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Wednesday 8 March 2017
Georgia Man Pleads Guilty to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Eric Hubbard, 34, of Stone Mountain, Georgia, pleaded guilty to being a felon in possession of a firearm before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that on June 19, 2014, the defendant was walking down Genesee Street and was approached by a pair of Buffalo Police Officers. After refusing to show identification, the officers patted Hubbard down and detected a gun. A search revealed a 9mm semi-automatic handgun, and 13 rounds of ammunition. The defendant subsequently stated to the arresting officers that the gun was “his girl’s” and that he was carrying it to protect himself.
As a result of two prior convictions in the State of Michigan, the first in 2002 for breaking and entering, and the second in 2003 for attempting to break and enter and assaulting or resisting a police officer, the defendant is prohibited from legally possessing a firearm.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Ashan Benedict, Special Agent-in-Charge, New York Field Division and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for June 21, 2017, at 9:00 a.m. before Judge Skretny.
Four More Aliens Indicted on Immigration ViolationsRead the Press Release
RALEIGH – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging ANGEL BRITO-ALVAREZ, age 32, of Mexico, ELEAZAR GUTIERREZ-TORRES, age 28, of Mexico, OSCAR GEOVANI OLIVERA-HERNANDEZ, age 23, of Honduras, and GILBERTO ORDUNO-BUSTAMANTE, age 38, of Mexico, with Illegal Reentry of a Deported Alien.
If convicted of Illegal Reentry of a Deported Alien, GUTIERREZ-TORRES, and OLIVERA-HERNANDEZ would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
ORDUNO-BUSTAMANTE is alleged to have been previously deported subsequent to a felony conviction (possession of a controlled substance). Therefore, if convicted, he faces a maximum imprisonment term of ten years.
BRITO-ALVAREZ is alleged to have been previously deported subsequent to an aggravated felony conviction (conspiracy to traffic in methamphetamine). Therefore, if convicted, he faces a maximum imprisonment term of twenty years.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by the Department of Homeland Security, specifically, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Four Individuals Charged with Federal Drug and Firearms Offenses Arising from 32-Pound Methamphetamine DealRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez and Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced the arraignment this morning of four defendants in federal court in Albuquerque, N.M., on methamphetamine and firearms charges arising from an investigation by the ATF that culminated on Feb. 9, 2017, with the seizure of 32-pounds of methamphetamine on Feb. 9, 2017.
The four defendants, Efrain Espinoza-Pena, 44, a Mexican national illegally residing in Albuquerque, Cordelia Louisa Espinosa, 44, of Albuquerque, Edgar Madrid-Rascon, 31, a Mexican national illegally residing in Albuquerque, and Hector Hugo Magana, 33, of Redwood, Calif., are charged in a four-count indictment, which was filed on Feb. 28, 2017. All four defendants entered not guilty pleas to the indictment during their arraignment hearings.
According to the indictment, the four defendants participated in a methamphetamine trafficking conspiracy that began in April 2015 and continued until Feb. 2017, and operated in Bernalillo and Valencia Counties, N.M. The indictment also charges Espinoza-Pena and Espinosa with distributing methamphetamine in Bernalillo County on Dec. 7, 2016, and Espinoza-Pena, Madrid-Rascon and Magana with possessing distribution quantities of methamphetamine in Valencia County on Feb. 9, 2017. It also charges Madrid-Rascon with using and carrying a firearm on Feb. 9, 2017, in furtherance of a drug trafficking crime.
According to a criminal complaint filed on Feb. 2, 2017, Espinoza-Pena and Espinosa allegedly sold approximately 553 grams of methamphetamine to an ATF task force officer who was participating in an ATF undercover investigation. The transaction allegedly took place in the vicinity of the Isleta Resort and Casino on Isleta Pueblo, N.M.
A second criminal complaint, which was filed on Feb. 10, 2017, alleges that in Feb. 2017, Espinoza-Pena negotiated to sell 32 pounds of methamphetamine to ATF special agents who were part of ATF’s undercover investigation. The undercover agents allegedly met with Espinoza-Pena and Magana in the vicinity of a convenience store in Los Lunas, N.M., and then drove to the Mid Valley Airpark in Los Luna, where they met Madrid-Rascon, who arrived in a Dodge Durango. After the undercover agents observed methamphetamine located in a bag in the Durango’s back seat, they arrested Espinoza-Pena, Madrid-Rascon and Magana.
The criminal complaint alleges that during a search of the Durango, the ATF agents seized 32 packages, each of which contained a pound of methamphetamine. They also allegedly seized a loaded semi-automatic pistol and a loaded shotgun from the Durango.
Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law. If convicted, the defendants each face a statutory penalty of a mandatory minimum of ten years and a maximum of life imprisonment on the methamphetamine trafficking charges. Madrid-Rascon faces a mandatory minimum of five years of imprisonment on the firearms charge that must be served consecutive to the sentence imposed on the methamphetamine charges. Espinoza-Pena and Madrid-Rascon each will be deported after completing his prison sentence.
The case was investigated by ATF’s Albuquerque office and is being prosecuted by Special Assistant U.S. Attorney David P. Cowen.
Former Raleigh Resident Sentenced for Filing Fraudulent Federal Income Tax ReturnsRead the Press Release
NEW BERN – The United States Attorney’s Office announced that today in Federal court, Senior United States District Judge Malcolm J. Howard sentenced NEVADA T. BEARD, 45, of Charlotte, North Carolina to 24 months imprisonment, followed by 3 years of supervised release.
BEARD was named in a Criminal Information filed on October 4, 2016 which charged him with making and presenting a false, fictitious and fraudulent claim for Federal income tax refund. On November 7, 2016, BEARD pled guilty to the charge.
Michael C. Daniels, Acting Special Agent in Charge, IRS-Criminal Investigation, Charlotte Field Office, stated, "As we are in the midst of the tax filing season, those who might consider preparing false tax returns should be aware of the extremely negative consequences as evidenced today. Today’s sentencing of Mr. Beard again emphasizes that the Internal Revenue Service and U.S. Attorney’s Office will continue their aggressive pursuit of those who attempt to defraud America’s tax system.”
According to the IRS investigation, between approximately 2013 and 2015, BEARD operated a purported tax return preparation business, “Beard Tax Solutions,” out of his then-residence in Raleigh. BEARD generated customers through word-of-mouth advertisement, referrals, and direct solicitations. After collecting a customer’s personal information, BEARD used Turbo Tax online to prepare and electronically file with the IRS a Federal income tax return that incorporated false W-2 wages, household help income, and/or other false items for the purpose of artificially inflating the tax refund amount. BEARD would not identify himself as the preparer on the face of the return, as required. The IRS investigation identified over 100 false returns attributable to BEARD. These returns generated nearly $300,000 in tax losses. Throughout the 2013 tax filing season, BEARD was on Federal supervised release for a prior firearms conviction in the Eastern District of North Carolina.
Investigation of this case was conducted by IRS-Criminal Investigation. Assistant United States Attorney Adam F. Hulbig prosecuted the case for the government.
Former Prince George’s County State Delegate Indicted for a Bribery Conspiracy and Wire FraudRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted former Maryland State Delegate Michael Lynn Vaughn, age 59, of Bowie, Maryland, for a bribery conspiracy in connection with a scheme in which he allegedly accepted bribes in exchange for influencing the performance of his official duties, as well as for stealing campaign funds. The indictment was returned on March 6, 2017, and unsealed late on March 7, 2017. Vaughn’s initial appearance is scheduled today at 1:00 p.m. before U.S. Magistrate Judge William B. Connelly in U.S. District Court in Greenbelt, Maryland.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge Thomas J. Holloman of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief Hank Stawinski of the Prince George’s County Police Department.
According to the eight count indictment, Vaughn was a Maryland State Delegate from January 2003 until January 2017, representing District 24, which covered portions of Prince George’s County, Maryland, and was the Deputy Majority Whip and a member of the Economic Matters Committee.
The indictment alleges that from January 2015 through April 2016, Vaughn conspired with former Prince George’s County Liquor Board member and later, Chief Liquor Inspector, David Dae Sok Son, liquor store owners Young Jung Paig, Shin Ja Lee, and others in order to enrich himself personally, in exchange for Vaughn performing and agreeing to perform favorable official action.
Specifically, the indictment alleges that Vaughn took over $10,000 in cash bribe payments from Paig, Lee, and others, in exchange for influencing and voting for the Sunday Sales Bill, which established up to 100 Sunday liquor sales permits in Prince George’s County for holders of Class A licenses and Class B licenses with an off-sale privilege; and the Additional Sunday Permits Bill, which raised the limit of Sunday liquor sales permits in Prince George’s County from 100 to 105, and authorized the additional five permits “only to holders of a Class B beer, wine, and liquor license with an off-sale privilege that acquired the license on or after January 1, 2016.” Vaughn voted in favor of the bills, which benefitted Paig and Lee’s liquor stores, in the Economic Matters Committee, and in the Maryland House of Delegates.
Further, the indictment alleges that from 2012 through 2016, Vaughn diverted money donated to his campaign finance committee, Friends of Michael Vaughn (FOMV), for his personal use. A candidate, such as Vaughn, is prohibited from personally making disbursements from a political committee established to promote his candidacy. According to the indictment, Vaughn withdrew campaign funds from the FOMV account to use for personal expenses, including electronically transferring money from the FOMV campaign account directly to Vaughn’s personal bank account, making payments to his personal American Express credit card account, and making payments of his personal income tax to the Internal Revenue Service. In addition, Vaughn allegedly received campaign contributions, deposited them into the FOMV account, and then converted them to his personal use without identifying the contributions on campaign finance reports made to the Maryland State Board of Elections. For example, from June 10, 2015, through November 10, 2015, at least 25 checks totaling approximately $11,175, were deposited into the FOMV account but not reported on the FOMV campaign finance report. As with the other amounts deposited into the FOMV account, the funds from these checks were then withdrawn by Vaughn and converted for his personal use. The indictment alleges that Vaughn caused the filing of fraudulent campaign finance reports with the Maryland State Board of Elections in order to conceal the scheme from FOMV and the FOMV campaign contributors. For example, as of January 14, 2015, the campaign finance report filed with the Maryland State Board of Elections showed a balance in the FOMV account of $64,462.44. The indictment alleges that the expenditures identified in the report did not include substantial cash withdrawals made by Vaughn, and that the account actual balance on that date, according to bank statements, was only $1,654.36.
If convicted, Vaughn faces a maximum sentence of five years in prison for the conspiracy; a maximum of 10 years in prison for each of four counts of bribery; and a maximum of 20 years in prison for each of three counts of wire fraud.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI, IRS-CI, and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Thomas P. Windom, Menaka S. Kalaskar, and Arun G. Rao, who are prosecuting the case.
Former N.J. Lawyer Sentenced to Four Years in Prison for $40.8 Million Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – A former New Jersey lawyer was sentenced today to 48 months in prison for participating in a conspiracy that caused lenders to release $40.8 million based on fraudulent mortgage loan applications and laundered the proceeds of the fraud, U.S. Attorney Paul J. Fishman announced.
Joseph W. Witkowski, 70, of Flemington, New Jersey, previously pleaded guilty to an indictment charging him with one count each of conspiracy to commit wire fraud and conspiracy to commit money laundering. U.S. District Judge Joseph H. Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Witkowski and his conspirators located oceanfront condominiums overbuilt by financially distressed developers in Wildwood Crest, New Jersey; premier real estate in vacation destinations in Georgia and South Carolina; and properties in New Jersey owned by financially distressed homeowners facing foreclosure. They then recruited “straw buyers” – people with good credit scores but lacking the financial resources to qualify for mortgage loans – to purchase those properties.
Witkowski and his conspirators created false documents, including fake W-2 forms, income tax returns, investment statements, and rental agreements, to make the straw buyers appear more creditworthy than they actually were. They also established numerous telephone lines for companies owned by some of the conspirators so that when a lender contacted the telephone number, the conspirators could falsely verify that a straw buyer was employed by the company listed on his or her fraudulent loan application.
Witkowski also caused fraudulent mortgage loan applications in the name of the straw buyers and supporting documents, which attributed to the straw buyers inflated income and assets, to be submitted to mortgage lenders. Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings on the properties, Witkowski and his conspirators had some of the funds wired or checks deposited into various accounts that he and his conspirators controlled.
In addition to the prison term, Judge Rodriguez sentenced Witkowski to three years of supervised release and ordered restitution of $13,105570. As part of his plea agreement, he must forfeit $2,412,899, representing the proceeds of the fraud.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Diana Carrig of the U.S. Attorney’s Office in Camden.
Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender, Camden
Former Financial Advisor Charged with Defrauding Client in Private Investment SchemeRead the Press Release
SPRINGFIELD, Ill. – A federal grand jury has indicted a Champaign, Ill., man who previously worked as a financial advisor at a bank with falsely representing a private investment scheme to a customer that resulted in the client losing money. The indictment charges Paul Schuerger, 44, of the 2700 block of Hunters Pond Run, with mail fraud and money laundering.
A summons will be issued for Schuerger’s initial appearance in federal court in Urbana on a date to be scheduled by the U.S. Clerk of the Court.
According to the indictment, in early 2012, when Schuerger was working at a Kankakee bank as a financial advisor, he allegedly falsely represented to a bank customer that he had a private investment opportunity that would provide a 10 percent rate of return. The customer gave Schuerger $100,000 to invest as Schuerger proposed. As part of the scheme, Schuerger allegedly provided the customer with a private agreement that, in the event of default, guaranteed the customer equity rights totaling approximately $155,000 for two properties, when, in fact, Schuerger did not have such equity in the properties.
Instead of investing the money, the indictment alleges that Schuerger deposited the money into a personal bank account. Within a month, Schuerger had allegedly spent nearly all the customer’s investment of $100,000 for his personal benefit, including to pay off personal debts. According to the indictment, from April 2012 to March 2016, Schuerger lulled the customer into a false sense of security by sending the customer monthly payments by mail in the amount of $833. In May 2016, Schuerger filed a Chapter 13 petition for bankruptcy.
If convicted, the statutory maximum penalty for each count of mail fraud (five counts) is 20 years in prison, and a fine of up to $250,000; for the offense of money laundering (one count) the maximum statutory penalty is up to 10 years in prison.
The FDIC Office of Inspector General conducted the investigation. Assistant U.S. Attorney Eugene L. Miller is prosecuting the case.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Former CEO of Hollywood Payroll Company Sentenced to Two Years in Federal Prison in Tax Case Related to Purloined Company FundsRead the Press Release
RIVERSIDE, California – The former CEO of Axium International, Inc., a leading Hollywood payroll services company until it collapsed in 2008, has been sentenced to two years in federal prison for defrauding the Internal Revenue Service by failing to report as income millions of dollars he skimmed from company coffers.
