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13 March 2017
Israeli Executive Pleads Guilty to Defrauding the Foreign Military Financing ProgramRead the Press Release
A former executive of an Israel-based defense contractor pleaded guilty for his role in multiple schemes to defraud a multi-billion dollar United States foreign aid program, the Department of Justice announced today.
Yuval Marshak pleaded guilty to one count of mail fraud, two counts of wire fraud and one count of major fraud against the United States in U.S. District Court for the District of Connecticut today. He was previously charged in an indictment returned by a federal grand jury in the District of Connecticut on Jan. 21, 2016, and then extradited from Bulgaria in October.
According to court documents, Marshak carried out three separate schemes between 2009 and 2013 to defraud the Foreign Military Financing program (FMF). Marshak and others falsified bid documents to make it appear that certain FMF contracts had been competitively bid when they had not. Marshak further caused false certifications to be made to the U.S. Department of Defense (DoD) stating that no commissions were being paid and no non-U.S. content was used in these contracts, when, in fact, Marshak had arranged to receive commissions and to have services performed outside the United States, all in violation of the DoD’s rules and regulations. Marshak arranged for these undisclosed commission payments to be made to a Connecticut-based company that was owned by a close relative to disguise the true nature and destination of these payments.
“Today’s guilty plea marks the successful culmination of a complex investigation that required us to work closely with the Israeli government, the DoD and the Office of International Affairs to gather foreign-located evidence and to secure Marshak’s extradition,” said Acting Assistant Attorney General Brent Snyder of the Department of Justice’s Antitrust Division. “This result reflects the division’s deep commitment to identifying and prosecuting schemes to defraud American taxpayers.”
“This conviction is the result of the Defense Criminal Investigative Service's (DCIS) ongoing effort to identify and investigate fraudulent activity targeting the U.S. Department of Defense (DoD) and its programs that support America's national security and foreign policy objectives,” said Acting Special Agent in Charge Leigh-Alistair Barzey of the DCIS Northeast Field Office. “DCIS will continue to aggressively investigate allegations of fraud and abuse threatening the DoD and the Foreign Military Sales Program.”
The United States spends billions of dollars each year through the FMF program to provide foreign governments, including Israel, with money which must be used to purchase American-made military goods and services. The rules and regulations of the FMF program require the disclosure of and approval for any FMF-funded commissions and require that all goods and services be of United States origin to qualify for FMF funding. These same rules also strongly encourage the use of competitive bidding in the award of all FMF contracts. American vendors who receive FMF funded contracts are required to certify their compliance with these regulations to the DoD.
The Antitrust Division’s New York Office and DCIS prosecuted the case, with assistance from the U.S. Attorney’s Office for the District of Connecticut, Israel’s Ministry of Defense and the Justice Department’s Office of International Affairs. Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to government contracts should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Homer man pleads guilty to methamphetamine distribution chargeRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a man from Homer pleaded guilty last week to possessing with intent to distribute methamphetamine after a bag containing the drug was found in a relative’s dryer.
Vincent McDaniel, 44, of Homer, La., pleaded guilty Thursday before U.S. District Judge S. Maurice Hicks Jr. to one count of possession with intent to distribute methamphetamine. According to the guilty plea, a relative of the defendant contacted law enforcement on November 12, 2015 to report that she had found something suspicious in a bag, which was left in a dryer at her home in Homer. After examining and testing the contents of the bag, law enforcement determined it was 526.7 grams of methamphetamine. McDaniel had asked for access to the home while the relative was away, and after his arrest, had asked other relatives to retrieve the bag for him before law enforcement could obtain it.
McDaniel faces 10 years to life in prison, at least four years of supervised release and a $10 million fine. The court set a sentencing date of June 28, 2017.
The DEA and the Homer Police Department conducted the investigation. Assistant U.S. Attorney James G. Cowles is prosecuting the case.
Grocery Store Owner Sentenced to Prison for Defrauding Federal Food Stamp ProgramRead the Press Release
PHILADELPHIA - Young Hwa Jung, 57, of North Wales, PA, was sentenced today to 15 months in prison for committing fraud against a government assistance program, announced Acting United States Attorney Louis D. Lappen. The defendant had been charged by criminal information with one count of conspiracy and one count of trafficking in Supplemental Nutrition Assistance Program (“SNAP”), benefits, formerly known as food stamps. The SNAP is administered by the United States Department of Agriculture (“USDA”)’s Food and Nutrition Service, with the goal of alleviating hunger in the United States.
The defendant owned and operated Jung & Hong Inc, a retail grocery store located at 2501 South 70th Street in Philadelphia. As he admitted at his guilty plea hearing on December 13, 2016, the defendant trafficked SNAP benefits by purchasing those benefits from customers of Jung & Hong, Inc. in exchange for cash, which is illegal. As the defendant admitted further, between January 2011 and May 2016, as a result of his trafficking activities, the defendant caused a loss of approximately $607,017.17 to USDA’s Food and Nutrition Service.
In addition to the prison term, the Honorable Gene E.K. Pratter, United States District Judge, sentenced the defendant to three years of supervised release to follow incarceration; full restitution of $607,017.17; and a special assessment of $200. The Court also ordered forfeiture of a 2013 Toyota Tundra that the defendant had purchased with the proceeds of the fraud.
The case was investigated by the United States Department of Agriculture Office of Inspector General and Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Mary E. Crawley.
Greensburg Man Sentenced to Probation for Using Fake Secret Service CredentialsRead the Press Release
PITTSBURGH – A Westmoreland County resident has been sentenced in federal court to 2 years of probation and $500 fine on his conviction of Fraudulent Official Seals, Acting United States Attorney Soo C. Song announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Christopher Diiorio, 53, of Greensburg, PA.
According to the information presented to the court, Christopher Diiorio conspired with others to produce false United States Secret Service identification cards. He also misrepresented that he was an agent of the United States Secret Service, possessed, and displayed an imitation United States Secret Service badge to a hotel manager in order to obtain the government rate for a hotel stay. Finally, he misrepresented that he was an agent of the United States Secret Service and displayed the false United States Secret Service identification card during an encounter with a local police officer.
Assistant United States Attorney Paul E. Hull prosecuted this case on behalf of the government.
Acting United States Attorney commended the United States Secret Service for the successful investigation of Christopher Diiorio.
Former Wells Fargo Branch Manager Convicted of Laundering Proceeds of Trademark ScamRead the Press Release
WASHINGTON – A former manager of a Wells Fargo branch in Glendale, California, was convicted on Friday of money laundering and false bank entry charges in connection with laundering the proceeds of a trademark scam.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Sandra R. Brown of the Central District of California, Acting Inspector in Charge William H. Hedrick from the U.S. Postal Inspection Service’s (USPIS) Los Angeles Division, Inspector in Charge Regina L. Faulkerson of USPIS Criminal Investigation and Acting Special Agent in Charge Anthony J. Orlando of the Internal Revenue Service Criminal Investigation (IRS-CI) Los Angeles Field Office made the announcement.
After a four-day jury trial, Albert Yagubyan, 37, of Burbank, California, was convicted of one count of conspiracy to launder monetary instruments, four counts of concealment money laundering and one count of false bank entries. Sentencing has been scheduled for May 22, 2017, before U.S. District Judge Stephen V. Wilson of the Central District of California, who presided over the trial.
According to the evidence presented at trial, from June 27, 2014 to Sept. 18, 2015, Yagubyan laundered over $1 million of proceeds from a mass-mailing scam run by co-conspirator Artashes Darbinyan, 37, of Glendale, California, who used companies that they called “Trademark Compliance Center” (TCC) and “Trademark Compliance Office” (TCO) in order to make fraudulent offers to trademark applicants for registration and monitoring services.
Yagubyan laundered the funds by instructing subordinates at the bank to open bogus bank accounts, into which proceeds of the TCC and TCO scam were deposited, and process fraudulent withdrawals, wire transfers and cashier’s checks for co-conspirators Darbinyan and Orbel Hakobyan, 42, also of Glendale, the evidence showed. The cashier’s checks and wire transfers were made out to gold dealers. The bank accounts were opened using the identities of individuals from Eastern Europe who were not in the United States at the time the accounts were opened. The evidence at trial further showed that Darbinyan paid Yagubyan a percentage of the laundered proceeds. Yagubyan, in turn, made payments and promises of promotion to subordinates to induce them to conduct the fraudulent transactions. When Wells Fargo’s loss prevention office flagged the bogus accounts for closure, Yagubyan intervened to try and keep them open, the evidence showed.
Darbinyan and Hakobyan pleaded guilty in December 2016 to mail fraud and money laundering charges and are scheduled for sentencing on June 19, 2017, before Judge Wilson. The investigation has resulted in a total of five convictions.
USPIS and IRS-CI investigated the case. Trial Attorneys William E. Johnston and Alison L. Anderson and Assistant Chief Brian K. Kidd of the Criminal Division’s Fraud Section are prosecuting the case.
Former Wells Fargo Branch Manager Convicted of Laundering Proceeds of Trademark ScamRead the Press Release
A former manager of a Wells Fargo branch in Glendale, California, was convicted on Friday of money laundering and false bank entry charges in connection with laundering the proceeds of a trademark scam.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Sandra R. Brown of the Central District of California, Acting Inspector in Charge William H. Hedrick from the U.S. Postal Inspection Service's (USPIS) Los Angeles Division, Inspector in Charge Regina L. Faulkerson of USPIS Criminal Investigation and Acting Special Agent in Charge Anthony J. Orlando of the Internal Revenue Service Criminal Investigation (IRS-CI) Los Angeles Field Office made the announcement.
After a four-day jury trial, Albert Yagubyan, 37, of Burbank, California, was convicted of one count of conspiracy to launder monetary instruments, four counts of concealment money laundering and one count of false bank entries. Sentencing has been scheduled for May 22, 2017, before U.S. District Judge Stephen V. Wilson of the Central District of California, who presided over the trial.
According to the evidence presented at trial, from June 27, 2014 to Sept. 18, 2015, Yagubyan laundered over $1 million of proceeds from a mass-mailing scam run by co-conspirator Artashes Darbinyan, 37, of Glendale, California, who used companies that they called “Trademark Compliance Center” (TCC) and “Trademark Compliance Office” (TCO) in order to make fraudulent offers to trademark applicants for registration and monitoring services.
Yagubyan laundered the funds by instructing subordinates at the bank to open bogus bank accounts, into which proceeds of the TCC and TCO scam were deposited, and process fraudulent withdrawals, wire transfers and cashier’s checks for co-conspirators Darbinyan and Orbel Hakobyan, 42, also of Glendale, the evidence showed. The cashier’s checks and wire transfers were made out to gold dealers. The bank accounts were opened using the identities of individuals from Eastern Europe who were not in the United States at the time the accounts were opened. The evidence at trial further showed that Darbinyan paid Yagubyan a percentage of the laundered proceeds. Yagubyan, in turn, made payments and promises of promotion to subordinates to induce them to conduct the fraudulent transactions. When Wells Fargo’s loss prevention office flagged the bogus accounts for closure, Yagubyan intervened to try and keep them open, the evidence showed.
Darbinyan and Hakobyan pleaded guilty in December 2016 to mail fraud and money laundering charges and are scheduled for sentencing on June 19, 2017, before Judge Wilson. The investigation has resulted in a total of five convictions.
USPIS and IRS-CI investigated the case. Trial Attorneys William E. Johnston and Alison L. Anderson and Assistant Chief Brian K. Kidd of the Criminal Division’s Fraud Section are prosecuting the case.
Former Vice Principle of Lake Roosevelt Elementary School Sentenced to Seven Years in Federal Prison for Receipt of Child PornographyRead the Press Release
Spokane– Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Nathan Piturachsatit, age 38, of Grand Coulee, Washington, was sentenced today, after having previously pleaded guilty on November 29, 2016 to Receipt of Child Pornography. United States District Judge Salvador Mendoza Jr. sentenced Piturachsatit to a seven- year term of imprisonment, to be followed by a ten-year term of court supervision after he is released from Federal prison. In addition, Piturachsatit agreed to forfeit to the United States the iPhone he used to request and receive child pornography images and videos. Upon release from prison, Piturachsatit will be required to register as a Sex Offender.
According to information disclosed during the court proceedings, in January of 2016, an officer of the Janesville Police Department in Janesville, Wisconsin responded to a report of a mother of a fourteen-year-old girl who had received a suspicious package. The package was determined to have been sent by Nathan Piturachsatit and was a shirt from “Pink”, a sister store to Victoria’s Secret. Further investigation revealed from November 2015, until early January 2016, Piturachsatit had been communicating with the fourteen-year-old girl over the Internet using “Instagram”. Piturachsatit had sent the minor child explicit naked images of himself and had asked for sexually explicit images and videos of the minor, who was a freshman in high school at the time of the crime. Piturachsatit’ s communication with the minor was graphic and sexually explicit. Piturachsatit not only requested child pornography from the minor, but also said he wanted to have sexual intercourse with the minor. With the assistance of agents from Homeland Security, a federal search warrant was obtained and executed on February 3, 2016 at Piturachsatit’ s place of employment, the Lake Roosevelt Elementary School where he was the Vice Principle, his residence, and vehicle in Grand Coulee, WA. Law enforcement officers discovered Piturachsatit had installed the application “Instagram” on his iPhone. During the execution of the search warrant, Piturachsatit confessed to sending the package to the minor and to also sending the minor clothed and unclothed images, as well as videos of him naked or masturbating. In addition, Piturachsatit confessed to requesting and receiving sexually explicit images and videos of the minor he had been communicating with via “Instagram”.
