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Friday 10 February 2017
Lackawanna County Man Guilty of Receiving and Distributing Child PornographyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael J. Costello, age 42, of Archbald, Pennsylvania, pleaded guilty today before U.S. District Court Judge Malachy E. Mannion to receiving and distributing child pornography.
According to United States Attorney Bruce D. Brandler, Costello admitted to using a computer to obtain and trade images of child pornography during January through August 2014. Costello’s computer contained more than 1,100 images and more than 300 videos of child pornography.
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant U.S. Attorneys Francis P. Sempa and Evan J. Gotlob are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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."
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 for this offense is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. The charge also carries a mandatory minimum sentence of five years in prison. 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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KCK Man Pleads Guilty to Carjacking that Caused Multi-Vehicle Wreck, Dog's DeathRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Kan., man pleaded guilty in federal court today to a carjacking that ended in a multiple-vehicle collision with injuries and the death of the car owner’s dog.
Stephen D. Bagley, 26, of Kansas City, Kan., pleaded guilty before U.S. District Judge Howard F. Sachs to one count of carjacking and one count of brandishing a firearm during a crime of violence. Bagley has remained in prison, serving a sentence imposed by the U.S. District Court in the District of Kansas, since he was indicted on July 8, 2015.
By pleading guilty today, Bagley admitted that he stole a 2008 Nissan Altima at gunpoint on June 22, 2014. Bagley brandished a Glock .40-caliber pistol during the carjacking.
According to today’s plea agreement, the owner of the vehicle was standing near the car talking to some friends at about 2:30 a.m., while parked in front of Express Mart at 3786 Broadway, Kansas City, Mo. A friend was sitting in the passenger’s seat of the vehicle when Bagley grabbed the door handle. The passenger told him “this ain’t your car.” Bagley then pulled a handgun from his waistband and pointed it at her while he got in the driver’s seat. While pointing the gun at her, Bagley told her to get out of the car.
The vehicle owner’s dog, Mister, was left inside the vehicle when Bagley backed out of the station and sped off. The owner and his friend got into another friend’s car and attempted to follow the Altima as they last saw it speeding northbound on Interstate 35. They returned to the Express Mart and contacted police to report the carjacking.
A few minutes later, officers were dispatched to a multi-vehicle crash with injuries on Interstate 35, in the northbound lanes near West Pennway, in Kansas City, Mo. The Altima had crashed into multiple vehicles and Bagley had fled from the crash site. Mister was found dead inside the Altima.
Detectives obtained the surveillance video from the Express Mart during the time of the carjacking. Bagley’s U.S. probation officer, who had supervised Bagley since his release in April 2014 from the Bureau of Prisons, identified him as the assailant. In August 2014, an ATF agent interviewed a woman who was involved in a domestic dispute with Bagley in which Bagley fired six shots with a .40-caliber pistol. The .40-caliber spent shell casings were recovered as evidence, and the victim identified Bagley in photos taken from the surveillance video.
U.S. Marshals had arrested Bagley on July 29, 2014, for violating his supervised release in the District of Kansas case. Marshals executed a search warrant at Bagley’s residence at the time of his arrest and recovered the Glock .40-caliber pistol, an extended magazine and multiple rounds of ammunition.
A forensic scientist determined that the Glock pistol recovered from Bagley’s residence was the pistol that fired a spent shell casing recovered from inside the Altima on June 22, 2014. The ballistics also matched the spent shell casings recovered from the domestic dispute involving Bagley.
Under federal statutes, Bagley is subject to a sentence of up to 15 years in federal prison without parole for carjacking, plus a consecutive sentence of at least seven years in prison, up to life in federal prison without parole, for the firearm violation. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Jury finds former Summit County councilwoman guilty of taking bribes and related crimesRead the Press Release
A former Summit County councilwoman was convicted of taking cash bribes in exchange for trying to influence court proceedings and investigations, said U.S. Attorney Carole S. Rendon and FBI Special Agent in Charge Stephen D. Anthony.
A jury, following a weeklong trial, convicted Tamela Lee on all six counts: conspiracy to commit honest services mail and wire fraud, honest services mail fraud, Hobbs Act conspiracy, violating the Hobbs Act, obstruction of justice and making false statements to law enforcement.
Lee, 58, of Akron, is scheduled to be sentenced on May 26.
“This is a public official who used her office to line her pockets and fill her bank account,” Rendon said. “She violated the public’s trust and will now have to answer for her actions.”
“Ms. Lee must be held accountable for their crimes,” Anthony said. “She was supposed to lawfully represent the people that elected her, but rather, was motivated by her own self interests. The FBI will continue to root out public corruption, whether it is elected officials that violate their oath and the law or citizens that bribe them to do so.”
Lee solicited and accepted things from Omar Abdelqader, including money, loans, campaign contributions, home improvements, home maintenance and consumer goods. These were provided directly by Omar Abdelqader, or through Bi-Rite, according to court documents and testimony.
In return, Lee performed and promised to perform official acts for Omar Abdelqader and other businesses in Akron for which he served as a conduit to Lee. These actions included helping Omar Abdelqader and his designees navigate government bureaucracy, achieve favorable outcomes in judicial and administrative proceedings and obtain streamlined access to information, according to court documents and testimony.
Omar Abdelqader was affiliated with several convenience stores and other businesses in the Akron area, including the Bi-Rite on Diagnonal Road. Abdelrahman. Abdelqader is his brother and Samir Abdelqader is his nephew, according to court documents.
On June 8, 2014, Omar and Samir Abdelqader discussed Samir obtaining a bond regarding criminal charges he was facing. About 40 minutes later, Omar and Lee discussed the councilwoman emailing or calling the judge. On June 12, Lee called Judge 2’s chambers several times. The next day Lee asked Omar for money, and he directed her to the Bi-Rite to collect the money, according to court documents and testimony.
On June 14, 2014, Lee sent a text message to Omar informing him that the judge and bailiff returned her call. She then sent a text message to Omar stating: “I am going to bed, I am angry and frustrated and broke…bye,” according to according to court documents and testimony.
Later that day, Omar instructed Lee to send her daughter to the Bi-Rite to pick up cash. Three days later, Lee spoke to Judge 2 and told the judge she was related to Samir Abdelqader, according to court documents and testimony.
In July 2014, Lee and Omar spoke repeatedly about fundraising for her campaign. Omar told Person 9 that he had collected $800 in donations for Lee. Omar explained the Lee provided service. “In other words, I am keeping her because we need her, man,” Omar told Person 9, who responded: “She is better than an attorney to us!” according to court documents and testimony.
Omar Abdelqader, of North Canton, Abdelrahman Abdelqader, of Canton, and Samir Abdelqader, of Fairlawn, have pleaded guilty to crimes related to this case.
This case was prosecuted by Assistant U.S. Attorneys Linda Barr and Adam Hollingsworth following an investigation by the Federal Bureau of Investigation, with assistance from the Akron Police Department.
Jury Convicts Buckeye Lake Man of Receiving, Possessing Child Pornography While on Supervised ReleaseRead the Press Release
COLUMBUS, Ohio – A United States District Court jury convicted Joshua D. Chapman-Sexton, 31, of Buckeye Lake, Ohio, of all counts, which include receipt and possession of child pornography. Chapman-Sexton had been previously convicted of similar federal charges in 2010 and had been released from prison after serving his sentence. He was on supervised release when he committed the new offenses.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Westerville Police Chief Joe Morbitzer, Buckeye Lake Police Chief Jimmy Hanzey and members of the FBI’s Child Exploitation Task Force announced the verdict reached yesterday evening, which was returned following a trial that began on February 6 before U.S. District Judge Algenon L. Marbley.
According to court documents and testimony, a thumb drive in Chapman-Sexton’s Playstation contained more than 700 images of children engaged in sexual activity.
Despite the defendant’s claim that he had been set up and the child pornography was planted on the device when it was stolen on February 28, 2016, forensic evidence revealed that the child pornography had been downloaded continuously from July 2014 until February 27, 2016.
Chapman-Sexton was indicted by a federal grand jury of two counts of receipt of child pornography and one count of possession of child pornography on July 21, 2016.
Receipt of child pornography in this case is punishable by a range of 15 to 40 in prison per count because of Chapman-Sexton’s prior conviction. Likewise, because of the prior conviction, possession of child pornography in this case includes a potential maximum sentence of 20 years in prison.
This case was prosecuted by Assistant United States Attorneys Heather A. Hill and Jessica W. Knight. It was investigated by FBI’s Child Exploitation Task Force.
Indictment Charges Drug Company Manager with Engaging in a Kickback Scheme Related to Fentanyl Spray PrescriptionsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on February 8, 2017, a federal grand jury in New Haven returned an indictment charging JEFFREY PEARLMAN, 49, of Edgewood, N.J., with engaging in a kickback scheme that defrauded federal healthcare programs.
According to the indictment, from approximately September 2012 until December 2015, PEARLMAN was employed by Insys Therapeutics, an Arizona-based pharmaceutical company that manufactured and sold Subsys, a fentanyl-based sublingual spray that was approved by the Food and Drug Administration solely for the management of breakthrough pain in cancer patients. The company first hired PEARLMAN as a sales representative and subsequently promoted him to the position of District Sales Manager (DSM). As a DSM, PEARLMAN was responsible for managing the company’s sales representatives who called on licensed healthcare providers in Connecticut, New York, New Jersey and Rhode Island.
The indictment alleges that PEARLMAN and the sales representatives he managed induced certain physicians, advanced practice registered nurses (APRNs) and physicians’ assistants to prescribe Subsys by paying them to participate in hundreds of sham “Speaker Programs.” The Speaker Programs, which were typically held at high-end restaurants, were ostensibly designed to gather licensed healthcare professionals who had the capacity to prescribe Subsys and educate them about the drug. In truth, the events were usually just a gathering of friends and co-workers, most of whom did not have the ability to prescribe Subsys, and no educational component took place. “Speakers” were paid a fee that ranged from $1,000 to several thousand dollars for attending these dinners. At times, the sign-in sheets for the Speaker Programs were forged, with PEARLMAN’s knowledge, so as to make it appear that the programs had an appropriate audience of healthcare professionals.
The indictment alleges that Insys Therapeutics paid one Connecticut healthcare provider who participated in these sham Speaker Programs a total of approximately $83,500 in illegal kickbacks in order to induce the provider to prescribe the company’s fentanyl spray over similar medications. PEARLMAN authorized these payments.
It is alleged that PEARLMAN personally profited from this scheme through inflated quarterly bonuses he received that were based in large part on the sales results of the sales representatives he managed.
It is further alleged that this illegal kickback scheme caused millions of dollars of losses to federal healthcare programs.
The indictment charges PEARLMAN with one count of conspiracy to violate the anti-kickback law, an offense that carries a maximum term of imprisonment of five years and a fine of up to $250,000.
PEARLMAN was arrested a criminal complaint on September 29, 2016. He is released on a $200,000 bond.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the U.S. Department of Health and Human Services Office of the Inspector General and the Federal Bureau of Investigation, with the assistance of the Drug Enforcement Administration’s Tactical Diversion Squad. The case is being prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and Richard M. Molot.
U.S. Attorney Daly encouraged individuals who suspect health care fraud to report it by calling the Health Care Fraud Task Force (203) 785-9270 or 1-800-HHS-TIPS.