John Visconti, 74, of Beverly Hills, was sentenced on Monday by United States District Judge Jesus G. Bernal, who also ordered the defendant to pay $1.75 million in restitution to the Internal Revenue Service.
Visconti was convicted by a federal jury in October of tax evasion, conspiracy to defraud the IRS, and filing a false tax return.
Axium was one of the largest payroll services companies serving the entertainment industry, and its client list included studios, Fortune 500 companies and broadcasters. At its height, Axium’s gross revenues were well over $1 billion per year. As the payroll services provider and employer of record for its client entities, Axium regularly submitted payroll tax returns to the IRS and to the taxing authorities of several states. In some cases, those tax returns generated substantial refunds, which were supposed to be held in trust by Axium.
As the result of gross mismanagement, Axium collapsed in 2008 after revelations that its tax delinquencies exceeded $100 million. These tax delinquencies resulted in the IRS assessing a $15 million recovery penalty against Visconti.
According to the evidence presented at trial last fall, Visconti and Axium’s former chief operating officer – Ronald Garber, 62, of Santa Monica – used a variety of elaborate mechanisms to divert approximately $5.1 million from Axium. Additionally, Visconti took $1.9 million in corporate loans that he did not repay.
As part of the scheme, Visconti diverted tax refund checks payable to Axium and its subsidiaries into secret bank accounts the he and Garber controlled. These diverted funds were not shown on corporate books and records, and they were not disclosed to the Axium accounting department. Garber and Visconti also diverted approximately $570,000 from Axium by paying invoices submitted by a sham construction company that they controlled. The two men also conspired to have thousands of dollars in cash from Axium delivered to them on a weekly basis.
“While they were entrusted with overseeing the business activities of a company that was taking in hundreds of millions of dollars every year, these defendants were stealing millions from Axium,” said United States Attorney Eileen M. Decker. “In addition to harming their employer and its clients, the defendants defrauded the government by failing to pay taxes on their ill-gotten gains.”
Visconti and Garber caused millions of dollars to be diverted from Axium, and Visconti reported none of the funds pocketed by him on his federal income tax returns.
“Using sham entities and secret bank accounts, Mr. Visconti drained Axium of millions of dollars in cash and assets to finance his lavish lifestyle,” stated Acting Special Agent in Charge Anthony J. Orlando of IRS Criminal Investigation. “Taxpayers and businesses can be assured that IRS Criminal Investigation will continue to vigorously pursue any payroll business that collects taxes and fails to pay them over to the IRS.”
When he imposed the two-year sentence on Monday, Judge Bernal said he was balancing the seriousness of the crimes against Visconti’s recent diagnosis with a serious medical condition.
Ronald Garber previously pleaded guilty to two counts of subscribing to a false tax return and is scheduled to be sentenced later this year. Another former Axium associate – Christina Futak, 60, of Orange – pleaded guilty to tax evasion and was sentenced to three years of probation. Futak, a former tax professional, also stipulated to the entry of a civil order enjoining her from engaging in the business of tax preparation.
The Chapter 11 bankruptcy case for Axium, initially filed in January 2008, remains an active case proceeding in which thousands of documents have been filed.
The investigation into Axium was conducted by IRS Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Angela J. Davis of the Major Frauds Section.
Former Amherst Woman Sentenced for Her Role in Plot to Murder Ex-HusbandRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Debra Arno, 58, formerly of Amherst, NY, who was convicted of solicitation of interstate murder for hire, was sentenced to time served (21 months) by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that on May 26, 2015, the Kenmore Police Department received a tip about a murder for hire plan. On May 27, 2015, Kenmore Police, with the assistance of the East Aurora Police Department, identified the victims, who included Arno’s ex-husband and his current wife, and made them aware of the potential murder-for-hire plot.
On May 28, 2015, a search warrant was executed at the residence of co-defendant Lauren Frye, the person solicited by Arno to carry out the murders. Officers seized a number of items including multiple letters from Arno to Frye, photos of the intended victims, a diagram of their residence, and a schedule of their activities. In one letter written by Arno to Frye, Arno stated “I am enclosing $6000. I will give you an additional $14,000 upon completion. A total of $20,000. A man, his description and address enclosed, is to be eliminated or hurt. He lives with 2 other people. Both expendable (if there is an accident).”
During the search of Frye’s residence, officers also seized two cellular telephones and three shotguns. The cellular telephones revealed extensive text messaging between Arno and Frye. Arno repeatedly implored Frye to get the murder done.
Frye was also previously convicted and sentenced to 18 months in prison.
Today’s sentencing is the result of an investigation by the Village of Kenmore Police Department, under the direction of Chief Peter Breitnauer; the East Aurora Police Department, under the direction of Chief Ronald Krowka; and the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen.
Florida Medical Clinic Manager and Son Arrested for “Pill Mill” Conspiracy to Distribute Oxycodone and Other Controlled SubstancesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the arrests and return of an indictment charging Yolanda Camara (47) and Justin Oliveria (26), both of Brandon, Florida, with one count of conspiracy and five counts of distributing controlled substances outside the usual course of professional medical practice and without a legitimate medical purpose from the Family Medical Express Center, Inc., a medical clinic located at 107 W. Robertson Street in Brandon, Florida. Camara is a part-owner and manager of the clinic. Oliveria, Camara’s son, is an employee of the clinic.
If convicted, each faces up to 20 years in federal prison for the conspiracy count and up to 20 years on each of the drug distribution counts. Camara is also charged with one count of lying to federal investigators during the investigation, that charge carries a maximum penalty of five years’ imprisonment. The indictment also notifies the individuals that the United States intends to forfeit a Brandon residence and seek a forfeiture money judgment of at least $709,651.75, which are alleged to be traceable proceeds of the offenses.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration and the St. Petersburg Police Department. It will be prosecuted by Assistant United States Attorney Daniel George.
Federal Indictment: Two Men Robbed Convenience Store in TopekaRead the Press Release
TOPEKA, KAN. – Two Topeka men were indicted Wednesday on federal charges of robbing a convenience store, U.S. Attorney Tom Beall said.
Marsoleno Devon Ryland, 34, and Christopher Allen Bush, 26, both of Topeka, are charged with one count of commercial robbery. The indictment alleges that on Feb. 2, 2017, they robbed Casey’s General Store at 600 S.E. Rice Road in Topeka.
If convicted, they face up to 20 years in federal prison and a fine up to $250,000. The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
OTHER GRAND JURY INDICTMENTS
Marquell D. Hill, 31, Wichita, Kan., is charged with one count of commercial robbery, one count of brandishing a firearm during a robbery and one count of unlawful possession of a firearm following a felony conviction.
The indictment alleges that Hill brandished a Model AP9 handgun on March 2, 2017, when he robbed the Family Dollar at 2201 E. Central in Wichita.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000 on the robbery charge, not less than seven years on the brandishing charge, and up to 10 years on the other charge. The Wichita Police Department and the FBI investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
James Carter Heard, Jr., 45, Junction City, Kan., is charged with one count of failing to register as required by the federal Sex Offender Registration and Notification Act.
He faces up to 10 years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
Henry D. McKnight, 20, who is in custody at the Shawnee County Jail, is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Dec. 24, 2016, in Topeka, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Dustin Slinkard is prosecuting.
Tyler D. Vickery, 22, who is in custody in the Shawnee County Jail, is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Jan. 21, 2017, in Topeka, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
Troy M. Shields, 45, and Chas W. Summerville, 28, both of whom are in custody at the Shawnee County Jail, are charged with one count each of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred Feb. 21, 2017, in Topeka, Kan.
If convicted, each of them faces up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Duston Slinkard is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Federal Indictment Charges Six in Methamphetamine Distribution ConspiracyRead the Press Release
LUBBOCK — Six defendants have been charged in a federal indictment, unsealed this week, with felony offenses stemming from their role in a methamphetamine distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Five defendants have made their initial appearance in federal court in Lubbock before U.S. Magistrate D. Gordon Bryant, Jr. and will remain in custody pending trial. One defendant remains a fugitive.
The nine-count indictment charges each of the following defendants with one count of conspiracy to distribute and possess with intent to distribute methamphetamine:
Isaias Perez-Benito, 31, of Amarillo
Juan Rodriguez Galindo, aka “Johnny,” 42, of Amarillo
Corina Villalpando, 50, of Plainview
Dusty Lee Stowers, 29, of Friona
Mona Lesa Thomas, aka “Lisa,” 52, of Lubbock
In addition, each defendant is charged with additional substantive counts of distribution of methamphetamine. Perez-Benito was an illegal alien and unlawfully in the United States at the time of the offenses charged and is charged with an additional count of illegal alien in possession of firearms.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the conspiracy count carries statutory penalties ranging from 5 years to life in federal prison and a $5 million to $10 million fine. The other substantive drug offenses carry similar penalties. If convicted of the firearm charge, Perez-Benito also faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine.
The Drug Enforcement Administration, Texas Department of Public Safety, Friona Police Department, and Plainview Police Department are in charge of the investigation.
Assistant U.S. Attorney Sean Long is in charge of the prosecution.
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Ethel Investment Adviser Convicted of Stealing up to $9.5 Million in an Investment Fraud SchemeRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced the conviction of a former investment adviser who stole up to $9.5 million from his victims in an investment fraud scheme.
On March 6, 2017, BRYAN LEE ADDINGTON, age 55, of Ethel, Louisiana, pled guilty to mail fraud and aggravated identity theft before Senior U.S. District Judge James J. Brady. As a result of his guilty pleas, ADDINGTON faces imprisonment, fines, restitution orders, forfeiture, and a term of supervised release following imprisonment. A sentencing date has not yet been scheduled.
As ADDINGTON acknowledged in court during his guilty plea, from in or about January 2010 through at least April 2016, he executed a fraudulent scheme to defraud victim investors through materially false and fraudulent pretenses, promises, and representations. Throughout the scheme, as ADDINGTON solicited funds from clients, he failed to invest the investment funds as promised and instead sent them false account statements often addressed from non-existent post office boxes. ADDINGTON purportedly paid distributions to his victims, but such distributions were often paid with money that actually belonged to other victim investors. ADDINGTON also admitted to forging his associate’s signature for the purpose of furthering his fraud scheme. ADDINGTON fraudulently obtained between $1.5 million and $9.5 million from his scheme; the court will determine a specific amount at or prior to ADDINGTON’S sentencing.
U.S. Attorney Green stated: “Investment fraud often leaves a devastated trail of victims in its wake. That is one of the many reasons investment fraud is, and will continue to be, a high priority for my office and the U.S. Department of Justice generally. I commend the diligent and outstanding efforts of all the prosecutors and agents who have worked on this important matter.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, and the Louisiana Office of Financial Institutions, in coordination with the Louisiana Department of Insurance and Louisiana State Police. It is being prosecuted by Assistant United States Attorneys Ryan Rezaei and Ryan Crosswell.
Eleven Facing Federal Indictment for a Drug Distribution Organization Allegedly Operating in Latrobe Homes Public Housing ComplexRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging eleven alleged members of a drug trafficking organization (DTO), with conspiracy to distribute and possess with the intent to distribute heroin, cocaine and crack cocaine. The indictment was returned on March 7, 2017.
The indictment charges the following defendants:
Terrell Allen, a/k/a Fat Relly and Chino, age 43, of Baltimore;
Lawrence Trogdon, a/k/a Bucky, age 34, of Dundalk, Maryland;Laroy Weaver, a/k/a Jones and Rell, age 34, of Baltimore;
Brandon Brown, a/k/a Ball, age 27, of Baltimore;
Delanie McCloud, a/k/a D-money, age 31, of Baltimore;
Deangelo Rouzer, a/k/a Wacky, age 35, of Gwynn Oak, Maryland;Trey Allen, age 24, of Baltimore;
Valleria Rice, a/k/a Muk, age 26, of Baltimore;
Michael Grant, age 37, of Baltimore;
Dantre Hill, age 21, of Baltimore; and
Mavrreck Boone, a/k/a Rocie, age 24, of Baltimore.
The indictment was 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; and Commissioner Kevin Davis of the Baltimore Police Department.
“Drug-dealing organizations are responsible for most of the murders and shootings in Baltimore,” said U.S. Attorney Rod J. Rosenstein.
“There is no room in Baltimore for individuals who have no regard for the safety of our communities and who disrupt the lives of law-abiding citizens. This case and its thousands of hours of investigative work represents the second phase of multiple planned enforcement efforts targeting the individuals and organizations that foment the violence that continues to plague our city,” said Danny Board, ATF Baltimore Field Division Special Agent in Charge.
According to the indictment and the previously filed criminal complaint, from June 2016 through February 22, 2017, the Allen DTO allegedly sold heroin, cocaine and crack cocaine from open-air drug shops in Baltimore City, including in the Latrobe Homes housing complex. According to the affidavit, an ongoing feud between the Allen DTO and a rival drug organization resulted in one of the defendants being shot.
As noted, the defendants were previously charged by a federal criminal complaint. Six of the defendants were arrested on February 22, 2017, two were already in custody on state charges, and one was arrested since then. In addition to the arrests on February 22, 2017, search warrants were executed at six locations believed to be connected to the conspiracy, including the residences of several of the alleged conspirators. Two defendants remain at large.
If convicted, the defendants each face a maximum sentence of 40 years in prison. Seven of the defendants have had their initial appearances and five have been detained pending trial. Two of the defendants have been released under the supervision of U.S. Pretrial Services. No court appearance has been scheduled yet on the indictment.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the ATF and Baltimore Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Clinton J. Fuchs and David Metcalf, who are prosecuting the case.
Dunn Man Sentenced for Possession of a Firearm by a FelonRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, United States District Judge Terrence W. Boyle sentenced CLARENCE JUNIOR YORK, 34, of Dunn, NC to 48 months of imprisonment followed by 3 years of supervised release.
YORK pled guilty on October 31, 2016 to being a Felon in Possession of a Firearm.
On April 21, 2016, the Dunn Police Department responded to a disturbance complaint. Upon arriving at the scene, officers found YORK lying on the ground partially in the roadway. The defendant appeared to be intoxicated when questioned by law enforcement. During questioning, officers saw the handle of a handgun protruding from YORK’s back pocket. The loaded firearm was recovered on the scene.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
The criminal investigation of this case was conducted by the Dunn Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the North Carolina State Crime Lab. Assistant United States Attorney S. Katherine Burnette is handling the case on behalf of the government.
