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Friday 10 March 2017
United States Attorney Ronald W. Sharpe Announces ResignationRead the Press Release
St. Thomas, USVI – United States Attorney Ronald W. Sharpe has announced his resignation effective midnight on March 10, 2017. Mr. Sharpe served as United States Attorney since September 2009.
"To serve as United States Attorney for the District of the Virgin Islands has been the highest honor of my professional career," Sharpe said. "Every day, I was inspired by the dedication of the attorneys and members of the United States Attorney’s Office, to do my best to represent the residents of the Virgin Islands and defend the rule of law. I am extremely proud of the work the United States Attorney’s Office has accomplished in and out of the courtroom, including building meaningful bonds of trust with the community we serve. I am confident that the extraordinary professionals of the United States Attorney’s Office will remain tirelessly devoted to the pursuit of justice on behalf of the residents of the Virgin Islands and our great nation."
Sharpe, a graduate of Tulane University and Stanford Law School, began his career with the U.S. Department of Justice in 1995, serving as an Assistant United States Attorney in the District of Columbia. Sharpe had previously served as First Assistant United States Attorney in the District of the Virgin Islands. During his tenure as United States Attorney, Sharpe served on the Attorney General’s Advisory Committee (AGAC), and on several subcommittees of the AGAC, including the Borders and Immigration Subcommittee and the Environmental Crimes Working Group. Sharpe also served as the chairperson of the Puerto Rico/USVI High Intensity Drug Trafficking Area (HIDTA) program.
When he assumed the role of United States Attorney, Sharpe designated the top priorities of the District, including aggressively fighting public corruption, which historically has challenged law enforcement’s efforts to effectively address crime in the Virgin Islands. This focus led to significant prosecutions that have enabled federal and local law enforcement and other government institutions operating in the Virgin Islands to enforce the rule of law and strengthen their resistance to continued corruption. Some of the significant public corruption cases handled by the office over the past seven years include:
• Roberto Tapia, a former Director of Environmental Enforcement for the Virgin Islands Department of Planning and Natural Resources (DPNR), was sentenced to 70 months in prison for using DPNR as a criminal enterprise to engage in illegal drug trafficking activities including the possession and trafficking of numerous kilos of cocaine.
• Louis "Lolo" Willis, the former Executive Director of the Virgin Islands Legislature, was sentenced to five years in prison for federal programs bribery and extortion under color of official right for accepting bribes from contractors.
• Alvin Williams, Jr., a former Virgin Islands senator, was sentenced to 52 months in prison in connection with his guilty plea to racketeering, that is, operating and participating in a criminal enterprise whose members and associates engaged in illegal activities including bribing a Virgin Islands public official, soliciting and receiving bribes from numerous St. Thomas construction project developers, fraudulently soliciting and increasing staff members’ salaries, and using the increase of funds for his personal use.
• Virgin Islands Police Department (VIPD) Captain Enrique Saldana, VIPD Sergeant George Green and civilian Luis Roldan were found guilty of the federal charges of conspiracy to commit extortion and extortion, and the Virgin Islands charges of conspiratorial extortion, extortion under color of official right, conflict of interest and solicitation and receipt of a bribe. Greene was sentenced to 36 months’ imprisonment and Saldana was sentenced to 41 months’ imprisonment. Prior to sentencing, Roldan was murdered.
• Former VIPD officers Enid Edwards and Francis Brooks were sentenced to 151 months in prison for operating a criminal enterprise ("RICO") as well as federal and territorial crimes related to extortion, bribery and conspiracy to distribute controlled substances. Former Virgin Islands Port Authority Officer Bill John- Baptiste was convicted of false imprisonment and kidnapping and sentenced to five years in prison.
Sharpe also made civil rights a priority in the Virgin Islands, focusing on removing barriers to access for persons with disabilities under the Americans with Disabilities Act ("ADA"). As a result of an investigation initiated by the United States Attorney’s Office, Caribbean Cinemas agreed to remedy potential violations of the ADA at its theaters by increasing accessible seating, making restrooms accessible and providing assisted-listening and closed-captioned systems for the hearing impaired.
With an emphasis on prevention, Sharpe helped foster a robust outreach program in the district. Projects included implementation of the United States Attorney’s Office Community Outreach Initiative, a series of community meetings throughout the Virgin Islands where members of law enforcement and social services groups engage in an open forum to discuss how criminal activity affecting their community, especially gun violence, can best be addressed. Participants in the Community Outreach Initiative included the Virgin Islands Police Department, ATF, DEA, FBI, the United States Marshals Service, Crime Stoppers, Virgin Islands Housing Authority, My Brothers Workshop and Weed & Seed St. Thomas and St. Croix. In addition, Sharpe encouraged greater community involvement, including a volunteer program with the United States Attorney’s Office and the Boys and Girls Club of the Virgin Islands.
The District of the Virgin Islands covers the Divisions of St. Thomas and St. John, and St. Croix. The United States Attorney’s Office has 15 attorneys and is responsible for conducting all criminal and civil litigation in the district involving the United States government.
United States Attorney Peter F. Neronha Stepping DownRead the Press Release
PROVIDENCE – At the direction of the President, United States Attorney Peter F. Neronha today announced his resignation, effective at midnight. Mr. Neronha joins all of the other United States Attorneys appointed by President Obama in stepping down today.
Mr. Neronha, the 39th person to be appointed United States Attorney for the District of Rhode Island, began a career of public service in 1996 as a Special Assistant Attorney General in the Rhode Island Department of the Attorney General. In 2002, Mr. Neronha joined the United States Attorney’s Office as an Assistant United States Attorney. Since becoming United States Attorney, Mr. Neronha has twice been appointed to terms on the Attorney General’s Advisory Committee, by Attorney General Eric Holder in 2009, and by Attorney General Loretta Lynch in 2016. The AGAC regularly meets with and advises the Attorney General on policy, management and operational issues impacting all 94 U.S. Attorney’s offices nationwide.
A fourth generation native of Jamestown, Mr. Neronha attended North Kingstown High School, and in 1985 graduated summa cum laude from Boston College. He attended Boston College Law School, where he was a member of the Boston College Law Review. Upon graduation, he joined the Boston, Massachusetts law firm, Goodwin Procter, LLP.
United States Attorney Peter F. Neronha released the following statement:
“It has been the honor and privilege of my professional life to serve the people of Rhode Island as United States Attorney for nearly eight years. When I began my career in public service as a state prosecutor over twenty years ago, I never could have anticipated what the future would hold. I am incredibly grateful to President Obama, and to Senators Reed and Whitehouse, who recommended me to the President, for their confidence in me.
“I have met and worked with so many great and talented people along the way, both in law enforcement and in the community, and we have done so much together. We have faced so many challenges, from the steady stream of public corruption cases to the scourge of human trafficking, particularly child sex trafficking. International drug cartels and prescription pill misuse have caused our ongoing opioid and heroin public health crisis, threatening the lives of children and adults alike. Violent crime, and a criminal justice system not best equipped to deal with it, has challenged us to rethink our mission as prosecutors and law enforcement – to understand that prevention and effective re-entry for those who have paid their debt to society have their place alongside smart enforcement.
“Whatever we have accomplished, none of it would have been possible without the dedication and outstanding ability of the men and women of the Office I have been so fortunate to lead. Some have been my colleagues for nearly fifteen years, and I will miss them all, very, very much. Given the nature of this job there is never a perfect time to step away. With enormous gratitude toward those who have been so supportive during my tenure, my family and I look forward to the next chapter of our lives.”
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United States Attorney Eileen M. Decker ResignsRead the Press Release
LOS ANGELES – Eileen M. Decker today resigned from the position of United States Attorney for the Central District of California at the request of the President.
“It has been an honor to serve the people of the Central District of California as the United States Attorney,” Ms. Decker said. “I am awed by the dedication of the Assistant United States Attorneys, support staff, and law enforcement officers who are committed to our public safety and national security. I thank all of them for their continued service.”
Ms. Decker became the United States Attorney in June 2015. During her 20 months in the position, she restructured the Office in an effort to confront modern challenges.
Approximately one month after taking office, Ms. Decker created the National Security Division (NSD), which joined Criminal, Civil and Tax as the units of the office that litigate cases on behalf of the United States. NSD combined two sections formerly in the Criminal Division – the Terrorism and Export Crimes Section and the Cyber and Intellectual Property Crimes Sections. NSD combined these two units so they could work cooperatively to gather intelligence and disrupt national security threats more effectively.
Within hours of the December 2, 2015 San Bernardino terrorist attack, prosecutors in the NSD were embedded with law enforcement, assisting in the response to the attacks and the investigation in the aftermath. Although the shooters were killed by law enforcement, the investigation resulted in the indictment and convictions of three of the shooters’ family members, as well as Enrique Marquez Jr., who purchased the assault weapons used in the attack. Prosecutors are also seeking to forfeit the male shooter’s life insurance proceeds.
The San Bernardino investigation highlighted the challenge to law enforcement posed by encryption technology. The office litigated the high-profile case against Apple over the San Bernardino shooter’s iPhone. Although that case was withdrawn when the Federal Bureau of Investigation was able to unlock the phone without Apple’s assistance, the issue brought national attention to the problem of “going dark.”
Ms. Decker’s tenure also saw the convictions of two Anaheim men who received 30-year sentences for attempting to join the Islamic State of Iraq and the Levant (ISIL). Another Orange County man was also convicted and received a 15-year sentence for his support of ISIL.
While United States Attorney, Ms. Decker also oversaw the conviction and sentencing of Paul Ciancia, who murdered Transportation Safety Administration Transportation Security Administration officer Gerardo Hernandez and was sentenced to life plus 60 years in federal prison.
As United States Attorney, Ms. Decker placed particular emphasis on the prosecution of violent crime and human trafficking cases.
The office tripled the number of illegal weapons prosecutions between 2014 and 2016, including four convictions in two days recently. Ms. Decker also oversaw convictions and significant sentences for a wide variety of offenders who contribute to violent crime, including Mexican Mafia members, Florencia 13 gang members, robbers who brandished firearms, and criminals who illegally sold firearms.
Prosecutors obtained a 40-year sentence against Gardena gang member and long-time pimp Laron Darrell Carter for the sex trafficking of children. Carter’s conduct spanned a decade as he prostituted girls as young as 13 and subjected some of them to beatings.
In a groundbreaking case, the office obtained a 57-month sentence against Charles Goswitz of Torrance who sought to hire a 16-year-old girl for sex. This was the first federal conviction in Los Angeles of a “John,” or customer, in a teen sex-trafficking prosecution.
While the United States Attorney, Ms. Decker supervised a number of high-profile cases in the area of Public Corruption and Civil Rights.
Last summer, the United States Attorney’s Office brought civil rights charges against seven members and affiliates of the “Big Hazard” street gang in relation to their firebombing of African American families in Boyle Heights. The case remains pending trial.
The United States Attorney’s Office has successfully resolved criminal and civil investigations into the Los Angeles Sheriff’s Department’s treatment of inmates in its jails. These investigations resulted in the successful prosecutions of 20 former members of the Sheriff’s Department and a settlement agreement permitting federal monitoring of the jails.
Last year, former California State Senator Ron Calderon was convicted of receiving bribes, and his brother, Thomas Calderon, was convicted of laundering bribe money. The former state lawmaker received a 42-month sentence, and his brother received a sentence of one year and one day of incarceration.
Ms. Decker has hired approximately one-quarter of the 270 Assistant United States Attorneys in the office. These new AUSAs are a diverse group of women and men from a broad spectrum of experiences.
United States Attorney Christopher A. Crofts Announces His ResignationRead the Press Release
Cheyenne, Wyoming – United States Attorney Christopher A. Crofts has announced that he will resign his position with the Department of Justice, effective midnight March 10, 2017.
"It has been my distinct pleasure to work with the men and women of the Wyoming United States Attorney’s Office for the past seven years. I thank them and the law enforcement community for their tireless efforts in the pursuit of justice on behalf of the citizens of Wyoming and the United States," USA Crofts said.
U.S. Attorney's Office Concludes Investigation into Fatal Shooting of Carjacking Suspect in Southeast WasingtonRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia announced today that it has completed its review of the actions of four officers from the Prince George’s County and Forest Heights, Md., Police Departments who were involved in the fatal shooting of James W. Covington, Jr. on Nov. 2, 2015, following a carjacking in Maryland and a police pursuit into Washington, D.C. After a careful review of all of the evidence, the U.S. Attorney’s Office has concluded that there is insufficient evidence to pursue federal criminal civil rights or District of Columbia charges against the officers involved in the fatal shooting of Mr. Covington.
The U.S. Attorney’s Office and the Metropolitan Police Department (MPD) conducted a comprehensive review of the incident, including interviews of civilian and law enforcement witnesses as well as a review of forensic and autopsy reports, photographs, diagrams, physical evidence, recorded radio communications, video evidence, and reports from law enforcement agencies and the District of Columbia Department of Fire and Emergency Medical Services.
According to the evidence, the shooting took place on Nov. 2, 2015, at approximately 7:30 p.m., in the 2800 block of Gainesville Street SE. It followed a chain of events that began at 7:15 p.m., when a 2011 Toyota Camry was stolen from a man during an armed carjacking and assault in Fort Washington, Md. The Prince George’s County Police Department responded within minutes of the crime, and a look-out was broadcast with a description of the vehicle and the suspect.
A Prince George’s County police officer spotted the vehicle a quarter mile from where it was stolen, followed it a short distance, and then activated his lights and siren. The Camry’s driver, later identified as Mr. Covington, failed to stop, and other officers joined the pursuit. Once Mr. Covington reached Route 210, he increased his speed to 85 to 95 mph. When the pursuit crossed into Forest Heights, Md., two Forest Heights police officers responded to a call for assistance. A police helicopter was also dispatched to assist with the pursuit. As the pursuit approached the Suitland Parkway and 30th Street SE in Washington, D.C., the carjacked vehicle hit a curb and the front tire became flat. Mr. Covington did not stop. Mr. Covington continued onto Naylor Road SE, before turning left onto Gainesville Street SE.