INFORMATION: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Cavan in Billings on February 10, 2017 and entering pleas of Not Guilty were:
- CAMERON EMANUEL FALLS DOWN aka GUTIERREZ, a 21-year-old resident of Lodge Grass, appeared on charges of attempted robbery. If convicted of the charge contained in the indictment, FALLS DOWN faces 15 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-04
- JAYLEN MIGUAL MEDICINE BULL, a 23-year-old resident of Northern Cheyenne, appeared on charges of attempted robbery. If convicted of the charge contained in the indictment, MEDICINE BULL faces 15 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-04
- PEARLIEJO SAMANTHA OLD DWARF, a 19-year-old resident of Lodge Grass, appeared on charges of attempted robbery. If convicted of the charge contained in the indictment, OLD DWARF faces 15 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-04
- JERREY EUGENE ROWLAND, a 22-year-old resident of Northern Cheyenne, appeared on charges of attempted robbery. If convicted of the charge contained in the indictment, ROWLAND faces 15 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-04
Appearing before U.S. Magistrate Johnston in Great Falls on February 9, 2017 and entering pleas of Not Guilty were:
- GREGORY ROSS GUARDIPEE, a 35-year-old resident of Browning, appeared on charges of strangulation. If convicted of the charge contained in the indictment, GUARDIPEE faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-07
- RAYMOND KARL YELLOW OWL, a 40-year-old resident of Browning, appeared on charges of assault resulting in substantial bodily injury to a dating partner, and assault of a dating partner by strangulation. If convicted of the most serious charge contained in the indictment, YELLOW OWL faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-13
Appearing before U.S. Magistrate Johnston in Great Falls on February 7, 2017 and entering pleas of Not Guilty were:
- NATALEE CHRISTINE CRUMLEY, a 24-year-old resident of Power, appeared on charges of wire fraud, aggravated identity theft, engaging in monetary transactions in property derived from specified unlawful activity. If convicted of the most serious charges contained in the indictment, CRUMLEY faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Internal Revenue Service Criminal Investigation Division. PACER Case Reference. 17-03
- THOMAS EDWARD MANCHA, a 60-year-old resident of Browning, appeared on charges of first degree murder. If convicted of the charge contained in the indictment, MANCHA faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 17-10
- FELIX VANSLYKE, JR., a 32-year-old resident of Lewistown, appeared on charges of felon in possession of a firearm, and possession of a firearm not registered in the National Firearms Registration and Transfer Record. If convicted of the charge contained in the indictment, VANSLYKE faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 17-58
Appearing before U.S. Magistrate Cavan in Billings on February 6, 2017 and entering pleas of Not Guilty were:
- BILLY JOE CHAVEZ, a 34-year-old resident of Billings, appeared on charges of distribution of methamphetamine. If convicted of the most serious charge contained in the indictment, CHAVEZ faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the FBI Task Force. PACER Case Reference. 17-03
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Heroin Trafficker Sentenced to 12 Years for Heroin Overdose DeathsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ROOSEVELT WILLIAMS, a/k/a “Mumsie,” 59, was sentenced to a term of 12 years in prison, and forfeiture of over $100,000 in drug proceeds and property, for his extensive heroin dealing in and around Poughkeepsie, New York. As set forth in WILLIAMS’s plea agreement, and the materials submitted in connection with sentencing, the distribution of that heroin resulted in both fatal and non-fatal overdoses. He was sentenced today in White Plains federal court by U.S. District Court Judge Nelson S. Román. On November 10, 2016, Tony Reynolds, 58, was sentenced, also by Judge Román to a term of 13 years in prison, and to forfeit $5,000 in drug proceeds, for his role in distributing heroin with WILLIAMS.
U.S. Attorney Preet Bharara stated: “Roosevelt Williams sold what became notorious in and around Poughkeepsie as a highly potent brand of heroin. And even as overdoses from Williams’s heroin grew, he continued to sell. For his cold-hearted drug dealing that contributed to the devastation of heroin abuse in our communities, the Court has handed down a stiff sentence of 12 years in prison. We hope this prosecution gives some measure of closure and comfort for the victims’ families, and we thank the Drug Enforcement Administration and our many local law enforcement partners for their extraordinary efforts on this case.”
According to the Complaints and Information filed in White Plains federal court, as well as statements made in connection with the plea and sentencing proceedings:
Over the course of several months, WILLIAMS and Reynolds conspired to sell significant quantities of a highly potent brand of heroin, dubbed “Empire” by a stamp on each bag sold, which had a devastating impact on users in and around Poughkeepsie, New York. The Empire brand became notorious among heroin users in the area as being particularly strong and posing a high risk of overdose. Even as this reputation and the number of overdoses grew, the defendants continued to sell significant quantities of Empire heroin virtually every day.
From at least in or about November 2015 through December 2015, law enforcement engaged in controlled purchases of Empire heroin on five occasions. Each of these sales was made by either WILLIAMS or Reynolds. Law enforcement recovered over $100,00 in cash and two firearms from WILLIAMS’s residence.
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Mr. Bharara praised the outstanding investigative work of the DEA and the Dutchess County Drug Task Force.
These cases are being handled by the Office’s White Plains Division. Assistant United States Attorneys Jennifer Burns, Maurene Comey, and Douglas Zolkind are in charge of the prosecutions.
Henderson Man Sentenced to over 10 Years for Possession of Child PornographyRead the Press Release
LAS VEGAS, Nev.–A Henderson, Nev., man was sentenced Thursday to 123 months in prison for possession of more than 600 images of child pornography, announced U.S. Attorney Daniel G. Bogden of the District of Nevada. As part of the sentencing, U.S. District Judge Lloyd D. George required the defendant to register as a sex offender.
“This case is a successful example of partnerships among a business, a nonprofit organization, and law enforcement in identifying, apprehending, and prosecuting a child sex predator,” said U.S. Attorney Bogden. “The child victims suffer for years following the exploitation. We will continue to use our combined resources to protect children from these heinous crimes.”
Daniel Robert Wardlaw, 23, pleaded guilty on Aug. 2, 2016, to possession of child pornography. He was charged on June 11, 2014. At the time of the crimes, Wardlaw was on state probation following a conviction for possession of child pornography.
According to admissions made in connection with his plea, in December 2013 and February 2014, the National Center for Missing and Exploited Children (NCMEC) received a tip from Instagram of suspected child pornography after Wardlaw uploaded images to the social networking site. The NCMEC forwarded the tips to law enforcement. During the execution of a search warrant of Wardlaw’s residence, law enforcement found more images of child pornography on computers, a Dropbox account, and an iPod. Law enforcement found evidence that Wardlaw exchanged child pornography with others and used his Dropbox account to store the images and videos. Wardlaw admitted that he possessed more than 600 images and videos of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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 and for information about internet safety education, please visit www.justice.gov/psc.
The case was investigated by the FBI; and prosecuted by Assistant U.S. Attorney Cristina D. Silva.
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Hardin County, Kentucky, Resident and Others Charged with Possessing and Using Multiple Counterfeit Credit Cards and Possessing the Equipment to Make the Fraudulent CardsRead the Press Release
LOUISVILLE, Ky. – A Hardin County, Kentucky resident and others, were arraigned in United States District Court today, before Magistrate Judge Dave Whalin, on multiple charges of possessing and using counterfeit credit cards and possessing the equipment to make the fraudulent cards announced United States Attorney John E, Kuhn, Jr.
Nkoski Kofibabafemi Kmt, Ahkim Volcy, (both of Henry, county, Georgia), Taray Riley, of Hardin County, and Javier Burbon, of Chicago, were charged in a six count federal grand jury indictment this week and following their arraignment today, remain in federal custody.
According to an Affidavit in support of a criminal complaint, the alleged us of the counterfeit credit cards is charged from January 28, 2017, to February 1, 2017 in Hardin County.
On January 28, 2017, the Elizabethtown Police Department receive a complaint that the charged defendants were at the Kroger Fuel Pumps on Towne Drive. They were driving automobiles with out of state tags from Georgia and Indiana and were allegedly attempting to use multiple credit cards with multiple, different, state IDs matching their credit cards.
On January 31, 2017, the Elizabethtown Police Department received another complaint from the same Kroger location, advising that the same two vehicles were back and several subjects were attempting to purchase gift cards, using credit cards. The vehicle descriptions and vehicle tags were the same as before.
On February 1, 2017, officers with the Radcliff Police Department located the two vehicles at a home off Shelton Road in Radcliff. A search warrant was obtained and multiple credit cards, card blanks, card reader/scanners, a laptop and an embosser, as well as fraudulent credit cards and identifications.
If convicted at trial, the defendants could be sentenced to up to 10 years for each charge of using and possessing more than 15 counterfeit credit cards, and fifteen years for possession of equipment to make counterfeit credit cards.
This case is being prosecuted by Assistant United States Attorney H. Joseph Pinto III, and is being investigated by the United States Secret Service with assistance from the Elizabethtown and Radcliff Police Departments.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty
Garysburg Man Sentenced for Possession of a Firearm by a FelonRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court yesterday, United States District Judge Louise W. Flanagan sentenced KHAALID SHARIF FREDERICK, 36, of a Garysburg, NC to 80 months of imprisonment followed by 3 years of supervised release.
FREDERICK pled guilty on August 16, 2016 to being a Felon in Possession of a Firearm.
On November 24, 2015, the Roanoke Rapids Police Department
received a 911 call from FREDERICK’S mother requesting assistance indicating that her son was at her residence and out of control.
Four officers were dispatched to the scene. Upon arriving at the residence a standoff ensued. After several hours, FREDERICK exited the residence and surrendered. A search of the residence revealed the loaded .40 caliber pistol.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
The criminal investigation of this case was conducted by the Roanoke Rapids Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney S. Katherine Burnette is handling the case on behalf of the government.
Gang Member Pleads Guilty to Robbery and Firearm Charges Related to 2011 MurderRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on February 8, 2017, TREVOR MURPHY, also known as “Snookie,” 28, of West Haven, pleaded guilty before Chief U.S. District Judge Janet C. Hall in New Haven to federal robbery and firearm charges related to the murder of Joseph Zargo on December 23, 2011.
This matter stems from an investigation into a criminal enterprise known as the Red Side Guerilla Brims (“RSGB”), a sect of the Bloods street gang that operated in New Haven from 2011 through 2015, which was engaged in narcotics trafficking and related acts of violence, including murder, attempted murder, assaults and armed robberies. MURPHY was a member of RSGB.
According to court documents and statements made in court, MURPHY ordered a quantity of ecstasy from Joseph Zargo as part of a plan to rob him of drugs and cash. Just after midnight on December 23, 2011, MURPHY met Zargo on Houston Street in New Haven. After MURPHY took ecstasy pills from Zargo, he pulled out a firearm. When Zargo reached into his pocket, MURPHY shot Zargo once in the chest. Zargo died later that morning.
MURPHY pleaded guilty to one count of interference with commerce by robbery, an offense that carries a maximum term of imprisonment of 20 years, and one count of using a firearm during and in relation to a crime of violence, an offense that carries a consecutive term of imprisonment of at least 10 years and a maximum term of imprisonment of life.
Under the terms of a binding plea agreement, if accepted by the court, the parties have agreed that a term of imprisonment of 360 months is an appropriate sentence in this case.
Chief Judge Hall scheduled sentencing for May 3, 2017.
MURPHY has been detained since his arrest on September 30, 2015.
This investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Haven Police Department, the Connecticut Department of Correction, the Connecticut State Police, the U.S. Drug Enforcement Administration, the Maine Drug Enforcement Agency and the Hamden Police Department. The New Haven State’s Attorney’s Office also provided critical assistance in the investigation.
An instrumental component of the investigation has been the work of the Connecticut State Crime Laboratory in utilizing the National Integrated Ballistic Information Network (NIBIN) to analyze ballistics evidence.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Robert Spector, Peter Markle and Jocelyn Kaoutzanis. A related case in the District of Maine is being prosecuted by Assistant U.S. Attorney Joel Casey.
Four Chicago Men Charged with Federal Narcotics Violations for Operating Busy South Side Heroin MarketRead the Press Release
CHICAGO — Four Chicago men have been arrested on federal drug charges for allegedly operating a busy heroin trade in the Douglas neighborhood on the city’s South Side.
A joint federal and state investigation, led by the U.S. Drug Enforcement Administration and the Chicago Police Department, revealed that the defendants were selling heroin via a shared cellular phone number known as the “Vanna White Line.” Individuals wishing to purchase heroin would call the Vanna White Line to place an order, and the defendants would arrange to meet the customer to conduct the transaction, according to a criminal complaint filed in U.S. District Court in Chicago. The drug deals would often take place in the 3500 block of South Calumet Avenue and other parts of the Douglas neighborhood, the complaint states. Over a six-month period in 2016, there were approximately 193,720 calls to the Vanna White Line, according to the complaint.
The investigation, dubbed “Operation Wheel of Fortune,” used wiretaps, controlled drug purchases and extensive surveillance to uncover the heroin operation. The probe was conducted under the umbrella of the High Intensity Drug Trafficking Area Task Force (HIDTA). The investigation also led to narcotics charges in state court against several other defendants.
The federal complaint was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Dennis A. Wichern, Special Agent-in-Charge of the Chicago Field Division of the DEA; and Eddie Johnson, Superintendent of the Chicago Police Superintendent. The U.S. Marshals Service and the Hickory Hills Police Department provided valuable assistance.
The federal defendants, JOSEPH THOMPSON, 33, MARIO COOPER, 28, DEWAYNE BOLDEN, 26, and DEVANTE REED, 23, were arrested Thursday. They are each charged with conspiracy to possess a controlled substance with the intent to distribute. They appeared Thursday before U.S. Magistrate Judge Michael T. Mason and were ordered to remain in federal custody pending detention hearings next week.
According to the complaint, the Vanna White Line was selling approximately 130 grams of heroin every two days. The heroin was allegedly stored in an apartment in the 4700 block of South Martin Luther King Drive in Chicago.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The federal drug conspiracy charge carries a minimum sentence of five years in prison and a maximum of 40 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is represented in federal court by Assistant U.S. Attorneys Scott Edenfield and Cornelius Vandenberg.
