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Wednesday 15 February 2017
Sacramento Man Found Guilty in Scheme to Defraud American Express and Account Holders NationwideRead the Press Release
SACRAMENTO, Calif. — After a four-day trial, a jury found Mihran Melkonyan, 36, of Sacramento, guilty on Tuesday of 24 counts of wire fraud and two counts of mail fraud related to a scheme to commit credit card fraud by operating phony online businesses, U.S. Attorney Phillip A. Talbert announced.
Co-defendant Ruslan Kirilyuk, 39, of Beverly Hills, failed to appear at trial, and a bench warrant was issued for his arrest. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt. On December 15, 2014, co‑defendant Rouslan Akhmerov, 42, of Studio City, pleaded guilty to one count of access device fraud for his participation in the scheme. He is set to be sentenced on March 21, 2017.
According to evidence presented at trial, between approximately October 5, 2011, and March 5, 2014, Melkonyan worked with Akhmerov and others in a credit card billing scheme that involved creating approximately 68 fraudulent online companies established with the sole purpose of fraudulently charging approximately 119,000 stolen credit card numbers. In total, the members of the scheme billed the stolen credit card numbers for over $3.4 million in unauthorized charges.
As established at trial, to create the fraudulent companies, the members of the scheme obtained over 200 stolen report cards from the San Juan Unified School District. Those report cards had student information on them such as names and social security numbers. Using that information, Melkonyan and others created fraudulent companies with names such as CVS Store, Walt Mart (sic), and Chevran (sic).
Melkonyan and others then opened merchant accounts with American Express using those names and false identities. Working with co-conspirators in Russia, Melkonyan and others used those merchant accounts to process American Express credit card charges for the fraudulent businesses.
Once American Express credited the businesses’ merchant accounts for the fake sales, Melkonyan and others transferred the money from the merchant accounts to bank accounts they controlled that had been opened in other people’s identities. In some cases, Melkonyan directed foreign students visiting the United States on J-1 student visas to open bank accounts. When the students left the United States, Melkonyan took over the bank accounts to use for collecting fraud proceeds.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Michael D. Anderson and Matthew M. Yelovich are prosecuting the case.
Melkonyan is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on May 5, 2017. Melkonyan faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count. 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.
Rupert Man Sentenced to 25 Years for Producing Child PornographyRead the Press Release
POCATELLO – Erik Rodriguez, 25, of Rupert, Idaho, was sentenced yesterday in United States District Court to 300 months in prison for producing child pornography, followed by 15 years of supervised release, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Rodriguez to pay restitution for counseling costs of his victim. Rodriguez pleaded guilty to the charge on August 24, 2016.
According to the plea agreement, Homeland Security Investigations special agents downloaded a sexually exploitative video of a minor from an individual later identified as Rodriguez in April 2015. After a search of Rodriguez’s home revealed numerous computers and electronic devices being used to view and store child pornography, Rodriguez admitted to possessing and producing child pornography. Agents found approximately 133 images and 302 videos of child sexual abuse material on Rodriguez’s devices, in addition to the sexually explicit images Rodriguez produced of a girl under 10 years old.
The case was investigated by U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI).
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Prince George’s County Man Pleads Guilty to Assault with a Dangerous WeaponRead the Press Release
Greenbelt, Maryland – Joseph Axzavis Stewart, Sr. age 58, of Upper Marlboro, Maryland, pleaded guilty on February 14, 2017, to assault with a dangerous weapon, and to possession of a dangerous weapon with intent to injure.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief of Police Robert D. MacLean of the U.S. Park Police.
According to Stewart’s plea agreement, on July 31, 2016, at approximately 9:00 p.m., Stewart stabbed an individual who was seated in the passenger seat of a friend’s truck at a construction site near the Baltimore-Washington Parkway, where the friend worked. Stewart, who worked for the same construction company, previously had a brief romantic relationship with the individual’s friend. After other employees from the construction company intervened, Stewart fled the scene in a gray truck. The victim was transported to hospital, suffering from stab wounds to the arm and back. As a result of the stabbing, the victim underwent several surgeries, and lost feeling in the right arm. Law enforcement executed a search warrant and recovered the knife Stewart used to stab the victim from Stewart’s gray truck.
As part of his plea agreement, Stewart will be required to pay restitution in the full amount of the loss of the victim.
Stewart and the government have agreed that if the Court accepts the plea agreement Stewart will be sentenced between eight and 12 years in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for July 5, 2017 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the U.S. Park Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Hollis R. Weisman and Thomas M. Sullivan, who are prosecuting the case.
Pottstown Man Charged with Conspiracy to Commit Fraud and Misuse of VisasRead the Press Release
Jude Solis, 50, of Pottstown, Pennsylvania, was charged today by Information[1] with one count of conspiracy to commit fraud and misuse visas and one count of fraud and misuse of visas, announced Acting United States Attorney Louis D. Lappen. The information alleges that in or about 2010 to on or about December 2014, Solis, a Supervisor at Asplundh Tree Experts, Inc., knowingly accepted and received false identification from hired employees. This acceptance of false documentation facilitated the re-hiring of Asplundh Tree Experts, Inc. employees who were determined previously by Homeland Security Investigations to be aliens unauthorized to work in the United States.
If convicted the defendant faces a maximum possible sentence of ten years’ imprisonment, a $500,000 fine, up to three years supervised release, and a $200 special assessment.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations (“HSI”) and is being prosecuted by Special Assistant United States Attorney Josh A. Davison and Assistant United States Attorney L.C. Wright.
[1]An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Illegal Re-entry After DeportationRead the Press Release
Bertin Barcenas-Jaimes, of Philadelphia, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about January 12, 2017, Barcenas-Jaimes, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about September 28, 2007 and July 23, 2013.
If convicted the defendant faces a maximum possible sentence of twenty years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Denise S. Wolf.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of Recycling Business Pleads to Tax FraudRead the Press Release
CHARLOTTE, N.C. – Matthew Moretz, 31, of Taylorsville, N.C., appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to one count of filing a false tax return, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined in making today’s announcement by Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to filed documents and today’s court proceedings, from April 2010 to March 2011, Moretz collected unemployment income from the North Carolina Division of Employment. However, beginning in or about March 2010 and continuing through in or about 2013, Moretz was self-employed as the owner of MJM Recycling, a scrap metal business. From tax year 2010 through tax year 2013, Moretz concealed significant personal earnings from his business from the IRS. During the relevant time period, Moretz failed to disclose or provide records from all of bank accounts to his bookkeeper and tax return preparers.
According to filed documents and today’s court proceedings, for years 2010 through 2013, Moretz earned additional personal income totaling approximately $529,622.44 that Moretz failed to report on his U.S. Individual Income Tax Returns Form 1040 filed with the IRS. Specifically, Moretz failed to report cash deposits totaling $99,344.39, $194,675.59, $124,432.58, and $111,169.88, respectively, for 2010 through 2013. As a result of the unreported taxable income, Moretz had additional tax due and owing of approximately $116,409.38 from 2010 to 2013.
Moretz was released on bond after his plea hearing. The false tax return charge carries a maximum prison term of three years and a $250,000 fine. As part of his plea agreement, Moretz has agreed to pay restitution of $116,409.38 to the IRS.
The investigation was led by IRS-CI. Assistant U.S. Attorney Jenny G. Sugar, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Ossipee Man Pleads Guilty to Fentanyl ConspiracyRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced that Jeffrey Lamarche, 39, of Ossipee, New Hampshire, pleaded guilty in federal court today to one count of conspiracy to possess with intent to distribute fentanyl.
Information based on court filings and statements made in court established that on May 24, 2016, Lamarche was a passenger in a vehicle stopped by a New Hampshire State Trooper on the Exit 4 ramp off Interstate 95. During a consensual search, the trooper recovered approximately 44.6 grams of fentanyl and 5.8 grams of cocaine from Lamarche.
A sentencing hearing has been scheduled for 10 a.m. on May 31, 2017.
United States Attorney Rice stated that, “Fentanyl is responsible for the vast majority of overdoses deaths in New Hampshire. My office will continue to work with our law enforcement partners to prosecute individuals who are responsible for distributing this deadly drug.”
The case was investigated by the New Hampshire State Police and is being prosecuted by Assistant United States Attorney Georgiana L. Konesky.
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Newfoundland Woman Charged with Bankruptcy FraudRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Linda Ferris, age 55, of Newfoundland, Pennsylvania, was charged in a criminal information filed in U.S. District Court in Scranton charging her with knowingly making a false statement during her bankruptcy case.
According to United States Attorney Bruce D. Brandler, Ferris filed for bankruptcy in July 2013 and did not disclose all of her assets. The information alleges that at a Chapter 7 Bankruptcy hearing in Wilkes-Barre in September 2013, Ferris testified falsely under oath that her bankruptcy schedules were accurate and that she had disclosed all of her assets when, in fact, she knew that she received approximately $194,000, which was not listed on her bankruptcy schedules.
The charges stem from an investigation by the Federal Bureau of Investigation and the United States Trustee’s Office. Assistant United States Attorney Evan Gotlob is prosecuting the case.
The government also filed a plea agreement signed by the defendant which is subject to the approval of the court.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is five years of imprisonment, a term of supervised release following imprisonment, and a maximum fine of $250,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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New Milford Man Sentenced to Prison for Federal Firearms OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LEONARD SIKORSKI, 61, of New Milford, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 12 months of imprisonment, followed by one year of supervised release, for possessing a shotgun with an obliterated serial number.
According to court documents and statements made in court, in September 2015, SIKORSKI transported three rifles, two shotguns and 1,561 live rounds of ammunition to a pair of storage lockers he rented in Danbury. On October 22, 2015, SIKORSKI admitted to investigating agents that he had placed several firearms in those storage lockers, and gave the agents consent to search and seize the items. One of the items, a 12 gauge Remington shotgun, had an obliterated serial number.
SIKORSKI agreed to forfeit and abandon the firearms and ammunition seized from his storage lockers based on federal laws barring unlawful users of controlled substances from possessing firearms. SIKORSKI also agreed to surrender to the FBI five additional handguns and two additional rifles seized by the Naugatuck and New Milford police during separate car stops of SIKORSKI.
On October 18, 2016, SIKORSKI pleaded guilty to one count of possession of a firearm bearing an obliterated serial number.
SIKORSKI is currently in state custody serving a sentence for illegally possessing explosives. Judge Arterton ordered SIKORSKI’s federal sentence to run concurrently with his state sentence, which is estimated to conclude in April 2018.
This matter was investigated by the Federal Bureau of Investigation, Connecticut State Police and New Milford Police Department. The case was prosecuted by Assistant U.S. Attorney Henry Kopel.
New Jersey Minor Waives Adult Certification and Pleads Guilty to Making Bomb Threats to Sul Ross State University and the Big Bend Regional Medical Center in Alpine, TexasRead the Press Release
In Midland, a New Jersey minor waived adult certification and pleaded guilty to federal charges in connection with bomb threats to Sul Ross State University (SRSU) and the Big Bend Regional Medical Center (BBRMC) in Alpine as well as threats to a former State Representative last September announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
This afternoon, U.S. District Judge Robert A. Junell granted a request by 17–year-old Nicholas Kyle Martino of Sewell, Washington Township, NJ, to be prosecuted as an adult in federal court. Afterwards, Martino appeared before United States Magistrate Judge David Counts and entered guilty pleas to four counts of interstate threats to injure persons.
