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14 March 2017
Scrap Metal Business Owner Pleads Guilty to Tax EvasionRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that the owner of a scrap metal business in Kansas City, Mo., that primarily operated on a cash basis pleaded guilty in federal court today to tax evasion.
Joseph Lee Scott Deardorff, 31, of Kansas City, pleaded guilty before U.S. District Judge Dean Whipple to the charge contained in a Sept. 20, 2016, federal indictment.
Deardorff owns and operates Total Recovery and Recycling, LLC, which is in the business of buying and selling scrap metal and scrap vehicles. By pleading guilty today, Deardorff admitted that he took a series of steps to willfully and intentionally evade payment of $355,310 in federal income taxes and to hide assets from the IRS.
Deardorff specifically pleaded guilty to attempting to evade paying a large part of the federal income tax owed for 2011. According to today’s plea agreement, Deardorff earned $194,067 in taxable income in 2011 and owed $65,067 in federal income tax that year. The total tax loss, including relevant conduct during tax years 2007 through 2012, is $355,310.
Deardorff admitted that he concealed and attempted to conceal from the IRS the nature and extent of his assets. For example, Deardorff cashed (rather than depositing) approximately $731,656 of the $736,070 checks he received from the sale of scrap vehicles and scrap metal in 2011. Deardorff cashed those checks at multiple different gas stations and check cashers throughout the metro area of Kansas City, Mo. He then used that cash to purchase additional scrap vehicles and scrap metal in an effort to hide the money he received from the sale of vehicles and metal from the IRS.
Deardorff also used cash from the sale of scrap vehicles and scrap metal to purchase multiple properties for business and investment purposes, multiple Corvettes for investment purposes, and high-end GPS units, speakers, CD players and DVD players for his tow trucks.
Deardorff, who paid all of his employees in cash, also admitted that he failed to file Forms W2 for any of his employees for calendar year 2011.
Under federal statutes, Deardorff is subject to a sentence of up to five years 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 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 Senior Litigation Counsel Gregg R. Coonrod. It was investigated by IRS-Criminal Investigation.
Sandra R. Brown Named Acting United States Attorney for the Seven-County Central District of CaliforniaRead the Press Release
LOS ANGELES – Sandra R. Brown has been named the Acting United States Attorney for the Central District of California, becoming the top federal law enforcement official in the most populous federal district in the nation.
Ms. Brown took charge of the office on Saturday after former United States Attorney Eileen M. Decker resigned her position.
With approximately 270 attorneys, the United States Attorney’s Office for the Central District is the largest Justice Department office outside of Washington D.C. The Central District of California is made up of seven counties – Los Angeles, Orange, Riverside, San Bernardino, Ventura, Santa Barbara and San Luis Obispo – and is home to approximately 20 million residents.
For the past year, Ms. Brown was the First Assistant United States Attorney – the number two position in the office. She has been with the United States Attorney’s Office since 1991, and she was Chief of the Tax Division from 2004 through 2016.
“It is a true honor and privilege to lead the United States Attorney’s Office, home to the nation’s finest prosecutors and staff,” Ms. Brown said. “Over the past 25 years, I have seen firsthand the dedication, outstanding abilities and contributions of the men and women who represent the United States. We will continue our important work, which includes civil and tax litigation; defending the rights of both the government and its agents; and fighting national security threats, violent and organized crime, drug trafficking, hate crimes, financial fraud, public corruption, crimes against children, and the myriad of other threats to our public safety. I look forward to leading the office as we prosecute and defend some of the most important cases in the country.”
As an Assistant United States Attorney, Ms. Brown represented the government in a wide range of matters in federal and state courts, including criminal, civil, appellate and bankruptcy matters.
San Antonio Man Sentenced to Federal Prison for Robbing BanksRead the Press Release
In San Antonio this morning, 45-year-old Joseph Krist was sentenced to more than 41 years in federal prison followed by three years of supervised release and ordered to pay a combined $17,833 restitution for two bank robberies announced United States Attorney Richard L. Durbin, Jr. and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
On December 9, 2015, a federal jury convicted Krist of two counts of bank robbery by force or violence. Jurors found that Krist was responsible for the robberies of the Lone Star National Bank in San Antonio on November 23, 2012, and the Lone Star Capital Bank of San Antonio on January 7, 2013. Evidence presented during trial revealed that Krist stole approximately $9,645 from the Lone Star National Bank and approximately $8,188 from the Lone Star Capital Bank. Jurors also found that Krist used a firearm to assault a bank employee during the Lone Star Capital Bank robbery.
Finding Krist to be a danger to the community and a violent individual, United States District Judge Fred Biery sentenced Krist to 240 months in federal prison for the Lone Star National Bank robbery plus 262 months in federal prison for the Lone Star Capital Bank robbery. Judge Biery also ordered that those prison terms would run consecutive to each other and to a 30–year federal prison sentence Krist is currently serving for robbing a Corpus Christi bank in 2013.
On February 12, 2016, Judge Biery sentenced Krist’s co-defendant, 48-year-old Rebecca Marie Brown of San Antonio, to five years in federal prison and ordered her to pay $8,188 restitution, joint and severally with Krist, for her role in the Lone Star Capital Bank robbery.
This case was investigated by FBI and prosecuted by Assistant United States Attorneys Bettina Richardson and Charlie Strauss.
Russian Hacker “Kolypto” Extradited from NorwayRead the Press Release
ATLANTA - Mark Vartanyan, also known as “Kolypto,” a Russian national who allegedly developed, improved and maintained the pernicious “Citadel” malware toolkit, was arraigned in federal court following his extradition from Norway in December 2016. Vartanyan was charged with one count of computer fraud.
“This successful extradition is yet another example of how cooperation among international law enforcement partners can be used to disrupt and dismantle global cyber syndicates,” said U. S. Attorney John Horn. “This defendant’s alleged role in developing and improving “Citadel” for its use by cybercriminals caused a vast amount of financial harm to individuals and institutions around the world. His appearance in federal court today shows that cybercriminals cannot hide in the shadows of the Internet. We will identify them and bring them to justice wherever they operate.”
“We must continue to impose real costs on criminals who believe they are protected by geographic boundaries and can prey on the American people and institutions with impunity. Vartanyan's arrest removes a significant player who was engaged in the development, improvement, maintenance and distribution of malware from the resources available to the cyber criminal underground, thereby deteriorating the capabilities of cyber criminal groups. Today's plea is the culmination of a multi-national effort led by the FBI, highlighting the benefits of global cooperation among the United States and international law enforcement. It further demonstrates the FBI’s long-term commitment to identifying and pursuing cyber criminals world-wide, and serves as a strong deterrent to others targeting America’s financial institutions and citizens through the use of malicious software,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: “Citadel” is a malware toolkit designed to infect computer systems and steal financial account credentials and personally identifiable information from victim computer networks. Beginning in or about 2011, Citadel was offered for sale on invite-only, Russian-language internet forums frequented by cybercriminals. Users of Citadel targeted and exploited the computer networks of major financial and government institutions around the world, including several financial institutions in the United States. According to industry estimates, Citadel infected approximately 11 million computers worldwide and is responsible for over $500 million in losses.
Between on or about August 21, 2012 and January 9, 2013, while residing in Ukraine, and again between on or about April 9, 2014 and June 2, 2014, while residing in Norway, Vartanyan allegedly engaged in the development, improvement, maintenance and distribution of Citadel. During these periods, Vartanyan allegedly uploaded numerous electronic files that consisted of Citadel malware, components, updates and patches, as well as customer information, all with the intent of improving Citadel’s illicit functionality.
Vartanyan was extradited to the United States in December 2016 from Norway. He was charged in a one-count Information with computer fraud, and was arraigned before U.S. Magistrate Judge Russell G. Vineyard.
Vartanyan is the second defendant charged in connection with an ongoing investigation of the Citadel malware. On September 29, 2015, Dimitry Belorossov, a/k/a Rainerfox, 22, of St. Petersburg, Russia, was sentenced to four years, six months in prison following his guilty plea for conspiring to commit computer fraud for distributing and installing Citadel onto victim computers using a variety of infection methods.
Belorossov downloaded a version of Citadel, which he then used to operate a Citadel botnet primarily from Russia. Belorossov remotely controlled over 7,000 victim bots, including at least one infected computer system with an IP address resolving to the Northern District of Georgia. Belorossov’s Citadel botnet contained personal information from the infected victim computers, including online banking credentials for U.S.-based financial institutions with federally insured deposits, credit card information, and other personally identifying information.
In addition to operating a Citadel botnet, Belorossov also provided online assistance with the goal of developing suggested improvements to Citadel, including posting comments on criminal forums on the Internet and electronically communicating with other cybercriminals via email and instant messaging.
Belorossov was convicted on July 18, 2014, after he pleaded guilty.
DOJ’s investigation into the creator of the Citadel malware is continuing.
Members of the public are reminded that the information only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Steven D. Grimberg is prosecuting the case. The Justice Department’s Office of International Affairs also provided assistance with this case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Rochester Man Sentenced on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Marquis McMillian, 25, of Rochester, NY, who was convicted of drug distribution, firearms possession and use of violence and threats of violence, was sentenced to 25 years in prison and 10 years supervised release by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Everado A. Rodriguez, who handled the case, stated that McMillian participated in a large and long term drug distribution conspiracy. The defendant admitted distributing over 280 grams of crack cocaine in the Rochester area. McMillian also admitted that he possessed firearms during his drug distribution activities and that he used violence and the threat of violence during his drug dealing.
In a related prosecution, McMillian was previously convicted in state court following a jury trial of assault and attempted murder in connection with the shooting of two men in June of 2012.
The defendant was indicted along with nine other individuals in February 2013 for their involvement in the violent drug distribution conspiracy which was based in Rochester and headed by co-defendant Tyshawn Simmons. To date, nine defendants have been convicted including Simmons, who was convicted of committing murder in furtherance of the drug distribution conspiracy. Simmons is scheduled to be sentenced on April 4, 2017.
Today’s sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief Michael Ciminelli, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Rochester Man Admits to Committing Seven Bank RobberiesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Khiry T. Aiken, 26, of Rochester, NY, pleaded guilty to bank robbery before U.S. District Judge Frank P. Geraci, Jr. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that the defendant admitted to robbing three federal credit unions and four banks in the Rochester and Buffalo, NY areas in 2016. Specifically, Aiken admitted to robbing the following financial institutions on the following dates:
• Advantage Federal Credit Union, 1625 Mt. Hope Avenue, Rochester, on April 16, 2016; • Key Bank, 1475 Mt. Hope Avenue, Rochester, on May 25, 2016; • First Niagara Bank, 1989 Clinton Street, Buffalo, on August 9, 2016; • Summit Federal Credit Union, 1660 Monroe Avenue, Brighton, on August 15, 2016; • Northwest Savings Bank, 3517 Union Road, Cheektowaga, on August 24, 2016; • Advantage Federal Credit Union, 1625 Mt. Hope Avenue, Rochester, on August 29, 2016; and
• First Niagara Bank, 3051 Sheridan Drive, Amherst, on September 13, 2016.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen; the Rochester Police Department, under the direction of Chief Michael Ciminelli; the Brighton Police Department, under the direction of Chief Mark Henderson; the Buffalo Police Department, under the direction of Commissioner Daniel Derenda; the Amherst Police Department, under the direction of Chief John Askey; and the Cheektowaga Police Department, under the direction of Chief David Zack.Sentencing is scheduled for June 12, 2017, at 3:30 p.m. before Judge Geraci.
Pittsburgh Felon Sentenced to 4 Years in Federal Prison for Illegal Gun PossessionRead the Press Release
PITTSBURGH – Theodore Elliott was sentenced to 48 months in prison for possessing a firearm in September 2014 after a prior felony conviction, Acting United States Attorney Soo C. Song announced today.
Elliott, age 26 of Pittsburgh, Pennsylvania, was also sentenced to serve three years of supervised release following his prison term. United States District Judge Nora Barry Fischer imposed the sentence to run consecutively to Elliott’s state prison sentence for possession with intent to deliver cocaine. Elliott was on bond in that state case when he illegally possessed the firearm in September 2014.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Pittsburgh Bureau of Police and the Drug Enforcement Administration conducted the investigation leading to the convictions in this case. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
One Individual Indicted in March 2017 Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the March 2017 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
TINA MARIE ZAHR, age 48, of Porterville, California
Possession With Intent To Distribute CocaineThe Indictment alleges that on or about February 23, 2017, in the Eastern District of Oklahoma, the defendant, TINA MARIE ZAHR, did knowingly and intentionally possess with intent to distribute 5 kilograms or more of a mixture or substance containing a detectable amount of cocaine, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A),punishable by not less than 10 years imprisonment and up to life imprisonment, a fine up to $10,000,000.00 or both.
The charge arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
Assistant United States Attorney Timothy Hammer
Oklahoma Inmate Sentenced to 46 Months for Role in Prison-Based Phone Fraud and Extortion SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DARRIK FORSYTHE, 37, was sentenced yesterday by U.S. District Judge Robert N. Chatigny in Hartford to 46 months of imprisonment, followed by three years of supervised release, for his role in prison-based phone fraud and extortion scheme.
According to court documents and statements made in court, in December 2011, federal law enforcement agents began investigating a series of criminal schemes being conducted by inmates of Lawton Correctional Facility (“LCF”), a medium security, privately owned, correctional facility located in Lawton, Oklahoma. The investigation revealed that LCF inmates, including FORSYTHE, had access to smuggled cellular phones. Using the smuggled phones, FORSYTHE and others befriended gay men on phone-based chat lines. Then, using false promises and, in certain cases, threats, FORSYTHE and others induced victims to send them cash or prepaid debit cards. Several men across the country were victimized through this scheme.