Former University Business Professor sentenced to Prison for Hiding over $220 Million in Offshore BanksRead the Press Release
A now retired business school professor, who amassed a $220 million fortune in secret foreign accounts, was sentenced to seven months in prison today for conspiring to defraud the United States and to submit a false expatriation statement to the Internal Revenue Service (IRS), announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Dana J. Boente for the Eastern District of Virginia. He also has been assessed and paid a $100 million civil penalty for his concealment of these accounts.
“For 15 years, Dan Horsky stashed assets and hid income offshore in secret bank accounts,” said Acting Deputy Assistant Attorney General Goldberg. “That scheme came to an abrupt end when IRS special agents came knocking on his door. The days of hiding behind shell corporations and foreign bank secrecy laws are over. Now is the time for accountholders to come in, accept responsibility, and help ensure that the lawyers, financial advisers and other professionals who actively facilitated offshore evasion also are held accountable.”
“Hiding assets and creating secret accounts in an attempt to evade income taxes is a losing game,” said U.S. Attorney Boente. “Horsky went to great lengths to hide assets overseas in order to avoid paying his share of taxes to the IRS. Today’s sentence shows that we will continue to prosecute bankers and U.S. citizens who engage in this criminal activity. I want to thank IRS-Criminal Investigation and our prosecutors for their work on this important case.”
“Mr. Horsky’s criminal actions to evade his federal income tax obligations were particularly flagrant and unacceptable,” said Chief Richard Weber of IRS Criminal Investigation (CI). “Together with our law enforcement partners, IRS-CI will continue to unravel complex financial transactions and hold those accountable who hide assets offshore and dodge the tax system. IRS-CI special agents are the best financial investigators and we will continue to follow the money trail wherever it may lead.”
According to documents filed with the court and statements made during the sentencing hearing, Dan Horsky, 71, formerly of Rochester, New York, is a citizen of the United States, the United Kingdom and Israel who served for more than 30 years as a professor of business administration at a university located in New York. Beginning in approximately 1995, Horsky invested in numerous start-up companies, virtually all of which failed. One investment in a business referred to as Company A, however, succeeded spectacularly. In 2000, Horsky transferred his investments into a nominee account in the name of “Horsky Holdings” at an offshore bank in Zurich, Switzerland (the “Swiss Bank”) to conceal his financial transactions and accounts from the IRS and the U.S. Treasury Department.
In 2008, Horsky received approximately $80 million in proceeds from selling Company A’s stock. Horsky filed a fraudulent 2008 tax return that underreported his income by more than $40 million and disclosed only approximately $7 million of his gain from the sale. The Swiss Bank opened multiple accounts for Horsky to assist him in concealing his assets: including one small account for which Horsky admitted that he was a U.S. citizen and resident and another much larger account for which he claimed he was an Israeli citizen and resident. Horsky took some of his gains from selling Company A’s stock and invested in Company B’s stock. By 2015, Horsky’s offshore holdings hidden from the IRS exceeded $220 million.
Horsky directed the activities in his Horsky Holdings’ account and the other accounts he maintained at the Swiss Bank, despite the fact that he made no effort to conceal that he was a U.S. resident. In 2012, Horsky arranged for an individual referred to as Person A to take nominal control over his accounts at the Swiss Bank because the bank was closing accounts controlled by U.S. persons. The Swiss Bank later helped Person A relinquish that individual’s U.S. citizenship, in part to ensure that Horsky’s control over the offshore accounts would not be reported to the IRS. In 2014, Person A filed a false Form 8854 (Initial Annual Expatriation Statement) with the IRS that failed to disclose his net worth on the date of expatriation, failed to disclose his ownership of foreign assets, and falsely certified under penalties of perjury that he was in compliance with his tax obligations for the five preceding tax years.
Horsky’s tax evasion scheme ended in 2015 when IRS special agents confronted him at home regarding his concealment of his foreign financial accounts.
Horsky willfully filed fraudulent federal income tax returns that failed to report his income from, and beneficial interest in and control over, his foreign financial accounts. In addition, Horsky failed to file Reports of Foreign Bank and Financial Accounts (FBARs) up and through 2011, and also filed fraudulent 2012 and 2013 FBARs. In total, in a 15-year tax evasion scheme, Horsky evaded more than $18 million in income and gift tax liabilities.
In addition to the term of prison imposed, Horsky was ordered to serve one year of supervised release and to pay a fine of $250,000. As part of his plea agreement, Horsky also paid a penalty of $100 million dollars to the U.S. Treasury for failing to file, and filing false, FBARs and paid over $13 million in taxes owed to the IRS.
Acting Deputy Assistant Attorney General Stuart M. Goldberg and U.S. Attorney Boente commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel Mark F. Daly and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Mark Lytle of the Eastern District of Virginia, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former CEO sentenced to 33 months in federal prisonRead the Press Release
Avon man embezzled over $580,000 from the Hendricks Power Cooperative
PRESS RELEASE
Indianapolis – United States Attorney Josh Minkler announced today that Donnis Mizelle, 56, of Avon, Indiana, the former Chief Executive Officer of the Hendricks Power Cooperative (HPC), a local electric utility, was sentenced to 33 months in federal prison by U.S. District Judge Sarah Evans Barker following his plea of guilty to having defrauding HPC out of over half a million dollars.
“We place a tremendous amount of trust and responsibility in our business leaders, particularly our CEOs,” Minkler said. “Exploiting that trust for purely personal gain causes more than financial harm. It devastates employee morale, shakes the confidence of customers, and contributes to a belief that the system is rigged in favor of those at the top. This office will vigorously prosecute executives who betray the special trust we place in them.”
HPC is a rural electric membership corporation responsible for bringing electric power to rural areas throughout Hendricks County. Today, HPC provides electricity for approximately 30,000 Hendricks County residents. As a cooperative, HPC is still owned by – and for – the residents its serves.
Mizelle had been the cooperative’s CEO since 2003. Despite his legitimate six figure income, federal investigators found that Mizelle treated HPC’s bank account as if it were his own. FBI agents and forensic accountants investigated Mizelle’s expense report entries dating back to 2009 and found over 1,800 personal purchases that Mizelle fraudulently disguised as legitimate business expenses.
In all, Mizelle falsified nearly every one of his expense reports for over six years and caused HPC to pay for over $580,000 in personal expenses ranging from luxury items to every day expenses: vacations to Europe and Florida, sapphire jewelry, iPhones and iPads, tickets to Colts, Pacers, and Indians games, guns and ammunition, lawn equipment, clothing items, wine, groceries and brunch on Mother’s Day.
Assistant United States Attorney Nick Linder, who prosecuted the case for the government, said that Mizelle must pay full restitution to the victim of the offense and, even before his sentencing, he had paid $300,000 toward it. Additionally, Mizelle must serve 1 year of supervised release following his prison sentence.
Former Business Professor Sentenced to Prison for Hiding over $220 Million in Offshore BanksRead the Press Release
ALEXANDRIA, Va. – Dan Horsky, 71, formerly of Rochester, New York, who amassed a $220 million fortune in secret foreign accounts, was sentenced today to seven months in prison for conspiring to defraud the United States and to submit a false expatriation statement to the Internal Revenue Service (IRS). As part of his plea agreement, Horsky paid a civil penalty of $100 million to the U.S. Treasury for failing to file and filing false Foreign Bank and Financial Accounts.
“Hiding assets and creating secret accounts in an attempt to evade income taxes is a losing game,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Horsky went to great lengths to hide assets overseas in order to avoid paying his share of taxes to the IRS. Today’s sentence shows that we will continue to prosecute bankers and U.S. citizens who engage in this criminal activity. I want to thank IRS-Criminal Investigation and our prosecutors for their work on this important case.”
According to documents filed with the court and statements made during the sentencing hearing, Dan Horsky, 71, formerly of Rochester, New York, is a citizen of the United States, the United Kingdom and Israel who served for more than 30 years as a professor of business administration at a university located in New York. Beginning in approximately 1995, Horsky invested in numerous start-up companies, virtually all of which failed. One investment in a business referred to as Company A, however, succeeded spectacularly. In 2000, Horsky transferred his investments into a nominee account in the name of “Horsky Holdings” at an offshore bank in Zurich, Switzerland (the “Swiss Bank”) to conceal his financial transactions and accounts from the IRS and the U.S. Treasury Department.
“For 15 years, Dan Horsky stashed assets and hid income offshore in secret bank accounts,” said Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division. “That scheme came to an abrupt end when IRS special agents came knocking on his door. The days of hiding behind shell corporations and foreign bank secrecy laws are over. Now is the time for accountholders to come in, accept responsibility, and help ensure that the lawyers, financial advisers and other professionals who actively facilitated offshore evasion also are held accountable.”
In 2008, Horsky received approximately $80 million in proceeds from selling Company A’s stock. Horsky filed a fraudulent 2008 tax return that underreported his income by more than $40 million and disclosed only approximately $7 million of his gain from the sale. The Swiss Bank opened multiple accounts for Horsky to assist him in concealing his assets: including one small account for which Horsky admitted that he was a U.S. citizen and resident and another much larger account for which he claimed he was an Israeli citizen and resident. Horsky took some of his gains from selling Company A’s stock and invested in Company B’s stock. By 2015, Horsky’s offshore holdings hidden from the IRS exceeded $220 million.
“Mr. Horsky’s criminal actions to evade his federal income tax obligations were particularly flagrant and unacceptable,” said Richard Weber, Chief of IRS Criminal Investigation (CI). “Together with our law enforcement partners, IRS-CI will continue to unravel complex financial transactions and hold those accountable who hide assets offshore and dodge the tax system. IRS-CI special agents are the best financial investigators and we will continue to follow the money trail wherever it may lead.”
Horsky directed the activities in his Horsky Holdings’ account and the other accounts he maintained at the Swiss Bank, despite the fact that he made no effort to conceal that he was a U.S. resident. In 2012, Horsky arranged for an individual referred to as Person A to take nominal control over his accounts at the Swiss Bank because the bank was closing accounts controlled by U.S. persons. The Swiss Bank later helped Person A relinquish that individual’s U.S. citizenship, in part to ensure that Horsky’s control over the offshore accounts would not be reported to the IRS. In 2014, Person A filed a false Form 8854 (Initial Annual Expatriation Statement) with the IRS that failed to disclose his net worth on the date of expatriation, failed to disclose his ownership of foreign assets, and falsely certified under penalties of perjury that he was in compliance with his tax obligations for the five preceding tax years.
Horsky’s tax evasion scheme ended in 2015 when IRS special agents confronted him at home regarding his concealment of his foreign financial accounts.
Horsky willfully filed fraudulent federal income tax returns that failed to report his income from, and beneficial interest in and control over, his foreign financial accounts. In addition, Horsky failed to file Reports of Foreign Bank and Financial Accounts (FBARs) up and through 2011, and also filed fraudulent 2012 and 2013 FBARs. In total, in a 15-year tax evasion scheme, Horsky evaded more than $18 million in income and gift tax liabilities.
In addition to the term of prison imposed, Horsky was ordered to serve one year of supervised release and to pay a fine of $250,000.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Stuart M. Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division; and Richard Weber, Chief of IRS Criminal Investigation (CI), made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorney Mark Lytle, Senior Litigation Counsel Mark F. Daly, and Trial Attorney Robert J. Boudreau of the Tax Division 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. 1:16-cr-224.
Former Army National Guardsman Sentenced to 11 Years for Attempting to Provide Material Support to ISILRead the Press Release
Mohamed Bailor Jalloh, 27, of Sterling, Virginia, and a former member of the Army National Guard, was sentenced today to 11 years in prison and five years supervised release for attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Dana J. Boente for the Eastern District of Virginia and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office made the announcement after sentencing by U.S. District Judge Liam O’Grady.
Jalloh pleaded guilty on Oct. 27, 2016. According to court documents, in March 2016, a now-deceased member of ISIL who was located overseas brokered an introduction between Jalloh and an individual in the U.S. who was actually an FBI confidential human source (CHS). The ISIL member was actively plotting an attack in the U.S. and believed the attack would be carried out with the assistance of Jalloh and the CHS. Jalloh met with the CHS on two occasions and told the CHS he was a former member of the Virginia Army National Guard, but that he decided not to re-enlist after listening to online lectures by Anwar al-Awlaki, a deceased leader of Al-Qaeda in the Arabian Peninsula.
Jalloh had recently taken a six-month trip to Africa where he had met with ISIL members in Nigeria and first began communicating online with the ISIL member who later brokered his introduction to the CHS. During their meeting, Jalloh also told the CHS he thought about conducting an attack all the time, and that he was close to doing so at one point.
Jalloh claimed to know how to shoot guns and praised the gunman who killed five U.S. military members in a terrorist attack in Chattanooga, Tennessee, in July 2015. Jalloh also stated he had been thinking about conducting an attack similar to the terrorist attack at Ft. Hood, Texas, in November 2009, which killed 13 people and wounded 32 others.