According to the evidence, Mr. Covington bailed out of the car and attempted to flee on foot, at one point jumping over a fence. He did not respond to orders from police to stop or show his hands. During a foot pursuit, Mr. Covington was armed with a gun and he pointed the weapon at police. The four officers from Prince George’s County and Forest Heights, who were involved in the pursuit, discharged their weapons during the confrontation, fatally wounding Mr. Covington.
Mobile Crime technicians recovered a 9mm Luger semi-automatic handgun near Mr. Covington’s body. The handgun had one round in the chamber and 11 rounds in the magazine; the magazine has a capacity of 15 rounds. Two of the officers involved in the shooting reported that they believed Mr. Covington fired the gun during the confrontation, but no shell casings were found and there is insufficient evidence to determine whether Mr. Covington had recently fired the weapon.
An autopsy determined that Mr. Covington, 62, died from multiple gunshot wounds.
After a careful, thorough, and independent review of the evidence, federal prosecutors have found insufficient evidence to prove beyond a reasonable doubt that the officers used excessive force under the circumstances. To the contrary, there is sufficient evidence that the officers were acting in self-defense at the time of the shooting.
Use-of-force investigations generally
The U.S. Attorney’s Office reviews all police-involved fatalities to determine whether sufficient evidence exists to conclude that any officers violated either federal criminal civil rights laws or District of Columbia law. To prove such violations, prosecutors must typically be able to prove that the involved officers willfully used more force than was reasonably necessary. Proving “willfulness” is a heavy burden. Prosecutors must not only prove that the force used was excessive, but must also prove, beyond a reasonable doubt, that the officer acted with the deliberate and specific intent to do something the law forbids. A conclusion that “there is insufficient evidence” is not meant to suggest anything further about what evidence, if any, exists.
The U.S. Attorney’s Office remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are fully and completely investigated. The Metropolitan Police Department’s Internal Affairs Division investigates all police-involved fatalities in the District of Columbia.
U.S. Attorney Polite to Step Down on March 24thRead the Press Release
Kenneth A. Polite, United States Attorney for the Eastern District of Louisiana, has announced that he has submitted his resignation to President Trump and Attorney General Sessions, effective on March 24, 2017.
Polite stated, “I have enjoyed this great opportunity to serve as U.S. Attorney here in Southeast Louisiana. More importantly, it has been the highest honor to lead this Office’s outstanding employees who are committed to the ideals of collegiality, diligence, and professionalism. I am confident that these public servants will continue to ensure that justice reaches out to all residents of this region. Regardless of my title or position, I will always work to improve the lives of our region’s residents, especially our young people.”
Polite, age 41, began his tenure in September 2013, during one of the most difficult periods in the Office’s history. He will depart after having focused on improving the Office’s prosecutorial efficiency and transparency, strengthening its regional collaboration with both law enforcement and the residents they serve, and fostering greater community interest in both prevention and reentry as necessary tools for improving public safety.
Polite realigned the Office’s personnel to better reflect its prosecutorial priorities. In addition to increasing the number of prosecutors handling violent crime matters, Polite established the Office’s first dedicated Public Integrity Unit, responsible for investigating public corruption and civil rights violations. He also strengthened the Office’s National Security Unit, adding six AUSAs to address terrorism, immigration, and environmental matters. Over the past 3.5 years, the Office’s enforcement efforts resulted in, among other matters, convictions of:
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several multi-defendant gang organizations responsible for terrorizing the region through drug trafficking, gun violence, and homicides;
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several high-profile political corruption defendants, including the former Mayor of New Orleans and the former District Attorneys of St. Tammany and St. Charles Parishes;
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various former law enforcement officers responsible for criminal violations of civil rights;
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numerous child pornographers throughout the country, particularly as part of Operation Roundtable;
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clinics, physicians, and medical staff, as part of multi-million-dollar health care fraud schemes;
individual and corporate polluters of the region’s waterways; and
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more human traffickers than in any prior U.S. Attorney’s tenure in the Office’s history, including the country’s first conviction of a motel operator for benefitting from sex trafficking.
Polite also emphasized transparency of the Office’s work. The Office now issues a press release at the charging, conviction, and sentencing phases of every criminal matter. Internally, Polite issued a weekly office report, advising his staff of the tremendous criminal, civil, outreach, and administrative work being done across the Office. In collaboration with the U.S. Probation Office, the Federal Defenders’ Office, and the federal judiciary, the Office also began sharing Pretrial Risk Assessment scores with all parties – defendants, counsel, prosecutors, and judges – in a criminal matter, resulting in a significant decrease in unnecessary pretrial detention.
From the outset of his tenure, Polite focused on reestablishing the Office’s regional presence. Polite regularly traveled throughout all 13 parishes, seeking to improve working relationships and communication with community leaders, educators, students, and law enforcement. Local, state, and federal law enforcement officials from across the region regularly attended training sessions and conferences hosted by the Office.
Under Polite’s leadership, the Office brought to the region two well-known initiatives – the Student Pledge Against Gun Violence and Project LEAD – as means of empowering young people to help reduce violence. Through these programs the Office and its employees engaged with thousands of young people each year. Polite also established the Crescent City Keepers, a ground-breaking organizational mentoring initiative focusing on youth most at risk of becoming homicide victims.
The successful reentry of formerly incarcerated individuals was a notable priority for Polite. In partnership with the New Orleans Business Council, the New Orleans Chamber of Commerce, and numerous local businesses, he created the 30-2-2 Reentry Collaborative, a workforce pipeline for ex-offenders returning to the Southeast Louisiana community. The initiative now offers valuable support for state and federal reentry courts and their participants. In collaboration with the U.S. Probation Office, the Federal Defenders’ Office, and the federal judiciary, the Office developed the LEAP program, where low-level offenders with verified substance addictions receive treatment, counseling, educational resources, and employment training, rather than long-term incarceration. Polite also regularly visited many of the state and federal prison facilities in Louisiana, addressing incarcerated individuals about the potential resources available to assist in their successful return to their communities.
In April 2015, then-Attorney General Lynch appointed Polite to serve on the Attorney General's Advisory Committee ("AGAC"). The AGAC serves as the voice of the 93 U.S. Attorneys across the nation and provides advice and counsel to the Attorney General and other senior leaders in the U.S. Department of Justice on policy, management, and operational issues. In addition, Polite served as a member of the AGAC Subcommittees on Violent and Organized Crime, White Collar Crime, and Civil Rights, as well as the Smart on Crime Working Group.
Polite has received numerous awards for his leadership as U.S. Attorney, including the Leadership in the Law award from New Orleans City Business, the Goldman Criminal Justice Reform award from Court Watch NOLA, and the Community Light in Mentorship award from Each One, Save One. Loyola University Law School awarded him an honorary Doctorate of Laws, and De La Salle High School, where Polite graduated as valedictorian, endowed a scholarship in his name to honor a graduating senior who has excelled in scholarship and leadership.
Polite has become a nationally-recognized public speaker, offering his powerful personal story and voice on issues such as civic empowerment, community trust, and criminal justice reform. He has addressed audiences at Stanford, Yale, Columbia and New York University law schools, countless civic organizations, and most importantly, elementary, secondary, undergraduate, and graduate schools across Louisiana.
Polite and his family will continue to reside in New Orleans. Details regarding his future endeavors, in both the public and private sectors, are forthcoming.
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U.S. Attorney Daly Announces ResignationRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced her resignation, effective immediately.
“It has been a great honor and privilege to serve as Connecticut’s United States Attorney. In fact, it has been a gift of a lifetime. I am extremely proud of the tremendous accomplishments of the men and women of this office during my tenure. I applaud their tireless work holding our most violent offenders accountable, protecting our children and our environment, standing up for our most vulnerable victims, and not hesitating to stand up to the powerful. Together, we also built bridges and trust with communities. I hope all of this work continues to thrive. The people of Connecticut will be in excellent hands with Acting U.S. Attorney Mike Gustafson, and the more than 100 career employees of the office who dedicate themselves to always doing what is right and just.”
First Assistant U.S. Attorney Michael J. Gustafson will be the Acting U.S. Attorney.
The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation. The Office is composed of approximately 63 Assistant U.S. Attorneys and approximately 52 staff members at offices in New Haven, Hartford and Bridgeport.
U.S. Attorney Announces ResignationRead the Press Release
Spokane – United States Attorney Michael C. Ormsby, of Spokane, Washington, has announced his resignation effective midnight March 10, 2017.
Ormsby, a graduate of Gonzaga University, had previously practiced with Lukins & Annis, P.S. and K&L Gates for 29 years prior to his appointment. During his tenure as United States Attorney, he served as the co-chair of the Marijuana Working Group and also served on the Native American Issues Criminal Practice Committee. The Criminal Practice and Northern Border Security and Strategies Subcommittees of the Attorney General’s Advisory Committee.
Michael C. Ormsby, stated “It has been an honor to serve in this position and has been the pinnacle of my professional life.” “Eastern Washington is very well served by the attorneys and staff of the U.S. Attorney’s Office.” “I am very proud of the law enforcement partnerships, the work with Tribal communities, and the high quality of legal work done by those in the office.”
The Eastern District of Washington includes twenty Washington counties east of the crest of the Cascade Mountains. The United States Attorney’s Office, with staffed offices in Spokane and Yakima, Washington, has 28 attorneys and is responsible for conducting all criminal and civil litigation in the district involving the United States government.
Two Teenagers, Charged as Adults, Sentenced to Prison Terms for Armed Robbery in Northeast WashingtonRead the Press Release
WASHINGTON – Jabarr Emerson Jr. and Dalonte Stewart, both 16 years old and from Washington, D.C., have been sentenced to prison terms for robbing two people inside their home last September in Northeast Washington, U.S. Attorney Channing D. Philips announced today.
Emerson and Stewart were charged as adults given the serious nature of their crimes. Emerson pled guilty in the Superior Court of the District of Columbia in January 2017, and Stewart in December 2016, to armed robbery for their roles in the crime. Emerson also pled guilty to robbery in a separate case.
The Honorable Maribeth Raffinan sentenced both defendants to four years in prison for the armed robbery. She also sentenced Emerson to an additional 18 months in prison for the second robbery offense. Following their prison terms, both will be placed on five years of supervised release. Emerson was sentenced today and Stewart was sentenced March 9, 2017.
According to the government’s evidence, on Sept. 22, 2016, at about 12:45 a.m., Emerson, Stewart, and an accomplice, all wearing masks, approached a woman in the 1900 block of Lincoln Road NE. One assailant grabbed the victim from behind and placed her in a chokehold while pointing a handgun to her head. The group demanded her money, and she replied that she did not have any. When asked where her money was located, she told them that it was inside her apartment, and the three then forced the victim into her home.
Once inside the apartment, the assailants realized that a man was also present, and subsequently they held him at gunpoint and demanded his money, too. The victims told the assailants that they had a safe and where the key could be found. The assailants retrieved the key, located the safe, opened the safe, and took approximately $400.
Emerson also pled guilty to a second robbery on Aug. 26, 2016, also in Northeast Washington. In this instance, at 2:50 a.m., the victim had just arrived at his home in the unit block of R Street NE. He was walking into his basement apartment when Emerson and a second assailant approached from behind. The victim heard a noise, turned around, and saw Emerson and his cohort, wearing hooded sweatshirts tied around their faces, with long guns that appeared to be sawed-off shotguns. One of the assailants demanded that the victim open the door, get on his knees, and crawl through the door while the gun was placed to the back of his head. Once inside the residence, the two intruders demanded the man’s money and other property. The man gave them $40, an iPhone and several credit cards. The two also took the man’s two laptops, and one also went through the man’s pockets. They then asked if anyone else was home. When they learned that a roommate was in a bedroom, one of the assailants went inside. The roommate woke up when the bedroom lights were turned on, and he saw one of the intruders pointing a sawed-off shotgun at his head. The intruder went through the roommate’s suitcase and pants, walked out of room with two credit cards, and he and his accomplice left the residence.
Emerson and Stewart were arrested in November 2016.
In announcing the sentences, U.S. Attorney Phillips commended the work of those who investigated the cases from the Metropolitan Police Department. He also expressed appreciation for the assistance provided by the Latent Fingerprint Unit of the District of Columbia Department of Forensic Sciences. Finally, he acknowledged the efforts of Assistant U.S. Attorneys Richard Barker and Vivien Cockburn, who prosecuted the matter.
Two Sentenced in Multi-Million Dollar ID Theft, Tax Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – Two Central Falls women were sentenced to 3 years in federal prison today for their roles in a long-running scheme to use the stolen identities of more than 400 individuals on fraudulent tax returns resulting in the theft of more than $2.6 million in fraudulent tax refunds.
Erika Tomasino, 44, was sentenced by U.S. District Court Chief Judge William E. Smith to 36 months in federal prison, having been convicted of one count of conspiracy, one count of theft of government property, three counts of mail fraud, three counts of money laundering and one count of aggravated identity theft. Tomasino was also ordered to pay $1,817,431 in restitution. Tomasino was the bookkeeper and secretary of Juan Vasquez, 53, of Providence, a businessman and the mastermind behind the long-running scheme.
Doris Morel, 44, of Central Falls, a full-time cashier at the former Dominican Supermarket in Pawtucket, the hub of the scheme, was also sentenced today to 36 months in federal prison, having been convicted of one count of conspiracy, one count of theft of government property, four counts of money laundering and four counts of aggravated identity theft. Morel was ordered to pay $1,225,580 in restitution.
On September 27, 2016, a federal court jury convicted the two women after a two-week trial.
The sentences are announced by United States Attorney Peter F. Neronha; Joel P. Garland, Special Agent in Charge, Internal Revenue Service Criminal Investigation; Shelly A. Binkowski, Inspector in Charge of the United States Postal Inspection Service, Boston Division; Brian Deck, Resident Agent in Charge of the United States Secret Service; and Pawtucket Police Chief Paul King.
In November 2016, Chief Judge William E. Smith sentenced Juan Vasquez to 6 years in federal prison to be followed by 3 years supervised release. Vasquez ran the scheme out of his business, the former Dominican Supermarket. Vasquez was ordered to pay restitution to the IRS in the amount of $2,682,042.88. Vasquez pleaded guilty on August 19, 2016, to one count of conspiracy and one count of aggravated identity theft.
