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7 April 2017
Multiple Credit Card Fraud Indictment AnnouncedRead the Press Release
Mamadou Billo Barry, age 32 of Newark, New Jersey, was charged yesterday, by Indictment, with conspiracy to commit an offense against the United States and with possession of 15 or more counterfeit or unauthorized access devices (credit cards) announced Acting United States Attorney Louis D. Lappen.
The indictment further alleges that Barry possessed, without lawful authority, a means of identification of another person, a resident of the State of Michigan, who had a credit card account with a credit union in Michigan. Barry is charged with having encoded the credit card account number, issued to the Michigan resident by his credit union, onto a credit card that Barry possessed. If convicted of the charged offenses, Barry faces a maximum term of imprisonment of 17 years which includes a 2-year minimum mandatory sentence, a fine of up to $750,000, a special assessment of $300 and 3 years of supervised release.
The case was investigated by the United States Department of Homeland Security and the Office of the District Attorney for Delaware County and is being prosecuted by Assistant United States Attorney Floyd J. Miller.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Middlesex County, New Jersey, Man Charged with Theft of Trade Secret Materials from DupontRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man has been charged with stealing computer files containing trade secrets from a DuPont manufacturing facility in Parlin, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced today.
Anchi Hou, 61, East Brunswick, New Jersey, was arrested this morning and charged by complaint with one count of theft of trade secrets. Hou is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.
According to the documents filed in this case and statements made in court:
In the summer and fall 2016, Hou allegedly copied and removed thousands of files containing DuPont’s proprietary information, including formulas, data, and customer information related to flexographic printing plate technology. He also allegedly took photographs in restricted areas of plant equipment and layouts used to manufacture DuPont’s products.
After allegedly stealing DuPont’s trade secrets, Hou announced his intention to retire from the company by the end of 2016. At some point in 2016, he formed a consulting business intended to provide consulting services to the manufacturing industry. Hou admitted to DuPont officials he secretly copied the files from his DuPont work computer and then uploaded those files onto a personal computer at his residence in order to assist him with his consulting business.
A forensic review of Hou’s personal computer revealed that it contained more than 20,000 stolen DuPont files related to the company’s flexographic printing plate technology. Some of the stolen files include information that DuPont considers trade secrets developed by its employees over the course of the past 40 years and which are critical to its technical, economic, and business operations.
The theft of trade secrets charge carries a maximum potential penalty of up to 10 years in prison and a fine of up to $250,000 or twice the gross pecuniary gain or loss.
Acting U.S. Attorney Fitzpatrick credited special agents with the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to the arrest. He also thanked security officials in the DuPont corporation for their cooperation in the investigation.
The government is represented by Assistant U.S. Attorneys James M. Donnelly of the U.S. Attorney’s Office National Security Unit and L. Judson Welle, coordinator of the Computer Hacking and Intellectual Property Unit, in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Michael ‘The Situation’ Sorrentino and His Brother, Marc Sorrentino, Indicted on Additional Charges Including Tax Evasion, Structuring and Falsifying RecordsRead the Press Release
Television personality Michael “The Situation” Sorrentino and his brother, Marc Sorrentino, were indicted today on additional charges including tax evasion, structuring and falsifying records, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney William E. Fitzpatrick for the District of New Jersey announced.
In September 2014, the Sorrentino brothers were indicted for tax offenses and conspiring to defraud the United States. The superseding indictment returned today includes new charges against both men. Michael is now also charged with tax evasion and structuring funds to evade currency transaction reports and Marc is now also charged with falsifying records to obstruct a grand jury investigation. An arraignment on the superseding indictment is scheduled on April 17 at 11:30 a.m. before U.S. District Court Judge Susan D. Wigenton in Newark, New Jersey.
According to the superseding indictment, Michael was a reality television personality who gained fame on the television show “The Jersey Shore,” which first appeared on the MTV network. Michael and his brother Marc created businesses, such as MPS Entertainment LLC and Situation Nation Inc., to exploit Michael’s celebrity status. The superseding indictment alleges that the brothers conspired to defraud the United States by not paying all federal income tax owed on approximately $8.9 million that Michael earned between 2010 and 2012. It is alleged that the brothers filed or caused to be filed with the Internal Revenue Service (IRS) false tax returns that understated gross receipts, claimed fraudulent business deductions, disguised income payments made to the brothers and to others and underreported net business income. As part of the conspiracy, the brothers also allegedly commingled funds among business and personal bank accounts and used the money from the business bank accounts to pay for personal items, such as high-end luxury vehicles and clothing.
The superseding indictment further alleges that Michael evaded his 2011 income taxes – failing to file a personal return, filing a false corporate return for Situation Nation and concealing his cash income.
The superseding indictment also charges that Michael made multiple cash deposits on the same day in amounts less than $10,000, into different bank accounts that he controlled, in an effort to evade the banks’ reporting requirements – banks are required to file reports with the U.S. Treasury for cash deposits exceeding $10,000. These reports include the identity of the person who conducted the transaction and the individual or organization for whom the transaction was completed.
The superseding indictment also alleges that after being served with Grand Jury subpoenas seeking books and records of MPS and Situation Nation, but prior to producing the books and records to the Grand Jury, Marc falsified them by altering and reclassifying taxable payments to himself as non-taxable payments and as legitimate business deductions.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
If convicted, the Sorrentino brothers face a statutory maximum sentence of five years in prison on the conspiracy count and three years in prison for each count of aiding in the preparation of false tax returns. Michael faces a statutory maximum sentence of 10 years in prison for each structuring count and five years in prison for the tax evasion count. Marc faces a statutory maximum sentence of 20 years in prison for obstruction. They also face a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney William E. Fitzpatrick thanked special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Jonathan W. Romankow and Trial Attorneys Yael T. Epstein and Jeffrey Bender of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Michael ‘The Situation’ Sorrentino and His Brother, Marc Sorrentino, Indicted on Additional ChargesRead the Press Release
Tax Evasion, Structuring and Falsifying Records
NEWARK, N.J. – Television personality Michael “The Situation” Sorrentino and his brother, Marc Sorrentino, were indicted today on additional charges including tax evasion, structuring and falsifying records, Acting U.S. Attorney William E. Fitzpatrick for the District of New Jersey and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced.
In September 2014, the Sorrentino brothers were indicted for tax offenses and conspiring to defraud the United States. The superseding indictment returned today includes new charges against both men. Michael is now also charged with tax evasion and structuring funds to evade currency transaction reports and Marc is now also charged with falsifying records to obstruct a grand jury investigation. An arraignment on the superseding indictment is scheduled for April 17, 2017, before U.S. District Court Judge Susan D. Wigenton in Newark federal court.
According to the superseding indictment:
Michael was a reality television personality who gained fame on the television show “The Jersey Shore,” which first appeared on the MTV network. Michael and his brother Marc created businesses, such as MPS Entertainment LLC and Situation Nation Inc., to exploit Michael’s celebrity status. The superseding indictment alleges that the brothers conspired to defraud the United States by not paying all federal income tax owed on approximately $8.9 million that Michael earned between 2010 and 2012. The brothers allegedly filed or caused to be filed with the IRS false tax returns that understated gross receipts, claimed fraudulent business deductions, disguised income payments made to the brothers and to others and underreported net business income. The brothers also allegedly commingled funds among business and personal bank accounts and used the money from the business bank accounts to pay for personal items, such as high-end luxury vehicles and clothing.
The superseding indictment alleges that Michael evaded his 2011 income taxes – failing to file a personal return, filing a false corporate return for Situation Nation and concealing his cash income.
The superseding indictment also charges that Michael made multiple cash deposits on the same day in amounts less than $10,000, into different bank accounts that he controlled, in an effort to evade the banks’ reporting requirements – banks are required to file reports with the U.S. Treasury for cash deposits exceeding $10,000. These reports include the identity of the person who conducted the transaction and the individual or organization for whom the transaction was completed.
The superseding indictment also alleges that after being served with Grand Jury subpoenas seeking books and records of MPS and Situation Nation, but prior to producing the books and records to the Grand Jury, Marc falsified them by altering and reclassifying taxable payments to himself as non-taxable payments and as legitimate business deductions.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
If convicted, the Sorrentino brothers face a statutory maximum sentence of five years in prison on the conspiracy count and three years in prison for each count of aiding in the preparation of false tax returns. Michael faces a statutory maximum sentence of 10 years in prison for each structuring count and five years in prison for the tax evasion count. Marc faces a statutory maximum sentence of 20 years in prison for obstruction. They also face a period of supervised release, restitution and monetary penalties.
Acting U.S. Attorney William E. Fitzpatrick and Acting Deputy Assistant Attorney General Goldberg credited special agents of IRS–Criminal Investigation with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Jonathan W. Romankow and Trial Attorneys Yael T. Epstein and Jeffrey Bender of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Defense counsel:
Michael Sorrentino: Henry E. Klingeman Esq., Newark
Marc Sorrentino: Michael D’Alessio Esq., West Orange, New Jersey
Mexican National Indicted for Illegal Re-EntryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that JOSE MANUEL MAZON DE-DIOS (“MAZON”), age 32, of Mexico, was charged today in a one-count Indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
According to the indictment, MAZON reentered the United States after he was previously deported on April 5, 2013. If convicted, MAZON faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
Acting U. S. Attorney Evans reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Memphis Man Sentenced to 262 Months in Prison for Armed RobberyRead the Press Release
Memphis, TN – A Memphis man has been sentenced to 262 months in federal prison for committing an armed robbery affecting interstate commerce. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentencing today.
According to information presented in court, on the morning of June 13, 2016, Patrick Owens, 48, of Memphis, Tennessee, entered the Bartlett Prescription Shop at 5675 Stage Road, brandishing a firearm. He went behind the pharmacy counter where three employees were working, demanded the employees open the vault containing prescription medication and took several hundred prescription pills of various types. Owens then threatened an employee with the firearm and took her car keys to aid in his escape, forcing the employees into the restroom at the back of the store at gunpoint.
Surveillance video shows Owens entered the employee’s vehicle but did not leave the parking lot. While sitting in the vehicle, a Bartlett Police Officer entered the store. Owens then exited the vehicle and ran into the woods.
Owens was caught near the scene moments later,wearing the same outfit as the individual seen in the surveillance video from the pharmacy. Police also found a bag of pills, an Arminius .38 caliber revolver, a red hat, a surgical mask, and gloves near the scene and near where Owens was found. He was arrested and taken in for questioning. Four days after his arrest, Owens confessed to the robbery of the Bartlett Prescription Shop.
In January 2016, Owens pleaded guilty before U.S. District Judge John T. Fowlkes to one count of robbery affecting interstate commerce and one count of use of a firearm during a crime of violence.
On Thursday, April 6, 2017, Judge Fowlkes sentenced Owens to 262 months in federal prison.
The case was investigated by the Bartlett Police Department and by detectives from the Memphis Police Department’s Safe Streets Task Force. Assistant U.S. Attorney Elizabeth Rogers prosecuted this case on the government’s behalf.
Maritime Instructor Pleads Guilty to Conspiracy to Commit Wire Fraud and Wire FraudRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MAURICE GEORGE, age 45, of Napoleonville, pled guilty yesterday to one count of Conspiracy to Commit Wire Fraud.
According to court documents, GEORGE was employed by Beier Radio, L.L.C., located in Louisiana, which manufactured maritime electronics products including Dynamic Positioning Systems (“DPS”). DPS is a maritime vessel computer system that automatically maintains a vessel’s position and heading by using position reference sensors and the vessel’s propellers and thrusters. Beier operated a DPS training center in Gray, Louisiana under the name “The Marine Training Institute.” Beier’s Marine Training Institute provided technical and operational training courses for Beier DPS customers. In 2007, GEORGE began working as an instructor for Beier Radio’s Marine Training Institute and taught DPS courses at Beier’s Louisiana classroom facility. Typically, Beier charged tuition in the amount of $2,000 to $2,500 for their DPS courses.