District Man Pleads Guilty to Sexually Abusing 17-Year-Old Victim and Committing Two Separate RobberiesRead the Press Release
WASHINGTON – Dominick Simons, 26, of Washington, D.C., pled guilty today to charges of first-degree sexual abuse, robbery, and attempted robbery, for three separate crimes against victims he accosted at or near Metro stations within a two-day span, announced U.S. Attorney Channing D. Phillips, Ron Pavlik, Chief of the Metro Transit Police, and Peter Newsham, Acting Chief of the Metropolitan Police Department (MPD).
Simons pled guilty in the Superior Court of the District of Columbia before the Honorable Judith Bartnoff. The plea, which is contingent upon the Court’s approval, calls for a sentence within the range of 22 to 30 years in prison. In addition to prison, Simons will be required to register as a sex offender for the remainder of his life. Judge Bartnoff set a hearing for May 12, 2017, to determine whether the plea will be accepted.
According to the government’s evidence, Simons approached a 26-year-old male victim on May 21, 2016, at approximately 4:40 p.m., while both were exiting the L’Enfant Metro station in Southwest Washington. As they approached the 400 block of 7th Street SW, Simons asked the victim whether he knew of anyone interested in buying a gun that the defendant currently had in his possession. The victim answered, “No.” Simons then told the victim that he needed money and did not want to have to shoot the victim. Simons took his right hand and placed it inside of his sweatshirt to suggest that he was reaching for a firearm. The victim said that he did not have any money. Simons then directed the victim to walk to the nearest ATM, which was at a CVS store on 4th Street SW. There, the victim withdrew $100 and gave it to the defendant. Simons also took the victim’s cell phone before separating from the victim.
Two days later, at approximately 3 p.m. on May 23, 2016, Simons approached a 17-year-old male victim while walking into the Bethesda Metro station in Montgomery County, Maryland. As they approached the mezzanine level of the station, Simons asked the victim if he could use the victim’s cellular telephone. The victim said, “Yes.” The victim then gave his phone to the defendant to use, at which point Simons immediately began to walk away.
The victim followed Simons and told him to return the phone. Simons turned towards the victim and told him he was keeping the phone, that he had a “.38,” and that if the victim made any “noise” about the phone, the defendant would “blow [his] [expletive] brains out over the Metro station.” Simons opened his sweatshirt and brandished an object that the victim perceived to be the butt of a handgun. Simons then returned the phone to the victim after learning that the victim was only 17 years old. Simons, however, ordered the minor to board a train traveling to the District. He and the victim exited the train at Friendship Heights and entered the Chevy Chase Pavilion in Northwest Washington. Simons then ordered the victim to enter a bathroom and stand against the wall of a stall, at which point the defendant sexually assaulted him.
After a few moments, the victim told Simons, “No, I have to go. Let me go.” The victim pushed Simons to get out of the stall, at which point the victim patted the area of his jacket where the victim had seen the butt of a handgun. The victim said, “No. I’m done. I have to go. Let me leave.” Simons directed the victim to keep his voice down, but the minor replied, “I’ll scream if you don’t let me go now.” Simons allowed the victim to exit the bathroom.
Simons eventually walked back to the Friendship Heights Metro station, where he boarded a train towards downtown Washington. He exited the train at the Van Ness station. At approximately 5:20 p.m., he approached a 14-year-old boy in the mezzanine level of the train station and told the victim, “I have a gun on me. I don’t want to have to use it. Do you have any money or jewelry on you?” then took his right hand and placed it inside of his sweatshirt to suggest that he was reaching for a firearm. The victim responded, “No.” then asked the victim if he was in possession of a cellular telephone and a fare card. The victim removed his phone and fare card from his pocket and handed it to the defendant. used the card to open the fare gates and left the victim behind. After the victim lost sight of , he went to the station kiosk and reported the incident to a manager.
Simons was ultimately arrested at approximately 7 p.m., at the Gallery Place Metro station, where he admitted that he had the child’s phone in his pocket.
In announcing the guilty plea, U.S. Attorney Phillips, Chief Pavlik, and Acting Chief Newsham commended the work performed by those who investigated the case from the Metro Transit Police Department’s Criminal Investigations Division and Metropolitan Police Department’s First District. They also acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Angelina Slagle and Victim Witness Advocate Veronica Vaughan. Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Danny Nguyen and L’Shaunteé Robertson, who investigated and prosecuted the matter.
District Man Pleads Guilty to Burglary and Robbery ChargesRead the Press Release
WASHINGTON – Robert Lewis, 21, of Washington, D.C., pled guilty today to burglary and robbery charges stemming from separate incidents in Northwest Washington, U.S. Attorney Channing D. Phillips announced.
Lewis pled guilty in the Superior Court of the District of Columbia to second-degree burglary, robbery, and contempt. The plea, which is contingent upon the Court’s approval, calls for an agreed-upon sentence of five years in prison. The Honorable Kimberley S. Knowles set a hearing for June 2, 2017 to determine whether the plea and sentence will be accepted.
The guilty plea comes less than a week after Lewis was found guilty by a jury in another case of second-degree burglary and second-degree theft, with a finding that the crimes were committed while Lewis was on pretrial release. He is to be sentenced in that case on June 2, 2017, by the Honorable Juliet McKenna. Under the Court’s voluntary sentencing guidelines, he could face an additional three to five years in prison on those charges.
In today’s guilty plea, Lewis admitted to carrying out a burglary during the daytime hours of Oct. 16, 2015 in the 700 block of Taylor Street NW. A laptop and several other items were stolen from that home. The laptop was found about six weeks later when law enforcement executed a search at Lewis’s apartment in Northeast Washington.
Lewis also admitted taking part in an armed robbery that took place at about 2:45 p.m. on June 24, 2016, in the 600 block of Buchanan Street NW. A co-defendant, Donathan Taylor, 19, pled guilty on March 3, 2017, to an armed robbery charge in the robbery, and is to be sentenced on May 19, 2017. Finally, Lewis pled guilty to a contempt charge for leaving a halfway house, where he was being held while awaiting trial, without authorization on June 22, 2016.
The verdict in the case last week followed a trial in the Superior Court of the District of Columbia on charges stemming from a burglary on April 9, 2015 at a home in the unit block of Gallatin Street NW, in which a laptop was taken. At the time of the burglary, Lewis was on pretrial release in another case. Fingerprint evidence linked him to the crime.
In announcing the plea and verdict, U.S. Attorney Phillips commended the work of those who investigated the cases from the Metropolitan Police Department (MPD). He also expressed appreciation for the assistance provided by the Latent Fingerprint Unit of the Forensic Science Laboratory of the District of Columbia Department of Forensic Sciences. Finally, he acknowledged the efforts of those who worked on the cases from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Michael J. Romano, Alysa Kociuruba, and Kamil E. Shields, who prosecuted the matters leading to today’s guilty pleas, and Assistant U.S. Attorneys Kociuruba and C.B. Buente, who prosecuted the matter that led to the verdict last week.
Defendant Sentenced to 2 Years for Being a Felon in PossessionRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces today that William David Hardin, Jr., 48, was sentenced today to twenty-four months of imprisonment by Senior U.S. District Judge Callie V. S. Granade for being a felon in possession of a firearm. The judge ordered that Hardin undergo three years of supervised release upon completing his term of imprisonment, receive treatment for mental health and substance abuse, and pay a $100 mandatory special assessment.
On August 24, 2016, Demopolis Police Department investigators arranged for the purchase of stolen property and marijuana from Hardin. During the transaction, Hardin offered to sell a stolen .22-caliber revolver. On September 6, 2016, investigators arranged for the purchase of a Rough Rider .22-caliber revolver from Hardin. Investigators later executed a state search warrant at Hardin’s home and found inside a box of Winchester .22-caliber ammunition and a loaded .223-caliber magazine. Moreover, on September 6 investigators visited the apartment of B.W. after receiving information that he was holding a Ruger 9mm pistol to sell for Hardin. When confronted by investigators, B.W. surrendered the pistol and said that Hardin gave it to B.W. to sell on Hardin’s behalf.
Hardin is a convicted felon who is prohibited by federal law from knowingly possessing a firearm. On October 30, 1995, Hardin was convicted of forgery in the second degree in the Circuit Court of Marengo County, Alabama.
In September 2016, a federal grand jury for the Southern District of Alabama indicted Hardin on two counts of being a felon in possession in violation of 18 U.S.C. § 922(g)(1). On November 21, 2016, Hardin pleaded guilty to count two of the indictment.
The case was investigated by the Demopolis Police Department. The case was prosecuted by Assistant United States Attorney Gregory Bordenkircher.
Customs Officer Sentenced to 37 Months in Prison for Stealing Checks and Money Orders from International Mail Facility in TorranceRead the Press Release
LOS ANGELES – A longtime U.S. Customs and Border Protection (CBP) officer was sentenced on Monday to over three years in federal prison for stealing checks and money orders from international mail and depositing those items into bank accounts.
Carlos Canjura, 54, of Van Nuys, was sentenced on Monday to 37 months in prison by United States District Judge Beverly Reid O'Connell. In addition to the prison term, Judge O’Connell ordered Canjura to pay $20,145 in restitution.
A federal jury in November found Canjura guilty of conspiracy to commit bank fraud, four counts of bank fraud and four counts of possession of stolen mail.
Canjura was a CBP Officer assigned to the International Mail Facility in Torrance, where his duties included inspecting mail and parcels arriving from other countries for narcotics, counterfeit goods, and possible fraudulent checks and negotiable instruments. The evidence presented during the three-day trial showed that Canjura used his position to steal personal checks, traveler's checks and money orders from international mail.
Over the course of a year, Canjura stole more than 108 checks and money orders with a cumulative value of $249,212. He worked with co-conspirators to deposit those stolen checks and money orders, often fraudulently altering the checks before depositing them through ATMs or mobile phone applications.
“This sentence sends a strong message to those in positions of public trust that corruption will not be tolerated,” said United States Attorney Eileen M. Decker. “This defendant abused his position as a federal officer to personally enrich himself and undermined the public’s confidence in government services, including the United States Postal Service.”
“Mr. Canjura’s actions earned him a significant jail sentence for using his position to steal from Postal Service customers,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI and our partners will continue to pursue evidence of corruption and hold public officials accountable for their crimes.”
Mr. Canjura has been indefinitely suspended without pay from CBP.
The investigation of this case was conducted by the Federal Bureau of Investigation, which received assistance from U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility, CBP’s Office of Professional Responsibility, and the United States Postal Service’s Office of Inspector General.
The case was prosecuted by Assistant United States Attorney Bryant Yang of the General Crimes Section and Assistant United States Attorney Ashwin Janakiram of the Major Frauds Section.
Court Orders Return Preparation Business Owner to Pay Nearly $950,000 to the United States for Preparing Fraudulent ReturnsRead the Press Release
A federal court in Orlando, Florida, has permanently barred Jason Stinson, of Longwood, Florida, from preparing federal tax returns for others and from owning or operating a tax return preparation business, following a six-day bench trial held in 2016, the Justice Department announced today. The civil order, signed by Judge Anne C. Conway of the U.S. District Court for the Middle District of Florida, also requires Stinson to disgorge to the United States $949,952.47 of funds he received from “improper and fraudulent tax return preparation.”
The court determined that Stinson owns a company called “Nation Tax Services” and had stores in four states: Birmingham and Fairfield, Alabama; St. Petersburg and Tampa, Florida; Albany and Augusta, Georgia; and Greenville and Raleigh, North Carolina. Stinson’s stores, the court found, targeted “underprivileged, undereducated poor people and earned income credit claims.”
The Earned Income Tax Credit (EITC) is a refundable tax credit for working people with low to moderate income. Eligibility depends on factors such as the amount of income, filing status, and the amount of dependents. To illustrate, the court noted that customers with earned income between $13,050 and $17,100 in tax year 2012 could receive the maximum EITC. The court found that Stinson falsified information on his customers’ returns to claim the maximum EITC amount by: “claiming bogus dependents, fabricating unreimbursed employee expenses and charitable contributions, and fabricating business income and expenses.” The court found that in many instances Stinson and his preparers fraudulently lowered a customer’s taxable income by claiming false unreimbursed business expenses in large amounts, at times more than half of what the customer earned in a given year. According to the court’s decision, “it is illogical for an individual making $35,000 a year to spend as much as half of their yearly income, around $16,000, on unreimbursed business expenses.”
Stinson’s stores charged customers in excess of $600 to prepare a single tax return, even as much as $999, sometimes without telling the customer, the court determined. Moreover, the court found that Stinson’s practice was to take his fees out of his customer’s refund, rather than charge fees upfront, meaning that “a larger refund was better for the client and better for Stinson.” Based upon the pattern of abusive claims made by Stinson and his preparers, the court ordered Stinson to pay the United States nearly $950,000 in fees he received.
“The Tax Division works with the Internal Revenue Service (IRS) to protect taxpayers from unscrupulous return preparers,” said Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. “Court decisions like this show that those who prepare false tax returns will be stopped and will not profit from their fraudulent conduct.”
Acting Assistant Attorney General Hubbert thanks the Tax Division attorneys assigned to the case, Daniel Applegate, Sean Green, Alison Yewdell, Steven Woodliff, Jared Wiesner, and Joshua Levine, and the revenue agents of the IRS—Small Business/Self-Employed Division, who conducted the investigation.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Convicted Felon Charged with Possession of A FirearmRead the Press Release
PHILADELPHIA – Kevin Harris, 32, of Philadelphia, was charged today by indictment[1] with possession of a firearm by a convicted felon, announced Acting United States Attorney Louis D. Lappen. According to the indictment, on January 7, 2017, Harris was in possession of a 9mm semiautomatic pistol, loaded with 15 live rounds of hollow-point ammunition.
If convicted, Harris faces a minimum term of ten years in prison, up to three years of supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Philadelphia Police Department with the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Katherine E. Driscoll.
[1]An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Canadian Man Sentenced for Visa FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Liban Mumin Afrah, 42, of Ontario, Canada, who was convicted of possessing a visa secured by fraud, was sentenced to time served and a fine of $2,000 by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Stephanie Lamarque, who handled the case, stated that in 1996, the defendant, a Canadian citizen originally from Somalia, entered the United States from Canada and applied for asylum under the alias Ali Hussein Ali. Afrah claimed that he feared he would be harmed if he returned to Somalia because he is a member of the minority Reer Hamar tribe. At the time of the fraudulent asylum application, the defendant had already been granted asylum by Canada under his real identity and was residing in Canada. Afrah was granted a green card by the United States under the false identity Ali H. Ali and traveled between the United States and Canada using both his Canadian passport under his real identity and his fraudulently obtained United States green card. The defendant most recently renewed his green card under his fake name in June 2015.