Between approximately February 2011 and October 2011, FORSYTHE and at least three other LCF inmates obtained a total of $674,100 from one Connecticut resident through this scheme. The victim had befriended an individual named “Joe” on Megamates, a phone-based dating service. Shortly thereafter, individuals began to call the victim demanding money. The callers threatened to reveal the victim’s sexual orientation and cause physical harm to the victim or his family if the victim did not comply. The callers initially demanded cash, and then instructed the victim to send prepaid debit card numbers. As the scheme progressed, the callers demanded increases in the money from several hundreds of dollars to $5,000 or more, multiple times per week.
The victim contacted law enforcement after depleting his family’s $670,000 inheritance for which he served as the custodian. He committed suicide in 2014.
On April 30, 2014, FORSYTHE pleaded guilty to one count of conspiracy to commit wire fraud.
As part of his sentence, FORSYTHE was ordered to pay full restitution.
FORSYTHE has been serving a 20-year sentence for robbery since 2002. His federal sentence will begin at the conclusion of his state sentence.
A second LCF inmate, Sean Siwek, was prosecuted in the Western District of Oklahoma for his role in a similar scheme. (U.S. v. Sean Siwek 5:14cr355).
This matter has been investigated by the U.S. Secret Service, Connecticut Resident Office, with assistance from the Secret Service’s Oklahoma field offices, the Lawton, Oklahoma resident agency of the Federal Bureau of Investigation, and the Oklahoma Department of Corrections. This case was prosecuted by Assistant U.S. Attorney David E. Novick of the District of Connecticut, with the assistance of members of the U.S. Attorney’s Office for the Western District of Oklahoma.
Oil City Man Charged with Traveling Overseas for Sex with a Minor, Child Porn PossessionRead the Press Release
ERIE, Pa. - A resident of Oil City, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Soo C. Song announced today.
The three-count superseding indictment named Brent Lockwood, 59, ofOil City, Pennsylvania, as the sole defendant.
According to the superseding indictment presented to the court, Lockwood traveled to the Philippines for the purpose of engaging in illicit sexual conduct with a minor. In addition, he also received and possessed computer images depicting minors engaging in sexually explicit conduct.
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.justice.gov/psc.
The law provides for a maximum total sentence of 60 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The U.S. Immigration and Customs Enforcement Homeland Security Investigations conducted the investigation leading to the superseding indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Office for Victims of Crime Awards Almost $8.5 Million to Support Victims of Pulse Nightclub ShootingRead the Press Release
Today, the Office for Victims of Crime (OVC), part of the U.S. Department of Justice’s Office of Justice Programs, announced an $8,466,970 Antiterrorism and Emergency Assistance Program (AEAP) grant to assist victims of the June 2016 mass shooting at Pulse nightclub in Orlando, Florida. OVC will award the grant tomorrow to the Florida Office of the Attorney General.
“This funding will provide important support to the victims, their loved ones and communities who were affected by last year’s devastating attack on Pulse nightclub,” said Attorney General Jeff Sessions. “We continue to mourn those who were taken from us that awful day, and we admire the resilience of the great city of Orlando. With this grant, we reaffirm the Justice Department’s commitment to the people of Orlando, the families of the victims and all who are helping those affected by this heinous crime.”
“OVC is committed to assisting the recovery, healing and justice for all victims of crime and this award will help to provide much needed support, emotionally and financially, as they continue to heal,” said Acting OVC Director Marilyn McCoy Roberts. “This award will reimburse victim services costs for operation of the Family Assistance Center in the immediate aftermath of the shooting, and ensure that victims, witnesses and first responders receive necessary services to help them adjust in the aftermath of violence, begin the healing process and cope with probable re-traumatization.”
On June 12, 2016, Omar Mateen, 29, entered Pulse nightclub with an assault rifle and handgun, opening fire on club patrons while holding them hostage. During the attack, Mateen killed 49 people and injured more than 50 others, making it the deadliest mass shooting in U. S. history. Mateen was eventually killed during a shootout with police.
Victim services funding is awarded to and distributed by the Florida Office of the Attorney General’s Department of Legal Affairs.
In 1995, following the Oklahoma City bombing, Congress authorized OVC to set aside and administer up to $50 million annually from the Crime Victims Fund for the Antiterrorism Emergency Reserve Fund to assist victims in extraordinary circumstances. Following an act of terrorism or mass violence, jurisdictions can apply for an AEAP grant award for crisis response, criminal justice support, crime victim compensation and training and technical assistance expenses. OVC also provided AEAP funds and assistance following the below mass violence incidents:
in, San Bernardino, California (2015); Roseburg, Oregon (2015); Charleston, South Carolina (2015); Marysville, Washington (2014); Boston, Massachusetts (2013); Newtown, Connecticut (2012); Oak Creek, Wisconsin (2012); Aurora, Colorado (2012); Tucson, Arizona (2011); Binghamton, New York (2009); at the Virginia Polytechnic Institute and State University (2007); and the Minnesota Department of Public Safety on behalf of the Red Lake Nation (2005).
For more information on the AEAP, please visit http://ojp.gov/ovc/AEAP/index.html.
The Office of Justice Programs (OJP), headed by Acting Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six components: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP can be found at www.ojp.gov.
Nogales Man Sentenced to 92 Months for Attempting to Export Ammunition into MexicoRead the Press Release
TUCSON, Ariz. – Yesterday, Gabriel Rivero, 41, of Nogales, Ariz., was sentenced by U.S. Senior District Judge Frank R. Zapata to 92 months in prison to be followed by three years of supervised release. Rivero was convicted by a jury of attempting to smuggle ammunition into Mexico.
The evidence at trial showed that on Feb. 11, 2016, at the Mariposa Port of Entry in Nogales, a spare tire fell from a pickup truck being driven by Rivero when the truck was about 75 yards from the border. Rivero stopped, tried to pick up the spare tire, then abandoned the tire, got back into the truck, and passed through the Port of Entry into Mexico. When United States Customs and Border Protection officers inspected the tire, they discovered 5,517 rounds of pistol and rifle ammunition hidden inside. Rivero was subsequently identified via video from the Port of Entry and arrested.
The investigation in this case was conducted by the Department of Homeland Security, Homeland Security Investigations and Customs and Border Protection, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The prosecution was handled by Angela W. Woolridge, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-16-0713-TUC-FRZ
RELEASE NUMBER: 2017-023_Rivero
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Millersburg man sentenced to more than two years in prison for tax fraudRead the Press Release
A Millersburg man was sentenced to more than two years in prison for fraudulently claiming more than $1.1 million in tax refunds to which he was not entitled, said Acting U.S. Attorney David A. Sierleja and Frank S. Turner II, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Dennis Dean Miller, 62, was found guilty of six counts of false claims and one count of obstructing internal revenue laws.
Miller falsely reported that financial institutions had withheld large amounts of federal income tax on income that did not exist in reality. He falsely filed for tax refunds of $1,121,420 for tax years 2006 through 2011, according to the indictment.
Miller was sentenced to 26 months in prison by U.S. District Judge James Gwin. The judge also ordered Miller to pay $132,147 in restitution.
This case is being prosecuted by Assistant U.S. Attorney Henry F. DeBaggis following an investigation by the IRS.
Los Angeles Businessman Sentenced to Prison for Concealing over $23.5 Million in Israeli Bank AccountsRead the Press Release
WASHINGTON – A Los Angeles businessman was sentenced to 24 months in prison today for hiding more than $23.5 million in offshore bank accounts, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to court documents, Masud Sarshar, a U.S. citizen, maintained several undeclared bank accounts at Bank Leumi and two other Israeli banks, both in his name and in the names of entities that he created. Sarshar owned and operated Apparel Limited Inc., a business that designed, manufactured and sold clothing and other apparel. For decades, with the assistance of at least two relationship managers from Bank Leumi and a second Israeli bank (Israeli Bank A), Sarshar hid tens of millions of dollars in assets in these accounts in an effort to conceal income and obstruct the Internal Revenue Service (IRS). Between 2006 and 2009, Sarshar diverted more than $21 million in untaxed gross business income to those undeclared accounts and earned more than $2.5 million in interest income from the funds. Sarshar reported none of this income on his 2006 through 2012 individual and corporate tax returns. He also filed false Reports of Foreign Bank and Financial Accounts, commonly known as FBARs, with the U.S. Department of Treasury on which he omitted his ownership and control of these offshore accounts.
“Masud Sarshar used every trick to avoid paying his taxes: he moved his money from foreign bank to foreign bank; switched passports and had his statements smuggled to the United States on a thumb drive secreted in the necklace of a bank manager,” said Acting Deputy Assistant Attorney General Goldberg. “He even tapped the funds in his offshore accounts through financial maneuvers that he thought would not leave a paper trail. However, Sarshar found out today -- with the imposition of a two-year prison sentence -- that secret foreign bank accounts can no longer be safely hidden from the Department of Justice and the IRS.”
“Mr. Sarshar’s conduct was both egregious and staggering,” said Chief Richard Weber of IRS Criminal Investigation. “He knew the laws and purposefully hid his income to avoid paying taxes, cheating not only the U.S. government, but other law abiding tax payers who uphold their tax obligations. Hiding income in offshore banks is not tax planning, it’s fraud.”
Sarshar’s relationship managers at Israeli Bank A (RM1) and Bank Leumi (RM2) visited him frequently in Los Angeles. At Sarshar’s request, neither bank sent him his account statements by mail. Instead, RM1 and RM2 provided Sarshar with his account information in person. RM2 concealed Sarshar’s account statements on a USB drive hidden in a necklace that she wore when she visited Sarshar in the United States. Sarshar’s meetings with RM1 sometimes occurred in Sarshar’s car. RM1 and RM2 used their visits to offer Sarshar other bank products, including “back-to-back” loans. Through back-to-back loans, which Bank Leumi made to Sarshar through its branch in the United States and which Sarshar collateralized with funds from his account at Israeli Bank A, Sarshar was able to bring back to the United States approximately $19 million of his assets without creating a paper trail or otherwise disclosing the existence of the offshore accounts to U.S. authorities. At the direction of RM1 and RM2, Sarshar also obtained Israeli and Iranian passports in an effort to avoid being flagged as a U.S. citizen by the banks’ compliance departments. The banks still flagged Sarshar as a U.S. citizen after Sarshar received these two passports, so RM1 and RM2 advised him to transfer his remaining funds from Israeli Bank A to Israeli Bank B, which Sarshar did in late 2011. In addition, with the help of someone identified as Individual 1, Sarshar transferred approximately $5.8 million from his Bank Leumi accounts to an account at Hong Kong Bank A, which Individual 1 then helped transfer to Sarshar in the United States, disguising it as a loan to Apparel Limited.
In addition to the term of prison imposed, Sarshar was ordered to serve three years of supervised release and to pay more than $8.3 million in restitution to the IRS, plus interest and penalties. Sarshar also agreed to pay an FBAR penalty of more than $18.2 million for failing to report his Israeli bank accounts.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant Chief Tino M. Lisella and Trial Attorney Timothy M. Russo of the Tax Division, who prosecuted the case. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Central District of California 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.
Kingsport Resident Sentenced to 78 Months for the Manufacture and Detonation of A Pipe Bomb in Johnson City, TennesseeRead the Press Release
GREENEVILLE, Tenn. – On Mar.13, 2017, Christopher Wayne Alexander, 55, of Kingsport, Tenn., was sentenced by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 78 months in federal prison for maliciously damaging the office and contents of Victory Orthotics, Inc., (Victory Orthotics) in Johnson City, Tenn., by means of a pipe bomb in July 2015. The court also ordered him to pay at least $300,000, and up to $330,000, in restitution for the damage to Victory Orthotics.
Alexander previously pleaded guilty to one count of damaging a building and property used in interstate commerce by means of fire and explosives (a pipe bomb) and three counts of possessing firearms (pipe bombs) not registered to him in the National Firearms Registration and Transfer Record. According to his plea agreement on file with U.S. District Court, Johnson City Police stopped Alexander’s vehicle a short time after the explosion for having a license plate obscured by tape, making it unreadable. An ensuing search of the vehicle revealed an assembled pipe bomb and components to manufacture additional pipe bombs. The pipe bomb in his vehicle was consistent with recovered remnants of the one detonated at the Victory Orthotics building. Officers also found a number of tools in the vehicle and/or on Alexander’s person, including a glass-breaking tool, a pry bar, pruning shears and knives. Testimony at the sentencing hearing indicated that he cut/disabled the security alarm before breaking in and planting the pipe bomb.
A search warrant executed at Alexander’s Kingsport residence the next day produced another assembled pipe bomb, along with fuses, remote firing devices, powders and ignition sources in a walk-in safe. Extensive literature regarding the manufacture of improvised explosive devices was found in the safe, including manuals titled “Homebuilt Flamethrowers,” “How to Make Disposable Silencers-A Complete Guide,” and “The Advanced Anarchist Arsenal Recipes for Improvised Incendiaries and Explosives.” A large number of firearms and ammunition were also located throughout the home.
Testimony from the sentencing hearing indicated that approximately one week after the explosion, residents and individuals maintaining properties near Victory Orthotics found two additional pipe bombs and brought them to the attention of law enforcement. These pipe bombs were virtually identical to the others recovered by law enforcement.