Joseph H. Harrington stated, “Prosecuting offenders who entice minors to produce child pornography and receive child pornography is a priority of the United States Attorney’s Office for the Eastern District of Washington. This Office is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May, 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
• Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
• Participation of PSC partners in coordinated national initiatives;
• Increased federal enforcement in child pornography and enticement cases;
• Training of federal, state, and local law enforcement agents; and
• Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by Homeland Security Investigations Special Agent Mark Mischke and the Janesville Police Department in Janesville, Wisconsin. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
Former Bank Officers and Walton County Man Convicted in Bank Fraud SchemeRead the Press Release
PENSACOLA, FLORIDA – On Friday, March 10, after a five-day trial, Anthony J. Atkins, 51, of Eufaula, Alabama, was convicted of conspiracy to commit bank fraud, four counts of false statements to a federally insured financial institution, bank fraud, and mail fraud affecting a financial institution.
Today, co-conspirator Bruce A. Houle, 57, of Inlet Beach, Florida, pled guilty to conspiracy to commit bank fraud and one count of false statement to a federally insured financial institution.
On February 27, 2017, co-conspirator Samuel D. Cobb, 37, of Destin, Florida, pled guilty to conspiracy, four counts of false statement to a financial institution, and bank fraud.
The jury’s verdict and the guilty pleas were announced today by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In 2007, an individual went to Anthony Atkins, the president of GulfSouth Private Bank, and notified Atkins that the individual’s company, which had been loaned $3.4 million, was no longer going to be able to make payments on the mortgage loans issued by GulfSouth Private Bank that had been secured by three condominiums. an effort to conceal that the loans were going into default, and instead of recognizing that the $3.4 million in loans were losses to the bank, Atkins devised a scheme to conceal the bad debt.
As a part of the scheme, Atkins and Cobb solicited Houle, Mark W. Shoemaker, Michael Bradley Bowen, and William Blake Cody to take out new loans with the bank to purchase the three condominiums. To persuade Houle, Shoemaker, Bowen, and Cody to engage in the scheme, Atkins and Cobb told these individuals that the loans would be non-recourse, meaning that, if the men defaulted, GulfSouth would have no recourse against them.
Thereafter, Atkins and Cobb caused new mortgage loans and additional lines of credit to be issued for approximately $3.8 million to the men they had solicited. According to the terms of the fraudulent loans issued during the scheme, the men Atkins and Cobb solicited were not required to make any payments on the loans until the loans came due months down the road. These new loans were then used to pay off the old loans that were going into default. Issuing these new loans and new lines of credit created the appearance that the debt was “performing”, which allowed Atkins to avoid having to report the loans associated with the condominiums as bad debt, as required. Further, as a part of the scheme, Atkins and Cobb caused fraudulent security agreements to be prepared that falsely represented that Houle, Shoemaker, Bowen, and Cody were obligated to repay their respective new mortgage loans and lines of credit.
In September 2009, GulfSouth received $7,500,000 in Troubled Asset Relief Program (“TARP”) funds from the United States Treasury. Thereafter, Atkins and Cobb allowed the condominiums that were collateral for the mortgage loans to be sold in short sales, resulting in a loss to GulfSouth. Further, Atkins allowed the deficiencies and the lines of credit to be charged off of GulfSouth’s books and records.
The defendants face a maximum of 30 years in prison for each count. The sentencing hearings are scheduled at the United States Courthouse in Pensacola, as follows:
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Atkins: May 31, 2017, at 10:30 a.m.
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Houle: May 31 at 2:00 p.m.
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Cobb: May 16 at 10:30 a.m.
This case resulted from a joint investigation by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG). Assistant United States Attorney Tiffany H. Eggers prosecuted the case.
“This bank fraud case is a reminder that my office will vigorously prosecute those who do not conduct ethical transactions, especially financial representatives who abuse their positions of trust,” said U.S. Attorney Canova. “I commend the hard work of the investigators and prosecutors who enforce our federal laws and ensure that justice is served.”
“In 2008, at the height of the financial crisis, former GulfSouth Private Bank president Anthony Atkins had a decision to make: tell the truth about the bank’s troubled finances or take intricate steps to criminally conceal millions of dollars in bad loans,” said Christy Goldsmith Romero, Special Inspector General for TARP. “Unlike most bank executives, Atkins chose the latter and, along with former vice president Samuel Cobb, hatched a scheme to hide the loans and make the bank appear healthier than it actually was. GulfSouth then received $7.5 million from TARP, a program designed for healthy banks. But GulfSouth was not a healthy bank and later failed—causing taxpayers to lose their entire investment. SIGTARP will continue to bring justice to bankers who commit bailout-related fraud.”
“The Federal Deposit Insurance Corporation Office of Inspector General is committed to working with U.S. Attorneys and law enforcement partners throughout the country in investigating and prosecuting individuals whose fraudulent activities threaten the safety and soundness of our nation’s banks,” said Jason Moran, Special Agent in Charge, FDIC-OIG. “It is particularly troubling when those individuals are bank insiders like Messrs. Atkins and Houle, who violate the public trust, conspire with others, and engage in activities that ultimately cause losses to their banks. Today’s verdict and the associated guilty pleas should deter others from pursuing similar criminal activity.”
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]
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Floridian Pleads Guilty to Bank FraudRead the Press Release
ERIE, Pa. - A resident of Florida, pleaded guilty in federal court to a charge of bank fraud, Acting United States Attorney Soo C. Song announced today.
Andres Prieto, 34, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from in and around January 2009, to in and around January 2013, Prieto and his co-defendants engaged in a “loan program” in which a hierarchy of “brokers”, “managers”, “processors” and “straw borrowers” falsified bank loan documents and supporting documentation in order to obtain various auto and consumer loans and lines of credit from 21 banks and credit unions.
Judge Cercone scheduled sentencing for July 31, 2017 at 1:30 p.m. The law provides for a total sentence of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Prieto on bond.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation that led to the prosecution of Prieto.
First Assistant United States Attorney Joycelyn Hewlett Named Acting United States AttorneyRead the Press Release
Pursuant to the Vacancies Reform Act, with the resignation of former United States Attorney Ronald W. Sharpe, First Assistant United States Attorney Joycelyn Hewlett has been named Acting United States Attorney for the District of the Virgin Islands. In her capacity as Acting United States Attorney, Hewlett serves as the chief Federal law enforcement officer for the District of the Virgin Islands.
Hewlett has served in the United States Attorney’s Office since 1998. Prior to serving as First Assistant United States Attorney, she served as Chief of the Civil Division from 2006. In addition to her duties in the district, Hewlett serves on the Executive Office for U.S. Attorney’s Evaluation and Review Staff, which provides onsite management assistance to U.S. Attorney’s offices throughout the country to assure compliance and internal controls are met. She also served for a term of four years on the Civil Chief’s Working Group, a subcommittee of the Attorney General’s Advisory Committee.
Prior to serving as an AUSA, Hewlett served as legal counsel with the Virgin Islands Legislature, Assistant Attorney General with the Virgin Islands Department of Justice, Law Clerk to Territorial Court Presiding Judge Verne A. Hodge, and as an associate at Bryan Cave, an international law firm in Washington, D.C. She also served as president of the Virgin Islands Bar in 2006.
Hewlett is a 1986 graduate of the College of the Virgin Islands and a 1992 graduate of Howard University Law School. Prior to law school, Hewlett worked at the Virgin Islands Daily News as a news reporter and editor.
First Assistant U.S. Attorney Stephen G. Dambruch Named Acting United States AttorneyRead the Press Release
PROVIDENCE - Pursuant to the Vacancies Reform Act, with the departure of former United States Attorney Peter F. Neronha, First Assistant United States Attorney Stephen G. Dambruch has been named Acting United States Attorney for the District of Rhode Island. In his capacity as Acting United States Attorney, Mr. Dambruch serves as the chief Federal law enforcement officer for the District of Rhode Island.
Mr. Dambruch, named First Assistant United States Attorney in January 2014, was appointed as an Assistant United States Attorney in January 2004 and Criminal Division Chief in February 2007. As an Assistant United States Attorney, Mr. Dambruch worked on, among other things, a number of significant narcotics and public corruption matters.
Prior to his tenure with the United States Attorney’s Office, Mr. Dambruch served as a state prosecutor with the Rhode Island Department of Attorney General for over sixteen years, including appointments as Chief of the Narcotics Prosecution Unit, Chief Prosecutor for Kent, Newport and Washington Counties, and Deputy Chief of the Criminal Division.
Mr. Dambruch is a 1982 graduate of Providence College and received his law degree from Boston College Law School in 1985.
Mr. Dambruch announced today that the leadership team in the United States Attorney’s Office will remain the same.
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Federal Jury Convicts Murfreesboro Man of Smuggling Silencers into the United StatesRead the Press Release
Paul Gratton, 50, of Murfreesboro, Tenn., was found guilty today by a federal jury of delivering of a firearm to a common carrier without written notice; illegal shipment of a firearm with intent to commit a felony; illegal importation of a firearm; illegal receipt of a firearm that had been imported; and unlawful possession of unregistered silencers, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee. The jury acquitted Gratton of tampering with evidence.
The jury returned its verdict following a two-day trial before Chief U.S. District Judge Kevin H. Sharp.
The evidence at trial showed that, in the spring of 2015, Gratton, who owns a helicopter servicing business in Murfreesboro, traveled to England, where he purchased six firearm silencers, none of which had serial numbers, from a firearms dealer in Sheffield. Gratton put some of the silencer parts into a DHL package, which he deliberately mislabeled in order to ensure that those silencers got through U.S. Customs without being discovered by the authorities. Gratton put other silencer parts into his checked baggage, and flew back to Murfreesboro. Federal law enforcement officers later obtained a search warrant for Gratton’s residence, where they recovered the silencers and obtained a confession from Gratton.
Gratton faces a maximum penalty of 10 years in prison and a maximum fine of $250,000. A sentencing date has not yet been set.
The case was investigated by the Bureau of Alcohol, Tobacco Firearms & Explosives; the Rutherford County Sheriff’s Office; and the Murfreesboro Police Department. The case was prosecuted by Assistant U.S. Attorneys Ben Schrader and Ahmed Safeeullah.
Erie Felon Unlawfully Possessed FirearmRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal firearms laws, Acting United States Attorney Soo C. Song announced today.
Kevin Dimitri Tate, 24, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Tate unlawfully possessed a .380 ACP firearm while being prohibited from firearm possession because he is a convicted felon.
Judge Cercone scheduled sentencing for July 31, 2017 at 3:00 p.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is 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 Western Pennsylvania Fugitive Task Force, Erie Bureau of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Tate.
Drug Conspirator Sentenced to Federal Prison TimeRead the Press Release
Roanoke, VIRGINIA – A North Carolina woman, who conspired with others to distribute methamphetamine in and around the Hillsville and Galax regions of Virginia, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke, Acting United States Attorney Rick A. Mountcastle announced.
Bianca Victoria Aroche, 24, of Sparta, N.C., previously pled guilty to one count of conspiracy to possess with the intent to distribute and to distribute 50 grams or more of methamphetamine. Today in District Court, Aroche was sentenced to 65 months in federal prison.
According to evidence presented to the court by Assistant United States Attorney Ashley B. Neese, Aroche, and others, distributed methamphetamine in and around Hillsville and Galax beginning around the spring of 2014 and continuing until at least August 2014.
The investigation of the case was conducted by the Drug Enforcement Administration, the Virginia State Police, the Galax Police Department, the Carroll County Sheriff’s Office and the Grayson County Sheriff’s Office. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
Criminal Organization Indicted and Arrested for Narcotics, Aggravated Identity Theft and Money Laundering ChargesRead the Press Release
SAN JUAN, Puerto Rico – On March 6, 2017, a federal grand jury in the District of Puerto Rico returned a superseding indictment against twelve defendants charged with various federal offenses, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration is in charge of the investigation with the collaboration of the Federal Bureau of Investigation and the Puerto Rico Police Department.
This criminal organization led by Alex Baez-Espinal participated in different illegal schemes which are detailed in the superseding indictment. Defendants Baez-Espinal, Norman Guzmán-Ramos, Kelvin Hernández and Bryan Santiago are charged in a conspiracy to possess with intent to distribute cocaine. Defendant Kelvin Hernández is facing one count of possession with intent to distribute cocaine. Baez-Espinal, Hernández, and Guzmán-Ramos are facing charges for use of a communication facility in the commission of felonies under the Controlled Substances Act. That is, using a cellular telephone, in facilitating the commission of a felony under Title 21, United States Code, Sections 841 and 846, offenses set forth in the superseding indictment.