Between 2007 and 2013, GEORGE devised a scheme to embezzle approximately $334,892 from Beier Radio. On approximately 225 occasions, GEORGE negotiated monetary payments of approximately $1,200 to $2,000 with “students,” which he kept for himself, in exchange for endorsing and certifying their log books and for issuing DPS certificates of training from Beier Radio. In order to conceal his activities, GEORGE failed to create invoices for his illegal transactions and failed to have DPS students complete registration materials
GEORGE instructed DPS students to pay him directly by check made payable to “MAURICE GEORGE.” GEORGE also forged the signatures of various employees of Beier Radio on the DPS training certificates. The Indictment alleges that GEORGE deposited the illegal payments into his personal checking account with ASI Federal Credit Union. It is important to note that the investigation determined the overwhelming majority of GEORGE’s students did actually attend the DPS courses.
GEORGE faces a maximum penalty of five years imprisonment, followed by up to three years of supervised release, and a $250,000 fine. U.S. District Judge Eldon E. Fallon set sentencing on July 20, 2017.
Acting U.S. Attorney Evans praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations (“HSI”), as well as the U.S. Coast Guard Investigative Service who assisted HSI in this investigation. Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.
Madera Man Convicted for Tax EvasionRead the Press Release
FRESNO, Calif. — Today, after a four-day trial, a federal jury found Jeffrey G. Vincent, 66, of Madera, guilty of five counts of evading income taxes, United States Attorney Phillip A. Talbert announced.
According to evidence presented at trial, since 1991, Vincent operated a Fresno-based engineering company called Veco Technologies, organized as Stafford Group Limited Partnership, for which Vincent was general partner. Vincent has not filed an individual income tax return since 1989, despite earning significant income from Stafford Group, including close to $500,000 between 2007 and 2010. Two federal tax liens were filed on Vincent’s assets in 1993 and 2000 when he failed to pay assessments made for tax delinquencies in earlier years. Vincent signed tax returns for Stafford Group in which he falsely represented that he does not have a social security number. Vincent also funneled his income through various trusts and other entities.
“Today’s guilty verdict of Mr. Vincent sends a clear message to those who claim that there is no legal requirement to pay federal income taxes. All taxpayers are required to follow the law and the law requires accurate reporting and timely payment of any tax due and owing,” said Michael T. Batdorf, Special Agent in Charge IRS Criminal Investigation.
This case is the product of an investigation by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys Christopher D. Baker and Kirk E. Sherriff are prosecuting the case.
Vincent was remanded into custody following the announcement of the verdict. He is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on July 24, 2017. Vincent faces a maximum statutory penalty of 25 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Lynchburg Man Sentenced on Bankruptcy Fraud ChargeRead the Press Release
Lynchburg, VIRGINIA – A Lynchburg man, who previously pled guilty to a federal bankruptcy fraud charge, was sentenced today in the United States District Court for the Western District of Virginia in Lynchburg, Acting United States Attorney Rick A. Mountcastle announced.
Randall K. Falwell, 56, of Lynchburg, previously pled guilty to one count of bankruptcy fraud. Today in District Court, Falwell was sentenced to three months in prison, followed by a two-year term of supervised release. In addition, the Court ordered Falwell to pay a fine of $10,000 and to pay more than $17,000 in restitution to the bankruptcy estate as compensation for harm caused by his fraudulent conduct.
According to evidence presented at previous hearings by Special Assistant United States Attorney Kari Munro, Falwell knowingly and fraudulently made false statements under oath in two separate bankruptcy proceedings. Specifically, Falwell claimed that he owned partial interests in real property without disclosing to the bankruptcy trustee that he had sold the properties some months earlier.
The investigation of the case was conducted by United States Trustee’s Office. Assistant United States Attorney Jennie L. M. Waering and Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
Logansport man pleads guilty to selling methamphetamine, kidnapping conspiracyRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Logansport man pleaded guilty Thursday to distributing methamphetamine in Many, La., and kidnapping a victim in east Texas.
Christopher L. Douglas, 36, of Logansport, La., pleaded guilty before U.S. District Judge Elizabeth E. Foote to one count of distribution of methamphetamine and one count of conspiracy to commit kidnapping. According to the guilty pleas, law enforcement agents recorded Douglas selling 2 ounces of methamphetamine on April 26, 2016 for $2,000 in Many. In addition, he pleaded guilty to a kidnapping conspiracy charge from the Eastern District of Texas, in which he participated with others to kidnap the victim, demand ransom, and ultimately attempted to kill the victim, all arising out of related drug trafficking.
Douglas faces five to 40 years in prison for the drug charge and up to life in prison for the kidnapping charge. He also faces not less than four years of supervised release and up to a $5 million fine. The court set a sentencing date of August 25, 2017.
The FBI, ATF-Tyler Texas, Sabine Parish Sheriff’s Office, DeSoto Parish Sheriff’s Office, Carthage Police Department and Longview Police Department conducted the investigations. Assistant U.S. Attorney James G. Cowles Jr. is prosecuting the case for the Western District of Louisiana, and Assistant U.S. Attorney Paul Hable is prosecuting the case for the Eastern District of Texas.
Local Firearms Dealer Convicted for Possessing Unregistered Destructive DeviceRead the Press Release
G.F. Peterman, III, United States Attorney for the Middle District of Georgia, announces that Mark Mann, owner and operator of Mann’s World, LLC d/b/a The Rifleman, was convicted by a jury in federal court on April 6, 2017, of illegal possession of a destructive device, a Finnish Lahti 20mm anti-tank rifle, before the Honorable Marc T. Treadwell, United States District Judge, in Macon, Georgia.
The evidence showed that Mark Mann was the owner and operator of Mann’s World, LLC d/b/a The Rifleman, a local gun dealership. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) received a referral from the previous owner of the anti-tank rifle that Mark Mann illegally possessed the weapon after two checks from Mann’s business account, issued to purchase the weapon, were returned for insufficient funds. A resulting search pursuant to a warrant of Mann’s World, LLC on December 30, 2014, resulted in the discovery and seizure of the gun. Weapons such as machine guns, sawed off shotguns, or weapons of larger than fifty caliber cannot be legally possessed unless the possessor registers them with the ATF. Upon checking records, it was found that this destructive device, being a weapon of larger than fifty caliber, was not registered to Mr. Mann, who had used his status as a firearms dealer in order to circumvent this law.
Mr. Mann will be sentenced in approximately 60 days. He faces a maximum penalty of ten (10) years’ imprisonment, a $250,000 fine, or both.
"A Federal Firearms Licensee, such as Mark Mann, is someone who is trusted to know and follow the law regarding firearms, especially when dealing with dangerous instrumentalities such as this weapon, an anti-tank rifle, which is far more powerful and capable of far more destruction than weapons available to the general public. Mr. Mann chose to violate that trust and now must bear the responsibility for that choice,” said United States Attorney Peterman.
“The ATF’s involvement in securing this guilty verdict is a prime example of the successful use of federal laws to confront, engage and eliminate criminal activity. Criminals must understand there are serious repercussions for those who violate federal law, and that regulatory enforcement and law enforcement personnel will contribute all necessary time and effort to ensure that these individuals are brought to justice,” said ATF Assistant Special Agent in Charge John Schmidt.
This case was investigated by the Industry Operations Investigators and the Criminal Enforcement Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorneys Kimberly S. Easterling and Michael T. Solis prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, United States Attorney’s Office, at (478) 752-3511.
Lake Charles woman sentenced to 12 months in prison for purchasing stolen equipmentRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Lake Charles woman was sentenced Thursday to a year and a day in prison for buying stolen equipment from Texas.
Katherine P. LaRocca, 53, of Lake Charles, La., was sentenced by U.S. District Judge Dee D. Drell on three counts of sale and receipt of a stolen vehicle. The court also sentenced her to two years of supervised release and ordered her to pay a $20,000 fine. According to the January 25, 2017 guilty plea, two men stole three pieces of equipment in Texas between December 2010 and October 2011. They transported the equipment to LaRocca in Calcasieu Parish, and she bought them knowing they were stolen. The stolen equipment was a John Deer mower, a CASE Skidster front-end loader and a Kubota KX 61 Mini-Excavator with a value of between $95,000 and $150,000.
The Louisiana State Police conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger prosecuted the case.
Justice Department Honors Contributions to Crime Victims' Rights and ServicesRead the Press Release
The Department of Justice today recognized 12 individuals and teams for their exceptional service to crime victims and innovative work to support victims’ rights. The award recipients were honored during the annual National Crime Victims’ Service Awards Ceremony.
“During this year’s National Crime Victims’ Rights Week, the Department of Justice is proud to pay tribute to the outstanding contributions of the people and groups helping crime victims, reducing crime and improving public safety,” said Acting Associate Attorney General Jesse Panuccio. “We are inspired by their lives, and we are honored to stand with them.”
The awardees were selected from public nominations in nine categories, including federal service, special courage, public policy and victim services. The Office for Victims of Crime, a component of the Department’s Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week. President Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, calling for greater sensitivity to the rights and needs of victims. This year’s observance takes place April 2-8 and features the theme Strength. Resilience. Justice.
“These remarkable individuals and teams demonstrate the tremendous difference a small group of dedicated, inspired and courageous people can make in the lives of victims,” said Acting Assistant Attorney General Alan R. Hanson for the Office of Justice Programs. “The Department of Justice is proud to honor them and build on their good work through the Department’s Office of Victims of Crime.”
Following is a list of the award recipients:
- The National Crime Victim Service Award honors extraordinary efforts to provide direct services to crime victims.
Recipient: The Harry and Jeanette Weinberg Center for Elder Abuse Prevention, Riverdale, New York
- The Crime Victims’ Rights Award recognizes those whose efforts to advance or enforce victims’ rights benefit victims at the state, tribal or national level.
Recipient: Office of Victim Services Agency Support Team, Office of the Arizona Attorney General, Phoenix, Arizona
- The Allied Professional Award recognizes individuals working outside the victim assistance field for their service to victims.
Recipient: Captain Michael Holt, Jackson Police Department, Jackson, Tennessee
- The Award for Professional Innovation in Victim Services recognizes a program, organization or individual who expands the reach of victims’ rights and services.
Recipient: Healing Hurt People, Philadelphia, Pennsylvania
- The Ronald Wilson Reagan Public Policy Award honors leadership, innovation and vision that lead to noteworthy changes in public policy on behalf of crime victims.
Recipient: Kendall L. Carver, Phoenix, Arizona
Recipient: Diane Moyer, Esq., Harrisburg, Pennsylvania
Recipient: The late Teresa P. Scalzo, Alexandria, Virginia
- The Volunteer for Victims Award recognizes individuals who serve victims without compensation.
Recipient: BastaYaPR, Inc., Guaynabo, Puerto Rico
Recipient: Linda D. Axley, Tahlequah, Oklahoma
- The Federal Service Award recognizes federal agency personnel for service to victims of federal, tribal or military crimes.
Recipient: The Blackwater Victim Services Team, Washington, D.C.
- The Tomorrow’s Leaders Award recognizes youth up to 24 years old for efforts to support crime victims.
Recipient: Maya Weinstein, Washington, D.C.
- The Special Courage Award honors extraordinary bravery in the aftermath of a crime or a courageous act on behalf of a victim or potential victim.
Recipient: Laura L. Dunn, Esq., Washington, D.C.
The Office of Justice Programs, headed by Acting Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP and its components can be found at www.ojp.gov.
Judge Sentences Pittsburgh Felon with Gun to 15 Years in Federal PrisonRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 15 years imprisonment followed by 5 years supervised release on his conviction of violating federal firearms laws, Acting United States Attorney Soo C. Song announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Clifford Wood, 30, of Pittsburgh, Pennsylvania.
According to information presented to the court, on February 18, 2016, a West Homestead police officer on patrol near the High Rollers Bar in Homestead, PA, observed Clifford Wood, who was previously convicted of felony drug offenses, carrying, and shooting, what appeared to be a firearm. The officer demanded that Wood drop his gun. Wood refused, and started to flee, dropping the firearm during his flight. Wood was arrested shortly thereafter, and the firearm, a Ruger Security Six .357 revolver, was recovered in the place where the officer had seen Wood discard it.