The sentencing is the result of an investigation United States Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
Cambridge Man Sentenced to 96 Months for Child Pornography OffensesRead the Press Release
ALBANY, NEW YORK – Michael Telford, age 47, of Cambridge, New York, was sentenced today to 96 months in prison for distributing, receiving and possessing child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
The sentence was issued by U.S. District Judge Mae A. D’Agostino, and followed Telford’s guilty plea, on October 24, 2016, to a 3-count indictment charging him with distributing, receiving, and possessing child pornography.
Judge D’Agostino also imposed a 20-year term of supervised release to start after Telford is released from prison. She reserved judgment on any order of restitution, noting that 6 child pornography victims – whose images Telford possessed -- had submitted requests for restitution. As a result of his conviction, Telford will be required to register as a sex offender after leaving prison.
As part of his guilty plea, Telford admitted that on December 27, 2013, he used an online chat program to exchange videos including child pornography with a person in the United Kingdom; that between April 24, 2015 and June 4, 2015, he received video files containing child pornography using an online chat program; and that he saved child pornography on two digital devices. In sentencing Telford, Judge D’Agostino told him that his offenses made him a member of a group of people who ensure that “these children will have images of the worst times in their lives posted on the Internet,” and that these children will continue to suffer from the “endless crime” of the distribution and redistribution of those images.
This case was investigated by HSI and the New York State Police, and was prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Buffalo Man Sentenced on Sex Trafficking ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Anthony Thompson, a/k/a Fresh Tone, 36, of Buffalo, NY, who was convicted of sex trafficking of a minor, was sentenced to 188 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay $399,000 in restitution to the victims in this case.
Assistant U.S. Attorneys Marie Grisanti and Trini E. Ross, who handled the case, stated that Thompson engaged in the sex trafficking of two adults and one minor, between November 2012 and September 2014. The defendant recruited and enticed the three victims to engage in commercial sex acts at his direction. One of the victims was recruited through social media. Thompson then advertised the availability of the victims on social media including “Backpage.com.” The defendant also required that some victims “walk the streets” in order to attract customers for commercial sex. As a result, Thompson received all the money earned from the commercial sex acts by the victims.Thompson pleaded guilty in April 2016 just as a federal jury was to begin hearing evidence involving the charges against him. Some of that evidence included profane and degrading rap lyrics that the defendant wrote regarding women and prostitution as well as social media postings by Thompson which glorified the sexual exploitation of women. In one posting comparing the sale of women to the sale of narcotics, the defendant stated: “U can sell it n still have it after you sell it. It goes nowhere….u don’t have to re up, or u not riskin years n jail.” Acting United States Attorney Kennedy noted that 188 months in prison equals 15 and one-half years in jail.
The sentencing is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Kevin Kelly; the Cheektowaga Police Department, under the direction of Chief David Zack; the Erie County Sheriff’s Department, under the direction of Timothy Howard; and the Western New York Human Trafficking Task Force.
Attorney General Sessions Directs Federal Prosecutors to Target Most Significant Violent OffendersRead the Press Release
Attorney General Jeff Sessions today directed federal prosecutors nationwide to engage in a focused effort to investigate, prosecute and deter the most violent offenders.
This builds on the announcement last week of the creation of the U.S. Department of Justice Task Force on Crime Reduction and Public Safety, which is central to the Attorney General’s commitment to combatting illegal immigration and violent crime, such as drug trafficking, gang violence and gun crimes, and to restoring public safety to all of the nation’s communities.
“Turning back our nation’s recent rise in violent crime is a top priority for the Department of Justice, and it requires decisive action from our federal prosecutors,” said Attorney General Sessions. “I’m urging each of them to continue working closely with their counterparts at all levels, and to use every tool we have to put violent offenders behind bars and keep our citizens safe.”
In a memo to federal prosecutors in the department’s 94 United States Attorney’s Offices, the Attorney General made clear that prosecuting violent criminals is a high priority and prosecutors should work closely with their federal, state, local and tribal law enforcement partners to target the most violent offenders in each district. Working together, law enforcement at every level should determine which venue – federal or state – would best get those identified immediately off our streets and punished appropriately for their crimes.
The memo states when federal prosecution is determined appropriate, federal prosecutors should ensure the individuals driving violent crime in their district are prosecuted using the tools at their disposal, which may include firearms offenses, including possession and straw purchasing offenses; possession of a firearm during and in relation to a violent crime or drug trafficking offense; Hobbs Act robbery; carjacking; violent crime in aid of racketeering; Racketeering Influenced and Corrupt Organizations Act; and drug offenses under the Controlled Substances Act, among others.
The Attorney General recognized that many offices are already employing these strategies and asked that those offices ensure their efforts are achieving the desired results.
Additional guidance and support in executing this priority will be forthcoming.
Memo on Commitment to Targeting Violent CrimeAirline Staffing Executive Charged with Immigration Fraud for Staff ApplicationsRead the Press Release
Assistant U.S. Attorney Nicholas W. Pilchak (619) 546-9709
NEWS RELEASE SUMMARY – March 8, 2017
SAN DIEGO – Eleno Quinteros, Jr., the former Vice President of Operations for two airline mechanic staffing companies, was arraigned today on a federal indictment charging him with making false statements in support of legal permanent resident petitions for 20 of the companies’ mechanics.
The indictment alleges that Quinteros denied taking any payments from the mechanics, when in fact Quinteros had demanded and collected hundreds of thousands of dollars in fees from the employees in connection with their legal permanent resident applications. This practice is illegal.
According to the indictment, Quinteros regularly demanded and collected thousands of dollars in fees from employees, even though employers are prohibited by law from demanding payment for their fees—including attorneys’ fees—in connection with the charged applications. A portion of the fees collected by Quinteros were paid to attorneys assisting with the applications. The rest were pocketed by Quinteros and his wife, the indictment alleges.
Quinteros was vice president of two different staffing companies, and part owner of one of them. The companies’ staff performed heavy maintenance on aircraft at a variety of locations nationwide. Quinteros was responsible for recruiting Mexican airline mechanics to work in the United States for the companies, and for helping recruits to obtain work visas such as TN or H-2B visas.
According to the indictment, after Quinteros assisted recruits in obtaining work visas to come to the United States, he then arranged to help many of them pursue legal permanent residency—for at least several thousand dollars apiece. Quinteros directed many employees to pay the money to his wife’s bank account in order to conceal its source. The indictment alleges that Quinteros has directed dozens of recruits wishing to become permanent residents to deposit or transfer hundreds of thousands of dollars to him and his wife in order to secure his assistance with the process.
Quinteros is charged in the indictment with twenty counts of making a false claim in support of an immigration application, in violation of Title 18, United States Code, Section 1546(a), and twenty counts of making a false statement to a federal agency, in violation of Title 18, United States Code, Section 1001.
“Lying to get a green card is a serious offense, particularly when the lie is an employer’s false statement that he has not extracted prohibited fees from his employees,” said Acting U.S. Attorney Alana W. Robinson. “This Office is committed to combatting immigration fraud and preventing those in a position to exploit lawful immigrants from doing so.”
“As the lead agency in this four-and-a-half year investigation, the Diplomatic Security Service demonstrated its commitment to maintaining the integrity of U.S. travel documents. We will pursue those who fraudulently use temporary work visas, like the H2B, to manipulate and exploit foreign workers for personal gain,” said Michael Bishop, special agent in charge of the DSS Los Angeles Field Office. “Diplomatic Security Service’s strong relationship with our law enforcement partners as part of the Document Benefit Fraud Task Force continues to be essential in the pursuit of justice.”
“Our message is simple -- America’s legal immigration system is not for sale,” said Joseph Macias, special agent in charge for Homeland Security Investigations (HSI) Los Angeles. “In addition to posing significant security and safety vulnerabilities, visa fraud undermines the integrity of our legal immigration process and penalizes those who abide by the law. HSI will work closely with its law enforcement partners to ensure that those who would exploit our nation’s immigration system for their own enrichment are brought to justice.”
The charges and allegations contained in an indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
DEFENDANT Case No. 17-cr-557-MMA
Eleno “Max” Quinteros, Jr. 45 years old Chula Vista, California
CHARGES
False Statement on an Immigration Document - 18 U.S.C. § 1546(a)
Maximum penalty: 10 years’ imprisonment and $250,000 fine
False Statement – 18 U.S.C. § 1001
Maximum penalty: 5 years’ imprisonment and $250,000 fine
AGENCIES
Department of State, Diplomatic Security Service
Internal Revenue Service, Criminal Investigations
16 Charged after FBI Task Force and Hartford Police Department Investigation into Hartford Street GangRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the Federal Bureau of Investigation, and Hartford Police Chief James C. Rovella, today announced the unsealing of a 31-count indictment charging 16 individuals with federal narcotics offenses related to the distribution of heroin and crack cocaine in Hartford. The indictment also charges four of the defendants with firearm and robbery offenses.
The indictment, which was returned by a grand jury in Hartford on February 23, 2017, and unsealed yesterday, stems from “Operation Stamp Out,” a joint law enforcement investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking in Hartford’s Parkville neighborhood, and related overdoses.
According to allegations made in court, the investigation specifically targeted criminal activity being committed by members and associates of the Orange Street Killas (OSK). OSK is a geographically-based street gang operating principally in the area of Orange, Cherry and Arbor Streets. The investigation followed a series of reports of shots fired in the area, and a homicide that was committed on Cherry Street in October 2015. The prosecution was built on court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, all of which revealed that Ruben Torres and certain OSK members acquired heroin and crack cocaine from other OSK members and then sold the narcotics on the streets of Hartford.
During the investigation, on October 8, 2016, at approximately 10:12 p.m., Hartford’s ShotSpotter system detected multiple shots fired in the area of 7-9 Cherry Street. Hartford Police responded and located a male victim in the backyard of 51 Orange Street. The victim, who was suffering from three gunshot wounds to his legs, was transported to the hospital and survived the shooting. The indictment charges four defendants with firearm and robbery offenses related to this shooting.
“Gang-related drug trafficking continues to plague our inner cities,” said U.S. Attorney Daly. “A relatively small number of offenders are responsible for the vast amount of the gun violence that traumatizes our neighborhoods. These same offenders peddle the heroin that has caused the tragic spike in heroin overdose deaths in cities and towns throughout Connecticut. The U.S. Attorney’s Office and our federal law enforcement partners have a long-standing commitment to assist the Hartford Police in reducing violent crime and drug trafficking in our capital city. We thank the FBI and the HPD for their tremendous work supporting this prosecution.”
“It’s the continued dedication and commitment of agents and officers in this case that has led to the disruption of street gang activity in this Hartford neighborhood,” said FBI Special Agent in Charge Ferrick. “This joint effort in this case, and many others, will lead to a safer community.”
Charged in the indictment are:
RUBEN TORRES, a.k.a. “Rube,” “Ru,” and “T,” 25, of Hartford
ANTWANE WILLIAMS-BEY, a.k.a. “Buck,” 26, of East Windsor
MICHAEL CHAPMAN, a.k.a. “Nice” and “Mizzo,” 25, of New Britain
CHARLES TURNER, a.k.a. “Rell” and “CJ,” 26, of Hartford
TAYRENCE WILLIS, a.k.a. “T” and “T-Franklin,” 24, of Hartford
TYRRYQ RODRIGUEZ, a.k.a. “Ty,” “Little Ty” and “Tye Bangs,” 19, of Hartford
ERIC SMITH, a.k.a. “Hood,” 29, of Hartford
ADRIAN CRUZ, a.k.a. “Ray,” 28, of Hartford
BRENDAN SALMON, a.k.a. “One Eye,” 23, of Hartford
NOEL MONTANEZ, 18, of Hartford
JHOVANY VALDES, 40, of East Windsor
WILLIE DEAS, a.k.a. “Debo” and “Flee,” 21, of Hartford
MARCUS GARY, 33, of South Windsor
YOLANDA LOZADA, a.k.a. “Sexy,” 38, of East Hartford
JAMAL JOHNSON, 29, of Hartford
BUELL FRENCH, 36, of HartfordOn February 10, 2017, investigators arrested TORRES, WILLIAMS-BEY, CHAPMAN, WILLIS, RODRIGUEZ, SMITH, SALMON, MONTANEZ and VALDES. On that date, a search of TORRES’ Hartford apartment lead to the seizure of approximately 260 bags of heroin, ammunition, a gun cleaning kit and a holster. Searches of WILLIAMS-BEY’s East Windsor residence and a relative’s Hartford residence revealed approximately 900 bags of heroin and crack cocaine. Agents seized more than 300 grams of heroin and three firearms, one of which was stolen, at VALDES' East Windsor residence, and a firearm and crack cocaine at CHAPMAN’s residence.
TURNER was arrested on February 21, and SALMON and LOZADA were arrested on March 1.
CRUZ has been in custody since July 31, 2016, and DEAS has been in custody since October 28, 2016. Both were originally arrested on state charges.
GARY and JOHNSON have not been arrested are being sought.
The indictment charges each of the defendants with conspiracy to distribute, and to possess with intent to distribute, heroin and cocaine base (“crack”). If convicted of this charge, based on the type and quantity of narcotics charged, TORRES, WILLIAMS-BEY, CHAPMAN, and TURNER face a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life; VALDES, SMITH, CRUZ, MONTANEZ, LOZADA and GARY face a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years, and WILLIS, RODRIGUEZ, SALMON, DEAS, JOHNSON and FRENCH face a maximum term of imprisonment of 20 years.
TORRES, WILLIAMS-BEY, CHAPMAN, TURNER, SMITH, CRUZ, SALMON, VALDES, DEAS and JOHNSON also are charged with one or more counts of possession with intent to distribute, and distribution of, various quantities of heroin and/or crack cocaine.
TORRES, DEAS, WILLIS and RODRIGUEZ are charged with interference with commerce by robbery, and conspiracy to interfere with commerce by robbery; TORRES is charged with use of a firearm in relation to a drug trafficking crime; and TORRES, DEAS and RODRIGUEZ are charged with conspiracy to possess a firearm in furtherance of a crime of violence and a drug trafficking crime. These charges relate to the October 8, 2016 shooting in the vicinity of 7-9 Cherry Street. DEAS also is charged with an additional count of interference with commerce by robbery, which relates to an attempted robbery that occurred on October 26, 2016.
Finally, the indictment charges CHAPMAN and VALDES each with one count of being felon in possession of a firearm and ammunition, and VALDES with one count of possession of a firearm in furtherance of a drug trafficking crime.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and Shooting Task Force have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Tuesday 7 March 2017
ZTE Corporation Agrees to Plead Guilty and Pay over $430.4 Million for Violating U.S. Sanctions by Sending U.S.-Origin Items to IranRead the Press Release
ZTE Corporation has agreed to enter a guilty plea and to pay a $430,488,798 penalty to the U.S. for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by illegally shipping U.S.-origin items to Iran, obstructing justice and making a material false statement. ZTE simultaneously reached settlement agreements with the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) and the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC). In total ZTE has agreed to pay the U.S. Government $892,360,064. The BIS has suspended an additional $300,000,000, which ZTE will pay if it violates its settlement agreement with the BIS.