Defendants Baez-Espinal and Hernández were the leaders of the Drug Trafficking Organization and the Cellphone and Rental Car Fraud Schemes, described below. Baez-Espinal and Hernández obtained personal individual information (including but not limited to Social Security Numbers and Dates of Birth) of unsuspecting victims from defendants Melton Pinilla and Luis Roberto Dávila. During the conspiracy, after receiving the victim’s personal information, Baez-Espinal and Hernández checked each victim’s personal credit rating. If the victim possessed a good credit rating, Baez-Espinal and Hernández then contacted credit card companies utilizing the fraudulently obtained personal information and applied for credit cards in the victim’s name. These credit cards were then sent via the mail to Puerto Rico by the credit card companies.
According to the indictment, Baez-Espinal and Hernández would provide the fraudulently obtained personal information to Luis Roberto Rivera-Ortiz, who created fraudulent Puerto Rican driver’s licenses in the victim’s names with the photos of the “runners” or “jockeys” and other members of the conspiracy. Ultimo Carrera-Rosario also made fraudulent documents such as fraudulent social security cards and fake utility bills in the victims’ names.
Defendants Bryan Santiago-Rivera, José Vásquez-Rodríguez, Leidy Baez-Espinal and Veronica Sierra-Pabón, acted as runners or jockeys for the organization. The different fraud schemes charged are as follows:
Mail fraud conspiracy:
According to the indictment, defendants Baez-Espinal, Hernández, Santiago-Rivera, Michael Alicea, Luis Roberto Rivera-Ortiz, Ultimo Carrera, Luis Roberto Dávila, José Vázquez, Kathya Andino-Aragonés, Leidy Bez-Espinal, and Verónica Sierra-Pabón utilized the U.S. mails to obtain fraudulent credit cards in victims’ names and then use those fraudulent credit cards, along with other fraudulent documents, to purchase goods and services.
Cellphone fraud conspiracy:
During the conspiracy, Baez-Espinal, Hernández and Alicea (after obtaining fraudulent credit cards and driver’s licenses and/or social security and utility bills), paid runners or jockeys to make purchases of cellphones at retail outlets in Puerto Rico. The runners or jockeys, utilizing the fraudulent identifications, would then purchase as many cellphones as allowed by the retail outlet using the victim’s information. The runners or jockeys would make a cash down payment on the cellphone(s), and finance the remaining portion of the cost of the cellphone on the victim’s credit.
The leaders of the conspiracy, Baez-Espinal and Hernández then sold the cellphones via the internet through AMBE Group Inc., to individuals in the United States, Italy, Peru, Canada, and Mexico. From on or about 2012 until 2016, the conspiracy made approximately $3,000,000.00 from the sale of the fraudulently obtained cellphones and other electronic devices.
Rental car fraud scheme:
Baez-Espinal and Hernández also used the fraudulent credit cards and driver’s license and/or social security and utility bills to rent vehicles at car rental outlets. They paid runners or jockeys to rent automobiles from car rental outlets in Puerto Rico using the victim’s identification. The runners or jockeys made these rentals knowing that the runner and/or members of the conspiracy were not going to return the rental vehicle to the car rental outlet. Baez-Espinal and Hernández and other members of the conspiracy would then utilize the fraudulently obtained vehicle, before selling it.
In Counts 6 through 9, Alex Baez-Espinal, Hernández and Leidy Baez-Espinal are charged with wire fraud, for transmitting illegal moneys in interstate and foreign commerce by means of wire communications. In Count 10 members of the conspiracy are charged with conspiracy to commit access device fraud. The defendants listed in Count 10, used other persons’ Social Security Number and Date of Birth to open and utilize fraudulent credit cards affecting interstate and foreign commerce. Counts 11, 12 and 13 detail the aggravated identity theft these defendants committed including but not limited to eight victims. Counts 14, 15 and 16 are money laundering counts derived from specified unlawful activities, which were the different schemes explained above.
“These individuals were involved in different criminal schemes in which they violated several federal statutes, defrauded and stole the identity of many individuals simply to enrich themselves quickly and illegally,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “The US Attorney’s Office will work with our law enforcement partners to vigorously pursue and hold accountable those who perpetrate these schemes to enrich themselves at the expense of honest people.”
Assistant U.S. Attorney Stuart J. Zander is in charge of the prosecution of the case, under the supervision of Assistant U.S. Attorney Julia Díaz-Rex, Deputy Chief of the International Narcotics Unit. If convicted the defendants face a minimum sentence of 10 years up to life in prison in Counts 1-2. If convicted of the aggravated identity theft charges, the defendants face a minimum sentence of two years in addition to the sentence imposed for the underlying felony. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
The case was investigated by agents from the Organized Crime Drug Enforcement Task Force (OCDETF) that investigates South American-based drug trafficking organizations responsible for the movement of multi-kilogram quantities of narcotics using the Caribbean as a transshipment point for further distribution to the United States. The initiative is composed of DEA, HSI, FBI, US Coast Guard, US Attorney’s Office for the District of Puerto Rico, and PRPD's Joint Forces for Rapid Action.
Court Approves Desegregation Plan for Cleveland, Mississippi, SchoolsRead the Press Release
Cleveland School District to Open Consolidated Middle and High Schools by August 2017
U.S. District Court Judge Debra M. Brown of the Northern District of Mississippi today approved a joint settlement agreement filed on Feb. 8 by the Justice Department, private plaintiffs, and the Cleveland School District. The agreement will lead to the effective desegregation of Cleveland’s middle and high schools by the start of the next school year.
Under the terms approved today, the school district agrees to comply with a May 13, 2016 court ruling mandating consolidation of Cleveland middle and high schools to remedy decades-long segregation in the school district. The consolidated high school, to be named Cleveland Central High School, will open by August at the current Margaret Green/Cleveland High campus. Also by August, the district will open the consolidated middle school (seventh and eighth grades), Cleveland Central Middle School, at the current East Side High facility. Under the agreement, sixth grade students will attend district elementary schools rather than the consolidated middle school.
As part of the agreement, the district and plaintiffs have withdrawn all alternative desegregation proposals from consideration by the Court. The district has also withdrawn its pending appeal before the U.S. Court of Appeals for the Fifth Circuit.
“The Department is pleased to have reached agreement with the Cleveland School District and private plaintiffs to settle this decades-long litigation,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “The plan approved today allows the community to move forward together. It reflects the parties’ shared commitment to high quality equal educational opportunities for all Cleveland students.”
Additional information is available on the Justice Department’s website at: www.justice.gov/opa/pr/federal-court-orders-justice-department-desegregation-plan-cleveland-mississippi-schools.
Promoting school desegregation and enforcing Title IV of the Civil Rights Act of 1964 is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Convicted Felon Sentenced for Gun PossessionRead 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 Joseph Green, 33, of Rochester, NY, who was convicted of being a felon in passion of a loaded firearm, was sentenced to 42 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Douglas E. Gregory, who handled the case, stated that on August 9, 2016, Green was arrested by United States Marshals and Rochester Police officers on Child Street in Rochester. The defendant was wanted on an outstanding bench warrant for an unrelated felony matter being handled in Monroe County Court. At the time of his apprehension, Green was in possession of a Raven Arms .25 caliber pistol, loaded with one round in the chamber and six rounds in the magazine.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief Michael Ciminelli; the United States Marshals Service, under the direction of Charles Salina; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Ashan Benedict, Special Agent-in-Charge, New York Field Division.
Cheektowaga Man Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Justin Griffin, 38, of Cheektowaga, NY, pleaded guilty to possession with intent to distribute, and distribution of, cocaine, before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Michael P. Felicetta, who is handling the case, stated that on four occasions in August and September of 2016, the defendant sold cocaine to a confidential source. On September 21, 2016, DEA agents executed a search warrant at 2067 Broadway Avenue (upper) in the Town of Cheektowaga. Griffin was located inside the apartment in the possession of three cellphones. A plastic bag with cocaine residue was located inside a closet of the apartment. One of the three cellphones in the defendant’s possession matched the phone number used by Griffin to set up the undercover sales he made with the confidential source.
The plea 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, and the Cheektowaga Police Department, under the direction of Chief David Zack.
Sentencing is scheduled for June 21, 2017, at 10:00 a.m. before Judge Skretny.
Charles River Laboratories International Inc. Agrees to Pay United States $1.8 Million to Settle False Claims Act AllegationsRead the Press Release
Charles River Laboratories International Inc. has agreed to pay the U.S. government $1.8 million to settle claims that it violated the False Claims Act by improperly charging for labor and other associated costs that were not actually provided on certain National Institutes of Health contracts, the Justice Department announced today. Charles River is a for-profit corporation headquartered in Wilmington, Massachusetts.
“Contractors are expected to deal fairly with federal agencies when receiving taxpayer funds,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to ensure that contractors spend taxpayer dollars appropriately and that those who do not are held accountable.”
Charles River holds contracts with National Institutes of Health (NIH) for services relating to the development, maintenance, and distribution of colonies of animals as well as the provision of laboratory animals to the NIH. Charles River billed to NIH labor and associated costs of employees at its Raleigh, North Carolina and Kingston, New York facilities despite the fact these individuals did not render the services as Charles River had claimed. Charles River disclosed the improper billing to the Department of Justice and the Department of Health and Human Services.
“Companies that do business with the federal government must bill honestly,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG).
“We expect companies that contract with HHS to provide the services as claimed and paid for by the taxpayers,” said Chief Counsel to the Inspector General, HHS-OIG, Gregory E. Demske. “Charles River’s self-disclosure and resolution of this matter underscores the importance of contractors preventing, detecting, and remediating overcharges of labor costs to HHS. Under our contractor self-disclosure program, OIG is committed to working with HHS contractors that detect fraud issues to review, take any appropriate action, and resolve these matters fairly.”
The case was handled by the Civil Division’s Commercial Litigation Branch and the HHS-OIG. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Cambodian National Pleads Guilty to Violations of the Federal Gun Control ActRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CHHAY LIM, age 45, a citizen of Cambodia, pled guilty today, on the day of trial, to a two-count Indictment charging him with violations of the Federal Gun Control Act.
According to the court documents, on or about March 2, 2015, LIM, an illegal alien, was found in possession of a TriStar 9mm semi-automatic pistol and a Marlin Model 6082, .22 caliber rifle.
LIM faces a maximum term of imprisonment of ten years, a fine of $250,000, three years supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Kurt D. Engelhardt set sentencing for May 17, 2017.
Acting U.S. Attorney Evans praised the work of the Homeland Security Investigations of the U.S. Department of Homeland Security, in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
California Man Convicted of Multi-State Heroin Conspiracy and Money LaunderingRead the Press Release
BATON ROUGE, LA - United States Attorney’s Office announced today another conviction in connection with a Middle District of Louisiana Organized Crime Drug Enforcement Task Force (OCDETF) investigation of a significant multi-state heroin conspiracy involving the distribution and sale of heroin disguised as oxycodone.
On March 9, 2017, LOGAN BRANNON, age 37, of Newport Beach, California, was convicted on all counts charged against him in an Indictment filed in October 2015, including conspiring to distribute and possess with the intent to distribute heroin, distributing heroin, and conspiring to commit money laundering. BRANNON’s guilty pleas ended a jury trial that had been in its third day before Chief U.S. District Judge Brian A. Jackson. BRANNON was remanded into the custody of the U.S. Marshal and will be sentenced on June 29, 2017.
BRANNON admitted that, between December 1, 2013, and October 2015, he conspired with individuals in California and Louisiana to distribute thousands of pills that had been pressed to resemble oxycodone that, in fact, contained over 1 kilogram of heroin. Upon delivery of the pills in Baton Rouge from California, they were then distributed to mid-level drug dealers and ultimately sold to drug abusers in East Baton Rouge and Livingston Parishes. Throughout the period of the conspiracy, BRANNON knew that the pills contained heroin, and his intent was to sell and profit from the sale of significant amounts of heroin. In January, February, and March 2015, BRANNON supplied over 30,000 heroin pills for distribution in Baton Rouge, Louisiana. In addition, between July 2014 and April 2015, LAMBERT and others agreed to engage in financial transactions involving the proceeds of the heroin-trafficking offenses in order to conceal and disguise the source, ownership, and control of the illegally obtained drug proceeds.
BRANNON was identified, along with 9 others, as part of a substantial heroin-trafficking and money laundering conspiracy investigated by the U.S. Drug Enforcement Tactical Diversion Squad, Baton Rouge District Office, and Internal Revenue Service - Criminal Investigations New Orleans Field Office Division.
U.S. Attorney Green stated: “This conviction is another example of our continuing efforts to join with federal, state, and local law enforcement to neutralize the heroin epidemic sweeping our country and make our community safer. This organization sold and distributed press heroin pills disguised as oxycodone presents into our district from California. The risk created by such activity is unconscionable, particularly concerning the number of overdose deaths due to heroin use throughout our community and the nation. I greatly appreciate the hardworking team of federal, state, and local law enforcement agents and prosecutors who handled this important and impactful case.”