Law enforcement agencies participating in the investigation included the Bureau of Alcohol, Tobacco, Firearms and Explosives, State of Tennessee Bomb and Arson Section, Johnson City Police Department, Johnson City Fire Department and Federal Bureau of Investigation Evidence Response Team. Assistant U.S. Attorneys Nicholas Regalia and Wayne Taylor represented the United States.
Judge Sentences Drug Dealer Sentenced to Two More Years in PrisonRead the Press Release
PITTSBURGH – Leevaughn Walls was sentenced to 24 months in federal prison for conspiring to distribute heroin while on bond in another federal heroin and cocaine trafficking case, Acting United States Attorney Soo C. Song announced today.
Walls, age 38, formerly of Pittsburgh and Bulger, Pennsylvania, was sentenced by United States District Court Judge Nora Barry Fischer. Judge Fischer ordered that the prison sentence be served consecutively to the 63-month prison sentence Walls received in his other federal case. Judge Fischer also ordered that Walls serve three years of supervised release after he is released from prison.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration and the Pittsburgh Bureau of Police led the multi-agency investigation of this case that also included the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Homeland Security/Homeland Security Investigations, the United States Marshals Service, the Pennsylvania State Police, the Scott Township Police Department, the Munhall Police Department, the Baldwin Police Department, and the Pleasant Hills Police Department. The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Isleta Pueblo Man Pleads Guilty to Assaulting Federal OfficerRead the Press Release
ALBUQUERQUE – Ben E. Aragon, 26, an enrolled member of the Pueblo of Isleta who resides in Bosque Farms, N.M., pled guilty today in federal court in Albuquerque, N.M., to assaulting a federal officer. Under the terms of his plea agreement, Aragon will be sentenced within the range of 18 to 24 months in prison followed by a term of supervised release to be determined by the court.
Aragon was charged by criminal complaint on July 28, 2016, with assaulting an officer of the Isleta Pueblo Tribal Police Department, who is commissioned as a Special Law Enforcement Officer by the BIA’s Office of Justice Services. According to the complaint, Aragon assaulted the officer while he was attempting to arrest Aragon on tribal charges of aggravated assault and criminal trespass, and an outstanding tribal arrest warrant.
Aragon was indicted on Sept. 13, 2016, and charged with assaulting a federal officer who was engaged in the performance of her official duties on July 23, 2016, on the Isleta Pueblo in Bernalillo County, N.M.
During today’s proceedings, Aragon pled guilty to the indictment and admitted that on July 23, 2016, he assaulted a federal officer by resisting arrest and kicking the officer in her legs causing bruises while the officer was arresting him for tribal offenses. Aragon remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Isleta Pueblo Tribal Police Department and the Northern Pueblos Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Raquel Ruiz-Velez.
Individual Charged in Connection with 2001 Terrorist Attack in Jerusalem That Resulted in Death of AmericansRead the Press Release
WASHINGTON – A criminal complaint was unsealed today charging Ahlam Aref Ahmad Al-Tamimi, also known as “Khalti” and “Halati,” a Jordanian national in her mid-30s, with conspiring to use a weapon of mass destruction against U.S. nationals outside the U.S., resulting in death. The charge is related to the defendant’s participation in an Aug. 9, 2001, suicide bomb attack at a pizza restaurant in Jerusalem that killed 15 people, including two U.S. nationals. Four other U.S. nationals were among the approximately 122 others injured in the attack. Also unsealed today was a warrant for Al-Tamimi’s arrest and an affidavit in support of the criminal complaint and arrest warrant. The criminal charge had been under seal since July 15, 2013.
Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Channing D. Phillips for the District of Columbia and Assistant Director in Charge Andrew Vale of the FBI’s Washington Field Office made the announcement.
“Al-Tamimi is an unrepentant terrorist who admitted to her role in a deadly terrorist bombing that injured and killed numerous innocent victims. Two Americans were killed and four injured. The charges unsealed today serve as a reminder that when terrorists target Americans anywhere in the world, we will never forget – and we will continue to seek to ensure that they are held accountable,” said Acting Assistant Attorney General McCord. “I want to thank the many dedicated agents and prosecutors who have worked on this investigation.”
“We have never forgotten the American and non-American victims of this awful terrorist attack,” said U.S. Attorney Phillips. “We will continue to remain vigilant until Ahlam Aref Ahmad Al-Tamimi is brought to justice.”
“Al-Tamimi is a terrorist who participated in an attack that killed United States citizens,” said Assistant Director in Charge Vale. “The bombing that she planned and assisted in carrying out on innocent people, including children, furthered the mission of a designated terrorist organization. The FBI continues to work with our international partners to combat terrorists like Al-Tamimi and hold them accountable.”
According to the affidavit in support of the criminal complaint and arrest warrant, Al- Tamimi was living in the West Bank in the summer of 2001, while attending school and working as a journalist for a television station. Al-Tamimi agreed that summer to carry out attacks on behalf of the military wing of Hamas (the Izz al-Din al-Qassam Brigades), a Palestinian organization designated by the U.S. as a terrorist organization.
The affidavit states that on Aug. 9, 2001, Al-Tamimi met with the suicide bomber in Ramallah, in the West Bank, and traveled with the suicide bomber by car to Jerusalem. The suicide bomber was in possession of an explosive device concealed within a guitar. Al-Tamimi led the suicide bomber to a crowded area in downtown Jerusalem and instructed the suicide bomber to detonate the explosive device in the area, or somewhere nearby if an opportunity arose to cause more casualties. According to the affidavit, the suicide bomber entered a Sbarro pizza restaurant and detonated the explosive device, causing extensive damage, bodily injury, and death. Seven of the dead were children, including one U.S. national.
The affidavit states that Al-Tamimi pleaded guilty in an Israeli court in 2003 to multiple counts of murder arising from the Sbarro suicide bomb attack and was sentenced to 16 life terms of incarceration. The defendant served only eight years of the sentence before being released on or about Oct. 28, 2011, as part of a prisoner exchange between the government of Israel and Hamas.
Al-Tamimi was returned to Jordan upon her release from incarceration. Jordan’s courts, however, have ruled that their constitution forbids the extradition of Jordanian nationals. The U.S. has worked and will continue to work with its foreign partners to obtain custody of Al- Tamimi so she can be held accountable for her role in the terrorist bombing. The FBI also announced today that Al-Tamimi has been placed on its list of Most Wanted Terrorists.
Charges contained in a criminal complaint are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The maximum penalty for a person convicted of this charge is a lifetime term of incarceration or death. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The investigation into this matter was conducted by the FBI’s Washington Field Office. The Office of International Affairs of the Department of Justice’s Criminal Division provided significant assistance. The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the National Security Division’s Counterterrorism Section.
Victims and their families can contact the Department of Justice via e-mail at [email protected].
Individual Charged in Connection with 2001 Terrorist Attack in Jerusalem That Resulted in Death of AmericansRead the Press Release
A criminal complaint was unsealed today charging Ahlam Aref Ahmad Al-Tamimi, also known as “Khalti” and “Halati,” a Jordanian national in her mid-30s, with conspiring to use a weapon of mass destruction against U.S. nationals outside the U.S., resulting in death. The charge is related to the defendant’s participation in an Aug. 9, 2001, suicide bomb attack at a pizza restaurant in Jerusalem that killed 15 people, including two U.S. nationals. Four other U.S. nationals were among the approximately 122 others injured in the attack. Also unsealed today was a warrant for Al-Tamimi’s arrest and an affidavit in support of the criminal complaint and arrest warrant. The criminal charge had been under seal since July 15, 2013.
Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Channing D. Phillips for the District of Columbia and Assistant Director in Charge Andrew Vale of the FBI’s Washington Field Office made the announcement.
“Al-Tamimi is an unrepentant terrorist who admitted to her role in a deadly terrorist bombing that injured and killed numerous innocent victims. Two Americans were killed and four injured. The charges unsealed today serve as a reminder that when terrorists target Americans anywhere in the world, we will never forget – and we will continue to seek to ensure that they are held accountable,” said Acting Assistant Attorney General McCord. “I want to thank the many dedicated agents and prosecutors who have worked on this investigation.”
“We have never forgotten the American and non-American victims of this awful terrorist attack,” said U.S. Attorney Phillips. “We will continue to remain vigilant until Ahlam Aref Ahmad Al-Tamimi is brought to justice.”
“Al-Tamimi is a terrorist who participated in an attack that killed United States citizens,” said Assistant Director in Charge Vale. “The bombing that she planned and assisted in carrying out on innocent people, including children, furthered the mission of a designated terrorist organization. The FBI continues to work with our international partners to combat terrorists like Al-Tamimi and hold them accountable.”
According to the affidavit in support of the criminal complaint and arrest warrant, Al-Tamimi was living in the West Bank in the summer of 2001, while attending school and working as a journalist for a television station. Al-Tamimi agreed that summer to carry out attacks on behalf of the military wing of Hamas (the Izz al-Din al-Qassam Brigades), a Palestinian organization designated by the U.S. as a terrorist organization.
The affidavit states that on Aug. 9, 2001, Al-Tamimi met with the suicide bomber in Ramallah, in the West Bank, and traveled with the suicide bomber by car to Jerusalem. The suicide bomber was in possession of an explosive device concealed within a guitar. Al-Tamimi led the suicide bomber to a crowded area in downtown Jerusalem and instructed the suicide bomber to detonate the explosive device in the area, or somewhere nearby if an opportunity arose to cause more casualties. According to the affidavit, the suicide bomber entered a Sbarro pizza restaurant and detonated the explosive device, causing extensive damage, bodily injury and death. Seven of the dead were children, including one U.S. national.
The affidavit states that Al-Tamimi pleaded guilty in an Israeli court in 2003 to multiple counts of murder arising from the Sbarro suicide bomb attack and was sentenced to 16 life terms of incarceration. The defendant served only eight years of the sentence before being released on or about Oct. 28, 2011, as part of a prisoner exchange between the government of Israel and Hamas.
Al-Tamimi was returned to Jordan upon her release from incarceration. Jordan’s courts, however, have ruled that their constitution forbids the extradition of Jordanian nationals. The U.S. has worked and will continue to work with its foreign partners to obtain custody of Al-Tamimi so she can be held accountable for her role in the terrorist bombing. The FBI also announced today that Al-Tamimi has been placed on its list of Most Wanted Terrorists.
Charges contained in a criminal complaint are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The maximum penalty for a person convicted of this charge is a lifetime term of incarceration or death. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The investigation into this matter was conducted by the FBI’s Washington Field Office. The Office of International Affairs of the Department of Justice’s Criminal Division provided significant assistance. The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the National Security Division’s Counterterrorism Section.
Victims and their families can contact the Department of Justice via e-mail at [email protected].
Indialantic Man Sentenced to 13 Years in Federal Prison for Armed Bank Robbery and Other OffensesRead the Press Release
Orlando, Florida – United States District Judge Roy B. Dalton, Jr. yesterday sentenced Skyler Christian Awad (28, Indialantic) to 13 years and one month in federal prison for bank robbery, carrying a firearm during and in relation to a crime of violence, attempted robbery affecting interstate commerce, possession of a firearm by a convicted felon, and other federal firearm offenses. The Court also ordered Awad to forfeit an H&R (model 949) .22 caliber revolver and rounds of ammunition, which he had used to commit some of the offenses he was convicted of.
Awad was found guilty by a jury on December 22, 2016.
According to testimony and evidence presented at trial, between May 12, 2016, and May 16, 2016, Awad went on a crime spree in Brevard County, beginning with the theft of a loaded .22 caliber revolver from a residence in West Melbourne. Four days later, he entered a Subway restaurant in Melbourne, and attempted to rob the establishment while armed with a knife. Later that same day, he entered and robbed a TD Bank by threatening to shoot a bank teller. Law enforcement subsequently located Awad in a vehicle, where he then led them on a high-speed chase through residential areas and across busy intersections until he was stopped. Upon his arrest, officers recovered the stolen .22 caliber revolver and the bank money from Awad’s vehicle. As a convicted felon, Awad was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Melbourne Police Department, the Brevard County Sheriff’s Office, the Palm Bay Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorneys Andrew C. Searle and Chauncey A. Bratt.
Fort Myers Resident Convicted of TraffickingRead the Press Release
Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found Jason Sanon (30, Ft. Myers) guilty of conspiracy to traffic in counterfeit trademarks on DVDs and trafficking in DVDs bearing counterfeit trademarks. His sentencing hearing is scheduled for June 1, 2017.
According to the testimony and evidence presented at trial, Sanon owned and operated WipeoutDVDs.com, an online company that sold counterfeit DVDs to retail customers across the United States, from the end of 2010 until mid-2013. Sanon bought the DVDs that he sold from TM Wholesale, a Chinese manufacturer of counterfeit DVDs. The testimony established that Sanon had bought at least $600,000 in movies and TV box sets from his source in China, and then re-sold them for a profit to his customers. All of the DVDs that Sanon sold through his company bore counterfeit trademarks and logos of the movie studios that had produced the authentic versions of these disks.
The investigation leading to this prosecution was the off-shoot of a related investigation conducted by the Department of Homeland Security which resulted in the successful prosecution of 15 other individuals who had also trafficked in counterfeit DVDs from the same Chinese source. That investigation led to criminal forfeitures of over $2,400,000 and other seizures of vehicles and a business in Polk County.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with the assistance of the Motion Picture Association of America. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer, continuing the work that had previously been done by former Assistant United States Attorney Mark Bini.