Attorney General of the United States Jeff Sessions, Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney John R. Parker for the Northern District of Texas and FBI Assistant Director Bill Priestap for the Counterintelligence Division made the announcement today.
“ZTE Corporation not only violated export controls that keep sensitive American technology out of the hands of hostile regimes like Iran’s – they lied to federal investigators and even deceived their own counsel and internal investigators about their illegal acts,” said Attorney General Sessions. “This plea agreement holds them accountable, and makes clear that our government will use every tool we have to punish companies who would violate our laws, obstruct justice and jeopardize our national security. I am grateful to the Justice Department’s National Security Division, the U.S. Attorney’s Office for the Northern District of Texas and the FBI for their outstanding work on this investigation.”
“ZTE engaged in an elaborate scheme to acquire U.S.-origin items, send the items to Iran and mask its involvement in those exports. The plea agreement, which is pending before the Court, alleges that the highest levels of management within the company approved the scheme. ZTE then repeatedly lied to and misled federal investigators, its own attorneys and internal investigators. Its actions were egregious and warranted a significant penalty,” said Acting Assistant Attorney General McCord. “The enforcement of U.S. export control and sanctions laws is a major component of the National Security Division’s commitment to protecting the national security of the United States. Companies that violate these laws – including foreign companies – will be investigated and held to answer for their actions.”
“ZTE Corporation not only violated our export control laws but, once caught, shockingly resumed illegal shipments to Iran during the course of our investigation,” said U.S. Attorney Parker. “ZTE Corporation then went to great lengths to devise elaborate, corporate-wide schemes to hide its illegal conduct, including lying to its own lawyers.”
"The plea agreement in this case shows ZTE repeatedly violated export controls and illegally shipped U.S. technology to Iran," said Assistant Director Priestap. "The company also took extensive measures to hide what it was doing from U.S. authorities. This case is an excellent example of cooperation among multiple U.S. agencies to uncover illegal technology transfers and make those responsible pay for their actions."
The plea agreement, which is contingent on the court’s approval, also requires ZTE to submit to a three-year period of corporate probation, during which time an independent corporate compliance monitor will review and report on ZTE’s export compliance program. ZTE is also required to cooperate fully with the Department of Justice (DOJ) regarding any criminal investigation by U.S. law enforcement authorities. The plea agreement ends a five-year joint investigation into ZTE’s export practices, which was handled by the DOJ’s National Security Division, the U.S. Attorney’s Office for the Northern District of Texas, the FBI, the BIS and the Department of Homeland Security, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
A criminal information was filed today in federal court in the Northern District of Texas charging ZTE with one count of knowingly and willfully conspiring to violate the IEEPA, one count of obstruction of justice and one count of making a material false statement. ZTE waived the requirement of being charged by way of federal indictment, agreed to the filing of the information and has accepted responsibility for its criminal conduct by entering into a plea agreement with the government. The plea agreement, which is contingent on the court’s approval, requires that ZTE pay a fine in the amount of $286,992,532 and a criminal forfeiture in the amount of $143,496,266. The criminal fine represents the largest criminal fine in connection with an IEEPA prosecution.
Summary of the Criminal Conduct
According to documents filed today, for a period of almost six years, ZTE obtained U.S.-origin items – including controlled dual-use goods on the Department of Commerce’s Commerce Control List (CCL) – incorporated some of those items into ZTE equipment and shipped the ZTE equipment and U.S.-origin items to customers in Iran. ZTE engaged in this conduct knowing that such shipments to Iran were illegal. ZTE further lied to federal investigators during the course of the investigation when it insisted, through outside and in-house counsel, that the company had stopped sending U.S.-origin items to Iran. In fact, while the investigation was ongoing, ZTE resumed its business with Iran and shipped millions of dollars’ worth of U.S. items there.
ZTE also created an elaborate scheme to hide the data related to these transactions from a forensic accounting firm hired by defense counsel to conduct a review of ZTE’s transactions with sanctioned countries. It did so knowing that the information provided to the forensic accounting firm would be reported to the U.S. government by outside counsel. Outside counsel was not aware of this scheme and indeed was wholly unaware that ZTE had resumed business with Iran. After ZTE informed its counsel of the scheme, counsel reported – with permission from ZTE – the conduct to the U.S. government.
The Iran Business
According to court documents, between January 2010 and January 2016, ZTE, either directly or indirectly through a third company, shipped approximately $32,000,000 of U.S.-origin items to Iran without obtaining the proper export licenses from the U.S. government. In early 2010, ZTE began bidding on two different Iranian projects. The projects involved installing cellular and landline network infrastructure. Each contract was worth hundreds of millions of U.S. Dollars and required U.S. components for the final products.
In December 2010, ZTE finalized the contracts with Iranian customers. The contracts were signed by four parties: the Iranian customer, ZTE, Beijing 8 Star and ZTE Parsian. Court documents explain that ZTE identified Beijing 8 Star (8S) as a possible vehicle for hiding its illegal shipments of U.S. items to Iran. It intended to use 8S to export U.S.-origin items from China to ZTE customers in Iran. As part of this plan, ZTE supplied 8S with necessary capital and took over control of the company.
Under the terms of the Iran contracts, ZTE agreed to supply the “self-developed equipment,” collect payments for the projects and manage the whole network. ZTE Parsian was to provide locally purchased materials and all services. 8S was responsible for “relevant third-party equipment,” which primarily meant parts that would be subject to U.S. export laws. ZTE intended for 8S to be an “isolation company,” that is, ZTE intended for 8S (rather than ZTE) to purchase the embargoed equipment from suppliers and provide that equipment under the contract in an effort to distance ZTE from U.S. export-controlled products and insulate ZTE from U.S. export violations. However, 8S had no purchasing or shipping history and no real business reputation.
Ultimately, although 8S was a party to the contracts, ZTE itself purchased and shipped the embargoed goods under the contract. In its shipping containers, it packaged the U.S. items with its own self-manufactured items to hide the U.S.-origin goods. ZTE did not include the U.S. items on the customs declaration forms, though it did include the U.S.-origin items on the packing lists included inside of the shipments.
In early 2011, when ZTE determined that the use of 8S was insufficient to hide ZTE’s connection to the illegal export of U.S.-origin goods to Iran, senior management of ZTE ordered that a company-level export control project team study, handle and respond to the company’s export control risks. In September 2011, four senior managers signed an Executive Memo, which proposed that the company identify and establish new “isolation companies” that would be responsible for supplying U.S. component parts necessary for projects in embargoed countries. The isolation companies would conceal ZTE’s role in the transshipment scheme and would insulate ZTE from export control risks.
In March 2012, Reuters published an article regarding ZTE’s sale of equipment to Iran. In response, ZTE made a decision to temporarily cease sending new U.S. equipment to Iran. By November 2013, however, ZTE had resumed its business with Iran. Beginning in July 2014, ZTE began shipping U.S.-origin equipment to Iran once again without the necessary licenses.
Instead of using 8S, however, ZTE identified a new isolation company. ZTE signed a contract with the new isolation company, which in turn signed contracts with the two Iranian customers. According to the new scheme, ZTE purchased and manufactured all relevant equipment – both U.S.-origin and ZTE-manufactured – and prepared them for pick-up at its warehouse by the new isolation company. The new isolation company then shipped all items to the Iranian customers. Shipments to Iran continued from January 2014 through January 2016.
The Obstruction and False Statement
According to court documents, despite its knowledge of an ongoing grand jury investigation into its Iran exports, ZTE took several steps to conceal relevant information from the U.S. government. It further took affirmative steps to mislead the U.S. government. In the summer of 2012, ZTE asked each of the employees who were involved in the Iran sales to sign nondisclosure agreements in which the employees agreed to keep confidential all information related to the company’s U.S. exports to Iran.
During meetings throughout late 2014, late 2015 and early 2016, outside counsel for ZTE, unaware that the statements ZTE had given to counsel for communication to the government were false, represented to the DOJ and federal law enforcement agents that ZTE had stopped doing business with Iran and therefore was no longer violating U.S. export laws. Similarly, on July 8, 2015, in-house counsel for ZTE accompanied outside counsel in a meeting with the DOJ and federal law enforcement agents and reported that ZTE was abiding by U.S. laws. That statement was also false.
ZTE also hid data related to its resumed illegal sales to Iran from a forensic accounting firm hired by defense counsel to conduct an internal investigation into the company’s Iran sales. ZTE knew the forensic accounting firm was reviewing its systems and knew that the analysis was being reported to the DOJ and U.S. law enforcement. To avoid detection of its 2013-2016 resumed illegal sales to Iran, ZTE formed the “contract data induction team” (“CDIT”). The CDIT was comprised of approximately 13 people whose job it was to “sanitize the databases” of all information related to the 2013-2016 Iran business. The team identified and removed from the databases all data related to those sales. ZTE also established an auto-delete function for the email accounts of those 13 individuals on the CDIT, so their emails were deleted every night – a departure from its normal practices – to ensure there were no communications related to the hiding of the data.
The case is being prosecuted by Deputy Chief Elizabeth Cannon of the National Security Division’s Counterintelligence and Export Control Sections and Assistant U.S. Attorney Mark Penley of the Northern District of Texas.
ZTE Information ZTE Plea Agreement Supplement ZTE Plea Agreement ZTE Factual ResumeZTE Corporation Agrees to Plead Guilty and Pay over $430.4 Million for Violating U.S. Sanctions by Sending U.S.-Origin Items to IranRead the Press Release
WASHINGTON – ZTE Corporation has agreed to enter a guilty plea and to pay a $430,488,798 penalty to the U.S. for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by illegally shipping U.S.-origin items to Iran, obstructing justice and making a material false statement. ZTE simultaneously reached settlement agreements with the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) and the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC). In total ZTE has agreed to pay the U.S. Government $892,360,064. The BIS has suspended an additional $300,000,000, which ZTE will pay if it violates its settlement agreement with the BIS.
Attorney General of the United States Jeff Sessions, Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney John R. Parker for the Northern District of Texas and FBI Assistant Director Bill Priestap for the Counterintelligence Division made the announcement today.
“ZTE Corporation not only violated export controls that keep sensitive American technology out of the hands of hostile regimes like Iran’s – they lied to federal investigators and even deceived their own counsel and internal investigators about their illegal acts,” said Attorney General Sessions. “This plea agreement holds them accountable, and makes clear that our government will use every tool we have to punish companies who would violate our laws, obstruct justice and jeopardize our national security. I am grateful to the Justice Department’s National Security Division, the U.S. Attorney’s Office for the Northern District of Texas and the FBI for their outstanding work on this investigation.”
“ZTE engaged in an elaborate scheme to acquire U.S.-origin items, send the items to Iran and mask its involvement in those exports. The plea agreement alleges that the highest levels of management within the company approved the scheme. ZTE then repeatedly lied to and misled federal investigators, its own attorneys and internal investigators. Its actions were egregious and warranted a significant penalty,” said Acting Assistant Attorney General McCord. “The enforcement of U.S. export control and sanctions laws is a major component of the National Security Division’s commitment to protecting the national security of the United States. Companies that violate these laws – including foreign companies – will be investigated and held to answer for their actions.”
“ZTE Corporation not only violated our export control laws but, once caught, shockingly resumed illegal shipments to Iran during the course of our investigation,” said U.S. Attorney Parker. “ZTE Corporation then went to great lengths to devise elaborate, corporate-wide schemes to hide its illegal conduct, including lying to its own lawyers.”
"The plea agreement in this case shows ZTE repeatedly violated export controls and illegally shipped U.S. technology to Iran," said Assistant Director Priestap. "The company also took extensive measures to hide what it was doing from U.S. authorities. This case is an excellent example of cooperation among multiple U.S. agencies to uncover illegal technology transfers and make those responsible pay for their actions."
The plea agreement, which is contingent on the court’s approval, also requires ZTE to submit to a three-year period of corporate probation, during which time an independent corporate compliance monitor will review and report on ZTE’s export compliance program. ZTE is also required to cooperate fully with the Department of Justice (DOJ) regarding any criminal investigation by U.S. law enforcement authorities. The plea agreement ends a five-year joint investigation into ZTE’s export practices, which was handled by the DOJ’s National Security Division, the U.S. Attorney’s Office for the Northern District of Texas, the FBI, the BIS and the Department of Homeland Security, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
A criminal information was filed today in federal court in the Northern District of Texas charging ZTE with one count of knowingly and willfully conspiring to violate the IEEPA, one count of obstruction of justice and one count of making a material false statement. ZTE waived the requirement of being charged by way of federal indictment, agreed to the filing of the information and has accepted responsibility for its criminal conduct by entering into a plea agreement with the government. The plea agreement, which is contingent on the court’s approval, requires that ZTE pay a fine in the amount of $286,992,532 and a criminal forfeiture in the amount of $143,496,266. The criminal fine represents the largest criminal fine in connection with an IEEPA prosecution.
Summary of the Criminal Conduct
According to documents filed today, for a period of almost six years, ZTE obtained U.S.-origin items – including controlled dual-use goods on the Department of Commerce’s Commerce Control List (CCL) – incorporated some of those items into ZTE equipment and shipped the ZTE equipment and U.S.-origin items to customers in Iran. ZTE engaged in this conduct knowing that such shipments to Iran were illegal. ZTE further lied to federal investigators during the course of the investigation when it insisted, through outside and in-house counsel, that the company had stopped sending U.S.-origin items to Iran. In fact, while the investigation was ongoing, ZTE resumed its business with Iran and shipped millions of dollars’ worth of U.S. items there.
ZTE also created an elaborate scheme to hide the data related to these transactions from a forensic accounting firm hired by defense counsel to conduct a review of ZTE’s transactions with sanctioned countries. It did so knowing that the information provided to the forensic accounting firm would be reported to the U.S. government by outside counsel. Outside counsel was not aware of this scheme and indeed was wholly unaware that ZTE had resumed business with Iran. After ZTE informed its counsel of the scheme, counsel reported – with permission from ZTE – the conduct to the U.S. government.
The Iran Business
According to court documents, between January 2010 and January 2016, ZTE, either directly or indirectly through a third company, shipped approximately $32,000,000 of U.S.-origin items to Iran without obtaining the proper export licenses from the U.S. government. In early 2010, ZTE began bidding on two different Iranian projects. The projects involved installing cellular and landline network infrastructure. Each contract was worth hundreds of millions of U.S. Dollars and required U.S. components for the final products.