“The successful prosecution of the members of this drug trafficking organization should be a warning to others who engage in this type of activity,” stated DEA Assistant Special Agent in Charge Brad L. Byerley. “This case highlights the impact multiple agencies can have when they join forces. We will continue to work together and pursue those who threaten our communities through the smuggling and distribution of illegal and dangerous drugs and bring them to justice.”
Jerome R. McDuffie, Special Agent in Charge of the IRS – Criminal Investigation New Orleans Field Office, stated: “The prosecution of these individuals is a victory in the ongoing war against drugs. It is our extreme honor to serve alongside our federal, state, and local law enforcement partners in the Organized Crime Drug Enforcement Task Force. It is vital to follow the money of illicit drug activity. Adding the particular skills of an IRS Special Agent to the investigation of drug enterprises, such as this one, is, in part, what allows the government to seize and forfeit the monetary proceeds of the organization, and convert those funds to use in the protection of the very communities these individuals would seek to destroy.”
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the U.S. Drug Enforcement Administration’s Tactical Diversion Unit in the Baton Rouge District Office, and the Internal Revenue Service’s Criminal Investigation Division, with assistance from the Louisiana State Police, East Baton Rouge Parish Sheriff’s Office, Iberville Parish Sheriff’s Office, Baton Rouge Police Department, the DEA in Orange County, California, and Newport Beach Police Department. The case is being prosecuted by Assistant United States Attorneys Paul L. Pugliese and Frederick A. Menner, Jr.
California Businessman Sentenced to Prison for Concealing over $23.5 Million in Israeli Bank AccountsRead the Press Release
Evaded More than $8.3 Million in Federal Taxes Over Seven Years
A Los Angeles, California 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.
Billerica Man Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – Brian Ashley, 38, pleaded guilty to one count of distribution and one count of possession of child pornography. U.S. District Court Judge George A. O’Toole, Jr. scheduled sentencing for June 19, 2017.
In February 2016, federal agents in Montana executed a search warrant at the home of an individual who had been sending and receiving images of child pornography. During the search, the individual was interviewed and agreed to allow agents to assume his online identities – including his Kik Messenger account. Kik Messenger is an online service that allows users to send messages, pictures and videos.
On Feb. 23, 2016, law enforcement initiated an undercover operation on Kik by sending out a message to the Montana individual’s contact list. An individual using the Kik username “orcusvox,” with the display name Brian Ashley, responded and a conversation ensued during which orcusvox asked whether the Montana individual had “anything new?” The undercover agent told orcusvox that he had lost everything and had to start over. The Kik user orcusvox then sent the undercover agent several images of child erotica and child pornography. On March 1, 2016, the Kik user orcusvox sent the undercover agent three video files also containing child pornography.
Agents obtained customer account and IP login information for the Kik user orcusvox and confirmed that the account was registered to Brian Ashley. It was also determined that the account had been accessed on the dates of the transfers from Ashley’s Billerica home as well as from his place of employment. Investigators subsequently obtained a search warrant for Ashley’s home, which resulted in seizure of his cell phone. Forensic review of phone revealed that Ashely had exchanged child pornography with other Kik users as well. In total, 246 images and 77 videos containing child pornography were found on Ashely’s cell phone.
The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and no greater than 20 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of $250,000. The charge of possession of child pornography provides for a sentence of no greater than 20 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorneys Jordi de Llano and Anne Paruti of Weinreb’s Criminal Division are prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Berkeley County man indicted on firearm chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Martinsburg man was arrested today for a firearm violation, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Michael Eugene Decker, age 37, of Martinsburg, West Virginia, was indicted on February 22, 2017 by a federal grand jury sitting in Elkins for “Armed Career Criminal Act.” The crime is alleged to have occurred on December 1, 2016 in Berkeley County.
Decker faces at least fifteen years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Auburn Man Sentenced to over Five Years for Cocaine TraffickingRead the Press Release
Contact: David Joyce
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: Acting United States Attorney Richard W. Murphy announced that Derrick Favreau, 33, of Auburn, Maine, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to 63 months in prison and three years of supervised release for possession with intent to distribute cocaine. He was also fined $5,000. He pleaded guilty July 26, 2016.
According to Court records, in May 2014, law enforcement officers seized distributable amounts of cocaine from a hidden compartment in Favreau’s vehicle. Later, officers seized $19,000 from a hidden compartment in a second vehicle operated by Favreau and $10,000 during the execution of a search warrant.
This case was investigated by the Maine Drug Enforcement Agency, the Maine State Police, the Lewiston and Auburn Police Departments, and the Androscoggin County Sheriff’s Office.
Albuquerque Felon Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Manuel Herrera, 50, of Albuquerque, N.M., pled guilty today in federal court to being a felon in possession of firearms and ammunition under a plea agreement with the U.S. Attorney’s Office.
Herrera was arrested in Jan. 2017, on an indictment charging him with being a felon in possession of a firearm and ammunition on Sept. 11, 2016, in Bernalillo County, N.M. According to the indictment, Herrera was prohibited from possessing firearms or ammunition because of his prior felony convictions for forgery, aggravated driving while intoxicated, bribery or intimidation of a witness, possession of a firearm by a felon, possession of a controlled substance, and aggravated assault with a deadly weapon.
During today’s proceedings, Herrera entered a guilty plea to the indictment, and admitted possessing a firearm and ammunition on Sept. 11, 2016. At sentencing, Herrera faces a maximum penalty of ten years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sandoval County Sheriff’s Office. Assistant U.S. Attorney Samuel A. Hurtado is prosecuting the case.
Acting United States Attorney for the Southern District of AlabamaRead the Press Release
The United States Attorney’s Office of the Southern District of Alabama announces that Steve Butler is the Acting United States Attorney as of midnight, March 10th 2017. Mr. Butler is a career attorney with the Department of Justice with over 20 years of service.
Mr. Butler has spent approximately the past 14 years serving the United States Attorney Office for the Southern District of Alabama. During his time in the office he has served as the First Assistant United States Attorney (FAUSA) and Chief of the Civil Division from 2013 to present.
Prior to becoming the FAUSA and the Chief of the Civil Division, he served as the Chief of the Appellate Division from 2007 to 2013; as the Deputy Criminal Chief from 2008 to 2012; and was an Assistant United States Attorney assigned to the Criminal Division from 2003 to 2007, where he prosecuted general crimes, white collar, and public corruption. Prior to arriving at the United States Attorney’s Office in 2003, he served as a law clerk to the Honorable Judge Kristi DuBose. He also served two tours of duty in the Department of Justice's Civil Rights Division in Washington, DC.
Acting United States Attorney AnnouncedRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: The United States Attorney’s Office announced that on Friday the President of the United States requested the resignation of U.S. Attorney Thomas E. Delahanty II. Pursuant to the Vacancies Reform Act, Richard W. Murphy, previously the First Assistant U.S. Attorney (“FAUSA”) is now the Acting U.S. Attorney for the District of Maine.
Acting U.S. Attorney Murphy has served as an Assistant U.S. Attorney for nearly 27 years and as FAUSA since September 2010. He is a South Portland native. He graduated from Holy Cross College in Worcester, Massachusetts and from the University of Michigan Law School in Ann Arbor. He was a partner in the Portland law firm of Pierce Atwood before joining the U.S. Attorney's Office in 1990.
11 March 2017
Statement Regarding US Attorney David CappRead the Press Release
HAMMOND- The United States Attorney’s Office announced that David Capp has submitted his resignation as United States Attorney as requested by the President.
Capp stated: After 31 years at the United States Attorney’s office I have submitted my resignation as United States Attorney. I had advised my office last summer that it was my plan to retire in 2017. I had been looking toward a June retirement, so this is just a few months earlier.
It has been my greatest honor and privilege to serve all these years. The work we do in the United States Attorney’s Office has such an important positive impact on the citizens of northern Indiana. I want to thank the men and women of the USAO for their dedication and professionalism, day-in and day-out. They are the people that do the hard work!
Some years ago I spoke one evening at a church in Gary. We had just made some arrests and closed down a drug operation in the neighborhood the church served. Afterwards a gentleman came up to me, shook my hand, thanked me for our efforts and told me “now my grandchildren can play in the yard again.” That has always stuck with me and kept me focused on what our work is really about. I hope that I have played a part in making more yards in the Northern District of Indiana safe for “grandchildren to play in.”
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Statement by U.S. Attorney Preet BhararaRead the Press Release
“Today, I was fired from my position as U.S. Attorney for the Southern District of New York. Serving my country as U.S. Attorney here for the past seven years will forever be the greatest honor of my professional life, no matter what else I do or how long I live. One hallmark of justice is absolute independence, and that was my touchstone every day that I served. I want to thank the amazing people of the Southern District of New York, the greatest public servants in the world, for everything they do each day in pursuit of justice. They will continue to do the great work of the Office under the leadership of Joon H. Kim, the current Deputy U.S. Attorney, who will serve as Acting U.S. Attorney.”
Statement by U.S. Attorney Preet BhararaRead the Press Release
“Today, I was fired from my position as U.S. Attorney for the Southern District of New York. Serving my country as U.S. Attorney here for the past seven years will forever be the greatest honor of my professional life, no matter what else I do or how long I live. One hallmark of justice is absolute independence, and that was my touchstone every day that I served. I want to thank the amazing people of the Southern District of New York, the greatest public servants in the world, for everything they do each day in pursuit of justice. They will continue to do the great work of the Office under the leadership of Joon H. Kim, the current Deputy U.S. Attorney, who will serve as Acting U.S. Attorney.”
10 March 2017
Woodbridge Resident Convicted of Robbery and MurderRead the Press Release
ALEXANDRIA, Va. – Bernardo Eugene Ford, Jr., 26, of Woodbridge, was convicted yesterday by a federal jury on charges related to his robbery and murder of a drug dealer in Falls Church.
On Jan. 5, 2017, Ford was charged in an indictment with conspiracy, armed robbery of a drug dealer, and using firearms in committing that robbery. According to the evidence presented at trial, on Feb. 23, 2016, Ford and another person, his co-conspirator, went to the victim’s apartment located on the 23rd floor of the South Tower of Skyline Towers off Seminary Road in Falls Church, intending to rob him of his drugs and drug proceeds. When the drug dealer resisted, Ford and his co-conspirator shot him, first in the arm and then in the back as he attempted to flee, severing his spine. Ford and his co-conspirator then fled, leaving behind approximately $2400 in cash hidden in the drug dealer’s closet, but taking with them one of the victim’s iPhones.
Telephone records introduced by the prosecution showed Ford’s and the victim’s phones contacting the same cell phone tower minutes after the murder and approximately two miles away from the apartment. Ford’s Facebook records contained communications in which he discussed with two different persons his intention to rob drug dealers. Cartridge casings and bullets recovered from the apartment were fired from two different semi-automatic handguns, leading to the conclusion that two persons were involved in committing the crime.
Ford faces a mandatory minimum penalty of 10 years in prison and a maximum penalty of life in prison when he is sentenced on June 9, 2017. 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after the verdict was accepted by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorneys Michael Rich and Carina Cuellar are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-149.
Volkswagen AG Pleads Guilty in Connection with Conspiracy to Cheat U.S. Emissions TestsRead the Press Release
Volkswagen AG (VW) pleaded guilty in federal court in Detroit today to three felony counts charging: (1) conspiracy to defraud the United States, engage in wire fraud, and violate the Clean Air Act; (2) obstruction of justice; and (3) importation of merchandise by means of false statements. As part of the plea, VW agreed to pay a $2.8 billion penalty as a result of the company’s decade-long scheme to sell diesel vehicles containing software designed to cheat on U.S. emissions tests. In January 2017, VW had agreed to plead guilty to resolve these criminal charges.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Barbara McQuade of the Eastern District of Michigan, Deputy Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division, Special Agent in Charge Jeffrey Martinez of the Chicago Area Office of the Environmental Protection Agency’s Criminal Investigation Division (EPA-CID) and Special Agent in Charge David Gelios of the FBI Detroit Field Office, made the announcement.
VW pleaded guilty before U.S. District Judge Sean F. Cox of the Eastern District of Michigan. Specifically, VW pleaded guilty, first, to participating in a conspiracy to defraud the United States and VW’s U.S. customers and to violate the Clean Air Act by lying and misleading the EPA and U.S. customers about whether certain VW, Audi and Porsche branded diesel vehicles complied with U.S. emissions standards, using cheating software to circumvent the U.S. testing process and concealing material facts about its cheating from U.S. regulators. Second, VW pleaded guilty to obstruction of justice for destroying documents related to the scheme. And third, VW pleaded guilty to importing these cars into the United States by means of false statements about the vehicles’ compliance with emissions limits. After accepting VW’s plea, Judge Cox scheduled the company’s sentencing for April 21, 2017.