Assistant United States Attorneys Katherine A. King and Stephen S. Gilson prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Federal Bureau of Investigation, the West Homestead Police Department, and the Homestead Police Department for the investigation leading to the successful prosecution of Wood.
Jeffrey Lavone Shaw Arrested Following Indictment on Federal Drug Conspiracy ChargeRead the Press Release
Acting United States Attorney Steve Butler of the Southern District of Alabama announces today that Jeffrey Lavone Shaw of Fairhope was arrested on charges returned by a federal grand Jury in February 2017. The charges include Conspiracy to Possess with Intent to Distribute Cocaine and Use of a Cellphone in furtherance of the drug activity in violation of Title 21, United States Code Sections 846 and 843(b). The statutory maximum penalty provided by law on the conspiracy charge in this case is 20 years imprisonment.
This case arose from a long-term investigation in the Daphne/Fairhope area conducted by the Federal Bureau of Investigation’s Safe Street Task Force. This investigation has previously resulted in the indictment of six (6) other defendants on drug conspiracy charges, all of whom have entered guilty pleas in federal court.
FBI Special Agent in Charge, Robert Lasky stated, "Today's arrest is a direct result of the continued cooperation between the FBI Safe Street Task Force and our state and local partners."
Acting U.S. Attorney Steve Butler stated, “The goal of law enforcement, be it federal, state or local, is to make our communities safer for all citizens. The FBI’s Safe Street Task Force and all its members work diligently to accomplish this mission.”
As in all criminal cases, the Indictment returned by the Grand Jury is only a charge and the Defendant is presumed innocent.
The case will be prosecuted by the United States Attorney’s Office for the Southern District of Alabama.Hermosa Beach Couple Found Guilty in Tax Scam and Passing Fraudulent Financial Instruments to Pay Off DebtsRead the Press Release
LOS ANGELES – A federal jury this afternoon convicted a Hermosa Beach couple of a host of charges related to their participation in a scheme that filed fraudulent tax returns with the Internal Revenue Service seeking millions of dollars in refunds and used bogus financial instruments as a way to pay off debt.
Sean David Morton, 58, and his wife, Melissa Ann Morton, 50, each were convicted of one count of conspiracy to defraud the United States, two counts each of filing false claims against the United States, and various counts of passing false or fictitious financial instruments (specifically, 26 counts against Sean Morton, and 25 counts against Melissa Morton).
On the fourth day of trial, the jury heard closing arguments and deliberated for approximately two hours before issuing the guilty verdicts.
The charges against the Mortons stem from their participation in a “redemption” scheme, which is the most common scheme used across the nation by tax defiers and “sovereign citizens.” Proponents of this scheme falsely claim that the United States government controls bank accounts – often referred to as “U.S. Treasury Direct Accounts” – for U.S. citizens that can be accessed by submitting paperwork with state and federal authorities. Individuals promoting this scam frequently cite various discredited legal theories and may refer to the scheme as “Redemption” or “Strawman.” This scheme, which repeatedly has been rejected by courts, predominately uses fraudulent financial documents that appear to be legitimate.
“These defendants orchestrated a scheme that used bogus ‘legal’ filings that sought to abuse the tax system and defraud the IRS out of millions of dollars,” said Acting United States Attorney Sandra R. Brown. “These fraudulent schemes are designed to do only one thing – victimize others for profit.”
“Sean and Melissa Morton made multiple attempts to defraud the IRS and the taxpaying public,” stated Special Agent in Charge R. Damon Rowe for IRS Criminal Investigation. “Today’s verdict reinforces our commitment to every American taxpayer to identify and prosecute those individuals who devise illegal tax schemes to obtain refunds to which they are not entitled.”
The evidence presented at trial showed that the Mortons filed income tax returns with the Internal Revenue Service that falsely claimed they had income from various banking institutions reported on Forms 1099-OID. As part of the scheme, the Mortons falsely reported large withholdings and claimed they were owed refunds from the IRS.
As a result, the IRS erroneously issued a refund of $480,323 to Sean Morton for a 2008 income tax return. On the same day the refund was deposited into the Mortons’ joint bank account, the couple took immediate steps to conceal the money, which included opening two new accounts, transferring over $360,000 to the two new accounts, and withdrawing $70,000 in cash.
When the IRS took steps to collect the erroneous refund, the Mortons began a campaign to thwart the government’s collection efforts. Specifically, when the IRS placed a levy on the couple’s joint bank account, Melissa Morton repeatedly sent letters to the IRS that falsely claimed it was her sole and separate account.
When the IRS attempted to collect the erroneous refund from the Mortons, the Mortons presented to the IRS various “coupons” and “bonds” that purported to pay off their debt with the IRS. The Mortons created and submitted these bogus documents to the IRS, instructing the agency to draw upon funds with the United States Treasury to satisfy their debt.
The Mortons also sold the bond scheme to others who were in debt to governmental organizations, such as the IRS and the State of California, and private bank institutions for mortgage or credit card debt. The Mortons charged their clients thousands of dollars to prepare and file useless UCC-1 documents declaring their clients’ “strawman” status, and to prepare and send false bonds to the government or banks which purported to pay off the clients’ debt.
The Mortons are scheduled to be sentenced by United States District Judge Stephen V. Wilson on June 19. As a result of today’s guilty verdicts, Sean Morton faces a statutory maximum sentence of 650 years in federal prison, and Melissa Morton could be sentenced to as much as 625 years.
The investigation into the Mortons was conducted by IRS Criminal Investigation. The case is being prosecuted by Assistant United States Attorneys Valerie Makarewicz and James C. Hughes of the Tax Division.
Henderson Man Sentenced for Possession of a Firearm by a FelonRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court on April 5, 2017, United States District Judge Louise W. Flanagan sentenced WILLIAM LACHLIAN ORMOND, III, 29, of Henderson, NC to 57 months of imprisonment followed by 3 years of supervised release.
ORMOND was named in an Indictment filed on March 22, 2016 and charged with Possession of a Firearm by a Felon. On June 16, 2016, ORMOND pled guilty to that charge.
On October 29, 2015, an officer with the Henderson Police Department in Henderson encountered ORMOND walking down the street, and knew him to have outstanding warrants for his arrest. The officer suspected that ORMOND was armed due to the way he was holding his waistband, and attempted to engage ORMOND in conversation. ORMOND attempted to flee on foot and was captured by the officer. Upon taking the defendant into custody, the officer located a 9mm handgun with a large capacity magazine on the defendant. The handgun was loaded with 22 rounds of ammunition.
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 Henderson Police Department, North Carolina Alcohol Law Enforcement, North Carolina State Crime Lab, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the criminal investigation of this case. Assistant United States Attorney S. Katherine Burnette handled the prosecution of this case and Assistant United States Attorney Peggah Wilson handled the sentencing hearing.
Hammond Man Sentenced to 70 Months ImprisonmentRead the Press Release
HAMMOND- Acting United States Attorney Clifford D. Johnson announced that Leroy Robinson, 39, of Hammond, Indiana was sentenced before Judge Rudy Lozano for being a felon in possession of a firearm.
Robinson was sentenced to 70 months imprisonment and 1 year supervised release.
According to documents in this case, Robinson possessed two firearms, one of which had an obliterated serial number, on July 28, 2016 after being convicted in an Armed Robbery Case in Cook County, Illinois.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives in cooperation with the Hammond Police Department. The case was handled by Assistant United States Attorney Thomas M. McGrath.
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Fugitive Sought in $1.5 Million Quincy Real Estate Scheme Arrested in FloridaRead the Press Release
BOSTON – A man accused of a fraudulent $1.5 million real estate investment scheme in Quincy, Mass., and who had been a fugitive for 20 years in connection with an unrelated New York grand theft and larceny indictment, was arrested today in Delray Beach, Fla., on federal charges in connection with the Quincy scheme.
Scott J. Wolas, 67, who, according to court documents, also used the names Eugene J. Grathwohl, Allen L. Hengst, Drew Prescott, Frank Amolsch, Endicott Asquith, and Cameron Sturge, was charged by criminal complaint with wire fraud and aggravated identity theft in connection with the proposed development of the former Beachcomber Bar property and the adjoining lot in Quincy. He appeared in the U.S. District Court in the Southern District of Florida (West Palm Beach Division) at 10:00 a.m. on Friday, April 7, 2017, for his initial appearance. Wolas is expected to return to Massachusetts at a later date to appear in federal court in Boston.
According to court documents, from at least 2009 through 2016, Wolas, using the name Eugene Grathwohl, operated a real estate business known as Increasing Fortune, Inc. and worked as a licensed real estate agent for Century 21 in Quincy. From 2014 through 2016, he solicited investments for the development of the Beachcomber Bar property located at 797 Quincy Shore Drive and for the construction of a single-family home on the adjacent property. He collected more than $1.5 million from at least 19 investors and promised each of them a significant return on their investments. He allegedly promised to pay out at least 125% of the profits related to the single-family home construction.
Wolas was scheduled to close on the Beachcomber property on Sept. 15, 2016. A week before, however, he left Quincy and ceased all contact with his then-girlfriend, his co-workers, and his investors. Law enforcement then discovered that Grathwohl was actually Wolas, a former lawyer who had been a fugitive since 1997 after being charged with fraud and grand larceny in New York. The real Eugene Grathwohl resides in Florida and is a friend of Wolas’ ex-wife.
The court documents also indicate that the bank account into which Wolas deposited investor funds has been drained, and that Wolas used the money mostly for his personal expenses unrelated to development of the real estate projects.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss. Aggravated identity theft carries a minimum term of two years’ imprisonment, which must be served consecutively to any term for the wire fraud, one year of supervised release and a fine of up to $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the US sentencing guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Quincy Police Chief Paul Keenan made the announcement today. Assistant U.S. Attorney Sandra S. Bower of Weinreb’s Economic Crimes Unit is prosecuting the case.
Four Members of Baltimore Drug Distribution Conspiracy Plead GuiltyRead the Press Release
Baltimore, Maryland – Four Baltimore men, all members of a Baltimore drug trafficking conspiracy pleaded guilty this week to conspiring to distribute crack cocaine. Tarik Brooks, age 41, pleaded guilty today; Jermaine Epps, age 42, pleaded guilty on April 4, 2017, and Terry Downs, age 24, and Theodore Smith, age 41, pleaded guilty on April 3, 2017.
After their guilty pleas, U.S. District Judge James K. Bredar sentenced Epps and Downs to 108 months in prison, and 60 months in prison, respectively, each followed by four years of supervised release. Brooks was sentenced to 151 months in prison, followed by five years of supervised release.
The guilty pleas and sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Commissioner Kevin Davis of the Baltimore Police Department; and Chief Terrence B. Sheridan of the Baltimore County Police Department.
According to their plea agreements, the defendants were part of a drug distribution conspiracy that operated an open-air drug market near the 600 block of Glenwood Avenue in the Woodbourne-McCabe neighborhood in Baltimore. Members of the conspiracy distributed the organization’s signature orange-top vials of crack cocaine in that location, as well as other locations in Baltimore. Members of the conspiracy purchased powder cocaine, which they converted to crack cocaine. Some members of the conspiracy also sold large quantities of heroin. The conspirators used residences in and around North Baltimore as stash houses to cut, package and store these narcotics. Some members of the conspiracy routinely carried firearms and committed acts of violence in furtherance of the organization’s activities.
Epps and Downs were street lieutenants of the organization’s open-air drug market, and oversaw the sale of crack cocaine to customers. Smith was in charge of overseeing and managing the distribution of crack cocaine at the street shop, collecting proceeds from sales, making sure the organization had a sufficient supply of cocaine, and cooking powder cocaine into crack. On April 28, 2016, Downs was overheard by law enforcement requesting more “shirts” from a co-defendant, which is code for packages of orange-top vials of crack cocaine. Downs and the co-defendant were then recorded by law enforcement meeting outside a nearby stash house where they exchanged a bag containing crack cocaine. On June 1, 2016, an undercover officer approached Epps to purchase 12 vials of crack cocaine. Epps arranged for the undercover officer to purchase the crack cocaine from a lower level street hitter, who Epps supervised.
Brooks was in charge of packaging orange-top vials of crack cocaine for the organization, which were then distributed to street lieutenants who oversaw the street shop and open-air drug market. Law enforcement intercepted text messages in which Brooks discussed the number of vials of crack cocaine that were ready to be distributed. In addition, law enforcement intercepted text messages Smith exchanged with another conspirator discussing purchasing cocaine for the organization for $38,000 per kilogram.
On June 16, 2016, law enforcement seized over 1,100 orange-top vials of crack cocaine from a stash house on Craig Avenue that was used by the organization. On September 1, 2016 law enforcement seized narcotics from another stash house on Reese Street, including 130 grams of raw heroin, 15 grams of crack cocaine, 36 grams of diluted heroin, and 20 orange-top vials of crack cocaine. That same day, law enforcement seized 230 grams of heroin from a bar operated by Smith and used by the organization to conduct drug trafficking operations. Also on September 1, 2016, law enforcement seized a loaded .40 caliber handgun from Epps’ residence that was purchased by, and registered to, Epps’ girlfriend.
Co-defendant Asante Leroy Marshall, age 23, of Baltimore, previously pleaded guilty and was sentenced to 50 months in prison.
Judge Bredar has scheduled sentencing for Smith on August 15, 2017 at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Derek E. Hines and Leo J. Wise, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Former U.S. Postmaster Sentenced to Prison for Role in Cocaine ConspiracyRead the Press Release
PITTSBURGH - A former United States postmaster and resident of Glassport, Pennsylvania, has been sentenced in federal court to four years imprisonment and five years supervised release on his conviction of conspiracy to distribute kilograms of cocaine, Acting United States Attorney Soo C. Song announced today.
United States District Judge Arthur Schwab imposed the sentence on Joseph Borrelli, age 49, of Glassport, Pennsylvania.
According to information presented to the court, between 2011 and 2015, Dante Lozano of Brownsville, Texas shipped dozens of cocaine packages, totaling approximately 8 kilograms (about 18 pounds), via the U.S. Postal Service to Jeffrey Turner and April Racan, who were living in the Elizabeth/McKeesport, Pennsylvania area. Borrelli, who was Postmaster in West Newton, Pennsylvania at the time, aided the conspiracy by advising Turner how to minimize the chances of their drug packages being detected by law enforcement.
The addresses of vacant homes were provided to Turner by Borrelli, and Turner then emailed these to Lozano, so that the packages could bear valid addresses. Borrelli also opened an untraceable post office box for Turner, and intercepted drug packages when they arrived at the post office, delivering them to Turner. These packages were usually intercepted by Borrelli before they went out for delivery by the mail carrier.
Prior to imposing sentence, Judge Schwab stated that Borrelli abused his position of trust as postmaster to aid the drug conspiracy.
Eight individuals were named in this indictment. Three others were previously sentenced, and four defendants – including Lozano, Turner, and Racan – will be sentenced in April and June.
Assistant United States Attorney Gregory J. Nescott prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the United States Postal Service in Pittsburgh, the Drug Enforcement Administration in Brownsville, Texas, and the Pennsylvania State Police for the investigation leading to the successful prosecution of Borrelli.
Former Recruiters charged with False Invoicing SchemeRead the Press Release
ATLANTA –Dereck Cyrus and Chuck Sandford have been arraigned on conspiracy and mail fraud charges for running a false invoicing scheme that caused the restaurant chain Panda Express to send them over a million dollars in fraudulent payments.
“These defendants allegedly used a false invoicing scheme to line their own pockets,” said U. S. Attorney John Horn. “Businesses should carefully vet vendors that they do business with to make sure they do not fall victim to these schemes.”
“Corporate based fraud schemes do have victims and those victims feel its impact. The federal grand jury indictment and resulting arrests in this matter clearly illustrates the FBI’s commitment toward providing an avenue of relief to companies being targeted by these types of fraud schemes,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: Cyrus and Sandford both owned companies that provided recruitment services to corporations. Cyrus’s company was named “Diversified Recruiters,” and Sandford’s recruitment company was named “Chuck Sandford Consultants” (CSC). Cyrus also worked as an in-house recruiter for Panda Express in 2012 and early 2013.
Beginning in about January 2013, Cyrus and Sandford allegedly submitted fraudulent Diversified Recruiters and CSC invoices to the Panda Express accounts payable department that falsely claimed that they had found qualified job candidates for positions at Panda Express restaurants throughout the United States. In actuality, the vast majority of the job candidates were either fictitious or had never been recruited by Cyrus or Sandford. Based upon these misrepresentations, the accounts payable department issued payments to Diversified Recruiters and CSC, which Cyrus and Sandford used for their own personal benefit.
After Cyrus stopped working for Panda Express in March 2013, he allegedly continued to send fraudulent Diversified Recruiters and CSC invoices to the accounts payable department, falsely claiming he was still a company employee. Sandford also allegedly paid Cyrus a kickback after the accounts payable department issued payments for the fraudulent CSC invoices. All told, Cyrus and Sandford allegedly netted well over one million dollars during the course of this scheme.
Dereck Cyrus, 52, of Lithonia, Georgia, Chuck Sandford, 74, of Marietta, Georgia, were arraigned before U.S. Magistrate Judge Alan J. Baverman.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Thomas J. Krepp is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Employees of Louisville-Based Engineering and Construction Company Sentenced to Prison Terms for Defrauding the Company and the Social Security AdministrationRead the Press Release
Fraud totaled around $2 million over a 13-year period
LOUISVILLE, Ky. – Two former employees of a Louisville, Kentucky, based engineering and construction company were sentenced to prison terms this week, in United States District Court, by Chief Judge Joseph H. McKinley Jr., for their roles in a conspiracy to steal government funds and a scheme to defraud the company of approximately $2 million announced United States Attorney John E. Kuhn, Jr.
Frank Burks, Jr., 66, and Pamela Duvall, 60, both from New Albany, Indiana, were each sentenced to 36 months in prison, without the possibility of parole, and ordered to pay restitution to be determined at a later date, by Chief Judge McKinley, on April 3, 2017.
According to information presented in court, Burks and Duvall, while employed at RAM Engineering & Construction, Inc., schemed with one and other beginning in around 2001, to steal money from RAM to fund outside business ventures and personal gambling habits.
During the nearly 13-year period of criminal activity, Duvall was employed as a bookkeeper and Burks was employed as an operations manager for the privately owned company. One way they embezzled money from RAM was through general account checks. Duvall was responsible for issuing checks from the general account. As part of the scheme, Duvall issued checks, convinced one of the RAM owners to sign the checks under false pretenses, then made the checks payable to herself, Burks, or another person or entity whose endorsement Duvall or Burks would forge. Also, Burks and Duvall worked together to enable Burks to use his RAM corporate credit card to pay for Burks’ personal expenses.
In addition to their theft from RAM, Burks and Duvall conspired to ensure that Burks could earn income without it affecting his Social Security income by reporting a portion of his income from RAM as non-taxable. As such, Burks was overpaid by the Social Security Administration in the amount of $11,340.
On December 5, 2016, both Burks and Duvall pleaded guilty to conspiracy for theft of government funds, as well as charges of wire fraud and use of a forged security.
This case was prosecuted by Assistant United States Attorney Amanda Gregory and was investigated by the Federal Bureau of Investigation (FBI).
Former Credit Union Employee IndictedRead the Press Release
GALVESTON, Texas – Authorities have arrested the former manager of Electrical Workers 527 Federal Credit Union on charges of bank fraud, theft and misapplication, and making false statements in the books and records of a financial institution, announced Acting U.S. Attorney Abe Martinez.
A federal grand jury returned a sealed indictment against Susan Margaret Garza, 60, of Galveston, on March 23, 2017, which was unsealed today upon her arrest. She made her initial appearance today before U.S. Magistrate Judge John Froeschner. She is set for an arraignment hearing April 13, 2017.
The indictment alleges that from 2008 through May 23, 2013, Garza made unauthorized withdrawals from members’ accounts while employed at the credit union. She also allegedly made false entries in the books and records to conceal her unauthorized withdrawals, fraudulently issued checks on the credit union’s bank account and made unauthorized loans in the names of credit union members all for the use and benefit of the herself and others.
Each count of bank fraud, theft and misapplication, and false entry carries a maximum penalty of 30 years imprisonment and a fine up to $1 million.
The indictment also contains a notice of criminal forfeiture and seeks forfeiture of $466,675.32.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Former CUNY School of Professional Services Budget Director Charged with Embezzlement and FraudRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Catherine Leahy Scott, New York State Inspector General, and Brian M. Hickey, the Special Agent-in-Charge of the Northeast Regional Office of the U.S. Department of Education Office of Inspector General (“ED-OIG”), announced today that CARMINE MARINO, the former budget and finance director of City University of New York’s School of Professional Services (“CUNY SPS”) was arrested this morning and charged in Manhattan federal court with embezzling funds from CUNY SPS. MARINO voluntarily surrendered to federal authorities this morning and will be presented this afternoon in Manhattan federal court.
Acting U.S. Attorney Joon H. Kim said: “As alleged, the former budget and finance director at CUNY SPS abused his position of trust, taking money that belonged to New York City college students for his own benefit. I want to thank our partners at the New York State Inspector General and Department of Education Office of Inspector General for their work to root out corruption at federally assisted New York schools.”
New York State Inspector General Catherine Leahy Scott said: “This arrest involving federal fraud and embezzlement charges against a former top university official underscores CUNY’s lack of supervision and appropriate controls, which unfortunately has been a consistent theme in my investigation of the CUNY system. I thank Acting U.S. Attorney Kim for prosecuting the case, and I will continue to work with current CUNY leadership and use all of the resources of my office to restore the trust among the student and taxpayers at large and to protect the integrity of the institution.”
ED-OIG Special Agent-in-Charge Brian M. Hickey said: “Today’s charges allege that Mr. Marino knowingly and willfully abused his positions of trust for personal gain. That is completely unacceptable. OIG Special Agents will continue to aggressively pursue those who seek to enrich themselves at the expense of our nation’s students. America’s students, their families, and taxpayers deserve nothing less.”
According to the allegations contained in the Complaint[1] unsealed today in Manhattan federal court and publicly available documents:
CARMINE MARNIO was in charge of finance and fiscal operations at CUNY SPS between 2007 and 2012, first as its Manager of Fiscal Operations, and then as its Director of Fiscal and Business Operations. In those roles, he controlled and oversaw CUNY SPS’s finances and bank accounts. In two separate but similar schemes, MARINO used his power over CUNY SPS’s finances to set up unauthorized bank accounts in CUNY SPS’s name, and to fund those accounts with money from CUNY SPS’s tuition account, among others. MARINO then used those unauthorized accounts, which only he knew about, to embezzle tens of thousands of dollars for his personal use.
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MARINO, 43, of Los Angeles, California, is charged with one count of embezzlement and misappropriation from a program receiving federal funds, which carries a maximum penalty of 10 years in prison, and two counts of bank fraud, each of which carries a maximum penalty of 30 years in prison.
The maximum potential sentences in these cases are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Kim praised the investigative work of the New York State Inspector General’s Office, ED-OIG, and the Criminal Investigators of the United States Attorney’s Office for the Southern District of New York, and noted that the investigation is continuing.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorney Eli J. Mark is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitutes only allegations, and every fact described should be treated as an allegation.
Florida Woman Arrested on Charges of Forging Prescriptions While Working in the Pharmacy at Fort Rucker, AlabamaRead the Press Release
Montgomery, Ala. – Holly Jean Cox, 43, of Citrus Springs, Florida, was arrested in Florida on Wednesday after being indicted on seven counts of obtaining controlled substances by fraud or deception, announced Acting United States Attorney A. Clark Morris.
According to court documents, Cox worked as a pharmacy technician at the Lyster Army Health Clinic at Fort Rucker, Alabama. The allegations indicate that Cox accessed the post’s computer system and entered fraudulent prescriptions for controlled substances. Cox then filled those fraudulent prescriptions herself and pocketed the pills she obtained. The indictment alleges that Cox did this on at least seven different occasions between December 29, 2015 and March 4, 2016. She obtained primarily oxycodone and hydrocodone.
If convicted, Cox faces a maximum prison sentence of four years on each count.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt
This case was investigated by the Drug Enforcement Administration and the United States Army – Criminal Investigation Command. Assistant United States Attorney Jonathan S. Ross is prosecuting the case.
Federal Charges Filed Against Maryland State Senator for Accepting Payments in Exchange for Official ActionsRead the Press Release
Baltimore, Maryland – A federal criminal complaint was filed today charging Maryland State Senator Nathaniel Thomas Oaks, age 70, of Baltimore, Maryland, with honest services wire fraud for allegedly accepting illegal payments in exchange for using his official position or influence to benefit an individual on business-related matters. Oaks’ initial appearance is scheduled today at 4:00 p.m. before U.S. Magistrate Judge Mark J. Coulson in U.S. District Court in Baltimore, Maryland.
The criminal complaint was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the affidavit filed in support of the criminal complaint, Oaks was a Maryland State Delegate representing District 41 (Baltimore City) from 1994 until being appointed to the Maryland Senate in February 2017, representing the same District.
The affidavit alleges that on September 21, 2015, a cooperating individual (the Cooperator) introduced Oaks to an FBI confidential human source (the CHS) who portrayed himself as an out-of-town businessperson interested in obtaining contracts in the City of Baltimore through a minority-owned business (the Company). The Company is a real business that is operated by a different cooperating defendant who is assisting the FBI with the investigation. The meeting took place at a restaurant in Pikesville, Maryland, and was consensually recorded by the Cooperator and the CHS. During the meeting, Oaks offered to assist the CHS with business development in Maryland.
During the months following the September 21, 2015 meeting between the CHS and Oaks, the CHS consensually recorded numerous telephone and in-person conversations with Oaks during which they discussed possible development and business-related opportunities that may be available to the CHS in Maryland. One such opportunity was a United States Department of Housing and Urban Development (HUD) project (the Project) that the CHS told Oaks that he was interested in developing in the City. Oaks told the CHS that he wanted to help with the HUD project.
According to the affidavit, on March 16, 2016, the CHS discussed paying Oaks for his assistance. The affidavit alleges that, in the Spring and Summer of 2016, Oaks knowingly sent two letters on his official Maryland House of Delegates letterhead supporting the Project. The letters allegedly contained false statements about Oaks’ relationship to the CHS and Oaks’ involvement and knowledge of the Project. The CHS paid Oaks $10,300 for his assistance.
Further, the affidavit alleges that September 22, 2016, the CHS made another $5,000 cash payment to Oaks in exchange for Oaks filing a bond bill with the Maryland Department of Legislative Services (DLS) requesting $250,000 for the Project, which Oaks filed later that same day. On November 21, 2016, the CHS received a forwarded email from Oaks that had been sent to Oaks by a DLS employee, attaching a draft of the bill to establish a $250,000 bond to be used for the Project.
All the money paid to Oaks by the CHS was supplied by the FBI and the meetings were recorded using audio/video recording equipment.
If convicted, Oaks faces a maximum sentence of 20 years in prison for honest services wire fraud.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kathleen O. Gavin and Leo J. Wise, who are prosecuting the case.
El Paso Man Sentenced for Federal Heroin Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Johnathon Jacob Rios, 48, of El Paso, Texas, was sentenced today in federal court in Albuquerque, N.M., to 33 months in prison followed by three years of supervised release for his heroin trafficking conviction.
Rios was arrested in June 2016, and was charged in a criminal complaint with a heroin trafficking offense after the DEA seized approximately 788.10 grams of heroin from him during an interdiction investigation at the Greyhound Bus Station in Albuquerque. The heroin was contained in a bundle that was concealed under Rios’ clothes.
Rios was subsequently indicted on July 12, 2016, and charged with possession of heroin with intent to distribute on June 17, 2016, in Bernalillo County, N.M.
On Dec. 1, 2016, Rios pled guilty to a felony information charging him with possession of heroin with intent to distribute. In entering the guilty plea, Rios admitted transporting 788.1 grams of heroin from Phoenix, Ariz., to Albuquerque on a Greyhound bus by concealing the heroin under his clothes.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Presiliano Torrez prosecuted this case 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.
East St. Louis Man Sentenced for Two Federal Firearm OffensesRead the Press Release
D’Shawn Turner, 32, of East St. Louis, was sentenced to 60 months of imprisonment on federal firearm charges, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today.
On December 21, 2016, Turner pled guilty to two criminal counts, namely being a felon in possession of a firearm and possession of a firearm with an obliterated serial number. Turner was sentenced to 60 months on each count to run concurrently. At his change of plea hearing in December, Turner admitted that he had possessed two firearms in Centreville, Illinois on March 19, 2016. Turner also admitted that he had a prior felony conviction, and that one of the firearms he possessed had an obliterated serial number. Turner has been continuously confined on the federal charges since his arrest on June 15, 2016.
The investigation which resulted in Turner’s arrest and conviction was conducted by the Centreville Illinois Police Department and by the Federal Bureau of Alcohol and Firearms (BATF). The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Dallas Man Who Fired Numerous Shots at Federal Officers Pleads GuiltyRead the Press Release
DALLAS — Edgar Solorzano, 24, of Dallas, Texas, appeared this morning before U.S. District Judge Sam A. Lindsay and pleaded guilty to several felony offenses including assault on a federal officer, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Solorzano pleaded guilty to one count of possession with intent to distribute a controlled substance, two counts of assault on a federal officer and one count of using, carrying, brandishing and discharging a firearm during in relation to a crime of violence. The possession count carries a maximum penalty of up to 20 years in federal prison and a $1,000,000 fine. The assault on a federal officer counts each carry a maximum penalty of up to 20 years and a $250,000 fine. The firearm count related to a crime of violence carries a penalty of not less than 10 years and not more than life in federal prison and a $250,000 fine. Sentencing is set for August 7, 2017.
Co-defendant Victor Solorzano, 32, also of Dallas, is scheduled to begin trial April 10, 2017.
According to documents filed in the case, on November 19, 2015, Victor and Edgar Solorzano, cousins who lived across the street from each other, fired numerous gunshots at two federal officers with the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) with high-powered, semi-automatic firearms, and riddled their pickup truck with bullets as the officers fled.
Officers went to install a court-ordered tracking device on Victor Solorzano’s vehicle at his residence on Wilbur Street in Dallas, Texas. Victor was under federal investigation by HSI for trafficking methamphetamine at the time. Immediately after installing the tracking device on Victor’s vehicle, Victor, armed with a pistol, confronted the officer in the street and began firing at the officer. The officer got inside the passenger’s side of a pickup as Victor and Edgar began firing numerous gunshots at the two federal officers, who did not return fire. Victor and Edgar continued firing at the federal officers as they sped away. The officer who installed the court-ordered tracking device sustained four nonfatal bullet wounds and the pickup driven by the other officer sustained numerous bullet strikes, all from the back.
After the shooting, Edgar hid the pistol in the attic of his residence and the pistol used by Victor in a neighbor’s backyard. The police searched Edgar’s residence and found the pistol hidden in the attic. The police also found in Edgar’s bedroom more than eight grams of methamphetamine, drug-distribution paraphernalia, and a variety of firearms and ammunition. The pistol used by Victor was found in the neighbor’s backyard.
The case was investigated by the Dallas Police Department, the Department of Homeland Security, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Gary Tromblay, John Kull, and Rachael Jones are in charge of the prosecution.
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Council Bluffs Man Sentenced to 135 Months in Prison for Methamphetamine DistributionRead the Press Release
COUNCIL BLUFFS, IA - On April 6, 2017, Ramon Cisneros Aguilera, a 33-year-old Mexican citizen living in Council Bluffs, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 135 months in prison for possession with intent to distribute methamphetamine, announced United States Attorney Kevin E. VanderSchel. Aguilera will be required to serve a three-year term of supervised release following his release from prison.
On November 29, 2016, Aguilera pleaded guilty to the distribution charge and admitted he possessed over one kilogram of methamphetamine with the intent to distribute in the Southern District of Iowa in August of 2016. The charge was the result of a law enforcement investigation of drug trafficking that occurred in both Sioux City and Council Bluffs, Iowa.
This investigation was conducted by the Southwest Iowa Narcotics Enforcement Task Force, the Sioux City Police Department, the Council Bluffs Police Department, the Omaha Police Department, the Pottawattamie County Sheriff’s Office, and the United States Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Conway Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD, N.H. – Acting United States Attorney John J. Farley announced that William Bergeron 26, of Conway, New Hampshire, pleaded guilty in federal court on Thursday, April 6, 2017, to possessing fentanyl with the intent to distribute.
According to court documents and statements made at the plea hearing, on June 13, 2016, Conway Police Officers arrested Bergeron at his residence on an outstanding warrant. During the arrest, the officers found approximately 15 grams of fentanyl in Bergeron’s pockets.
Bergeron is scheduled for sentencing on July 25, 2017.
This matter was investigated by the Conway Police Department and is being prosecuted by Assistant United States Attorney Shane Kelbley.
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Contractor Charged with False Statements and Aggravated Identity TheftRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that MICHAEL SPEARS, age 53, of New Orleans, was indicted today by a federal grand jury for one count of making false statements and one count of aggravated identity theft.
According to the Indictment, SPEARS was a contractor for homeowners eligible to receive grants funded by FEMA through the Home Mitigation Grant Program also known as the HMGP. These grants would allow homeowners to elevate their houses to prevent catastrophic damage from future natural disasters. On or about May 5, 2012, SPEARS, was placed on a restricted status with the HMGP that prohibited him from getting any advanced payments on new elevation contracts because he was significantly out of compliance with a number of his pending elevation projects.
On or about July 20, 2012, in an effort to be removed from his restricted status with HMGP, SPEARS falsely represented to the program that one of the funding recipients, T.B., had requested that his elevation be delayed when, in truth and in fact, T.B. had not requested a delay. On or about August 5, 2012, SPEARS, then used T.B.’s name and signature in his false representation to the program that T.B. wanted the elevation delayed.
If convicted of making a false statement, SPEARS faces a maximum term of imprisonment of not more than 5 years, a fine of $250,000, three years supervised release after imprisonment, and a $100 special assessment. convicted of aggravated identity theft, Spears faces a mandatory two year term of imprisonment to run consecutive to any sentence he receives for the false statement, a $250,000 fine, one year of supervised release following any term of imprisonment, and a $100 special assessment.
Acting U.S. Attorney Evans reiterated that Indictment is merely an allegation and that the guilty of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Department of Homeland Security-OIG, and the Federal Bureau of Investigation for investigating this matter. Assistant U.S. Attorney Emily K. Greenfield is in charge of the prosecution.
Computer Engineer Arrested for Theft of Proprietary Trading Code from His EmployerRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that ZHENGQUAN ZHANG, a/k/a “Zheng Quan Zhang,” a/k/a “Jim Z. Zhang,” was charged with theft of trade secrets for his alleged theft of proprietary computer code concerning algorithmic trading models and trading platforms from his employer, a global financial services firm headquartered in New York, New York, that engages in the trading of publicly traded securities and other financial products (“Firm-1”). ZHANG was arrested this morning in Santa Clara, California, and was presented this afternoon in federal court in San Jose, California.
Acting U.S. Attorney Joon H. Kim said: “As alleged, Zhengquan Zhang went to great lengths to surreptitiously steal confidential computer code from his employer. Zhang allegedly installed code designed to steal his employer’s proprietary information and illegally accessed colleagues’ computer systems to further his theft. The theft charged here can happen to even the most sophisticated companies, but this arrest was made possible by the exemplary cooperation between the FBI and the victim company, which came forward promptly and alerted law enforcement of this alleged crime.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Proprietary computer code may not be a tangible asset that people can observe, but it is indeed one of the most critical assets that companies possess. Significant investments are made to develop code, safeguard it and use it to generate revenue. As we allege, Zhang misused his access to an employer’s computer system and proceeded to download and remove over three million files of data and computer code. The FBI is committed to enforcing laws that protect U.S. companies from the theft of trade secrets.”
According to the allegations contained in the Complaint unsealed today[1]:
Firm-1 uses proprietary algorithmic trading models to help it predict market movements and make trading decisions. In addition, Firm-1 uses proprietary trading platforms to create orders, automatically submit those orders to an exchange or market center, and execute orders. These trading models and trading platforms contribute substantially to Firm-1’s market share and profits, and their economic value depends, in part, on remaining undisclosed. Firm-1 accordingly has put in place substantial measures designed to protect the computer source code underlying its trading models and trading platforms (the “Source Code”), including the use of encryption keys to encrypt and decrypt portions of the Source Code, limits on employee access to the Source Code, and restrictions on employee use of file sharing websites and portable storage devices.
Beginning in March 2010, ZHANG was employed in technical roles within Firm-1 for which he was granted access to certain parts of Firm-1’s computer system. From December 2016 through March 2017, ZHANG took various steps to steal the Source Code. For example, ZHANG installed on Firm-1’s system computer code designed to look for encryption keys to gain access to portions of the Source Code. ZHANG also installed computer code designed to send data from Firm-1’s system to an external third-party software development site, which ZHANG accessed thousands of times from Firm-1’s system. ZHANG used an area of Firm-1’s computer system to store over 3 million files of data, including unencrypted portions of the Source Code, before sending it to the external site.
In addition, in late March 2017, ZHANG accessed parts of Firm-1’s computer system that he was not authorized to access. For example, ZHANG remotely accessed the computer desktops of certain quantitative analysts employed by Firm-1. ZHANG subsequently admitted to a supervisor that he did so without authorization, using software that he had modified in order to capture individuals’ usernames and passwords.
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ZHANG, 31, of Santa Clara, California, is charged with one count of theft of trade secrets, which carries a maximum sentence of 10 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Kim praised the outstanding investigative work of the FBI. He also thanked the San Jose office of the FBI as well as the Santa Clara and Palo Alto Police Departments for their assistance.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Eun Young Choi and Won S. Shin are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Complaint Filed Charging Utah County Man with Distribution of HeroinRead the Press Release
SALT LAKE CITY – A complaint filed in federal court Thursday afternoon charges Edward Lee Poorman, age 22, of Vineyard, UT, with one count of distribution of heroin. Poorman, who has been in state custody on unrelated charges, is scheduled for an initial appearance on the drug charge Monday at 10:30 a.m. before U.S. Magistrate Judge Paul M. Warner.
According to an affidavit filed with the complaint and signed by a special agent with Homeland Security Investigations, Provo City police officers responded to a Provo residence on July 6, 2016, following a call that a female at the residence was not breathing. Upon arrival, officers observed emergency medical personnel performing life saving techniques. Despite these efforts the victim, referred to as BW in the complaint, was pronounced dead a short time later.
A neighbor told officers that she had been walking by when she observed the victim’s son outside. She described him as looking lost and afraid. She stopped to see if she could help. He told her that his mother was in the house and he could not get her to wake up. He wanted some help. She immediately went to another neighbor’s home to seek help and was able to locate someone who knew BW and her family. This neighbor ran into the home to try to render aid. When she observed the BW’s condition, she called 911 and with the help of the 911 dispatcher, started CPR. Provo City Fire and Rescue arrived a short time later and took over the life saving techniques.
The medical examiner’s report later revealed that BW died as a result of the combined effects of methamphetamine and heroin-derived morphine. According to the complaint, toxicology results showed about twice as much morphine in BW’s system as meth. Provo detectives conducted a search of the residence and found two used syringes and a small amount of as black tar substance that field-tested positive for heroin, in a small syringe cap above the medicine cabinet. Detectives also located as cell phone in BW’s bedroom. They also observed that BW had a small puncture mark on her left hand consistent with recent narcotics injections.
According to the complaint, officers obtained a search warrant to search the cell phone and later obtained search warrants to search the Facebook accounts of BW and Poorman. Agents discovered BW had used a Facebook messenger application and that it contained messages from a multiple-day conversation between Poorman and BW. The conversations, recounted in the complaint filed in court, show the pair coordinating timing and directions to purchase drugs in the days leading up to BW’s death.
In an interview at the Utah County jail in February, Poorman admitted that he helped BW secure heroin on the evening of July 5, 2016, so that she would share some with him. According to the complaint, after they had secured heroin from his source, he injected himself and then BW dropped him off at a convenience store. Poorman claims this is the last time he saw BW.
The potential penalty for distribution of heroin is 20 years in prison and a fine of $1 million.
Complaints are not findings of guilt. Individuals charged in a complaint are presumed innocent unless or until proven guilty in court.
Citizen of Mexico Sentenced to Prison for Illegally Reentering the U.S.Read the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that RODULFO ROBLERO LOPEZ, also known as Jorge Perez, Jorge Roblero and Artemio Hernandez, 37, a citizen of Mexico, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 12 months of imprisonment, followed by three years of supervised release, for illegally reentering the United States after being deported.
According to court documents and statements made in court, ROBLERO LOPEZ illegally entered the U.S. when he was approximately 19 years old. Between November 2000 and August 2008, he was arrested multiple times in Florida and Massachusetts.
On September 24, 2003, ROBLERO LOPEZ was convicted in Palm Beach, Florida, of misdemeanor aggravated battery and sentenced to approximately three months of time already served. On January 13, 2006, he was convicted in Springfield, Massachusetts, of operating a motor vehicle under the influence. On November 21, 2007, he was convicted in Springfield of assault and battery, a charge that stemmed from a domestic violence incident. On August 27, 2008, he was convicted in Springfield of breaking and entering and related offenses, and was sentenced to one year of incarceration.
While incarcerated in Massachusetts, U.S. Immigration and Customs Enforcement was made aware of ROBLERO LOPEZ’s presence in the U.S. He was deported to Mexico on September 28, 2008.
On September 26, 2009, ROBLERO LOPEZ was arrested in Springfield after a domestic violence incident and was subsequently charged with disorderly conduct, breach of peace while armed, and assault with a dangerous weapon. He was deported to Mexico on December 18, 2009.
On May 3, 2010, ROBLERO LOPEZ was arrested in Springfield after a domestic violence incident and was subsequently charged with assault and battery on a knowingly pregnant female, and carrying a dangerous weapon. He was sentenced to six months of incarceration. On July 30, 2010, he was deported to Mexico.
On June 16, 2016, Connecticut State Police arrested ROBLERO LOPEZ for operating a vehicle under the influence.
ROBLERO LOPEZ was taken into federal custody on September 23, 2016. On December 19, 2016, he pleaded guilty to reentry of a removed alien.
ROBLERO LOPEZ faces additional immigration proceedings after he serves his federal sentence.
This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Burlington Woman Sentenced to 8 Months in Prison for Drug ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on April 6, 2017, Laura Berard, 55, of Burlington, Vermont was sentenced to 8 months in federal prison after her guilty plea to charges that she conspired to distribute heroin and cocaine base. Chief U.S. District Court Judge Christina Reiss also ordered that Berard serve three years of supervised release after her prison term.
According to court records, in late 2015 and early 2016, Berard permitted a heroin and cocaine dealer from the New York City area to use her apartment as a base from which to deal drugs. Berard’s apartment on North Champlain Street in Burlington was adjacent to the Sustainability Academy at Lawrence Barnes, a public elementary school. On June 2, 2016, a federal grand jury in the District of Vermont returned a five-count indictment charging Berard and her co-defendant, John Williams, aka “Ace,” with conspiring to distribute heroin and cocaine base and distributing those substances within 1000 feet of a school. Berard pled guilty to the conspiracy charges on December 29, 2016. Williams’ case is pending trial.
For her crime, Berard faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended that Berard receive a prison term between 8 and 14 months. In determining that an 8-month sentence was appropriate, Judge Reiss considered, among other factors, Berard’s poor health, the severity of the offense, Berard’s violations of pretrial conditions of release, and her lengthy criminal record, which includes a federal conviction in the District of Vermont in 2000 for distributing heroin.
Acting United States Attorney Eugenia Cowles emphasized that the indictment against Berard’s co-defendant is an accusation only and that he remains innocent unless and until he is proven guilty. Acting United States Attorney Cowles commended the Burlington Police Department, HSI, and DEA for their work in this investigation. She noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont.
Assistant U.S. Attorney Timothy C. Doherty, Jr handled this prosecution. Assistant Federal Public Defender Steven Barth represents Berard.
Bay Area Building Contractors Charged with Fraud and Bribery in Connection with Federal and State Construction ContractsRead the Press Release
SAN FRANCISCO - A federal grand jury in San Francisco indicted eight defendants with charges ranging from soliciting and accepting bribes in connection with State of California construction contracts, to conspiracy to defraud the United States in connection with a federal construction contract, and making false statements to federal investigators, announced United States Attorney Brian J. Stretch, Federal Bureau of Investigation Special Agent in Charge of the San Francisco Division John F. Bennett, and the Department of Energy Office of Inspector General.
The eight defendants are charged as follows:
- Eric Worthen, 45, of Pleasant Hill, former Assistant Deputy Secretary for Administrative Affairs, California Department of Veterans Affairs, is charged with:
- Conspiracy to Receive A Bribe and Reward By Agent of Organization Receiving Federal Funds, in violation of Title 18, United States Code, Section 371; and
- Two counts of Receiving A Bribe and Reward By Agent of Organization Receiving Federal Funds, in violation of Title 18, United States Code, Section 666(a)(1)(B).
- Taj Armon Reid, also known as Taj Reid, 46, of Oakland, is charged with:
- Conspiracy to Receive A Bribe and Reward By Agent of Organization Receiving Federal Funds, in violation of Title 18, United States Code, Section 371;
- Two counts of Receiving A Bribe and Reward By Agent of Organization Receiving Federal Funds, in violation of Title 18, United States Code, Section 666(a)(1)(B); and
- Conspiracy to Defraud the United States, that is, the United States Department of Energy, in violation of Title 18, United States Code, Section 371.
- Derf Butler, 53, of Vallejo, President of Butler Enterprise Group, LLC in San Francisco, is charged with:
- Conspiracy to Defraud the United States, that is, the United States Department of Energy, in violation of Title 18, United States Code, Section 371; and
- Making a False Statement, in violation of Title 18, United States Code, Section 1001(a)(2).
- Anton Kalafati, 33, of San Francisco, President of B Side Inc. in San Francisco, is charged with:
- Conspiracy to Defraud the United States, that is, the United States Department of Energy, in violation of Title 18, United States Code, Section 371; and
- Two counts of Making a False Statement, in violation of Title 18, United States Code, Section 1001(a)(2).
- Clifton Burch, 49, of San Lorenzo, President of Empire Engineering and Construction, Inc. in Oakland and San Francisco, is charged with:
- Conspiracy to Defraud the United States, that is, the United States Department of Energy, in violation of Title 18, United States Code, Section 371.
- Peter McKean, 48, of San Mateo, Vice President of Townsend Management, Inc. in San Francisco, is charged with:
- Conspiracy to Defraud the United States, that is, the United States Department of Energy, in violation of Title 18, United States Code, Section 371.
- Len Turner, 56, of San Leandro, Chief Financial Officer of Turner Group Construction in Oakland, is charged with:
- Conspiracy to Defraud the United States, that is, the United States Department of Energy, in violation of Title 18, United States Code, Section 371.