Information provided in court revealed that Martino engaged in “SWATing” schemes. “SWATing” is the term commonly used to describe an act of tricking law enforcement or first responders into dispatching emergency resources based on a hoax threat.
Martino admitted to making two phone calls to the Brewster County Sheriff’s Office on September 8, 2016, and making a hoax bomb threat to SRSU. Approximately two hours later, Martino followed up with a phone call to the BBRMC threatening to kill everyone in the hospital. Those malicious communications occurred on the same day law enforcement and first responders were responding to an active shooter at the Alpine High School wherein one student received a non-life threatening gunshot wound and the shooter committed suicide.
Martino also admitted to communicating threats via Twitter on September 10, 2016, to kill former Texas State Representative Pete Gallego and his family as well as another threat to bomb SRSU.
Each charge calls for up to five years in federal prison. Sentencing is scheduled for May 10, 2017, before Judge Junell. Martino has remained in federal custody since his arrest at his residence on December 1, 2016.
This investigation was conducted by agents with the Federal Bureau of Investigation in Midland, Philadelphia (PA), Eau Clare (WI), Nashville (TN), and Seattle (WA); Brewster County Sheriff’s Office; Washington Township Police Department (NJ); Menomonie Police Department (WI); Halifax Regional Police (Nova Scotia, Canada); Wake Forest Police Department (NC); Volusia County Sheriff’s Department (FL); Clermont County Sheriff’s Department (OH); and, the Union Township Police Department (OH). Assistant United States Attorney James J. Miller, Jr., and Debra Kanof are prosecuting this case on behalf of the Government.
Nearly Six Kilos of Heroin Seized; Two DetainedRead the Press Release
PROVIDENCE – An investigation into the trafficking of heroin in Rhode Island has resulted in the seizure of nearly six (6) kilograms of heroin, allegedly brought to Rhode Island from New York, and the arrest of two individuals, announced United States Attorney Peter F. Neronha, Michael J. Ferguson, Special Agent in Charge of the DEA; Central Falls Police Chief Colonel James J. Mendonca; and Cranston Police Chief Colonel Michael J. Winquist.
On Tuesday, Yesid Antonio Simanca-Pena, 40, of Central Falls, and Luis Mercado, 45, address unknown, were ordered detained in federal custody by U.S. District Court Magistrate Judge Patricia A. Sullivan on federal criminal complaints charging each with conspiracy to possess with intent to distribute one kilogram or more of heroin and one count of possession with the intent to distribute 1kilogram or more of heroin.
It is alleged that prior to February 13, 2017, a person assisting DEA was in negotiations with Mercado and Simanca-Pena to be provided with five (5) kilograms of heroin. These negotiations led to a late afternoon meeting on Monday, February 13, at Simanca-Pena’s Central Falls residence. Shortly after the person assisting DEA arrived by vehicle at the residence, it is alleged that Simanca-Pena placed one (1) kilogram of heroin on the floor of the vehicle. Simanca-Pena was immediately taken into custody and the heroin was seized by DEA agents. Soon after, DEA, DEA Task Force agents, Central Falls Police and Cranston Police executed a court authorized search of Simanca-Pena’s residence where they arrested Mercado and seized in excess of an additional four (4) kilograms of heroin.
A federal criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Muncie building commissioner indicted on corruption-related chargesRead the Press Release
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today that the building commissioner for the City of Muncie, Indiana, has been indicted on charges of wire fraud, theft, and money laundering. The arrest is part of a year-long and on-going investigation by the United States Attorney’s Office, the Federal Bureau of Investigation, and the Internal Revenue Service, into payment for public works projects in Muncie. Craig Nichols, 38, Selma, Indiana, was arrested this morning and had his initial appearance this afternoon at the federal courthouse in Indianapolis.
“Public servants need to serve the public instead of serving themselves,” said Minkler. “When someone betrays the public’s trust by stealing tax dollars for personal enrichment, my office will identify, investigate and, if the evidence supports a charge, prosecute the individual who violates that sacred trust.”
Nichols has served as Muncie’s building commissioner since 2012, exercising authority over permitting, inspections and code enforcement for the city. The indictment alleges that Nichols abused his position of trust by using sham bidding practices and submitting fraudulent invoices to steer work to his companies, and then bill Muncie more than $376,000 for work his company either never performed or performed at inflated prices.
“Seeking out and investigating public officials who exploit their official position for personal gain ranks number one on the FBI’s criminal priorities list and is the sole purpose of the Indiana Public Corruption Task Force,” said FBI Special Agent in Charge W. Jay Abbott. “The indictment and arrest of the City of Muncie Building Commissioner Craig Nichols is one more step in an ongoing investigation which seeks to identify and bring to justice any and all public officials or private citizens who have committed federal crimes and victimized the tax paying citizens of Muncie, Indiana.
“Public officials engaged in personal financial gain with taxpayer funds can never be tolerated,” said IRS Criminal Investigation Special Agent in Charge, James Robnett. “Taxpayers expect government officials to serve their community not steal from them. IRS-Criminal Investigation, together with our law enforcement partners, is committed to investigating these frauds to keep our communities free of corruption.”
According to Assistant U.S. Attorney Tiffany J. McCormick who is prosecuting this case for the government, Nichols faces up to 20 years’ imprisonment if convicted of all charges.
An indictment is only a charge and not evidence of guilt. All parties are presumed innocent until proven otherwise in federal court.
Missouri Man Arrested, Charged with Osage City Bank RobberyRead the Press Release
WICHITA, KAN. – A Missouri man has been arrested and charged with robbing a bank in Osage City, Kan., U.S. Attorney Tom Beall said today.
Hunter Lee Prewitt, 28, Mountain Grove, Mo., was charged with one count of bank robbery. It is alleged that on Jan. 25, 2017, Prewitt robbed the Landmark National Bank at 106 South 6th Street in Osage City. According to court records, Prewitt gave a teller a note saying: “This a robbery. Give me all one hundreds, fifties and twenties.” He left the bank with cash and drove away in a white pickup truck.
Starting with a description of the truck, investigators obtained video surveillance photos and followed Prewitt’s movements including a stop at a gas station in Osage City before the robbery and a pawn shop in Lyndon, Kan. The Missouri Highway Patrol used that information to identify a 2003 Ford F-150 pickup registered to Prewitt. A crime intelligence analyst with the Kansas Bureau of Investigation conducted a search of law enforcement tag readers and he found more information on Prewitt and the truck. Prewitt was arrested outside Springfield, Mo.
If convicted, Prewitt faces up to 20 years in federal prison and a fine up to $250,000. Investigating agencies included the FBI, the KBI, the Osage County Sheriff’s Office, the Missouri State Highway Patrol and the Heart of America Computer Forensics Laboratory. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Mexican National Pleads Guilty to Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JUAN SALAMANCA-CHAVEZ, age 32, a native of Mexico, pled guilty today to a one-count Indictment charging him with illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to court documents, SALAMANCA-CHAVEZ, was previously removed from the United States on February 9, 2016. He was later found in the Eastern District of Louisiana on October 28, 2016 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
SALAMANCA-CHAVEZ faces a maximum term of imprisonment of two years, as well as a fine of $250,000. United States District Court Judge Ivan L.R. Lemelle set sentencing for April 5, 2017.
U.S. Attorney Polite praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Mexican National Pleads Guilty to Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JUAN SALAMANCA-CHAVEZ, age 32, a native of Mexico, pled guilty today to a one-count Indictment charging him with illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to court documents, SALAMANCA-CHAVEZ, was previously removed from the United States on February 9, 2016. He was later found in the Eastern District of Louisiana on October 28, 2016 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
SALAMANCA-CHAVEZ faces a maximum term of imprisonment of two years, as well as a fine of $250,000. United States District Court Judge Ivan L.R. Lemelle set sentencing for April 5, 2017.
U.S. Attorney Polite praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Mexican National Found Near Crystal City 12 Days After Deportation Receives Three Years in Federal PrisonRead the Press Release
In Del Rio, a federal judge this week sentenced 34–year-old Salvador Sanchez-Reyes, a citizen of Mexico, to three years in federal prison for returning to the United States less than two weeks after deportation announced United States Attorney Richard L. Durbin, Jr., and Border Patrol Acting Chief Patrol Agent Matthew J. Hudak, Del Rio Sector.
According to court records, on March 7, 2016, U.S. Border Patrol agents discovered Sanchez-Reyes in the brush on the Simpson Ranch near Crystal City, TX. Sanchez-Reyes resisted arrest and attempted to escape, but was quickly apprehended at the scene. During sentencing on Monday, United States District Judge Alia Moses handed down a sentence above the guideline range to take into account his efforts to resist arrest and evade the Border Patrol agents.
On February 23, 2016, Sanchez-Reyes was formally deported from the United States through Laredo, TX.
On July 27, 20116, Sanchez-Reyes pleaded guilty to one count of re-entry after deportation.
This case was investigated by the U.S. Border Patrol and prosecuted by Assistant United States Attorney Paul T. Harle.
Metairie Man Charged with Being a Felon in Possession of a FirearmRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RANDOLPH B. MARTIN, age 39, of Metairie, was charged today in a one-count Bill of Information with violation of the Federal Gun Control Act.
According to the Bill of Information, on April 28, 1995, MARTIN was adjudicated guilty of burglary by the Superior Court of Gwinnett County, Georgia. Based on this adjudication, MARTIN was prohibited by federal law from possessing a firearm.
MARTIN faces a maximum term of imprisonment of ten years, a fine of $250,000 and three years of supervised release following any term of imprisonment.
U.S. Attorney Polite reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Secret Service, and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Loan "Mimi" Nguyen is in charge of the prosecution.
Marquette Woman Nets Prison Time for Check-Kiting SchemeRead the Press Release
MARQUETTE, MICHIGAN —Acting U.S. Attorney Andrew Birge announced today that Brooke Ferns (formerly Brooke Vernier), age 30, of Marquette, was sentenced to 18 months in prison followed by two years of supervised for conspiring to commit bank fraud. Chief U.S. District Judge Robert Jonker also ordered Vernier to pay $1,780,232.10 in restitution.
The conviction and sentence stemmed from an investigation by the FBI that revealed Vernier had engaged in an extensive check-kiting scheme targeting three Upper Peninsula financial institutions: the Ishpeming Community Federal Credit Union (now known as the TruNorth Federal Credit Union), the Peninsula Bank and the River Valley Bank. Check-kiting is a form of bank fraud in which a person writes a series of checks transferring funds among several bank accounts in order to create artificially inflated balances in one or more bank accounts.
The investigation revealed that Vernier became the president and sole owner of Oasis Operating, Inc., Oasis Fuels, Inc. and Refresh and Refuel, Inc. in 2010. These corporations supplied gasoline to gas stations in the Upper Peninsula and also owned several gas stations. Vernier also opened seven corporate bank accounts for these businesses at the Ishpeming Community Federal Credit Union, the Peninsula Bank and the River Valley Bank. When her businesses encountered financial difficulty, Vernier began what the FBI refers to as a "circular check-kiting" scheme. From January 2012 through September 2012, Vernier wrote thousands of checks transferring and attempting to transfer a total of approximately $145,000,000 amongst the seven corporate bank accounts. The vast majority of these inter-account transfers were executed in order to further the circular kiting scheme. During this same time period, the total business activity of Oasis Fuels, Inc., Oasis Operating, Inc., and Refresh & Refuel, Inc. was approximately $15,000,000.