The FBI and EPA-CID investigated the case. This case is being prosecuted by members of the Department of Justice’s Criminal Division, Fraud Section, including: Chief of the Securities and Financial Fraud Unit Benjamin D. Singer, as well as Trial Attorneys David Fuhr, Alison Anderson, Christopher Fenton and Gary Winters. Also prosecuting the case are members of the Department of Justice’s Environment and Natural Resources Division, Environmental Crimes Section, including: Senior Trial Attorney Jennifer Blackwell. Additionally, the case is being prosecuted by members of the U.S. Attorney’s Office for the Eastern District of Michigan, including Criminal Division Chief Mark Chutkow, Economic Crimes Unit Chief John K. Neal and Assistant U.S. Attorney Timothy J. Wyse. The Justice Department’s Office of International Affairs also assisted in the case. The Justice Department extends its thanks to the Office of the Public Prosecutor in Braunschweig, Germany.
Volkswagen AG Pleads Guilty in Connection with Conspiracy to Cheat U.S. Emissions TestsRead the Press Release
Volkswagen AG (VW) pleaded guilty in federal court in Detroit today to three felony counts charging: (1) conspiracy to defraud the United States, engage in wire fraud, and violate the Clean Air Act; (2) obstruction of justice; and (3) importation of merchandise by means of false statements. As part of the plea, VW agreed to pay a $2.8 billion penalty as a result of the company’s decade-long scheme to sell diesel vehicles containing software designed to cheat on U.S. emissions tests. In January 2017, VW had agreed to plead guilty to resolve these criminal charges.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Barbara McQuade of the Eastern District of Michigan, Deputy Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division, Special Agent in Charge Jeffrey Martinez of the Chicago Area Office of the Environmental Protection Agency’s Criminal Investigation Division (EPA-CID) and Special Agent in Charge David Gelios of the FBI Detroit Field Office, made the announcement.
VW pleaded guilty before U.S. District Judge Sean F. Cox of the Eastern District of Michigan. Specifically, VW pleaded guilty, first, to participating in a conspiracy to defraud the United States and VW’s U.S. customers and to violate the Clean Air Act by lying and misleading the EPA and U.S. customers about whether certain VW, Audi and Porsche branded diesel vehicles complied with U.S. emissions standards, using cheating software to circumvent the U.S. testing process and concealing material facts about its cheating from U.S. regulators. Second, VW pleaded guilty to obstruction of justice for destroying documents related to the scheme. And third, VW pleaded guilty to importing these cars into the United States by means of false statements about the vehicles’ compliance with emissions limits. After accepting VW’s plea, Judge Cox scheduled the company’s sentencing for April 21, 2017.
The FBI and EPA-CID investigated the case. This case is being prosecuted by members of the Department of Justice’s Criminal Division, Fraud Section, including: Chief of the Securities and Financial Fraud Unit Benjamin D. Singer, as well as Trial Attorneys David Fuhr, Alison Anderson, Christopher Fenton and Gary Winters. Also prosecuting the case are members of the Department of Justice’s Environment and Natural Resources Division, Environmental Crimes Section, including: Senior Trial Attorney Jennifer Blackwell. Additionally, the case is being prosecuted by members of the U.S. Attorney’s Office for the Eastern District of Michigan, including Criminal Division Chief Mark Chutkow, Economic Crimes Unit Chief John K. Neal and Assistant U.S. Attorney Timothy J. Wyse. The Justice Department’s Office of International Affairs also assisted in the case. The Justice Department extends its thanks to the Office of the Public Prosecutor in Braunschweig, Germany.
United States Postal Service Letter Carrier Convicted of Access Device Fraud and Aggravated Identity TheftRead the Press Release
A United States Postal Service letter carrier was convicted at trial of access device fraud and aggravated identity theft.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), Max Eamiguel, Special Agent in Charge, U.S. Postal Service, Office of Inspector General (USPS-OIG), Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, and Cissy Proctor, Executive Director, Florida Department of Economic Opportunity (DEO), made the announcement.
Yvenel Clotaire, of West Palm Beach, was convicted yesterday, following a four-day federal jury trial in West Palm Beach, Florida of conspiring to commit access device fraud, access device fraud, and five counts of aggravated identity theft. Sentencing is scheduled for May 19, 2017, before United States District Court Judge Robin L. Rosenberg.
According to the court record, including evidence introduced at trial, Clotaire engaged in a scheme to obtain fraudulent unemployment benefits from the Florida Department of Economic Opportunity (DEO), while the defendant was working as a letter carrier for the United States Postal Service. Clotaire provided coconspirators with the residential addresses of approximately 50 to 60 individuals on his postal route, to be used in furtherance of the scheme. Fraudulent unemployment applications, using the addresses and stolen identities of postal customers, were then submitted to DEO and resulted in the issuance of Florida Visa debit cards. The debit cards were mailed through interstate commerce to the residential addresses on the defendant’s postal route. The cards were ultimately transferred to at least one other co-conspirator and used to make withdrawals from ATMs. As a result of the fraudulent scheme, the State of Florida sustained approximately $90,000 in financial losses.
Mr. Greenberg commended the investigative efforts of the DOL-OIG, USPS-OIG, USPIS and DEO. This case is being prosecuted by Assistant U.S. Attorney Adam McMichael.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
United States Attorney Stephanie A. Finley retiring after 25 years of federal serviceRead the Press Release
LAFAYETTE, La. – Stephanie A. Finley, United States Attorney for the Western District of Louisiana, announced today that she is retiring after 25 years of federal service.
Finley began her public service in the military in 1988 after she was commissioned as a 2nd Lieutenant in the United States Air Force, competing nationally and being designated as a Distinguished Graduate of the Reserve Officer Training Corps. She served for four years on active duty at England Air Force Base, Louisiana and Shaw Air Force Base, South Carolina, where she also served as a Special Assistant United States Attorney for both installations. Ms. Finley served as a member of the Judge Advocate Corps for 25 years and was promoted to the rank of Lieutenant Colonel. She is a graduate of Squadron Officer School, Air Command and Staff College, and Air War College. Ms. Finley is the recipient of the Meritorious Service Medal, four Oak Leaf Clusters, the Air Force Commendation Medal, one Oak Leaf Cluster, the Air Force Outstanding Unit Award, the National Defense Service Medal, the Global War on Terrorism Service Medal, the Air Force Longevity Service, one Oak Leaf Cluster, the Armed Forces Reserve Medal, and the Air Force Training Ribbon. She retired in November of 2016.
During her Reserve career, she was assigned to Headquarters Air Force Global Strike Command, the 8th Air Force, and the 2nd Bomb Wing. As a JAG officer, she served as a hearing officer for criminal cases and administrative discharge boards, worked in the areas of contract and labor law and military justice, as well as providing legal assistance services for active duty, reservists and dependents of the military.
Ms. Finley began her career with the Department of Justice as an Assistant United States Attorney in October of 1995. Prior to her appointment as U.S. Attorney in June of 2010, Ms. Finley served as the District’s Senior Litigation Counsel and was responsible for the District’s training and mentoring programs. She also served as the Deputy Criminal Chief for the Lafayette Office. In her 21-plus years with the Department of Justice, she prosecuted cases involving white collar crimes, violent crimes, civil rights, environmental crimes, drug trafficking, public corruption and tax evasion.
Finley served on Attorney General Eric Holder’s Advisory Committee (AGAC) from 2011-2013. The Attorney General Advisory Committee was created to serve as the voice of the U.S. Attorneys and to advise the attorney general on policy, management and operational issues impacting the offices of the U.S. Attorneys. In addition, she also served as Co-Chair and Chair of the Attorney General’s Advisory Committee’s Office of Management and Budget Committee, and on a number of subcommittees and working groups for the Attorney General’s Advisory Committee, to include the Civil Rights Subcommittee, Native American Issues Subcommittee, the Child Exploitation and Obscenity Working Group, Environmental Issues Working Group, Racial Disparities Working Group, and the Service Members and Veterans Rights Working Group. Finley also served as a board member of the Gulf Coast High Intensity Drug Trafficking Area (HIDTA) Board.
Under Ms. Finley’s leadership, transparency and outreach were District priorities. Her office initiated and conducted numerous outreach efforts designed to strengthen relationships between law enforcement partners, citizens, schools, and community groups. Ms. Finley also focused her attention on developing in-house programs designed to develop leadership among both attorneys and support staff. As the chief law enforcement officer of 42 of Louisiana’s 64 parishes, her emphasis was on civil and criminal cases with a strong federal nexus. Between 2010 and 2016, the U.S. Attorney’s Office, through its amped up Financial Litigation Unit, collected more than $101 million in civil and criminal actions.
Known for her commitment to the children of this District, Ms. Finley engaged the district’s clergy, civic, nonprofit, and business communities through community forums, roundtable discussions and a myriad of speaking engagements. She often on her own time and at her own expense visited the District’s youth at schools, community centers, and nonprofit organizations. Ms. Finley was also a frequent speaker at law enforcement events. She prioritized the District’s Law Enforcement Coordinating Committee (LECC) efforts to provide countless training sessions for federal, local and state law enforcement agencies designed to enhance their enforcement abilities to keep our communities safe.
Ms. Finley ensured that all five of the division offices were operational and the Lafayette and Shreveport offices were fully staffed, navigating through several financial challenges, including a hiring freeze, government shutdown and budget sequestration.
Ms. Finley is a Magna Cum Laude graduate of Grambling State University where she received a Bachelor of Arts Degree in Political Science. She is a Cum Laude graduate of Southern University Law Center where she received her Juris Doctorate in 1991 and was the Editor in Chief of the Law Review.
Ms. Finley has been recognized for her longstanding dedication and commitment to the community. She previously served as the Criminal Bar Examiner and an Assistant Bar Examiner for the Louisiana Bar, is a frequent youth conference lecturer on the local and state level, and has been honored as a “Top 20 Under 40” recipient, one of Lafayette’s “Women Who Means Business,” a “Person of Excellence” recipient from the National Association of University Women, a Torchbearers’ Award recipient, a Southern University Law Center Hall of Fame inductee, a recipient of Grambling State University’s Beacon Award for Public Service, a Public Service Award recipient at Alpha Kappa Alpha’s Regional Conference, and various other Achievement Awards
“I have been truly blessed to serve my nation in the capacity of the United States Attorney, Assistant United States Attorney, Special Assistant United States Attorney, and Lt. Colonel in the United States Air Force. I am extremely proud of the District’s accomplishments over the last six and a half years; there are too many to mention. But, as I have said from day one, no one does this alone. Today, I would like to thank all of the unsung men and women of the Western District of Louisiana who are some of the finest public servants in our state and nation. They are the reasons why my service has been so gratifying and successful. I want to also thank the men and women who serve in our partner federal agencies and our tribal, state and local partners. The public will never know the magnitude of our ongoing collaboration to keep the citizens of our communities safe and to represent the United States. I also thank my family and friends who have been supportive throughout my career.
The work of the Department of Justice and the United States Attorney’s Office will continue. My service to our nation and state will also continue; it will now be in my private capacity. I am excited about what the future holds, and I am so grateful to have had the opportunity to serve as the United States Attorney.”
United States Attorney Ronald W. Sharpe Announces ResignationRead the Press Release
St. Thomas, USVI – United States Attorney Ronald W. Sharpe has announced his resignation effective midnight on March 10, 2017. Mr. Sharpe served as United States Attorney since September 2009.
"To serve as United States Attorney for the District of the Virgin Islands has been the highest honor of my professional career," Sharpe said. "Every day, I was inspired by the dedication of the attorneys and members of the United States Attorney’s Office, to do my best to represent the residents of the Virgin Islands and defend the rule of law. I am extremely proud of the work the United States Attorney’s Office has accomplished in and out of the courtroom, including building meaningful bonds of trust with the community we serve. I am confident that the extraordinary professionals of the United States Attorney’s Office will remain tirelessly devoted to the pursuit of justice on behalf of the residents of the Virgin Islands and our great nation."
Sharpe, a graduate of Tulane University and Stanford Law School, began his career with the U.S. Department of Justice in 1995, serving as an Assistant United States Attorney in the District of Columbia. Sharpe had previously served as First Assistant United States Attorney in the District of the Virgin Islands. During his tenure as United States Attorney, Sharpe served on the Attorney General’s Advisory Committee (AGAC), and on several subcommittees of the AGAC, including the Borders and Immigration Subcommittee and the Environmental Crimes Working Group. Sharpe also served as the chairperson of the Puerto Rico/USVI High Intensity Drug Trafficking Area (HIDTA) program.
When he assumed the role of United States Attorney, Sharpe designated the top priorities of the District, including aggressively fighting public corruption, which historically has challenged law enforcement’s efforts to effectively address crime in the Virgin Islands. This focus led to significant prosecutions that have enabled federal and local law enforcement and other government institutions operating in the Virgin Islands to enforce the rule of law and strengthen their resistance to continued corruption. Some of the significant public corruption cases handled by the office over the past seven years include:
• Roberto Tapia, a former Director of Environmental Enforcement for the Virgin Islands Department of Planning and Natural Resources (DPNR), was sentenced to 70 months in prison for using DPNR as a criminal enterprise to engage in illegal drug trafficking activities including the possession and trafficking of numerous kilos of cocaine.
• Louis "Lolo" Willis, the former Executive Director of the Virgin Islands Legislature, was sentenced to five years in prison for federal programs bribery and extortion under color of official right for accepting bribes from contractors.