According to the statement of facts filed with the plea agreement, during the May 2016 meeting, Jalloh asked the CHS about the timeline for an operation and commented that it was better to plan an attack operation for the month of Ramadan, and stated that such operations are, “100 percent the right thing.” Jalloh also asked if the CHS could assist him in providing a donation to ISIL. Ultimately, Jalloh provided a prepaid cash transfer of $500 to a contact of the CHS that Jalloh believed was a member of ISIL, but who was in fact an undercover FBI employee.
According to the statement of facts filed with the plea agreement, in June 2016, Jalloh travelled to North Carolina and made an unsuccessful attempt to obtain firearms. On July 2, 2016 Jalloh went to a gun dealership in northern Virginia, where he test-fired and purchased an assault rifle. Unbeknownst to Jalloh, the rifle was rendered inoperable before he left the dealership with the weapon. Jalloh was arrested the following day and the FBI seized the rifle.
Assistant U.S. Attorney John T. Gibbs and Special Assistant U.S. Attorney Brandon L. Van Grack for the Eastern District of Virginia, and Trial Attorney Jolie Zimmerman of the National Security Division’s Counterterrorism Section prosecuted the case.
Former Army National Guardsman Sentenced for Attempting to Provide Material Support to ISILRead the Press Release
ALEXANDRIA, Va. – Mohamed Bailor Jalloh, 27, of Sterling, a former member of the Army National Guard, was sentenced today to 11 years in prison for attempting to provide material support to a designated foreign terrorist organization, namely the Islamic State of Iraq and the Levant (ISIL).
Jalloh pleaded guilty on Oct. 27, 2016. According to court documents, in March 2016, a now-deceased member of ISIL brokered an introduction between Jalloh and an individual in the United States who was actually an FBI confidential human source (CHS). The ISIL member was actively plotting an attack in the United States and believed the attack would be carried out with the assistance of Jalloh and the CHS. Jalloh met with the CHS on two occasions and told the CHS he was a former member of the Virginia Army National Guard, but that he decided not to re-enlist after listening to online lectures by Anwar al-Awlaki, a deceased leader of Al-Qaeda in the Arabian Peninsula. Jalloh had recently taken a six-month trip to Africa where he had met with ISIL members in Nigeria and first began communicating online with the ISIL member who later brokered his introduction to the CHS. During their meeting, Jalloh also told the CHS he thought about conducting an attack all the time, and that he was close to doing so at one point. Jalloh claimed to know how to shoot guns and praised the gunman who killed five U.S. military members in a terrorist attack in Chattanooga, Tennessee, in July 2015. Jalloh also stated he had been thinking about conducting an attack similar to the attack at Ft. Hood, Texas, in November 2009, which killed 13 people and wounded 32 others.
According to the statement of facts filed with the plea agreement, during the May 2016 meeting, Jalloh asked the CHS about the timeline for an operation and commented that it was better to plan an attack operation for the month of Ramadan, and stated that such operations are, “100 percent the right thing.” Jalloh also asked if the CHS could assist him in providing a donation to ISIL. Ultimately, Jalloh provided a prepaid cash transfer of $500 to a contact of the CHS that Jalloh believed was a member of ISIL, but who was in fact an undercover FBI employee.
According to the statement of facts filed with the plea agreement, in June 2016, Jalloh travelled to North Carolina and made an unsuccessful attempt to obtain a firearm. On July 2, Jalloh went to a gun dealership in northern Virginia, where he test-fired and purchased an assault rifle. Unbeknownst to Jalloh, the rifle was rendered inoperable before he left the dealership with the weapon. Jalloh was arrested the following day and the FBI seized the rifle.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office; and Mary B. McCord, Acting Assistant Attorney General for National Security, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney John T. Gibbs, Special Assistant U.S. Attorney Brandon L. Van Grack, and Trial Attorney Jolie Zimmerman of the National Security Division’s Counterterrorism Section 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. 1:16-mj-296.
Fontana Man Agrees to Plead Guilty to Federal Charges of Pointing Laser Beam at Law Enforcement HelicopterRead the Press Release
RIVERSIDE, California – An Inland Empire man is scheduled to be arraigned this afternoon on federal charges of aiming the beam of a laser at an Ontario Police Department helicopter.
Asarel Felix Lombera, 28, who resides in Fontana, but lived in Ontario at the time of the offense, has agreed to plead guilty to the felony offense of aiming a laser at an aircraft. He is scheduled to make his initial appearance this afternoon in United States District Court in Los Angeles.
When Lombera was charged in December, prosecutors also filed a plea agreement in which the defendant admitted that he pointed a laser at the Ontario Police Department helicopter on the evening of February 21, 2015.
The incident occurred as tactical flight officers with the Ontario Police Department were conducting patrol near John Galvin Park, which is just south of Interstate 10 in Ontario. Lombera aimed his $20 green laser pointer at the OPD helicopter for approximately 15 seconds, tracking the helicopter with the laser and making circles with the beam.
When the laser beam struck the helicopter, it created a prism effect in the cockpit of the helicopter, causing a member of the flight crew to become momentarily dazed and creating a dangerous flight situation.
In his plea agreement, Lombera admitted that he knew that it was dangerous and distracting to shoot the laser at the helicopter.
“As lasers and drones become more affordable and available, members of the public must be extremely conscious of the dangers these technologies pose to aircraft and law enforcement,” said United States Attorney Eileen M. Decker. “In this case, the defendant targeted a helicopter in flight, endangering the flight crew and, potentially, civilians on the ground.”
During today’s arraignment, Lombera’s case will be assigned to a United States District Judge, who will schedule a hearing for Lombera to enter his guilty plea. Once he pleads guilty, the defendant will face a statutory maximum penalty of five years in federal prison. Lombera will also be subject to potential civil penalties by the Federal Aviation Administration.
“Laser beams are not toys and pointing one at a plane or helicopter in the air is not mischief, but a serious federal crime,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The clear skies in southern California generate a significant amount of aircraft flying at any given time and, unfortunately, more illegal laser strikes. The Ontario Police Department should be commended for acting quickly after their pilot was temporarily disabled by the laser beam, and for identifying the perpetrator on the ground.”
The investigation in this case was conducted by the Federal Bureau of Investigation and the Ontario Police Department. The case is being prosecuted by Assistant United States Attorney Joseph B. Widman, Chief of the Riverside Branch Office.
Reports of laser attacks have increased dramatically in recent years, with 1,238 laser strikes reported in California last year, according to the Federal Aviation Administration. In addition, technology has advanced the effectiveness of laser devices, with a resulting increase in the potential safety hazards for aircraft pilots and their passengers. Such safety hazards include temporary distraction and impaired vision, which is particularly dangerous during the critical takeoff or landing phase of flight. In addition, pilots have reported the need to abort landings or relinquish control of the aircraft to another pilot as a result of laser attacks.
Five Charged in Steroid Distribution ConspiracyRead the Press Release
Jacksonville, FL – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Donald McCloud Long (50), Sarah Ann Long (33), Armando F. Aman (37), all of Jacksonville, and Shelby Travis Phillips (26, Savannah, GA) with conspiracy to manufacture, distribute and possess with the intent to distribute, anabolic steroids. Taylor Salvione (25, Gloversville, NY) was also charged separately for the same offense. If convicted, each faces a 10-year term of imprisonment and a $500,000 fine.
According to the indictment, from in or about December 2013, through on or about September 27, 2016, the defendants conspired to manufacture, distribute, and possess with intent to distribute anabolic steroids, a Schedule III controlled substance. Salvione is charged with participating in the conspiracy from March 2015 through April 2016.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
These cases were part of Operation Total Package, led by the Drug Enforcement Administration (DEA). It was a collaboration among the DEA, the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Postal Inspection Service, the U.S. Customs and Border Patrol, the Jacksonville Sheriff’s Office, the Jacksonville Beach Police Department, the Green Cove Springs Police Department, the Internal Revenue Service – Criminal Investigation, and the U.S. Anti-Doping Agency. It is being prosecuted by Assistant United States Attorney Kelly S. Karase.
Federal jury finds Shreveport mental health facility administrator guilty of kickback schemeRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a federal jury found a former Shreveport mental health facility administrator guilty Thursday of taking part in a kickback scheme.
Tom McCardell, 64, of Lafayette, La., was found guilty of 14 counts of paying illegal kickbacks. After the conclusion of the four-day trial, the jury deliberated approximately four hours before delivering the guilty verdict. United States District Judge Elizabeth E. Foote presided over the trial. According to the evidence presented, from July of 2011 to November 2012, McCardell operated a kickback scheme while he was administrator of Physicians Behavior Hospital (PBH) in Shreveport. He paid kickbacks to an Alabama resident, who had no medical training or background, to recruit and refer patients to PBH for psychiatric and substance abuse treatment. The hospital would then purchase bus tickets for the patients to travel to PBH in Shreveport. Many of the patients traveled unattended without escort. To avoid detection and suspicion, the defendant arranged for the kickbacks to be issued in the name of the patient recruiter’s son. The defendant also ordered PBH personnel to create an “employee file” in the name of the recruiter’s son in order to provide cover for the illegal kickback arrangement between the defendant and the recruiter. During the scheme, McCardell caused the hospital to pay the recruiter’s son checks totaling $41,000 to which he was not entitled. As a result of the illegal kickback scheme, the hospital billed more than $6.7 million dollars to Medicare and was paid more than $1.2 million dollars.
McCardell faces up to five years in prison, three years of supervised release and $250,000 fine for each count.
The Health and Human Services-Office of Inspector General and the FBI investigated the case. Assistant U.S. Attorneys Earl M. Campbell and Tennille M. Gilreath are prosecuting the case.
Federal Jury Convicts on Sex Trafficking and Involuntary Servitude ChargesRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Rita Law, 58, of Chicago, Illinois, and Crystal Wireman, 32, of Lake Station, Indiana, were found guilty today following a 3-week jury trial.
The jury rendered guilty verdicts on all counts against Defendant Rita Law. Law was initially charged in October 2013 with transporting a woman in interstate commerce with intent that the woman engage in prostitution. On the day she was charged, Law fled to Hong Kong. Upon her arrival in Hong Kong, Law was apprehended and extradited to the United States. Thereafter, a grand jury sitting in Hammond, Indiana brought additional charges against Law for sex trafficking and involuntary servitude and for using an interstate facility to promote prostitution.
Because these additional charges were brought against Law by the United States after she was extradited, Article 16 of the Agreement between the Government of Hong Kong and the Government of the United States for the Surrender of Fugitive Offenders required the United States to seek consent to proceed on the new charges, which was granted
According to testimony and evidence presented at trial, Law provided and obtained the labor and services of two victims, referred to at trial as HV and XC, by means of a scheme, plan and pattern intended to cause them to believe that if they did not perform the labor and service, they would suffer serious harm and physical restraint. Law caused both women to work at her “spas” in Northwest Indiana, where they were expected to and did engage in sexual acts in exchange for money with Law’s predominantly male clientele. Law’s businesses were called “Duneland Spa” in Lake Station and Gary, Indiana and “Fun Fun Feet” in Hobart, Indiana. Law was also convicted of transporting victim XC in interstate commerce with intent that she engage in prostitution and using a telephone to promote, manage, establish, carry on and facilitate prostitution in violation of Indiana Code.
The jury also convicted Defendant Crystal Wireman of using a telephone to promote, manage, establish, carry on and facilitate prostitution in violation of Indiana Code § 35-45-4-2 and § 35-45-4-4. According to testimony and evidence presented at trial, Wireman worked as a masseuse at Law’s spas in Hobart and Gary, Indiana and assisted Law in managing her prostitution business.
This case was prosecuted as a result of an investigation by the Federal Bureau of Investigation and Homeland Security Investigations, with assistance from the Gary Police Department, the Hammond Police Department, the Hobart Police Department, the Lake Station Police Department, the Lake County Sheriff’s Office, and the Oak Forest (Illinois) Police Department. This case was prosecuted by Assistant United States Attorneys Jill Koster and Abizer Zanzi.
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Elkins woman pleads guilty to role in crystal meth distributionRead the Press Release
ELKINS, WEST VIRGINIA – Kayliegh Marre Hartley, 29, of Elkins, West Virginia, was convicted for her role in a methamphetamine distribution operation, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Hartley admitted today to traveling from West Virginia to Virginia in February 2016 to deliver $3,000 from the sale of crystal meth.
Hartley pled guilty to one count of “Interstate Travel in Furtherance of a Drug Crime.” She faces up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crimes Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Elkins man pleads guilty to methamphetamine distributionRead the Press Release
ELKINS, WEST VIRGINIA – Sean Michael Moser, 27, of Elkins, West Virginia, was convicted for methamphetamine distribution, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Moser admitted today to participating in a methamphetamine distribution operation from May 2013 to October 2016 in Randolph County.