In December 2010, ZTE finalized the contracts with Iranian customers. The contracts were signed by four parties: the Iranian customer, ZTE, Beijing 8 Star and ZTE Parsian. Court documents explain that ZTE identified Beijing 8 Star (8S) as a possible vehicle for hiding its illegal shipments of U.S. items to Iran. It intended to use 8S to export U.S.-origin items from China to ZTE customers in Iran. As part of this plan, ZTE supplied 8S with necessary capital and took over control of the company.
Under the terms of the Iran contracts, ZTE agreed to supply the “self-developed equipment,” collect payments for the projects and manage the whole network. ZTE Parsian was to provide locally purchased materials and all services. 8S was responsible for “relevant third-party equipment,” which primarily meant parts that would be subject to U.S. export laws. ZTE intended for 8S to be an “isolation company,” that is, ZTE intended for 8S (rather than ZTE) to purchase the embargoed equipment from suppliers and provide that equipment under the contract in an effort to distance ZTE from U.S. export-controlled products and insulate ZTE from U.S. export violations. However, 8S had no purchasing or shipping history and no real business reputation.
Ultimately, although 8S was a party to the contracts, ZTE itself purchased and shipped the embargoed goods under the contract. In its shipping containers, it packaged the U.S. items with its own self-manufactured items to hide the U.S.-origin goods. ZTE did not include the U.S. items on the customs declaration forms, though it did include the U.S.-origin items on the packing lists included inside of the shipments.
In early 2011, when ZTE determined that the use of 8S was insufficient to hide ZTE’s connection to the illegal export of U.S.-origin goods to Iran, senior management of ZTE ordered that a company-level export control project team study, handle and respond to the company’s export control risks. In September 2011, four senior managers signed an Executive Memo, which proposed that the company identify and establish new “isolation companies” that would be responsible for supplying U.S. component parts necessary for projects in embargoed countries. The isolation companies would conceal ZTE’s role in the transshipment scheme and would insulate ZTE from export control risks.
In March 2012, Reuters published an article regarding ZTE’s sale of equipment to Iran. In response, ZTE made a decision to temporarily cease sending new U.S. equipment to Iran. By November 2013, however, ZTE had resumed its business with Iran. Beginning in July 2014, ZTE began shipping U.S.-origin equipment to Iran once again without the necessary licenses.
Instead of using 8S, however, ZTE identified a new isolation company. ZTE signed a contract with the new isolation company, which in turn signed contracts with the two Iranian customers. According to the new scheme, ZTE purchased and manufactured all relevant equipment – both U.S.-origin and ZTE-manufactured – and prepared them for pick-up at its warehouse by the new isolation company. The new isolation company then shipped all items to the Iranian customers. Shipments to Iran continued from January 2014 through January 2016.
The Obstruction and False Statement
According to court documents, despite its knowledge of an ongoing grand jury investigation into its Iran exports, ZTE took several steps to conceal relevant information from the U.S. government. It further took affirmative steps to mislead the U.S. government. In the summer of 2012, ZTE asked each of the employees who were involved in the Iran sales to sign nondisclosure agreements in which the employees agreed to keep confidential all information related to the company’s U.S. exports to Iran.
During meetings throughout late 2014, late 2015 and early 2016, outside counsel for ZTE, unaware that the statements ZTE had given to counsel for communication to the government were false, represented to the DOJ and federal law enforcement agents that ZTE had stopped doing business with Iran and therefore was no longer violating U.S. export laws. Similarly, on July 8, 2015, in-house counsel for ZTE accompanied outside counsel in a meeting with the DOJ and federal law enforcement agents and reported that ZTE was abiding by U.S. laws. That statement was also false.
ZTE also hid data related to its resumed illegal sales to Iran from a forensic accounting firm hired by defense counsel to conduct an internal investigation into the company’s Iran sales. ZTE knew the forensic accounting firm was reviewing its systems and knew that the analysis was being reported to the DOJ and U.S. law enforcement. To avoid detection of its 2013-2016 resumed illegal sales to Iran, ZTE formed the “contract data induction team” (“CDIT”). The CDIT was comprised of approximately 13 people whose job it was to “sanitize the databases” of all information related to the 2013-2016 Iran business. The team identified and removed from the databases all data related to those sales. ZTE also established an auto-delete function for the email accounts of those 13 individuals on the CDIT, so their emails were deleted every night – a departure from its normal practices – to ensure there were no communications related to the hiding of the data.
The case is being prosecuted by Deputy Chief Elizabeth Cannon of the National Security Division’s Counterintelligence and Export Control Sections and Assistant U.S. Attorney Mark Penley of the Northern District of Texas.
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Wyoming Man Pleads Guilty in the Murder and Assault of Crow ResidentsRead the Press Release
BILLINGS – Jesus Deniz Mendoza, 19, of Worland, Wyoming, pleaded guilty today in Billings federal court to murder, assault, and firearm charges. Under the terms of the plea agreement, the government will recommend that Mendoza serve the statutory maximum for each offense of conviction. Specifically, it will request that the court impose life sentences for two counts of second degree murder and three counts of using a firearm during and in relation to crimes of violence, 20 years for assault with intent to commit murder, and 10 years for assault with a dangerous weapon, with each sentence to run consecutively, one after the other. On the firearm offenses alone, Mendoza faces a mandatory minimum sentence of 60 years that must run consecutively to the sentences imposed for the murders and assaults. United States District Court Judge Susan P. Watters presided over the change of plea hearing and set sentencing for August 10, 2017 in Billings.
In court documents, federal prosecutors stated that if called upon to prove its case at trial, the United States was prepared to demonstrate that on July 29, 2015, at approximately 10:11 a.m., Crow Agency dispatch received a call about a shooting on Pryor Gap Road in Pryor, Montana, between the St. Charles Mission School and Plenty Coups Park. The first law enforcement officers on the scene saw a deceased male and a deceased female lying in the road, face down. Also observed at the scene was a 1990 Ford Taurus, green, bearing Wyoming license plate number 20-2934, registered to the mother of Deniz Mendoza.
The daughter of the deceased male and female was with her parents when they were shot. She was interviewed by law enforcement and stated that her mother came to her house and told her that there was a guy that needed assistance. The three took the daughter’s car and drove past the St. Charles Mission School on Pryor Gap Road, where they met up with Deniz Mendoza who was in a green vehicle that was parked on the side of the road. When they approached Deniz Mendoza, he stepped out of his vehicle, pointed a gun at them, and told them to get out of the car. They complied and got out of their car. Deniz Mendoza told them to stand behind the car and asked them for money. They told him that they did not have any money. Deniz Mendoza then told them to start walking away from their car. As they were walking, the daughter heard a gunshot. When she turned around, she saw her father lying on the road. She started running. As she was running, she heard her mother scream, but she did not turn around because she was scared. She kept running and, as she did, she felt blood running down her face, which was later determined to be the result of a bullet wound. She heard another gunshot and felt a bullet hit her in the back. She then turned around and saw Deniz Mendoza get into her car and drive off.
The daughter was able to yell for help, and she caught the attention of some individuals at the St. Charles Mission School. A car drove to her location, and she told the female driver that she had been hurt. The female driver got out of the car and walked towards the daughter’s parents lying in the road. Fearing that the unknown male would come back, the daughter got into the female driver’s car. When the daughter saw her car coming back toward her, she got behind the wheel of the female driver’s car and drove away.
Two males drove from the St. Charles Mission School to the scene after someone had informed them that gunshots were fired nearby. They were at the scene when Deniz Mendoza returned to the scene in the daughter’s car, got out of the car, and started shooting. Because the female driver was outside of her car (the daughter had driven her car away), the males pushed the female driver into a ditch and told her to play dead. Both males confirmed that Deniz Mendoza shot at the female driver and pointed the gun at all of them.
As a result of a law enforcement bulletin, the daughter’s vehicle was located near Meeteetse, Wyoming by a Park County Wyoming Sheriff’s Deputy. Deniz Mendoza was driving the vehicle.
On July 29, 2015, law enforcement conducted a recorded interview of Deniz Mendoza. During the interview, Deniz Mendoza admitted to shooting three people with a .22 caliber rifle and then driving away from the scene in the victims’ vehicle. Deniz Mendoza also described the rifle that he used, and he told the interviewing agents that the rifle was still in the vehicle that he was driving when he was arrested.
This case was prosecuted by Assistant U.S. Attorneys Lori Harper Suek, John D. Sullivan, and Joseph E. Thaggard and investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs, and the Montana Highway Patrol.
Wood County woman indicted for several bank robberiesRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Davisville, West Virginia woman has been indicted for bank robberies spanning two counties, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Christine Joy Martin, 31, was charged by a federal grand jury for two counts of “Unarmed Bank Robbery.” Martin is accused of robbing Huntington Bank in Marion County of $2,000 on November 4, 2016. She is also charged with robbing United Bank in Monongalia County of $964 on December 20, 2016.
Martin faces up to 20 years in prison and a fine of up to $250,000 for each count.
Assistant U.S. Attorney Sarah W. Montoro is prosecuting the case on behalf of the government. The Morgantown Police Department and the Fairmont Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Wise, Virginia Man Pleads Guilty to Taking Ginseng from National ForestRead the Press Release
Abingdon, VIRGINIA – A Wise man, who illegally removed Ginseng plants from the National Forest, pled guilty yesterday in the United States District Court, Acting United States Attorney Rick A. Mountcastle announced.
Mark Evan Buchanan, 47, of Wise, Va., pled guilty yesterday to one count of attempting to transport, sell, receive or acquire plants in interstate commerce knowing that said plants were taken in an unlawful manner. Buchanan will be sentenced on May 25 at 10:30 a.m.
According to evidence presented in court by Special Assistant United States Attorney Kathleen Carnell, Buchanan possessed 246 wild Ginseng roots from the George Washington and Jefferson National Forrest knowing that it was illegal to take, possess, acquire and transport wild Ginseng from the National Forest.
The investigation of the case was conducted by the U.S. Forest Service. Assistant United States Attorney Special Assistant United States Attorney Kathleen Carnell prosecuted the case for the United States.
Ukrainian National Arrested in Connection with Scheme to Illegally Export Rifle Scopes and Thermal Imaging EquipmentRead the Press Release
Earlier today, Volodymyr Nedoviz, a lawful permanent resident of the United States and citizen of Ukraine, was arrested on federal charges of illegally exporting controlled military technology from the United States to end-users in Ukraine. Federal agents also executed a search warrant at a Philadelphia, Pennsylvania location that was used in connection with Nedoviz’s illegal scheme.
Nedoviz is scheduled to make his initial appearance today at 2:00 p.m. at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York, before United States Magistrate Judge Ramon E. Reyes, Jr.
The arrest and charges were announced by U.S. Attorney Robert L. Capers of the Eastern District of New York; Acting Assistant Attorney General for National Security Mary B. McCord; FBI Assistant Director in Charge William F. Sweeney, Jr., New York Field Office; Special Agent in Charge Angel M. Melendez, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) for New York; and Special Agent in Charge Jonathan Carson, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office.
The complaint alleges that the defendant conspired with others located in both Ukraine and the United States to purchase export-controlled, military-grade equipment from sellers in the United States and to export that equipment to Ukraine without the required licenses. The devices obtained by the defendant and his co-conspirators included some of the most highly powerful and technologically sophisticated night vision rifle scopes and thermal imaging equipment available, including, among others, an Armasight Zeus-Pro 640 2-16x50 (60Hz) Thermal Imaging weapons sight, a FLIR Thermosight R-Series, Model RS64 60 mm 640x480 (30Hz) Rifle Scope, and a ATN X-Sight II 5-20x Smart Rifle Scope. In many cases, the devices purchased by the defendant and his co-conspirators retail for almost $9,000, and they are specifically marketed to military and law enforcement consumers.
As part of the conspiracy, in order to induce U.S.-based manufacturers and suppliers to sell them the export-controlled devices and to evade applicable controls, the defendant and his co-conspirators falsely purported to be United States citizens and concealed the fact they were exporters. The defendant and his co-conspirators also recruited, trained, and paid other U.S.-based individuals to export the controlled devices to Ukraine via various freight forwarding companies. Among other things, the defendant and his co-conspirators instructed the U.S.-based individuals to falsely describe the nature and value of the equipment they were attempting to export. In addition, to conceal their identities, as well as the true destination of the rifle scopes and thermal imaging equipment, the defendant and his co-conspirators instructed that the items be shipped using false names and addresses.
The export of military-grade rifle scopes and thermal imaging equipment requires a license from either the United States Department of State or the United States Department of Commerce. Both the Department of State and the Department of Commerce have placed restrictions on the export of items that they have determined could make a significant contribution to the military potential and weapons proliferation of other nations and that could be detrimental to the foreign policy and national security of the United States.
“The defendant tried to circumvent laws that protect our national security by preventing specialized technologies from falling into the wrong hands,” said U.S. Attorney Capers. “Those who seek to evade the scrutiny of U.S. regulatory and law enforcement agencies by operating in the shadows present a danger to our national security and our allies abroad. We will continue to vigorously prosecute violations of our laws that help maintain the superiority of our armed forces on land, sea, and air.” Mr. Capers expressed his grateful appreciation to the FBI’s Joint Terrorism Task Force.
“Export controls on military technology and equipment are put in place so military-grade gear doesn’t end up in the wrong hands. As we alleged, Nedoviz colluded with co-conspirators to illegally purchase highly powerful, technologically sophisticated equipment intended for law enforcement and military and then export to Ukraine without the proper licenses. The FBI will continue to protect our national security assets as we work with our partners to prevent the exportation of restricted materials,” said Sweeney, FBI Assistant Director in Charge, New York Field Office.
“Nedoviz, a Ukrainian national, falsely pretended to be a citizen of the United States in order to purchase highly sensitive military grade equipment, that would later be illegally exported to Ukraine” said Melendez, Special Agent in Charge, Melendez of HSI New York. “These items including rifle scopes and thermal imaging equipment have strict export controls in order to make sure that our soldiers overseas never have to encounter them on the battlefield. It is a mission we at HSI take very seriously.”
“Today’s arrest demonstrates the Office of Export Enforcement's strong commitment to enforcing our nation's export control and public safety laws. We will continue to work with our law enforcement partners to keep the most sensitive goods out of the most dangerous hands,” said Special Agent in Charge Carson, U.S. Department of Commerce Bureau of Industry and Security, Office of Export Enforcement, New York Field Office.
If convicted of the charges, the defendant faces up to 20 years in prison and a $1 million fine.
