Angeles Sheriff’s Department to be convicted in the obstruction scheme, including former Undersheriff Paul Tanaka, who was sentenced to five years in federal prison.
Eleven other former deputies have been convicted of federal charges, mostly related to unprovoked beatings of inmates and subsequent cover-ups.
The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Brandon Fox, Chief of the Public Corruption and Civil Rights Section; Assistant United States Attorney Lizabeth A. Rhodes, Chief of the General Crimes Section; and Assistant United States Attorney Eddie A. Jauregui of the Major Frauds Section.
Former Global Law Firm Partner Convicted of Insider TradingRead the Press Release
Earlier today, following a week and a half trial, a federal jury in Brooklyn, New York, returned a guilty verdict against Robert Schulman, a former partner of a Richmond-based global law firm, for securities fraud and securities fraud conspiracy. The indictment charged crimes stemming from Schulman tipping off the executive of an investment advisory firm about the pending merger between Pfizer, Inc. and King Pharmaceuticals, Inc. that Schulman had learned of through his representation of King Pharmaceuticals. Schulman and his co-conspirators then used that material non-public information to engage in securities transactions ahead of the merger announcement that resulted in more than $400,000 in illegal profits.
When sentenced by United States District Judge Joan M. Azrack, the defendant faces a maximum sentence of 20 years’ imprisonment.
The verdict was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and Philip Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS).
Ms. Rohde thanked the USPIS for its hard work and dedication in leading the investigation and expressed her appreciation to the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG) for their cooperation and assistance.
The government’s case is being prosecuted by Assistant United States Attorneys David Pitluck and Julia Nestor of the Office’s Business and Securities Fraud Section.
The Defendant:
ROBERT SCHULMAN
Age: 58
McLean, Virginia
E.D.N.Y. Docket No. 16-CR-442 (JMA)
Former Bibb County Public Schools Employee Pleads Guilty to Student Loan FraudRead the Press Release
G.F. “Pete” Peterman, III, United States Attorney for the Middle District of Georgia, announces Queen Adeboyejo, age 64, of Perry, Georgia entered a guilty plea in federal court in Macon to Student Loan Fraud on March 15, 2017 before the Honorable Leslie Abrams, United States District Judge. Through her plea, Ms. Adeboyejo admitted that she obtained federal student loans fraudulently by using the personal identifying information of three individuals to file bogus endorsements necessary to obtain the loans.
Ms. Adeboyejo was pursuing her doctoral degree and was denied additional federal student aid due to her poor credit. In order to qualify for further federal student loans, it was required that she have another person sign an endorser addendum agreeing to repay her loans if she did not. Without their knowledge or consent, Ms. Adeboyejo obtained the personal identifying information (PII) of three individuals, one of whom she used to work with at the Bibb County Public Schools, and used the PII to create and submit forged endorsement addendums online. As the result of these addendums, Ms. Adeboyejo obtained $18,828.00 in federal student loans with one endorser and $75,166.00 in federal student loans with another endorser. She also attempted to obtain a total of $150,000.00 in federal student loans with another person as an endorser.
"Scams like this steal money from hardworking taxpayers and legitimate students and that is unacceptable," said Yessyka Santana, Special Agent in Charge of the U.S. Department of Education Office of Inspector General's Southeastern Regional Office. "The OIG is committed to fighting student financial aid fraud and we will continue to aggressively pursue those that participate in these types of crimes."
“Ms. Adeboyejo stole from the government student loan program, she stole from deserving students who were qualified to receive the money she fraudulently obtained, and she damaged the credit of those whose identities she stole to carry out her scheme,” said United States Attorney Peterman. “I commend the good work of the investigators at both the U. S. Department of Education Office of Inspector General and the Bibb County Sheriff’s Office for their fine work and cooperation in bringing Ms. Adeboyejo to justice.”
Sentencing has been scheduled for June 26, 2017 in Macon. At sentencing, Ms. Adeboyejo faces a maximum sentence of five years imprisonment, a maximum fine of $250,000, or both, and a term of supervised release of three years. As part of her plea, Ms. Adeboyejo has also agreed to pay $123,732.18 in restitution to the United States Department of Education.
This case was investigated by the U.S. Department of Education - Office of Inspector General and the Bibb County Sheriff’s Office - Property Crimes Division. Assistant United States Attorney Beth Howard is handling the prosecution for the Government.
Questions concerning this case should be directed to Brittney Kish Lightsey, United States Attorney’s Office, at (478) 621-2735.
Former Attorney Pleads Guilty to Bankruptcy FraudRead the Press Release
Tampa, FL – Acting United States Attorney W. Stephen Muldrow announces that Josiah E. Hutton (60, Winter Haven) today pleaded guilty to concealment of assets from a bankruptcy estate. He faces a maximum penalty of five years in federal prison. Sentencing has been set for June 5, 2017.
According to the plea agreement, Hutton was retained to represent a debtor who was planning to file for bankruptcy. In anticipation of filing a bankruptcy petition, Hutton received a settlement check, which was property of the debtor’s bankruptcy estate, and deposited it into his attorney escrow account. Hutton later prepared and certified the debtor’s bankruptcy petition, yet he failed to list the settlement check as an asset, thereby concealing the asset from creditors and the Bankruptcy Court.
This case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. It is being prosecuted by Special Assistant United States Attorney Chris Poor.
Final Defendant in Tax Scheme Sentenced in Federal CourtRead the Press Release
Lynchburg, VIRGINIA – A Lynchburg-based tax preparer, who along with two of his employees were preparing false tax returns in order to claim fictitious Earned Income Tax Credits, was sentenced today in the United States District Court for the Western District of Virginia in Lynchburg, Acting United States Attorney Rick A. Mountcastle announced.
Jackie G. Woodson Jr., of Lynchburg, previously pled guilty to one count of conspiracy to commit false claims. Today in District Court, Woodson was sentenced to 18 months in federal prison. Terry R. Rose was previously sentenced to 18 month in federal prison for her role in the conspiracy and Stella Hester-Jenkins was sentenced to 3 years’ probation.
According to evidence presented to the court during previous hearings by Assistant United States Attorneys C. Patrick Hogeboom III and Charlene R. Day, Woodson owned a Colbert/Ball Tax Service franchise in Lynchburg, Va., Rose and Hester-Jenkins were employed by Woodson as tax preparers.
Following an investigating by the Internal Revenue Service, it was determined that Woodson, Rose and Hester-Jenkins, were preparing and filing tax returns, which reported fictitious Schedule C income, which resulted in increased Earned Income Tax Credits and refunds. The conspirators often took these actions by claiming Schedule C income through babysitting or childcare income where none actually existed or by greatly exaggerating the amount of income being earned through these activities.
The Internal Revenue Service conducted the investigation of the case. Assistant United States Attorney C. Patrick Hogeboom III and Charlene R. Day prosecuted the case for the United States.