Former IRS Employee Pleads Guilty to Aggravated Identity Theft and False Statement ChargesRead the Press Release
ALBUQUERQUE – Joan D. Mobley, 54, of Socorro, N.M., pled guilty yesterday in federal court in Albuquerque, N.M., to a false statement charge and two aggravated identity theft charges. The guilty plea was announced by Acting U.S. Attorney James D. Tierney and Cordale Lamb of Denver Field Division of the Treasury Inspector General for Tax Administration (TIGTA).
Mobley is a former employee of the Internal Revenue Service (IRS). She began working for the IRS in 1986 and was a revenue agent at the IRS office in Albuquerque at the time she committed the crimes to which she pleaded guilty. As a revenue agent, Mobley was responsible for performing audits of small businesses and self-employed taxpayers.
On Jan. 3, 2014, a federal grand jury filed a 28-count indictment charging Mobley with 14 counts of making false statements and 14 counts of aggravated identity theft. According to the indictment, between Jan. 2011 and Dec. 2011, Mobley falsely stated and represented to the IRS that certain taxpayers either had consented to extending the time for assessing employment taxes or agreed to the collection and assessment of additional taxes. The indictment also alleged that Mobley used the identification of those taxpayers in making those false statements without obtaining consent.
During yesterday’s proceedings, Mobley pled guilty to one false statements charge and two aggravated identity theft charges. In her plea agreement, Mobley acknowledged that while she was employed as a revenue agent for the IRS and was responsible for conducting audits of small businesses, she was assigned to audit a business located in California. Mobley acknowledged that, instead of completing the audit as required, she falsified official records to indicate that she had completed the audit. Mobley also acknowledged signing the name of the business’s president on the records even though she did not have permission to do so.
Mobley falsified these records knowing that they constituted false statements under federal laws and concerned matters that were within the jurisdiction of the IRS. One of the records falsified by Mobley was dated Jan. 10, 2011, and stated that a representative of the aforementioned California-based business had agreed to an extension of time to assess employment taxes. Another record was dated April 7, 2011 and falsely stated that the business had agreed to the assessment and collection of additional taxes. Mobley falsified these records knowing that no representative of the business had agreed either to the extension or to the assessment and collection of additional taxes. She acknowledged falsifying the records while in New Mexico.
At sentencing, Mobley faces up to five years of imprisonment on the false statements charge and a mandatory two-year term of imprisonment on each of the aggravated identity theft charges that must be served consecutive to any sentence imposed on the false statements charge. A sentencing hearing has yet to be scheduled. Under the terms of her plea agreement, Mobley is required to pay restitution to the IRS in the amount of $39,738.32.
This case was investigated by the Denver Field Division of TIGTA and is being prosecuted by Assistant U.S. Sean J. Sullivan.
Former Corrections Officer Sentenced to 18 Months for Providing Contraband in Prison and Conflict of InterestRead the Press Release
St. Croix, USVI – Chief District Court Judge Wilma A. Lewis, on March 13, 2017, sentenced Abdul Robinson, 39, of St. Croix, to six months in prison for providing contraband in prison and one year in prison for the territorial offense of conflict of interest, Acting United States Attorney Joycelyn Hewlett announced. Judge Lewis ordered Robinson to serve the one year sentence after the six-month sentence, and also ordered him to serve one year of supervised release and pay a fine of $500 and a special assessment of $25.
On September 20, 2016, Robinson pleaded guilty to providing contraband in prison and conflict of interest. According to documents filed in court, on April 5, 2013, Robinson received a cellular telephone along with $100 from an undercover agent and agreed to deliver the telephone to an inmate at Golden Grove Adult Correctional Facility. Robinson delivered the telephone inside the prison. At the time of the event, Robinson was employed as a Corrections Officer with the Golden Grove Adult Correctional Facility.
The case was investigated by the U.S. Drug Enforcement Administration and the Federal Bureau of Investigations. It was prosecuted by Assistant U.S. Attorney Alphonso G. Andrews, Jr.
Former Central Texas Detention Facility–G.E.O. Prison Guard Pleads Guilty to Sexual Abuse of a WardRead the Press Release
In San Antonio, 35-year-old former Central Texas Detention Facility—G.E.O. prison guard Barbara Jean Goodwin faces up to 15 years in federal prison after admitting to having sexual relations with an inmate, announced United States Attorney Richard L. Durbin, Jr.; United States Marshal David Sligh; and, Christopher Combs, FBI Special Agent in Charge, San Antonio Division.
Appearing before United States Magistrate Judge John W. Primomo this afternoon, Goodwin pleaded guilty to one count of sexual abuse of a ward. By pleading guilty, Goodwin admitted that from February 2016 to August 2016, she engaged in sexual acts with a federal prisoner who at the time was under her custodial, supervisory or disciplinary authority.
Goodwin remains on bond pending sentencing scheduled for June 12, 2017, before Senior United States District Judge David A. Ezra.
This investigation was conducted by the U.S. Marshals Service together with the Federal Bureau of Investigation. Assistant United States Attorneys Sarah Wannarka and Christina Playton are prosecuting this case on behalf of the Government.
Five Indicted Separately in Fraudulent Tax Return SchemeRead the Press Release
PITTSBURGH – Five residents of Western Pennsylvania have been separately indicted by a federal grand jury in Pittsburgh on charges of bank fraud, bank and mail fraud conspiracy and conspiracy to defraud the United States, Acting United States Attorney Soo C. Song announced today.
A two-count indictment returned by the federal grand jury, charging bank and mail fraud conspiracy and conspiracy to defraud the United States named Sean Brooks, 27, currently incarcerated. Three two-count indictments returned by the federal grand jury, charging mail fraud conspiracy and conspiracy to defraud the United States named Amber Eubanks, 27, of Pittsburgh, Brandon Prater 29, currently incarcerated, and Simone Prater, 29, of Pittsburgh, as sole defendants in each indictment. A one-count indictment charging bank fraud named Tyrone Gossett, 63, of Pittsburgh as the sole defendant.
According to the indictments, Sean Brooks, who was, at all material times, incarcerated, prepared and arranged for the filing of more than one hundred fraudulent tax returns on behalf of fellow inmates and other individuals and generated more than $200,000 in fraudulent refunds. The fraudulent refunds were sent to a number of different addresses, and, after forging the endorsement of the payees, the checks were cashed through federally insured financial institutions and through check-cashing establishments. Amber Eubanks, Brandon Prater, Simone Prater, and Tyrone Gossett assisted the conspiracy in a variety of ways, including sending the Internal Revenue Service the fraudulent tax returns, receiving forging, depositing and cashing the fraudulently obtained refund checks, disbursing the proceeds of the fraud amongst the conspirators, and proving personal identification information to Brooks for use in the fraudulent tax returns.
The law provides for a maximum total sentence of 35 years in prison, a fine of $1,250,000 or both for the charges pending against Sean Brooks. The law provides for a maximum total sentence of 25 years in prison, a fine of $500,000 or both for the charges pending against Amber Eubanks, Brandon Prater and Simone Prater. The law provides for a maximum total sentence of 30 years in prison, a fine of $1,000,000 or both for the charge pending against Tyrone Gossett. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service and the Department of Homeland Security – Homeland Security Investigations, conducted the investigation leading to the indictments in these cases.
An indictment is an accusation. All the defendants are presumed innocent unless and until proven guilty.
Erie Man Charged with Setting Fire to Local Furniture StoreRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on a charge of malicious destruction of property by fire, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Tony Crawford, 32, as the sole defendant.
According to the indictment presented to the court, Crawford set fire to the Fred’s Beds and Furniture building located at 117 East 12th Street in Erie on February 5, 2016.
"Any person who intentionally sets a fire is a danger to our community," said ATF Special Agent in Charge Sam Rabadi. "ATF will continue to work with our law enforcement partners to ensure that those responsible for committing arsons are held accountable."
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Erie Police Department and the Erie Fire Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Erie Felon Charged with Illegally Possessing HandgunRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been indicted by a federal grand jury in Erie on a charge of violating federal firearm laws, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Ravone Robert Deberry, 24, as the sole defendant.
According to the indictment presented to the court, on September 10, 2016, Deberry possessed a Smith & Wesson, model SW9F, 9mm handgun while being a convicted felon.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
This case was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
The EAGLE task force, which is comprised of members of the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office, Bureau of Narcotics Investigation and the Erie Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Elyria man sentenced to 20 years in prison for drug and firearms crimesRead the Press Release
An Elyria man was sentenced to 20 years in federal prison for drug and firearms crimes, law enforcement officials said.
Octavious Smith, 38, was previously found guilty of distribution of heroin and cocaine and being a felon in possession of a firearm.
Smith sold heroin and cocaine on June 10, 2015. Two months later, he possessed a Desert Eagle 9 mm pistol and ammunition, despite prior felony convictions that made it illegal for him to have a firearm, according to court documents.
“This defendant has a history of selling drugs and illegally carrying a firearm,” Acting U.S. Attorney David A. Sierleja said. “He earned every day of this prison sentence.”
“This case is another outstanding example of what can be accomplished when local, state and federal agencies work together to protect our community,” said FBI Special Agent in Charge Stephen D. Anthony.
“This is another example of local and federal law enforcement working together to put a violent career criminal behind bars,” said Elyria Police Chief Duane Whitely. “Not only is the city of Elyria safer because of this, so is the entire Cleveland area. I want to thank the U.S Attorney’s Office for their continued assistance to the Elyria Police Department and the citizens of Elyria.”
This case is the latest in a series that represent a coordinated effort on behalf of the federal and state partners to hold accountable individuals who all have significant prior firearm and or drug charges and have continued to possess firearms and/or peddle drugs in Lorain County.
This case was prosecuted by Assistant U.S. Attorneys Robert Corts, Vasile Katsaros and Marisa T. Darden following an investigation by the FBI and Elyria Police Department.
Des Moines Man Faces Charges Related to Dispensing of HydrocodoneRead the Press Release
DES MOINES, IA – On March 14, 2017, Shawn Michael Kerby, 38, of Des Moines, Iowa, appeared in U.S. District Court in connection with multiple charges related to the distribution and dispensing of hydrocodone and possession of firearms, announced United States Attorney Kevin E. VanderSchel.
Specifically, on February 23, 2017, a federal grand jury returned an indictment charging Kerby with the following:
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Eight counts of distributing and dispensing hydrocodone outside the usual course of professional practice and not for any legitimate medical purpose on multiple occasions between May 10, 2012, and November 18, 2015;
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One count of obtaining hydrocodone by misrepresentation, fraud, deception, and subterfuge, alleged to have occurred on November 18, 2015;
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One count of using a communication facility, specifically, a cellular telephone, in connection with the distribution and dispensing of hydrocodone outside the usual course of professional practice and not for any legitimate medical purpose on October 6, 2015; and
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One count of possession of firearms while being an unlawful user of and addicted to a controlled substance.
The indictment also seeks forfeiture of the subject firearms and a 2013 Ford F-150 Raptor Truck. The indictment was unsealed upon Kerby’s initial court appearance.
Kerby pleaded not guilty to the charges and his case was set for trial on May 1, 2017. The public is reminded that an indictment is merely an accusation and that Kerby is presumed innocent until and unless proven guilty.
This case was investigated by the United States Drug Enforcement Administration and is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by contacting Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected]
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Defense Contractor Pleads Guilty to Stealing Medical Equipment Intended to be Shipped to Deployed MarinesRead the Press Release
Assistant U.S. Attorneys W. Mark Conover (619) 546- 6763 and Michelle L. Wasserman (619) 546-8431
NEWS RELEASE SUMMARY – March 14, 2017
SAN DIEGO – John Montano, a former Camp Pendleton defense contractor, pleaded guilty today to conspiring to steal over $250,000 worth of medical equipment that the military had planned to ship overseas to treat injured Marines.
Montano and his co-conspirators (many of whom have already pleaded guilty) worked in warehouses run by 1st Medical Logistics Company (“1st MEDLOG”) aboard USMC Camp Pendleton. 1st MEDLOG is the unit responsible for maintaining medical equipment and shipping necessary medical items to combat forces throughout the world. By virtue of his employment as a civilian defense contractor, Montano had access to sophisticated, expensive medical equipment stored at 1st MEDLOG warehouses. In his plea agreement, Montano admitted to participating in a conspiracy to steal expensive medical equipment from 1st MEDLOG, including anesthesia machines, autoclaves, ventilators, ultrasound machines, defibrillators and laryngoscopes among other items. Montano further admitted that he used his access to and knowledge of this medical equipment to help his co-conspirators steal the items from the warehouse. His co-conspirators then secretly removed the items from the base and sold them on the open market.
Acting U.S. Attorney Alana W. Robinson would like to remind the public that these charges were the result of ongoing efforts to root out corruption among our area defense contractors. She encouraged the public to contact the Naval Criminal Investigative Service (NCIS) at 1-800-264-6485 or www.ncis.navy.mil if they have information about the theft of equipment from Camp Pendleton or other Navy installations.
As part of his plea, Montano agreed to a restitution order of $250,000 to repay the U.S. Marine Corps for the value of the medical equipment that he stole. Montano will appear for sentencing on [DATE], 2017, at [TIME] before U.S. District Judge Cathy Ann Bencivengo.
DEFENDANTS Case Number: 16CR2053-CAB
John Montano Age: 44 Grants, New Mexico
SUMMARY OF CHARGES
Count 1: Conspiracy to Engage in Theft of Government Property, Title 18, United States Code, Section 371
Maximum penalties: 5 years in prison, $250,000 fine, term of supervised release of 3 years, restitution, and $100 special assessment.