Also in November 2016, co-defendant Belkis Vasquez, 50, of Central Falls, was sentenced to serve 3 years probation, the first 8 months in home detention with GPS electronic monitoring, and was ordered to perform 200 hours of community service. Belkis Vasquez was ordered to pay restitution to the IRS in the amount of $325,490. Belkis Vasquez pleaded guilty on August 17, 2016, to one count of conspiracy.
According to the government’s evidence, for nearly four years, beginning in January 2010, the defendants participated in a scheme in which they used stolen personal identifying information of more than 400 individuals, most of whom are residents of Puerto Rico, to file fraudulent tax returns. Fraudulent treasury checks were mailed to various locations in Rhode Island, Massachusetts and New York, and later deposited by the co-conspirators into 26 different bank accounts. The bank accounts were controlled by the co-conspirators or other individuals affiliated with the former Dominican Supermarket.
The government’s evidence showed that the defendants and their co-conspirators withdrew the proceeds of the checks, caused others to withdraw some of the proceeds, transferred the proceeds between accounts, and spent the funds on personal expenses. Additionally, more than $235,000 of fraudulently obtained funds were transferred to a bank in the Dominican Republic.
The cases were prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and John P. McAdams.
The matter was investigated by Internal Revenue Service - Criminal Investigation, with the assistance of the United States Secret Service, United States Postal Inspection Service and the Pawtucket Police Department.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Two Men Plead Guilty to Using Stolen Account Numbers at Metro East WalmartsRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that Samirahdam E. Rolley (25), of Stone Mountain, GA, pled guilty to two credit card fraud charges and a charge of aggravated identity theft yesterday in federal court in East St. Louis, IL. On Monday, February 27, 2017, Michael A. Gordon, also of Stone Mountain, GA, pled guilty to the same charges arising out of the same incidents. Rolley’s and Gordon’s crimes occurred at several Walmart stores in the Metro East over a three-day period in June 2015.
At their plea hearings, both Rolley and Gordon admitted that they travelled from Georgia to Southern Illinois in early June 2015. During their trip, Rolley and Gordon had in their possession numerous gift cards. The magnetic strips of these gift cards had been re-encoded with stolen debit card numbers. Some of these debit account numbers were for the accounts of Southern Illinois residents at a local credit union. Rolley and Gordon used the altered gift cards to make purchases at numerous Metro East Walmarts, including the stores in Cahokia, O’Fallon, Belleville, Highland, Wood River, Collinsville, Glen Carbon, Godfrey, Jerseyville, Waterloo, and Carlyle. The purchases made by Rolley and Gordon were debited to the bank accounts of the victims whose debit account numbers had been embedded on the gift cards.
The sentencing hearings for both Rolley and Gordon are scheduled for June 23, 2017. The charges of using stolen account numbers and using counterfeit credit cards are both punishable by up to 10 years in prison, a $250,000 fine, three years of supervised release, and restitution. The aggravated identity theft charge carries a mandatory sentence of 2 years in prison, which must be served consecutively with any prison sentence imposed for the stolen account number charge.
The investigation is being conducted by the Springfield Division, Fairview Heights Resident Agency, of the Federal Bureau of Investigation ("FBI"). Several Metro East police departments have assisted the FBI with the investigation. Those include the Carlyle, Collinsville, Glen Carbon, Jerseyville, Waterloo, and Wood River Police Departments, as well as the Madison County Sheriff’s Department. Walmart’s Global Security Department has also provided significant assistance in the investigation. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Two Former Executives of iPayment Agree to Plead Guilty in Fraud Scheme that Embezzled over $5 Million from the CompanyRead the Press Release
LOS ANGELES – Two former executives of iPayment, Inc., a payment processor based in Westlake Village, have agreed to plead guilty to participating in a scheme that stole more than $5 million from the company.
Robert Torino, 63, of Norwell, Massachusetts, who was the chief operating officer of iPayment, and Nasir Shakouri, 40, of Westlake Village, who was the company’s senior vice president of sales and marketing, each agreed to plead guilty to federal charges of conspiracy to commit wire fraud.
Torino and Shakouri agreed to plead guilty in plea agreements that were filed this morning in United States District Court. Both defendants have agreed to appear in court and be arraigned on April 14.
Today’s filing of the plea agreements, and the filing of the related charging document known as an information, come at the same time as the United States Securities and Exchange Commission filed a civil action against Torino, Shakouri and others.
iPayment primarily processes credit and debit transactions for small merchants, many of whom are recruited to use iPayment’s services by agents or independent sales offices. Pursuant to contractual obligations, iPayment sometimes paid sales offices a portion of the fees it collected from the merchants recruited by the sales offices, as well as bonuses and referral fees collectively known as residuals.
As part of the criminal conspiracy, Torino, Shakouri and others created fictitious sales offices to unlawfully divert to themselves and others residuals which had been purchased by iPayment as part of a residual buy out.
A second part of the conspiracy involved theft from iPayment through a kickback scheme involving two vendors that provided information technology services to iPayment. As part of an agreement between Torino, Shakouri and another iPayment employee, the outside vendors inflated invoices to iPayment and paid the excess money to a company owned by Torino and Shakouri.
“These defendants used their considerable inside knowledge of their employer’s business practices to skim over $5 million from iPayment’s bottom line,” said United States Attorney Eileen M. Decker. “The stolen money should have gone to the company and its owner.”
“The defendants put greed before their company’s best interest by exploiting iPayment to enrich themselves,” said Deirdre Fike, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “The FBI will continue to work with our partners at the SEC and the IRS to root out such illegal practices and maintain a fair business environment.”
“Over a four-year period, Torino and Shakouri used multiple schemes to receive stolen funds from iPayment,” stated IRS Criminal Investigation’s Acting Special Agent in Charge Anthony J. Orlando. “People who create elaborate schemes that have no purpose other than to mislead others and defraud legitimate businesses run the very high risk of prosecution.”
Once they plead guilty, Torino and Shakouri will each face a statutory maximum penalty of five years in federal prison.
The investigation into Torino and Shakouri was conducted by the Federal Bureau of Investigation and IRS Criminal Investigation.
The case is being prosecuted by Assistant United States Attorneys Monica Tait and Jill Feeney of the Major Frauds Section.
Twenty-One Defendants Charged in Multimillion Dollar International Counterfeit Credit and Debit Card Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – Twenty-one individuals were charged in an indictment for their alleged roles and participation in an international multimillion dollar scheme to steal credit and debit card account information, manufacture counterfeit credit and debit cards, identity theft, and money laundering. The charges are the result of a ten-month investigation by local, state, and federal law enforcement and the Department of State.
United States Attorney Daniel G. Bogden of the District of Nevada; Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division; Special Agent in Charge Michael Bishop of the Diplomatic Security Service’s Los Angeles Field Office; Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department; and Chief Patrick E. Moers of the Henderson Police Department made the announcement.
“The sophisticated multimillion dollar fraud scheme occurred in Las Vegas, multiple other states, and crossed international borders,” said U.S. Attorney Bogden. “These charges are another successful example of our commitment to working together with local, state, and federal law enforcement partners in the pursuit and prosecution of perpetrators who commit credit card fraud, identity theft, and money laundering.”
“These indictments demonstrate the unified commitment of law enforcement to stop those who target our community through the theft of our personal and financial data. Those who commit such acts should take notice that you will be caught,” said SAC Rouse of the FBI’s Las Vegas Division.
“The Diplomatic Security Service is firmly committed to working with the U.S. Department of Justice and our local law enforcement partners in Nevada to investigate and prosecute all allegations of criminal activity related to passport and visa fraud,” said SAC Bishop of the U.S. Department of State’s Diplomatic Security Service Los Angeles Field Office. “The strong relationship we enjoy with our federal and local law enforcement partners is vital towards ensuring the integrity of U.S. travel documents and protecting greater U.S. interests.”
According to the allegations in the 47-count indictment, from at least Jan. 1, 2013, to about Dec. 9, 2016, the defendants conspired to commit credit and debit card fraud by using “skimmers” placed on automatic teller machines (ATM), cash-out transaction ticket dispensing terminals, such as Global Cash Advance (GCA), and other means to obtain stolen account information. They set-up credit card forgery “laboratories” in residences and hotel rooms to manufacture counterfeit credit and debit cards. Equipment in the laboratories included counterfeit card production systems, thermal dye printers, foil tipping machines, card embossers, and card scanners and encoders.
It is further alleged that the defendants possessed and used the counterfeit credit and debit cards at hotel-casinos, high-end luxury watch, jewelry, and fashion boutiques, electronic retailers, and ATMs throughout Las Vegas, Nevada and in other cities and counties around the country, including: Del Mar, California, Detroit, Michigan, New Orleans, Louisiana, Nassau County, New York, Biloxi, Mississippi, and Atlantic City, New Jersey. They obtained GCA cash advances at casinos, and purchased expensive merchandise, including Rolex watches, ladies’ purses and handbags, and clothing. The purchases would be resold on the black market or online marketplaces. The approximate total loss is over $3.5 million in fraudulent retail purchases and cash advances and withdrawals at hotel-casino properties and other businesses.
In addition, the defendants allegedly possessed and used personal identification of other individuals. The defendants allegedly conspired to commit money laundering and made deposits into bank accounts with money obtained through the fraudulent credit and debit card scheme.
The indictment charges the defendants with conspiracy to commit fraud and related activity in connection with access devices; producing, using or trafficking in a counterfeit access device; using or trafficking in an unauthorized access device; possession of 15 or more counterfeit or unauthorized access devices; possession of access device-making equipment; aggravated identity theft; possession of counterfeit Visa, permit or other document; conspiracy to commit money laundering; and money laundering. The indictment charges the following 21 defendants:
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Lucas Coehlo Paiva Rego, 25
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Fausto Teixeira Martins Neto, 36
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Andre Araujo Rodrigues, 33
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Anderson Clayton Mariano Alcantara, 26
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Carlos Rodrigo Dos Santos Braga, 36
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Bruno Macedo Correia, 26
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Pedro Igor Alves Barbosa, 21
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Vitor Domingues Valentini Dos Reis, 25
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Bruno Dos Santos, 31
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Amysterdan Barbosa Da Silva, 34
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Alexander Lima De Souza, 38
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Francisco Rui De Alencar Mendes Filo, 26
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Davi Dias Fernandes, 26
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Shiro Noburo Naruse, 24
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Hugo Belmino Garces, 27
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Lorenzo Ramon Sala Moura, 39
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Marcelo Araujo, 34
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Henrique Ortolani De Souza Vila Real, 31
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Leonardo Augusto Oliveira Santos, 33
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Rogerio Belarmino Da Silva, 31
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Felipe Augusto Vecale Martins, 38
If convicted, the defendants face a maximum statutory penalty of 20 years in prison. In addition, they face fines in the amount of $250,000.
These charges are the result of cooperative, investigative efforts by the FBI, Department of State’s Diplomatic Security Service, Las Vegas Metropolitan Police Department, and Henderson Police Department. The case is being prosecuted by Assistant U.S. Attorney Patrick Burns.
An indictment is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Three Tax Preparers Indicted for Tax Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that three Kansas City, Mo., tax preparers have been indicted by a federal grand jury for their roles in a tax fraud conspiracy.
Azareia Derseh, 36, his brother, Ananeia Derseh, 39, and Quashanda King, 36, all of Kansas City, were charged in a 23-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, March 7, 2017. That indictment was unsealed and made public following King’s arrest and initial court appearance on Thursday, March 9, 2017.
The federal indictment alleges that Azareia Derseh, Ananeia Derseh and King participated in a conspiracy to prepare fraudulent tax returns from Jan. 30, 2013, to March 5, 2015. Azareia Derseh owned and operated a tax preparation business in the Kansas City metropolitan area, under the names Instant Tax Service and Speedy Tax Service, at various locations. Ananiea was the manager in charge of one of the offices and King was the manager in charge of another office.
According to the indictment, conspirators prepared at least 47 false federal income tax returns, which contained materially false and fraudulent items, for at least 37 clients for tax years 2012, 2013 and 2014. The tax loss based upon the conduct in the conspiracy was $108,621.
Conspirators most often inserted a false Schedule C, the indictment says, wherein the client reported to carry out a business at a modest profit. Often, the return preparers allegedly inflated the gross receipts reported on the Schedule C. Sometimes, the indictment says, the return preparers completely fabricated a Schedule C, reporting income from a fictitious business. The return preparers allegedly added false income to clients’ returns in order to maximize the refundable credits and fraudulently increase clients’ refunds. By including these and other fraudulent items on their client’s tax returns, conspirators allegedly manufactured substantial refunds that the clients would not have been entitled to if the returns had been accurately prepared.
In addition to the conspiracy, the indictment charges Ananeia Derseh with 11 counts of aiding and assisting in the preparation and filing of false and fraudulent tax returns. Azareia Derseh is also charged with four counts of aiding and assisting in the preparation and filing of false and fraudulent tax returns. King is also charged with seven counts of aiding and assisting in the preparation and filing of false and fraudulent tax returns.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation.
Tennessee Couple Convicted for Unemployment Compensation FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Earl Lafayette Hall, III, age 35, of Arlington, Tennessee, and his wife, Renita Blunt, age 32, were convicted by a federal jury on conspiracy, mail fraud, money laundering, and aggravated identity theft charges related to an unemployment compensation fraud scheme. The five-day trial was held before United States District Court Judge Sylvia H. Rambo in Harrisburg.
According to U.S. Attorney Bruce D. Brandler, the jury returned with the guilty verdicts after approximately 2.5 hours of deliberation. Hall was convicted on 12 mail fraud counts, 10 money laundering counts, four aggravated identity theft counts, conspiracy to commit mail fraud, and conspiracy to commit money laundering. Blunt was convicted of conspiracy to commit mail fraud and aggravated identity theft counts. The jury also directed Hall to forfeit the sum of $30,000 and Blunt to forfeit $1,026.