• Alvin Williams, Jr., a former Virgin Islands senator, was sentenced to 52 months in prison in connection with his guilty plea to racketeering, that is, operating and participating in a criminal enterprise whose members and associates engaged in illegal activities including bribing a Virgin Islands public official, soliciting and receiving bribes from numerous St. Thomas construction project developers, fraudulently soliciting and increasing staff members’ salaries, and using the increase of funds for his personal use.
• Virgin Islands Police Department (VIPD) Captain Enrique Saldana, VIPD Sergeant George Green and civilian Luis Roldan were found guilty of the federal charges of conspiracy to commit extortion and extortion, and the Virgin Islands charges of conspiratorial extortion, extortion under color of official right, conflict of interest and solicitation and receipt of a bribe. Greene was sentenced to 36 months’ imprisonment and Saldana was sentenced to 41 months’ imprisonment. Prior to sentencing, Roldan was murdered.
• Former VIPD officers Enid Edwards and Francis Brooks were sentenced to 151 months in prison for operating a criminal enterprise ("RICO") as well as federal and territorial crimes related to extortion, bribery and conspiracy to distribute controlled substances. Former Virgin Islands Port Authority Officer Bill John- Baptiste was convicted of false imprisonment and kidnapping and sentenced to five years in prison.
Sharpe also made civil rights a priority in the Virgin Islands, focusing on removing barriers to access for persons with disabilities under the Americans with Disabilities Act ("ADA"). As a result of an investigation initiated by the United States Attorney’s Office, Caribbean Cinemas agreed to remedy potential violations of the ADA at its theaters by increasing accessible seating, making restrooms accessible and providing assisted-listening and closed-captioned systems for the hearing impaired.
With an emphasis on prevention, Sharpe helped foster a robust outreach program in the district. Projects included implementation of the United States Attorney’s Office Community Outreach Initiative, a series of community meetings throughout the Virgin Islands where members of law enforcement and social services groups engage in an open forum to discuss how criminal activity affecting their community, especially gun violence, can best be addressed. Participants in the Community Outreach Initiative included the Virgin Islands Police Department, ATF, DEA, FBI, the United States Marshals Service, Crime Stoppers, Virgin Islands Housing Authority, My Brothers Workshop and Weed & Seed St. Thomas and St. Croix. In addition, Sharpe encouraged greater community involvement, including a volunteer program with the United States Attorney’s Office and the Boys and Girls Club of the Virgin Islands.
The District of the Virgin Islands covers the Divisions of St. Thomas and St. John, and St. Croix. The United States Attorney’s Office has 15 attorneys and is responsible for conducting all criminal and civil litigation in the district involving the United States government.
United States Attorney Peter F. Neronha Stepping DownRead the Press Release
PROVIDENCE – At the direction of the President, United States Attorney Peter F. Neronha today announced his resignation, effective at midnight. Mr. Neronha joins all of the other United States Attorneys appointed by President Obama in stepping down today.
Mr. Neronha, the 39th person to be appointed United States Attorney for the District of Rhode Island, began a career of public service in 1996 as a Special Assistant Attorney General in the Rhode Island Department of the Attorney General. In 2002, Mr. Neronha joined the United States Attorney’s Office as an Assistant United States Attorney. Since becoming United States Attorney, Mr. Neronha has twice been appointed to terms on the Attorney General’s Advisory Committee, by Attorney General Eric Holder in 2009, and by Attorney General Loretta Lynch in 2016. The AGAC regularly meets with and advises the Attorney General on policy, management and operational issues impacting all 94 U.S. Attorney’s offices nationwide.
A fourth generation native of Jamestown, Mr. Neronha attended North Kingstown High School, and in 1985 graduated summa cum laude from Boston College. He attended Boston College Law School, where he was a member of the Boston College Law Review. Upon graduation, he joined the Boston, Massachusetts law firm, Goodwin Procter, LLP.
United States Attorney Peter F. Neronha released the following statement:
“It has been the honor and privilege of my professional life to serve the people of Rhode Island as United States Attorney for nearly eight years. When I began my career in public service as a state prosecutor over twenty years ago, I never could have anticipated what the future would hold. I am incredibly grateful to President Obama, and to Senators Reed and Whitehouse, who recommended me to the President, for their confidence in me.
“I have met and worked with so many great and talented people along the way, both in law enforcement and in the community, and we have done so much together. We have faced so many challenges, from the steady stream of public corruption cases to the scourge of human trafficking, particularly child sex trafficking. International drug cartels and prescription pill misuse have caused our ongoing opioid and heroin public health crisis, threatening the lives of children and adults alike. Violent crime, and a criminal justice system not best equipped to deal with it, has challenged us to rethink our mission as prosecutors and law enforcement – to understand that prevention and effective re-entry for those who have paid their debt to society have their place alongside smart enforcement.
“Whatever we have accomplished, none of it would have been possible without the dedication and outstanding ability of the men and women of the Office I have been so fortunate to lead. Some have been my colleagues for nearly fifteen years, and I will miss them all, very, very much. Given the nature of this job there is never a perfect time to step away. With enormous gratitude toward those who have been so supportive during my tenure, my family and I look forward to the next chapter of our lives.”
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United States Attorney Eileen M. Decker ResignsRead the Press Release
LOS ANGELES – Eileen M. Decker today resigned from the position of United States Attorney for the Central District of California at the request of the President.
“It has been an honor to serve the people of the Central District of California as the United States Attorney,” Ms. Decker said. “I am awed by the dedication of the Assistant United States Attorneys, support staff, and law enforcement officers who are committed to our public safety and national security. I thank all of them for their continued service.”
Ms. Decker became the United States Attorney in June 2015. During her 20 months in the position, she restructured the Office in an effort to confront modern challenges.
Approximately one month after taking office, Ms. Decker created the National Security Division (NSD), which joined Criminal, Civil and Tax as the units of the office that litigate cases on behalf of the United States. NSD combined two sections formerly in the Criminal Division – the Terrorism and Export Crimes Section and the Cyber and Intellectual Property Crimes Sections. NSD combined these two units so they could work cooperatively to gather intelligence and disrupt national security threats more effectively.
Within hours of the December 2, 2015 San Bernardino terrorist attack, prosecutors in the NSD were embedded with law enforcement, assisting in the response to the attacks and the investigation in the aftermath. Although the shooters were killed by law enforcement, the investigation resulted in the indictment and convictions of three of the shooters’ family members, as well as Enrique Marquez Jr., who purchased the assault weapons used in the attack. Prosecutors are also seeking to forfeit the male shooter’s life insurance proceeds.
The San Bernardino investigation highlighted the challenge to law enforcement posed by encryption technology. The office litigated the high-profile case against Apple over the San Bernardino shooter’s iPhone. Although that case was withdrawn when the Federal Bureau of Investigation was able to unlock the phone without Apple’s assistance, the issue brought national attention to the problem of “going dark.”
Ms. Decker’s tenure also saw the convictions of two Anaheim men who received 30-year sentences for attempting to join the Islamic State of Iraq and the Levant (ISIL). Another Orange County man was also convicted and received a 15-year sentence for his support of ISIL.
While United States Attorney, Ms. Decker also oversaw the conviction and sentencing of Paul Ciancia, who murdered Transportation Safety Administration Transportation Security Administration officer Gerardo Hernandez and was sentenced to life plus 60 years in federal prison.
As United States Attorney, Ms. Decker placed particular emphasis on the prosecution of violent crime and human trafficking cases.
The office tripled the number of illegal weapons prosecutions between 2014 and 2016, including four convictions in two days recently. Ms. Decker also oversaw convictions and significant sentences for a wide variety of offenders who contribute to violent crime, including Mexican Mafia members, Florencia 13 gang members, robbers who brandished firearms, and criminals who illegally sold firearms.
Prosecutors obtained a 40-year sentence against Gardena gang member and long-time pimp Laron Darrell Carter for the sex trafficking of children. Carter’s conduct spanned a decade as he prostituted girls as young as 13 and subjected some of them to beatings.
In a groundbreaking case, the office obtained a 57-month sentence against Charles Goswitz of Torrance who sought to hire a 16-year-old girl for sex. This was the first federal conviction in Los Angeles of a “John,” or customer, in a teen sex-trafficking prosecution.
While the United States Attorney, Ms. Decker supervised a number of high-profile cases in the area of Public Corruption and Civil Rights.
Last summer, the United States Attorney’s Office brought civil rights charges against seven members and affiliates of the “Big Hazard” street gang in relation to their firebombing of African American families in Boyle Heights. The case remains pending trial.
The United States Attorney’s Office has successfully resolved criminal and civil investigations into the Los Angeles Sheriff’s Department’s treatment of inmates in its jails. These investigations resulted in the successful prosecutions of 20 former members of the Sheriff’s Department and a settlement agreement permitting federal monitoring of the jails.
Last year, former California State Senator Ron Calderon was convicted of receiving bribes, and his brother, Thomas Calderon, was convicted of laundering bribe money. The former state lawmaker received a 42-month sentence, and his brother received a sentence of one year and one day of incarceration.
Ms. Decker has hired approximately one-quarter of the 270 Assistant United States Attorneys in the office. These new AUSAs are a diverse group of women and men from a broad spectrum of experiences.
United States Attorney Christopher A. Crofts Announces His ResignationRead the Press Release
Cheyenne, Wyoming – United States Attorney Christopher A. Crofts has announced that he will resign his position with the Department of Justice, effective midnight March 10, 2017.
"It has been my distinct pleasure to work with the men and women of the Wyoming United States Attorney’s Office for the past seven years. I thank them and the law enforcement community for their tireless efforts in the pursuit of justice on behalf of the citizens of Wyoming and the United States," USA Crofts said.
U.S. Attorney's Office Concludes Investigation into Fatal Shooting of Carjacking Suspect in Southeast WasingtonRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia announced today that it has completed its review of the actions of four officers from the Prince George’s County and Forest Heights, Md., Police Departments who were involved in the fatal shooting of James W. Covington, Jr. on Nov. 2, 2015, following a carjacking in Maryland and a police pursuit into Washington, D.C. After a careful review of all of the evidence, the U.S. Attorney’s Office has concluded that there is insufficient evidence to pursue federal criminal civil rights or District of Columbia charges against the officers involved in the fatal shooting of Mr. Covington.
The U.S. Attorney’s Office and the Metropolitan Police Department (MPD) conducted a comprehensive review of the incident, including interviews of civilian and law enforcement witnesses as well as a review of forensic and autopsy reports, photographs, diagrams, physical evidence, recorded radio communications, video evidence, and reports from law enforcement agencies and the District of Columbia Department of Fire and Emergency Medical Services.
According to the evidence, the shooting took place on Nov. 2, 2015, at approximately 7:30 p.m., in the 2800 block of Gainesville Street SE. It followed a chain of events that began at 7:15 p.m., when a 2011 Toyota Camry was stolen from a man during an armed carjacking and assault in Fort Washington, Md. The Prince George’s County Police Department responded within minutes of the crime, and a look-out was broadcast with a description of the vehicle and the suspect.
A Prince George’s County police officer spotted the vehicle a quarter mile from where it was stolen, followed it a short distance, and then activated his lights and siren. The Camry’s driver, later identified as Mr. Covington, failed to stop, and other officers joined the pursuit. Once Mr. Covington reached Route 210, he increased his speed to 85 to 95 mph. When the pursuit crossed into Forest Heights, Md., two Forest Heights police officers responded to a call for assistance. A police helicopter was also dispatched to assist with the pursuit. As the pursuit approached the Suitland Parkway and 30th Street SE in Washington, D.C., the carjacked vehicle hit a curb and the front tire became flat. Mr. Covington did not stop. Mr. Covington continued onto Naylor Road SE, before turning left onto Gainesville Street SE.
According to the evidence, Mr. Covington bailed out of the car and attempted to flee on foot, at one point jumping over a fence. He did not respond to orders from police to stop or show his hands. During a foot pursuit, Mr. Covington was armed with a gun and he pointed the weapon at police. The four officers from Prince George’s County and Forest Heights, who were involved in the pursuit, discharged their weapons during the confrontation, fatally wounding Mr. Covington.
Mobile Crime technicians recovered a 9mm Luger semi-automatic handgun near Mr. Covington’s body. The handgun had one round in the chamber and 11 rounds in the magazine; the magazine has a capacity of 15 rounds. Two of the officers involved in the shooting reported that they believed Mr. Covington fired the gun during the confrontation, but no shell casings were found and there is insufficient evidence to determine whether Mr. Covington had recently fired the weapon.
An autopsy determined that Mr. Covington, 62, died from multiple gunshot wounds.
After a careful, thorough, and independent review of the evidence, federal prosecutors have found insufficient evidence to prove beyond a reasonable doubt that the officers used excessive force under the circumstances. To the contrary, there is sufficient evidence that the officers were acting in self-defense at the time of the shooting.