Moser pled guilty to one count of “Conspiracy to Distribute Methamphetamine.” He faces up to twenty years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crimes Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Donnie Marks Sentenced for Role in Fortune Telling SchemeRead the Press Release
Charlottesville, VIRGINIA – The former business manager of a fortune-teller business located on Seminole Trail in Charlottesville was sentenced today in Federal court on charges that he committed mail fraud and laundered more than $1 million in money stolen from victims by his wife and co-defendant, Acting United States Attorney Rick A. Mountcastle announced.
Donny Stephen Marks, 43, of Charlottesville, previously pled guilty to one count of mail fraud and one count of money laundering. Today in U.S. District Court in Charlottesville, Donny Marks was sentenced to 33 months in federal prison and four years of supervised releases thereafter. His wife, Sandra Stephenson Marks, a.k.a. “Catherine Marks,” 42, also of Charlottesville, previously pled guilty to one count of mail fraud and one count of money laundering. In November 2016 she was sentenced to 30 months in federal prison. The two have been ordered to repay over $5.4 million in restitution to the victims of their scheme.
According to evidence presented at previous hearings by Assistant United States Attorney Ronald M. Huber, Sandra Marks and Donnie Marks operated the business “Readings by Catherine” on Seminole Trail in Charlottesville, which offered services such as palm readings, candle readings, tarot card readings, astrological readings and spiritual readings to clients. Sandra Marks provided direct customer services while Donnie Marks managed the affairs of the business.
Sandra Marks has admitted, through a statement of facts submitted to the court and signed by the defendant, that she enriched herself by telling her clients she was clairvoyant and able to see into the past and the future. Marks also said she told her clients she had a “gift from god” and was able to communicate with spirits and guides from god, including the “Prince of Illusion,” who relayed information to her about clients.
Sandra Marks further admitted that she would tell clients that she had learned from the spirits and guides that the client, and/or the client’s family, was suffering from a “curse” and a “dark cloud” that occurred in the past. Marks would tell clients they would need to make a sacrifice of large amounts of money and valuables, whereby she would bury the money and items in a box to be “cleansed.” Marks explained to her clients that the money and property would be returned once the “work” was complete. Additionally, Marks would tell the clients that the money and property would not be used for Marks’ own personal benefit.
Donny Marks role in the scheme was one of a business manager, both of his wife and the proceeds from the scheme. Donny Marks admitted through a signed statement of facts submitted to the court that he managed Sandra Marks’ work, opened business bank accounts and transferred funds between business and personal bank accounts.
Contrary to her representations to clients, Donnie Marks and Sandra Marks kept and used money and other valuables provided by their clients for their own personal use and enjoyment and that of their family. When Sandra and Donnie Marks had used all of a client’s money, Sandra and Donnie Marks would find new clients to fund the scheme, or tell old clients that additional money was required to continue her “work.”
The investigation of the case was conducted by U.S. Immigration and Custom Enforcement’s Homeland Security Investigations, the United States Postal Inspection Service, the United States Secret Service, the Virginia Attorney General’s Office and the Albemarle County Police Department. Assistant United States Attorney Ronald M. Huber prosecuted the case for the United States.
California Man Sentenced to 8 Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
BOISE – Efrain Guzman-Castro, 42, of Woodland, California, was sentenced yesterday in United States District Court to 96 months in prison for conspiracy to distribute methamphetamine and distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered that Guzman-Castro serve four years of supervised release and forfeit $2,986 in drug proceeds.
According to evidence presented in court, Guzman-Castro conspired with others to distribute large quantities of methamphetamine in the state of Idaho in early 2016. Guzman-Castro arranged with co-conspirators for delivers of methamphetamine in the Canyon County, Idaho, and Malheur County, Oregon, area. Investigating officers discovered the conspiracy and were able to make several controlled purchases of methamphetamine from Guzman-Castro and his co-conspirators.
Co-conspirator, Cinthia J. Velazquez, 28, of Woodland, California, also pleaded guilty to conspiracy to distribute methamphetamine and distribution of methamphetamine on December 12, 2016, and she is scheduled to be sentenced on March 13, 2017, before Chief U.S. District Judge B. Lynn Winmill.
The case was investigated by the Idaho State Police, the Drug Enforcement Administration, and the Nampa Police Department.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
Bradenton Man Sentenced to Ten Years for Possessing A Loaded Firearm and HeroinRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Brandon Williams (31, Bradenton) to 10 years in federal prison for possessing a firearm and ammunition as a convicted felon, and knowingly possessing heroin with an intent to distribute. The Court also ordered him to forfeit the firearm and ammunition involved in the offense.
Williams was found guilty by a federal jury on November 10, 2016.
According to court documents, on June 13, 2015, Williams possessed a firearm and heroin. The firearm was loaded with nine rounds of .40 caliber ammunition. A law enforcement aviation unit observed Williams attempting to discard the firearm and heroin as officers arrived at the scene on foot. As a previously convicted felon, Williams is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Kaitlin R. O’Donnell and Carlton C. Gammons.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Aryan Brotherhood of Texas Members/Associates Convicted for Roles in Methamphetamine Distribution Conspiracy Sentenced to Lengthy Prison SentencesRead the Press Release
FORT WORTH, Texas — Seven defendants, including members and associates of the Aryan Brotherhood of Texas prison gang, who were convicted in September 2016 following a four-day jury trial for their roles in a methamphetamine distribution conspiracy that operated in north Texas from approximately January 2014 to April 2016 were sentenced this week by U.S. District Judge John McBryde. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.
Each of the below-listed defendants was convicted on one count of conspiracy to possess with intent to distribute methamphetamine and received the following federal prison sentences:
Charles Ben Bounds, a/k/a “Pretty Boy,” 31, of Fort Worth, Texas, 360 months
Billy Fred Gentry, a/k/a “Fred Gentry,” 30, of Fort Worth, Texas, 360 monthsKevin Kyle Killough, a/k/a “Kilo,” 29, of Fort Worth, Texas, LIFE
Billy Ray Skaggs, 48, of Brownwood, Texas, 300 months
Michael Clay Heaslet, a/k/a “Whisper,” 38, of Fort Worth, Texas, LIFE
Nicole Cynthia Herrera, a/k/a “Nikki Single,” 21, of Dallas, Texas, 300 months
Trae Short, a/k/a “Twig,” 31, of Dallas, Texas, LIFE
The government presented evidence at trial that some of the defendants were members, including ranking members, or associates, of the Aryan Brotherhood of Texas. The government presented further evidence identifying the defendants and the role of each in the conspiracy. Many of the defendants had numerous prior convictions.
The Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Fort Worth Police Department, the Texas Department of Public Safety (DPS), and the Bureau of Alcohol, Tobacco, and Firearms (ATF) investigated. Assistant U.S. Attorneys Shawn Smith and Frank Gatto prosecuted the case.
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Thursday 9 February 2017
“Bearded Bandit” Sentenced to 45 Months in Prison for Bank Robbery SpreeRead the Press Release
OAKLAND – Kenneth Michael Ellis was sentenced today to 45 months in prison for bank robberies covering much of Northern California, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
Ellis, 31, from Stockton, pleaded guilty on November 16, 2016, to eight separate counts of unarmed bank robbery and agreed to pay more than $28,000 in restitution. According to the plea agreement, Ellis admitted to using force or intimidation to rob banks in Fremont, Gilroy, Concord, Dublin, Pleasanton, and Lafayette. Ellis typically entered the banks wearing dark glasses and a hat, approached the victim tellers to ask to cash a check, and presented a note that demanded money and told the tellers not to take certain actions.
Ellis admitted the following robberies:
- $3,000 from a Chase Bank branch in Fremont, California, on February 12, 2016
- $4,400 from a Wells Fargo Bank branch in Gilroy, California, on March 4, 2016
- $3,180 from a Wells Fargo Bank branch in Concord, California, on March 11, 2016
- $1,700 from a US Bank branch in Dublin, California, on March 15, 2016
- $1,083 from a US Bank branch in Gilroy, California, on March 16, 2016
- $1,434 from a US Bank branch in Fremont, California, on March 17, 2016
- $5,145 from a Wells Fargo Bank branch in Pleasanton, California, on March 17, 2016
- $4,600 from a Chase Bank branch in Lafayette, California, on March 21, 2016
As part of his plea agreement, Ellis also agreed to pay restitution to the following banks as a result of robberies he committed in the Eastern District of California:
- $1,000 to Chase Bank located at 5010 Elk Grove Boulevard, Elk Grove, California (for a robbery on March 1, 2016)
- $1,400 to Wells Fargo Bank located at 3518 Marconi Avenue, Sacramento, California (for a robbery on March 1, 2016)
- $1,500 to Bank of Stockton located at 230 Main Street, Rio Vista, California (for a robbery on March 21, 2016).
Media reports of the robberies described Ellis as the “Bearded Bandit,” recounting the description provided of the suspect and the car he used during this multi-agency investigation in a number of law enforcement bulletins. Ellis was arrested on March 23, 2016, by the Brentwood Police Department after they received a call from a citizen who reported seeing someone who fit the description of the robbery suspect.
The sentence was handed down by the Honorable Yvonne Gonzalez Rogers, U.S. District Judge. Judge Gonzalez Rogers also sentenced the defendant to a three-year period of supervised release. Ellis, who has been in custody since his March 2016 arrest, will begin serving his sentence immediately.
Assistant U.S. Attorney Christina McCall is prosecuting the case with the assistance of Vanessa Quant, Melissa Dorton, and Noble Hughes. The prosecution is the result of an investigation by the Federal Bureau of Investigation, the United States Attorney’s Offices of the Eastern and Northern Districts of California, the Contra Costa County District Attorney’s Office, the Alameda County District Attorney’s Office, the Santa Clara District Attorney’s Office, the Brentwood Police Department, the Concord Police Department, the Gilroy Police Department, the Alameda County Sheriff’s Office, the Fremont Police Department, the Pleasanton Police Department, the Contra Costa County Sheriff’s Office, the Sacramento Sheriff’s Department, the Elk Grove Police Department, the Rio Vista Police Department, and the Dixon Police Department.
Woman Sentenced for Escape from Federal Halfway House in Sioux CityRead the Press Release
A woman who escaped from federal custody was sentenced on February 6, 2017, to 4 months in federal prison.
Jade Kiya Harden, age 24, from Sioux City, received the prison term after a November 1, 2016, guilty plea to one count of escape from federal custody.
At the plea hearing, admitted that she had been in the custody of Dismas Charities Residential Reentry Center (RRC), and on home confinement with electronic monitoring since May 27, 2016. On August 12, 2016, she cut off her electronic monitoring bracelet and left her residence. Subsequent to her August 12, 2016 escape, Harden was arrested by United States Marshals in Winnebago.
Harden was sentenced in Sioux City by Chief United States District Court Judge Leonard T. Strand. Harden was sentenced to 4 months’ imprisonment. A special assessment of $100 was imposed. She must also serve a 2-year term of supervised release after the prison term. There is no parole in the federal system.
Harden is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by United States Marshals Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-4077.
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Wichita Man Charged in Two Armed RobberiesRead the Press Release
WICHITA, KAN. - A Wichita man was charged in federal court here today in two armed robberies at auto parts stores, U.S. Attorney Tom Beall said.
Brandon V. Wells, 22, Wichita, Kan., was charged with two counts of commercial robbery and two counts of brandishing a firearm during a robbery.
According to court records, it is alleged that on Feb. 6, 2017, Wells was carrying a firearm when he and an accomplice robbed O’Reilly Auto Parts at 3109 E. Pawnee in Wichita. Wells used a handgun to threaten employees before he and the accomplice fled the store with stolen cash.
Two Wichita police officers who heard the robbery call set up surveillance at a nearby O’Reilly’s Auto Parts Store at 4818 E. Lincoln. The officers noted that the back door was propped open when they arrived and they soon saw the subjects leave the store. One subject escaped but they were able to arrest Wells.
If convicted, Wells faces a penalty of up to 20 years in federal prison and a fine up to $250,000 on each robbery charge, and not less than seven years (consecutive to the underlying sentence) on the first brandishing charge and 25 years on the second brandishing charge. The Wichita Police Department, the FBI and the Safe Streets Task Force investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Virginia Beach Sex Offender Sentenced to Prison for Child PornographyRead the Press Release
NORFOLK, Va. – Bruce Lee Scott, 30, of Virginia Beach, was sentenced today to 192 months in prison and a lifetime of supervised release for receipt of child pornography.