In September 2012, the three financial institution discovered the circular check-kiting scheme. At that time, Vernier had 124 bad checks totaling approximately $5,200,000 in circulation. When the three financial institutions finally settled and closed all of Vernier’s corporate bank accounts, they discovered that they had suffered a loss of about $1,800,000. During the sentencing hearing, the government noted that the checks written by Vernier in furtherance of this scheme were typically for about $40,000. To keep the scheme running, Vernier had to write about 15 checks per day, every single day, for a total of more than 3,000 checks.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Maarten Vermaat.
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Marion Prison Inmate Sentenced to an Additional 27 Months for Possessing a WeaponRead the Press Release
An inmate at the United States Penitentiary at Marion, Illinois, was sentenced today in United States District Court in Benton to a term of imprisonment of 27 months for possessing a homemade knife within that facility, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. Christopher Leon Hainta, 45, had previously pled guilty to an indictment charging him with that offense, which occurred on July 22, 2016.
At the time he possessed the weapon, Hainta was serving a 46 month sentence, imposed in the Western District of Oklahoma, for being a felon in possession of a firearm. The 27 month sentence was imposed consecutively to that sentence.
In addition to the term of imprisonment, Hainta was ordered to pay the United States fines and special assessments totaling $400 and was placed on a two year term of supervised release to follow his incarceration.
Hainta was immediately returned to the custody of the Federal Bureau of Prisons to resume serving his sentences.
The case was investigated by the Federal Bureau of Investigation with the assistance of the Federal Bureau of Prisons and was prosecuted by Assistant United States Attorney James M. Cutchin.
Manhattan U.S. Attorney Announces Federal Civil Rights Charges Against Correction Officer in Sexual Assault of Inmate at Bedford Hills Correctional Facility for WomenRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Anthony J. Annucci, Acting Commissioner of the New York State Department of Corrections and Community Supervision (“DOCCS”), announced today the unsealing of a criminal complaint charging a former New York State Correction Officer in the sexual assault of a female inmate (“Victim-1”) at the Bedford Hills Correctional Facility for Women (the “Bedford Facility”). JEFFREY GREEN, then a correction officer at the Bedford Facility, was charged with assaulting and forcing himself upon Victim-1 by licking, biting, kissing, fondling, groping, and restraining her against her will, in violation of her civil rights under the United States Constitution. GREEN was arrested today on charges contained in a Criminal Complaint and is expected to be presented in federal court later today.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Jeffrey Green, a former New York State correction officer at Bedford Hills Correctional Facility, entered a prison cell, pushed a defenseless female inmate against a wall, and sexually assaulted her. Green’s alleged predatory conduct not only betrayed his duty as an officer to protect those under his charge, but violated our Constitution. The protections of our Constitution do not end at our prisons’ walls, and when inmates’ civil rights are violated, as they allegedly were here, we will act.”
DOCCS Acting Commissioner Anthony J. Annucci said: “DOCCS has zero tolerance for any criminal activity involving staff or inmates within our facilities. This latest arrest highlights the successful investigation by the Department’s Office of Special Investigations, Westchester County District Attorney and the US Attorney’s Office for the Southern District, all cooperating in this pursuit of justice.”
According to the Complaint[1] unsealed today in Manhattan federal court:
The Bedford Facility is a jail complex located in Bedford Hills, in Westchester County, New York, maintained by the New York State Department of Corrections and Community Supervision. At the time of the assault, Victim-1 was an inmate incarcerated at the Bedford Facility.
In the late evening hours of March 10, 2016, GREEN unlocked and opened the cell of Victim-1, and entered her cell unaccompanied by any other correction officer or other Bedford Facility staff. GREEN then grabbed Victim-1 by her arms, held her with her back against the wall of her cell, and began to lick, kiss, and bite her neck area, and to fondle her chest. After Victim-1 pushed GREEN away, he grabbed her, pushed her up against the wall of her cell, and again forced himself on her. GREEN then pulled up the shirt and bra of Victim-1 and bit, licked, and kissed her neck, chest, and breast and nipple areas, and fondled Victim-1’s groin area. The assault stopped only when GREEN was interrupted by the arrival of another correction officer knocking on a door to be admitted into the unit, upon which GREEN immediately departed Victim-1’s cell.
Victim-1 reported the assault the following morning, and a medical examination produced samples taken from Victim-1’s neck, left breast, and right breast that gave positive results with a presumptive test for saliva. A swab from Victim-1’s left breast generated a single-source male profile. Surveillance video and audio recordings from the Bedford Facility show GREEN entering Victim-1’s cell without any other correction officer the evening of March 10 and also audibly saying at one point “[y]ou ready [unintelligible] me my blow job?”
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JEFFREY GREEN, 48, of Brooklyn, New York, is charged with one count of deprivation of rights under color of law, which carries a maximum penalty of 10 years in prison.
The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara praised the investigative work of the New York State Department of Corrections and Community Supervision Office of Special Investigations and the Criminal Investigators at the United States Attorney’s Office.
This case is being handled by the Office’s Civil Rights and Public Corruption Units. Assistant U.S. Attorneys Alex Rossmiller and Ellen Blain are in charge of the prosecution.
The charges and allegations 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 constitute only allegations, and every fact described should be treated as an allegation.
Man Charged in Manhattan Federal Court with Multimillion-Dollar Scheme to Defraud Financial Services FirmRead the Press Release
Preet Bharara, the 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 CHRISTOPHER CANALE was charged with wire fraud, bank fraud, and aggravated identity theft for allegedly using his position at a global financial services firm (the “Firm”) to defraud the Firm out of at least $7 million over a thirteen-year period. CANALE was arrested this morning in Poughkeepsie, New York, and will be presented later today in federal court in the Southern District of New York.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Christopher Canale took advantage of his position as an accounts payable manager and used his employer’s bank accounts as his own, siphoning off millions to pay for personal expenses, including an outdoor pool, vacations, and luxury cars. Thanks to the efforts of the FBI and prosecutors in our Office, Christopher Canale’s alleged thirteen-year fraud scheme has come to an end.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “It would make most of our lives easier to know there was a large stash of cash in the bank, and we didn’t have to worry about the cost of landscaping the yard, putting in a pool or buying a luxury car. However in this case, the alleged suspect did those things using money that wasn’t his. Making matters worse, he’s accused of forging his boss’s name. The FBI is dedicated to the pursuit of those who steal from our financial community.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:[1]
From 2003 to September 2016, CANALE, a former accounts payable manager at the Firm, abused his position at the Firm to embezzle at least $7 million. CANALE accomplished this fraud by making unauthorized wire transfers and by cashing checks without authorization.
In some instances, CANALE effected the fraud by inputting fake invoices and wire transfer instructions into one of the Firm’s software programs. In other instances, CANALE made checks out to petty cash, forged the name of his former supervisor on those checks, and kept the cash.
CANALE used the Firm’s funds to pay for numerous exorbitant personal expenses, including an outdoor pool, an outdoor sound system, landscaping for his home, and at least one luxury car. CANALE also paid bills for a credit card account and sent approximately $40,000 in wire transfers to another individual.
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CANALE, 47, of Poughkeepsie, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense, and one count of bank fraud, which carries a maximum sentence of 30 years in prison and a maximum fine of $1 million or twice the gross gain or loss from the offense. CANALE is also charged with one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the work of the FBI. He added that the investigation is continuing.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Jennifer L. Beidel 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 herein constitute only allegations, and every fact described should be treated as an allegation.
Lubbock Fentanyl Distributor Pleads GuiltyRead the Press Release
LUBBOCK, Texas — Sidney Caleb Lanier, 36, of Lubbock, Texas, pleaded guilty this morning before U.S. Magistrate Judge D. Gordon Bryant Jr. to one count of conspiracy to distribute and possess with intent to distribute fentanyl, announced U.S. Attorney John Parker of the Northern District of Texas.
Lanier faces a statutory sentence of not more than 20 years in federal prison and a $1 million fine. Judge Bryant recommended that the district court accept Lanier’s guilty plea. If the district court accepts the plea, it will order a presentence investigation report with a sentencing date to be set after the completion of the report. Lanier has been in custody since his arrest in October 2016 following a law enforcement operation led by Lubbock Police Department and special agents with the Drug Enforcement Administration focused on the distribution in the Lubbock area of the highly potent synthetic opioid, fentanyl. Fentanyl is responsible for a sharp increase in opioid deaths across the U.S. It poses a high risk of death not only to users, but also to law enforcement personnel.
While fentanyl can serve as a direct substitute for heroin in opioid-dependent individuals, it is a dangerous substitute as it is 50 times more potent than heroin and results in frequent overdoses that can lead to respiratory depression and death. Cheaper than heroin, fentanyl can be ingested, inhaled or absorbed through the skin; just a few milligrams, equivalent to a few grains of table salt, may be deadly.
Two additional defendants charged in the case, Jessica Christine Holl, 28, and Jamie Marie Robertson, 32, are scheduled for trial on April 3, 2017.
According to documents filed in this case, from approximately January 2013 to October 27, 2016 on Lanier, Holl, and Robertson did knowingly and intentionally combine, conspire, confederate and agree with each other and with persons known and unknown to knowingly and intentionally distribute and possess with intent to distribute a mixture and substance containing a detectable amount of fentanyl, a Schedule II controlled substance. Lanier admits to supplying Holl and Robertson with large amounts of Fentanyl he purchased online on the Darknet from China using Bitcoin, a digital currency. The Fentanyl was shipped to various addresses in the Lubbock area, prepared by the defendants and sold for use.
The case is being investigated by the Lubbock Police Department and the Drug Enforcement Administration. Assistant U.S. Attorney Jeff Haag is in charge of the prosecution.
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Los Angeles Man Pleads Guilty to Federal Fraud Charges Related to Lottery Scheme that Targeted Elderly VictimsRead the Press Release
LOS ANGELES – A South Los Angeles man has pleaded guilty to federal mail fraud and wire fraud charges for his role in a lottery scam that targeted elderly victims with false promises of large cash prizes and cars that would be delivered when victims paid taxes, fees or insurance.
Carl Dean Bullock, 65, entered his guilty pleas to the two felony counts on Monday before United States District George H. Wu.
According to a plea agreement filed in the case, the lottery scam defrauded victims who were falsely told they had won the Publishers Clearing House sweepstakes or other lottery prizes, but they needed to pay some sort of fee or tax to collect the winnings.
“This defendant’s fraud scheme targeted elderly victims with false promises of cars and cash prizes,” said United States Attorney Eileen M. Decker. “All those who receive telephone calls from people promising prizes in exchange for money must be very wary and should take steps to confirm the reliability of the source of the call prior to sending anything.”
In his plea agreement, Bullock admitted participating in a lottery scam in which he and other members of the scheme collected money via Western Union and MoneyGram wire transfers, money orders sent through the U.S. Mail and direct cash payments. Bullock personally received at least $45,000, some of which he shared with his co-schemers, most of whom were in Jamaica.
Los Angeles Postal Inspector in Charge Robert Wemyss stated, “This investigation was an excellent example of a partnership between local and federal law enforcement agencies, working together to ensure that the nation’s mail system is not used as a tool for fraud. I fully commend the hard work and countless hours put forth by all of the law enforcement agencies involved, which resulted in bringing this individual to justice.”
Judge Wu is scheduled to sentence Bullock on April 17. The wire fraud and mail fraud charges each carry a statutory maximum penalty of 20 years in federal prison.
The investigation in this case is being conducted by the United States Postal Inspection Service, which received substantial assistance from the Glendale Police Department. The prosecution is being handled by Assistant United States Attorney Michael G. Freedman of the General Crimes section.
Long Beach Woman Pleads Guilty to Federal Charges for Illegally Shipping Large Quantity of Ammunition to PhilippinesRead the Press Release
LOS ANGELES – A Long Beach woman has pleaded guilty to federal offenses for illegally shipping tens of thousands of rounds of ammunition to the Philippines.
Marlou Mendoz, 61, pleaded guilty on Monday in United States District Court to three counts of failing to provide the required written notice to freight forwarders that she was shipping ammunition to a foreign country.
Marlou Medoza admitted that she sent .22-caliber ammunition and bullets to the Philippines in three shipments in June 2011. The shipments contained 131,300 rounds, the defendant admitted in court.
Marlou Mendoza, who remains free on bond, is scheduled to be sentenced on April 20 by United States District Judge George H. Wu. As a result of the three guilty pleas, she faces a statutory maximum penalty of 15 years in federal prison.
In a related case unsealed last year, Mark Louie Mendoza, the 31-year-old son of Marlou Mendoza, was charged with illegally shipping hundreds of thousands of dollars’ worth of firearms parts and ammunition to the Philippines – munitions that were concealed in shipments falsely claimed to be household goods.
Mark Mendoza, who remains a fugitive, is named in an eight-count indictment that charges him with conspiracy, the unlawful export of munitions, smuggling and money laundering.
Mark Mendoza, who was the president of a “tools and equipments” company known as Last Resort Armaments, ordered more than $100,000 worth of ammunition and firearms accessories, much of which was delivered to his parent’s Long Beach residence over a six-month period in 2011. The items that Mark Mendoza ordered included parts for M-16 and AR-15-type rifles, and these parts are listed as defense articles on the United States Munitions List. Pursuant to the Arms Export Control Act, items on the Munitions List may not be shipped to the Philippines without an export license issued by the Department of State.
The money laundering charge against Mark Mendoza alleges that during the first six months of 2011, Mark Mendoza transferred more than $650,000 in proceeds generated by the illegal ammunition exports from an account in the Philippines to a money remitter in Los Angeles.
“Federal export regulations and laws like the Arms Export Control Act are designed to prevent dangerous materials from reaching the hands of people who may cause harm to the United States, its interests, or its allies,” said United States Attorney Eileen M. Decker. “This case involves a significant amount of ammunition destined for the Philippines, and once there the items could have been transported anywhere in the world and used for any purpose. This case exemplifies the importance of stopping the flow of illegally trafficked weapons to foreign nations, and the dedicated efforts of law enforcement to prevent such conduct.”
The charges against the Mendozas are the product of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The probe began in 2011 after U.S. Customs and Border Protection (CBP) officers uncovered a cache of ammunition and firearms parts in an outbound crate being shipped by Marlou Mendoza that had falsely been declared to be household effects. In November 2012, specials agents with HSI and ATF special agents executed a search warrant at a location associated with Last Resort Armaments and seized more than 120,000 rounds of .22-caliber ammunition, along with AR-15 trigger assemblies, magazines, sights and rifle barrels.
“The cache of ammunition seized in this case, which was destined for the Philippines, represents quite an arsenal and we don’t know who the ultimate buyers were going to be. They could very well have been individuals with sinister or violent intentions,” said Joseph Macias, special agent in charge for HSI Los Angeles. “That’s why these kinds of exports are closely regulated, to help prevent sensitive items from falling into the hands of those who might seek to harm America or our allies.”
“Black market firearms and the illegal proceeds derived are a threat to everyone’s safety,” said ATF Special Agent in Charge Eric D. Harden. “Federal law enforcement partnerships are key in discovering and dismantling large-scale, international criminal activity like the shipments orchestrated by the Mendozas.”
Mark Mendoza is charged with conspiracy, three counts of unlawful export of munitions, three counts of export smuggling and one count of money laundering. If he were to be convicted of all counts in the indictment, Mark Mendoza would face a statutory maximum sentence of 115 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
This case is being prosecuted by Assistant United States Attorney Annamartine Salick of the Terrorism and Export Crimes Section.
Las Cruces Woman Pleads Guilty to Stealing from and Defrauding Department of Veterans AffairsRead the Press Release
ALBUQUERQUE – Donah E. Davison, 54, of Las Cruces, N.M., pled guilty today in federal court to theft of government property and forgery charges arising out of a scheme to defraud the Department of Veterans Affairs (VA).
Davison was charged on Nov. 9, 2016, in a 36-count indictment. The first 27 counts of the indictment charged Davison with embezzling money belonging to the VA by depositing 27 “surviving-spouse” benefit checks to which she was not entitled into her own bank account. Davison was charged with committing these crimes in Dona Ana County, N.M., between Dec. 2011 and March 2014. The remaining nine counts of the indictment charged Davison with forging the intended payee’s name on checks nine times between April 2012 and Jan. 2014.
During today’s proceedings, Davison pled guilty to the 36-count indictment. In the plea agreement, Davison acknowledged that her mother began receiving “surviving-spouse” benefit checks from the VA in 1970 that were payable to her only. Davison admitted that when her mother died in 1997, she failed to inform the VA of her mother’s death and continued to collect and deposit the checks into her own bank account after signing her mother’s signature on the back of the checks. Davison further admitted that the VA’s records reflect that since 2003, she stole $147,557.69 from the VA. According to court records, the VA did not maintain records prior to 2003.
Under the terms of the plea agreement, Davison will be sentenced to four months in prison followed by four months of home confinement. Davison also will be required to serve a period of supervised release to be determined by the court. Davison will also be required to pay $147,557.69 in restitution to the VA. A sentencing hearing has yet to be scheduled.
This case was investigated by the Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division, and the Albuquerque office of the FBI and is being prosecuted by Assistant U.S. Attorney John Balla of the U.S. Attorney’s Las Cruces Branch Office.
Lackawanna Man Sentenced for Bank RobberyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Ronald Anthony McCarter, Jr., 25, of Lackawanna, NY, who was convicted of bank robbery, was sentenced to 27 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Brendan T. Cullinane, who handled the case, stated on October 29, 2015, the Key Bank on Broadway Avenue in Lancaster, NY was robbed. An individual entered the bank, approached a teller and passed a note which demanded cash, no dye pack, and no sudden movements. Subsequent investigation identified McCarter as the individual based on bank surveillance photos.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction on the part of Special Agent-in-Charge Adam S. Cohen, and the Lancaster Police Department, under the direction of Chief Gerald Gill.
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Kane County Man Charged with Aggravated ID Theft, Credit SchemeRead the Press Release
SPRINGFIELD, Ill. – A Carpentersville, Ill., man, Keith JD Offord, 23, has been indicted on fraud charges that allege he used others’ identities to create fraudulent credit accounts that resulted in a loss of more than $500,000 from December 2013 to August 2015. Offord made his initial appearance in federal court yesterday before U.S. Magistrate Judge Tom Schanzle-Haskins. A detention hearing for Offord is scheduled on Feb. 17. Trial has been set for April 4, 2017, before U.S. District Judge Sue E. Myerscough.
The indictment alleges that during the time of the alleged scheme, Offord created false identification documents using others’ personal identifying information. Offord then allegedly added photographs of a co-schemer to the fraudulent IDs. Offord allegedly took the co-schemer to various retail businesses where Offord instructed the individual to obtain a credit account and credit card, and to use the credit to purchase merchandise and gift cards.
According to the indictment, Offord and his co-schemers conducted more than 260 fraudulent transactions which caused banks to issued credit cards and resulted in a loss of more than $500,000. As part of the fraud scheme, Offord allegedly defrauded several Springfield area retail stores as well as stores in the St. Louis, Mo., area in July and August 2015. Offord is also charged with possession of 15 or more counterfeit credit cards in August 2015 and with four counts of aggravated identity theft related to his alleged use of another person’s identifying information.
The charges are the result of an investigation by Illinois State Police. Assistant U.S. Attorney Gregory M. Gilmore is prosecuting the case.
If convicted, the maximum statutory penalty for each offense charged is prescribed by Congress and is provided here for informational purposes, as sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors. For the offense of bank fraud, the statutory penalty is up to 30 years in prison; for access device fraud, up to 10 years in prison, and for aggravated identity theft (four counts), the penalty is a mandatory two-year prison term to be served consecutive to the sentence ordered for the related fraud offense.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty
Juvenile convicted and sentenced as an adult in federal court on robbery chargesRead the Press Release
Robbed, Binkley’s Kitchen and Bar, Lawrence gun store & others
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today that Andre Jermaine Maxey, 18, Indianapolis, pleaded guilty to six counts of interference with commerce by threats of violence and one count of possession of a firearm during a violent crime. He was sentenced by U.S. District Judge Sarah Evans Barker to 157 months (over 13 years) of imprisonment and was ordered to pay over $23,000 in restitution. He was a juvenile when the offenses were committed.
“Gun violence has no place in a civil society,” said Minkler. “Maxey and his accomplices willingly used extreme violence while robbing gun stores and crowded restaurants. He now understands the full force of federal law enforcement. To the extent that juveniles believe they are immune from federal prosecution, they should now know that belief is mistaken.”
On November 4, 2015, Maxey and two others committed an armed robbery of KS&E guns in Lawrence, Indiana, making off with forty-four firearms and ammunition valued at over $16,000. One store employee was pistol whipped and injured. Special agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the robbery and gathered evidence that Maxey and others committed a rash of additional robberies in the days leading up to the gun store robbery. Those included armed robberies of a Little Caesar’s restaurant on September 22, a Dinner Bell restaurant on October 3 and again on October 26, the Hilltop Tavern restaurant on October 13, and Binkley’s Kitchen and Bar in Broad Ripple on October 21, 2015.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives the Indianapolis Metropolitan Police Department and the Lawrence Police Department.
“The negative impact this suspect had on the lives and families of Indianapolis and Lawrence, Indiana is un-measureable,” said IMPD Chief Bryan Roach. “I am thankful for the good work and dedication of all IMPD detectives working in collaboration with our Federal partners. Federal, state and local law enforcement officers will continue to pursue these types of crimes and criminals to make Indianapolis and the metropolitan area a safer place.”
“No individual should be allowed to threaten our community with the use of violence, particularly harming others to steal firearms and in turn commit more violence,” stated Trevor Velinor, Special Agent in Charge for ATF’s Columbus Field Division. “I am proud of the work that our agents have done, side by side with their partners at IMPD and the Lawrence Police Department, to ensure that this individual does not have an opportunity to cause further fear or injury.”
According to Assistant U.S. Attorney Jeffrey D. Preston, who prosecuted this case for the government, the remaining two defendants, whose cases remain pending, could face up to life imprisonment.
Jury Finds Belizean Man Guilty of Attempted Illegal Re-Entry After DeportationRead the Press Release
LAREDO, Texas – A federal jury sitting in Laredo has convicted a 46-year-old Belizean man claiming to be a U.S. citizen guilty of attempting to illegally reenter the United States after deportation, announced U.S. Attorney Kenneth Magidson. The jury convicted Jerome Aristedes Martinez, of Belize City, Belize, late this afternoon following a two-day trial.