The case is being handled by the Office’s National Security and Cybercrime Section. Assistant U.S. Attorneys Peter W. Baldwin and Michael Keilty are in charge of the prosecution, with assistance from Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section.
The Defendant:
VOLODYMYR NEDOVIZ
Age: 32
Queens, New York
E.D.N.Y. Docket No. 17-M-208
Two More Commercial Fisherman Plead Guilty to Ilegally Harvesting and Selling Atlantic Striped BassRead the Press Release
WILMINGTON – The United States Attorney’s Office announced that today in federal court, DAVID SAUNDERS, JR., 46, of Poplar Branch, North Carolina, and MICHAEL POTTER,59, of Bayboro, North Carolina pled guilty to federal charges regarding the illegal harvest and sale of Atlantic striped bass from federal waters off the coast of North Carolina.
According to the Indictments and information in the public records, in February 2010, a Special Agent with the National Oceanic and Atmospheric Administration (NOAA) received information that commercial trawlers were illegally fishing for Atlantic striped bass in federal waters off the coast of North Carolina. Since 1990, there has been a ban on the harvesting of Atlantic striped bass in the United States’ Exclusive Economic Zone (“EEZ”) which spans between 3 miles and 200 miles seaward of the U.S. Atlantic coastline.
Upon receiving the information, NOAA engaged the assistance of the U.S. Coast Guard. A single patrol vessel in the area intercepted one of 17 commercial trawlers in the EEZ, (the fishing vessel Lady Samaira), and boarded the vessel. At the time of the boarding, the Lady Samaira was captained by Defendant Ellis Leon Gibbs, Jr.
Given the other commercial trawlers in the same area, NOAA conducted an analysis of electronic data and written reports from those vessels. Based on its review, NOAA determined that in seven separate fishing trips between January 27, 2009, and February 9, 2010, SAUNDERS, then Captain of the Bridgot Denise, a commercial trawler, harvested approximately 14,579 pounds of Atlantic striped bass from the EEZ, which he sold to a fish dealer in Wanchese, North Carolina. The estimated fair market retail value of the 14,579 pounds of illegally harvested fish exceeds $116,000.
To conceal the illegal harvests, SAUNDERS submitted false statements under penalty of perjury to NOAA, claiming he caught the fish in state waters on all but one of his fishing trips. On five of those seven federal vessel trip reports, SAUNDERS claimed he harvested the fish in the Albemarle Sound – internal state waters where trawling for striped bass is prohibited by state law.
Based on this same review, NOAA also determined that POTTER, then Captain of the Jane Carolyn, a commercial trawler, was fishing for Atlantic striped bass 9 nautical miles from the coast of North Carolina on the same day that the Lady Samaira was boarded. NOAA further determined that between February 8, 2010, and February 13, 2010, POTTER harvested approximately 4,305 pounds of Atlantic striped bass from the EEZ, which he sold to fish dealers in Wanchese and Lowland, North Carolina. In an interview in July 2014, POTTER admitted that he knew it was illegal to harvest Atlantic striped bass from the EEZ, but falsely denied ever doing so. The estimated fair market retail value of the 4,305 pounds of illegally harvested fish exceeds $34,000.
During the winter 2010 Atlantic striped bass ocean trawl season, it is estimated that over 90,000 pounds of North Carolina’s 160,000 pound ocean trawl quota were taken illegally from the EEZ.
Six other commercial fisherman previously entered guilty pleas for conduct uncovered by the same investigation. United States v. Dewey W. Willis, Jr., No. 2:15-CR-3-BO, United States v. James Ralph Craddock, No. 2:15-CR-7-BO, United States v. Joseph Howard Williams, No. 4:15-CR-2-BO; United States v. Ellis Leon Gibbs, Jr., No. 4:14-CR-9-BO, United States v. Dwayne J. Hopkins, 2:15-CR-8-BO, and United States v. John Roberts¸ No. 4:15-CR-3-BO.
“These prosecutions make clear that efforts to circumvent laws regulating commercial fishing -- which are implemented to sustain the species for the benefit of future generations -- will be enforced vigorously,” said U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “We are pleased to partner with our colleagues at DOJ’s Environmental Crimes Section in these important cases.”
Manny Antonaras, Acting Assistant Director for the NOAA’s Southeast Office of Law Enforcement stated, "NOAA's Office of Law Enforcement is committed to ensuring a level playing field for law abiding fishermen and coastal communities that rely upon our nation’s living marine resources. When people cheat the system, it hurts those who follow the rules the most."
A sentencing hearing has been scheduled for the Court’s June 5, 2017, term of court. SAUNDERS and POTTER each face a maximum sentence of 5 years imprisonment and/or a $250,000 fine.
The investigation was conducted by the Law Enforcement Offices of NOAA, with assistance of the Investigative Service from the U.S. Coast Guard, the North Carolina Marine Patrol, and the Virginia Marine Police. This case is being prosecuted by Senior Litigation Counsel Banumathi Rangarajan of the United States Attorney’s Office for the Eastern District of North Carolina, and Trial Attorneys Shennie Patel, Shane Waller, and Joel LaBissonniere of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section.
Two KC Men Sentenced to Lengthy Prison Terms for Large-Scale Drug-Trafficking ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Kansas City, Mo., men were sentenced in federal court today for their roles in a large-scale drug-trafficking conspiracy.
Frenklyn Piggie, 39, and Olufemi Siffre, 39, both of Kansas City, were sentenced in separate appearances before U.S. District Judge Gary A. Fenner. Piggie was sentenced to 25 years in federal prison without parole. Siffre was sentenced to 20 years in federal prison without parole.
Piggie and Siffre have each pleaded guilty to participating in a conspiracy to distribute more than five kilograms of cocaine and more than 280 grams of crack cocaine. Piggie also pleaded guilty to possessing a firearm in furtherance of a drug-trafficking crime.
According to court documents, Piggie was the leader of an extensive network of cocaine and crack cocaine dealers. Siffre purchased cocaine from Piggie and other suppliers. Piggie and Siffre sold cocaine and crack cocaine to numerous street-level drug dealers.
Investigators learned that Piggie would be receiving a large shipment of cocaine and that Siffre was to purchase a portion of this shipment. Search warrants were executed at Piggie’s residence and at Siffre’s drug houses on Jan. 5, 2014.
Piggie was armed with an FNH semi-automatic pistol with an extended, 30-round magazine when officers entered his residence. Piggie and his supplier, co-defendant Jesus M. Frye-Santoyo, 31, of Kansas City, Kan., were found hiding in the garage and were both arrested.
Investigators recovered six kilograms of cocaine and approximately $185,000 in drug-trafficking proceeds from Piggie’s residence. Investigators also recovered four other firearms during the search of the residence, including a loaded AK-47 assault rifle beneath a sofa in the living room, a loaded Desert Eagle 9mm pistol under a sofa cushion in the living room, a Ruger 9mm pistol with an extended magazine in a backpack under the kitchen table and a loaded FNH pistol on the floor in a bedroom.
Investigators also recovered evidence of crack cocaine trafficking from Siffre’s houses, including drug paraphernalia, three bags containing a total of 20 grams of cocaine, and a bag containing a small amount of crack cocaine. Investigators also found a .44-caliber revolver in a hidden compartment in a bedroom closet.
Piggie’s criminal record details a lengthy criminal history that is characterized by drug distribution and the possession and use of firearms, including two prior convictions in federal court for being a felon in possession of a firearm. A months-long investigation of Piggie and his co-conspirators included numerous controlled purchases and the use of wiretaps.
Frye-Santoyo was sentenced to 10 years and 10 months in federal prison without parole after pleading guilty to his role in the conspiracy.
Piggie, Siffre and Frye-Santoyo are among 18 co-defendants who have been sentenced in this case. Co-defendant James Caldwell, 39, of Kansas City, Mo., has pleaded guilty to his role in the conspiracy and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorneys Brent Venneman and Jeff Q. McCarther. It was investigated by the FBI, the Kansas City, Mo., Police Department and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Two Charged in Heroin Trafficking SchemeRead the Press Release
JOHNSTOWN, Pa. – Two residents of Johnstown and Philadelphia, Pa., were indicted by a federal grand jury in Johnstown on charges of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
The six-count indictment named as defendants Ava Blackwell, 24, of Solomon Homes, Johnstown, Pa. and Kareem Jamal Jones, 27, of Philadelphia, Pa.
According to the indictment presented to the court, from Aug. 25, 2016, through Sept. 14, 2016, Blackwell and Jones conspired to distribute and possess with the intent to distribute less than 100 grams of heroin. On each of the dates of Aug. 25, Aug. 29 and Sept. 14, 2016, Blackwell distributed less than 100 grams of heroin; on Sept. 7, 2016, Jones distributed less than 100 grams of heroin; and on Sept. 14, 2016, Blackwell and Jones possessed with the intent to distribute less than 100 grams of heroin.
The law provides for a maximum total sentence for Ava Blackwell of 100 years in prison, a fine of $5,000,000, or both, and for Kareem Jamal Jones, of 60 years in prison, a fine of $3,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Blackwell and Jones.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Texas Man Sentenced for Misdemeanor Conviction for Stealing Prescription Pain Medication in New MexicoRead the Press Release
ALBUQUERQUE – Michael Adams, 52, of Horizon City, Texas, was sentenced today in Las Cruces, N.M., to two years of probation for his conviction on a federal misdemeanor theft of government property charge arising out of his theft of prescription pain medication being shipped by the Veterans Administration through the United Parcel Service (UPS). Adams was also ordered to pay $537.03 in restitution to the victim of his crime.
Adams was charged by a misdemeanor information filed on Dec. 12, 2016, with theft of government property on Aug. 21, 2013. According to the information, Adams committed the crime in Otero County, N.M.
On Jan. 10, 2017, Adams pled guilty to the misdemeanor information and admitted that on Aug. 21, 2013, while employed by UPS in Alamogordo, N.M., he stole a package containing prescription pain medication sent by the Veterans Administration through the UPS.
This case was investigated by the Department of Veterans Affairs, Office of the Inspector General. The case was prosecuted by Assistant U.S. Attorney Richard C. Williams of the U.S. Attorney’s Las Cruces Branch Office as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Tampa Man Pleads Guilty to Paying Health Care KickbacksRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Anthonio Miller (26, Tampa) today pleaded guilty to conspiracy to pay kickbacks in connection with a federal health care benefit program. He faces a maximum penalty of five years in federal prison.
According to the plea agreement, Miller was an active duty petty officer with the U.S. Navy stationed at MacDill Air Force Base in Tampa. Beginning in October 2014, he became a sales representative for Centurion Compounding Inc., Centurion, a marketing firm located in Wesley Chapel, utilized sales representatives as independent contractors to market compounded medications, specifically creams for pain and scars, to health care benefit program beneficiaries. Centurion focused its promotional efforts on TRICARE beneficiaries based upon an understanding and belief that TRICARE would pay claims for these compounded creams.
Miller was initially recruited into the Centurion scheme by other active-duty military members, including his co-defendant Cordera Hill, to be a patient and to obtain compounded creams marketed by Centurion. On October 22, 2014, Miller received a prescription from a doctor for pain cream and scar cream. He went on to obtain additional prescriptions in his own name, for which TRICARE paid approximately $60,673.06.
Miller agreed and conspired with other members of his Centurion sales marketing group, self-labeled “team cream,” to give and offer to give TRICARE beneficiaries incentives, such as cash, meals, entertainment, and travel expenses, to visit a doctor and obtain prescriptions for Centurion-marketed compounded creams for which Miller and other “team cream” members would receive commissions. Between October 2014 and February 2015, Miller caused approximately $655,611 in claims to be submitted to TRICARE, resulting in the payments of $558,090.04 for prescriptions, from which Centurion and Miller received commissions. Miller received commissions from Centurion totaling approximately $19,977.53 and, at the time Centurion was shut down in February 2015, Miller was owed an additional $34,999.25 in commissions from Centurion.
This case was investigated by the Defense Criminal Investigative Service, the U.S. Air Force Office of Special Investigation, the Federal Bureau of Investigation, the Department of Health and Human Services – Office of Inspector General, and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorneys Mandy Riedel and Megan Kistler.
Tampa Brothers Sentenced for Tax FraudRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore has sentenced two Tampa brothers for conspiracy to commit tax fraud and aggravated identity theft. Keith Godbolt was sentenced to three years and six months in federal prison and Paul Johnson was sentenced to four years’ imprisonment. As part of their sentences, the Court also entered joint and several money judgements in the amount of $221,000, representing the proceeds of the tax fraud conspiracy. Godbolt and Johnson pleaded guilty in December 2016.
According to court documents, from August 2011 through April 2013, Godbolt, Johnson, and their co-defendant and mother, Elise Ellis, conspired to commit wire fraud, theft of government property, and identity theft by electronically filing fraudulent tax returns in other people’s names, using their social security numbers. The fraudulent tax refunds were directed to bank accounts in defendants’ names, or in some cases, to debit cards they controlled. Godbolt, Johnson, and Ellis then withdrew the fraudulent refunds by writing checks or otherwise transferring funds to each other through bank transfers or cash withdrawals.
Most of the fraudulently filed tax returns claimed unusually high taxable interest or dividend income, many using the exact same figure, with a large withholding amount, and a false occupation listed for the taxpayer. Many of the victims were deceased when their false tax return was filed.
Ellis pleaded guilty on January 3, 2017, she is scheduled to be sentenced on March 20, 2017.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Rochester Man Sentenced to 20 Months for Threatening to Kill Federal ProsecutorRead the Press Release
ROCHESTER, NEW YORK – Tony Ivey, age 53, of Rochester, New York, was sentenced today to 20 months in prison for threatening to kill an Assistant United States Attorney.
The announcement was made by United States Attorney Richard S. Hartunian of the Northern District of New York, whose office handled the prosecution.
On June 14, 2016, Ivey called the Rochester Branch Office of the United States Attorney’s Office for the Western District of New York, and threatened to kill an Assistant United States Attorney (AUSA) with an assault rifle. Prior to the threat, the AUSA had explained to Ivey that he could not directly assist Ivey with the complaint Ivey had called about and attempted to refer Ivey to an agency that could assist him.
Chief United States District Judge Frank P. Geraci, Jr., of the Western District of New York, also imposed a 3-year term of post-imprisonment supervised release.
This case was investigated by the United States Marshals Service for the Western District of New York, and was prosecuted by Assistant U.S. Attorney Geoffrey Brown of the Northern District of New York.
Reno Man Sentenced to 15 Years for Conspiracy to Provide Material Support to TerroristsRead the Press Release
RENO, Nev.— Balwinder Singh, 41, was sentenced today by U.S. District Judge Larry R. Hicks to 180 months in prison for conspiracy to provide material support and resources to terrorists for a movement to create an independent Sikh state in the Punjab region of Indian, announced Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Daniel G. Bogden for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI’s Las Vegas Division.