INVESTIGATING AGENCY
Naval Criminal Investigative Service
Community engagement surrounding Cleveland Division of Police’s Community and Problem-Oriented Policing PlanRead the Press Release
Over the past year, the Cleveland Police Monitoring Team has sought community input on key policies of the Cleveland Division of Police (CDP) – including use-of-force, body-worn cameras, and its mission statement, among others. The Team thanks everyone who participated for engaging with and contributing to the discussion surrounding police reform under the federal consent decree in Cleveland.
Now the reform process is seeking community feedback on the CDP’s Community and Problem-Oriented Policing Plan.
Substantive community input is the first step in the development of a successful Community and Problem-Oriented policing Plan. CDP’s policies must directly respond to what the community expects. This stage of community engagement is an active effort to learn as much as possible about what Cleveland residents want the community policing plan to include.
The Cleveland Division of Police, City of Cleveland—including the District Policing Committees and the Community Relations Board, —the Cleveland Community Police Commission, the Department of Justice, and the Monitoring Team are all working together—in a joint collaborative effort—to solicit and receive input on these policies from the Cleveland community.
Cleveland residents are invited to learn more about community policing and share your views by going to the Monitoring Team’s website. (The materials also are available on the City’s website, the CDP’s website or the CPC’s website).
Residents can share your views and provide input in two ways:
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By taking a brief online questionnaire, which is available here as well as on each of the websites listed above;
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By attending a community roundtable. There will be two community roundtables. The roundtables will include an overview of the components of a Community and Problem-Oriented Policing Plan, with an opportunity for small group discussions. The first community roundtable is on Tuesday, March 21, from 5:30- 8:30pm at the Jerry Sue Thornton Center (2500 East 22nd St., Cleveland, OH 44115). The second community roundtable is on Wednesday, March 22, from 5:30-8:30pm at Urban Community School (4909 Lorain Ave, Cleveland, OH 44102).
Those interested in attending a roundtable can send an RSVP to the Monitoring Team at [email protected] or use the RSVP links above.
The Monitoring Team hopes that all who live and work in Cleveland strongly consider being part of this important conversation about how we can work together to create a Community and Problem-Oriented Policing Plan that reflects the goals and values of the entire Cleveland community.
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Colorado Woman Sentenced for Tax Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Colorado Springs, Colo., woman was sentenced in federal court today for her role in a tax fraud scheme.
Kalena Latoya Winston, 41, of Colorado Springs, was sentenced by U.S. District Judge Beth Phillips to five years and three months in federal prison without parole. The court also ordered Winston to pay $254,893 in restitution to the IRS. Winston has remained in federal custody since her arrest in Colorado in February 2016.
Winston, who pleaded guilty on Oct. 13, 2016, operated a return preparation scheme for tax years 2011 and 2012. Winston solicited clients who lived in Colorado, Kansas and Tennessee, and prepared and submitted the returns electronically. Most of the false returns were filed with the IRS service center in Kansas City, Mo.
Winston’s main practice was to include false Schedule C businesses on her clients’ returns in order to increase the amount of the refunds by qualifying them for, or maximizing, the Earned Income Tax Credit. Winston also occasionally claimed false dependents on the tax returns. On two occasions, Winston used the personal identifying information the client provided her for the 2010 tax year in order to file a return without that client’s knowledge or permission for the following tax year.
Winston received debit cards containing the tax refunds from the false returns. Instead of listing her clients’ address on the returns, Winston listed the addresses of her co-conspirators so that she could maintain control over the refunds.
Co-defendant Pete Scott, 38, of Spring Hill, Fla., pleaded guilty to his role in the conspiracy on Nov. 17, 2016, and awaits sentencing. Scott admitted that he distributed the refund debit cards to the taxpayers after money had already been withdrawn from the cards.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation.
Chilean Charged with CyberstalkingRead the Press Release
ERIE, Pa. - A resident of Chile has been indicted by a federal grand jury in Erie on a charge of cyberstalking, Acting United States Attorney Soo C. Song announced today.
The one count indictment named Oscar Gabriel Rojas Urquieta, 24, as the sole defendant.
According to the indictment presented to the court, Urquieta sent threatening emails and social media messages to an individual in Erie whom Urquieta had met in Chile.
The law provides for a maximum total sentence of 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Gannon University Office of Campus Police and Safety conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Canadian Man Sentenced to Almost Four Months for Attempting to Enter the United States After Having Been Ordered RemovedRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: Acting United States Attorney Richard W. Murphy announced that John D. Fraser, a/k/a “John Knight,” 54, of Nova Scotia, Canada was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to time served (three months and 22 days) in prison and one year of supervised release for attempting to enter the United States after having been ordered removed.
Court records reveal that on November 20, 2016, a vehicle with Florida registration plates arrived at the Calais, Maine port of entry to the United States. The defendant, who was a passenger in the vehicle, provided a valid Canada passport in the name John Knight. He said he was going to his winter home in Port St. Lucie, Florida. An officer with U.S. Customs and Border Protection referred the defendant to secondary inspection. After initial denials, the defendant admitted that he had been living and working in the United States for over 30 years without authorization. A fingerprint check showed that the defendant had a significant criminal history under the name John D. Fraser and had been ordered removed from the United States in 2010.
The investigation was conducted by U.S. Customs and Border Protection, Department of Homeland Security.
Buffalo Man Arrested for Selling Drugs Near A Buffalo SchoolRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Thomas Cox, 49, of Buffalo, NY, was arrested and charged by criminal complaint with possession with intent to distribute, and distribution of, cocaine within 1,000 feet of a school or playground. The charge carries a mandatory minimum penalty of 15 years in prison and a maximum of life.
“By openly operating what essentially was a drug market in such close proximity to a school, this defendant has earned himself the opportunity to receive a well-deserved extra-credit bonus when it comes to punishment in the event he is convicted of the crime with which he has been charged,” said Acting U.S. Attorney Kennedy.
DEA Special Agent-in-Charge James Hunt stated, “Buffalo’s law enforcement agencies combined resources to arrest this alleged drug dealer responsible for fueling drug addiction and drug-related crime throughout our neighborhoods. Expediently, we identified and removed a threat in arms’ length of school children, putting them in harm’s way. Neither law enforcement nor our communities tolerate drug trafficking, and these arrests prove that by working together we send a message to traffickers that we will continue to weed you out.”
Assistant U.S. Attorney Patricia Astorga, who is handling the case, stated that according to the complaint, in February 2017, law enforcement officers began an investigation into the cocaine, crack cocaine, and marijuana distribution activities of the defendant out of a residence at 45 A Street in Buffalo.
On March 3, 2017, officers conducted surveillance of the residence at 45 A Street and witnessed the defendant discussing the sale of cocaine with an individual. Cox was then observed getting into vehicle and driving a short distance to a residence at 325 Mills Street. After a few minutes inside, the defendant left the Mills Street residence and returned to the A Street residence. Cox was then observed selling a plastic sandwich bag containing a quantity of white powder that had been compressed into a chunk. The substance tested positive for the presence of cocaine.
A few days later, on March 8, 2017, officers once again surveilled the A Street address and noticed traffic coming and going from the residence. Cox was observed exiting the front door of the residence and traveling once again to 325 Mills Street. Once again, the defendant eventually returned to the A Street residence and provided cocaine to another individual.
On March 10, 2017, officers executed a search warrant at 325 Mills Street and discovered a small safe in the attic area which contained a substantial amount of United States Currency and a blue canvas bag containing two plastic baggies of suspected crack cocaine, a digital scale with drug residue, and numerous empty plastic sandwich bags. A search of 45 A Street revealed a large quantity of small Ziploc bags commonly used for packaging crack cocaine. A DVR video recording system which recorded the interior and exterior of 45 A Street was also seized. The defendant was found inside 45 A Street when the search warrant was executed and arrested. The residences at 325 Mills Street and 45 A Street are located within about 230 feet and 72 feet of Buffalo Public School 59, The Science Magnet School located at 50 A Street.
The defendant made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder and is being detained.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the Buffalo Police Department, under the direction of Commissioner Daniel Derenda; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly; the Erie County Sheriff’s Office, under the direction of Timothy Howard; Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy; and the Cheektowaga Police Department, under the direction of Chief David Zack.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Buffalo Man Arrested for Enticing A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Brett Schultz, 37, of Buffalo, NY, was arrested and charged by criminal complaint with enticement of a minor to engage in sexual activity, attempted enticement of a minor, and transferring obscene matter to a minor. The charges carry a mandatory minimum penalty of 15 years in prison and a maximum of life.
Assistant U.S. Attorney Jonathan P. Cantil, who is handling the case, stated that according to the complaint, on March 10, 2017, the defendant sent a message to what he believed was a 14 or 15 year old high school girl online. The individual was actually an undercover law enforcement officer. During an online conversation, Schultz asked: “You like older men? The undercover officer responded: “Hi, yes I do;-). Schultz then replied: “Nice well ill spoil you if your a good girl to me.” As the conversation continued, the defendant asked: So how old are you really? The undercover officer responded: “Ru gonna be mad? I'm not 18 yet. I'm almost 16 tho.” To which Schultz responded: “I'm not mad just don't want trouble.” In the afternoon of March 10, 2017, Schultz sent the undercover officer a naked picture of himself in a text message. The defendant also asked the undercover officer multiple times to send sexual pictures in return.
On March 11, 2017, Schultz sent three more naked images of himself to the undercover officer and once again asks for an image to be sent to him in return. Later in the day, the defendant and the undercover officer made plans to meet the next day. During that conversation, the undercover officer said “our secret right?” Schultz replied: "Yes I don't want to go to jail i have a son a house and a life."
A day later, on March 12, 2017, at approximately 7:10 p.m., Schultz pulled into the parking lot of a local coffee shop. The defendant was then approached and arrested by special agents with Homeland Security investigations.
The defendant was ordered detained following a detention hearing this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder.
The complaint is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Athens Methamphetamine Dealer Sentenced to 188 Months in PrisonRead the Press Release
United States Attorney G. F. “Pete” Peterman, III announces that Clint Jackson Beck, age 37, of Arnoldsville, Georgia was sentenced today to serve more than 15 years (188 months) in Federal prison for possession with intent to distribute methamphetamine. The sentence was handed down by Senior U.S. District Court Judge C. Ashley Royal in Athens, Georgia.
Mr. Beck entered a plea of guilty to the charge on December 20, 2016. Facts admitted at his guilty plea showed that on March 21, 2016, he and co-defendant Dana Michelle Thomas were pursued and arrested after being observed by law enforcement officers conducting a hand-to-hand illegal drug sale in front of a residence in Athens, Georgia. When stopped by a law enforcement officer, Mr. Beck pulled away from the officer and ran but was subsequently apprehended. A search of the vehicle revealed a glass smoking pipe and a small green spoon. Also found were a digital scale, several sandwich baggies containing what proved to be methamphetamine and a large quantity of small jeweler bags commonly used to package methamphetamine for sale. A search of Mr. Beck’s cell phone revealed extensive text messages detailing drug trafficking activities.
At the time of his arrest, Mr. Beck had two active arrest warrants: one Federal warrant from the U. S. Marshals and a felony probation warrant from Jackson County, Georgia. He also admitted that he has ten prior criminal convictions.
Ms. Thomas also pled guilty and was sentenced by Judge Royal to serve 20 months’ imprisonment on January 18, 2017.
This case was investigated by the Clarke County Sheriff’s Office, Athens-Clarke County Police Department, and the Northeast Georgia Regional Drug Task Force. Assistant United States Attorney Peter D. Leary prosecuted the case for the United States.
Questions concerning this case should be directed to Brittney Kish Lightsey, United States Attorney’s Office, at (478) 752-3511.
Albuquerque Man Sentenced to Prison for Federal Armed Robbery ConvictionRead the Press Release
ALBUQUERQUE – Martin Huertta, 43, of Albuquerque, N.M., was sentenced this morning in federal court to a 108-month term of imprisonment followed by five years of supervised release for his armed bank robbery conviction.
Huertta was arrested in March 2016, on a criminal complaint charging him and four co-defendants, Greg Miera, 51, Christian Herrera, 20, Christopher Gallegos, 33, and Isaiah Gallegos, 20, all of Albuquerque, with bank robbery. According to the complaint, a source identified the defendants as the individuals involved in robbing the US Bank branch located at 5620 Wyoming Blvd. NE in Albuquerque, on March 30, 2016. Albuquerque Police Department (APD) officers conducted surveillance as a vehicle with four men pulled up to the US Bank on the afternoon of March 30, 2016. Three of the men remained in the vehicle while the fourth entered the bank, threatened to shoot the bank employees, and demanded that two bank tellers place cash into a plastic bag.
Huertta, Miera, Herrera, Isaiah Gallegos and Christopher Gallegos were indicted on April 27, 2016, and charged with bank robbery. On Sept. 9, 2016, Huertta entered a guilty plea to the indictment without the benefit of a plea agreement
Three of Huertta’s co-defendants also have entered guilty pleas. Miera entered a guilty plea on Oct. 11, 2016, Christopher Gallegos entered a guilty plea on Feb. 13, 2017, and Herrera entered a guilty plea on Feb. 24, 2017. At sentencing, Herrera, Christopher Gallegos and Miera each face a statutory maximum penalty of 25 years in federal prison. They remain in custody pending sentencing hearings.
Isaiah Gallegos has entered a plea of not guilty to the indictment and is scheduled for trial on April 24, 2017. Charges in criminal complaints and indictments are merely accusations and defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Letitia C. Simms is prosecuting the case.
Acting U.S. Attorney and IRS Special Agent in Charge Announce Ceremony to Present Equitable Sharing Funds from Township 37 Marijuana Grow Case to Maine Law Enforcement PartnersRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Bangor, Maine: Acting United States Attorney Richard W. Murphy and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, announced that on Thursday, March 16, 2017, at 11:00 a.m., in the U.S. Attorney’s Office, located at 202 Harlow Street, Bangor, Maine they will recognize the distribution of more than $1.1 million of criminally forfeited funds to eight Maine law enforcement agencies for their participation in the successful federal prosecution of Malcolm French and Haynes Timberland, Inc. Pursuant to the U.S. Department of the Treasury’s Equitable Sharing Program, the funds have been distributed to the Maine Drug Enforcement Agency; the Maine State Police; the Maine Warden Service; the Washington County Sheriff; and the Brewer, Biddeford, Scarborough and Gorham police departments.
13 March 2017
Woman Sentenced to Eight Years for Alien Smuggling Leaving Two Dead, One Brain Dead, One ParalyzedRead the Press Release
For Further Information, Contact: Assistant U.S. Attorney Lara A. Stingley (619)546-8403 and Brandon J. Kimura (619) 546-9614
NEWS RELEASE SUMMARY – March 13, 2017
SAN DIEGO – An alien smuggler whose crash while speeding away from Border Patrol last year resulted in the deaths of two of her customers was sentenced today in federal court to eight years in prison.
Lydiana Castro, of Calexico, California, pleaded guilty in July of 2016, admitting that on March 23, 2016, she picked up five undocumented aliens at a gas station in an area known as “Pilot’s Knob,” a mountainous area near Andrade, California. Approximately five minutes later, U.S. Border Patrol agents, who saw Castro picking up the undocumented aliens, activated their lights and sirens in an attempt to conduct a vehicle stop.
Castro admitted in her plea agreement that she saw Border Patrol and started to slow down as if to pull over but decided suddenly to take off. But she accelerated, driving off of the Andrade Road freeway entrance and onto an embankment. Her vehicle fishtailed and continued toward Interstate 8 while careening down the embankment. Castro drove onto the westbound lane of Interstate 8 and struck a passing semi-truck. The defendant’s vehicle became entangled with the semi-truck and was dragged along with the semi-truck until it stopped on the side of the Interstate.
U.S. Border Patrol and first responders arrived to the crash site to find one man hanging face down through the vehicle’s rear window and four other men seated in the second and third rows of the vehicle’s backseats in varying levels of traumatic medical conditions and non-responsive states. Two of the individuals in the vehicle were later pronounced dead at the scene. The remaining passengers were transported to a trauma hospital in Phoenix, Arizona. Of the three surviving passengers, one was deemed brain dead and was transported on life support back to Mexico at the family’s request; one permanently lost the use of both of his legs; and the third continues to live with the challenges of his injuries.
DEFENDANT Criminal Case No. 16CR0731-BAS
Lydiana Castro, Calexico, CA Age: 31
SUMMARY OF CHARGES:
Count 1 – Transportation of Certain Aliens and Aiding and Abetting (8 U.S.C. § 1324(a)(1)(A)(ii), (v)(II), and (a)(1)(B)(iv)).
Maximum Penalties: maximum of life in prison; maximum of $250,000; a mandatory special assessment of $100.00; a term of supervised release of not more than 5 years.
INVESTIGATING AGENCIES
Homeland Security Investigations – U.S. Department of Homeland Security
U.S. Border Patrol – U.S. Department of Homeland Security
Virginia Woman Pleads Guilty to Filing False Tax Return and Using Customer IDs to Make Fraudulent Credit Card ChargesRead the Press Release
A Haymarket, Virginia woman pleaded guilty today in U.S. District Court in the Eastern District of Virginia to filing a false income tax return and aggravated identity theft, 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.
According to documents filed with the court, Karen Holtz worked for JMS Ventures Inc. (JMS), which did business as the Kenyan Collection, and which is a small business that imports and distributes handmade Kenyan goods. Holtz was responsible for taking, processing, and fulfilling customer orders, accepting customer payments, which included charging customer credit cards, preparing customer invoices, keeping track of JMS’s inventory, and maintaining JMS’s books and records using the accounting software QuickBooks. From at least 2008 through April 2013, Holtz wrote herself unauthorized checks from JMS’s bank account and unlawfully diverted customer payments made using PayPal by transferring the payments directly to her personal bank account. Holtz also used JMS customers’ personal identification information to make fraudulent charges to their credit cards.
Holtz intentionally did not enter all of the unauthorized checks written to herself in the JMS QuickBooks. She also purposefully did not enter the transfers she made to herself from PayPal. As a result, the JMS’s books and records understated Holtz’s true income. For tax years, 2008 through 2013, Holtz filed false individual tax returns on which she failed to report more than $305,000 in income.
Sentencing is scheduled for June 23. Holtz faces a statutory maximum sentence of three years in prison for filing a false return and a mandatory minimum sentence of two years in prison for aggravated identity theft. She also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Boente thanked special agents of the U.S. Secret Service and IRS-Criminal Investigation, and the Loudoun County Sheriff’s Office, who conducted the investigation, and Assistant U.S. Attorney Katherine L. Wong and Trial Attorney Kimberly G. Ang of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Virginia Man Sentenced for Cyber StalkingRead the Press Release
Acting United States Attorney Robert C. Stuart announced that on March 10, 2017, Richard Killebrew, 37, of Newport News, Virginia, was sentenced for the crime of Cyber Stalking. The Honorable Robert F. Rossiter, Jr., United States District Court Judge, sentenced Killebrew to a 41-month term of imprisonment. There is no parole in the federal system. After his release from prison, Killebrew will begin a term of supervised release of 3 years.
A law enforcement investigation determined that between at least March, 2016, and July, 2016, Killebrew repeatedly used a computer and cell phone to send threatening messages to victims located in the District of Nebraska and elsewhere. In March, 2016, Killebrew used a cell phone to send a text message to a victim located in the District of Nebraska, which contained death threats. Between March, 2016, and July, 2016, Killebrew also posted numerous death threats directed at victims, located in Nebraska and elsewhere, on an internet blog. Phone and internet records obtained by law enforcement confirmed Killebrew had made the threats while he was located in Virginia.
After determining these threats were made by Killebrew, law enforcement arrested him at his residence in Newport News, Virginia. Killebrew was transported back to the District of Nebraska, where he was eventually convicted in the United States District Court, District of Nebraska, for the crime of Cyber Stalking.
The case was investigated by the Federal Bureau of Investigation and Omaha Police Department.
Vice-President of SK Labs Found Guilty of Conspiracy, Mail Fraud ChargesRead the Press Release
Abingdon, VIRGINIA – An Irvine, California, man was found guilty Friday afternoon following a five-day jury trial on conspiracy and mail fraud charges in relation to his role in a conspiracy to defraud the United States Food and Drug Administration, Acting United States Attorney Rick A. Mountcastle announced.
After one and one-half hours, a federal jury sitting in the United States District Court for the Western District of Virginia in Abingdon found Sitesh Bansi Patel, 33, of Irvine, California guilty of one count of conspiracy to defraud the FDA, one count of conspiracy to commit mail fraud and three counts of mail fraud. At sentencing, Patel faces up to 85 years in prison, a fine of up to $1.25 million and the potential forfeiture of assets acquired through criminal behavior.
In a separate hearing Friday, a co-conspirator in the matter, Guillermo “Willy” Ramos, 41, of Oceanside, California, was sentenced to two years’ probation for his role in the conspiracy. Steven Donald Wood, 38, of Danville, Virginia, was previously sentenced to probation for a term of one year and ordered to forfeit $1.5 million, which was paid prior to Wood pleading guilty. Wood was also ordered to pay a $10,000 fine.
According to evidence presented during last week’s trial, Patel was the vice president of SK Labs, a California-based supplement manufacturer. Patel has a Pharm.D degree. In 2008 and 2009, Patel used SK Labs to produce H-Drol and M-Drol for Steve Wood’s company Competitive Edge Labs. The products labeled M-Drol and H-Drol contained prohormones. The products were misbranded because the labels identified them as “dietary supplements” when, in fact, they were drugs. The active ingredients in H-Drol and M-Drol are now classified by the DEA as anabolic steroids. In 2009, when it became widely known in the supplement industry that these types of products were being actively investigated by the FDA, SK Labs quit producing H-Drol and M-Drol. However, beginning in December 2010, Patel arranged for Steve Wood, who was a significant customer of SK Labs, to meet Willy Ramos, of Oceanside, California, via email so that Ramos could begin producing H-Drol and M-Drol for Steve Wood. Patel received, at his home, the first shipments of the raw powders, labels, and payment from Wood. On more than one occasion, Patel transported those items to a shopping mall parking lot where he delivered them to Ramos. Ramos encapsulated, bottled, and labeled the H-Drol and M-Drol on several occasions. Patel arranged for the first shipment of finished product to be sent to Wood in the Danville, Virginia, area. Patel was paid by Ramos and Wood for his role. Wood testified he sent Patel $8,000 to $10,000 in cash on at least two occasions. The cash was sent in supplement bottles. Ramos testified that he paid Patel $7,500 in cash. Ramos quit producing the products when Steve Wood was arrested on September 14, 2011, in the Danville, Virginia, area.
Wood obtained his raw powder from Xinli “Eric” Li, a Chinese national, who pleaded guilty in federal court in Abingdon on December 4, 2015. Li forfeited $1.6 million and served five months in prison prior to being deported to China.
M-Drol listed its single active ingredient as 2a, 17a di methyl etiocholan 3-one, 17b-ol, a chemical nomenclature for methasterone, also known as “Superdrol.” The FDA has identified methasterone as a “designer steroid” or “designer drug”, a structural or functional analog of a controlled substance designed to mimic the pharmacological effects of the original drug. H-Drol listed its single active ingredient as 4-chloro-17a-methyl-androst-1,4-diene-3-17b-diol, the nomenclature for a designer drug identified as halovar, a clone of halodrol. Both products were deemed to be misbranded drugs because the label was false, that is, the product was labeled as a “dietary supplement” but contained a “steroid” or drug. Therefore, neither product met the definition of a dietary supplement. Both products were popular among those seeking an increase in muscle mass and loss of body fat and were distributed widely in the U.S. and overseas, both at retail stores and via the internet. The use of anabolic steroids or dietary supplements that contain anabolic steroids or designer steroids may trigger numerous adverse health effects in the human body.
The investigation, known as Operation Grasshopper, has resulted in the forfeiture of over $3 million and felony convictions for seven different individuals from Virginia, California, Florida, New York and China.
The investigation was conducted by the United States Food and Drug Administration – Office of Criminal Investigations. The Pittsylvania County Sheriff’s Office provided valuable assistance in the case. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
United States Attorney Zachary T. Fardon Announces ResignationRead the Press Release
CHICAGO — Zachary T. Fardon, United States Attorney for the Northern District of Illinois since 2013, today announced his resignation from the Office, effective immediately. First Assistant U.S. Attorney Joel R. Levin has assumed the position of United States Attorney on an acting basis.
Mr. Fardon served as United States Attorney since Oct. 23, 2013, following his appointment by President Barack Obama. Under Mr. Fardon’s leadership the Office achieved significant convictions in the areas of public corruption, terrorism, gang crimes and narcotics, among many others.
Mr. Fardon created a specialized unit within the Criminal Division to address violent crime, while increasing the Office’s prosecutions of illegal firearms to its highest in more than a decade. His tenure was also distinguished by the creation of a new section to prosecute securities and commodities fraud, which resulted in a first-of-its-kind conviction for financial spoofing.
Mr. Fardon served on the U.S. Attorney General’s Advisory Committee since 2014. A select number of U.S. Attorneys are appointed to the AGAC to advise the Attorney General on policy, management and operational issues impacting U.S. Attorneys’ offices across the country.
“It has been the privilege of a lifetime to lead the U.S. Attorney’s Office in Chicago,” said Mr. Fardon. “I want to thank all of the talented men and women of the Office for their hard work and dedicated public service during my term.”
“Zach has served the citizens of the Northern District of Illinois and the United States with marvelous distinction,” said Mr. Levin. “I want to thank Zach for his service and his friendship, and I look forward to all that he will achieve in the future.”
Mr. Levin served as the First Assistant U.S. Attorney since 2014. He previously worked as an Assistant U.S. Attorney in the Eastern District of Wisconsin and the Northern District of California. In 1997 he joined the U.S. Attorney’s Office in Chicago, where he was part of the trial team, along with Mr. Fardon, that successfully prosecuted former Illinois Governor George Ryan on corruption charges.
Mr. Levin worked in private law practice from 2008 until returning to the U.S. Attorney’s Office as the First Assistant in 2014. Mr. Levin is a member of the American College of Trial Lawyers and an Adjunct Professor of Law at Northwestern University Pritzker School of Law. He is a graduate of Yale University and Harvard Law School.
United States Attorney Leaves OfficeRead the Press Release
HONOLULU – The United States Attorney for the District of Hawaii, Florence T. Nakakuni, retired from federal service effective Saturday, March 11, after receiving a request for her resignation as part of the transition in administrations in Washington, D.C. Appointed by President Obama in 2009, she became the first woman to serve as the Presidentially appointed United States Attorney in this district. The appointment came after having been in the office as an Assistant U.S. Attorney since 1985, including roles as Chief of the Drug and Organized Crime Section and Chief of the Organized Crime Strike Force Unit.
Pursuant to the Federal Vacancies Reform Act, First Assistant U.S. Attorney Elliot Enoki became Acting United States Attorney upon her retirement.
United States Attorney Emily Gray Rice Submits Her ResignationRead the Press Release
CONCORD, N.H.: New Hampshire’s United States Attorney Emily Gray Rice has announced her resignation, effective March 10, 2017. Ms. Rice was appointed as United States Attorney by President Barack Obama on the recommendation of Senator Jeanne Shaheen and with the support of Senator Kelly Ayotte, and unanimously confirmed by the United States Senate. Since January, 2016, she has served as the chief federal law enforcement officer for the District of New Hampshire, and has led an office of over 40 employees dedicated to enforcing all federal criminal and civil laws in the state.
In announcing her departure, Ms. Rice said, “I am deeply honored to have served the people of New Hampshire as United States Attorney, and I am grateful for the trust placed in me by President Obama and our law enforcement and community partners.” Ms. Rice praised her colleagues at the United States Attorney’s Office and commended their dedication to public service:
The members of this office are highly-experienced public servants who represent the interests of the United States with the utmost dedication and integrity. Working with my colleagues has been the greatest experience of my professional life, and I know that this will remain true no matter what I may do in the future.
Ms. Rice also thanked federal, state and local law enforcement for their hard work and partnership in fighting crime in New Hampshire: "During my tenure as United States Attorney, New Hampshire faced unprecedented challenges to public health and safety, including the flood of illicit opioids into our state. I want to extend my profound gratitude to our federal partners, the New Hampshire Attorney General's Office, the New Hampshire State Police, the New Hampshire Association of Chiefs of Police, and the local police departments across New Hampshire, for their unfailing dedication to working with my office to improve the quality of life for all who live here."
Ms. Rice expressed her gratitude to all of the community partners working to bring resources and assistance to the public: "I also want to recognize the tremendous work done by community partners in New Hampshire who serve vulnerable populations, and who work to combat addiction, human trafficking and violent crime and to support the victims of crime. Their energy and commitment are a consistent source of inspiration to me and my colleagues."
In closing, Ms. Rice recognized and thanked First Assistant United States Attorney John J. Farley, who will serve as Acting United States Attorney pursuant to the Vacancies Reform Act until a new presidentially-appointed United States Attorney takes office. “John has dedicated his entire legal career to public service and will lead the United States Attorney’s Office for the District of New Hampshire with distinction. He is a superb lawyer, a talented manager and a deeply-respected colleague who meets the highest standards of excellence. He has been an indispensable partner in leading this office, and the public can be confident that he will seamlessly continue the work of the Department of Justice.”
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U.S. Attorney Walt Green Announces His ResignationRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that he has submitted his resignation as United States Attorney for the Middle District of Louisiana effective March 10, 2017.
U.S. Attorney Green stated: “I wish to thank my incredible staff and law enforcement family for all their support over the years as I respectfully submit my resignation as United States Attorney. With over twenty-seven years as a United States Marine and twenty years as a member of the Department of Justice, I will treasure all my memories of public service to this great nation.”
As U.S. Attorney, Mr. Green prioritized protecting the district from terrorism and threats to national security, violent crime, human trafficking, as well as cyber threats, corruption, and fraud, with a special emphasis on assisting victims of crime.
Mr. Green fought human trafficking and the sexual exploitation of children by surging the number of prosecutors to aggressively pursue offenders and significantly expanding his Middle District Human Trafficking Task Force. His tenure saw prosecutions resulting in human traffickers being sentenced to 192 and 115 month sentences; a 20-year sentence for an offender who extorted children into producing child pornography; and a 25-year sentence for an offender who expressed interest in kidnapping and sexually abusing a child. He and his task force also engaged in outreach efforts aimed at educating law enforcement agencies, non-profit organizations, medical providers, and others about recognizing and investigating human trafficking and, most importantly, assisting its victims.
Violent crime was a focus throughout his tenure, forming a united front with federal, state, and local law enforcement. His leadership saw a doubling of the number of Organized Crime Drug Enforcement Task Force (OCDETF) operations aimed at large-scale and violent drug organizations, gangs, and cartels (including the prosecution of 39 offenders in Operation Third World, the largest such prosecution in the history of the district); a surge in the number of federal gun prosecutions over the last year through Operation Joint Endeavor; the launching of a new initiative, dubbed “Project Infiniti”, to increase federal prosecutions of violent drug offenders; the creation and staffing of the multi-jurisdictional Violent Crimes Unit and the Crime Strategies Unit; co-leading the Baton Rouge Area Violence Elimination program; and leading reentry and diversion efforts aimed at reducing recidivism.
Mr. Green created and led the Middle District of Louisiana’s innovative cyber security initiative, a comprehensive effort to increase awareness of cyber security issues, better protect potential victims in the district, and take a more aggressive approach at initiating criminal investigations and prosecutions where appropriate. Through his leadership, Mr. Green established new relationships with his district’s federal, state, and local law enforcement partners; established a new law enforcement working group to better address and respond to cyber threats affecting the Middle District; and directed a significant investment in outreach to the private sector and business community. Mr. Green’s efforts led to a significant increase in the number of cyber- and computer crime-related criminal investigations being led by his office.
Mr. Green aggressively pursued white collar criminals, including corrupt public officials and those seeking to defraud government programs and private entities, which included the district’s first insider trading prosecutions, in connection with the sale of The Shaw Group, and its first prosecution of the Bank Secrecy Act’s anti-money laundering provisions.
His efforts included overseeing the continuation of the district’s successful health care fraud initiative, including the efforts of the Baton Rouge Medicare Fraud Strike Force, part of the U.S. Department of Health and Human Services and the U.S. Department of Justice’s multi-agency effort to fight Medicare fraud. By dedicating significant, additional office resources to the anti-health care fraud effort, and partnering with the Department of Justice’s Criminal Division and dedicated Strike Force attorneys, Mr. Green’s office convicted numerous defendants of health care fraud and related schemes, obtained dozens of lengthy prison sentences (including several of the longest sentences for health care fraud in the history of the district), and obtained judgments and restitution orders totaling tens of millions of dollars.
Throughout his tenure, Mr. Green demonstrated his commitment to bringing to justice those who violated the civil rights of others, including convicting three former state corrections officers in the beating of an inmate, convicting the Sorrento police chief in a civil rights investigation, and, most recently, charging four former supervisory correctional officers with beating a handcuffed and shackled inmate.
Mr. Green led his civil division in using the civil process to combat healthcare fraud, protect the interests of the United States, forfeit criminal proceeds, and collect millions of dollars in criminal and civil judgments for victims of crime, the U.S. Treasury, and various agencies.
Mr. Green is also the Executive Director of the National Center for Disaster Fraud (“NCDF”), formerly the Hurricane Katrina Fraud Command Center, located in Baton Rouge. The NCDF is the central point for the receipt and processing of disaster fraud-related complaints nationwide and facilitates complaints to the appropriate federal, state, and local investigative agencies.
On March 13, 2014, President Obama nominated Mr. Green for the position of United States Attorney for the Middle District of Louisiana. The U.S. Senate unanimously confirmed Mr. Green’s nomination on May 1, 2014, and he was sworn-in on June 2, 2014. Mr. Green oversaw a district comprised of nine parishes and approximately one million residents, managing a staff of 60 attorneys and support personnel.
Mr. Green earned his B.A. from Louisiana State University and his J.D. from Tulane Law School. From 1993 through 1997, he served on active duty in the United States Marine Corps. In 1999, he became an Assistant United States Attorney in Las Vegas. He then returned to Baton Rouge where he continued serving as an Assistant United States Attorney. Prior to becoming U.S. Attorney, Green served as the Acting United States Attorney (2013-2014), the First Assistant United States Attorney (2010-2013), and the Deputy Criminal Chief in charge of the Violent Crime and Narcotics Section (2001-2010). He also served as the Anti-Terrorism Advisory Committee Coordinator, the Anti-Terrorism Task Force Coordinator, and the Weapons of Mass Destruction Coordinator.
Mr. Green’s commitment to public service also includes twenty-seven years of disguished service in the United States Marine Corps, including two tours of duty in Iraq. He continues to serve in the Reserve, holding the rank of Colonel.
U.S. Attorney Magidson Announces His ResignationRead the Press Release
HOUSTON – United States Attorney Kenneth Magidson has announced that he will resign as chief law enforcement officer for the Southern District of Texas (SDTX) effective midnight March 10, 2017.
“It has been privilege and a honor to serve as the United States Attorney for the Southern District of Texas,” said Magidson. “It has been a hallmark of my administration to ensure that our office lived up to the ideals of justice. The ability to everyday protect the interests of the United States has truly been a great blessing and a hallmark of my career. I am confident that our office will continue to live up to these ideals.”
Magidson was nominated by former President Barack Obama in June 2011 and began serving as U.S. Attorney for the district on Sept. 30, 2011, following confirmation by the Senate. As the leader of one of the busiest districts in the nation, Magidson oversaw nearly 370 employees, including approximately 180 Assistant U.S. Attorneys in the 7th largest district in the country, covering 43,000 miles and representing 8.3 million people. His resignation today brings to a close nearly 35 years of federal law enforcement experience.
The Southern District of Texas saw a wide variety of issues due to the large metropolitan area of Houston and proximity to the border that Magidson equally considered a priority. In his five and a half years as U.S. Attorney, prosecutors in his office convicted nearly 40,000 defendants.
He believed in protecting this district and held national security as one of his primary concerns, recently securing the conviction of a 24-year-old man of attempting to provide material support to ISIL. Weeding out public corruption, civil rights and protecting people from the harms associated with illegal immigration and human smuggling were also considered paramount.
Magidson also combatted the proliferation of technology-facilitated sexual exploitation crimes against children with cases brought as a result of Project Safe Childhood. The SDTX actively supported this initiative through coordination of federal, state and local law enforcement efforts to prosecute predators and rescue child victims. Under his leadership, prosecutors fought to help bring criminals to justice and protect the most vulnerable members of our society. The SDTX convicted, on average, one defendant each week during his tenure.
Trafficking in persons is a form of modern-day slavery and a particular problem in the SDTX with its many miles of border with Mexico. Magidson placed a high emphasis on prosecuting those traffickers who often prey on the poor, frequently unemployed or underemployed and who may lack access to social safety nets. One such example was the conviction of 68-year-old woman behind a 14-defendant sex trafficking ring operating in Houston. This notable case is one of the most significant in scope and magnitude to be tried to a verdict of guilty on all counts, and one of the few in which as many as 12 victims of an international sex trafficking scheme came forward to testify at trial. The defendant later received life in prison.
Aggressively prosecuting drug traffickers through the Organized Crime Drug Enforcement Task Force (OCDETF) was also a top priority, as was the targeting of criminals involved in violent crime with significant prosecutions for bank and armored robberies as well as firearms offenses.
Finally, Magidson led the office in its fight to combat fraud throughout the district. Magidson believed in protecting the interests of the U.S. and the citizens of the district by targeting identity thieves, telemarketers, tax evaders and persons engaged in insurance fraud, bank fraud, wire fraud, mail fraud, mortgage fraud and fraud committed against federal agencies. Additionally, the SDTX consistently ranked as one of highest in terms of federal health care fraud prosecutions throughout the nation.
During his tenure, the office’s civil division also handled a large caseload of civil litigation in some of the most difficult and important cases the government faces, including resolution of the border fence issues, defending serious medical malpractice claims and recovering millions in criminal debt and civil fraud. In 2015, Magidson also established a new Civil Rights Section within its Civil Division that has the authority to investigate and to remedy civil rights violations within the district.
Prior to serving as U.S. Attorney, Magidson served as an Assistant U.S. Attorney (AUSA) in the SDTX since 1983. For most of that time, he was the OCDETF Regional Coordinator for the Southwest Region, which includes all of Texas, Oklahoma, New Mexico, Arizona and the Central and Southern Districts of California and encompasses 11 federal judicial districts. The OCDETF program targets the most significant drug trafficking and related money laundering organizations operating in the United States. Previously, as chief of the Narcotics Division, he supervised assigned AUSAs in addition to his regional OCDETF coordination duties.
In 2008, Magidson was called upon to serve as the Harris County District Attorney upon appointment of then Texas Governor Rick Perry. As the District Attorney of the third most populous county in the United States, he managed an office with more than 300 prosecutors and investigators.
Cognizant of his experience and accomplishments, the Department of Justice asked Magidson to serve under then Attorney General Janet Reno as the director for the Executive Office for OCDETF in Washington, D.C., from May 1996 through May 1997. In that role, he was responsible for a broad range of management, financial and administrative duties and supervised a staff consisting of professional and support staff deemed necessary for performing the duties of the office.
Prior to his federal career, Magidson served as an Assistant District Attorney in Harris County. During that time, he served as the chief felony prosecutor in the 177th District Court and was responsible for the prosecution of major felony crimes including capital murders, rapes, robberies, burglaries, kidnappings and more.
Magidson graduated from the University of Maryland and holds a Doctor of Jurisprudence degree from South Texas College of Law in Houston.
U.S. Attorney Christopher R. Thyer Announces ResignationRead the Press Release
LITTLE ROCK—As requested by Attorney General Jeff Sessions, United States Attorney Christopher R. Thyer, 47, of Jonesboro, announced his resignation effective March 10, 2017. Mr. Thyer, who has made serving the needs of the poor and crime-affected citizens of eastern Arkansas a priority during his tenure, has been the United States Attorney for the Eastern District of Arkansas since December 31, 2010.
Patrick C. Harris, 64, of Little Rock, who has served as the First Assistant United States Attorney for the past four years, assumed leadership of the office as Acting United States Attorney effective immediately upon Mr. Thyer’s resignation.“Our laws and our law enforcement agencies are meant to do two things: to allow citizens of the United States to fully realize the pursuit of peace and prosperity, and to arrest and prosecute those who criminally interfere with those freedoms,” said Mr. Thyer. “I have seen communities where drugs and violence have stolen even the freedom to go for a walk or play in a park because of the brazenness of violent drug dealers. For more than six years I have had the privilege of working with local, state and federal law enforcement officers and prosecutors to fight these violent drug dealers. This has been a highlight of my professional life for which I am thankful.”
During his tenure, Mr. Thyer has led the U.S. Attorney’s Office for the Eastern District of Arkansas in doing just that. He served on the executive board for the Gulf Coast High Intensity Drug Trafficking Area (HIDTA) program, as well as the executive board of the FBI’s Joint Terrorism Task Force, and has been a key voice in expansion of the Organized Crime Drug Enforcement Task Force (OCDETF) in Arkansas. What Mr. Thyer has said that he is most proud of is his office’s work helping disadvantaged communities to take back their neighborhoods from violent drug dealers. Under Mr. Thyer’s leadership, the U.S. Attorney’s Office for the Eastern District of Arkansas has succeeded in prosecuting many violent drug organizations.
In October 2011, less than a year after Mr. Thyer was sworn in, a Grand Jury indicted 71 defendants in “Operation Delta Blues,” the first of many cases prosecuted by the U.S. Attorney’s Office for the Eastern District of Arkansas aimed at tackling the dual epidemic of drugs and violence in eastern Arkansas and the Delta. “Delta Blues” dismantled an international cocaine ring operating out of West Memphis, Helena, and Marianna, that included five corrupt police officers. The case ended with the conspiracy leader, Sedrick Trice, receiving a 40-year sentence, Demetrius Colbert, who shot an FBI agent, receiving life plus 10 years in prison, and all police officers convicted. Other operations in the same area included “Operation Delta Crossroads” (19 defendants) and “Operation Plastic Castle” (47 defendants).
Under Mr. Thyer’s leadership, the crime-ridden areas where local police most needed federal assistance received that assistance, including Mississippi, Craighead, Crittenden, Phillips, and Lee counties. Since 2013, multiple joint operations between local law enforcement and federal agencies such as the Arkansas State Police, DEA, FBI, and ATF have resulted in arrests of hundreds of criminals and the dismantling of drug networks in those areas. In the past three years in Blytheville alone, the U.S. Attorney’s Office for the Eastern District of Arkansas has teamed with the ATF, DEA, and FBI in four major operations that resulted in the arrest of 127 individuals, including 70 in 2015’s “Operation Blynd Justus.” Also during Mr. Thyer’s tenure, his office successfully prosecuted multiple cases involving Mexican drug cartel members.
The U.S. Attorney’s Office for the Eastern District of Arkansas was on the forefront of recognizing the opioid epidemic in Arkansas. In May 2015, Little Rock was the regional hub of a national DEA effort dubbed “Operation Pilluted.” Mr. Thyer’s office returned six indictments in which 113 defendants were charged, including five doctors, four nurses, and five pharmacists. These multiple cartel and large-defendant drug cases are why the U.S. Attorney’s Office for the Eastern District of Arkansas has routinely ranked among the top-producing OCDETF districts in the nation for its size.
The focus on partnership between federal and local law enforcement agencies has been a hallmark of Mr. Thyer’s tenure. Four years ago, the U.S. Attorney’s Office for the Eastern District of Arkansas reinstituted and coordinated free training for local law enforcement agencies. Under the leadership of Mr. Thyer, the office revamped the Law Enforcement Coordinating Committee’s quarterly newsletter, focusing on activities and achievements of local law enforcement agencies in the district.
In September 2016, Mr. Thyer hosted the national Violence Reduction Network (VRN) 2016 Fall Summit in Little Rock and welcomed Attorney General Loretta Lynch, who delivered opening remarks. The VRN, which focuses in Arkansas on the cities of Little Rock and West Memphis, is a comprehensive approach to reducing violent crime in communities around the country through a hands on approach between local and federal agencies, furthering Mr. Thyer’s efforts in the use of collaborative law enforcement approaches to tackle serious crime.
Mr. Thyer’s local outreach has not been limited to law enforcement agencies. The U.S. Attorney’s Office for the Eastern District of Arkansas recently implemented the district’s first-of-its-kind reading partnership with the Little Rock School District. Assistant United States Attorneys (AUSAs) also regularly meet with prisoners in federal correctional institutions as part of interdisciplinary prisoner reentry programs.
Combatting public corruption has also been a focus of the U.S. Attorney’s Office under Mr. Thyer’s leadership. Always emphasizing the need to earn and keep the public trust, Mr. Thyer has overseen the prosecution of multiple corrupt political figures and law enforcement officers, including:• Martha Shoffner, former Arkansas State Treasurer, who was sentenced to 30 months in prison for extortion and bribery after directing $2 billion in taxpayer money in bond business to a broker for a series of $6,000 payments.
• Former state judge Michael Maggio, who was sentenced to 10 years in prison for accepting bribes.
• Former state representative Hudson Hallum, who, along with West Memphis City Councilman Phillip Wayne Carter and former West Memphis Police Officer Sam Malone, pleaded guilty to conspiracy to commit election fraud in what was the first case in the United States in which state election law violations have been prosecuted under the Travel Act.
• Lu Hardin, former University of Central Arkansas president, who pleaded guilty to wire fraud and money laundering.
• Former Arkansas State Police Lieutenant Sedrick Reed, who was sentenced to 135 months in prison for his role in a cocaine conspiracy.
• Former Little Rock police officer Mark Jones, who was sentenced to 104 months in prison for his role in a marijuana conspiracy.
• Former Searcy Police Chief Jeremy Clark, who resigned and pleaded guilty to possession of hydrocodone.
• Former Bald Knob Police Chief Erek Balentine, who pleaded guilty to possession of a stolen firearm.
• Former Saline County Sheriff Bruce Pennington, who pleaded guilty to wire fraud.Child exploitation is another area that has received top priority. Under Mr. Thyer’s guidance, the U.S. Attorney’s Office for the Eastern District of Arkansas successfully prosecuted the district’s first human sex trafficking case, which resulted in defendant Jermaine Roy receiving a 15-year prison sentence in 2013. Other sex-trafficking convictions soon followed, including Amber Johnson (144 months), Andre Kimball (120 months), and Dana Deffenbaugh (pending sentencing).
Mr. Thyer’s office has been responsible for significant civil award settlements. In 2013, the U.S. Attorney’s Office handled numerous cases involving complex issues of medical treatment and alleged wrongful death, resulting in saving the government approximately $27 million in damages in 2013 alone. In the past five years, the U.S. Attorney’s Office for the Eastern District of Arkansas has recovered approximately $193 million in false claims settlements and civil enforcements, as well as more than $11.5 million in criminal and civil collections.
With a focus on prosecuting cases involving large-scale drug dealing, violent crime, child exploitation, public corruption, healthcare and financial fraud, and civil rights, some of the other notable prosecutions during Mr. Thyer’s time as United States Attorney include:
• To date, 14 people have been indicted in a wide-ranging scheme to steal U.S. Department of Agriculture funds intended to feed hungry children. Eleven people have pleaded guilty and admitted to stealing more than $10 million from at-risk children’s feeding programs, and three are scheduled for trial in a case that is believed to involve more than $20 million in fraud.
• Wallando Onezine received a 10-year sentence for the distribution of heroin which led to the deaths of two Cabot residents.
• Jason Barnwell (20 years), Gary Dodson (15 years), Jake Murphy and Dustin Hammond (54 months) all received significant sentences for civil rights crimes after the firebombing of an interracial couple’s home.
• Lacey Moore received a 16-year prison sentence and was ordered to pay $12.5 million restitution after displacing 79 people by setting seven separate fires at Forrest Place Apartments in Little Rock.
• Dr. Robert Barrow was sentenced to a two-year term of imprisonment following his guilty plea to healthcare fraud after admitting to $2.2 million in fraudulent billing.
• Stephen K. Parks was sentenced to over two years in prison for wire fraud and forfeited money and property worth more than $9 million.
• Kevin Lewis was sentenced to 121 months in prison for bank fraud and ordered to pay $39.4 million in restitution.
• Matthew Hiner received a 25-year prison sentence for sexual exploitation of a minor by a parent.
• Joshua Thornton received a 30-year prison sentence for production of child pornography.Prior to his federal appointment in 2010, Mr. Thyer had been a partner at Stanley & Thyer, P.A., since 2007, and a partner at Halsey & Thyer, PLC from 2005 to 2007. Thyer was with the Mooney Law Firm, P.A., from 1997 to 2005, and a solo practitioner from 1995 to 1997. Thyer also served in the Arkansas House of Representatives as a State Representative for the 74th District from 2003 to 2009. Mr. Thyer graduated from Arkansas State University in 1991 and from the University of Arkansas School of Law in 1995.
Harris, whose distinguished career with the U.S. Attorney’s Office for the Eastern District of Arkansas has spanned the past 31 years, served as the U.S. Attorney’s Office First Assistant for the past four years and Criminal Chief for six years prior to that. He attended the University of Arkansas at Fayetteville and graduated from the University of Arkansas at Little Rock and the William H. Bowen School of Law. Harris has also served as an adjunct law professor at the Bowen School of Law for ten years.
“I am thankful for the opportunity to serve the people of Arkansas and continue to carry out the mission of this office,” Harris said. “I also want to thank Chris Thyer for his commitment to this office for the past six years. I look forward to working with Attorney General Jeff Sessions and the new administration as the Department of Justice renews and strengthens its commitment to combat violent crime.”
The United States Attorney’s Office in the Eastern District of Arkansas includes five divisions and 41 counties within Arkansas. Its primary office is in Little Rock.
U.S. Attorney Barbara L. McQuade ResignsRead the Press Release
United States Attorney Barbara L. McQuade has resigned after being asked to tender her resignation by President Donald Trump.
McQuade, the first woman to serve as U.S. Attorney for the Eastern District of Michigan, was appointed by President Barack Obama, and sworn in on January 4, 2010.
During her tenure, McQuade has overseen a number of significant cases, including the conviction of former Detroit Mayor Kwame Kilpatrick and more than 30 others on public corruption charges; the conviction and life sentence of an Al-Qaeda operative for attempting to blow up an airliner over Detroit on Christmas Day in 2009 with a bomb concealed in his underwear; the conviction and 45-year sentence Dr. Farid Fata for lying to patients about having cancer so that he could bill Medicare for expensive chemotherapy treatments; the conviction and $4.3 billion fine against Volkswagen AG for cheating on emissions tests; the conviction and $1 billion fine against Takata Corp. for fraudulently concealing defective airbags; and settlements with Pittsfield Township to permit the building of an Islamic School and with the City of Sterling Heights to permit the building of a mosque under religious land use laws.
McQuade also joined with other law enforcement leaders to launch Detroit One, a violence reduction strategy and community partnership. Since Detroit One began in 2013, homicide rates, non-fatal shootings and carjackings in Detroit have decreased. A key component of the initiative is the Ceasefire gang intervention program. A similar enforcement initiative, Flint First, was recently launched in Flint.
Upon taking office, McQuade restructured the office for the first time in 35 years to focus attorney resources on district priorities. At that time, McQuade created new units dedicated to violent crime, public corruption, health care fraud and civil rights. Each unit has seen robust enforcement activity. McQuade’s vision has been to use the resources of the U.S. Attorney’s Office to improve the quality of life for the people of the Eastern District of Michigan, focusing on enforcement, prevention and community trust.
At the national level, McQuade served as Vice Chair of the Attorney General’s Advisory Committee under Attorney General Loretta Lynch, and served as co-chair of the Terrorism and National Security Subcommittee since 2010.
“I have loved serving in this job as much as anyone has ever loved any job,” McQuade said. “It has been an incredible privilege to work alongside public servants who devote their tremendous talents to improving the quality of life in our community. I am proud to have served as U.S. Attorney in the Obama Administration.”
Before becoming U.S. Attorney, McQuade was an Assistant U.S. Attorney in Detroit for 12 years, serving as Deputy Chief of the National Security Unit. She prosecuted cases involving terrorism financing, foreign agents, export violations and threats, and served as the district’s Crisis Management Coordinator.
McQuade practiced law at the firm of Butzel Long in Detroit from 1993 to 1998, and served as a law clerk to Hon. Bernard A. Friedman on the U.S. District Court for the Eastern District of Michigan from 1991 to 1993. From 2003 to 2009, McQuade served as an adjunct professor at the University of Detroit Mercy School of Law, teaching criminal law in the evenings.
Born in Detroit, McQuade is a 1987 graduate of the University of Michigan and a 1991 graduate of the University of Michigan Law School. She and her husband have four children.
The Eastern District of Michigan covers 34 counties and six million residents. The United States Attorney’s Office, with staffed offices in Detroit, Flint and Bay City, has 115 attorneys and another 100 support professionals, and conducts all criminal and civil litigation in the district involving the United States government.