Use-of-force investigations generally
The U.S. Attorney’s Office reviews all police-involved fatalities to determine whether sufficient evidence exists to conclude that any officers violated either federal criminal civil rights laws or District of Columbia law. To prove such violations, prosecutors must typically be able to prove that the involved officers willfully used more force than was reasonably necessary. Proving “willfulness” is a heavy burden. Prosecutors must not only prove that the force used was excessive, but must also prove, beyond a reasonable doubt, that the officer acted with the deliberate and specific intent to do something the law forbids. A conclusion that “there is insufficient evidence” is not meant to suggest anything further about what evidence, if any, exists.
The U.S. Attorney’s Office remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are fully and completely investigated. The Metropolitan Police Department’s Internal Affairs Division investigates all police-involved fatalities in the District of Columbia.
U.S. Attorney Polite to Step Down on March 24thRead the Press Release
Kenneth A. Polite, United States Attorney for the Eastern District of Louisiana, has announced that he has submitted his resignation to President Trump and Attorney General Sessions, effective on March 24, 2017.
Polite stated, “I have enjoyed this great opportunity to serve as U.S. Attorney here in Southeast Louisiana. More importantly, it has been the highest honor to lead this Office’s outstanding employees who are committed to the ideals of collegiality, diligence, and professionalism. I am confident that these public servants will continue to ensure that justice reaches out to all residents of this region. Regardless of my title or position, I will always work to improve the lives of our region’s residents, especially our young people.”
Polite, age 41, began his tenure in September 2013, during one of the most difficult periods in the Office’s history. He will depart after having focused on improving the Office’s prosecutorial efficiency and transparency, strengthening its regional collaboration with both law enforcement and the residents they serve, and fostering greater community interest in both prevention and reentry as necessary tools for improving public safety.
Polite realigned the Office’s personnel to better reflect its prosecutorial priorities. In addition to increasing the number of prosecutors handling violent crime matters, Polite established the Office’s first dedicated Public Integrity Unit, responsible for investigating public corruption and civil rights violations. He also strengthened the Office’s National Security Unit, adding six AUSAs to address terrorism, immigration, and environmental matters. Over the past 3.5 years, the Office’s enforcement efforts resulted in, among other matters, convictions of:
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several multi-defendant gang organizations responsible for terrorizing the region through drug trafficking, gun violence, and homicides;
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several high-profile political corruption defendants, including the former Mayor of New Orleans and the former District Attorneys of St. Tammany and St. Charles Parishes;
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various former law enforcement officers responsible for criminal violations of civil rights;
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numerous child pornographers throughout the country, particularly as part of Operation Roundtable;
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clinics, physicians, and medical staff, as part of multi-million-dollar health care fraud schemes;
individual and corporate polluters of the region’s waterways; and
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more human traffickers than in any prior U.S. Attorney’s tenure in the Office’s history, including the country’s first conviction of a motel operator for benefitting from sex trafficking.
Polite also emphasized transparency of the Office’s work. The Office now issues a press release at the charging, conviction, and sentencing phases of every criminal matter. Internally, Polite issued a weekly office report, advising his staff of the tremendous criminal, civil, outreach, and administrative work being done across the Office. In collaboration with the U.S. Probation Office, the Federal Defenders’ Office, and the federal judiciary, the Office also began sharing Pretrial Risk Assessment scores with all parties – defendants, counsel, prosecutors, and judges – in a criminal matter, resulting in a significant decrease in unnecessary pretrial detention.
From the outset of his tenure, Polite focused on reestablishing the Office’s regional presence. Polite regularly traveled throughout all 13 parishes, seeking to improve working relationships and communication with community leaders, educators, students, and law enforcement. Local, state, and federal law enforcement officials from across the region regularly attended training sessions and conferences hosted by the Office.
Under Polite’s leadership, the Office brought to the region two well-known initiatives – the Student Pledge Against Gun Violence and Project LEAD – as means of empowering young people to help reduce violence. Through these programs the Office and its employees engaged with thousands of young people each year. Polite also established the Crescent City Keepers, a ground-breaking organizational mentoring initiative focusing on youth most at risk of becoming homicide victims.
The successful reentry of formerly incarcerated individuals was a notable priority for Polite. In partnership with the New Orleans Business Council, the New Orleans Chamber of Commerce, and numerous local businesses, he created the 30-2-2 Reentry Collaborative, a workforce pipeline for ex-offenders returning to the Southeast Louisiana community. The initiative now offers valuable support for state and federal reentry courts and their participants. In collaboration with the U.S. Probation Office, the Federal Defenders’ Office, and the federal judiciary, the Office developed the LEAP program, where low-level offenders with verified substance addictions receive treatment, counseling, educational resources, and employment training, rather than long-term incarceration. Polite also regularly visited many of the state and federal prison facilities in Louisiana, addressing incarcerated individuals about the potential resources available to assist in their successful return to their communities.
In April 2015, then-Attorney General Lynch appointed Polite to serve on the Attorney General's Advisory Committee ("AGAC"). The AGAC serves as the voice of the 93 U.S. Attorneys across the nation and provides advice and counsel to the Attorney General and other senior leaders in the U.S. Department of Justice on policy, management, and operational issues. In addition, Polite served as a member of the AGAC Subcommittees on Violent and Organized Crime, White Collar Crime, and Civil Rights, as well as the Smart on Crime Working Group.
Polite has received numerous awards for his leadership as U.S. Attorney, including the Leadership in the Law award from New Orleans City Business, the Goldman Criminal Justice Reform award from Court Watch NOLA, and the Community Light in Mentorship award from Each One, Save One. Loyola University Law School awarded him an honorary Doctorate of Laws, and De La Salle High School, where Polite graduated as valedictorian, endowed a scholarship in his name to honor a graduating senior who has excelled in scholarship and leadership.
Polite has become a nationally-recognized public speaker, offering his powerful personal story and voice on issues such as civic empowerment, community trust, and criminal justice reform. He has addressed audiences at Stanford, Yale, Columbia and New York University law schools, countless civic organizations, and most importantly, elementary, secondary, undergraduate, and graduate schools across Louisiana.
Polite and his family will continue to reside in New Orleans. Details regarding his future endeavors, in both the public and private sectors, are forthcoming.
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U.S. Attorney Daly Announces ResignationRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced her resignation, effective immediately.
“It has been a great honor and privilege to serve as Connecticut’s United States Attorney. In fact, it has been a gift of a lifetime. I am extremely proud of the tremendous accomplishments of the men and women of this office during my tenure. I applaud their tireless work holding our most violent offenders accountable, protecting our children and our environment, standing up for our most vulnerable victims, and not hesitating to stand up to the powerful. Together, we also built bridges and trust with communities. I hope all of this work continues to thrive. The people of Connecticut will be in excellent hands with Acting U.S. Attorney Mike Gustafson, and the more than 100 career employees of the office who dedicate themselves to always doing what is right and just.”
First Assistant U.S. Attorney Michael J. Gustafson will be the Acting U.S. Attorney.
The U.S. Attorney’s Office is charged with enforcing federal criminal laws in Connecticut and representing the federal government in civil litigation. The Office is composed of approximately 63 Assistant U.S. Attorneys and approximately 52 staff members at offices in New Haven, Hartford and Bridgeport.
U.S. Attorney Announces ResignationRead the Press Release
Spokane – United States Attorney Michael C. Ormsby, of Spokane, Washington, has announced his resignation effective midnight March 10, 2017.
Ormsby, a graduate of Gonzaga University, had previously practiced with Lukins & Annis, P.S. and K&L Gates for 29 years prior to his appointment. During his tenure as United States Attorney, he served as the co-chair of the Marijuana Working Group and also served on the Native American Issues Criminal Practice Committee. The Criminal Practice and Northern Border Security and Strategies Subcommittees of the Attorney General’s Advisory Committee.
Michael C. Ormsby, stated “It has been an honor to serve in this position and has been the pinnacle of my professional life.” “Eastern Washington is very well served by the attorneys and staff of the U.S. Attorney’s Office.” “I am very proud of the law enforcement partnerships, the work with Tribal communities, and the high quality of legal work done by those in the office.”
The Eastern District of Washington includes twenty Washington counties east of the crest of the Cascade Mountains. The United States Attorney’s Office, with staffed offices in Spokane and Yakima, Washington, has 28 attorneys and is responsible for conducting all criminal and civil litigation in the district involving the United States government.
Two Teenagers, Charged as Adults, Sentenced to Prison Terms for Armed Robbery in Northeast WashingtonRead the Press Release
WASHINGTON – Jabarr Emerson Jr. and Dalonte Stewart, both 16 years old and from Washington, D.C., have been sentenced to prison terms for robbing two people inside their home last September in Northeast Washington, U.S. Attorney Channing D. Philips announced today.
Emerson and Stewart were charged as adults given the serious nature of their crimes. Emerson pled guilty in the Superior Court of the District of Columbia in January 2017, and Stewart in December 2016, to armed robbery for their roles in the crime. Emerson also pled guilty to robbery in a separate case.
The Honorable Maribeth Raffinan sentenced both defendants to four years in prison for the armed robbery. She also sentenced Emerson to an additional 18 months in prison for the second robbery offense. Following their prison terms, both will be placed on five years of supervised release. Emerson was sentenced today and Stewart was sentenced March 9, 2017.
According to the government’s evidence, on Sept. 22, 2016, at about 12:45 a.m., Emerson, Stewart, and an accomplice, all wearing masks, approached a woman in the 1900 block of Lincoln Road NE. One assailant grabbed the victim from behind and placed her in a chokehold while pointing a handgun to her head. The group demanded her money, and she replied that she did not have any. When asked where her money was located, she told them that it was inside her apartment, and the three then forced the victim into her home.
Once inside the apartment, the assailants realized that a man was also present, and subsequently they held him at gunpoint and demanded his money, too. The victims told the assailants that they had a safe and where the key could be found. The assailants retrieved the key, located the safe, opened the safe, and took approximately $400.
Emerson also pled guilty to a second robbery on Aug. 26, 2016, also in Northeast Washington. In this instance, at 2:50 a.m., the victim had just arrived at his home in the unit block of R Street NE. He was walking into his basement apartment when Emerson and a second assailant approached from behind. The victim heard a noise, turned around, and saw Emerson and his cohort, wearing hooded sweatshirts tied around their faces, with long guns that appeared to be sawed-off shotguns. One of the assailants demanded that the victim open the door, get on his knees, and crawl through the door while the gun was placed to the back of his head. Once inside the residence, the two intruders demanded the man’s money and other property. The man gave them $40, an iPhone and several credit cards. The two also took the man’s two laptops, and one also went through the man’s pockets. They then asked if anyone else was home. When they learned that a roommate was in a bedroom, one of the assailants went inside. The roommate woke up when the bedroom lights were turned on, and he saw one of the intruders pointing a sawed-off shotgun at his head. The intruder went through the roommate’s suitcase and pants, walked out of room with two credit cards, and he and his accomplice left the residence.
Emerson and Stewart were arrested in November 2016.
In announcing the sentences, U.S. Attorney Phillips commended the work of those who investigated the cases from the Metropolitan Police Department. He also expressed appreciation for the assistance provided by the Latent Fingerprint Unit of the District of Columbia Department of Forensic Sciences. Finally, he acknowledged the efforts of Assistant U.S. Attorneys Richard Barker and Vivien Cockburn, who prosecuted the matter.
Two Sentenced in Multi-Million Dollar ID Theft, Tax Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – Two Central Falls women were sentenced to 3 years in federal prison today for their roles in a long-running scheme to use the stolen identities of more than 400 individuals on fraudulent tax returns resulting in the theft of more than $2.6 million in fraudulent tax refunds.
Erika Tomasino, 44, was sentenced by U.S. District Court Chief Judge William E. Smith to 36 months in federal prison, having been convicted of one count of conspiracy, one count of theft of government property, three counts of mail fraud, three counts of money laundering and one count of aggravated identity theft. Tomasino was also ordered to pay $1,817,431 in restitution. Tomasino was the bookkeeper and secretary of Juan Vasquez, 53, of Providence, a businessman and the mastermind behind the long-running scheme.
Doris Morel, 44, of Central Falls, a full-time cashier at the former Dominican Supermarket in Pawtucket, the hub of the scheme, was also sentenced today to 36 months in federal prison, having been convicted of one count of conspiracy, one count of theft of government property, four counts of money laundering and four counts of aggravated identity theft. Morel was ordered to pay $1,225,580 in restitution.
On September 27, 2016, a federal court jury convicted the two women after a two-week trial.
The sentences are announced by United States Attorney Peter F. Neronha; Joel P. Garland, Special Agent in Charge, Internal Revenue Service Criminal Investigation; Shelly A. Binkowski, Inspector in Charge of the United States Postal Inspection Service, Boston Division; Brian Deck, Resident Agent in Charge of the United States Secret Service; and Pawtucket Police Chief Paul King.
In November 2016, Chief Judge William E. Smith sentenced Juan Vasquez to 6 years in federal prison to be followed by 3 years supervised release. Vasquez ran the scheme out of his business, the former Dominican Supermarket. Vasquez was ordered to pay restitution to the IRS in the amount of $2,682,042.88. Vasquez pleaded guilty on August 19, 2016, to one count of conspiracy and one count of aggravated identity theft.