Hall and Blunt were accused of applying for Veteran’s unemployment compensation benefits under the Unemployment Compensation for Ex-Service Members Program, commonly known as “The UCX Program.” The UCX Program is a federally funded U.S. Department of Labor program administered by the States. The jury found that Hall assumed the identity of five individuals between 2013 and 2014 in order to receive benefits under the program. The jury also found that Blunt assumed the identity of one individual to receive benefits under the program.
"Earl Lafayette Hall III and Renita Blunt misused the identities of others to submit counterfeit forms and steal money intended for individuals who experience unemployment after serving in the U.S. Armed Forces. We will continue to work with our law enforcement partners to investigate those who exploit the Unemployment Compensation for Ex-service Members Program,” stated Richard Deer, Special Agent in Charge, Philadelphia Region, U.S. Department of Labor, Office of Inspector General.
The investigation was conducted by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering & Fraud Investigations, U.S. Defense Criminal Investigative Service, U.S. Postal Inspection Service with assistance from Pennsylvania Department of Labor and Industry, Internal Audits Division, Pennsylvania Department of Labor and Industry, Office of Unemployment Compensation Benefits and Policy, and the Pennsylvania Department of the Treasury, Office of Unemployment Compensation Disbursements. Assistant U.S. Attorneys Kim Douglas Daniel and Scott R. Ford prosecuted the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Tampa Armed Career Criminal Sentenced to More Than Twenty-Four Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Virginia Hernandez Covington today sentenced Ernest Vereen, Jr. (40, Tampa) to 24 years and 5 months in federal prison for possessing a firearm as an Armed Career Criminal. He was found guilty on November 1, 2016, after a two-day trial.
According to trial testimony, when officers from the Tampa Police Department confronted Vereen pursuant to an ongoing investigation, he reached for his firearm before ultimately complying with their demands. During the sentencing hearing, the judge described Vereen’s decades-long history of sexual and physical violence, noting that she was particularly concerned that Vereen targeted people with less physical strength than him, specifically women and, in one instance, a 4-year-old child. The judge explained her decision to sentence Vereen at the high end of his guidelines range, explaining that the Court’s first obligation was to keep society safe.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Natalie Hirt Adams.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Suffolk Man Sentenced to Five Years for Distributing FentanylRead the Press Release
NORFOLK, Va. – Eugene Tillery, 30, of Suffolk, was sentenced yesterday to five years in prison for distribution of Fentanyl.
Tillery pleaded guilty on July 14, 2016. According to court documents, from November 2016 through December 2016, the Suffolk Police Department along with the Drug Enforcement Administration conducted seven controlled purchases of Fentanyl from the defendant. The total weight of the purchases was 26 grams. Fentanyl is a powerful pain medication that is 100 times more potent than heroin. Lacing heroin with Fentanyl is a major reason for the alarming increase in thousands of deaths across the country from heroin overdoses. In addition, the defendant was a major supplier of heroin in Suffolk, and he distributed over two kilograms of heroin during 2015.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the DEA’s Washington Field Division; and Thomas E. Bennett, Chief of Police, Suffolk Police Department, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney William D. Muhr prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-77.
Statement by U.S. Attorney Paul J. FishmanRead the Press Release
This afternoon, the President requested my resignation, along with the remaining presidentially appointed U.S. Attorneys across the country, effective at midnight tonight.
It has been the greatest professional experience that I can possibly imagine to have served in this office for the past seven-and-a-half years. Having spent so much of my career working to protect the interests of the people of New Jersey, I can think of no greater form of public service.
I am enormously grateful for the opportunity I was given to lead the men and women who work in this office. They are the most extraordinary group of public servants I have ever known, and I am more than honored to have been their colleague.
Statement by U.S. Attorney Billy J. Williams on Verdict Announcement in Oregon Standoff TrialRead the Press Release
PORTLAND, Ore. – On Friday, March 10, 2017, Billy J. Williams, United States Attorney for the District of Oregon, delivered the following statement on the verdict announcement in U.S. v. Bundy et al.
Remarks as prepared for delivery.
Good Afternoon. My name is Billy J. Williams, United States Attorney for the District of Oregon.
After approximately 21 hours over 3 days, a federal jury here in Portland returned its verdicts against Jason Patrick, Duane Ehmer, Darryl Thorn, and Jake Ryan all of whom were active participants in the 41-day armed occupation of the Malheur National Wildlife Refuge that took place near Burns, Oregon beginning in January of last year.
Jason Patrick was found guilty of conspiracy to impede officers of the United States.
Darryl Thorn was found guilty of conspiracy to impede officers of the United States and possession of firearms and dangerous weapons in federal facilities.
Duane Ehmer and Jake Ryan were both found guilty of depredation of government property.
Sentencing is scheduled for Wednesday, May 10, 2017 here in Portland.
Freedom of speech and expression are core values and rights that I and others have sworn to protect and uphold. In this case, the defendants were not on trial for their beliefs, but rather for their conduct.
Taking up arms and occupying federal lands and property that interferes with federal employees discharging their duties is and will continue to be illegal. We cannot have people taking over government offices and facilities at the end of a gun and expect no consequences.
The jury has spoken. Their verdicts speak to their view of the evidence. I respect the American judicial process and remain convinced it is the best system in the world.
For forty-one days early last year, these individuals prevented U.S. Fish and Wildlife Service and Bureau of Land Management employees from doing their jobs as stewards of land belonging to all Americans.
They purposefully interfered with the daily lives of residents of Burns, Hines, Harney County, and members of the Burns Paiute Tribe. The negative impacts of their actions continue to this day.
Our communities and state are stronger because of our joint effort to bring these individuals to justice. The rule of law matters.
Taking up arms because you do not like how things are done can never be accepted as a lawful way to protest. The good people in rural Oregon who are ranchers, loggers, farmers, and small business owners understand the difference between disagreeing with land management policies and working together to bring about change versus outsiders with a political agenda taking over property with guns and claims of being patriotic. A voice for change and one’s vote are more effective than threats and an AR-15.
I would like to begin by thanking the residents of Burns, Hines, and Harney County, Oregon, members of the Burns Paiute Tribe, and others who were victimized by the actions of these individuals. Your patience with and commitment to both trials was a motivation to everyone involved in the investigation and prosecution of this case.
I would like to thank Harney County Sheriff Dave Ward, Oregon State Police, the Oregon Sheriff’s Association, and the countless local and tribal law enforcement personnel from around the State of Oregon that worked tirelessly to bring about a peaceful resolution to the standoff.
I would like to thank the employees of the United States Fish and Wildlife Service, United States Forest Service, and Bureau of Land Management for their courage and determination to continue serving our country in various capacities despite having their workplaces temporarily taken from them and despite having to dedicate countless staff hours in support of these trials.
I would like to thank the FBI for their outstanding investigative support through every phase of this process. Their professionalism and commitment were essential in bringing about a successful resolution to the trial.
And finally, I would like to thank our trial attorneys and staff at the United States Attorney’s Office for their hard work and commitment to bringing these defendants to justice. The process of prosecuting these individuals required an extraordinary level of effort and unflappable commitment on behalf staff at all levels. I am very proud and thankful for their tremendous effort.
Statement from U.S. Attorney Andrew LugerRead the Press Release
“At the request of the Attorney General of the United States, I have submitted my resignation to the President, effective immediately. Serving the people of Minnesota as their United States Attorney has been the most fulfilling and rewarding experience of my professional life. The Office that I am leaving this evening is comprised of the most talented and motivated professionals I have ever known. The women and men of the United States Attorney’s Office are deeply committed to public service. I was fortunate to work alongside them for the past three years. I also have had the honor of working with federal, state and local law enforcement on some of the most difficult and impactful cases our state has faced. All Minnesotans should know that we are protected by these highly skilled law enforcement officials. I admire them greatly. Finally, I have had the honor of developing close working relationships and deep friendships with diverse communities across Minnesota. I am proud of our accomplishments and encourage the work to continue.”
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Stamford Couple Charged in Connection with Investment Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned a 39-count indictment charging THOMAS J. CONNERTON, 64, and JEAN S. ERICKSON, 62, both of Stamford, with various offenses stemming from an investment scheme that defrauded individuals of more than $2 million.
The indictment was returned on March 7. CONNERTON and ERICKSON were arrested yesterday and appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport. CONNERTON was detained pending a detention hearing that is scheduled for Monday at 1:00 p.m. ERICKSON was released on a $250,000 bond.
As alleged in the indictment, CONNERTON was the founder, president, and CEO of Safety Technologies, LLC (“Safety Tech”), a Connecticut company that had its principal place of business at various times in Simsbury, Madison, Westport and Stamford. Safety Tech was founded in 2006, purportedly for the purpose of developing and commercializing what was represented to be a highly durable puncture and cut resistant material that was to be used in the surgical glove market and other related markets. Safety Tech has not yet obtained any patents from the U.S. Patent and Trademark Office, and CONNERTON did not register Safety Tech’s securities with the U.S. Securities and Exchange Commission (“SEC”).
The indictment alleges that, beginning in approximately June 2009, CONNERTON induced victim-investors to provide him funds and to purchase Safety Tech securities by falsely representing that the valuation of Safety Tech was realistically in the tens or hundreds of millions of dollars, that a lucrative deal to sell or license his glove technology was imminent, and that he would use their funds for research and development, product testing, and to bring the product to market. CONNERTON offered his investors small amounts of equity in Safety Tech through “Subscription Agreements” or investments contracts through which he sold what he described as “Units.”
It is alleged that CONNERTON made numerous other false representations to victim-investors, including stating in September 2015, “I will go on the record to state that there is not a single investor that will lose one dollar invested in Safety Technologies.”
The indictment alleges that even though CONNERTON represented to victim-investors and potential victim-investors that the funds they invested would be used to fund research and development, for product testing, for business expenses and for legal fees, he used invested funds to pay personal expenses including, on two separate occasions, to purchase diamond engagement rings from Tiffany & Co. CONNERTON also used funds to repay loans to an earlier investor.
Through this scheme, it is alleged that CONNERTON defrauded more than 50 victim-investors of more than $2 million.
The indictment further alleges that CONNERTON, with ERICKSON’s assistance, engaged in monetary transactions in an attempt to conceal from the FBI and the SEC the nature and source of funds received by Safety Tech from the sale of Safety Tech securities. CONNERTON and ERICKSON negotiated checks and purchased bank checks in order to move the fraudulent proceeds from one account to another.
The indictment also alleges that, in April 2016, ERICKSON contacted the FBI and falsely stated that she was just an investor when, in truth, she was engaged to CONNERTON and sharing a residence with him at the time. During the call, ERICKSON provided a false address to an FBI Special Agent.
The indictment charges CONNERTON with 12 counts of wire fraud, one count of mail fraud and 18 counts of securities fraud, offenses that carry a maximum term of imprisonment of 20 years on each count. The indictment also charges CONNERTON with six counts, and ERICKSON with one count, of money laundering, an offense that carries a maximum term of imprisonment of 10 years on each count. CONNERTON and ERICKSON are also charged with money laundering conspiracy, an offense that carries a maximum term of imprisonment of 20 years, and ERICKSON is charged with one count of making a false statement to a federal agent, an offense that carries a maximum term of imprisonment of five years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
Citizens with information that may be helpful to this ongoing investigation, or who believe they have been victimized by this scheme, are encouraged to contact the FBI at (203) 777-6311.
Sixteen Defendants Charged in Drug ConspiracyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of three indictments charging 16 individuals with federal drug trafficking crimes. Felix Mejia Lagunas, a/k/a “Carlos Lagunas Salgado,” (41, Riverside, California); Jesus Alberto Bermudez Caraballo, a/k/a “Bebo,” (28, Orlando); Jose Carlos Polanco Vasquez, a/k/a “Pola,” (28, Orlando); Raul Vicente Espada Ortiz, a/k/a “Gordo,” (39, Orlando); Deyvis Lee Echevarria (29, Orlando); Angel Alexis Alicea, a/k/a “Maly,” (28, Tampa); Jose Leonardo Jimenez, a/k/a “Cuzzy,” (28, Tampa); Jose Angel Leonardo Jimenez, a/k/a “Chuki,” (26, Tampa); Jose Antonio Crespo-Negron, a/k/a “Chepo,” (30, Tampa); Rachel Augustine Thomas (55, St. Petersburg); Juan Carlos Lopez, a/k/a “Bori,” (33, Tampa); Freddie Resto (58, Tampa); and Robert Kelly (55, Tampa) were charged with conspiracy to possess with intent to distribute heroin. If convicted, each faces a maximum penalty of life in federal prison. Additionally, Hector Luis Vazquez Alvalle, a/k/a “Hectitor,” (40, Orlando); Alberto Torres Ortiz, a/k/a “El Viejo,” (39, Homestead); and Christian Torres Vasquez (30, Guayama, Puerto Rico) were charged with conspiracy to possess with intent to distribute cocaine. If convicted, each faces a maximum penalty of 40 years in federal prison. The indictments also notify the defendants that the United States intends to forfeit an Acura ILX, Ford F-250, and $79,520 which are alleged to be traceable to proceeds of the offenses.
According to the indictments, between December 2015 and March 2017, the defendants conspired to distribute heroin or cocaine.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
“FBI Tampa Division is proud of the multi-agency, multi-jurisdictional effort to disrupt an alleged drug distribution network in our community. We as law enforcement officers took an oath to serve and protect and this operation exemplifies that commitment,” said Special Agent in Charge of FBI Tampa Division Paul Wysopal.
“This is the result of a collaborative, long-term effort by local, state, and federal agencies,” said Tampa Police Chief Eric Ward. “We’re working together to get dangerous drugs and dangerous individuals off the streets, and making our communities safer.”
FDLE Commissioner Rick Swearingen said, "After FDLE agents worked with Tampa police officers to initiate this long term investigation, FDLE, along with our partners, seized numerous kilos of cocaine and heroin, firearms and currency from an international, criminal street gang and successfully shut down a major heroin and cocaine trafficking organization in our state. Detecting and dismantling this type of criminal organization is a priority of FDLE and we work diligently in collaboration with our local, state, and federal partners to remove these threats."
These cases were investigated by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. Agencies involved in this OCDETF operation include the Federal Bureau of Investigation, the Tampa Police Department, the Florida Department of Law Enforcement, the Drug Enforcement Administration, the U.S. Postal Inspection Service, and the Hillsborough County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Carlton C. Gammons.