- Lance Turner, 57, of Oakland, Chief Operating Officer of Turner Group Construction in Oakland, is charged with:
- Conspiracy to Defraud the United States, that is, the United States Department of Energy, in violation of Title 18, United States Code, Section 371.
The indictment was filed late yesterday along with a Notice of Related Case. The documents describe three schemes that are related to each other and to previous cases filed by the U.S. Attorney’s Office.
The first scheme charged in the indictment involves Worthen’s employment in the Homes Division of the California Department of Veterans Affairs, also known as CalVet. According to the indictment, in 2013, defendants Worthen and Reid conspired to offer a specific developer an inside advantage on two CalVet construction projects. The first construction project, for residential facilities, involved a veterans’ home in Ventura, Calif. In exchange for $10,000 cash, Worthen and Reid allegedly offered to use Worthen’s position at CalVet to circumvent the normal bidding process for the project and award the construction project to the developer. The second construction project involved a kitchen remodel at the veterans’ home in West Los Angeles. For this project, Worthen allegedly took inside information from the CalVet office so that Worthen and Reid could provide the information to the developer in exchange for $2,000 cash. For both construction projects, the “developer” to whom Worthen and Reid were providing an inside track on the CalVet contracts was, in actuality, a source working under the direction of the FBI. The source was posing as a developer willing to pay bribes in order to obtain contracts with public agencies.
In the second scheme, defendants Reid, Len Turner, and Lance Turner are alleged to have conspired to engage in an illegal contract-bidding scheme in connection with a contract to renovate a Department of Energy-owned building at Lawrence Berkeley National Laboratory (Lawrence Berkeley Lab), in Berkeley. Acting undercover, the same FBI source described above represented to the defendants that he had been promised a contract by a DOE contracting officer, but the officer needed several higher bids in order to justify awarding the contract to the source. The source made these representations as part of the joint investigation by the FBI and DOE OIG. The indictment alleges that Reid and the Turners colluded to assist the source by having Turner Group Construction submit a bid in an amount higher than the bid being submitted by the source. The indictment alleges that Reid and the Turners participated in this scheme in order to defeat the DOE’s lawful process for awarding contracts through a fair, honest, and competitive process. According to the indictment, the defendants were motivated by either a financial reward or the promise of construction work from the developer that would materialize after the developer was awarded the contract.
In the third scheme charged in the indictment, defendants Derf Butler, Anton Kalafati, Clifton Burch, and Peter McKean are alleged to have engaged in a similar conspiracy in connection with the same DOE construction contract at Lawrence Berkeley Lab. According to the indictment, these defendants agreed to take steps to ensure that the same “developer” won the contract. The indictment alleges that the defendants colluded to submit bids for the Lab building renovation from B Side Construction, Empire Engineering and Construction, and Townsend Management. Each company was to submit bids in amounts dictated by the developer and for the purpose of ensuring that the developer’s bid was the lowest bid on the contract. Again, the indictment alleges that the defendants engaged in this conspiracy in order to gain financial reward or construction work from the developer.
The indictment also alleges false statement offenses against defendants Butler and Kalafati. Specifically, the indictment charges that when interviewed by agents of the FBI and DOE Office of Inspector General, defendants Butler and Kalafati made material false statements to the investigators.
The investigation that led to the charges in the indictment arose out of the FBI’s 2012-2014 public corruption investigation of San Francisco political consultant Keith Jackson and then-State Senator Leland Yee, and the related organized crime investigation of Raymond “Shrimp Boy” Chow. The FBI source who was posing as the developer and acting undercover in connection with the CalVet and DOE contracts described above was also involved in the investigation of Jackson and Yee. In furtherance of the same type of corrupt activities for which he was convicted in 2015, Jackson introduced the source to defendants Worthen, Reid, and Butler.
The defendants are scheduled to make their initial appearances before United States Magistrate Judge Joseph C. Spero in San Francisco on April 17, 2017.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum statutory sentences as follows:
- Each violation of Title 18, United States Code, Section 371 and Title 18, United States Code, Section 1001(a)(2) carries a maximum penalty of five years imprisonment, a three-year term of supervised release, a $250,000 fine, and a $100 special assessment.
- Each violation of Title 18, United States Code, Section 666(a)(1)(B) carries a maximum penalty of ten years imprisonment, a three-year term of supervised release, a $250,000 fine, and $100 special assessment.
However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorneys Susan Badger, William Frentzen, and David Countryman are prosecuting the case with the assistance of Rosario Calderon and Bridget Kilkenny. The prosecution is the result of an investigation by the Federal Bureau of Investigation and United States Department of Energy, Office of Inspector General. Additional assistance was provided by the California Department of Veteran’s Affairs.
- Eric Worthen, 45, of Pleasant Hill, former Assistant Deputy Secretary for Administrative Affairs, California Department of Veterans Affairs, is charged with:
Attorney Charged with Defrauding ClientsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that THOMAS M. MURTHA, 61, of Newtown, has been charged by a federal criminal complaint with wire fraud related to his alleged theft of more than $900,000 from victims.
MURTHA was arrested on April 5, 2017, in Michigan. He appeared before U.S. Magistrate Judge Patricia T. Morris in Bay City, Michigan, and was released on a $10,000 bond.
As alleged in the criminal complaint, MURTHA operated a law practice under the name Maher & Murtha LLC in Bridgeport. Beginning in approximately August 2015, MURTHA defrauded five victims of a total of more than $900,000. As part of the scheme, MURTHA made materially false statements to induce one victim to invest more than $600,000, purportedly for real estate investments. He also was retained to handle real estate transactions on behalf of other victims and, instead of remitting funds to the appropriate parties, converted the funds to his own use.
The complaint further alleges, in December 2015, MURTHA told the victim of his real estate investment scheme that he needed an additional $100,000 to purchase a $1.5 million commercial property in Bethel, and that a buyer would purchase the property in four to six months to convert it to condominiums. After the victim wired the money, MURTHA used the funds in connection with the purchase, in his own name, of a $725,000 house in Birmingham, Michigan.
In September 2016, MURTHA resigned from the bar after three grievance complaints were filed against him.
The charge of wire fraud carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Greenwich Police Department, with the assistance of the Connecticut Office of Chief Disciplinary Counsel. The case is being prosecuted by Assistant U.S. Attorneys Jennifer Laraia and David Huang, with the assistance of the U.S. Attorney’s Office for the Eastern District of Michigan.
Albuquerque Woman Sentenced for Federal Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Bernadette Aurora Tapia, 49, of Albuquerque, N.M., was sentenced today in federal court to 21 months in prison followed by three years of supervised release for her methamphetamine trafficking conviction.
Bernadette Aurora Tapia (Tapia) and her co-defendants Gaspar Leal, 47, Brandon Candelaria, 22 and Candace Tapia, 22, were arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and a federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Tapia and her co-defendants were charged by indictment on July 12, 2016, with conspiracy and distribution of methamphetamine on June 8, 2016, in Bernalillo County. On Dec. 13, 2016, Tapia pled guilty to conspiracy and admitted that on June 8, 2016, she agreed with others to distribute methamphetamine to another person.
To date, 40 of the 104 defendants have entered guilty pleas and 13 have been sentenced. The remaining defendants including Leal, Candelaria and Candace Tapia, have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of ATF. Assistant U.S. Attorney Samuel A. Hurtado prosecuted the case.
Albuquerque Man Pleads Guilty to Federal Bank Robbery ChargesRead the Press Release
ALBUQUERQUE – Abel Lopez, 31, of Albuquerque, N.M., pled guilty this morning in federal court to bank robbery charges. His plea agreement includes a recommendation that Lopez be sentenced within the range of 27 to 33 months in federal prison followed by a term of supervised release to be determined by the court.
Lopez and co-defendants William Colbert, 38, and Joleen Sedillo, 42, both of Albuquerque, were arrested in July 2016, on a criminal complaint charging them with bank robbery offenses. According to the criminal complaint, Sedillo, Lopez and Colbert robbed Bank of the West branches located at 5401 Central Ave. NE and 7900 Wyoming Blvd. NE on June 22, 2016 and June 27, 2016, respectively, and attempted to rob the Bank of the West branch located at 5228 Central Ave. SW on July 14, 2016.
Sedillo, Lopez and Colbert were indicted on Aug. 10, 2016, and charged with conspiracy to commit bank robbery in June and July 2016; bank robbery on June 22, 2016 and June 27, 2016; and attempted bank robbery on July 14, 2016. According to the indictment, the three defendants committed the crimes in Bernalillo County, N.M.
During this morning’s proceedings, Lopez pled guilty to conspiracy to commit bank robbery and to aiding and abetting an attempted bank robbery. In entering the guilty plea, Lopez admitted accompanying his co-defendants to the Bank of the West branches they planned to rob. Lopez further admitted that on July 14, 2016, he entered a Bank of the West branch to check for security, then communicated an “all clear” to a co-defendant so that the co-defendant could rob the bank.
On April 5, 2017, Colbert pled guilty to conspiracy to commit bank robbery and to aiding and abetting an attempted bank robbery. In entering the guilty plea, Colbert admitted accompanying Sedillo and Lopez to the Bank of the West branches they planned to rob. Colbert further admitted that on July 14, 2016, he entered a Bank of the West branch while disguised with the intent to commit a robbery but left without obtaining any money. Under the terms of his plea agreement, Colbert will be sentenced within the range of 41 to 51 months in federal prison followed by a term of supervised release to be determined by the court.
On March 28, 2017, Sedillo pled guilty to conspiracy to commit bank robbery and to aiding and abetting an attempted bank robbery. In entering the guilty plea, Sedillo admitted driving Lopez and Colbert to the Bank of the West branches they planned to rob. Sedillo further admitted that on July 14, 2016, she drove her co-defendants away from a branch of Bank of the West branch that Colbert attempted to rob. She also admitted concealing the clothing Colbert wore during the attempted robbery. Under the terms of her plea agreement, Sedillo will be sentenced within the range of 27 to 33 months in prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Michael D. Murphy is prosecuting the case.
Albuquerque Businessman Sentenced to Prison for Federal Tax Evasion ConvictionRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney and Ismael Nevarez Jr., Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation announced the sentencing of the former president and owner of Sneakerz, Inc., a corporation that operated “Sneakerz Sports Bar” in Albuquerque, N.M., on a federal tax evasion charge. James E. Coleman, Jr., 59, was sentenced this afternoon in federal court to 18 month of imprisonment to be followed by three years of supervised release. Coleman was also ordered to pay $1,045,939 in restitution to the IRS.
Coleman was charged in Nov. 2014, in a four-count indictment with tax evasion and subscribing false tax returns charges. Counts 1 and 2 charged Coleman with evading a total of $166,320 in federal corporate taxes in calendar years 2008 and 2009 by filing false tax returns that underrepresented his corporation’s taxable income. Count 1 charged Coleman with evading $90,661 in federal taxes by falsely claiming that his corporation had $621,064 in taxable income in calendar year 2008 despite knowing that the corporation had $886,128 in taxable income for that year. Count 2 charged him with evading $75,659 in federal taxes by falsely claiming that his corporation had $731,581 in taxable income in calendar year 2009 despite knowing that the corporation had $932,235 in taxable income for that year. Counts 3 and 4 charged Coleman with filing individual tax returns for calendar years 2008 and 2009 that falsely reported that Coleman received no dividend income and no business income during those two calendar years.
On June 23, 2016, Coleman pled guilty to Count 1 of the indictment and admitted evading a total of $1,045,939 in federal corporate and personal taxes between calendar years 2002 and 2009. In his plea agreement, Coleman acknowledged underrepresenting Sneakerz’s gross receipts to the IRS with the intention of evading his corporate tax liability. He also admitted falsely underrepresenting the income he derived from Sneakerz on his personal tax returns.
The Albuquerque office of IRS Criminal Investigation investigated the case, which was prosecuted by Assistant U.S. Attorney Jeremy Peña.