On Aug. 18, 2015, Martinez attempted to enter the United States at the Lincoln Juarez Bridge, claiming to be a U.S. citizen. At that time, he presented an Illinois Identification card and a Department of Homeland Security/Social Security Administration web-site print-out as proof of his citizenship. However, upon questioning, authorities discovered Martinez was actually a native and citizen of Belize who had been removed from the United States twice before. The jury heard that Martinez had never obtained the proper permission to return to the United States after his last removal.
Martinez admitted to having been previously convicted of illegal re-entry after making false claims to U.S. citizenship. However, he testified that after his most recent removal to Belize, he “became aware” that he had been born in the U.S. Virgin Islands and was, therefore, a U.S. citizen.
The jury heard that there is no record of Martinez having been born in the U.S. Virgin Islands and that the only birth record in existence is from Belize. The government also produced documents showing his prior statements acknowledging his Belizean citizenship.
U.S. District Judge Marina Garcia Marmolejo presided over the trial and has set sentencing for June 5, 2017. At that time, Martinez faces up to 20 years in prison and a possible $250,000 maximum fine. He will remain in custody pending that hearing.
Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys Sarah M. Ellison and Giselle S. Guerra are prosecuting the case.
Jury Convicts Man of Voluntary Manslaughter in Wife's Death on Fort McDermitt Indian ReservationRead the Press Release
RENO, Nev. – Following a six-day trial, a jury found a husband guilty of voluntary manslaughter in his wife’s death at their home on the Fort McDermitt Indian Reservation, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. The man is a member of the Fort McDermitt Paiute-Shoshone Tribe of Nevada and Oregon and his wife was a member of the Te-Moak Tribe of the Western Shoshone.
“The defendant will be held accountable for this crime,” said U.S. Attorney Bogden. “I commend our local, tribal, and federal law enforcement partners and the Assistant U.S. Attorneys for working together collaboratively throughout the investigative and prosecution process and for their commitment in seeking justice for the victim.”
Nelson Ray McKee, 45, was indicted on Jan. 28, 2015. At the time of sentencing, he faces the statutory maximum penalty of 15 years in prison. Sentencing is scheduled for May 15, 2017, before U.S. District Judge Robert C. Jones.
According to testimony and evidence presented during the jury trial, on Dec. 31, 2014, McKee’s wife went to a neighbor’s house after being stabbed in the upper chest by McKee. The neighbors dialed 9-1-1. A BIA officer and Humboldt County Deputies arrived at the scene and went to locate McKee. They noticed blood drops in the snow around the property and on the front door of McKee’s residence. Upon entering the residence, law enforcement found McKee extremely intoxicated. They also found two kitchen knives on a table, bottles of whiskey, and small droplets of blood on the kitchen floor and on the front door frame. McKee was arrested that night after officers were alerted that the woman died from her injuries. The Washoe County Medical Examiner’s autopsy revealed that the knife penetrated 5 inches into the woman’s chest and directly into her heart.
The case was investigated by the Bureau of Indian Affairs, Humboldt County Sheriff’s Office, and FBI; and prosecuted by Assistant U.S. Attorneys Shannon M. Bryant and Carla B. Higginbotham.
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Jasper County Convicted Felon Sentenced for Gun ViolationsRead the Press Release
BEAUMONT, Texas - A 25-year-old Jasper, Texas man has been sentenced to federal prison for federal firearms violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Floyd Michael Richardson pleaded guilty on Oct. 4, 2016, to being a felon in possession of a firearm and was sentenced to 70 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, on Mar. 27, 2016, law enforcement officers responded to a call from the Jasper Manor Apartments. An officer observed Richardson exiting a vehicle at the apartments with crack cocaine in plain view on the vehicle’s center console. Richardson fled the scene as officers attempted to apprehend him. A search of the vehicle revealed a loaded pistol, which had been reported stolen just a few days earlier. Further investigation revealed Richardson was a convicted felon having been previously found guilty in Jefferson County, Texas of theft in 2010 and robbery in 2010. As a convicted felon, Richardson is prohibited from owning or possessing firearms or ammunition. Richardson was indicted by a federal grand jury on Aug. 3, 2016 and charged with federal firearms violations.
This case was prosecuted as part of Project Safe Neighborhoods, aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Jasper Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney John B. Ross.
Jason Galanis Sentenced to More Than 11 Years in Prison for Securities FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JASON GALANIS was sentenced today to 135 months in prison for manipulating the market for Gerova Financial Group, Ltd. (“Gerova”), a publicly traded company listed on the New York Stock Exchange, and to defrauding the shareholders of that company. JASON GALANIS was also sentenced for defrauding the clients of an investment advisory firm. JASON GALANIS pled guilty on July 21, 2016, to two counts of conspiracy to commit securities fraud, one count of securities fraud and one count of investment adviser fraud. GALANIS was sentenced today by United States District Judge P. Kevin Castel.
U.S. Attorney Preet Bharara said: “As he previously admitted in his guilty plea, Jason Galanis swindled the shareholders and clients of Gerova Financial and Tag Virgin Islands out of tens of millions of dollars in a massive fraud scheme. Today, he was sentenced to a lengthy prison term for his participation in these fraud schemes.”
According to the allegations contained in the Indictment filed against JASON GALANIS and his co-conspirators and statements made in related court filings and proceedings:
The Gerova Scheme
From 2009 to 2011, JASON GALANIS, along with his co-conspirators John Galanis, Gary Hirst, Derek Galanis, Ymer Shahini, and Gavin Hamels, engaged in a scheme to defraud the shareholders of Gerova and the investing public by effecting securities transactions in Gerova stock for the purpose of conferring millions of dollars of undisclosed remuneration on JASON GALANIS and his co-conspirators, without adequate disclosure of JASON GALANIS’s role in directing the transactions or the benefits received by JASON GALANIS and his co-conspirators.
As a part of the scheme to defraud, JASON GALANIS obtained sufficient control over Gerova to be able to cause Gerova to enter into transactions of his design, and for his benefit, including the issuance of Gerova stock. JASON GALANIS obtained this control without causing himself to be identified as an officer or director of Gerova in order to appear to abide by an SEC-imposed bar that forbade him from holding such positions at publicly traded companies. Among other means and methods, JASON GALANIS, with the assistance of Hirst, caused over five million shares of Gerova stock, which represented nearly half the company’s public float and which were intended for JASON GALANIS’s ultimate benefit, to be issued to and held in the name of Ymer Shahini, who knowingly served as a foreign nominee for JASON GALANIS. JASON GALANIS, John Galanis, Derek Galanis, Hirst, and Shahini understood that the purpose of the stock grant to Shahini was to disguise JASON GALANIS’s ownership interest in the stock, and to evade the SEC’s regulations for issuing unregistered shares of stock.
At the same time, and as a further part of the scheme to defraud, JASON GALANIS’s co-conspirators, with his knowledge and approval, opened and managed brokerage accounts in the name of Shahini (the “Shahini Accounts”), effected the sale of Gerova stock from the Shahini Accounts, and received and concealed the proceeds, knowing that this activity was designed to conceal from the investing public JASON GALANIS’s ownership of and control over the Gerova stock.
JASON GALANIS, among others, also fraudulently induced investment advisers, including Gavin Hamels, to purchase shares of Gerova stock in the investment advisers’ client accounts by offering compensation and/or other benefits to the respective investment adviser. By causing the purchase of Gerova stock at the time, quantity, and/or price of their choosing, JASON GALANIS and others were able to, among other things, effectuate the sale of large quantities of Gerova stock from the Shahini Accounts that JASON GALANIS controlled while artificially maintaining the price of Gerova stock through coordinated match trading. Such coordinated trading served to manipulate the market for Gerova stock and deceive the investing public. As a result, JASON GALANIS and his co-conspirators reaped nearly $20 million in profits.
The Scheme to Defraud Clients of TAG Virgin Islands, Inc.
From 2007 to 2010, JASON GALANIS, along with an investment adviser named James Tagliaferri, participated in a scheme to defraud the clients of Tagliaferri’s investment advisory firm, which was called TAG Virgin Islands, Inc. (“TAG”). Often in exchange for compensation from JASON GALANIS, Tagliaferri caused TAG’s clients to invest in notes issued by entities associated with JASON GALANIS.
When obligations owed by entities associated with JASON GALANIS became due, Tagliaferri used client funds to purchase either notes issued by other entities associated with JASON GALANIS or publicly traded shares held by such entities. The funds generated were then used to pay the original obligations owed to other TAG clients. Through these securities trades, funds in client accounts of one set of TAG investors were used to pay obligations owed to a different set of TAG investors by entities associated with JASON GALANIS.
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In addition to the prison term, GALANIS, 46, was sentenced to three years of supervised release, and was ordered to forfeit $37,591,681.10, as well as his interests in properties in New York and Los Angeles. Judge Castel will set a restitution amount at a future proceeding.
JASON GALANIS’s co-defendant Jared Galanis, who pled guilty to misprision of a felony in connection with the Gerova scheme, was sentenced to a term of 150 days in prison on January 11, 2017. John Galanis and Derek Galanis, each of whom pled guilty to conspiracy to commit securities fraud and securities fraud in connection with the Gerova scheme, are scheduled to be sentenced on February 16, 2017. Gary Hirst, who was found guilty after trial of conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, and wire fraud, is scheduled to be sentenced on March 17, 2017.
Defendant Ymer Shahini remains a fugitive. The allegations contained in the Indictment as to Shahini are merely accusations, and he is presumed innocent unless and until proven guilty.
Mr. Bharara praised the work of the U.S. Postal Inspection Service and the Federal Bureau of Investigation, and thanked the SEC.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brian Blais, Aimee Hector, and Rebecca Mermelstein are in charge of the prosecution.
Jacksonville Man Sentenced for Stealing Nearly A Quarter Million Dollars of Social Security Disability BenefitsRead the Press Release
Jacksonville, FL – U.S. District Judge Brian Davis has sentenced Robert Lee Lanier (57, Jacksonville) to 18 months in federal prison for theft of more than $236,000 in government property. He pleaded guilty on November 18, 2016.
According to court documents and sentencing testimony, Lanier had been receiving Social Security Disability Benefits and Medicare Benefits since 1995. In receiving the benefits, he indicated that he was unable to work. However, Lanier was actually operating a Handyman Service and boasted that he had “made millions of dollars” running the business. While receiving disability benefits, he was completing home repairs, performing trim work, building fences, and doing other home improvements. He admitted that he had lied to investigators and that he knew he would be disqualified and lose his benefits if the government knew he was capable of working. In all, Lanier received more than $155,316 from the Social Security Administration and more than $81,365 from the Medicare program over the past eight years.
This case was investigated by the Social Security Administration - Office of the Inspector General and the Department of Health and Human Services – Office of Inspector General. It was prosecuted by Assistant United States Attorney Jason Mehta.
Identity Thief Gets Five Years in Federal Prison for RV SwindleRead the Press Release
CORPUS CHRISTI, Texas – A 41-year-old woman has been ordered to serve five years in federal prison for aggravated identity theft and fraudulent use of a Social Security number, announced U.S. Attorney Kenneth Magidson. Cecile Cole, of Atlanta, Georgia, pleaded guilty in Corpus Christi federal court Nov. 30, 2016.
Today, Senior U.S. District Judge Hayden Head ordered Cole to serve 36 months for fraudulently using a Social Security number plus a mandatory consecutive 24-month sentence for the identity theft. The total 60-month prison term will be immediately followed by three years of supervised release. Cole was also ordered to pay restitution totaling $97,254.03 for economic losses to the victims including losses on a fraudulent department store account, losses to a car dealership and the diminishment in value of a recovered motorhome. Judge Head additionally ordered Cole to reveal the location of a fraudulently-obtained SUV as part of her conditions of supervised release.
While working in the finance department of an East Texas car dealership, Cole illegally copied dozens of credit applications containing the identifying and credit information of customers. Using this stolen information, Cole opened a fraudulent department store credit account and made purchases in Beaumont and Lumberton. Cole then traveled to Memphis, Tennessee, where she used one of the stolen identities to purchase an Infinity FX 35 SUV on credit in late February 2016. Approximately two weeks later, Cole again used a stolen identity to purchase a Coachman Motorhome, valued at more than $82,000, on credit from an RV dealership in Corpus Christi.
Cole was later found and arrested in Atlanta, Georgia, still in possession of the fraudulently-obtained motorhome. A search of that motorhome revealed 41 additional stolen credit applications containing the identifying and credit information of other individuals.
The Secret Service conducted the investigation with the assistance of police departments in Corpus Christi, Atlanta, Memphis, and Payson, Arizona; and the Hardin County Sheriff’s Office. Assistant U.S. Attorney Robert D. Thorpe Jr. prosecuted the case.
Houston Man Sentenced for East Texas Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas - A 44-year-old Houston man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
John Nealy Holt pleaded guilty on Aug. 5, 2016, to conspiracy to possess with intent to methamphetamine and was sentenced to 174 months in federal prison today by U.S. District Judge Thad Heartfield.
On Mar. 5, 2015, a federal grand jury returned an indictment charging 24 individuals with conspiring to possess with the intent to distribute methamphetamine, possessing firearms in furtherance of a drug trafficking crime, and using facilities of interstate commerce to facilitate the interstate distribution of illegal narcotics. The defendants were responsible for trafficking methamphetamine to customers across the United States, including in the Eastern District of Texas. Over the span of the conspiracy, this drug ring obtained over 150 kilograms of methamphetamine from numerous Mexican sources of supply that was subsequently redistributed in Houston, Texas, Port Arthur, Texas, Southwest Louisiana, and other areas across the United States. During the course of the investigation, officers recovered numerous stolen automobiles and other valuable property, which investigators allege was acquired by members of the drug trafficking ring in exchange for methamphetamine.
This case is the result of an extensive 4 ½ year joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. During the course of this operation, agents have successfully arrested over 38 individuals and have seized multi-kilogram quantities of methamphetamine, kilogram quantities of drug laced hallucinogen “gummy” candies, 22 firearms, over 400 lbs. of ammunition, and recovered 17 stolen automobiles, 5 stolen motorcycles, 2 stolen trailers, and hundreds of antiques. Holt was the final defendant to be sentenced as a result of this investigation. The other defendants were sentenced to federal prison as follows:
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Leslie Dianne Baron, 32, of Houston, 168 months;
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Christopher Dean Inman, 41, of Houston, 121 months;
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Leslie Lee Inman, 37, of Houston, 168 months;
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Eric Lazaro Castaneda, 38, of Houston, 87 months;
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Carlos Eduvijis Rosales, 38, of Houston, 151 months;
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Travis Alejandro Lyon, 34, of Houston, 60 months;
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Gilbert Gomez, 37, of Baytown, Texas, 292 months;
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Joshua Lee Lanman, 38, of Jersey Village, Texas, 60 months;
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Albert Cardenas, Jr., 23, of Houston, 87 months;
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Burton Paul Dupuy, 44, of Shreveport, LA, 24 months;
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Amado Tobar, 44, of Dallas, 137 months;
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Joseph Louis Henning, 58, of Houston, 200 months;
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Kenneth Sheldrick, 37, of Houston, 135 months;
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Luis Fernando Garcia, 23, of Port Arthur, Texas, 87 months;
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Gerardo Chavez, 38, of Nederland, Texas, 121 months;
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Alex Trejo, 28, of Lake Elsinore, CA, 80 months;
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Michael Broughton, 39, of Port Arthur, Texas, 63 months;
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Shawn Key, 37, of New Caney, Texas, 188 months
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Taber Price, 39, of Humble, Texas, 151 months;
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Britanny Danielle Beckham, 31, of Hearne, Texas, 33 months;
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Ricardo Cortes Lozano, 44, of Baytown, Texas, 12 months;
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Pablo Hernandez, 39, of Houston, 87 months; and
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Thurman Clevenger, 51, of Houston, 12 months.
This case was investigated by the Drug Enforcement Administration Beaumont Resident Office, Internal Revenue Service – Criminal Investigations, the Port Arthur Police Department, and the Houston Police Department, and prosecuted by Assistant U.S. Attorneys Paul A. Hable and Michelle S. Englade.
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Hampton-Based Spice Dealer Sentenced to 17 Years in PrisonRead the Press Release
NEWPORT NEWS, Va. – Jayson Mickle, 31, of Hampton, was sentenced today to 210 months in prison for conspiracy to distribute and possess with intent to distribute controlled substances and controlled substance analogues.
Mickle pleaded guilty on June 27, 2016. According to court documents, from 2008 to 2014, Mickle sold smokable synthetic cannabinoids, commonly known as “spice,” in the Hampton Roads area and, eventually, nationwide. Spice consists of plant material sprayed with ever changing active chemical ingredients often produced in clandestine laboratories in China. These chemicals mimic the effects of THC, the primary psychoactive ingredient in marijuana. Mickle sold blends of spice with names like Hampster Purp, HPT Cherry, Bizarro, and Orgazmo. Although the packets of spice were labeled “not for human consumption,” Mickle knew that the spice was to be smoked for its intoxicating properties.
Mickle began sales through retail stores by the name of Hampton Pipe and Tobacco, located in Hampton, Newport News, Gloucester and Norfolk. In 2010, Mickle also began a wholesale operation online called Blazin Herbs. In 2013, the wholesale outfit’s name was changed to 7 City Gifts. At times, Mickle was supplied by Zencense, which was a large-scale spice producer and wholesaler based in Florida. Between January 2012 and April 2013, Mickle’s spice distribution operation purchased in excess of 1,000 kilograms of spice for resale from Zencense and its successor company, Zenbio, which was based in California. Mickle’s operations also supplied the Red Barn, a convenience store in Newport News, with spice in late 2013 into early 2014. From 2010 to 2012 alone, Mickle’s retail operation, Hampton Pipe and Tobacco, grossed over $9.6 million in spice sales. Mickle, who used a significant portion of his drug proceeds to purchase over two dozen real properties, was also ordered to forfeit those properties.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk; Joseph W. Cronin, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Richard Myers, Chief of Police, Newport News Police Department; Terry L. Sult, Chief of Police, Hampton Police Department; and Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, Metro Washington Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Eric Hurt and Kevin Hudson, and Special Assistant U.S. Attorney Amy Cross-Rochefort prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15-cr-18.
Greece Man Arrested on Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Kevin DiMartino, 37, of Greece, NY, was arrested and charged by complaint with receiving, distributing and possessing child pornography. The charges carry a mandatory minimum penalty of five years in prison and a maximum of 20 years.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to the complaint, on December 6, 2016, an undercover law enforcement officer discovered a video file containing child pornography on the internet. Further investigation determined that the video came from an email address belonging to the defendant. The officer also discovered that DiMartino made files available for download that contained the rape of children as young as five years of age and a ten-year-old child engaged in sex acts with other children.
In January 2017, a search warrant was executed at DiMartino’s residence. Among the items seized were a desktop computer, an external hard drive and a thumb drive. An analysis of the electronic items determined that they contained both child pornography and child erotica. The electronics contained approximately 23,000 images of child pornography.
The defendant made an initial appearance before U.S. Magistrate Judge Marian W. Payson and was released. DiMartino is due back in court for a status conference on March 9, 2017, at 9:30 a.m.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen and the Greece Police Department, under the direction of Chief Patrick D. Phelan.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Grand Jury Returns Indictment Charging Individual with Destruction of an Energy FacilityRead the Press Release
SALT LAKE CITY – A federal grand jury returned an indictment Wednesday charging Stephen Plato McRae, age 57, of Escalante, with one count of destruction of an energy facility. The indictment alleges McRae knowingly and willfully damaged and attempted to damage the Garkane Energy Cooperative’s Buckskin substation in Kane County on Sept. 25, 2016.
The indictment was announced by U.S. Attorney John W. Huber, FBI Special Agent in Charge Eric K. Barnhart, and Kane County Sheriff Tracy Glover.
The investigation showed that a person shot and damaged a substation transformer at the facility. The indictment alleges the incident caused a significant interruption and impairment of the function of the energy facility. Power was knocked out to the majority of Kane and Garfield counties, affecting residents and businesses in the counties. The power outage lasted about eight hours.
McRae was initially charged with possession of a firearm after a felony conviction in a complaint filed in November. The complaint alleged he was in possession of a Springfield Armory, 30-40 rifle, Model 1898 rifle and associated ammunition. Federal law prohibits individuals convicted of a felony from possessing firearms or ammunition. Based on information developed from a confidential witness, law enforcement officers from the Kane County Sheriff’s Office and agents with the FBI executed a federal search warrant on Oct. 28, 2016, at a location in Escalante and found the firearm in the bottom of a container. Inside the magazine, at least two rounds were observed from viewing the magazine’s contents through the ejection port of the rifle, according to the complaint. Investigators found an additional 16 rounds of unused 30-40 ammunition in a separate enclosure inside the container.
McRae was charged with the firearm violation and one count of possession of marijuana in a federal indictment returned in November 2016. He has been in custody since his arrest on the complaint.
The indictment returned Wednesday, which added the destruction of an energy facility count, supersedes the November indictment.
The potential maximum penalty for destruction of an energy facility is 20 years in federal prison. The firearm count in the indictment has a penalty of up to 10 years in prison and the possession of a controlled substance has a potential two-year penalty. Each count has a potential fine of $250,000. An initial appearance on the superseding indictment will be scheduled for McRae in federal court.
Indictments are not findings of guilt. Individuals charged in an indictment are presumed innocent unless or until proven guilty in court.
The case is being investigated by special agents of the FBI and the BLM, who are participating as members of the FBI’s Joint Terrorism Task Force, and the Kane County Sheriff’s Office. It is being prosecuted by the U.S. Attorney’s Office.
Garfield Heights men indicted for armed robbery of bank on Turney Road last yearRead the Press Release
Two Garfield Heights men were indicted on charges that they used a firearm to rob the Key Bank on Turney Road, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and FBI Special Agent in Charge Stephen D. Anthony.
Levert A. Bates, 54, and Marc A. Montgomery, 50, were both indicted on one count of armed bank robbery and one count of using and carrying a firearm during and in relation to a crime of violence.
The men aided and abetted one another in robbing a Key Bank in Garfield Heights on November 30, 2016. robbers stole approximately $55,376 from the bank and brandished a firearm during the robbery, according to the indictment.
"The actions of these two individuals brought great fear to the bank employees and customers that day,” Anthony said. “With the community and media's support, law enforcement will continue to work tirelessly to identify individuals that choose to commit such violent actions and ensure they are held accountable. "
Assistant U.S. Attorney Megan R. Miller is prosecuting the case following an investigation by the Federal Bureau of Investigation and the Garfield Heights Police Department.
If convicted, the court will determine the defendants’ sentences after a review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Securities Lawyer Sentenced to Six Years of Imprisonment for Securities FraudRead the Press Release
SAN JOSE – James Seltzer, a former attorney and resident of Marin County, was sentenced to 72 months’ imprisonment for securities fraud, announced United States Attorney Brian J. Stretch, FBI Special Agent in Charge John F. Bennett, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The sentence, issued today by U.S. District Judge Lucy H. Koh, follows a guilty plea entered September 14, 2016.
According to his plea agreement, beginning no later than October of 2007 through at least May of 2011, Seltzer, 69, formerly of Belvedere, defrauded and deceived multiple individuals in connection with the purchase and sale of securities. Seltzer admitted he misrepresented to the investors that he would use their money to make certain investments for their exclusive benefit but instead diverted the funds to other uses. Seltzer acknowledged that in many cases, he diverted all or virtually all of the monies he had obtained from his investors and spent the monies on his own personal and business expenses after depositing the funds into his own personal bank accounts. The court found Seltzer defrauded 16 investors of more than $4.5 million and ordered Seltzer to pay restitution to his victims in the amount of $4,646,555.
According to papers filed by the government, Seltzer’s victims included several women with whom he conducted personal relationships in order to gain their trust as a precursor to stealing from them. During today’s sentencing proceedings, after hearing from several of Seltzer’s victims, Judge Koh described Seltzer’s conduct as “callous.” Furthermore, in addition to the victims in his criminal case, bankruptcy filings reveal Seltzer accumulated a debt of well over $20 million to numerous other individuals. Seltzer fled the country in 2010 and remained overseas for 5 years.
On June 18, 2015, a federal grand jury indicted Seltzer charging him with five counts of securities fraud, in violation of 15 U.S.C. § 78; one count of mail fraud, in violation of 18 U.S.C. § 1341; and three counts of money laundering, in violation of 18 U.S.C. § 1957. He was apprehended in Hawaii in September 2015, and, pursuant to the plea agreement, pleaded guilty to one count of securities fraud. The remaining counts were dismissed.
In addition to the prison term and restitution, Judge Koh also sentenced Seltzer to serve a three-year period of supervised release. Judge Koh ordered Seltzer to surrender no later than April 19, 2017, to begin serving his sentence.
Assistant U.S. Attorneys Timothy Lucey and Arvon Perteet are prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the IRS-Criminal Investigation and the Federal Bureau of Investigation.
Former Oklahoma Jail Superintendent and Assistant Superintendent Sentenced for Using Excessive ForceRead the Press Release
Raymond A. Barnes, 46, and Christopher A. Brown, 35, the former jail superintendent and assistant jail superintendent, respectively, of the Muskogee County Jail (MCJ), were resentenced in federal court today on multiple counts of civil rights offenses related to allegations of excessive force on inmates at MCJ on or between August 2009 and May 2011. Brown was also convicted of making material false statements to the FBI. Barnes was sentenced to two years in prison followed by three years of supervised release, and Brown was sentenced to 12 months in prison followed by three years of supervised release.
On Feb. 25, 2014, a federal jury convicted both Barnes and Brown of conspiring to violate the rights of inmates housed at MCJ by assaulting inmates themselves or by directing other jailers employed by MCJ to do so. Specifically, the defendants did or caused the following to be done: unjustifiably strike, assault, harm and physically punish inmates at MCJ who were restrained, compliant and not posing a physical threat; organize “meet and greets,” whereby jailers would scare, punish and harm incoming inmates from neighboring counties by throwing and slamming the handcuffed inmates to the ground upon their arrival at MCJ; threaten to fire MCJ employees if they reported abusive behavior directly to the sheriff or to outside law enforcement authorities; require and encourage MCJ jailers to write incident reports that falsely justified uses of force and contained misleading or inaccurate accounts of what had occurred when force was used; and perpetuate an environment within MCJ that allowed unlawful beatings and assaults against inmates to continue indefinitely and without consequence.
Both defendants were also found guilty of violating the rights of an inmate identified as J.R. when both defendants slammed and threw J.R. head-first to the ground while he was handcuffed. Barnes was additionally convicted of violating the rights of a second inmate, G.T., for similar conduct. Brown was acquitted of violating the rights of G.T.
In addition, Brown was convicted of one count of making material false statements to the FBI. Brown falsely claimed that, during meet and greets, the incoming inmate was ordered out of the transport vehicle and then “gently placed” on the ground. But in fact, Brown knew at the time of his statement to the FBI that during these meet and greets the MCJ jailers routinely threw and slammed inmates to the ground even though the inmates were restrained and posed no physical threat.
“Corrections officers who use excessive force against inmates in their custody are violating the Constitution and their sworn oaths to uphold it,” said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. “This department will vigorously enforce the civil rights laws of our nation.”
In 2015, Defendants Barnes and Brown were sentenced to twelve months and six months in prison, respectively. The Defendants appealed their convictions. The United States appealed the sentences as both procedurally and substantively unreasonable. In June 2016, the Tenth Circuit Court of Appeals upheld the convictions but overturned the sentences on the grounds of procedural unreasonableness. The court held that the trial judge had not adequately explained why the sentences were so much less severe than the sentences of 70 to 87 months called for under the Sentencing Guidelines.
This case was investigated by the Muskogee Resident Agency of the Oklahoma City Division of the FBI and prosecuted by Special Litigation Counsel Fara Gold and Trial Attorney Dana Mulhauser of the Civil Rights Division.
Felon in Possession of Shotgun While Under Influence of Methamphetamine Sentenced to PrisonRead the Press Release
EUGENE, Ore. – On Wednesday, February 15, 2017, Heath Eugene Solomon, 50, of Drain, Oregon, was sentenced to eight years in prison by U.S. District Judge Ann Aiken for being a felon in possession of a loaded 12-gauge shotgun. Solomon was arrested by a Douglas County Sheriff deputy following a neighbor’s report that he was carrying a pistol grip shotgun while searching for a phantom intruder. Solomon’s delusion was a result of his methamphetamine use. The loaded shotgun had been loaned to Solomon by a friend.
According to court documents and statements made during sentencing, Solomon has eleven felony convictions in Oregon, including assaults on police officers, sales of methamphetamine, coercion, unlawful use of a weapon and a felon in possession of a firearm. Solomon, who suffered severe abuse as a child, was addicted to methamphetamine. He had previously sustained significant brain injuries and has multiple severe mental disorders. In 1997, while under the influence of methamphetamine, Solomon fired twenty-four rounds into the walls of a residence he shared with a girlfriend in Elkton, Oregon.
Solomon pleaded guilty on November 29, 2016 to being a felon in possession of a firearm and ammunition. After completing his federal prison sentence, Solomon will be on supervised release for three years.
The case was investigated by the Douglas County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms (ATF) and prosecuted by Frank R. Papagni, Jr., Assistant United States Attorney for the District of Oregon, with assistance from Douglas County District Attorney Rick L. Wesenberg, Jr. and Deputy District Attorney Tiffany Zinter.
Federal Jury Finds Dallas Man Guilty of Child Sex TraffickingRead the Press Release
DALLAS — Following a three-day trial before U.S. District Judge David C. Godbey, a federal jury has convicted Martavious Detrel Banks Keys, 33, on felony child sex trafficking offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, the jury convicted Keys, a/k/a “Cheese” and “Matt,” on two counts of child sex trafficking and one count of sex trafficking through force, fraud or coercion. Keys faces a statutory penalty of not less than 15 years and up to life in federal prison, and up to a lifetime of supervised release. He must also register as a lifetime sex offender. Sentencing is set for June 5, 2017 before Judge Godbey.
According to documents filed in his case, from approximately March 15, 2015, through April 18, 2015, Keys recruited, enticed, harbored, transported, provided, obtained or maintained two minor females, 15-year-old Jane Doe 1 and 14-year-old Jane Doe 2, causing them to engage in commercial sex acts. In addition, he used force, fraud or coercion to cause Jane Doe 1 to engage in commercial sex acts.
Specifically, Keys placed commercial sex advertisements on Backpage.com for Jane Doe 1 and Jane Doe 2. As a result of the Backpage advertisements, the two minor females engaged in numerous commercial sex acts at Keys’ direction. Keys would negotiate with “clients” over text messages pretending to be the minor females. Jane Doe 1 and Jane Doe 2 worked out of Keys’ residence. In addition, Jane Doe 1 also saw commercial sex clients at various hotels in the Dallas area. Jane Doe 1 and Jane Doe 2 engaged in numerous sex acts a day, sometimes even up to sixteen per day. Keys, who was unemployed, kept all of the proceeds from the commercial sex acts; purchasing various items with the money, including a Chevrolet Tahoe with aftermarket rims.
Keys sexually assaulted and physically assaulted both Jane Doe 1 and Jane Doe 2 during the ordeal. In addition, he threatened Jane Doe 1 with a gun, and threatened both girls with harm if they did not continue to engage in commercial sex acts.
Members of the North Texas Trafficking Taskforce, including the Mesquite Police Department, Department of Public Safety (Garland), Homeland Security Investigations, the Bureau of Alcohol, Tobacco, and Firearms and Child Protective Services investigated. Assistant U.S. Attorneys Cara Foos Pierce and Myria Boehm prosecuted the case.
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Everett Man Alleged to Support ISIL Charged with Additional Charge of Obstructing JusticeRead the Press Release
Boston – David Daoud Wright, a/k/a Dawud Sharif Abdul Khaliq, a/k/a Dawud Sharif Abdul Khaliq, 26, of Everett, Mass., was charged today in a five-count second superseding indictment. This indictment added one additional obstruction of justice count in connection with Wright’s deletion of data on his laptop computer on June 2, 2015.
This indictment supersedes the April 2016 first superseding indictment which charged Wright and his co-conspirator Nicholas Alexander Rovinski with conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL) and committing acts of terrorism transcending national boundaries. The indictment also charged Wright with conspiracy to obstruct justice and obstruction of justice in connection with Wright’s instructions to his uncle, Usaamah Abdullah Rahim, during a telephone conversation at 5:19 a.m on June 2, 2015 to destroy his (Rahim’s) laptop computer and phone before attacking the “boys in blue.”
Today’s new charge alleges that within minutes of learning from a family member that his uncle, Usaamah Abdullah Rahim, had attempted to attack a police officer and was shot dead by law enforcement officers in a Roslindale, Mass. parking lot on June 2, 2015, Wright deleted data from his laptop computer by restoring it to factory settings and deleting call logs on his cellphone that showed he had spoken to Rahim that morning.
Beginning in at least February 2015, Wright allegedly began discussing ISIL’s call to kill non-believers in the United States with Rahim and Rovinski and they began plotting and recruiting members for their “martyrdom” operation. In March 2015, Wright drafted organizational documents for a “Martyrdom Operations Cell” and conducted internet search queries about firearms, the effectiveness of tranquilizers on human subjects and the establishment of secret militias in the United States. Simultaneously, Rahim was communicating with ISIL members overseas, including Junaid Hussain. On Aug. 24, 2015, Hussain was killed in an airstrike in Raqqah, Syria.
It is further alleged that beginning in or about May 2015, Hussain communicated directly with Rahim. Rahim in turn communicated Hussain’s instructions to Wright, with regard to the murder of an individual residing in New York. Wright, Rovinski and Rahim each allegedly conspired to commit attacks and kill persons inside the United States on behalf of ISIL. In preparation for their attack, Rovinski conducted research on weapons that could be used to behead their victims. While detained pending trial, Rovinski sought to continue their planned attacks and wrote letters to Wright from prison discussing ways to take down the U.S. government and decapitate non-believers.
On Sept. 22, 2016, Rovinski pleaded guilty to conspiring to provide material support to ISIL and conspiring to commit acts of terrorism transcending national boundaries. He therefore is not charged in the second superseding indictment.
Wright’s arraignment is set for February 28, 2107 at 10:00 a.m.
The charge of conspiracy to provide material support provides for a sentence of no greater than 20 years in prison, a lifetime term of supervised release and a fine of $250,000. The charge of conspiracy to obstruct justice provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. The charge of obstruction of justice provides for a sentence of 20 years in prison, three years of supervised release and a $250,000 fine. The charge of conspiracy to commit acts of terrorism transcending national boundaries provides for a sentence of life in prison, a lifetime supervised release and a fine of $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 U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney William D. Weinreb of the District of Massachusetts, Acting Assistant Attorney General for National Security Mary B. McCord and Special Agent in Charge Harold H. Shaw of the FBI’s Boston Division made the announcement today.
This investigation is being conducted by the Boston Joint Terrorism Task Force (JTTF) and the Rhode Island JTTF with critical assistance from the Boston Police Department; Boston Regional Intelligence Center; Massachusetts State Police; Commonwealth Fusion Center; Everett Police Department; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Rhode Island State Police; Warwick, Rhode Island, Police Department; Rhode Island Fusion Center; Naval Criminal Investigative Service; and member agencies of the JTTF.
The case is being prosecuted by Assistant U.S. Attorney B. Stephanie Siegmann of the District of Massachusetts’s National Security Unit and Trial Attorney Greg R. Gonzalez of the National Security Division’s Counterterrorism Section.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Disbarred Somerset Attorney Convicted of Fraud and Witness TamperingRead the Press Release
BOSTON – A disbarred Somerset attorney was convicted today by a federal jury in connection with his scheme to defraud an acquaintance of $60,000 and of witness tampering based on his efforts to influence the victim’s testimony at trial.
John Silvia, 67, purportedly the “Managing Member” of Richardson Consulting, LLC, was convicted following a five-day trial of two counts of wire fraud, five counts of mail fraud, one count of structuring cash transactions and one count of witness tampering. U.S. District Court Judge George A. O’Toole, Jr. scheduled sentencing for May 23, 2017.
In 2013, Silvia convinced an acquaintance, a nurse caring for his wife, to invest $60,000 in a real estate venture and a purported “performance bond.” In reality, however, Silvia used the money for personal expenses, including to pay for his portion of Red Sox season tickets and an interest in a Marriott timeshare. Long after the money was gone, Silvia lulled his victim into believing that the money had been used as promised and that the investment, along with interest, would be returned.
In the months leading up to trial, when it was clear that Silvia’s victim was preparing to testify against him, Silvia pulled together more than $70,000, which he deposited in small increments—some on the same day—into six different bank accounts. He then prepared a series of checks and attempted to pay back his victim the full $60,000 “plus interest.” As the jury concluded, Silvia intentionally “structured” the cash deposits in this way so as to avoid mandatory bank reporting requirements and detection. As the jury also concluded, Silvia’s belated attempt to repay the victim—years after the initial investment and within a few months of his anticipated testimony—was really an attempt to influence the victim’s testimony.
In February 2016, Silvia was convicted of eight counts of securities fraud arising out of his effort to sell ownership interests in Advanced Space Monitor (ASM) that he was not entitled to sell. In furtherance of his fraud, Silvia created and used a fake “Subscription Agreement” that purportedly gave him the right to receive and sell shares in ASM when, in reality, he did not have the right to do so. Silvia cut and pasted the signature of ASM’s founder on the document purporting to give Silvia ownership interest in the company. Silvia defrauded multiple investors out of more than $300,000 based on false representations about his ability to sell the shares. Many of his victims were his friends and family members.
Silvia, who was licensed to practice law in Massachusetts in 1975, has been disbarred since 2003.
The charges of mail fraud, wire fraud and witness tampering each provide for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000, or twice the gross loss to the victims, and restitution. The structuring charge provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss. The charge of securities fraud provides a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $5 million, or twice the gross loss to the victims, and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The Massachusetts Securities Division, which filed an administrative action charging Silvia with violation of Massachusetts securities laws, referred this case to the U.S. Attorney’s Office and cooperated with the criminal investigation. The case is being prosecuted by Assistant U.S. Attorney Neil Gallagher of Weinreb’s Economic Crimes Unit and Eric Forni of the Securities and Exchange Commission who was appointed as a Special Assistant U.S. Attorney.
Denton County Man Sentenced for Child Pornography ViolationsRead the Press Release
SHERMAN, Texas — A 63-year-old The Colony, Texas man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
David M. Kruse pleaded guilty on Oct. 6, 2016, to possession of child pornography and was sentenced to 10 years in federal prison today by U.S. District Judge Amos L. Mazzant.
- to information presented in court, in August 2015, federal agents obtained a search warrant for a computer owned by Kruse after receiving information about an individual who had accessed child pornography from a site known to host that material. On that date, agents spoke with Kruse who admitted to owning the computer, which was later found to contain more than 20,000 images and videos of child pornography, including files depicting prepubescent minors and sadistic/masochistic conduct. Kruse was indicted by a federal grand jury on Aug. 13, 2015, and charged with child pornography violations.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation and the Plano Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller.
Cuyahoga Falls man charged with lying about domestic violence convictions in effort to get gunRead the Press Release
A federal grand jury indicted Andrew Crislip, 33, of Cuyahoga Falls, for being a felon in possession of a firearm and ammunition and with making a false statement to a licensed firearms dealer during the acquisition of a firearm, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Crislip possessed a .38 caliber Taurus revolver, model 85 Ultra-Lite, and ammunition on Sept. 9, 2016, after having been previously convicted of two misdemeanor crimes of domestic violence in Stow Municipal Court in August 2016. He also knowingly represented on a Federal Firearms Transaction Record on Sept. 3, 2016 that he has never been convicted in any court of a misdemeanor crime of domestic violence, when in fact, he has been convicted for such a crime, according to the indictment.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation. The case is being prosecuted by Assistant United States Attorney Ranya Elzein.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Collin County Man Sentenced for Child Pornography ViolationsRead the Press Release
SHERMAN, Texas — A 40-year-old Wylie, Texas man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Jesse McQuade pleaded guilty on Sep. 13, 2016, to possession of child pornography and was sentenced to 97 months in federal prison today by U.S. District Judge Amos L. Mazzant.
According to information presented in court, in April 2016, an undercover officer was conducting an investigation into the sharing of child pornography files on a peer-to-peer network. The officer downloaded a number of files of child pornography, which resolved to a computer user at McQuade's home in Wylie. A federal search warrant was executed on Aug. 9, 2016, during which agents seized digital media, including a 1TB hard drive that was found to contain child pornography. McQuade admitted that he knew that the items on the hard drive were child pornography, including files depicting prepubescent minors and sadistic/masochistic conduct.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation, the Plano Police Department and the Wylie Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller.
Colleyville Businessman Pleads Guilty to Mail Fraud Stemming from Ponzi Oil and Gas Fraud SchemeRead the Press Release
FORT WORTH, Texas — James VanBlaricum, 77, of Colleyville, Texas, appeared in federal court this morning before U.S. Magistrate Judge Jeffrey L. Cureton and pleaded guilty to one count of mail fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
VanBlaricum, who operated Signal Oil and Gas Company (SOG) and Texas Energy Management, which later became Texas Energy Mutual (TEM), has been in custody since his arrest in mid-August 2016. Sentencing is set for June 13, 2017.
According to plea documents, VanBlaricum formed SOG and TEM, ostensibly for the purpose of investing in mineral leases, and oil and gas production and earning a profit from those investments. VanBlaricum ran the fraud scheme from approximately January 2007 to August 2016, from office locations in Grapevine, Texas and Bedford, Texas, as well as from his residence and home office located in Colleyville, Texas where many of the acts and transactions alleged in the indictment took place. VanBlaricum raised millions of dollars from investors by various means, including selling securities in the form of joint ventures in “programs” offered by SOG and TEM.
VanBlaricum employed sales agents who worked on his behalf to raise money, by selling limited partnership interests in these “programs” offered by SOG and TEM. Both personally and through investors, VanBlaricum deceived investors and potential investors by misrepresenting material facts. For example, he represented that investors would earn an “assured” rate of return on their initial investment, and they would receive a full refund of their initial investment amount after a defined period of time. He also represented that he intended to use a certain percentage of investors’ money to purchase mineral leases, and oil and gas well projects, when in fact, he intended to spend a substantially smaller percentage on the leases and oil and gas well projects and use a substantial part of investors’ money for purposes they did not authorize or even know about, including paying purported investment returns to other investors, commissions to sales agents, and paying his personal expenses as well as personal expenses for family members, friends, and business associates.
VanBlaricum also represented that he had purchased certain assets, or was in the process of purchasing them, when in fact, he had not purchased the assets and was not in the process of purchasing them. He also represented that the oil and gas well projects were productive and profitable, when in fact, most were “dry holes,” produced oil for a short period of time, or had not been drilled.
When VanBlaricum made promises about the use of investor funds, he failed to state that he had made the same promises to other investors and then used those investors’ funds for purposes they did not authorize or even know about, including paying purported investment returns to other investors, commissions to sales agents, and payment of personal expenses for VanBlaricum and his family, friends, and business associates.
VanBlaricum, according to plea documents, identified himself to investors using a false name. VanBlaricum deposited investors’ funds into, and withdrew and expended investors’ funds, from accounts he controlled in the names of entities he controlled. He caused funds to be transferred to, withdrawn from, and deposited into various accounts to create the appearance of business operations and revenue that he knew did not exist. He also caused “lulling” payments to be paid to investors, ostensibly as returns on investment, when he knew the funds came from other investors rather than from business operations.
VanBlaricum secretly, and without authorization, took and spend money entrusted to him by investors for advertising; vacations and international travel; rent payments; automobile purchases; and payroll and commissions for employees and sales agents.
The U.S. Postal Inspection Service with assistance from U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Douglas A. Allen is in charge of the prosecution.
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Cleveland pair charged with defrauding banks by using fake identitiesRead the Press Release
Two Cleveland residents were charged with defrauding banks out of at least $76,000 by using fake identities, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio
Delon Roberson, 25, and Shameka Roberson, 26, were charged with bank fraud and aggravated identity theft in connection with a scheme to defraud Key Bank by depositing closed-account checks into the bank accounts of various individuals recruited into the scheme, and later withdrawing funds under false pretenses, according to the indictment.
Delon Roberson used the social media site Facebook to recruit numerous local individuals to open accounts or turn over their bank ATM or debit cards and PINs. Delon Roberson and Shameka Roberson then caused the deposit of at least 138 fraudulent checks totaling more than $159,000 into the bank accounts of the recruited individuals. At least $76,000 was later withdrawn from the accounts through ATM transactions and debit card purchases between May 2015 and April 2016, according to the indictment.
Assistant United States Attorney Robert W. Kern is prosecuting this case, following an investigation by the U.S. Postal Inspection Service.
If convicted, the court will determine the defendants’ sentence after a review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.