Scott pleaded guilty on Oct. 20, 2016. According to court documents, Scott received numerous images of child pornography through an internet-based file sharing program. After conducting a search warrant on his residence, investigators found that Scott possessed more than 1,000 pictures and 46 videos of child pornography on his laptop. Investigators also found evidence suggesting that Scott was having a sexual relationship with a minor. According to statements made in court, that evidence has been provided to the Virginia Beach Police Department and a state prosecution is underway. Court records show that Scott was convicted in 2006 for indecent liberties with a child, and as a result of that conviction he is required to register as a sex offender.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Randy Stoker prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Justice Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-137.
United States Recovers $300,000 Resolving Allegations That Federal Oil Lesse Violated the False Claims ActRead the Press Release
DENVER -- The Acting United States Attorney for the District of Colorado, Bob Troyer, today announced the recovery of $300,000 as settlement of allegations that General Production Service of California, Inc. (“GPS”) violated the federal False Claims Act by failing to pay money owed on oil produced from a federal lease.
The Settlement Agreement resolves contentions by the United States that GPS chronically failed to timely report oil production from its federal lease, and, from October 2010 through July 2016, failed to report and pay its royalty obligation to the United States. These failures occurred despite periodic contact from the Department of the Interior.
“Stealing from taxpayers is what this is. We don’t tolerate that,” said Acting U.S. Attorney Bob Troyer.
Special Agent in Charge Ron Gonzales, Office of Inspector General - Energy Investigations Unit commented that “this is an excellent example of federal agencies working together, collaboratively and effectively, to ensure that oil and gas companies operating in areas within the Department's jurisdiction meet their professional and legal responsibilities. The OIG is committed to work with our partners within the Department of Justice and Department of Interior to ensure accountability within the Department’s revenue collection programs."
"The Bureau of Land Management takes its oversight responsibilities seriously, and will work diligently with its partners to hold liable those companies that fail to meet their legal and regulatory commitments," said Shannon Tokos, Chief, Special Investigations Group of the Bureau of Land Management.
The United States Attorney’s Office acknowledges the cooperation and teamwork demonstrated by governmental entities involved in today’s recovery. Special thanks are extended to the Office of Natural Resources Revenue, the Department of the Interior’s Office of the Solicitor, the Energy Investigations Unit of the Department of the Interior’s Office of Inspector General, and the Special Investigations Group of the Bureau of Land Management. The United States Attorney’s Office in Denver, Colorado works closely with these offices in the pursuit of unpaid or underpaid oil and natural gas revenue, claims for which are processed at the Office of Natural Resources Revenue at the Federal Center in Lakewood.
The United States was represented in this matter by Assistant United States Attorney Andrea Wang of United States Attorney’s Office in Denver, Colorado.
The Settlement Agreement is neither an admission of liability by GPS, nor a concession by the United States that its claims are not well founded.
United States Attorney’s Office for the District of Vermont Announces Hiring of Two New Criminal AttorneysRead the Press Release
United States Attorney Eric Miller announced today that John Boscia and Nate Burris have joined the United States Attorney’s Office for the District of Vermont as Assistant United States Attorneys in the Office’s Criminal Division. Mr. Boscia most recently served for three years as a litigator for the City of Boston Law Department. Mr. Burris, a Vermont native, joins the office after approximately six years prosecuting Boston area crimes with the Middlesex District Attorney’s Office.
For more information on the Department of Justice’s criminal prosecution priorities, please visit www.justice.gov.
Two felons sentenced to federal prison for gun crimesRead the Press Release
Charleston, W.Va. – Two men were sentenced to federal prison today for gun crimes, announced United States Attorney Carol Casto. Paul Martin, 31, of South Charleston, was sentenced to two years and three months in prison for illegally possessing a firearm after being convicted of a felony. In a separate prosecution, Denver Clifton Julious, 67, of Hilltop in Fayette County, was sentenced to a year and a day in prison for being a felon in possession of a firearm.
Martin admitted that on July 5, 2016, he was driving a silver Mercedes Benz in South Charleston and law enforcement initiated a traffic stop because officers knew he did not have a valid driver’s license. Officers searched the vehicle and found a loaded .45 caliber handgun that Martin had previously placed in the glove box. Martin is prohibited from possessing any firearm under federal law because of several previous felony convictions in Kanawha County Circuit Court, including daytime burglary, forgery, and possession of a stolen vehicle.
In a separate prosecution, on May 6, 2016, the Fayette County Sheriff’s Department and members of the West Virginia State Police responded to Julious’ Red Star Road residence. Law enforcement went to his residence to execute a search warrant and to arrest Julious on several state charges arising from an armed altercation between Julious and another individual. During the arrest, a deputy sheriff located a Davis Industries .22 caliber derringer in Julious’ pocket. Julious’ criminal history contains felony convictions that prohibit him from possessing any firearm under federal law, including convictions for armed robbery in 1982 and first degree sexual assault in 1988 in Fayette County Circuit Court, as well as unlawful possession of a firearm in 2006 in the United States District Court for the Southern District of West Virginia.
The investigation of Martin was conducted by the South Charleston Police Department. Assistant United States Attorney Haley Bunn is in charge of Martin’s prosecution. The Fayette County Sheriff’s Department conducted the investigation of Julious. Assistant United States Attorney Joshua Hanks handled the prosecution of Julious. United States District Judge Joseph R. Goodwin imposed the sentences.
These cases were brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs targeting gun crime.
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Two Romanians Plead Guilty for Their Roles in A Fraud SchemeRead 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 Nicolae Sarbu, of Romania, pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft before U.S. District Judge Richard J. Arcara. The bank fraud charge carries a maximum penalty of 20 years in prison. The identity theft charge carries a mandatory two-year sentence to be served consecutive to any other sentence imposed. In addition, co-defendant Marinela Unguru-Ducila, also of Romania, pleaded guilty to misprision of a felony which is punishable by a maximum of three years in prison.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that between August, 2015, and November, 2015, Sarbu conspired with Unguru-Ducila and others to execute a scheme to defraud Bank of America. The defendants used skimming devices and cameras on 10 occasions at automated teller machines (ATM’s) in the Buffalo and Rochester areas and in Pennsylvania and New Jersey. Bank account information and personal identification numbers (PIN’s) were recorded without the true account holder’s knowledge or authorization and then used to make unauthorized withdrawals of cash from various ATM’s in the Western District of New York, Pennsylvania, and New Jersey. A skimmer is a device used to unlawfully record bank account information from a customer’s debit card when the card is inserted into an ATM. Defendant Sarbu also encoded the bank account information obtained by the skimmers onto magnetic strips on blank plastic cards and gift cards. Unguru-Ducila was present with Sarbu when he installed skimmers at multiple banks in North Tonawanda, NY and West Seneca, NY and failed to notify authorities about this felony crime.
The total loss suffered by Bank of America as a result of this fraudulent activity was $183,120.54.
The pleas are the result of an investigation by immigration and Customs Enforcement, Homeland security investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly.
Sarbu and Unguru-Ducila are scheduled to be sentenced on May 17, 2017, at 1:00 and 1:30 p.m. respectively, both before Judge Arcara.
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Two Illinois Women Plead Guilty to Conspiring to File Fraudulent Tax Returns Using Stolen IdentitiesRead the Press Release
Roxann Gist and Dominique King, both of Chicago, Illinois, pleaded guilty to conspiracy and other charges related to a scheme to obtain fraudulent tax refunds using stolen ID information, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Zachary T. Fardon of the Northern District of Illinois.
According to documents filed with the court, from 2012 to 2015, Gist, 45, and King, 26, along with another co-conspirator filed at least 858 fraudulent income tax returns, using stolen names and social security numbers. Those returns sought approximately $2,780,724 in refunds. As part of the scheme, Gist and King acquired the personal identification information of thousands of unsuspecting individuals, and directed others to receive and collect fraudulent income tax refund checks, and to open up bank accounts to receive direct deposits of such refunds. They also recruited others to provide addresses where refund checks could be delivered.
Gist and King are scheduled to be sentenced on June 6 and June 14, respectively. Gist faces a statutory maximum sentence of five years in prison for conspiracy to steal public funds, 10 years in prison for theft of public money and a two-year mandatory minimum sentence for aggravated identity theft, which will run consecutive to any other sentence imposed by the court. King faces a statutory maximum sentence of five years in prison for conspiracy to steal public funds and a two-year mandatory minimum sentence for aggravated identity theft, which will run consecutive to any other sentence imposed by the court. Gist and King also face a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Timothy M. Russo of the Tax Division, who prosecuted this case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Northern District of Illinois for their substantial assistance in the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Two Champaign Men Charged with Aggravated Identity Theft, False Claims Related to CitizenshipRead the Press Release
URBANA, Ill. – Grand jury indictments returned this week charge two men, both allegedly illegally in the U.S., with aggravated identity theft, making false claims of citizenship, and other related offenses.
Miguel Valencia-Sandoval, 33, of Ivanhoe Drive, Champaign, made his initial appearance on the charges in federal court in Urbana today. The indictment charges Valencia-Sandoval with making a false statement of U.S. citizenship in April 2012, on a passport application, in that he allegedly used another’s identity and stated he was a U.S. citizen when he was not. In addition, he is charged with aggravated identity theft related to the April 2012 passport application. The indictment also charges Valencia-Sandoval with allegedly making a false claim of citizenship to vote in November 2016; aggravated identity theft, and three misdemeanor counts of voting in an election by an illegal alien, in November 2016, November 2014, and November 2012.
Valencia-Sandoval was previously charged in a criminal complaint filed in the Central District of Illinois on Jan. 9, 2017. According to the affidavit in support of the complaint, on Jan. 7, 2017, Valencia-Sandoval applied for admission to the U.S. from Mexico via the Lincoln Juarez Port of Entry, into Laredo, Texas. After he was taken into custody by U.S. Customs and Border Protection officers, Valencia-Sandoval was charged with illegally attempting to enter the U.S. in a separate complaint filed by the Southern District of Texas. According to court documents, Valencia-Sandoval waived an identity hearing in Texas, consented to transfer to the Central District of Illinois, and remains in the custody of the U.S. Marshals Service pending future court hearings in the Central District of Illinois, Urbana division.
A separate, unrelated indictment charges Salvador Garcia-Luna, 27, of the 1700 block of Henry St., Champaign, with making a false statement of U.S. citizenship and aggravated identity theft, in March 2016, on a passport application, in that he allegedly used another’s identity and stated he was a U.S citizen when he was not. Garcia-Luna is also charged with possession of a firearm by a prohibited person, an illegal alien, on Jan. 4, 2017.
Garcia-Luna was initially charged by indictment on Jan. 3, 2017, with making a false statement of U.S. citizenship on a passport application. The superseding indictment returned this week charges Garcia-Luna with the additional counts. Garcia-Luna was arrested in Champaign, on Jan. 6, 2017, and appeared in federal court before U.S. Magistrate Judge Eric I. Long, who ordered that Garcia-Luna remain detained in the custody of the U.S. Marshals Service. Arraignment on the superseding indictment is scheduled on Feb. 16, 2017.
The charges against Valencia-Sandoval and Garcia-Luna are the result of investigation by U.S. Immigration and Customs Enforcement Homeland Security Investigations. In addition, the Champaign County Street Crimes Unit and the Department of State Diplomatic Security Service assisted in the investigation of Garcia-Luna. Assistant U.S. Attorney Bryan Freres is prosecuting both cases.
If convicted, the maximum statutory penalty for each offense is as follows: making a false statement in a passport application - up to 10 years in prison; aggravated identity theft – a minimum two years in prison served consecutive to any other sentence; possession of a firearm by a prohibited person, an illegal alien – up to 10 years in prison; making a false statement or claim of citizenship to vote - up to five years in prison; voting by illegal alien - up to one year in prison. 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.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Three men indicted for heroin and cocaine conspiracyRead the Press Release
Three men were indicted for their roles in a conspiracy to traffic heroin and cocaine, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and FBI Special Agent in Charge Stephen D. Anthony.
Indicted on charges of conspiracy to possess with intent to distribute heroin and cocaine are Gary R. Hill, Sr., 62, of Lathrup Village, Mich.; Leroy L. Hooker, 47, and Larry E. Stewart, 50, both of Toledo, Ohio.
The defendants had more than a kilogram of heroin and five kilograms of cocaine in December 2016, according to the indictment.
“We will continue to seek long prison sentences for drug traffickers,” Rendon said. “Aggressive enforcement, coupled with increased access to treatment for those who want help, changes in prescribing practices and more education are all required to combat the opioid epidemic that his devastated our state.”
“Unfortunately, heroin and cocaine continue to plague our communities,” Anthony said. “Law enforcement will hold these individuals, and any others, that bring illegal narcotics to our streets accountable in a court of law.”
If convicted, the defendants’ sentences will be determined by the court after reviewing 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 and in most cases it will be less than the maximum.
The investigating agency in this case is the Federal Bureau of Investigation, in Toledo. The case is being handled by Assistant United States Attorneys Thomas P. Weldon and Alissa M. Sterling.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Sentenced for Participation in Stolen Identity Refund Fraud SchemeRead the Press Release
ERIE, Pa. - Residents of Indiana, New York and Georgia have been sentenced in federal court on their convictions of conspiracy to commit wire fraud, Acting United States Attorney Soo C. Song announced today.
United States District Judge David S. Cercone imposed the following sentences:
Michael Idowu Olugbade, 45, of Brownsburg, Indiana – 30 months in jail and 3 years supervised release.
Alaire Sanya, 49, of Corona, New York – 30 months in jail and 3 years supervised release.
Olanrewaju Ajetunmobi, 45, of Austell, Georgia - 1 day in jail followed by 6 months community confinement, 6 months home detention and 3 years supervised release.
According to information presented to the court, Olugbade’s luggage, found in a co-defendant’s residence, contained stolen identities and tax return information. The ledgers in Olugbade’s luggage listed tax refund amounts and bank accounts in which the refunds were to be placed. IRS records show the data listed in the ledgers was correct, in that the exact same refund amounts listed were deposited in the same bank accounts listed. Also found in the luggage were debit cards for fraudulent bank accounts opened using stolen identities. Bank accounts opened by Olugbade received fraudulently obtained tax refunds. Those refunds were then withdrawn from ATM machines around the country.
A search of Sanya’s residence resulted in the discovery of hundreds of different stolen identities many of which were used by multiple co-conspirators in furtherance of their conspiracy. Sanya was also found in possession of numerous credit cards obtained using stolen identities.
Ajetunmobi, an accountant, used stolen identities supplied by co-defendants to file fraudulent federal tax returns, which falsely claimed farm income and a fuel tax credit in order to generate a tax refund on taxes that were never paid. The fraudulently obtained refunds were then deposited, via wire, into bank accounts which were opened using stolen identities.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
Acting U.S. Attorney Song commended the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecutions of Olugbade, Sanya and Ajetunmobi.
Thornton Bank Robber Sentenced to over 14 Years in Federal PrisonRead the Press Release
DENVER -- Edward Dean McCraine, age 60, of Fort Collins, was sentenced yesterday by Senior U.S. District Court Judge Lewis T. Babcock to serve 175 months (14.5 years) in federal prison for armed bank robbery, Acting United States Attorney Bob Troyer and FBI Denver Division Special Agent in Charge Calvin Shivers announced. Following his sentence, McCraines was ordered to serve 3 years on supervised release. At the time of the crime, the defendant was on Supervised Release for a 2001 bank robbery.
McCraine was first charged by Criminal Complaint on May 26, 2016. He was indicted by a federal grand jury on June 8, 2016. The indictment was dismissed and the defendant was charged and pled guilty to an Information on November 9, 2016. He was sentenced on February 8, 2017.
According to the stipulated facts contained in the defendant’s plea agreement, on May 26, 2016, McCraine walked into a TCF Bank located at 9660 Washington Street in Thornton, Colorado. He immediately pulled out what appeared to be a black handgun from his waistband and pointed it at two different bank tellers. He demanded money from both tellers, stating that he didn’t want dye packs or GPS devices. Both tellers provided money as they were in fear for their lives. The defendant then noticed that one of the tellers provided a GPS tracking device. McCraine removed it, stating “I should just shoot you for giving me that.” He then placed the money in a shopping bag and fled the bank. The defendant was later apprehended after his probation officer reviewed photos of recent bank robbers, immediately recognizing McCraine.
“Robbing a bank with a gun is volunteering for federal prison. There are cameras and security everywhere, and you are guaranteed to get a long sentence,” said Acting U.S. Attorney Bob Troyer.
“Today’s sentencing illustrates the FBI’s continued commitment to work closely with our state and local law enforcement partners to address violent crime,” said FBI Special Agent in Charge Calvin Shivers. “This investigation was truly a collaborative effort with our local partners, and we are confident that today’s sentencing sends a message to those contemplating committing criminal acts in our community that they will be aggressively investigated and prosecuted to the fullest extent of the law.”
This case was investigated by the Thornton Police Department and the FBI’s Rocky Mountain Safe Streets Task Force.
The defendant was prosecuted by Assistant U.S. Attorney Brad Giles, Chief of the Major Crimes Section of the U.S. Attorney’s Criminal Division.
Suquamish Tribal Member Sentenced to 6 Years in Prison for Receipt of Child PornographyRead the Press Release
A 22-year-old member of the Suquamish Tribe was sentenced today in U.S. District Court in Tacoma to six years in prison and lifetime supervised release for receipt of child pornography, announced U.S. Attorney Annette L. Hayes. NICHOLAS M. ALEXANDER repeatedly pressured and threatened as many as seven young teens in the Poulsbo and Suquamish area to provide him sexually explicit photos and pressured them for sex. ALEXANDER communicated with the girls via Facebook Messenger and via text messages. At the sentencing hearing U.S. District Judge Robert J. Bryan said, “The things that Mr. Alexander has done cannot continue and that is quite clear. These are serious matters.”
“The teens that this defendant preyed on are the glimmer of good in this sad case,” said U.S. Attorney Annette L. Hayes. “The fact that these young people alerted law enforcement ensured that the damage this offender could do was limited. I commend the FBI and their tribal law enforcement partners for their work to ensure justice was done.”
According to records filed in the case, in April 2015, ALEXANDER messaged various teens attempting to strike up a relationship and making it clear he was interested in sexual contact even though the teens were between 13 and 16-years-old. Various teens ignored his texts, some sent nude photos, at least one sent a sexually explicit image to ALEXANDER. ALEXADER also approached the teens in public settings, following one around a community gathering and pressuring her to come with him to a secluded location. The teen refused and reported the incident to law enforcement. ALXANDERR was arrested on May 12, 2015, and law enforcement recovered a cell phone revealing ALEXANDER communicated with as many as seven young teens pressuring them for sexually explicit images.
The case was investigated by the FBI, the Suquamish Tribal Police and the Port Gamble S’Klallam Tribal Police. The case is being prosecuted by Assistant United States Attorney Amy Jaquette.
St. Thomas Man Sentenced to 17 Months in Prison for Being a Felon in Possession of a FirearmRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez sentenced Eugene Monsanto, Jr., 41, to 17 months in prison followed by three years of supervised release for being a felon in possession of a firearm, United States Attorney Ronald W. Sharpe announced. Judge Gomez also ordered Monsanto to pay a $100 special assessment and complete 300 hours of community service.
On October 5, 2016, Monsanto pleaded guilty to being a felon in possession of a firearm. According to the plea agreement, on Monday, May 30, 2016, Monsanto, who was aboard M/V Sundance Queen, a ferry traveling from the British Virgin Islands to St. Thomas, U.S. Virgin Islands, presented himself for inspection at the U.S. Customs and Border Protection’s (CBP) St. John, U.S. Virgin Islands Port of Entry. A CBP officer conducted a routine inspection and found a fully loaded .38 caliber Smith and Wesson revolver inside of Monsanto’s carry-on.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Kim L. Chisholm.
Springfield Man Pleads Guilty to Meth Conspiracy, Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man pleaded guilty in federal court today to his role in a conspiracy to distribute methamphetamine.
Michael E. Ford, 37, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charges contained in a Dec. 9, 2015, federal indictment.
By pleading guilty today, Ford admitted that he participated in a conspiracy to distribute methamphetamine from June 1 through Sept. 11, 2015. Ford also pleaded guilty to possessing a firearm in furtherance of that drug-trafficking conspiracy.
According to today’s plea agreement, a co-conspirator shipped methamphetamine from California to Springfield in two to two-and-a-half-pound increments to co-defendant Lisa Renae Thompson, 39, of Springfield. Thompson picked up the packages at various hotels in the Springfield area then contacted Ford. Ford picked up the methamphetamine from Thompson and distributed it to others.
After a few days, according to the plea agreement, Ford would then meet with Thompson and give her $10,800. Thompson kept $800 and sent $10,000 to the co-conspirator in California.
Thompson admitted that she received approximately 24 pounds of methamphetamine, which she gave to Ford. Thompson also kept some of the methamphetamine and sold it directly to others.
After Thompson was arrested on Sept. 11, 2015, Ford began receiving methamphetamine shipments for the co-conspirator in California. On Sept. 30, 2015, the Springfield police department received a phone call from a FedEx employee about a suspicious package. Police officers delivered the 2.2-pound package of methamphetamine to Ford at a Springfield residence, where he was arrested. Ford had a Ruger .22-caliber handgun in his possession.
Thompson pleaded guilty to her role in the conspiracy on Dec. 13, 2016.
Under federal statutes, Ford and Thompson are each subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull II. It was investigated by the Drug Enforcement Administration and the Springfield, Mo., Police Department.
Spring Hill Man Pleads Guilty to Bankruptcy FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that John Franklin Coleman, III (46, Spring Hill) today pleaded guilty to bankruptcy fraud. He faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, from in or around 2009, through in or around 2012, Coleman worked as a manager and executive at American Mortgage Field Services, LLC (AMFS) and conducted inspections of residential and commercial properties, including distressed properties in various stages of sale and/or foreclosure. While acting as Vice President of AMFS, Coleman filed for relief under Chapter 7 of the Bankruptcy Code on or about May 3, 2011. Along with the petition, he filed schedules and statements, signed by him under penalty of perjury. Most notably, on the “statistical summary of certain liabilities and related data,” Coleman reported his average monthly income as $6,234.42. However, the investigation showed that he had requested to receive and had received much of his income from AMFS immediately before and during the bankruptcy via checks, rather than the automated payroll system. These payments were made out to Coleman and not included in the bankruptcy filings.
During the investigation, a former AMFS employee recalled that in or around late 2010, Coleman, who was working as AMFS’s Vice President at the time, began asking to receive half of his pay through the payroll company (ADP), and the other half through company checks that were made out to him personally. The purpose of this payment arrangement was to conceal Coleman’s true financial status.
This case was investigated by the Federal Housing Finance Agency and the U.S. Secret Service. It is being prosecuted by Assistant United States Attorney Mandy Riedel.
Skaneateles Falls Man Sentenced to 90 Months for Distributing and Possessing Child PornographyRead the Press Release
UTICA, NEW YORK – Richard Michael Lydon, age 67, of Skaneateles Falls, New York, was sentenced today to 90 months in prison for distributing and possessing child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his guilty plea, Lydon admitted that he distributed and possessed images of child pornography that he acquired in part using an Internet peer-to-peer, file-sharing program. A search of Lydon’s residence in November 2015 led to the discovery of over 1,400 videos and over 8,000 images depicting child pornography. Lydon admitted that he had been collecting child pornography for over a decade
United States District Judge David N. Hurd, in imposing the sentence, noted that what Lydon possessed was one of the largest collections of child pornography he had ever sentenced a person for distributing and possessing. Judge Hurd also imposed a lifetime of supervised release, which will start after Lydon is released from prison, and ordered the payment of $3,300 in restitution to child pornography victims. As a result of his conviction, Lydon will be required to register as a sex offender upon his release from prison.
This case was investigated by HSI and prosecuted by Assistant United States Attorney Carina Schoenberger as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 https://www.justice.gov/psc.
Sister-in-Law of Shooter in San Bernardino Attack Pleads Guilty to Federal Conspiracy Charge in Immigration Fraud CaseRead the Press Release
RIVERSIDE, California – Tatiana Farook, who is the sister-in-law of the male shooter in the San Bernardino attack, pleaded guilty today to federal immigration fraud charges related to a sham marriage discovered during the investigation into the December 2, 2015 shooting spree that took the lives of 14 people.
Tatiana Farook, 32, of Corona, pleaded guilty this morning before United States District Judge Jesus Bernal to one count of conspiracy to commit immigration fraud.
As a result of today’s guilty plea, Tatiana Farook faces a statutory maximum sentence of five years in federal prison. She is scheduled to be sentenced by Judge Bernal on November 13.
The bogus marriage was between Mariya Chernykh, who is Tatiana Farook’s sister, and Enrique Marquez Jr., who is facing charges of conspiring with San Bernardino shooter Syed Rizwan Farook and planning other attacks in 2011 and 2012.
Chernykh, 26, of Ontario, pleaded guilty on January 26 charges of conspiracy, perjury and making false statements.
On January 10, Syed Raheel Farook, 31, Tatiana’s husband and the brother of deceased San Bernardino attacker Syed Rizwan Farook, pleaded guilty to being part of the conspiracy.
According to court documents, beginning in late 2014 and continuing through February 2016, Tatiana and Raheel Farook and Chernykh conspired with Marquez to obtain immigration benefits for Chernykh by arranging and carrying out a fraudulent marriage between Chernykh, a Russian citizen, and Marquez, a United States citizen. The three defendants made false statements in immigration documents, Chernykh paid Marquez for his participation in the scheme, and Chernykh made additional material false statements during interviews with FBI special agents.