Accounts Payable Supervisor Who Embezzled Millions of Dollars Sentenced to PrisonRead the Press Release
For Further Information, Contact: Assistant U.S. Attorney Joseph J.M. Orabona (619)546-7951 or Assistant U.S. Attorney Aaron Arnzen (619)546-8384
NEWS RELEASE SUMMARY – April 7, 2017
SAN DIEGO – Former Accounts Payable Supervisor Edward Abellana was sentenced today in federal court to two years in prison for abusing his position of trust at Argen Corporation, a San Diego-based metals company, in order to steal millions of dollars which he used to fund a lavish lifestyle.
U.S. District Court Judge Janis L. Sammartino also ordered Abellana to repay approximately $1,952,202 to Argen and pay approximately $661,000 to the Internal Revenue Service for unpaid taxes on the money he embezzled from Argen.
According to his plea agreement, Abellana worked as the Accounts Payable Supervisor from December 2011 until October 2015. While overseeing the metals company’s credit card accounts, Abellana used his access (between June 2012 and October 2015) to embezzle approximately $1.9 million which he used for a variety of purchases, including renting private jets; paying for luxury vacations to Hawaii, Las Vegas, and Disneyland, and paying for a trip to the Super Bowl and other sporting events.
For example, Abellana admitted he charged more than $70,000 to charter a private jet to take him, his family and friends to Hawaii.
Abellana also used his position to defraud Argen by issuing unauthorized checks against the company’s checking account to pay for personal expenses. In total, Abellana admitted that he issued more than $162,000 in fraudulent checks.
As further provided in his plea agreement, Abellana was able to carry out the embezzlement by virtue of his access to the full range of financial records and accounts. On most occasions, Abellana would simply use the company’s credit cards to make personal purchases. In order to conceal his fraud, he intercepted the credit card statements and used computer software to alter the statements. Thereafter, he falsified the company’s books and records by falsely characterizing his personal purchases as legitimate business expenses.
In addition to his embezzlement scheme, Abellana filed false tax returns. He failed to report the money he embezzled on his tax returns for tax years 2012 through 2015. Abellana admitted that he owes the Internal Revenue Service more than $661,000 in federal income taxes.
“Edward Abellana took advantage of his trusted position at the company in order to wire millions of dollars for his own personal benefit,” said Acting U.S. Attorney Alana W. Robinson. “When a trusted employee uses federal wires to feed his own greed, he will be vigorously investigated and prosecuted for his crimes – not only for stealing the money, but also for failing to report the income and pay taxes.”
“For several years Edward Abellana abused his fiduciary responsibility as an Accounts Payable Supervisor,” said Eric S. Birnbaum, Special Agent in Charge of the FBI’s San Diego Division. “In doing so, he took advantage of his position of trust and defrauded his employer in order to live his lavish lifestyle. The FBI and other law enforcement agencies rely heavily on the trust and cooperation of members of the business industry and citizens to assist us in performing our mission. Through this cooperative effort, we are able to identify and hold those individuals accountable for criminal acts driven by their personal greed.”
“Individuals thinking about participating in embezzlement schemes should stop in their tracks and simply look at the consequences of taking the next step,” stated Special Agent in Charge R. Damon Rowe for IRS Criminal Investigation. “As Mr. Abellana learned today, those consequences include going to prison, being branded a convicted felon and paying back all the taxes owed plus steep penalties and interest on the unreported income.”
At the conclusion of today’s hearing, Abellana was ordered to self-surrender on June 2, 2017.
DEFENDANT Criminal Case No. 17CR0125-JLS
Edward K. Abellana Age: 40
SUMMARY OF CHARGES:
Count 1 – Wire Fraud (18 U.S.C. § 1343)
Maximum Penalties: maximum sentence of 20 years in prison; maximum fine of $250,000; maximum term of supervised release of 3 years
Count 2 – Making a False Tax Return (26 U.S.C. § 7206(1))
Maximum Penalties: maximum sentence of 3 years in prison; maximum fine of $250,000; maximum term of supervised release of 1 year
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Internal Revenue Service – Criminal Investigations
6 April 2017
Youngsville man pleads guilty to receiving sexually explicit image from a minorRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a man from Youngsville pleaded guilty Wednesday to receiving sexually explicit material from a minor and then asking her travel to Louisiana.
Gary Joseph Vincent, 25, of Youngsville, La., pleaded guilty before U.S. Magistrate Judge Patrick Hanna to one count of receiving child pornography. The plea will become final when accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, Vincent admitted that he received a sexually explicit image via the internet of a minor female who lived in another state on December 17, 2015. Vincent also asked the minor to travel to Louisiana, but law enforcement agents intercepted the minor before she could make the trip.
Vincent faces five to 20 years in prison, five years to life of supervised release and a $250,000 fine.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
The U.S. Department of Homeland Security, Louisiana State Police and Chatham Police Department in Illinois conducted the investigation. Assistant U.S. Attorneys John Luke Walker and Dominic Rossetti are prosecuting the case.
Wyoming County man pleads guilty to possessing child pornographyRead the Press Release
BECKLEY, W.Va. - A Wyoming County man faces up to 20 years in federal prison after pleading guilty yesterday to a child pornography crime, announced United States Attorney Carol Casto. Eddie Dwaine Justice, Jr., 30, of Hanover, entered his guilty plea to possession of child pornography.
Justice admitted that in July 2016, he possessed over 600 images and videos of minors engaged in sexual acts. Many of the images and videos depict prepubescent minors. The images and videos were located on his personal computer found in his residence. The investigation also revealed that Justice was using a peer-to-peer file sharing program to download, receive, and distribute child pornography.
“This case should send a clear message – we will use every tool available to prosecute those who wish to do harm to children,” stated United States Attorney Casto. “There are significant consequences for child pornography crimes and we will continue working with our law enforcement partners to protect our communities and to hold those who victimize children accountable.”
The sentencing is scheduled for August 2, 2017.
The FBI conducted the investigation. Assistant United States Attorney Eric Bacaj is in charge of the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.
This case is being brought as part of an ongoing initiative of the United States Attorney’s Office to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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Woman Arrested for Receiving Firearms in the MailRead the Press Release
St. Thomas, USVI – Shelica Baxter, 26, of St. Thomas, made her initial appearance today before U.S. Magistrate Judge Ruth Miller after being charged with receiving firearms through the mail, Acting United States Attorney Joycelyn Hewlett announced. Miller released Baxter on a $10,000 unsecured bond and set Baxter’s preliminary hearing for April 12, 2017.
According to the complaint, on April 5, 2017, agents of Homeland Security Investigations (HSI) arrested Baxter in the area of the Sugar Estate Post Office in St. Thomas after she received a package from her post office box containing two firearms.
Under federal law, if convicted of receiving firearms, Baxter faces a maximum sentence of five years in prison and a $250,000 fine. This case is being investigated by HSI, and is being prosecuted by Assistant United States Attorney Everard E. Potter.
Acting United States Attorney Hewlett reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Williamson County Man Pleads Guilty to Cocaine OffenseRead the Press Release
On April 6, 2017, Leon S. Johnson, 41, of Herrin, pled guilty to a one-count indictment charging possession with intent to distribute more than 500 grams of cocaine, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
The indictment alleges that the offense occurred on November 4, 2016, in Williamson County. Evidence at his change of plea hearing established that, in October and November 2016, Johnson sold cocaine and crack cocaine to a confidential source working for law enforcement. On November 4, 2016, agents executed search warrants at Johnson’s Herrin residence and at a Herrin storage locker rented by Johnson. During the searches, agents recovered over two kilogram of cocaine, four kilograms of marihuana, 40 grams of crack cocaine, and over $21,000.00. Johnson is being held without bond pending his July 13, 2017, sentencing date.
The cocaine offense carries a maximum penalty of 5-40 years of imprisonment, to be followed by four years of supervised release, and a $5,000,000 fine.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Herrin Police Department, Williamson County Sheriff’s Office, and Drug Enforcement Administration. The Williamson County States Attorney’s Office and Illinois National Guard also assisted in the investigation.
U.S. Postal Service Worker Sentenced for Importing Anabolic SteroidsRead the Press Release
BOSTON - An employee of the United States Postal Service (USPS) was sentenced today on one count of importing a controlled substance.
John A. Psehoyas, 54, of Methuen, was sentenced by U.S. District Court Senior Judge Douglas P. Woodlock to six months in prison, to be followed by two years of supervised release and 200 hours of community service to be completed during supervised release. On Jan. 4, 2017, Psehoyas pleaded guilty to importation of a controlled substance.
Psehoyas was a customer service supervisor at the Lynnfield, Mass. Post Office. From August 2014 to March 2016, Psehoyas purchased anabolic steroids, a controlled substance, from online sources and had them shipped to him from China, Poland, Turkey and Romania. The parcels were addressed to multiple addressees at various locations to avoid suspicion. Psehoyas retrieved the parcels by tracking them with a USPS tracking system.
Acting United States Attorney William D. Weinreb and Eileen Neff, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Boston Field Office, made the announcement today. Eugenia M. Carris of Weinreb’s Public Corruption Unit prosecuted the case.
Two Treasure Valley Methamphetamine Dealers Sentenced to Federal PrisonRead the Press Release
BOISE – Terry Dudley, 45, of Weiser, Idaho and Jacque Sue Garner, 56, of Nampa, Idaho were sentenced yesterday for distributing methamphetamine, Acting U.S. Attorney Rafael Gonzalez announced. Both Dudley and Garner pleaded guilty to one count of distributing methamphetamine. Dudley was sentenced to 130 months in prison and three years of supervised release. Garner was sentenced to 57 months in prison and five years of supervised release. Senior U.S. District Judge Edward J. Lodge also ordered Dudley to forfeit $7,100 in cash proceeds and ordered Garner to forfeit $3,000 in cash proceeds.
On January 24, 2017, Dudley pleaded guilty to distributing methamphetamine and admitted that he sold an ounce of methamphetamine to an undercover officer on April 13, 2015 and four ounces of methamphetamine to an undercover officer on April 15, 2015.
On January 12, 2017, Garner pleaded guilty to distributing methamphetamine and admitted that she sold a total of 144.1 grams of pure methamphetamine during three undercover deals in August and September of 2015.
These cases are the result of an investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF) and the Boise Police Department. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
Two Indictments Returned for Burglary of a Federal Firearms LicenseeRead the Press Release
Acting U.S. Attorney Duane A. Evans announced today the return of a single-count Indictment charging ANTWON SEYMORE, age 19, of Ponchatoula, with the April 8, 2016 burglary of The Tickfaw Auction Company, owned by a federal firearms licensee. This burglary resulted in the theft of 25 handguns.
If convicted, SEYMORE faces a maximum 10 years in prison, and/or a $250,000 fine, and 3 years of supervised release.
The Grand Jury also handed down a three-count Indictment, charging DEMARCO JONES, age 22, of Tickfaw, and WILLIE WALKER, age 21, of Hammond, for the January 31, 2017 burglary of the same Tickfaw Auction Company. This burglary resulted in the theft of 57 firearms, including assault rifles and handguns. If convicted, JONES and WALKER each face a maximum 5 years in prison, and/or a $250,000 fine, and 3 years of supervised release.
Additionally in Count 2, JONES is charged with possession of firearms as a convicted felon. JONES has a conviction for simple burglary in the 21st Judicial District Court for the Parish of Tangipahoa. For this conviction, JONES was sentenced to five years probation. If convicted, JONES faces a maximum 10 years in prison, and/or a $250,000 fine, and 3 years of supervised release.
In Court 3, WALKER is charged with receiving three weapons that he should have known were stolen during the burglary. If convicted, WALKER faces a maximum of 10 years in prison, and/or a $250,000 fine, and 3 years of supervised release.
Acting U.S. Attorney Evans reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Special Agents of the Bureau of Alcohol Tobacco Firearms and Explosives in investigating these cases, along with the Hammond Police Department and Tangipahoa Parish Sheriff’s Office. Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.