“The JTTF investigation led to the discovery of a Reno resident who was a member of two terrorist groups and provided material support to intimidate the Indian government and to harm persons that were not supporting the terrorism groups’ cause,” said U.S. Attorney Bogden. “This case is an example of multi-law enforcement agencies working collaboratively together to protect the United States and our foreign allies from a terrorist act.”
“The sentence imposed today sends a clear message: Members of the FBI’s Joint Terrorism Task Force will work vigorously to uncover and stop any efforts to provide monetary or material support to organizations created to do murder,” said FBI SAC Rouse. “This investigation clearly highlights the magnitude and importance of the law enforcement community’s commitment to combatting terrorism and keeping our nation safe.”
Singh, aka Jhaji, aka Happy, aka Possi, aka Baljit Singh, is a citizen of India and a permanent U.S. resident. Singh pleaded guilty on Nov. 29, 2016.
According to court documents, between September 2013 and Dec. 17, 2013, Singh conspired with others to support terrorist attacks in India as part of a movement to create an independent Sikh state in the Punjab region of India. Singh agreed to provide material support by helping facilitate a co-conspirator’s travel to and within South Asia; to provide necessary funding; and to provide materials necessary to carry out the attack. On occasions, Singh traveled from Reno to California to meet a co-conspirator in person.
In October 2013, Singh and co-conspirators agreed that one co-conspirator would travel to India and commit a terror attack – likely an assassination or maiming of an Indian governmental official. The final target would be determined after the co-conspirator arrived in South Asia.
In November 2013, Singh purchased two sets of night vision goggles and a laptop computer. In December 2013, he provided these items to a co-conspirator who was going to carry out the planned terror attack. On Dec. 9, 2013, the co-conspirator attempted to board a flight from the San Francisco International Airport to Bangkok, Thailand in order to carry out the terror attack with the night vision goggles provided to him by Singh. United States law enforcement prevented the co-conspirator from boarding that flight. As a result, the planned terror attack never occurred. After these events, Singh and his co-conspirators continued to discuss and plan the terror attack in India until Singh’s arrest.
The case was investigated by the FBI-led Joint Terrorism Task Force in northern Nevada. The northern Nevada JTTF is comprised of the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Naval Criminal Investigative Service and Nevada Department of Investigation. In addition, ATF, U.S. Citizenship and Immigration Services, and the Washoe County Sheriff’s Office provided assistance in the investigation.
Assistant U.S. Attorneys Sue Fahami, Brian L. Sullivan, Carla Higginbotham, and Trial Attorney Mara M. Kohn of the National Security Division’s Counterterrorism Section prosecuted the case.
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Professional Fishing Guide Fined $7,500 for Killing Wild Coho and Attempting to Pass Them Off as Hatchery FishRead the Press Release
A long-time professional fishing guide who attempted to conceal the fact that he had killed two protected wild salmon was fined $7,500 today in U.S. District Court in Tacoma for violating the Endangered Species Act, announced U.S. Attorney Annette L. Hayes. BILLY SWANN, 52, owner and operator of Swanny’s Guided Fishing service which operates on the Lower Columbia and Cowlitz rivers, pleaded guilty to the misdemeanor charge last year. At the sentencing hearing Magistrate Judge Karen Strombom described his conduct as “shocking” and told him, “You had a responsibility and you failed miserably at it.”
“With so many putting so much into bringing back our cherished wild salmon runs in the Pacific Northwest, this conduct is particularly offensive,” said U. S. Attorney Annette L. Hayes. “A salmon fishing guide who makes his living off our natural resources should have respected the rules that are meant to ensure those resources will always be there for all of us. The fact that he was willing to ignore those rules knowing others were watching makes his conduct all the more troubling.”
According to records filed in the case, on October 1, 2014 SWANN led a promotional fishing trip on the Cowlitz River with the top salespeople from a national fishing bait company. The trip was being broadcast over the internet. SWANN encouraged two men on the trip to catch two native Coho salmon. Native Coho on the Cowlitz are protected by the Endangered Species Act and Washington law, and may not be removed from the water. After the clients landed the fish, SWANN clubbed both of them and then cut off the adipose fins on each fish to make it appear they were hatchery fish and therefore legal to catch and keep. However, the catching and clubbing of the wild and protected fish was caught on the web broadcast, and the illegal conduct was reported to the Washington State Department of Fish and Wildlife. When contacted by authorities, SWANN first lied about the conduct saying the photos of the fish with the adipose fin still intact could have been ‘photo-shopped’.
“NOAA Fisheries has worked hard to rebuild the salmon population in the Pacific Northwest,” said Samuel D. Rauch III, acting assistant administrator for NOAA Fisheries. “This kind of illegal action by a guide, who should be setting an example, undermines the progress we’ve made in restoring salmon and squanders an invaluable resource that belongs to all of us.”
The case was investigated by the NOAA Fisheries Office of Law Enforcement with assistance from the Washington State Department of Fish and Wildlife - Police.
The case was prosecuted by Assistant United States Attorney Seth Wilkinson.
Presque Isle Man Sentenced to 73 Months for Bath Salts Distribution ConspiracyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Nathan Brewer, 35, of Presque Isle, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 73 months in prison and three years of supervised release for conspiring to distribute bath salts. The defendant pled guilty on January 23, 2015.
According to court records, between about January 2012 and June 2014, Brewer conspired with others to obtain bath salts overseas via the internet and to distribute it in Aroostook County. Brewer raised money from other conspirators to place orders large enough to receive a bulk discount.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency with assistance from the Aroostook County Sheriff’s Department and the U.S. Postal Inspection Service.
Postal Employee Charged with Misappropriating Postal FundsRead the Press Release
JOHNSTOWN, Pa. – A resident of Somerset, Pa. was indicted today by a federal grand jury in Johnstown on a charge of misappropriation of postal funds by a postal service employee, Acting United States Attorney Soo C. Song announced today.
The indictment named Michael Reich, 57, of Somerset, Pa., as the sole defendant.
According to the indictment presented to the court, from May 18, 2016 to November 1, 2016, while an employee of the United States Postal Service, he unlawfully converted to his own use approximately $19,180, which had come into his possession or control as an employee of the United States Postal Service.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines, is prosecuting this case on behalf of the government.
The United States Postal Service, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Postal Contract Employee Indicted for Stealing MailRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an employee who worked under a contract with the U.S. Postal Service was indicted by a federal grand jury today for stealing mail.
Kristen L. McIntyre, 37, of Trenton, Mo., was charged in an indictment returned by a federal grand jury in Kansas City, Mo.
According to today’s indictment, McIntyre was an employee for a trucking company under contract with the U.S. Postal Service. McIntyre worked as a highway contract route driver to transport mail to and from post offices in Trenton, Spickard, Princeton and Mercer, Mo., to the Chillicothe, Mo., post office.
McIntyre allegedly stole mail – including money and gift cards – between Aug. 18 and Sept. 15, 2016.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge 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 Rudolph R. Rhodes, IV. It was investigated by the U.S. Postal Service – Office of Inspector General.
Pawtucket Resident Sentenced for Operating Large-Scale Indoor Marijuana Growing OperationRead the Press Release
PROVIDENCE – Michael Watkins 35, of Pawtucket, was sentenced today to 60 months in federal prison for operating a large-scale marijuana growing operation inside a former mill building in Providence in August 2015, announced United States Attorney Peter F. Neronha and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
The sophisticated growing operation was discovered during an ongoing FBI Safe Streets Task Force investigation into multiple large-scale marijuana growing operations inside a former mill building at 725 Branch Avenue.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Watkins to serve 3 years supervised release upon completion of his term of incarceration. Watkins pleaded guilty on January 27, 2017, to conspiracy to manufacture 100 or more marijuana plants and manufacturing more than 100 marijuana plants.
According to court documents and information presented to the court, on August 12, 2015, the FBI Safe Street Task Force, with the assistance of DEA and the Rhode Island State Police, executed multiple court authorized search warrants in and around the Branch Avenue former mill building. Among the discoveries, law enforcement discovered and seized from inside Unit 133, 157 adult marijuana plants and a large amount of equipment used to produce marijuana, using hydroponic techniques.
The investigation determined that the marijuana growing equipment and plants discovered inside Unit 133 belonged to Michael Watkins.
Watkins was arrested on a federal criminal complaint on January 11, 2016. A federal indictment was returned on February 16, 2016, charging Watkins with conspiracy to manufacture 100 or more marijuana plants and manufacturing more than 100 marijuana plants.
The case was prosecuted by Assistant U.S. Attorney William J. Ferland.
United States Attorney Peter F. Neronha acknowledges and thanks the Providence Fire Department Arson Squad for their assistance in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Owner of Tax Business in Kewaskum, WI Charged with Tax FraudRead the Press Release
Gregory J. Haanstad, the United States Attorney for the Eastern District of Wisconsin, announced that Robert F. Spoerl (age 69), a resident of Campbellsport, Wisconsin, was charged in a 28-count indictment. The indictment charges Spoerl, who operated a tax return preparation business in Kewaskum, Wisconsin, under the name J&R Tax Service, with 10 counts of assisting in the filing of false federal income tax returns, 16 counts of theft of money from the United States by filing false claims for tax refunds, and two counts of aggravated identity theft.
Spoerl is alleged to have used clients’ personal information to file false tax returns with the IRS. To conceal his fraud, Spoerl provided his clients, who were unaware of Spoerl’s fraud, with an accurate copy of their tax return, which Spoerl did not file. The tax returns Spoerl did file fraudulently inflated the tax refunds claimed by the taxpayers by adding false claims for tax credits, deductions, and dependents. Spoerl then diverted the fraudulent portion of the refund to himself and paid the legitimate portion of the refund to his clients. The indictment alleges that during the years 2011- 2015, Spoerl filed more than 100 false tax returns seeking more than $150,000 in federal tax returns.
If convicted on all counts, Spoerl faces a minimum of two years in prison, up to three years in prison on each of the false tax return charges, and up to ten years in prison on each of the theft of government property charges, plus a fine of up to $250,000. Spoerl is scheduled to be arraigned in federal court in Milwaukee on March 15, 2017.
This matter was investigated by special agents with the Internal Revenue Service-Criminal Investigation. The case has been assigned to Assistant United States Attorney Matthew L. Jacobs for prosecution.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Operator of South Jersey Tax Preparation Company Sentenced to One Year in Prison for $340,000 Tax Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey, woman was sentenced today to 12 months in prison her role in a conspiracy to boost business at a tax preparation company she operated by preparing bogus income tax returns for her clients, U.S. Attorney Paul J. Fishman announced.
Noemi Pender, 58, of Rosenhayn, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to Count One of an indictment charging her with conspiring to aid and assist others in the preparation of false and fraudulent tax returns. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Pender was a tax preparer who operated Pender Tax Services in Rosenhayn. For the tax years 2007 through 2011, Pender and Grace Garrett, 64, of Pittsgrove, New Jersey, sought to increase referrals, enhance their business, and enrich themselves by preparing and filing income tax returns based on false information. They used a number of fraudulent practices, including falsely claiming a filer was a “head of household,” inventing and inflating deductions, creating fictitious dependents, and creating false credits for education and childcare.
The bogus returns resulted in a tax loss to the government of more than $340,000.
In addition to the prison term, Judge Hillman ordered Pender to serve three years of supervised release and pay restitution of $341,439.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: Jeffrey Zucker Esq., Camden
Omaha Woman Sentenced for Tax FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that Lisa R. Holmes, age 42 of Omaha, Nebraska, was sentenced on March 6, 2017, by Chief Judge Laurie Smith Camp. On December 5, 2016, Ms. Holmes entered a plea of guilty to tax fraud. Ms. Holmes was sentenced to 18 months’ imprisonment, to be followed by a one-year term of supervised release, a $100 special assessment and ordered to pay restitution in the amount of $48,833.00.
Ms. Holmes was a tax preparer. She created false Schedules C for several clients over a several year time span. In the false Schedules C, Ms. Holmes provided information that the clients had business income that they did not truly have. As a result of the falsification, the clients received a higher tax refund than they would have otherwise been entitled to receive. “While most return preparers provide excellent service to their clients, a few dishonest tax preparers file false and fraudulent returns to defraud the government, the taxpaying public and their own clients,” said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation. “Taxpayers should be selective in choosing a return preparer, and have confidence knowing that person will prepare accurate tax returns and safeguard their financial information.”
The case was investigated by the Internal Revenue Service Criminal Investigations unit.
Oakland Man Pleads Guilty to Production of Child PornographyRead the Press Release
OAKLAND– D’mar Dwain Jennings Conway pleaded guilty today to sexual exploitation of a child, announced United States Attorney Brian J. Stretch and Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin. The guilty plea follows the filing of a complaint and indictment in the spring of 2016.
According to his plea agreement, Conway, 29, of Oakland, admitted that on at least one occasion between 2007 and 2010, he induced a victim, for whom he was a caregiver, to engage in a sex act. Conway further admitted that the victim was under12 years old and that he induced the child to engage in sex acts so that Conway could produce visual depictions of the conduct. Also in the plea agreement, Conway acknowledged that law enforcement found and removed from his home a digital memory card containing numerous images depicting Conway engaging in different sexual acts with a child who was approximately three to six years old. Conway admitted that the images of the sexual abuse of the child were taken inside his residence.
A federal grand jury indicted Conway on June 16, 2016, charging him with one count of sexual exploitation of children, in violation of 18 U.S.C. §§ 2251(a) and (e); and one count of possession and access with intent to view child pornography, in violation of 18 U.S.C. §§ 2252(a) and (b). Pursuant to the plea agreement, Conway pleaded guilty to the first charge.
The Honorable Jeffrey S. White, U.S. District Judge, accepted Conway’s guilty plea and scheduled a sentencing hearing for June 6, 2017, at 1:00 pm. The maximum statutory sentence for violating 18 U.S.C. § 2251 is a 30-year prison term, and the minimum mandatory sentence for that crime is a 15-year prison term. Additional fines, victim restitution, and a term of supervised release also may be imposed by Judge White. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Christina McCall and Erin Cornell are prosecuting the case with the assistance of Vanessa Quant and Noble Hughes. The prosecution is the result of an investigation by HSI.
If members of the public have any information relevant to this investigation or to suspected child predators or suspicious activity, they should contact HSI through the toll-free Tip Line at 1-866-DHS-2-ICE or by completing the online tip form at https://www.ice.gov/webform/hsi-tip-form. Both are staffed around the clock by investigators. Suspected child sexual exploitation or missing children may also be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.