Six People Arrested for Alleged Insurance Fraud Conspiracy Involving over 30 FiresRead the Press Release
RICHMOND, Va. – Six people were arrested yesterday for their alleged roles in an insurance fraud conspiracy involving over 30 fires, pursuant to an indictment unsealed in federal court today.
According to the indictment, from as early as May 2000 until as recently as Nov. 30, 2016, the defendants, in various combinations, had a series of over 30 fires—including fires consuming single-family homes, trailers, mobile homes, and cars. The details of each fire vary, but the frequent pattern was for the defendants allegedly to buy a car or home at auction or in foreclosure, insure it, and then collect insurance proceeds in excess of the purchase price after it burned.
In furtherance of their scheme, the defendants allegedly made numerous misrepresentations, both in writing and in interviews—sometimes under oath—to insurance companies, firefighters, and other law enforcement officers. The per-fire insurance payout for the fires ranged from approximately $1,000 to over $300,000, with the alleged insurance payouts in connection with the scheme totaling over $900,000.
The following defendants made their initial appearance in federal court after being arrested yesterday on the charges listed below:
Name
Age
City
Charge(s)
Verdon Taylor
72
Leesburg, Fla.
Conspiracy to commit wire fraud, wire fraud, use of fire to commit a federal felony, witness tampering
Vershawn Jackson
37
Sandston, Va.
Conspiracy to commit wire fraud, wire fraud, use of fire to commit a federal felony
Sylvia Mitchell
58
Tampa, Fla.
Conspiracy to commit wire fraud
Marie Taylor
54
Richmond, Va.
Conspiracy to commit wire fraud
Dorel Watson
32
Tampa, Fla.
Conspiracy to commit wire fraud
Eugenia Fleming
57
Victoria, Va.
Conspiracy to commit wire fraud, use of fire to commit a federal felony, false statement
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after defendants Jackson, Taylor, and Fleming made their initial appearances before U.S. Magistrate Judge David J. Novak. The Henrico County Fire Marshal’s Office and the City of Richmond Department of Fire and Emergency Services provided assistance in this investigation. Assistant U.S. Attorney David V. Harbach, II is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:17-cr-29.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Seizure of $1.4 million of Oxycodone at Otay Mesa Port of Entry is Largest Along Southwest Border in Five YearsRead the Press Release
Assistant U. S. Attorney Orlando Gutierrez (619) 546-6958
NEWS RELEASE SUMMARY – March 9, 2017
SAN DIEGO – Adriana Morfin-Paniagua, a United States citizen living in Mexico, was arrested yesterday and charged with importing approximately 47,340 tablets of oxycodone in the largest seizure of what is believed to be oxycodone along the Southwest Border in at least five years. The street value of these tablets is approximately $1,420,000 dollars.
According to a criminal complaint filed in federal court, on March 8, 2017, Morfin-Paniagua entered the United States at the Otay Mesa Port of Entry as the driver and sole occupant of a 1999 Honda Accord. Following a secondary inspection of the Honda Accord, Custom and Border Protection Officials located thirty packages containing the oxycodone tablets inside a hidden, non-factory compartment.
These tablets have an illegal street value of $30 to $40 per tablet. At $30 each, the street value of 47,340 tablets is $1,420,200.00 dollars. When drugs are seized at the border, they are tested in the field, and these pills tested positive as oxycodone. The drugs are then forensically tested in a DEA lab to confirm those findings. Those tests can take about a week or sometimes more.
Morfin-Paniagua was subsequently charged with a violation of Title 21, United States Code, 952 and 960, importation of a controlled substance, and booked into the Metropolitan Correctional Center.
“This is one of the biggest seizures of oxycodone at a San Diego port of entry,” said Acting U.S. Attorney Alana Robinson. “Every pill we seize is one that we keep out of the mouths of abusers who are on a path to destruction.”
“HSI San Diego is committed to fully investigating criminal activity linked to the transnational movement of counterfeit pharmaceuticals,” said James Plitt, acting special agent in charge for HSI San Diego. “Our agents will continue to work diligently with our law enforcement and prosecutorial partners to counter this type of criminal activity.”
Morfin-Paniagua made her first appearance today before U.S. Magistrate Judge Jan Adler.
DEFENDANT Case Number: 17MJ0710
Adriana Morfin-Paniagua Age: 22 Tijuana, Mexico
SUMMARY OF CHARGES
Title 21, United States Code, 952 and 960, Importation of a Controlled Substance
Maximum Penalty: Twenty years in custody.
AGENCIES
Homeland Security Investigations
United States Customs and Border Protection
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Santa Fe County Man Sentenced to Ninety Days of Imprisonment for Trespassing on Nambe Pueblo LandRead the Press Release
ALBUQUERQUE – Steve Romero, 32, of Santa Fe County, N.M., pled guilty today in federal court in Albuquerque, N.M., to a misdemeanor criminal trespass charge, announced U.S. Attorney Damon P. Martinez and Special Agent in Charge William McClure of District IV of the BIA’s Office of Justice Services. Immediately after entering the guilty plea, Romero was sentenced to 90 days of imprisonment to be followed by a year of supervised release.
Romero was charged in a criminal complaint on June 14, 2016, with a misdemeanor criminal trespass offense. The complaint alleged that in Feb. 2016, the Nambe Tribal Council banished Romero, a non-Indian, from entering any land within the Nambe Pueblo boundaries. According to the complaint, Romero had reentered Nambe Pueblo land on four occasions between April 2016 and June 2016, in violation of the Pueblo’s banishment resolution.
During today’s proceedings, Romero pled guilty to a misdemeanor information charging him with criminal trespass. In entering the guilty plea, Romero admitted that he was served with a Tribal Resolution on March 7, 2016, excluding and banishing him from the Nambe Pueblo. Romero further admitted that on June 13, 2016, he entered and remained on the Nambe Pueblo for the fourth time after the Nambe Pueblo Tribal Council issued the Tribal Resolution.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Raquel Ruiz-Velez.
Registered Sex Offender Sentenced to 15 Years in Prison for Possession and Distribution of Images of Child RapeRead the Press Release
A registered sex offender who committed new crimes against children while on supervised release was sentenced today in U.S. District Court in Seattle to 15 years in prison and lifetime supervised release. JAMES WILLIAM STILSON, 40, of Everett, has previous convictions for possession of child pornography and failing to register as a sex offender. Chief U.S. District Judge Ricardo S. Martinez imposed the sentence.
According to records filed in the case, STILSON was taken into custody in December 2015, when his federal probation officer became concerned that STILSON had multiple electronic devices for accessing the internet – something prohibited under the terms of his supervision. Forensic examination of his devices revealed that he had images of children engaged in sexually explicit conduct. Additionally, STILSON was using a messaging service popular with teens to try to convince young girls to send him sexually explicit pictures. STILSON was posing as a teen-age boy to try to get the girls to send the photos. In one instance, STILSON sent a young girl an image of child pornography in an attempt to convince her to send him explicit photos.
STILSON’s original conviction for possession of child pornography was in 2004 in New Mexico. His supervision was transferred to Western Washington and in 2009, computer monitoring equipment required on his electronic devices revealed he had been accessing websites devoted to child pornography. Before law enforcement could arrest STILSON, he absconded to Mexico. When he attempted to sneak back into the U.S., STILSON was arrested and was convicted in 2012 for failing to register as a sex offender. Some two years into his most recent term of supervised release, his probation officer conducted a home inspection and observed STILSON through a window using a smart phone – something he was not supposed to have. Law enforcement brought in ‘Bear’ - - the Seattle Police canine trained to find electronic devices - - who searched the home and found three smart phones and other digital devices.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the Seattle Police Department. Critical assistance was provided by the U.S. Probation Office.
The case is being prosecuted by Assistant United States Attorney Matthew Hampton.
Pittsburgh Man Sentenced to 5 Years in Prison for Using a Gun during a Drug DealRead the Press Release
PITTSBURGH - A former resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 60 months imprisonment, followed by five years supervised release, on his conviction of possession of a firearm in furtherance of a drug trafficking crime, Acting United States Attorney Soo C. Song announced today.
United States District Judge Mark R. Hornak imposed the sentence on Larry Christopher Roberts, age 48, of Pittsburgh, Pennsylvania.
According to information presented to the court, on or about June 4, 2015, Roberts possessed a firearm in furtherance of a drug trafficking crime -- that being his distribution and possession with intent to distribute crack cocaine.
Assistant United States Attorney Cindy K. Chung prosecuted this case on behalf of the government.
Acting United States Attorney Soo C. Song commended the Federal Bureau of Investigation and the Allegheny County Sheriff’s Office for conducting the investigation that led to the successful prosecution of Roberts.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crimes.
Philadelphia Man Pleas Guilty to Tax EvasionRead the Press Release
Stephen Leib, 73, of Philadelphia, Pennsylvania pleaded guilty today to three counts of tax evasion announced Acting United States Attorney Louis Lappen. According to the Information, Leib owned and operated New Wave Logistics, Inc., located on Bustleton Avenue in Philadelphia, Pennsylvania. Despite having a business bank account, Leib used a check casher to cash the majority of the checks his business received. Leib lied to his accountant about the total income his business earned in 2008, 2009, and 2010, by claiming his business bank account represented his total income. As a result, Leib’s accountant omitted a substantial amount of income from Leib’s tax returns in 2008, 2009, and 2010. From 2008-2010, Leib evaded the assessment and payment of over $800,000 in taxes by hiding his total business income from the IRS and by filing false tax returns.
The defendant faces a maximum possible sentence of five years’ imprisonment, a $250,000 fine, a $100 assessment, and three years of supervised release per count of conviction.
The case was investigated by IRS Criminal Investigations and is being prosecuted by Assistant United States Attorney Tiwana Wright.
Pensacola Man Convicted of Unlawfully Selling Unregistered MachinegunsRead the Press Release
PENSACOLA, FLORIDA – After a three-day trial, Gregory Williams, 29, of Pensacola, was convicted this week of 19 counts of firearm-related offenses, including possession of a machinegun, possession of an unregistered machinegun, and false statement to a firearm dealer. The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that Williams knowingly sold dozens of auto sear parts to undercover law enforcement officers. Auto sears are conversion parts designed to modify semiautomatic firearms into fully automatic firearms. Auto sears are defined under federal law as machineguns. Williams never registered them in the National Firearms Registration and Transfer Record, as required by law.
On nine occasions in 2016, Williams communicated with the undercover officers via text message and then shipped the firearms or met the officers in person. When law enforcement officers searched Williams’s residence, they seized an additional auto sear.
Williams faces a maximum sentence of 10 years in prison on each count. He is currently being detained at the Santa Rosa County Jail. The sentencing hearing will take place at the United States Courthouse in Pensacola on a date to be determined by the court.
This case resulted from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in Sacramento, California, and Pensacola, Florida, and the ATF Gun Crime Response Team. Assistant United States Attorney Edwin Knight prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer(850) 216-3854, [email protected]
Pasco County, Florida, Man Pleads Guilty to 2012 Cross BurningRead the Press Release
The Justice Department today announced that Thomas Herris Sigler, III, 45, of Port Richey, Florida, pled guilty in the U.S. District Court for the Middle District of Florida, Tampa Division, to one count of conspiring with others to threaten, intimidate, and interfere with an interracial couple’s enjoyment of their housing rights, in violation of U.S. Code, Title 18 U.S.C. § 241.
“The defendant threatened and intimidated a couple in their home and neighborhood, denying them of the simple ability to feel safe where they lived, on account of race,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously prosecute those who engage in such violent acts.”
“No one should be threatened or intimidated in his home because of his race, color, or creed,” said U.S. Attorney A. Lee Bentley III for the Middle District of Florida. “It is sad that crosses are being burned in front yards in the 21st century. Acts of hatred such as this simply cannot be tolerated under law.”
“Unfortunately, people hold bias and prejudice against others for no apparent reason,” said Special Agent in Charge Paul Wysopal of the FBI Tampa Division. “This case demonstrates people who act out such prejudices will be held accountable. Such behavior is unacceptable.”
According to court documents, in September and October 2012, Sigler was living on Seward Drive in Port Richey in a predominantly white community. After an interracial couple moved next door, Sigler harassed the African-American neighbor with racial slurs and derogatory statements, and on one occasion, physically assaulted him.
On Halloween night, Sigler attended a party at a neighbor’s house, where several Seward Drive residents decided to burn a cross in the front yard of the interracial couple in order to intimidate them and force them to move from the residence. Using wood and tools from the host of the Halloween party, Sigler and his co-conspirators constructed a wooden cross and poured gasoline on the cross. Sigler’s co-conspirators then carried the cross to the victims’ front yard, leaned it against their mailbox, and set the cross on fire.
One of Sigler’s co-conspirators, Pascual Carlos Pietri, pled guilty to the same charge as Sigler in 2015, and was sentenced to 37 months imprisonment on March 23, 2016. A third co-conspirator, William A. Dennis, 56, of Pasco County, Florida, is also charged for his role in the conspiracy.
This case was investigated by the FBI. It was prosecuted by Assistant U.S. Attorneys Josephine W. Thomas and Simon A. Gaugush of the Middle District of Florida and Trial Attorney William E. Nolan of the Civil Rights Division’s Criminal Section.
Pasco County Man Pleads Guilty to 2012 Cross BurningRead the Press Release
Tampa, FL – U.S. Attorney A. Lee Bentley, III today announced that Thomas Herris Sigler, III (45, Port Richey) pleaded guilty to one count of conspiring with others to threaten, intimidate, and interfere with an interracial couple’s enjoyment of their housing rights.
“No one should be threatened or intimidated in his home because of his race, color, or creed,” said U.S. Attorney Bentley. “It is sad that crosses are being burned in front yards in the 21st century. Acts of hatred such as this simply cannot be tolerated under law.”
“The defendant threatened and intimidated a couple in their home and neighborhood, denying them of the simple ability to feel safe where they lived, on account of race,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously prosecute those who engage in such violent acts.”
“Unfortunately, people hold bias and prejudice against others for no apparent reason,” said Special Agent in Charge Paul Wysopal of the FBI Tampa Division. “This case demonstrates people who act out such prejudices will be held accountable. Such behavior is unacceptable.”
According to court documents, in September and October 2012, Sigler was living on Seward Drive in Port Richey in a predominantly white community. After an interracial couple moved next door, Sigler harassed the African-American neighbor with racial slurs and derogatory statements, and on one occasion, physically assaulted him.
On Halloween night, Sigler attended a party at a neighbor’s house, where several Seward Drive residents decided to burn a cross in the front yard of the interracial couple in order to intimidate them and force them to move from the residence. Using wood and tools from the host of the Halloween party, Sigler and his co-conspirators constructed a wooden cross and poured gasoline on the cross. Sigler’s co-conspirators then carried the cross to the victims’ front yard, leaned it against their mailbox, and set the cross on fire.
One of Sigler’s co-conspirators, Pascual Carlos Pietri, pled guilty to the same charge as Sigler in 2015, and was sentenced to 37 months imprisonment on March 23, 2016. A third co-conspirator, William A. Dennis, 56, of Pasco County, Florida, is also charged for his role in the conspiracy.
This case was investigated by the FBI. It was prosecuted by Assistant U.S. Attorneys Josephine W. Thomas and Simon A. Gaugush and Trial Attorney William E. Nolan of the Civil Rights Division’s Criminal Section.
Pace Firefighter Indicted in Online Child Exploitation ConspiracyRead the Press Release
PENSACOLA, FLORIDA – Danny Ray Murphy, 37, of Milton, made a first appearance today in the U.S. District Court in Pensacola after a federal grand jury returned an indictment charging him with conspiracy, receipt, and possession of child pornography. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges that, between November 2016 and January 2017, Murphy knowingly conspired with others to participate in Kik instant messaging communications that distributed child pornography images and videos. The indictment further alleges that he received and possessed child pornography involving a minor under age 12. The defendant is currently being detained at the Santa Rosa County Jail. The detention hearing and arraignment have been scheduled for March 15, 2017, at 12:30 p.m.
The case is being investigated by the United States Immigration and Customs Enforcement Homeland Security Investigations, the Escambia County Sheriff’s Office, the Pensacola Police Department, the State Attorney’s Office for the 1st Judicial Circuit, and the North Florida Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorney David L. Goldberg.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]
Owner of Commercial Supply Companies Admits Conspiring to Defraud Approximately 40 Companies of More Than $1 MillionRead the Press Release
CAMDEN, N.J. – The owner of KLA International Inc., Quad Trade Services Inc., and TCI Technologies Inc., today admitted his role in a conspiracy to defraud approximately 40 businesses out of more than $1 million, U.S. Attorney Paul J. Fishman announced.
Keith B. Fisher Sr. 59, of Philadelphia, Pennsylvania, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to a superseding information charging him with one count of conspiracy to commit mail fraud.
According to documents filed in this case and statements made in court:
From February 2010 through August 2015, Fisher and his conspirators, through the use of three purported commercial supply companies, bid on federal contracts through FedBid.com, an online marketplace that provided reverse auction services and enabled government agencies to post requirements for goods or services with the intention of attracting quotes and offers from vendors. Upon submitting a winning bid, Fisher’s companies were awarded contracts to provide goods to the respective government agency.
Fisher and his conspirators orchestrated the fraud by subcontracting with third-party vendors throughout the United States to provide these goods to the respective government agencies. isher and his conspirators induced the third-party vendors to ship the goods to the government agencies on credit by falsely promising to pay the vendors for the goods and making false and fraudulent representations to the vendors about the credit-worthiness, business history, and financial status of Fisher’s companies. Fisher and his conspirators provided the vendors with fraudulent credit applications, false trade references, and fraudulent information about the financial status of his companies. Upon receipt of the goods and materials supplied by the third-party vendors, the government agencies paid Fisher and his conspirators. Fisher, in turn, failed to pay or only made nominal payments to the 40 victim vendors, who were owed more than $1 million for the goods and materials supplied to the government.
The charge to which Fisher pleaded guilty carries a maximum potential penalty of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest. Sentencing is scheduled for June 19, 2017.
U.S. Attorney Fishman credited special agents with the U.S. Department of the Interior, Office of Inspector General, under the direction of Special Agent in Charge Michael V. Graziano, special agents with the U.S. Naval Criminal Investigative Service - Northeast Field Office, under the direction of Special Agent in Charge Leo S. Lamont, special agents with the U.S. Army Criminal Investigation Command - Mid-Atlantic Fraud Field Office, under the direction of Special Agent in Charge L. Scott Moreland, special agents with the Department of Veterans Affairs, Office of Inspector General – Northeast Field Office, under the direction of Special Agent in Charge Donna L. Neves, special agents from the U.S. Department of Justice, Office of Inspector General - Fraud Detection Office, under the direction of Special Agent in Charge Lewe Sessions, and Postal Inspectors with the United States Postal Inspection Service, under the direction of Inspector in Charge David Bosch, for conducting the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Matthew J. Skahill and Diana Vondra Carrig of the U.S. Attorney’s Office in Camden.
New York Man Sentenced to 25 Years in Prison for Sexual Exploitation of Girl While Being Unregistered Sex OffenderRead the Press Release
Also Sentenced for Wire Fraud and Identity Theft Charges
CAMDEN, N.J. – A New York man was sentenced today to 300 months in prison for engaging in illicit sexual conduct with a 12-year-old girl and falsely claiming he had cancer in order to defraud victims out of $150,000, U.S. Attorney Paul J. Fishman announced.
Joseph Anthony Caracciolo, 50, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to a four-count information charging him with traveling in interstate commerce to engage in illicit sexual conduct with a minor, committing that offense while being an unregistered sex offender with a duty to register under state and federal law, wire fraud and aggravated identity theft. Judge Bumb imposed the sentence today in Camden federal court.
According to the documents filed in the case and statements made in court:
Caracciolo admitted that on numerous occasions between June 2012 and August 2012, he travelled to New Jersey and Pennsylvania to engage in sexual intercourse with a then 12-year-old-girl, identified as “Victim 1” in the information. During this time, Caracciolo was not registered as a sex offender as required by his 1993 rape conviction in the Superior Court of Hampden County in Springfield, Massachusetts.
In July 2009, Caracciolo became romantically involved with a woman, identified in the information as “Victim 2,” with whom he had a child. Caracciolo admitted that he asked Victim 2’s parents to help pay for his cancer treatments, even though he wasn’t actually diagnosed with cancer. From December 2011 through August 2013, Victim 2’s father wired Caracciolo more than $150,000. Caracciolo also admitted that during this time, he used the identity of “Anthony Scibelli,” a Massachusetts man who died in 1998, to perpetuate the fraud.
Following the entry of Caracciolo’s guilty plea before Judge Bumb in January 2016, Caracciolo sought to withdraw his guilty plea in January 2017. At a hearing on Caracciolo’s motion to withdraw his guilty plea, Caracciolo admitted under cross-examination that he has lived a life of lies, including by telling people that he was a pediatric dentist and a celebrity chef, conning and deceiving women from coast to coast, selling sports memorabilia on eBay that he knew was not authentic, and selling fake cellphones and stereos.
In addition to the prison term, Judge Bumb sentenced Caracciolo to serve a lifetime of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, as well as the Egg Harbor Township Police Department, the U.S. Marshals Fugitive Task Force, and members of the “Innocence Lost” Task Force from the Atlantic County Prosecutor’s Office and the Atlantic County Sheriff’s Office, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Justin C. Danilewitz of the U.S. Attorney’s Office in Camden.
Defense counsel: Peter Levin Esq., Philadelphia, Pennsylvania
New York Man Charged with Bank RobberyRead the Press Release
NEWARK, N.J. –A New York man was charged today with robbing a bank in Fort Lee, New Jersey, U.S. Attorney Paul J. Fishman announced.
Isaac Nesbit, 30, is charged by complaint with one count of bank robbery. He is expected to make his initial appearance today before U.S. Magistrate Judge James B. Clark III in Newark federal court.
According to the complaint:
On Jan. 20, 2017, Nesbit allegedly entered the Bank of New Jersey in Fort Lee and presented the teller a note demanding cash and threatening to shoot everyone if the teller did not comply. After Nesbit left the bank with stolen money, law enforcement recovered the note and the clothes worn by Nesbit in a nearby dumpster. Nesbit was spotted and apprehended by law enforcement a short time later during a canvas of the surrounding area. The stolen cash was recovered from Nesbit’s back pocket. Nesbit has been detained in the Bergen County Jail on state charges related to the robbery.
The bank robbery charge carries a maximum potential penalty of 20 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss.
U.S. Attorney Fishman credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Bergen County Prosecutor’s Office, under the direction of Prosecutor Gurbir S. Grewal; and the Fort Lee Police Department, under the direction of Chief Keith M. Bendul, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty
New Jersey Man Sentenced for Trafficking Contraband CigarettesRead the Press Release
RICHMOND, Va. – Eyad Salahedin, 40, of Elmwood Park, New Jersey, was sentenced yesterday to five years in prison, followed by three years of supervised release, for his role in a conspiracy to traffic in contraband cigarettes. Salahedin also was ordered to pay $5,622,021 in restitution and forfeit $9,611,319.11 in criminal proceeds.
Salahedin pleaded guilty on November 10, 2016. According to court documents, Salahedin created five separate, fictitious Virginia businesses between March and July 2015, using the name and personal identifiers of his absent brother (who had lived overseas in Jordan since 2007) to register those sole proprietorships with the Commonwealth’s Department of Taxation. Salahedin and his co-conspirators then used those fictitious business registrations to create business memberships at Sam’s Club stores in Virginia, where the conspirators purchased more than $9.6 million in cigarettes between March 2014 and August 2015, all exempted from the Virginia sales and use tax.
As part of the conspiracy, Salahedin created secondary business membership accounts for numerous Virginia and New Jersey residents, often utilizing false identities, and he provided those individuals with cash and instructions on what cigarettes to purchase. Salahedin and those acting at his direction then smuggled the cigarettes north to New Jersey and New York, where they were sold as contraband cigarettes on the black market. Salahedin regularly relied on aliases and other individuals’ identities throughout the conspiracy, using those false identities to register his false businesses, purchase cigarettes, and maintain storage units in Virginia and New Jersey.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after sentencing by U.S. District Judge Robert E. Payne. The case was investigated by the Washington–Baltimore HIDTA task force’s Northern Virginia Financial Initiative and the New Jersey State Treasury’s Office of Criminal Investigations. Assistant U.S. Attorneys Thomas A. Garnett and Michael C. Moore prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-29.
Mountain Pine Man Sentenced to 7 Years in Federal Prison for Drug TraffickingRead the Press Release
Hot Springs, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Prentice Jerel Daniels, aka “PJ”, age 29, of Mountain Pine, was sentenced today to 84 months in federal prison followed by three years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court records, on two separate occasions in July of 2015, members of the 18th Judicial East Drug Task Force conducted a controlled purchase of one ounce of methamphetamine from Prentice Jerel Daniels, recording the transactions each time. Daniels was a known distributor of methamphetamine in the Mountain Pine area. On August 6, 2015, officers executed a state search warrant on Daniel’s residence and located a large amount of methamphetamine and over $12,000 in cash. The drugs seized were sent to the Arkansas State Crime Lab where they tested positive to be 663 grams of actual methamphetamine.
Daniels was named in a federal indictment in September, 2015 and pleaded guilty in August, 2016.
This case was investigated by Homeland Security Investigations and the 18th Judicial Drug Task Force. Assistant United States Attorney David Harris prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Member of International Child Exploitation Conspiracy Pleads GuiltyRead the Press Release
ALEXANDRIA, Va. – Jeffery Van Dyke, 46, of Weed, California, pleaded guilty today to conspiracy to produce child pornography for his participation in a website that was operated for the purpose of coercing and enticing minors as young as eight years old to engage in sexually explicit conduct on web camera.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; U.S. Attorney Dana J. Boente of the Eastern District of Virginia; and Section Chief John J. Brosnan of the FBI’s Violent Crimes Against Children Section (VCACS) made the announcement.
Van Dyke was charged on April 4, 2016, and pleaded guilty before U.S. District Judge T.S. Ellis III of the Eastern District of Virginia. Sentencing is set for June 9.
According to admissions made in connection with the plea agreement, members of the conspiracy created false profiles on social networking sites popular with children posing as young teenagers to lure children to two websites they controlled. Once on the conspirators’ websites, Van Dyke admitted that members of the conspiracy showed the children pre-recorded videos of prior minor victims, often engaging in sexually explicit conduct, to make the new victims think that they were chatting with another minor.
Van Dyke further admitted that conspirators used these videos to coerce and entice children to engage in sexually explicit activity on their own web cameras, which could be viewed live by other members without the victim’s knowledge and which the website automatically recorded and made available for download later. Van Dyke admitted that he linked minors to one of the websites and chatted with them there in furtherance of the conspiracy. The defendant also admitted that one of the websites ranked the efforts of the members to successfully coerce and entice children to engage in sexually explicit conduct on live web camera. Law enforcement agencies have disabled both websites.
VCACS special agents led the investigation with the assistance of the FBI’s Operation Rescue Me and the FBI’s Digital Analysis and Research Center and the Office of Victim Assistance. The South Africa Police Service, Family Violence, Child Protection and Sexual Offenses, Gauteng; Royal Canadian Mounted Police, National Child Exploitation Coordination Centre; the Dutch Police Service Agency, KLPD; and the Australian Federal Police, Child Protection Operations, Sydney were active partners in Operation Subterfuge, a multinational investigation coordinated by members of the FBI’s Violent Crimes Against Children International Task Force. Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Whitney Russell of the Eastern District of Virginia prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-128.
Member of International Child Exploitation Conspiracy Pleads GuiltyRead the Press Release
A Weed, California man pleaded guilty today to conspiracy to produce child pornography for his participation in a website that was operated for the purpose of coercing and enticing minors as young as eight years old to engage in sexually explicit conduct on web camera.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; U.S. Attorney Dana J. Boente of the Eastern District of Virginia; and Assistant Director Stephen E. Richardson of the FBI’s Criminal Investigative Divisionmade the announcement.
Jeffery Van Dyke, 46, was charged on April 4, 2016, and pleaded guilty before U.S. District Judge T.S. Ellis III of the Eastern District of Virginia. Sentencing is set for June 9.
According to admissions made in connection with the plea agreement, members of the conspiracy created false profiles on social networking sites popular with children posing as young teenagers to lure children to two websites they controlled. Once on the conspirators’ websites, Van Dyke admitted that members of the conspiracy showed the children pre-recorded videos of prior minor victims, often engaging in sexually explicit conduct, to make the new victims think that they were chatting with another minor. Van Dyke further admitted that conspirators used these videos to coerce and entice children to engage in sexually explicit activity on their own web cameras, which could be viewed live by other members without the victim’s knowledge and which the website automatically recorded and made available for download later. Van Dyke admitted that he linked minors to one of the websites and chatted with them there in furtherance of the conspiracy. The defendant also admitted that one of the websites ranked the efforts of the members to successfully coerce and entice children to engage in sexually explicit conduct on live web camera. Law enforcement agencies have disabled both websites.
VCACS special agents led the investigation with the assistance of the FBI’s Operation Rescue Me and the FBI’s Digital Analysis and Research Center and the Office of Victim Assistance. The South Africa Police Service, Family Violence, Child Protection and Sexual Offenses, Gauteng; Royal Canadian Mounted Police, National Child Exploitation Coordination Centre; the Dutch Police Service Agency, KLPD; and the Australian Federal Police, Child Protection Operations, Sydney were active partners in Operation Subterfuge, a multinational investigation coordinated by members of the FBI’s Violent Crimes Against Children International Task Force. Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Whitney Russell of the Eastern District of Virginia prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Member of Cherry Hill’s Hillside Drug Distribution Conspiracy Sentenced to 20 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Jerryan Burrell, a/k/a Rhino, age 31, of Baltimore, today to 20 years in prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute heroin, powder and crack cocaine, marijuana, and oxycodone. On March 8, 2017, Judge Russell sentenced Devin Rodgers, a/k/a Donkey and Dick Butkus, age 21, of Baltimore, to 10 years in prison, followed by five years of supervised release, on the same charge. Burrell and Rodgers admitted that they were members of Hillside, a drug distribution conspiracy which operated for 14 years in the Cherry Hill section of Baltimore.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
“Although the only crime charged in this case is a drug conspiracy, the allegations against the Hillside group includes 13 murders and 21 non-fatal shootings,” said U.S. Attorney Rod J. Rosenstein. “Conspiracy cases are a valuable tool to put violent gangs out of business.”
According to Burrell’s and Rodgers’ plea agreements, from at least 2002, a group known as Hillside distributed powder and crack cocaine, heroin, oxycodone and marijuana, primarily in the Cherry Hill Shopping Center and other locations throughout Cherry Hill, and in west and southwest Baltimore City. Members of Hillside used the proceeds of their narcotics sales to purchase firearms, to enrich themselves, and to further the activities of the organization. Hillside members used residences in and around Cherry Hill to cut and package drugs for distribution. Only trusted members of Hillside, such as Burrell and Rodgers, were admitted to these locations while the drugs were being prepared for sale. In an effort to distinguish their narcotics, Burrell, Rodgers and other Hillside members used colored topped vials or colored the drugs with food coloring.
Burrell and Rodgers admitted that they distributed heroin, marijuana, cocaine and other narcotics. According to the plea agreements, video recordings show that Burrell and Rodgers were in the Hillside stash houses, along with other Hillside members.
During Burrell’s and Rodgers’ involvement in the Hillside drug conspiracy, it was reasonably foreseeable to them that the conspiracy involved between one and three kilograms of heroin, between 280 and 840 grams of crack cocaine, between five and 15 kilograms of powder cocaine, as well as marijuana and oxycodone.
Members of Hillside, including Burrell, also committed acts of violence in order to fund their narcotics activities and intimidate others who would interfere with their narcotics trafficking. For example, on January 16, 2011, Burrell and another Hillside member committed an armed robbery with a loaded .22 caliber handgun with an obliterated serial number. Acts of violence were also committed to discipline members within the Hillside Enterprise for transgressions, real or perceived, against the conspiracy.
Since 2013, federal prosecutors have convicted at least 35 members of three other rival drug-dealing organizations that operated in Cherry Hill: “Up da Hill,” “Little Spelman” and “Coppin Court.”
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Seema Mittal and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Member of Violent Albanian Extortion Crew Targeting Astoria Business Owners Sentenced to 18 Years in PrisonRead the Press Release
Earlier today, Denis Nikolla was sentenced before Judge Eric N. Vitaliano in U.S. District Court in Brooklyn, New York to 18 years’ imprisonment, to be followed by five years’ supervised release, for two counts of Hobbs Act extortion conspiracy, one count of threatening physical violence in furtherance of an extortion plan, and one count of brandishing a firearm. The charges relate to the defendant’s participation in three schemes to extort small business owners in Astoria, Queens. Co-defendants Redinel Dervishaj and Besnik Llakatura are awaiting sentencing. Dervishaj was convicted after a three-week trial in April 2016, while Besnik Llakatura, a police officer with the New York City Police Department at the time of the crimes, previously pled guilty.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, and James P. O’Neill, Commissioner, New York City Police Department.
“The defendant and his partners used fear, intimidation, and threats of violence to demand payment from those who dared to open businesses on their so-called ‘turf’ of Astoria, Queens,” stated United States Attorney Capers. “When his victims refused to pay, the defendant and his partners escalated their efforts to secure payment, brazenly brandishing firearms at their victims. Today’s sentence sends a strong message that criminals who use extortion and violence to profit from others’ hard work in our community will be held accountable and punished.” Mr. Capers extended his grateful appreciation to the members of the Joint Organized Crime Task Force, which includes agents of the FBI and detectives of the NYPD, which led the investigation, as well as the NYPD’s Internal Affairs Division and the FBI’s Public Corruption squad for their cooperation and assistance in the investigation.
“The defendant and his partners in this case coerced an innocent restaurant owner into paying for so-called protective services by using fear and threats of physical violence. The thought that someone can claim an area in any community as their ‘turf’ is not only illegal, it’s beyond comprehension in a normal society. No one should fear a criminal threatening and extorting money from them because of the area where they chose to open a legal and legitimate business,” stated FBI Assistant Director-in-Charge Sweeney.
“Today’s sentence should deter others who believe they can use violence to extort their victims,” said Police Commissioner O’Neill. “My thanks to the prosecutors, detectives, and agents whose work on this investigation led to this sentence. The neighborhood of Astoria is safer today because of your hard work.”
According to prior court filings and evidence presented at the trial of co-defendant Redinel Dervishaj, between May and November 2013, Nikolla, Llakatura and Dervishaj conspired and attempted to extort a Queens restaurant owner, demanding monthly payments in exchange for so-called “protection.” Shortly after the victim opened a restaurant in Astoria, Dervishaj paid him a visit and demanded $4,000 per month because the victim had opened in “our neighborhood.” The restaurant owner sought help from his friend Llakatura, at the time an NYPD officer in Staten Island. However, unbeknownst to the victim, Llakatura was conspiring with Dervishaj and Nikolla in the extortion. Llakatura actively discouraged the restaurant owner from reporting the extortion to the police and warned the victim that Dervishaj and his associates would physically harm him if he did not pay. When the victim failed to make the demanded payments, Nikolla violently threatened him on a public street in Queens, pointing a semiautomatic handgun at the victim, ready to fire, before the victim managed to escape in his car. Over the course of five months, each of the three defendants took turns collecting monthly payments from the Astoria restaurant owner, ultimately extorting $24,000 from him.
Between April 2012 and November 2013, Nikolla and Dervishaj also conspired and attempted to extort the owner of two nightclubs after he opened a new nightclub in Astoria. Nikolla approached the owner with an extortion demand, indicating to the victim that other businesses in the area were paying him for so-called “protection.” After the owner refused to pay, Nikolla and Dervishaj confronted him at a bar in Queens, trapping him in an enclosed space near the entrance. Nikolla then retrieved a firearm from Dervishaj’s side, stuck the firearm in the victim’s ribs, while yelling at the victim that if he didn’t pay, Nikolla would go to his house and beat him up in front of his wife and children. If the victim then continued to refuse to pay, Nikolla said, he would then beat the wife and children up in front of him.
Finally, during 2013, Nikolla, Dervishaj and Llakatura also conspired and attempted to extort a proprietor of two social clubs in Astoria. Accompanied by Dervishaj, Nikolla demanded payments of $1,000 per week from the proprietor for so-called “protection.” The victim refused to make the demanded payments and ceased going to his social clubs out of fear for his safety. Court-authorized wiretaps of the defendants’ telephones revealed that all three defendants worked together to locate the victim and force him to pay. In one instance, the defendants confronted a friend of the victim, badly beat him and pulled a gun on him, in an effort to locate and send a message to the victim. The victim ultimately fled to a foreign country for a period of time to avoid the defendants’ extortionate threats, and sold his social clubs.
The government’s case is being prosecuted by Assistant United States Attorneys Nadia Shihata, Patrick Hein and Kristin Mace.
The Defendant:
DENIS NIKOLLA
Age: 36
Brooklyn, New York
E.D.N.Y. Docket No. 13-CR-668 (ENV)
McHenry County Man Pleads Guilty to Four RobberiesRead the Press Release
ROCKFORD — A McHenry County man pleaded guilty today before U.S. District Judge Frederick J. Kapala to four charges of robbery.
SHAWN M. RANK, 47, of Woodstock, pleaded guilty to the robberies of Heartland Bank and Trust Company, 327 W. Main St., Genoa, on Jan. 15, 2016; the Cash Store, 1479 N. State St., Belvidere, on April 1, 2016; Harvard Savings Bank, 58 N. Ayer St., Harvard, on May 6, 2016; and Alpine Bank, 600 S. State St., Belvidere, on June 13, 2016.
According to the written plea agreement, Rank admitted that at 10:30 a.m. on Jan. 15, 2016, he walked directly to a teller’s station at the Heartland Bank and Trust Company in Genoa, pushed a blue zippered bank bag across the counter and told the teller to fill it with $50s and $100s. Rank opened his jacket and showed a gun to the teller. The teller placed $1,250 in the bank bag.
In addition, Rank admitted in the plea agreement that in the Cash Store robbery he walked up to an employee standing at the counter and told the employee it was a robbery. The employee placed $1,232 in a blue bank bag.
Rank further admitted in the plea agreement that he similarly robbed Harvard Savings Bank when he placed a blue zippered bag on the counter, displayed a gun, and demanded that the teller give him money. The teller handed $2,700 to Rank.
Rank also admitted that he robbed Alpine Bank in Belvidere, again using a blue zippered bag. When Rank demanded money, the teller then gave him $1,790 from her drawer.
On each count Rank faces a maximum sentence of 20 years’ imprisonment, a term of supervised release of up to 3 years following imprisonment, and a fine of up to $250,000, and restitution. The actual sentence will be determined by the United States District Court, guided by the Sentencing Guidelines. Sentencing is set for June 29, 2017, at 2:30 p.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The DeKalb County Sheriff’s Office and the Harvard, Genoa, and Belvidere Police Departments assisted in the investigation.
The government is represented by Assistant U.S. Attorney Margaret J. Schneider.
Mass. Resident Indicted on Sex Trafficking ChargesRead the Press Release
PROVIDENCE – A federal grand jury in Providence has returned a four-count indictment charging Andy Joseph, a/k/a Andrew J. Joseph, 24, of Brockton, Mass., with allegedly trafficking a 15-year-old Rhode Island female across state lines for the purpose of criminal sexual activity.
The indictment, returned on Thursday and announced today by United States Attorney Peter F. Neronha; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England; and Pawtucket Police Chief Paul King, charges Joseph with one count each of sex trafficking a child and transportation of minor with the intent to engage in criminal sexual activity, and two counts of traveling in interstate commerce with intent to engage in criminal sexual activity.
According to court documents, it is alleged that on June 15, 2016, Joseph, who had been communicating with the 15-year-old via an Internet web site, met with the teenager in Rhode Island and drove her to a hotel in Seekonk, Mass. It is alleged that at the hotel Joseph photographed the teenager and posted photographs of her in advertisements on Backpage.com, offering the teenager for commercial sexual activity.
It is alleged that between June 15 and August 13, 2016, Joseph arranged for sexual encounters involving the 15-year-old. It is alleged that following each commercial sexual encounter, most or all of the money was turned over to Joseph, at his insistence.
An indictment is merely an allegation 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.
Sex trafficking a child and transportation of minor with the intent to engage in criminal sexual activity are punishable by statutory penalties of a minimum of 10 years and up to life imprisonment to be followed by up to lifetime supervised release; traveling in interstate commerce with intent to engage in criminal sexual activity is punishable by up to 30 years imprisonment to be followed by up to lifetime supervised release.
Joseph has been detained in federal custody since his arrest on December 1, 2016, by HSI agents and Pawtucket Police.
The case is being prosecuted by Assistant U.S. Attorneys Terrence P. Donnelly and John P. McAdams. The matter was investigated by Homeland Security Investigations and Pawtucket Police.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Marion Prison Inmate Sentenced to an Additional 37 Months for Assault and Possessing a WeaponRead the Press Release
Francisco Jose Cantu, 31, an inmate at the United States Penitentiary at Marion, Illinois, was sentenced in United States District Court in Benton to a 37-month term of imprisonment for assaulting another inmate with a dangerous weapon and possessing a homemade knife within that facility, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. Cantu had previously pled guilty to a three count indictment charging him with assaulting a fellow inmate with a metal combination lock contained in a sock (counts 1 and 2) and possession of a homemade knife on a separate occasion (count 3). The offenses occurred on February 16, 2016, and March 6, 2016, respectively.
At the time these offenses, Cantu was serving a 360-month sentence, imposed in the Western District of Texas, for production of child pornography. The 37-month sentence was imposed consecutively to that sentence.
In addition to the term of imprisonment, Cantu was ordered to pay the United States special assessments totaling $300 and was placed on a three-year term of supervised release to follow his incarceration.
Cantu was immediately returned to the custody of the Federal Bureau of Prisons to resume serving his sentences.
The case was investigated by the Federal Bureau of Investigation with the assistance of the Federal Bureau of Prisons and was prosecuted by Assistant United States Attorney James M. Cutchin.
Manhattan U.S. Attorney Announces Extradition of Defendant Charged with Fraud and Money Laundering in Connection with Deceiving Homeowners into Selling Their HomesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (“SIGTARP”), and Maria T. Vullo, Financial Services Superintendent for the New York State Department of Financial Services (“DFS”), announced today the extradition from Ukraine of HERZEL MEIRI, who was indicted on March 16, 2016, on fraud and money laundering charges in connection with a scheme to fraudulently induce distressed homeowners to sell their homes to a company he owned and controlled. MEIRI, who arrived in the District yesterday, had been arrested by Ukrainian authorities on October 27, 2016. He will be arraigned in front of Magistrate Judge Ronald L. Ellis today. The case is assigned to United States District Judge Edgardo Ramos. MEIRI was the seventh defendant to be indicted in connection with the scheme.
U.S. Attorney Preet Bharara said: “Herzel Meiri allegedly concocted a callous scheme to swindle desperate homeowners out of their homes. As alleged, Meiri lied to his victims, who thought that they were getting the financial help they needed but instead were being tricked into signing over their homes. Thanks to our law enforcement partners – the FBI, SIGTARP, and DFS – Meiri is now in U.S. custody and will have to answer for his alleged crimes.”
Assistant Director-in-Charge William F. Sweeney Jr. said: “When desperate homeowners fall prey to false relief schemes, their vulnerabilities are often exploited by those who seek to benefit from their misfortune. As alleged, Meiri’s behavior caused serious damage to struggling families who unknowingly funded his extravagant scheme. The FBI continues to support partnerships within the financial industry and law enforcement as we work together to combat this serious crime.”
Special Inspector General for TARP Christy Goldsmith Romero said: “Herzel Meiri is charged with preying on struggling homeowners trying to avoid foreclosure. Meiri and his co-conspirators allegedly promised victims mortgage modifications when in fact they were swindling them out of their homes. SIGTARP thanks U.S. Attorney Bharara, Superintendent Vullo, and the FBI for their commitment to protecting taxpayers from TARP-related crime.”
DFS Financial Services Superintendent Maria T. Vullo said: “These allegations paint the portrait of a con artist who cold-heartedly preyed on financially distressed homeowners – some of whom are among our most vulnerable – to satisfy his selfish greed. The Department of Financial Services is proud to have worked with our fellow law enforcement partners in helping to bring this defendant to justice.”
According to the allegations in the Fourth Superseding Indictment, which was unsealed in November 2016, as well as the Complaints previously filed in this action[1]:
Since at least 2013, MEIRI and his co-defendants have defrauded distressed homeowners throughout the Bronx, Brooklyn, and Queens. MEIRI and others falsely represented to these homeowners – some of whom were elderly or in poor health – that they could assist them with a loan modification or similar relief from foreclosure that would allow the homeowners to save their homes. But rather than actually assisting these homeowners, the defendants deceived them into selling their homes to Launch Development LLC (“Launch Development”), a for-profit real estate company owned and controlled by MEIRI.
MEIRI and others lured victims through Homeowners Assistance Service of New York (“HASNY”), which purported to provide assistance to homeowners who were seeking to avoid foreclosure of their homes. As part of the scheme, MEIRI directed employees of Launch Development to solicit owners of distressed properties and invite them to meet with HASNY representatives so that they could learn more about avoiding foreclosure and saving their homes.
When a homeowner arrived at the HASNY office, he or she met with a co-conspirator, who typically advised the homeowner that HASNY could assist him or her with a loan modification. In other cases, the homeowner was advised that a loan modification could not be completed, but that the homeowner could engage in a type of short sale in which the homeowner would sell the property to a third party, Launch Development, and then within approximately 90 days arrange for a relative of the homeowner to repurchase the property from Launch Development. Homeowners were typically advised that they could remain in their homes throughout the entire process. At the closing that followed, a homeowner who had been led to believe that he or she was about to receive a loan modification or transfer the property to a trusted relative was encouraged to sign documents presented by another co-conspirator, which in some cases were blank. Unbeknownst to the homeowners, by signing the documents, they were selling to Launch Development the homes they had hoped to save. Homeowners often were then forced to vacate their homes soon thereafter, and Launch Development re-sold many of the homes, which were purchased at fraudulently deflated prices, for an enormous profit.
In addition, MEIRI and a co-conspirator transferred the proceeds of the home sales from Launch Development to other companies MEIRI owned and controlled, falsely describing the transfers as, among other things, rent payments. The proceeds were ultimately transferred back to Launch Development or spent on luxury items for MEIRI.
MEIRI is charged with one count of conspiracy to commit wire fraud and bank fraud and one count of conspiracy to commit bank fraud, each of which carries a maximum term of 30 years in prison. In addition, MEIRI is charged with two counts of money laundering, one of which carries a maximum term of 20 years in prison and one of which carries a maximum term of 10 years in prison, and one count of conspiracy to commit money laundering, which carries a maximum term of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
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Mr. Bharara praised the outstanding work of the FBI, SIGTARP, and DFS for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s General Crimes Unit. Assistant U.S. Attorneys Jaimie L. Nawaday and Andrew Thomas are in charge of the case.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the Complaints, and the description of the Indictment and the Complaints set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Manchester Man Sentenced to 72 Months in Prison for Robbing Credit UnionRead the Press Release
Concord, N.H.– Emily Gray Rice, United States Attorney for the District of New Hampshire, announced that Derek Potocki, 32, previously of Manchester, New Hampshire, was sentenced yesterday to 72 months in prison for his role in the robbery of a credit union in March 2015.
According to court documents and statements made in court, Potocki pressured Melissa Bourcher, 28, previously of Manchester, to rob a bank for him. Potocki selected the target and provided Boucher with instructions, including how to dress and disguise her appearance. The two proceeded to the Members First Credit Union on Bridge Street in Manchester on the morning of March 3, 2015. Boucher, who was unarmed at the time, did as she had been instructed, entering the bank alone, passing a note to the teller, and obtaining approximately $6,250. After she fled with the cash, Potocki and Boucher divided the proceeds. Boucher then used a portion of the proceeds to purchase heroin and overdosed. When paramedics were able to resuscitate her, large amounts of cash fell out of her clothing. She was arrested. Potocki took his portion of the funds and fled the area. He was arrested in Massachusetts on March 12, 2015 and has remained in custody on unrelated charges since that date.
Potocki sentence followed his earlier guilty plea. After serving his prison sentence, Potocki will spend three years on supervised release. He also was ordered to pay restitution to the credit union.
Boucher previously pleaded guilty to her role in the robbery and was sentenced to 41 months’ imprisonment.
This matter was investigated by the Manchester Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Charles L. Rombeau.
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Maintenance Director for Aircraft Company Pleads Guilty to Obstructing FAA and NTSB InvestigationsRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that David Esteves (52, Port Richey) today pleaded guilty to obstructing proceedings before a federal agency or department. He faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Esteves was the Director of Maintenance at Avantair, Inc., a now-defunct aircraft fractional ownership company based at St. Petersburg-Clearwater International Airport in Clearwater, Florida. On the morning of July 28, 2012, a Piaggio P.180 Avanti airplane owned and operated by Avantair was taking off from Camarillo, California, en route to San Diego when the plane’s left elevator fell off on the runway. The plane managed to land in San Diego and pick up passengers for a second flight to Henderson, Nevada, during which the captain reported to Avantair headquarters in Clearwater that he was experiencing difficulty controlling the plane. The report was captured on the plane’s Cockpit Voice Recorder (CVR).
After landing in Henderson, the missing elevator was discovered, and the nuts and bolts attaching the plane’s right elevator were also found to be unsafely loose. Federal regulations and company policy required that the plane be quarantined pending an investigation by the National Transportation Safety Board (“NTSB”) and Federal Aviation Administration (“FAA”), which soon arrived to investigate. Before federal investigators were able to inspect the plane, however, Esteves instructed a third-party contractor to remove the loose right elevator and send it back to company headquarters. Esteves also instructed the contractor to power up the plane, knowing that doing so would erase the CVR, including the recording of the flight to Henderson in which the pilot reported problems controlling the plane. These actions were undertaken to obstruct and impede the NTSB’s and FAA’s investigation of the accident and Avantair’s continuing operation of its aircraft in an unsafe condition.
This case was investigated by the Office of the Inspector General for the U.S. Department of Transportation. It is being prosecuted by Assistant United States Attorney Eric K. Gerard.
Madison County Man Charged with Child Pornography OffensesRead the Press Release
Thomas J. Richter, 30, from Troy, Illinois was charged on March 7, 2017 in federal court by a two-count criminal complaint alleging Distribution and Receipt of Child Pornography, United States Attorney Donald S. Boyce has announced. After a detention hearing held today, Richter was released on bond with electronic leg monitoring.
The offenses charged in the criminal complaint allege that in October and November 2016, Richter distributed and received numerous images containing child pornography using an internet application. If convicted of distribution and/or receipt of child pornography, Richter faces a term of imprisonment of not less than five (5) years up to twenty (20) years, a fine up to $250,000, and a term of supervised release of not less than five (5) years up to life on each count.
A criminal complaint is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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.”
The case was investigated by the Madison County Sheriff’s Department and the Federal Bureau of Investigation’s Metro East Cyber Crimes and Analysis Task Force. The case is assigned to Assistant United States Attorney Christopher Hoell.
Lubbock Woman Sentenced to 87 Months in Federal Prison for Her Role in Methamphetamine Distribution ConspiracyRead the Press Release
LUBBOCK, Texas —Arleen Theres Keithley, 36, was sentenced this morning before U.S. District Judge Sam R. Cummings for her role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Keithley was sentenced to 87 months in federal prison. Keithly pleaded guilty in November 2016 to one count of possession with intent to distribute methamphetamine and aiding and abetting.
According to documents filed in the case, on April 30, 2016, a trooper with the Texas Department of Public Safety (DPS) stopped a vehicle in Lubbock for traffic violations. Keithley was the driver; co-defendant Crystal Ann Alaniz was the passenger. Keithley was arrested for driving with an invalid license, and Alaniz, who had several outstanding warrants, was also placed under arrest.
Both Keithley and Alaniz were placed in the trooper’s vehicle. The in-car video recording system captured Keithley maneuver her hands—while handcuffed—to her left breast area and force a substance in a plastic bag out of her bra. Keithley then used her teeth to remove the item from her bra and toss it to the back seat area where Alaniz was seated. Alaniz hid the item in her pants. Both women were transported to the Lubbock County Detention Center. When asked if either was in possession of any contraband, Alaniz initially stated, “no,” before admitting “I have stuff on me.” Alaniz was searched and two plastic bags containing suspected methamphetamine were found in her pants. Alaniz was also in possession of two plastic bags that contained several smaller plastic bags with markings consistent with narcotics trafficking. Two additional plastic bags, containing suspected methamphetamine were found in Keithley’s bra. Two bundles of money, totaling nearly $2,000 were found in Keithley’s purse along with a digital scale that contained drug residue. Keithley also had $2,500 in small bills on her person.
The Texas DPS Crime Lab determined that the suspected methamphetamine was in fact methamphetamine, and it weighed a total of 54.93 grams.
The Lubbock Police Department, the Littlefield Police Department, the Texas Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Sean Long prosecuted.
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Los Angeles Man Convicted of Running Multimillion Dollar Foreclosure Rescue Scam in Bakersfield, Visalia and SalinasRead the Press Release
FRESNO, Calif. — After a four-day trial, a federal jury found Martin Calzada, 29, of Norwalk, guilty today of one count of conspiracy to commit mail fraud and eight counts of mail fraud affecting a financial institution, United States Attorney Phillip A. Talbert announced. The trial was held before United States Chief District Judge Lawrence J. O'Neill.
According to evidence presented at trial, Calzada conspired to defraud homeowners facing foreclosure. Calzada and other employees of Star Reliable Mortgage, which had offices in Bakersfield, Visalia, and Salinas, targeted distressed homeowners with a fraudulent “loan elimination” scheme. Between approximately August 2010 and October 2011, Star Reliable charged clients an upfront fee for its services – ranging from $2,500 up to $4,500 – as well as monthly fees, based on false promises that the clients could own their homes “free and clear” as a result of Star Reliable’s services. Clients paid hundreds of thousands of dollars to Star Reliable and at least $300,000 was transferred from Star Reliable into Calzada’s bank accounts. In furtherance of the scheme, Calzada and other employees at Star Reliable filed at county recorders’ offices fraudulent documents on behalf of the homeowner-clients, which purported to replace the legitimate property trustees with fictitious trusts affiliated with the defendant and Star Reliable, all in an effort to “cloud title” and halt or stall the foreclosure process. Additionally, Calzada, and other employees working at his direction told Star Reliable clients to stop paying their mortgages. They also falsely represented that Star Reliable clients had one million dollars in a U.S. government account that could be used to pay-off a homeowner’s mortgage.
According to court documents, instead of owning their homes “free and clear,” many of Star Reliable’s clients lost their homes in foreclosure. The scheme caused more than 100 homeowner-clients to pay approximately $875,000 to Star Reliable and lending institutions to lose more than $4 million.
This case is the product of an investigation by the Federal Bureau of Investigation and the Tulare County District Attorney’s Office. Assistant United States Attorneys Christopher D. Baker and Patrick J. Suter are prosecuting the case.
Calzada was remanded into custody following the announcement of the verdict. In a related case in December 2014, co-conspirators Juan Ramon Curiel, 38, of Visalia, and Santiago Palacios-Hernandez, 47, of Salinas, pleaded guilty to conspiracy to commit mail fraud. Curiel additionally pleaded guilty to one count of bankruptcy fraud. They are scheduled to be sentenced by Judge O’Neill on April 10, 2017.
Calzada is scheduled to be sentenced by Judge O'Neill on June 5, 2017. Calzada faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.