Marquez was charged in a separate federal indictment with participating in the marriage fraud scheme, as well as plotting with San Bernardino attacker Syed Rizwan Farook in 2011 and 2012 to carry out attacks in the Inland Empire. Marquez is also charged with supplying two firearms to Syed Rizwan Farook in 2011 and 2012 that he and his wife, Tashfin Malik, later used in the San Bernardino attack and during the shootout with law enforcement that ended in the couple’s death.
Marquez is scheduled to go on trial before Judge Bernal on September 26.
“After today’s guilty plea, all but one of the defendants charged as a result of the December 2 San Bernardino terrorist attack have been convicted,” said United States Attorney Eileen M. Decker. “Specifically, three members of the shooters’ family now face federal prison. These convictions are a testament to law enforcement’s ongoing commitment to ensure that everyone related to the terrorist attack are brought to justice.”
“The third and final guilty plea to the charges in this indictment alleging conspiracy to violate U.S. immigration laws - crimes that came to light following the 2015 terror attack in San Bernardino - is a welcome step in this ongoing case,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “As Tatiana Farook and her co-defendants await sentencing, members of the Joint Terrorism Task Force will continue their investigation of the attack which left 14 dead and several others seriously wounded.”
“Today’s guilty verdict is gratifying, particularly for the Homeland Security Investigations special agents and other authorities who worked round-the-clock in the wake of the San Bernardino terrorist attack gathering evidence and pursuing leads,” said Joseph Macias, special agent in charge of HSI Los Angeles. “That said, while this case is drawing to a close, the risk that would-be terrorists and their associates may attempt to exploit America's legal immigration system as a means to harm Americans remains very real, and we must continue to be ever vigilant.”
The investigation in this case was conducted by the Joint Terrorism Task Force in Riverside, which includes the Federal Bureau of Investigation; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the San Bernardino Police Department; the San Bernardino County Sheriff’s Department; and the United States Attorney’s Office.
These cases are being prosecuted by Assistant United States Attorneys Jay H. Robinson, Melanie Sartoris and Deirdre Z. Eliot of the Terrorism and Export Crimes Section with substantial assistance from Trial Attorney C. Alexandria Bogle of the Justice Department’s Counterterrorism Section.
Seventeen Individuals Indicted for Mortgage Fraud SchemeRead the Press Release
Seventeen individuals have been charged in a 17-count indictment with conspiracy to commit bank fraud and various substantive bank fraud offenses, in violation of Title 18, United States Code, Sections 1349 and 1344.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Timothy Mowery, Special Agent in Charge, Federal Housing Finance Agent, Office of Inspector General (FHFA-OIG), Southeast Region, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Division, and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
The following defendants are charged in the indictment:
- Miguel Soto, Jr., 46, of Miami, Florida;
- Hector Raul Santana, 38, of Miami Lakes, Florida;
- Miguel Faraldo, 52, of Miami, Florida;
- Barbara E. Zas, 46, of Miami, Florida;
- Maria Rosa Diaz, 45, of Miami Springs, Florida;
- Heberto Elias Gamboa, 31, of Miami, Florida;
- Michael Jose Gonzalez, 31, of Miami, Florida;
- Jenny Nillo, 50, of Miami, Florida;
- Jaime Jesus Sola Avila, 59, of Miami, Florida;
- Jorge Angel Sola, 31, of Miami, Florida;
- Emily Marie Echavarria, 50, of Miami, Florida;
- Eduardo Cruz Toledo, 50, of Miami, Florida;
- Yanet Huet, 44, of Miami, Florida;
- Carlos Mesa, Jr., 36, of St. Petersburg, Florida;
- Yipsy Rabelo Clavelo, 45, of Pompano Beach, Florida;
- Jose Salazar, 49, of Miami, Florida; and
- Cynthia Velasquez, 39, of Miami, Florida.
According to allegations contained in the indictment:
During 2007 and 2008, the defendants conspired to perpetrate a complex mortgage fraud scheme against various FDIC-insured lenders.
The defendants conspired to fraudulently obtain mortgage loans for unqualified buyers of units in two condominium projects on the west coast of Florida: Portofino at Largo, also known as Indian Palms, in Largo, Florida; and Bayshore Landing, in Tampa, Florida.
Miguel Soto, Jr. was the acting manager of two Florida companies that sold the condominium units to the unqualified buyers: Indian Palms Holdings, LLC, and 5221 Bayshore, LLC. Hector Raul Santana served as the Director of Sales for Indian Palms Holdings, LLC.
Maria Rosa Diaz was the president of Crisvan Investment Group, Inc., a Miami-based mortgage broker business that prepared and submitted the unqualified buyers’ fraudulent loan applications and supporting documents to the lenders.
Miguel Faraldo, Jenny Nillo, Jorge Angel Sola, and Heberto Elias Gamboa operated “marketing companies” that were used to launder the fraudulently obtained loan proceeds and perpetuate the fraud scheme. In particular, Faraldo operated All Florida Marketing, Inc., Nillo and Jorge Sola operated One Stop Consulting Solutions, Inc., and Gamboa operated HHWC Management Group, Inc.
Soto, Santana, Faraldo, Zas, Diaz, Nillo, Jaime Sola, Emily Echavarria, Eduardo Cruz Toledo, and other co-conspirators recruited unqualified buyers to purchase units in Portofino at Largo and Bayshore Landing. These unqualified buyers included Michael Gonzalez, Yanet Huet, Carlos Mesa, Jr., Yipsy Rabelo Clavelo, Jose Salazar, Jorge Sola, and Cynthia Velasquez.
Soto, Santana, Faraldo, Zas, Diaz, Nillo, Jaime Sola, Echavarria, Cruz, and other co-conspirators, made fraudulent statements to unqualified buyers to induce their purchases.
The defendants submitted fraudulent loan applications to induce the lenders to make mortgage loans to the unqualified buyers. The submitted loan applications contained false and fraudulent statements relating to: the borrower’s occupation of, or intent to occupy, the mortgaged property as a residence; the borrower’s employment, income, and assets; the borrower’s liabilities; the borrower’s payment of an earnest money deposit and cash-to-close; the sellers’ payment of kick-backs to the borrowers; and other information that was material to the borrower’s qualifications to borrow money from the lenders and the values of the mortgage properties.
Miguel Soto, Jr., Hector Santana, Maria Diaz and their co-conspirators agreed to submit the unqualified buyers’ fraudulent mortgage loan applications to the lenders through certain mortgage broker firms, including Diaz’s company, Crisvan Investment Group, Inc.
Miguel Soto, Jr. and Hector Santana agreed with one another, and with other co-conspirators, that the settlement agents for the purchase transactions would disburse mortgage loan proceeds for the purchase of condominium units in Portofino at Largo and Bayside Landing, even though the borrowers would not pay the earnest the money deposits and/or cash-to-close required by their loan applications and HUD-1 Settlement Statements.
Miguel Soto, Jr. and Hector Santana agreed with Miguel Faraldo, Jenny Nillo, Jorge Sola, and Heberto Gamboa, and with other co-conspirators, that the settlement agents would use some of the proceeds from certain of the fraudulently obtained mortgage loans to pay a fictitious “marketing fee” to one of the “marketing companies.” Faraldo, Nillo, Sola, and Gamboa would then cause their companies to pay some of those funds to the unqualified buyers as an undisclosed kick-back for buying their units.
If convicted, the defendants face a statutory maximum term of 30 years’ imprisonment, a $1 million fine, and mandatory restitution, on each count in the indictment.
Mr. Ferrer commends the investigative efforts of the FHFA-OIG, FBI and MDPD. The case is being prosecuted by Assistant United States Attorney Dwayne E. Williams.
An indictment is a formal charging documents notifying the defendant of the charges. All persons charged by indictment are presumed innocent until proven guilty in a court of law. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Serial Robber Sentenced to 20 Years in Federal PrisonRead the Press Release
Baltimore, Maryland –U.S. District Judge James K. Bredar sentenced Swain J. Clarke, age 30, of Owings Mills, Maryland, today to 20 years in prison, followed by three years of supervised release, for a series of commercial robberies.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his guilty plea, from May 22, 2014 through September 30, 2014, Clarke robbed six businesses, and attempted two additional robberies, of grocery and convenience stores. In four of the robberies, Clarke brandished what appeared to be black a semi-automatic handgun, and in two robberies he threatened the store employee with a knife.
On July 23, 2014, Clarke robbed a convenience store in the 3000 block of Hammonds Ferry Road in Halethorpe, Maryland, brandishing a gun at the cashier and removing cash from two cash registers. On August 14 and September 9, 2014, Clarke attempted to rob the store again, however, the same cashier he had robbed on July 23rd was working on both those dates and Clarke left the store. On September 30, 2014, Clarke returned to a grocery store that he had previously robbed, and purchased a $10 money order from the customer service manager, who recognized Clarke as the person who robbed her on May 22, 2014. The money order was made out to “Swain Clarke.”
Clarke admitted that he wore a dreadlocks wig in several of the robberies. Clarke also wore distinctive clothing in a number of the robberies, including a “True Religion” baseball cap, a black and white plaid shirt, a blue button-down shirt with distinctive horizontal stripes, and a blue hooded sweatshirt with white strings and a logo on the left breast. Law enforcement recovered the wig and baseball cap during a search of Clarke’s apartment and obtained photographs from Clarke’s girlfriend’s phone showing Clarke wearing the striped button-down shirt and blue hooded sweatshirt in social settings.
On November 2, 2014, while he was being held at the Baltimore County Detention Center in connection with the robberies, Clarke called his girlfriend and asked her to deactivate his Facebook and Instagram accounts, which she did. As a result, law enforcement officers were unable to view photographs and other information posted on his social media accounts. The call was recorded by the Detention Center’s telephone system.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney James G. Warwick, who prosecuted the case.
Serial Bank Robber Sentenced to 60 Months in Federal PrisonRead the Press Release
DALLAS — A Dallas, Texas, woman, Glenda Faye Hendrix, 50, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 60 months in federal prison, following her guilty plea in March 2016 to one count of bank robbery.
Hendrix admitted robbing four banks, entering each of the banks with the intent to commit bank robbery. She acted similarly in each robbery, entering the bank and handing a note to the teller demanding that they give her all of their money.
Hendrix committed the following bank robberies:
October 14, 2015 Comerica Bank, 2727 Fort Worth Avenue, Dallas, Texas
October 23, 2015 BBVA Compass Bank, 2307 W. Illinois Avenue, Dallas, Texas
November 9, 2015 Chase Bank, 3929 South Polk Street, Dallas, Texas
November 25, 2015 First Convenience Bank, 200 Short Blvd., Dallas, Texas
The Federal Bureau of Investigation and Dallas Police Department investigated. Assistant U.S. Attorney Andrew Wirmani prosecuted.# # #
Sentencings for February 1 - February 7, 2017Read the Press Release
Harold Giberson, 63, of Rock Springs, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on February 7, 2017, for theft of labor union funds. Giberson was the long time president of the Utility Workers Union of America Local 127. From 2011 through January 2015, he embezzled over $150,000 from the local union by using the union’s credit card for personal expenses and by claiming unauthorized travel reimbursements. Local union trustees discovered the embezzlement and Giberson resigned from the union in February 2015. Giberson, who is in poor health and appeared in court on oxygen, received five years of probation with the first six months in home confinement. Giberson was also ordered to pay a $100.00 special assessment and $158,953.28 in restitution. Giberson is also prohibited by federal law from serving as a union official for 13 years. This case was investigated by the U.S. Department of Labor, Office of Labor-Management Standards.
Justin Jamar Smith, 27, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on February 7, 2017, for interference with commerce by robbery. Smith was arrested in Cheyenne, Wyoming. He received 70 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment, a $300.00 fine and $844.00 in restitution. This case was investigated by the Cheyenne Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Hank Smith, 30, of Fort Washakie, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 6, 2017, for child abuse. Smith was arrested in Fort Washakie, Wyoming. He received time served, to be followed by two years of supervised release, and was ordered to pay a $100.00 special assessment. Restitution in this matter will be determined at a later date. This case was investigated by the Bureau of Indian Affairs.
Lisa Stewart, 49, of Hudson, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 2, 2017, for assault resulting in serious bodily injury. Stewart was arrested in Fort Washakie, Wyoming. She received 48 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and $73,590.33 in restitution. This case was investigated by the Federal Bureau of Investigation.
Christopher Sean Koegl, 46, of Virginia, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 1, 2017, for conspiracy to distribute heroin. Koegl was arrested in Richmond, Virginia. He received 120 months of imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Rocio S. Ortiz, 30, was sentenced by Federal District Court Judge Scott W. Skavdahl on February, 1, 2017, for being a felon in possession of firearms. Ortiz was arrested in Gillette, Wyoming. He received 57 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.