Also in November 2016, co-defendant Belkis Vasquez, 50, of Central Falls, was sentenced to serve 3 years probation, the first 8 months in home detention with GPS electronic monitoring, and was ordered to perform 200 hours of community service. Belkis Vasquez was ordered to pay restitution to the IRS in the amount of $325,490. Belkis Vasquez pleaded guilty on August 17, 2016, to one count of conspiracy.
According to the government’s evidence, for nearly four years, beginning in January 2010, the defendants participated in a scheme in which they used stolen personal identifying information of more than 400 individuals, most of whom are residents of Puerto Rico, to file fraudulent tax returns. Fraudulent treasury checks were mailed to various locations in Rhode Island, Massachusetts and New York, and later deposited by the co-conspirators into 26 different bank accounts. The bank accounts were controlled by the co-conspirators or other individuals affiliated with the former Dominican Supermarket.
The government’s evidence showed that the defendants and their co-conspirators withdrew the proceeds of the checks, caused others to withdraw some of the proceeds, transferred the proceeds between accounts, and spent the funds on personal expenses. Additionally, more than $235,000 of fraudulently obtained funds were transferred to a bank in the Dominican Republic.
The cases were prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and John P. McAdams.
The matter was investigated by Internal Revenue Service - Criminal Investigation, with the assistance of the United States Secret Service, United States Postal Inspection Service and the Pawtucket Police Department.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Two Men Plead Guilty to Using Stolen Account Numbers at Metro East WalmartsRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that Samirahdam E. Rolley (25), of Stone Mountain, GA, pled guilty to two credit card fraud charges and a charge of aggravated identity theft yesterday in federal court in East St. Louis, IL. On Monday, February 27, 2017, Michael A. Gordon, also of Stone Mountain, GA, pled guilty to the same charges arising out of the same incidents. Rolley’s and Gordon’s crimes occurred at several Walmart stores in the Metro East over a three-day period in June 2015.
At their plea hearings, both Rolley and Gordon admitted that they travelled from Georgia to Southern Illinois in early June 2015. During their trip, Rolley and Gordon had in their possession numerous gift cards. The magnetic strips of these gift cards had been re-encoded with stolen debit card numbers. Some of these debit account numbers were for the accounts of Southern Illinois residents at a local credit union. Rolley and Gordon used the altered gift cards to make purchases at numerous Metro East Walmarts, including the stores in Cahokia, O’Fallon, Belleville, Highland, Wood River, Collinsville, Glen Carbon, Godfrey, Jerseyville, Waterloo, and Carlyle. The purchases made by Rolley and Gordon were debited to the bank accounts of the victims whose debit account numbers had been embedded on the gift cards.
The sentencing hearings for both Rolley and Gordon are scheduled for June 23, 2017. The charges of using stolen account numbers and using counterfeit credit cards are both punishable by up to 10 years in prison, a $250,000 fine, three years of supervised release, and restitution. The aggravated identity theft charge carries a mandatory sentence of 2 years in prison, which must be served consecutively with any prison sentence imposed for the stolen account number charge.
The investigation is being conducted by the Springfield Division, Fairview Heights Resident Agency, of the Federal Bureau of Investigation ("FBI"). Several Metro East police departments have assisted the FBI with the investigation. Those include the Carlyle, Collinsville, Glen Carbon, Jerseyville, Waterloo, and Wood River Police Departments, as well as the Madison County Sheriff’s Department. Walmart’s Global Security Department has also provided significant assistance in the investigation. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Two Former Executives of iPayment Agree to Plead Guilty in Fraud Scheme that Embezzled over $5 Million from the CompanyRead the Press Release
LOS ANGELES – Two former executives of iPayment, Inc., a payment processor based in Westlake Village, have agreed to plead guilty to participating in a scheme that stole more than $5 million from the company.
Robert Torino, 63, of Norwell, Massachusetts, who was the chief operating officer of iPayment, and Nasir Shakouri, 40, of Westlake Village, who was the company’s senior vice president of sales and marketing, each agreed to plead guilty to federal charges of conspiracy to commit wire fraud.
Torino and Shakouri agreed to plead guilty in plea agreements that were filed this morning in United States District Court. Both defendants have agreed to appear in court and be arraigned on April 14.
Today’s filing of the plea agreements, and the filing of the related charging document known as an information, come at the same time as the United States Securities and Exchange Commission filed a civil action against Torino, Shakouri and others.
iPayment primarily processes credit and debit transactions for small merchants, many of whom are recruited to use iPayment’s services by agents or independent sales offices. Pursuant to contractual obligations, iPayment sometimes paid sales offices a portion of the fees it collected from the merchants recruited by the sales offices, as well as bonuses and referral fees collectively known as residuals.
As part of the criminal conspiracy, Torino, Shakouri and others created fictitious sales offices to unlawfully divert to themselves and others residuals which had been purchased by iPayment as part of a residual buy out.
A second part of the conspiracy involved theft from iPayment through a kickback scheme involving two vendors that provided information technology services to iPayment. As part of an agreement between Torino, Shakouri and another iPayment employee, the outside vendors inflated invoices to iPayment and paid the excess money to a company owned by Torino and Shakouri.
“These defendants used their considerable inside knowledge of their employer’s business practices to skim over $5 million from iPayment’s bottom line,” said United States Attorney Eileen M. Decker. “The stolen money should have gone to the company and its owner.”
“The defendants put greed before their company’s best interest by exploiting iPayment to enrich themselves,” said Deirdre Fike, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “The FBI will continue to work with our partners at the SEC and the IRS to root out such illegal practices and maintain a fair business environment.”
“Over a four-year period, Torino and Shakouri used multiple schemes to receive stolen funds from iPayment,” stated IRS Criminal Investigation’s Acting Special Agent in Charge Anthony J. Orlando. “People who create elaborate schemes that have no purpose other than to mislead others and defraud legitimate businesses run the very high risk of prosecution.”
Once they plead guilty, Torino and Shakouri will each face a statutory maximum penalty of five years in federal prison.
The investigation into Torino and Shakouri was conducted by the Federal Bureau of Investigation and IRS Criminal Investigation.
The case is being prosecuted by Assistant United States Attorneys Monica Tait and Jill Feeney of the Major Frauds Section.
Twenty-One Defendants Charged in Multimillion Dollar International Counterfeit Credit and Debit Card Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – Twenty-one individuals were charged in an indictment for their alleged roles and participation in an international multimillion dollar scheme to steal credit and debit card account information, manufacture counterfeit credit and debit cards, identity theft, and money laundering. The charges are the result of a ten-month investigation by local, state, and federal law enforcement and the Department of State.
United States Attorney Daniel G. Bogden of the District of Nevada; Special Agent in Charge Aaron C. Rouse of the FBI’s Las Vegas Division; Special Agent in Charge Michael Bishop of the Diplomatic Security Service’s Los Angeles Field Office; Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department; and Chief Patrick E. Moers of the Henderson Police Department made the announcement.
“The sophisticated multimillion dollar fraud scheme occurred in Las Vegas, multiple other states, and crossed international borders,” said U.S. Attorney Bogden. “These charges are another successful example of our commitment to working together with local, state, and federal law enforcement partners in the pursuit and prosecution of perpetrators who commit credit card fraud, identity theft, and money laundering.”
“These indictments demonstrate the unified commitment of law enforcement to stop those who target our community through the theft of our personal and financial data. Those who commit such acts should take notice that you will be caught,” said SAC Rouse of the FBI’s Las Vegas Division.
“The Diplomatic Security Service is firmly committed to working with the U.S. Department of Justice and our local law enforcement partners in Nevada to investigate and prosecute all allegations of criminal activity related to passport and visa fraud,” said SAC Bishop of the U.S. Department of State’s Diplomatic Security Service Los Angeles Field Office. “The strong relationship we enjoy with our federal and local law enforcement partners is vital towards ensuring the integrity of U.S. travel documents and protecting greater U.S. interests.”
According to the allegations in the 47-count indictment, from at least Jan. 1, 2013, to about Dec. 9, 2016, the defendants conspired to commit credit and debit card fraud by using “skimmers” placed on automatic teller machines (ATM), cash-out transaction ticket dispensing terminals, such as Global Cash Advance (GCA), and other means to obtain stolen account information. They set-up credit card forgery “laboratories” in residences and hotel rooms to manufacture counterfeit credit and debit cards. Equipment in the laboratories included counterfeit card production systems, thermal dye printers, foil tipping machines, card embossers, and card scanners and encoders.
It is further alleged that the defendants possessed and used the counterfeit credit and debit cards at hotel-casinos, high-end luxury watch, jewelry, and fashion boutiques, electronic retailers, and ATMs throughout Las Vegas, Nevada and in other cities and counties around the country, including: Del Mar, California, Detroit, Michigan, New Orleans, Louisiana, Nassau County, New York, Biloxi, Mississippi, and Atlantic City, New Jersey. They obtained GCA cash advances at casinos, and purchased expensive merchandise, including Rolex watches, ladies’ purses and handbags, and clothing. The purchases would be resold on the black market or online marketplaces. The approximate total loss is over $3.5 million in fraudulent retail purchases and cash advances and withdrawals at hotel-casino properties and other businesses.
In addition, the defendants allegedly possessed and used personal identification of other individuals. The defendants allegedly conspired to commit money laundering and made deposits into bank accounts with money obtained through the fraudulent credit and debit card scheme.
The indictment charges the defendants with conspiracy to commit fraud and related activity in connection with access devices; producing, using or trafficking in a counterfeit access device; using or trafficking in an unauthorized access device; possession of 15 or more counterfeit or unauthorized access devices; possession of access device-making equipment; aggravated identity theft; possession of counterfeit Visa, permit or other document; conspiracy to commit money laundering; and money laundering. The indictment charges the following 21 defendants:
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Lucas Coehlo Paiva Rego, 25
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Fausto Teixeira Martins Neto, 36
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Andre Araujo Rodrigues, 33
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Anderson Clayton Mariano Alcantara, 26
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Carlos Rodrigo Dos Santos Braga, 36
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Bruno Macedo Correia, 26
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Pedro Igor Alves Barbosa, 21
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Vitor Domingues Valentini Dos Reis, 25
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Bruno Dos Santos, 31
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Amysterdan Barbosa Da Silva, 34
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Alexander Lima De Souza, 38
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Francisco Rui De Alencar Mendes Filo, 26
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Davi Dias Fernandes, 26
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Shiro Noburo Naruse, 24
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Hugo Belmino Garces, 27
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Lorenzo Ramon Sala Moura, 39
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Marcelo Araujo, 34
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Henrique Ortolani De Souza Vila Real, 31
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Leonardo Augusto Oliveira Santos, 33
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Rogerio Belarmino Da Silva, 31
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Felipe Augusto Vecale Martins, 38
If convicted, the defendants face a maximum statutory penalty of 20 years in prison. In addition, they face fines in the amount of $250,000.
These charges are the result of cooperative, investigative efforts by the FBI, Department of State’s Diplomatic Security Service, Las Vegas Metropolitan Police Department, and Henderson Police Department. The case is being prosecuted by Assistant U.S. Attorney Patrick Burns.
An indictment is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Three Tax Preparers Indicted for Tax Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that three Kansas City, Mo., tax preparers have been indicted by a federal grand jury for their roles in a tax fraud conspiracy.
Azareia Derseh, 36, his brother, Ananeia Derseh, 39, and Quashanda King, 36, all of Kansas City, were charged in a 23-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, March 7, 2017. That indictment was unsealed and made public following King’s arrest and initial court appearance on Thursday, March 9, 2017.
The federal indictment alleges that Azareia Derseh, Ananeia Derseh and King participated in a conspiracy to prepare fraudulent tax returns from Jan. 30, 2013, to March 5, 2015. Azareia Derseh owned and operated a tax preparation business in the Kansas City metropolitan area, under the names Instant Tax Service and Speedy Tax Service, at various locations. Ananiea was the manager in charge of one of the offices and King was the manager in charge of another office.
According to the indictment, conspirators prepared at least 47 false federal income tax returns, which contained materially false and fraudulent items, for at least 37 clients for tax years 2012, 2013 and 2014. The tax loss based upon the conduct in the conspiracy was $108,621.
Conspirators most often inserted a false Schedule C, the indictment says, wherein the client reported to carry out a business at a modest profit. Often, the return preparers allegedly inflated the gross receipts reported on the Schedule C. Sometimes, the indictment says, the return preparers completely fabricated a Schedule C, reporting income from a fictitious business. The return preparers allegedly added false income to clients’ returns in order to maximize the refundable credits and fraudulently increase clients’ refunds. By including these and other fraudulent items on their client’s tax returns, conspirators allegedly manufactured substantial refunds that the clients would not have been entitled to if the returns had been accurately prepared.
In addition to the conspiracy, the indictment charges Ananeia Derseh with 11 counts of aiding and assisting in the preparation and filing of false and fraudulent tax returns. Azareia Derseh is also charged with four counts of aiding and assisting in the preparation and filing of false and fraudulent tax returns. King is also charged with seven counts of aiding and assisting in the preparation and filing of false and fraudulent tax returns.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation.