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7 March 2017
Former Federal Agent Convicted of Attempting to Entice a ChildRead the Press Release
LAREDO, Texas – A 50-year-old former Border Patrol (BP) agent has admitted he attempted to entice a minor to engage in sexual activity, announced U.S. Attorney Kenneth Magidson. Salvatore Contreras was a former agent stationed in Del Rio.
Contreras had been in contact with an undercover agent with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) whom he believed was the parent of two daughters ages eight and 14. During the conversations, Contreras transmitted numerous images of child pornography. He then travelled from Del Rio to Cotulla believing that he would be engaging in sexual activity with both minor children.
Contreras was arrested upon his arrival in Cotulla on Dec. 2, 2016. Following his arrest, he resigned from BP.
Sentencing will be set a later date. At that hearing, Contreras faces a minimum of 10 years and up to life in federal prison and a possible $250,000 maximum fine.
Customs and Border Protection - Office of Inspector General and HSI conducted the investigation with the assistance of the U.S. Attorney’s Office (USAO) - Western District of Texas. Assistant U.S. Attorney Alfredo De La Rosa of the USAO - Southern District of Texas is prosecuting the case.
Former Executive Director of the Ramapo Local Development Corporation Pleads Guilty to Securities Fraud and Conspiracy ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that N. AARON TROODLER, the former Executive Director of the Ramapo Local Development Corporation (“RLDC”), pled guilty today before U.S. District Judge Cathy Seibel to conspiring with Ramapo Town Supervisor Christopher St. Lawrence to commit securities fraud as a result of a scheme to defraud investors in municipal bonds issued by the RLDC and the Town of Ramapo (the “Town”). This case is believed to be the first conviction for federal securities fraud in connection with municipal bond issuances.
U.S. Attorney Preet Bharara said: “As we said at the time of his arrest, N. Aaron Troodler defrauded both the citizens of Ramapo and thousands of investors around the country, helping to sell over $150 million of municipal bonds on fabricated financials. Today, Troodler has admitted to committing securities fraud. This guilty plea, in what we believe to be the first municipal bond-related criminal securities fraud prosecution, is a big step in policing and bringing accountability to the $3.7 trillion municipal bond market.”
According to the allegations contained in the Superseding Information to which TROODLER pled guilty today and the related Indictment of TROODLER’s co-conspirator, Town Supervisor Christopher St. Lawrence:
As of August 2015, the Town had more than $128 million in outstanding bonds that had been issued for various municipal purposes, while the RLDC, a corporation created and owned by the Town under state law, had issued $25 million in bonds to pay for the construction of Provident Bank Park (now Palisades Credit Union Park), a minor league baseball stadium in Ramapo.
The Indictment and Superseding Information charge that St. Lawrence and TROODLER lied to investors in the Town’s and RLDC’s bonds in order to conceal the deteriorating state of the Town’s finances and the inability of the RLDC to make scheduled payments of principal and interest to holders of its bonds from its own money.
While the fraud predated the construction of the stadium, the Town’s financial problems were caused largely by the $58 million total cost of the stadium. The Town paid more than half of that cost, despite the rejection of the Town’s guarantee of bonds to pay for construction of the stadium in a Town-wide referendum in 2010 and St. Lawrence’s public statements that no public money would be used to pay for the stadium.
The defendants lied to investors primarily by making up false assets in the Town’s General Fund. The General Fund is the Town’s primary operating fund. The accumulated difference over time between how much money the Town receives in taxes and fees and how much it spends in a year is the fund’s balance. The fund balance is a cushion that can be spent during difficult financial times. The size of the fund balance relative to the amount of the fund’s revenue and trends in a town’s General Fund balance over time are the primary indicators of the town’s financial health.
The Indictment alleges that St. Lawrence lied to the RLDC’s bond rating service in January 2013 when he told them in a telephone call that the 2012 fund balance would remain unchanged from the 2011 balance. Immediately after that call ended, St. Lawrence told Town employees “to do [an upcoming] refinancing of the short term debt as fast as possible because . . . we’re going to have to all be magicians to get to some of those numbers.”
The Indictment and the Superseding Information also allege that St. Lawrence and TROODLER told investors in the Town’s and RLDC’s bonds that the RLDC was making the payments on its bonds from its operating revenue, meaning money it was making from its ordinary business of running the baseball stadium and selling condominiums at a development it had built. That was important to investors because it led them to believe that the Town would not have to pay off the RLDC’s $25 million bonds. It also made the RLDC’s bonds look less risky. The RLDC actually made those payments from money TROODLER borrowed from the bank or money TROODLER obtained from the Town at St. Lawrence’s direction.
When the RLDC issued $25 million in bonds to build the stadium building itself in 2011, St. Lawrence inflated the size of the Town’s General Fund by including a false $3.6 million receivable in the General Fund. The Town’s financial condition was important to investors in the RLDC’s bonds because the Town guaranteed the payments of principal and interest on the bonds. Without that fake asset, the General Fund’s balance would have been negative in that year.
In addition, St. Lawrence inflated the General Fund with another fake receivable for $3.08 million from 2010 through 2015. It first went on the Town’s books when the RLDC agreed to buy property known as The Hamlets from the Town for $3.08 million. That sale never closed because the land turned out to be a habitat for rattlesnakes. Rather than take the receivable off the Town’s books – and reduce the size of the General Fund balance by $3.08 million, thereby creating a negative balance – St. Lawrence claimed the receivable had to do with the RLDC’s purchase of another property from the Town that had already taken place. To keep it on the books, St. Lawrence then caused the Town Attorney to tell the Town’s auditors over a period of years that the receivable would be paid back within a year, which was required if the receivable was going to stay in the General Fund. Without this fake receivable alone, the Town’s General Fund balance would have been negative for years.
In May 2013, the Federal Bureau of Investigation (“FBI”) searched Town Hall in connection with this investigation. Less than 10 days later, St. Lawrence inflated another receivable in the General Fund – this one for money from the Federal Emergency Management Agency (“FEMA”) to reimburse the Town for expenses from Hurricanes Irene and Sandy. St. Lawrence claimed that the Town was going to receive $3.145 million from FEMA when the Town hadn’t even submitted those claims to FEMA yet. Without St. Lawrence’s inflation of this receivable alone, the projected General Fund balance for 2012 would have been negative when the Town sold bonds in May 2013.
Finally, the Indictment alleges that St. Lawrence also inflated the General Fund balance by making more than $12 million in transfers from the Town’s Ambulance Fund to the General Fund from 2009 to 2014. The group of properties in Ramapo that pays into the Ambulance Fund is different from the group of properties that pays into the General Fund. Under state law, transfers between funds with different tax bases can only be loans. St. Lawrence told the auditors that the two funds had the same tax base to justify the transfers.
* * *
TROODLER, 42, of Bala Cynwyd, Pennsylvania, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison, and one count of conspiracy, which carries a maximum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
TROODLER is scheduled to be sentenced by Judge Seibel on September 18, 2017, at 3:30 p.m.
The charges against Christopher St. Lawrence contained in the Indictment are merely accusations, and he is presumed innocent unless and until proven guilty.
Mr. Bharara praised the investigative work of the FBI and the Rockland County District Attorney’s Office. He also thanked the U.S. Securities and Exchange Commission for their assistance in the investigation.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys James McMahon, Daniel Loss, and Stephen J. Ritchin are in charge of the prosecution.
Former CEO of Coupon Clearinghouse Sentenced to 10 Years in PrisonRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on March 6, 2017, Thomas C. Balsiger (age: 63) of El Paso, Texas, was sentenced in Federal Court in Milwaukee to 10 years in prison to be followed by 3 years’ supervised release. Mr. Balsiger also was ordered to pay over $65 million in restitution.
In December 2016, following a month-long trial, Mr. Balsiger, the former CEO of the nation’s largest coupon clearinghouse (International Outsourcing Services), was found guilty of 10 counts of wire fraud, one count of wire fraud conspiracy, and one count of conspiring to obstruct justice.
During the sentencing hearing, Senior United States District Court Judge Charles N. Clevert remarked that in his 20 years as a judge he had never seen a more sophisticated fraud scheme as the one designed and executed by Mr. Balsiger. Judge Clevert referred to Mr. Balsiger as a “chameleon” and a “Dr. Jekyll and Mr. Hyde,” who could be positively involved in his community while orchestrating a wide-ranging fraud scheme and directing a relentless effort to obstruct justice. During the sentencing hearing, Judge Clevert noted and adopted factual findings in the pre-sentence report establishing that Mr. Balsiger: (1) provided and directed others to provide false information to law enforcement and grand jury subpoena recipients, (2) coached witnesses to lie, (3) sought to intimidate and prevent witnesses from communicating with law enforcement – including dispatching a private investigator to “menace” a witness, (4) falsely blamed cooperating witnesses for his own criminal conduct, and (5) perjured himself at trial. Judge Clevert also found that Mr. Balsiger’s “unwarranted attacks” and attempts to intimidate and threaten the prosecution team were “beyond the pale” and the “worst abuse” of the judicial process that he had seen during his tenure as a judge.
In rejecting Mr. Balsiger’s request for a probationary sentence, which Judge Clevert found to be “totally inappropriate,” he further noted that Mr. Balsiger’s leadership role in the fraud and obstruction “scream for a period of incarceration.” The Court added that Mr. Balsiger’s “conduct ill-affected the consuming public.” The Court previously noted in a codefendant’s sentencing that this scheme “shook the coupon industry.”
United States Attorney Haanstad noted, “The investigation that ultimately led to the prosecution and conviction of Mr. Balsiger and his codefendants stemmed from a single Milwaukee store owner contacting law enforcement to report that someone had offered her money to use her store’s name to submit fraudulent coupons. Because this store owner did the right thing and contacted law enforcement, investigators ultimately were able to identify multiple coupon fraud rings and expose the wide-ranging fraud scheme designed by Mr. Balsiger.”
FBI Special Agent in Charge Justin Tomoleo said of the sentence: “Through the dedicated work of our Special Agents and staff, the Milwaukee FBI remains committed to protecting Americans from fraudulent schemes that affect everyday life. The widespread grocery coupon fraud, perpetrated by Mr. Balsiger and others, cost our community millions of dollars. We expect this sentencing to serve as a warning to any future offenders looking to defraud the American people.”
This case was prosecuted by Assistant United States Attorneys Richard G. Frohling, Kelly B. Watzka, Stephen A. Ingraham, and Zachary J. Corey. The case was investigated by the Federal Bureau of Investigation.
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For additional information contact:
Public Information Officer Dean Puschnig (414) 297-1700
Floridian Charged with Armed Robbery of Southwest Pennsylvania BanksRead the Press Release
PITTSBURGH – A Florida resident has been indicted by a federal grand jury in Pittsburgh on charges of violating federal robbery laws, Acting United States Attorney Soo C. Song announced today.
The four-count indictment named Robert Stiver, age 42, as the sole defendant.
According to the indictment, on November 2, 2016, Stiver used a firearm to rob the Allegheny Valley Bank in Pittsburgh, Pennsylvania, of $2,063 Stiver also used a firearm to rob the First Commonwealth in Harmarville, Pennsylvania, of $5,372.
The law provides for a maximum sentence of not more than 25 years in prison, a fine of not more than $250,000, or both for each armed robbery count, and a maximum sentence of not more than 20 years in prison, a fine of not more than $250,000, or both for each robbery count. . Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Timothy M. Lanni is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Shaler Township Police Department, and the Harmar Townsip Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Florida Man Sentenced on Child Exploitation ChargeRead the Press Release
Lynchburg, VIRGINIA – A Miami, Florida man, who exploited minor girls via the internet and extorted the to send him nude pictures of themselves, was sentenced today in the United States District Court for the Western District of Virginia in Lynchburg, Acting United States Attorney Rick A. Mountcastle announced.
Lenny Baldwin Jr., 22, of Miami, previously pled guilty to one count of persuading, inducing, enticing or coercing a minor into producing child pornography. The defendant was sentenced today, as per the terms of his plea agreement, to10 years in federal prison and lifetime supervision upon his release from prison.
According to evidence presented at previous hearings, Baldwin used the internet to produce images of child pornography by soliciting girls known to him to be minors to send him naked photographs of themselves. Baldwin then attempted to extort additional nude photographs from the minor girls by threatening to “expose them” online, meaning he would publically post their naked photographs if they didn’t send him more nude pictures of themselves.
Evidence collected during the course of the investigation showed the Baldwin was using the internet to solicit minor girls across multiple jurisdictions and his online account records show that he attempted to get naked photographs from multiple minor girls on a frequent basis.
The investigation of the case was conducted by Homeland Security Investigations, the Appomattox County Sheriff’s Department. Assistant United States Attorney Ronald M. Huber prosecuted the case for the United States.
Final Defendant Pleads Guilty in Case Involving Large Stolen Property Fraud RingRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced this morning, in federal court in Benton, Illinois, that Angel Speed, 26, pled guilty to federal crimes arising from his participation in a large stolen property fraud ring that operated in the Metro East and other locations. With Speed’s guilty plea this morning, all fifteen defendants charged in the case have now pled guilty.
The leader of the conspiracy/stolen property ring was co-defendant Jason J. Parmeley, 42, formerly of O’Fallon, MO. At his plea hearing on December 6, 2016, Parmeley admitted that he used the internet to obtain credit account numbers that individuals and businesses had with retail stores, such as Home Depot, Lowes, Menards, and rental stores, such as SunBelt Rentals. Using this information, Parmeley placed orders with the stores in the names, and under the credit accounts, of the individuals and businesses. The items Parmeley ordered frequently consisted of appliances, computers, expensive tools, and construction equipment. Parmeley further admitted that, after he placed the orders, he dispatched drivers to go to the stores and pick up the items. The items were then sold at prices substantially below retail. The profits were wire transferred to Parmeley in Mexico. Parmeley lived in Mexico and controlled the fraud ring from that country.
In late August of 2015, Mexican Immigration Authorities deported Parmeley from Mexico. Parmeley has been held in federal custody since that time.
Today, Angel Speed admitted that he assisted Parmeley with the operation of the conspiracy in Mexico. Speed assisted Parmeley with computer work necessary to operate the scheme, relayed instructions to the drivers, and assisted in laundering the profits of the scheme. With regard to the money laundering, Speed admitted that he used a false name to pick up profits of the fraud scheme that had been wire transferred to Parmeley in Mexico by other conspirators in the United States.
To date, six defendants have been sentenced to prison for their roles in the conspiracy. On June 7, 2016, James D. Litchfield, 59, owner of Big Jim’s Autorama in Madison, IL, was sentenced to 3 years in prison, and his brother, Ryan P. Litchfield, 37, of O’Fallon, MO, was sentenced to 1 year in prison. Both of the brothers had admitted to receiving large quantities of the stolen property. On October 4, 2016, Shannan M. Flora, 42, of O’Fallon, MO, and Rigoberto Gutierrez, 28, of Compton, CA, were both sentenced to 15 months in prison. Flora performed a wide variety of tasks for the conspiracy, including arranging sales of stolen goods. Gutierrez coordinated shipments of stolen goods in California. On October 12, 2016, Russell J. Witt, 34, of Mount Clemens, MI, was sentenced to 12 months in prison. Witt worked as a driver for the conspiracy for over a year. On December 13, 2016, Sean A. Shields, 48, of Ozark, MO, was also sentenced to 12 months in prison. Shields owned a store in Ozark, MO, and purchased large quantities of the stolen merchandise.
Five other defendants were sentenced to terms of probation. They are: Nicholas A. Brockman, 20, of Wentzville, MO; Benedict G. Pellerito, 56, of Troy, MO; Bryce E. Atkinson, 22, of Lake Saint Louis, MO; Alice J. Hembree, 44, of Moscow Mills, MO; and Tony G. Robertson,
45, of O’Fallon, MO. Brockman, Pellerito, Atkinson, and Robertson all worked as drivers for the conspiracy. Hembree performed administrative and bookkeeping functions for the fraud ring.
The four remaining defendants will be sentenced on the following dates: (1) March 28, 2017 – Steven J. Belcher, 45, of St. Charles, MO; (2) March 30, 2017 – Jesse S. Urias, 38, of Compton, CA; (3) May 4, 2017 – Jason J. Parmeley, 42, formerly of O’Fallon, MO; and (4) June 22, 2017 – Angel Speed, 26.
The investigation is being conducted by agents from the St. Louis Division of the Federal Bureau of Investigation ("FBI"). The FBI has received substantial assistance from many state and local police departments in numerous jurisdictions, including the Metro East Auto Theft Task Force and the California Highway Patrol. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.
Elkins man indicted for manufacturing and using counterfeit moneyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Anthony Francis Silvester, III, 37, of Elkins, West Virginia, was charged by a grand jury sitting in Clarksburg in a five-count indictment with making and possessing counterfeit money, Acting United States Attorney Betsy Steinfeld Jividen announced.
The indictment charges that Silvester passed several counterfeit bills between August and November 2016 at various businesses in Elkins, West Virginia. The indictment also alleges that Silvester had in his possession $2,300 in counterfeit bills.
If convicted, Silvester faces up to 20 years and a $250,000 fine for each violation.
Assistant U.S. Attorney Sarah W. Montoro is prosecuting the case on behalf of the government. The United States Secret Service, the West Virginia State Police, and the Elkins Police Department are investigating the case.
An indictment is merely an accusation and the defendant is presumed innocent until proven guilty.
Eight charged with mail fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – Eight individuals have been charged with federal mail fraud as a result of an investigation in three North Central West Virginia counties, according to Acting United States Attorney Betsy Steinfeld Jividen.
Indictments were handed down today alleging that a group of individuals from West Virginia conspired with one another to conduct mail fraud in order to file false insurance claims totaling approximately $249,000 for staged vehicular accidents in Harrison, Taylor and Marion Counties from January 2012 to August 2014.
The defendants are:
• Dallas Lewis, Clarksburg, 55, Clarksburg, WV
• Martin Stoneking, 25, Fairmont, WV
• Charles Bonner, 34, Morgantown, WV
• Bryce Martin, 26, Fairmont, WV
• Eric Warner, 34, Clarksburg, WV
• Chasity Costilow, 38, Clarksburg, WV
• Robin Stoneking, 56, Fairmont, WV
• Michael Sine, 34, Fairmont, WVAssistant U.S. Attorney Andrew R. Cogar is handling the cases on behalf of the government. The West Virginia Insurance Commission Office of Inspector General and the United States Postal Inspection Service are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
District Man Pleads Guilty to Robbery and Obstruction of JusticeRead the Press Release
WASHINGTON – Joseph N. Davenport, 45, of Washington, D.C., has pled guilty to charges of robbery and obstruction of justice for beating and robbing an acquaintance at her apartment, and then trying to get his girlfriend to lie about his whereabouts at the time of the attack, U.S. Attorney Channing D. Phillips announced today.
The plea took place on March 6, 2017, before the Honorable Zoe Bush in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for an agreed-upon sentence of nine years in prison. Judge Bush scheduled a hearing for June 2, 2017, to determine whether the plea and sentence will be accepted.
According to the government’s evidence, in the early morning hours of May 1, 2014, Davenport went to the Southeast Washington apartment of a female acquaintance who lived in the same complex as Davenport’s then-girlfriend. He told the woman that his girlfriend had put him out of her apartment and that he needed a place to stay. He asked whether he could spend the night sleeping on the victim’s couch. When the victim told Davenport “no,” he became enraged, punched her in the face, and knocked her onto a glass-topped table, which shattered as she fell through it. He then grabbed her debit card and other property and fled.
An arrest warrant was issued and Davenport was arrested on May 6, 2014. A few days later, he called his then-girlfriend from the District of Columbia Jail, where all such calls are recorded. During that call, Davenport tried to get his girlfriend to create a false alibi for him for the time during which he was beating and robbing the other woman. She refused to do so. Prosecutors subpoenaed Davenport’s jail calls and this call became the basis of the obstruction of justice charge to which Davenport pleaded.
In announcing the plea, U.S. Attorney Phillips praised the work of officers from the Seventh District of the Metropolitan Police Department (MPD) and from a joint task force comprised of members of the MPD and U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. He also expressed appreciation for the work of the Special Police Officers from the apartment complex, who assisted in the investigation of the case.
He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Colleen M. Kennedy, Special Counsel for Mental Health Litigation; Assistant U.S. Attorney Silvia Gonzalez Roman, of the Office’s Special Proceedings Division; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Paralegal Specialists D’Yvonne Key, Donhue Troy Griffith and Brenda C. Williams; Victim/Witness Advocate Lezlie Richardson; Criminal Investigators Melissa Matthews and Nelson Rhone; Investigative Analysts Shannon Alexis, William Hamann, and Sharon Johnson; Information Technology Specialist Aneela Bhatia, and Legal Intern Emma McArthur. Finally, U.S. Attorney Phillips commended the work of Assistant U.S. Attorneys Mark Aziz, Kenechukwu Okocha and Peter V. Taylor, who investigated and prosecuted this case.
District Man Pleads Guilty to Charges in Two Robberies of Taxicab DriversRead the Press Release
WASHINGTON - Johnathan Waddell, 18, of Washington, D.C., pled guilty today to charges stemming from two robberies of taxicab drivers that took place within a one-week period in December of 2016, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Acting Chief of the Metropolitan Police Department (MPD).
Waddell pled guilty in the Superior Court of the District of Columbia to one count of armed robbery and another count of attempted robbery. The Honorable Kimberley S. Knowles
scheduled sentencing for May 15, 2017.
According to the government’s evidence, on Dec. 12, 2016, at approximately 6 p.m., Waddell entered a cab at Union Station in Washington, D.C., and requested that the driver take him to 300 Evarts Street NE. When they arrived at the intersection of Third and Evarts Streets, Waddell said he would get out there. The taxicab driver turned around to tell Waddell how much money was owed. At that point, Waddell brandished a handgun and demanded money. The driver handed him his wallet, and Waddell fled the scene with between $100 and $200.
The second robbery took place on Dec. 18, 2016, at approximately 5:30 p.m. Once again, Waddell entered a cab at Union Station and asked to be taken to 300 Evarts Street. When they arrived at Third and Evarts Streets, Waddell had his hands in his pockets and acted as though he aimed a weapon. He told the driver: “Give me your money.” The driver took about $16 from his pocket and turned it over, and Waddell once again fled the scene.
Detectives with the Metropolitan Police Department reviewed surveillance footage from Union Station and noticed that the riders from both robberies appeared to be the same person. Further investigation led to Waddell’s arrest on Dec. 21, 2016. He has been in custody ever since.
In announcing the plea, U.S. Attorney Phillips and Acting Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the work of Assistant U.S. Attorneys Michael J. Christin, Vanessa Goodwin, and Shana L. Fulton, who investigated and prosecuted the case.
Crips Gang Member Indicted for 2014 MurderRead the Press Release
Earlier today, a three-count indictment was unsealed in the United States District Court for the Eastern District of New York charging Tyvon Bannister, also known as “Turtle,” with Murder In-Aid-Of Racketeering, as well as related firearms charges, for the 2014 murder of Rayvon Henriques. The defendant, who faces a mandatory sentence of life imprisonment if convicted of the top charge, was arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD).
“This indictment sends a message to all gang members in the Cypress Hills Houses and beyond – we will be relentless in our pursuit of violent gang members who have besieged communities like Cypress for far too long,” stated U.S. Attorney Capers. “My Office, along with our federal partners and the NYPD are committed to reducing shootings and saving lives through a coordinated effort to target the most violent offenders who are doing harm in our communities.”
“It’s hard to fathom what possesses someone to think violent acts promote their reputation, and killing someone is just another way of doing that. The criminal gangs that operate in areas of our community use violence as their calling card, and create an atmosphere of fear. The FBI and our law enforcement partners will do all we can to go after those who put so little value on human life,” stated FBI Assistant Director-in-Charge Sweeney.
“This long-term, coordinated investigation demonstrates the impact of precision policing: targeting those who engage in violence,” said Police Commissioner O'Neill. “The NYPD will not tolerate the East New York community being subjected to continued violence, as detailed in today's indictment. I commend the continued diligence of the detectives, agents, and prosecutors whose work resulted in today's charges.”
As detailed in the indictment and a detention memorandum filed by the government, Bannister is a member of the Cypress Gangsta Crips (CGC), a subset of the Crips street gang that is comprised of individuals residing in and around the Cypress Hills Houses, a large New York City Housing Authority complex in East New York, Brooklyn (Cypress). For years, Cypress has been besieged by gang- and drug-related violence arising largely from a long-standing feud between the CGC, who hail from the “Backside” section (buildings on Linden Avenue) and “Teamside” section of Cypress (buildings on the western end of Sutter Avenue and the northern end of Fountain Avenue), and the Bloods-affiliated gang members who reside in the “Frontside” section of Cypress (buildings on the eastern end of Sutter Avenue). CGC members and associates earn money by trafficking in drugs and firearms and committing robberies, and commit acts of violence to promote their reputation and to protect their enterprise.
On July 8, 2014, Bannister and another gang member allegedly shot and killed Henriques in front of a nightclub in East New York. Henriques, who was 26 years old at the time of his death, was targeted because of his association with the CGC’s chief rivals, the Bloods-affiliated gang members from the “Frontside” section of Cypress.
The indictment is the result of a long-term investigation initiated by the FBI, the NYPD, and the U.S. Attorney’s Office in 2015 in response to gang-related violence in and around Cypress. The investigation has resulted in charges against 21 defendants for drug trafficking, illegal weapons possession, robbery, and murder.
The charges announced today are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Margaret E. Gandy, Andrey Spektor, and David Gopstein are in charge of the prosecution.
The Defendant:
TYVON BANNISTER
Age: 23
Brooklyn, New York
E.D.N.Y. Docket No. 17-CR-116 (BMC)
Court Orders Return Preparation Business Owner to Pay Nearly $950,000 to the United States for Preparing Fraudulent ReturnsRead the Press Release
A federal court in Orlando, Florida, has permanently barred Jason Stinson, of Longwood, Florida, from preparing federal tax returns for others and from owning or operating a tax return preparation business, following a six-day bench trial held in 2016, the Justice Department announced today. The civil order, signed by Judge Anne C. Conway of the U.S. District Court for the Middle District of Florida, also requires Stinson to disgorge to the United States $949,952.47 of funds he received from “improper and fraudulent tax return preparation.”
The court determined that Stinson owns a company called “Nation Tax Services” and had stores in four states: Birmingham and Fairfield, Alabama; St. Petersburg and Tampa, Florida; Albany and Augusta, Georgia; and Greenville and Raleigh, North Carolina. Stinson’s stores, the court found, targeted “underprivileged, undereducated poor people and earned income credit claims.”
The Earned Income Tax Credit (EITC) is a refundable tax credit for working people with low to moderate income. Eligibility depends on factors such as the amount of income, filing status, and the amount of dependents. To illustrate, the court noted that customers with earned income between $13,050 and $17,100 in tax year 2012 could receive the maximum EITC. The court found that Stinson falsified information on his customers’ returns to claim the maximum EITC amount by: “claiming bogus dependents, fabricating unreimbursed employee expenses and charitable contributions, and fabricating business income and expenses.” The court found that in many instances Stinson and his preparers fraudulently lowered a customer’s taxable income by claiming false unreimbursed business expenses in large amounts, at times more than half of what the customer earned in a given year. According to the court’s decision, “it is illogical for an individual making $35,000 a year to spend as much as half of their yearly income, around $16,000, on unreimbursed business expenses.”
Stinson’s stores charged customers in excess of $600 to prepare a single tax return, even as much as $999, sometimes without telling the customer, the court determined. Moreover, the court found that Stinson’s practice was to take his fees out of his customer’s refund, rather than charge fees upfront, meaning that “a larger refund was better for the client and better for Stinson.” Based upon the pattern of abusive claims made by Stinson and his preparers, the court ordered Stinson to pay the United States nearly $950,000 in fees he received.
“The Tax Division works with the Internal Revenue Service (IRS) to protect taxpayers from unscrupulous return preparers,” said Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. “Court decisions like this show that those who prepare false tax returns will be stopped and will not profit from their fraudulent conduct.”
Acting Assistant Attorney General Hubbert thanks the Tax Division attorneys assigned to the case, Daniel Applegate, Sean Green, Alison Yewdell, Steven Woodliff, Jared Wiesner, and Joshua Levine, and the revenue agents of the IRS—Small Business/Self-Employed Division, who conducted the investigation.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Court Orders Return Preparation Business Owner to Pay Nearly $950,000 to the United States for Preparing Fraudulent ReturnsRead the Press Release
WASHINGTON — A federal court in Orlando, Florida, has permanently barred Jason Stinson, of Longwood, Florida, from preparing federal tax returns for others and from owning or operating a tax return preparation business, following a six-day bench trial held in 2016, the Justice Department announced today. The civil order, signed by Judge Anne C. Conway of the U.S. District Court for the Middle District of Florida, also requires Stinson to disgorge to the United States $949,952.47 of funds he received from “improper and fraudulent tax return preparation.”
The court determined that Stinson owns a company called “Nation Tax Services” and had stores in four states: Birmingham and Fairfield, Alabama; St. Petersburg and Tampa, Florida; Albany and Augusta, Georgia; and Greenville and Raleigh, North Carolina. Stinson’s stores, the court found, targeted “underprivileged, undereducated poor people and earned income credit claims.”
The Earned Income Tax Credit (EITC) is a refundable tax credit for working people with low to moderate income. Eligibility depends on factors such as the amount of income, filing status, and the amount of dependents. To illustrate, the court noted that customers with earned income between $13,050 and $17,100 in tax year 2012 could receive the maximum EITC. The court found that Stinson falsified information on his customers’ returns to claim the maximum EITC amount by: “claiming bogus dependents, fabricating unreimbursed employee expenses and charitable contributions, and fabricating business income and expenses.” The court found that in many instances Stinson and his preparers fraudulently lowered a customer’s taxable income by claiming false unreimbursed business expenses in large amounts, at times more than half of what the customer earned in a given year. According to the court’s decision, “it is illogical for an individual making $35,000 a year to spend as much as half of their yearly income, around $16,000, on unreimbursed business expenses.”
Stinson’s stores charged customers in excess of $600 to prepare a single tax return, even as much as $999, sometimes without telling the customer, the court determined. Moreover, the court found that Stinson’s practice was to take his fees out of his customer’s refund, rather than charge fees upfront, meaning that “a larger refund was better for the client and better for Stinson.” Based upon the pattern of abusive claims made by Stinson and his preparers, the court ordered Stinson to pay the United States nearly $950,000 in fees he received.
“The Tax Division works with the Internal Revenue Service (IRS) to protect taxpayers from unscrupulous return preparers,” said Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. “Court decisions like this show that those who prepare false tax returns will be stopped and will not profit from their fraudulent conduct.”
Acting Assistant Attorney General Hubbert thanks the Tax Division attorneys assigned to the case, Daniel Applegate, Sean Green, Alison Yewdell, Steven Woodliff, Jared Wiesner, and Joshua Levine, and the revenue agents of the IRS—Small Business/Self-Employed Division, who conducted the investigation.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Convicted Sex Offender from Albuquerque Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Randal Gordon Paul, 47, of Albuquerque, N.M., entered a guilty plea this morning to a federal child pornography charge. Under the terms of his plea agreement, Paul will be sentenced to ten years of imprisonment followed by a lifetime of supervised release. Paul also will be required to pay restitution in the amount of $1,000 to any victim who is identified and requests restitution, and to register as a sex offender.
Paul was arrested on Dec. 2, 2016, on a criminal complaint charging him with possessing and distributing visual depictions of minors engaged in sexually explicit activity from June 2015 through Nov. 2016, in Bernalillo County, N.M. According to the criminal complaint, the investigation into Paul began in Nov. 2014, after an email address belonging to Paul, was used to register an account with a website known to show images of minors engaged in sexually explicit conduct. Further investigation revealed that Paul was a registered sex offender with two prior convictions; the first in 1996 for lewd and lascivious acts with a child under 14, and the second in 1998 for aggravated sexual abuse. On Nov. 16, 2016, law enforcement searched Paul’s residence and found a computer containing a video and at least 30 images of child pornography.
During today’s change of plea hearing, Paul pled guilty to a felony information charging him with possessing child pornography between Dec. 2012 and Nov. 2016, in Bernalillo County. In his plea agreement, Paul admitted downloading child pornography from the internet and saving them on electronic devices, including a desktop computer.
Paul has been in federal custody since his arrest. He remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the New Mexico Regional Computer Forensic Laboratory. Assistant U.S. Attorney Holland S. Kastrin is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit http://www.justice.gov/psc/.
Choctaw Men Sentenced to Prison for Second Degree MurderRead the Press Release
Jackson, Miss – Davian Wilson, a/k/a "Chaba", 22, and James Bell, Jr, 21, both from Choctaw, Mississippi, were sentenced on March 6, 2017 by U.S. District Judge Daniel P. Jordan III, for their roles in a 2014 murder, U.S. Attorney Gregory K. Davis announced today.
Wilson, who was found guilty of second degree murder following a four-day trial in December, 2016, was sentenced to 400 months in federal prison followed by five years of supervised release. He was also ordered to pay a $50,000 fine.
Bell, who entered a guilty plea to second degree murder in July, 2016, was sentenced to 180 months in prison followed by five years of supervised release. He was also ordered to pay a $1,500 fine.
The testimony at Wilson’s trial showed that, following an earlier altercation with the victim, Wilson asked several individuals to assist him in locating and assaulting the victim. Upon locating the victim, Wilson and his co-defendant, James Bell, Jr., stabbed the victim over fifty times, thereby causing his death.
The case was prosecuted by Assistant United States Attorneys Patrick Lemon and Jennifer Case and was investigated by the Federal Bureau of Investigation and the Choctaw Police Department.
Cambria County Man Charged with Lying to Federal Firearms DealerRead the Press Release
JOHNSTOWN, Pa. – A resident of Sidman, Pa. was indicted by a federal grand jury in Johnstown on a charge of false statement to a federally licensed firearms dealer, Acting United States Attorney Soo C. Song announced today.
The indictment named Jesse Edward Lester, 35, of Sidman, Pa., as the sole defendant.
According to the indictment presented to the court, on Sept. 10, 2016, in connection with the purchase of a firearm, Lester knowingly made a false statement in an effort to deceive Sporting Goods Discounters, a federally licensed firearms dealer. The indictment alleges Lester represented to Sporting Goods Discounters that he was the actual buyer of the firearm, when, in fact, he was purchasing the firearm on behalf of someone else.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines, is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Laurel Highlands Resident Agency, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bedford County Woman Charged with Converting Government Funds for Her Own UseRead the Press Release
JOHNSTOWN, Pa. - A resident of Saxton, Pa., has been indicted by a federal grand jury in Johnstown on a charge of conversion of government funds, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Connie Williams, 59, of Saxton, Pa.
According to the indictment presented to the court, from Sept. 11, 2013, to Jan. 14, 2015, Williams did receive and convert falsely to her own use a total of $26,118, which represents approximately 17 separate Social Security Administration benefit payments made to her to which she was not entitled.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Attorney Pleads Guilty for Role in Multi-Million Dollar Scheme to Fraudulently Obtain Copyright Infringement Settlements from Victims Who Downloaded Pornographic MoviesRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of JOHN L. STEELE, 45, for his role in a multi-million dollar scheme to fraudulently obtain payments to settle sham copyright infringement lawsuits by lying to state and federal courts throughout the country. On March 6, 2017, STEELE pleaded guilty to conspiracy to commit mail fraud and wire fraud and conspiracy to commit money laundering before U.S. District Judge Joan N. Ericksen of the District of Minnesota. Sentencing has not yet been scheduled.
“John Steele and his co-defendant devised an egregious fraudulent scheme by abusing their positions of trust and exploiting our justice system,” said U.S. Attorney Andrew Luger. “My Office will continue working diligently to ensure that criminals who engage in corrupt and fraudulent behavior are held responsible for their actions, regardless of their position or profession.”
According to STEELE’S admissions in the plea, between 2011 and 2014, STEELE and co-defendant PAUL HANSMEIER, both practicing lawyers, executed a scheme to fraudulently obtain more than $6 million by threatening copyright lawsuits against individuals who supposedly downloaded pornographic movies from file-sharing websites. STEELE admitted that he and HANSMEIER created a series of sham entities to obtain copyrights to pornographic movies – some of which they filmed themselves – and then uploaded those movies to file-sharing websites like “The Pirate Bay” in order to lure people to download the movies. STEELE and HANSMEIER then filed bogus copyright infringement lawsuits that concealed both their role in distributing the movies, and their personal stake in the outcome of the litigation. After fraudulently inducing courts to give him and co-defendants the power to subpoena Internet service providers and to thereby identify the subscriber who controlled the IP address used to download the movie, STEELE and HANSMEIER used extortionate tactics such as letters and phone calls that threatened victims with enormous financial penalties and public embarrassment unless they agreed to pay a $3,000 settlement fee.
To distance themselves from the specious lawsuits and any potential fallout, STEELE admitted that he and co-defendants created and used Prenda Law, among other law firms, to pursue their claims.
According to the plea, after various courts began to restrict the defendants’ ability to sue multiple individuals in the same copyright lawsuit, the defendants changed their tactics and began filing lawsuits falsely alleging that computer systems belonging to their sham clients had been hacked. To facilitate their phony “hacking” lawsuits, STEELE and HANSMEIER recruited “ruse defendants,” who had been caught downloading pornography from a file-sharing website, to be sued in exchange for STEELE and HANSMEIER waiving their settlement fees while pursuing claims against their supposed “co-conspirators.”
According to the plea, as courts began to uncover the defendants’ unscrupulous litigation tactics, judges began denying the defendants’ requests to subpoena ISPs, dismissing lawsuits, accusing STEELE and co-defendants of deceptive and fraudulent behavior and imposing sanctions against STEELE and his associates. For example, on May 6, 2013, the U.S. District Court for the Central District of California issued an order imposing sanctions against the defendants. In total, STEELE and co-defendants obtained approximately $6 million from the fraudulent copyright lawsuits.
PAUL R. HANSMEIER, of St. Paul, Minnesota, was charged as a co-defendant in an indictment filed on December 16, 2016. The charges contained in the indictment against him are merely accusations, and he is presumed innocent unless and until proven guilty.
FBI and IRS-CI are investigating the case. Assistant U.S. Attorneys Benjamin Langner and David Maclaughlin of the District of Minnesota and Senior Trial Counsel Brian Levine of the Criminal Division’s Computer Crime and Intellectual Property Section and are prosecuting the case.
Defendant Information:
JOHN L. STEELE, 45
Unknown, Pennsylvania
Convicted:
- Conspiracy to commit mail fraud and wire fraud, 1 count
- Conspiracy to commit money laundering, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Alleged Drug Courier from Detroit Arrested on Federal Charge of Attempting to Smuggle Cocaine Through LAXRead the Press Release
LOS ANGELES – A 28-year-old woman arrested early this morning at Los Angeles International Airport has been charged with trying to smuggle at least a kilogram of cocaine to her hometown of Detroit.
Kennsha Mason, 28, was arrested by special agents with the Drug Enforcement Administration after boarding a Spirit Airlines flight. Mason is scheduled to make her first court appearance this afternoon United States District Court.
A criminal complaint filed this morning alleges the narcotics were discovered in Mason’s luggage after she checked in for a flight bound for Baltimore, which was a layover on a trip to Detroit. After seeing something suspicious in one of the bags during an image scan, the Transportation Security Administration inspected the bag, and discovered three individually wrapped items that were vacuum sealed and wrapped with a layer of carbon paper.
Los Angeles Airport Police responded to the scene, located Mason on her Spirit Airlines flight, and escorted her off the airplane. During a subsequent interview, Mason admitted to DEA special agents that she had previously transported drugs from Los Angeles to Detroit on four or five occasions, and that she was paid $3,500 each time she transported narcotics to Detroit. During the interview recounted in the affidavit, Mason stated that she was working for an individual in Detroit who purchased Mason’s airline tickets and directed Mason to a residence in Pasadena, where she obtained the drugs to be delivered to Detroit.
“Our nation’s air travel system is designed to carry people to see loved ones and conduct business – not as a means to smuggle narcotics or other contraband,” said United States Attorney Eileen M. Decker. “We actively work to interdict drug shipments as part of our mission to protect our critical infrastructure. Those who threaten that infrastructure will be subject to vigorous prosecution.”
The complaint charges Mason with possession with the intent to distribute a controlled substance. If convicted, she faces a statutory maximum sentence of 20 years in federal prison.
“The trend of criminal organizations utilizing the Los Angeles International Airport to distribute narcotics nationwide is on the rise,” said DEA Special Agent in Charge Steve Comer. “Every time an illegal substance is smuggled onto a commercial airliner, it presents an unacceptable compromise to passenger safety. We’ll continue to work closely with our law enforcement partners to mitigate these threats and bring the violators to justice.”
Mason is charged in relation to only one of the three packages recovered from her luggage. Authorities are in the process of testing the other two packages to confirm the presence of cocaine. The total gross weight of all three packages was approximately four kilograms, which is more than eight pounds.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The DEA Los Angeles International Airport Narcotics Task Force, an inter-agency task force based at LAX, is conducting this investigation. The Task Force is charged with providing a coordinated law enforcement effort to target airport/airline internal criminal enterprises that use the aviation system to transport large amounts of illicit drugs throughout the United States, and throughout the world.
In addition to the DEA, the Task Force is made up of representatives from the Federal Bureau of Investigation, the Los Angeles Airport Police, the Los Angeles Police Department and the Los Angeles County Sheriff’s Department. The Task Force also works closely with the United States Customs and Border Protection and the Transportation Security Administration.
The case against Mason is being prosecuted by Assistant United States Attorney Reema M. El-Amamy of the Organized Crime Drug Enforcement Task Force.
Albuquerque Man Pleads Guilty to Federal Bank Robbery ChargeRead the Press Release
ALBUQUERQUE – Kenneth Columbus Burwell, 54, of Albuquerque, N.M., pled guilty this morning in federal court to a bank robbery charge. Under the terms of his plea agreement, Burwell will be sentenced to 46 months in prison followed by three years of supervised release.
Burwell was arrested in Nov. 2016, on a criminal complaint charging him with robbing the US Bank branch located at 3000 Central Ave. SE in Albuquerque on Oct. 14, 2015. Burwell subsequently was indicted on Nov. 15, 2016, and charged with bank robbery.
During today’s proceedings, Burwell pled guilty to the indictment, and admitted that on Oct. 14, 2015, he robbed the US Bank branch by approaching the bank teller, demanding money, and threatening to shoot the teller if she pulled the alarm. Burwell further admitted that after threatening the teller, he pulled his shirt tight showing an impression of a gun-shaped item concealed beneath his clothing. Burwell remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney George C. Kraehe is prosecuting the case.
'Buckeye Bandit’ Pleads Guilty to 8 Armed RobberiesRead the Press Release
COLUMBUS – Ikechi W. Emeaghara, 27, of Columbus, pled guilty today to eight counts of armed bank robbery. Emeaghara is the armed robber dubbed as the “Buckeye Bandit” by law enforcement.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office; Columbus Police Chief Kim Jacobs; Franklin County Sheriff Dallas Baldwin; Delaware County Sheriff Russell L. Martin; Ohio State University Police Chief Craig Stone; Worthington Police Chief Jerry L. Strait, Jr.; Upper Arlington Police Chief Tracy Hahn and Gahanna Police Chief Dennis Murphy announced the guilty pleas entered today.
According to court documents, Emeaghara brandished a dangerous weapon and demanded cash from bank teller’s drawers on the following occasions:
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October 31, 2013 at the Wesbanco Bank on South Stygler Road in Gahanna
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November 30, 2013 at the Cooper State Bank on West 5th Avenue in Columbus
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December 6, 2013 at the Wesbanco Bank on South Stygler Road in Gahanna
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July 9, 2014 at the Smart Federal Credit Union on North High Street in Columbus*
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January 12, 2015 at the Cooper State Bank on Sawmill Road in Columbus*
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April 26, 2015 at the Cooper State Bank on Sawmill Road in Columbus*
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March 17, 2016 at the First Merit Bank on East Powell Road in Powell
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October 21, 2016 at the Key Bank on Frantz Road in Columbus (original indictment)
* Denotes armed robbery charges that also include forcing one or more persons to accompany him within the bank.
Emeaghara was indicted by the federal grand jury in initial and superseding indictments in November and December 2016.
Armed bank robbery is a crime punishable by up to 25 years in prison. Armed robbery including forcing one or more persons to accompany the defendant without their consent is punishable by a mandatory minimum 10 year prison term, with a possible 25 year maximum.
U.S. Attorney Glassman commended the cooperative investigation by law enforcement and Deputy Criminal Chief Gary L. Spartis and Assistant U.S. Attorney Salvador A. Dominguez, who are prosecuting the case.
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6 March 2017
“Youth Voices on the Opiate Crisis Media Contest” AnnouncedRead the Press Release
Contact: Daniel Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: Thomas E. Delahanty II, United States Attorney for the District of Maine, is pleased to announce the “Youth Voices on the Opiate Crisis Media Contest.”
Each day in Maine, on average, one person dies of a drug overdose; in 2015 and 2016, overdose deaths increased by over 31%. In these challenging times, United States Attorney’s Office for the District of Maine and the Office of the Maine Attorney General are jointly sponsoring the “Youth Voices on the Opiate Crisis Media Contest.” This contest is open to Maine students and is designed to provide a platform to creatively document and reflect on the impact of substance abuse in their lives and communities. The goal of this contest is to build awareness and spark conversation among Maine’s youth. Prize money will be awarded to winning entrants.
Details about the contest can be found at: www.noStigmaForMe.com.
U.S. Attorney’s Office and Diocese of Altoona-Johnstown Announce Reforms to Protect Children from Sexual Abuse, Provide Counseling and Support for VictimsRead the Press Release
PITTSBURGH – Acting United States Attorney Soo C. Song and Bishop Mark L. Bartchak of the Diocese of Altoona-Johnstown announced today reforms by the Diocese to protect the children of the Diocese from sexual abuse, ensure that all allegations of sexual abuse are immediately reported to law enforcement and provide victims with access to a full range of counseling and support services.
The reforms are summarized in a memorandum of understanding. The memorandum is the product of extensive collaboration between the Diocese and the U.S. Attorney’s Office. Among other core reforms, the memorandum provides for:
- The creation of an independent, multidisciplinary oversight board;
- The retention of an outside expert to develop a new, comprehensive child abuse prevention program;
- A reporting protocol that requires the Diocese to report allegations of child sexual abuse to law enforcement within twelve hours after receipt; and
- Counseling and support services for victims by qualified and independent mental health professionals chosen by the victims.
“These unprecedented reforms put victims first, providing them with access to needed support and counseling,” stated Acting U.S. Attorney Song. “Through this agreement, allegations of sexual abuse will be immediately reported to law enforcement and suspected offenders removed from contact with children.”
“Since the release of the Grand Jury report last year, I have focused on strengthening our commitment to children and youth protection and providing continued support to survivors of sexual abuse,” said Bishop Bartchak. “The framework announced today represents the culmination of those efforts. As we look to the future, I believe these comprehensive and unprecedented reforms will make the Diocese of Altoona-Johnstown a leader in the safety and protection of young people.”
Assistant United States Attorneys Michael A. Comber, Philip P. O’Connor, and Colin J. Callahan handled this matter on behalf of the United States.
Two dealers plead guilty to federal drug crimesRead the Press Release
CHARLESTON, W.Va. – Two defendants pleaded guilty today to federal drug crimes, announced United States Attorney Carol Casto. Chelsea Fore, 25, of Charleston, entered her guilty plea to distribution of methamphetamine. In a separate prosecution, Everett Ray Gillespie, 66, of Bluefield, entered his guilty plea to distribution of hydromorphone.
On October 13, 2016, officers with the Metropolitan Drug Enforcement Network Team used a confidential informant to meet with Fore to purchase methamphetamine. The drug deal took place in the area of the Kmart located at 4th Avenue in Charleston. Once the informant gave Fore the prerecorded buy money, Fore got into the passenger seat of a BMW in the Kmart parking lot. After retrieving the methamphetamine, Fore got out of the car and gave the informant the drugs. Fore faces up to 20 years in federal prison when she is sentenced on June 5, 2017.
In a separate prosecution, Gillespie admitted that on April 15, 2016, he sold hydromorphone to a confidential informant in Bluefield. He also admitted that he distributed hydromorphone on another occasion, and that law enforcement seized 35 hydromorphone pills, more than $500 cash, and a handgun when they executed a search warrant at his residence. Gillespie faces up to 20 years in federal prison when he is sentenced on May 30, 2017.
The Metropolitan Drug Enforcement Network Team investigated the Fore case. Assistant United States Attorney Monica D. Coleman is in charge of the Fore prosecution. Fore’s plea hearing was held before United States District Judge Thomas E. Johnston. The Gillespie case was investigated by the Southern Regional Drug and Violent Crime Task Force. Assistant United States Attorney John File is handling the prosecution of Gillespie. The Gillespie plea hearing was held before Senior United States District Judge David A. Faber.
The case against Gillespie is being prosecuted under the Bluefield Pill Initiative. Both of these cases were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Two Plead Guilty to Mystery Shopper Fraud SchemeRead the Press Release
NEWPORT NEWS, Va. – Christie Easter, 47, of Fort Worth, Texas, and Toheeb Odoffin, 28, of Chicago, each pleaded guilty today to charges related to their respective roles in a fraud scheme involving “Mystery Shoppers.”
According to the statement of facts filed with the plea agreement, in 2012 federal law enforcement began an investigation into an extensive scheme that operated nationally and internationally, stemming from Nigeria. The investigation determined that participants in the scheme, including Easter and Odoffin, recruited individuals throughout the United States via email to serve as “Mystery Shoppers,” in which the individuals would receive financial instruments, such as a cashier’s check or Postal money order, to evaluate the services of certain money transmission services, including Western Union and Money Gram. Once a recruited individual, or “Mystery Shopper,” responded to the email solicitation with interest, the conspirators would obtain personal identification information from the Mystery Shopper, which was then placed on the counterfeit cashier’s check or Postal money order. The conspirators, including Easter and Odoffin, would then mail the Mystery Shoppers a counterfeit cashier’s check or Postal money order for the Mystery Shopper to negotiate at their own bank, keeping a portion of the payment for their services. The Mystery Shopper would then wire the majority of the funds to conspirators or other recruited individuals who retrieved the transmitted funds and engaged in further distribution of the fraudulent proceeds.
Easter and Odoffin each pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft. Each faces mandatory minimum of two years in prison, and a maximum penalty of 32 years in prison. 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; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Michael K. Lamonea, Assistant Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Norfolk; Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and George Purefoy, Resident Agent in Charge of the Norfolk Resident Office, U.S. Secret Service, made the announcement after the plea was accepted by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Brian J. Samuels and Megan M. Cowles 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. 4:16-cr-49.
Two Madison County Residents Sentenced for Conspiring to Distribute FentanylRead the Press Release
LEXINGTON, Ky. – Two Richmond, Ky., residents have been sentenced for conspiring to distribute large quantities of fentanyl.
U.S. Senior District Court Judge Joseph M. Hood sentenced Travis B. Preston, 28, to 11 years of imprisonment for conspiring to distribute 40 grams or more of a mixture or substance containing a detectable amount of fentanyl. Tiffany L. Griffith was sentenced to five years of imprisonment for aiding and abetting the distribution of 40 grams or more of a mixture or substance containing a detectable amount of fentanyl. Both defendants must serve 85 percent of their respective prison sentences. Following the completion of their sentences, Preston and Griffith will be under the supervision of the United States Probation Office for eight years and four years, respectively.
Preston and Griffith admitted to possessing approximately 121 grams of fentanyl for distribution. The fentanyl was discovered in Griffith’s purse during a traffic stop that occurred on April 5, 2016, in Lancaster, Ky.
The defendants pleaded guilty to the charges in December of 2016.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, Richard W. Sanders, Commissioner, Kentucky State Police, and Tim Davis, Garrard County Sheriff, jointly made the announcement today.
The investigation was conducted by the Garrard County Sheriff’s Office, the Kentucky State Police, and the Drug Enforcement Administration. The United States was represented in the case by Assistant United States Attorney Robert M. Duncan, Jr.
Three Pittsburgh Residents Charged in Forged Prescription RingRead the Press Release
PITTSBURGH - Three residents of Pittsburgh, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges including conspiracy to commit offenses against the United States, possession with intent to distribute and distribute Oxycodone, obtaining a controlled substance through fraud, health care fraud, conspiracy to possess with intent to distribute and distribute Oxycodone and aggravated identity theft, Acting United States Attorney Soo C. Song announced today.
The seven-count indictment named Barry Lee Dorsey, II, 26, Tyesha Renee Dorsey, 25, and Zachary Edward Rathke, 26, as defendants.
According to the indictment, the defendants operated a forged prescription ring. Prescriptions were forged with the names, DEA numbers, medical license numbers, and signatures of real medical doctors. The prescriptions, most of which were forged for Oxycodone and Percocet, were filled at a large number of Western Pennsylvania pharmacies and primarily paid for with Medicaid funds. The fraudulently obtained prescription pills were then sold on the street for substantial profit.
The law provides for a maximum total sentence of 61 years in prison, a fine of $3,000,000 or both for the charges pending against Barry Lee Dorsey, II. The law provides for a maximum total sentence of 25 years in prison, a fine of $1,250,000 or both for the charges pending against Tyesha Renee Dorsey and Zachary Edward Rathke. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Drug Enforcement Administration, Pittsburgh Bureau of Police, Brentwood Police Department, Mt. Pleasant Police Department and Bellevue Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Sports Memorabilia Executive Pleads Guilty to $9.5 Million Fraud SchemeRead the Press Release
CHICAGO — The owner of a sports memorabilia company admitted in federal court today that he conducted a fraud scheme using forged documents and phony sports memorabilia, including a doctored Heisman Trophy and fake baseball cards that he used as collateral on loans.
JOHN ROGERS, 44, of North Little Rock, Ark., pleaded guilty to one count of wire fraud. The conviction carries a maximum sentence of 20 years in prison. U.S. District Judge Thomas M. Durkin scheduled a sentencing hearing for Sept. 12, 2017, at 10:00 a.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Rogers admitted in a plea agreement that he carried out a fraud scheme between 2009 and 2014 through his two Arkansas-based businesses, Sports Card Plus and Rogers Photo Archive LLC, resulting in losses of more than $9.5 million to investors, customers and financial institutions.
In order to obtain money from investors, Rogers falsely represented that he had secured contracts to purchase certain collections of sports memorabilia and newspaper photograph archives his company would sell at a profit, according to the plea agreement. Rogers showed the investors contracts for collections and archives even though he knew the deals never actually existed because the contracts were forgeries that Rogers created to deceive them.
Rogers also admitted in the plea agreement that he sold various sports memorabilia that he knew was not authentic because he had either created the item himself or altered it to make it appear legitimate. For example, in February 2012 Rogers paired an altered Heisman Trophy with phony certifications to secure a $100,000 loan from an investor, according to the plea agreement.
Rogers also used other fraudulent contracts and fake sports memorabilia to secure more than $4 million in loans from multiple financial institutions in Arkansas, the plea agreement states. Rogers admitted in the plea agreement that he used fraud proceeds he received from investors and financial institutions to repay customers who detected his sale of fraudulent sports memorabilia. Rogers provided customers with fraudulent certificates of authenticity, as well as fraudulent hologram stickers from a major auction house, the plea agreement states.
The government is represented by Assistant United States Attorney Derek Owens.
Smithton Resident Sentenced for Sexual Exploitation of a Minor and Possession of Prepubescent Child PornographyRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that on Friday, March 3, 2017, Kyle W. Oberg, 40, Smithton, IL, was sentenced on two counts of sexual exploitation of a minor and one count of possession of visual depictions of prepubescent minors engaged in sexually explicit conduct. Oberg was sentenced to 360 months of imprisonment on the first two counts and 240 months of imprisonment on the third count, all to run concurrently, for a total term of imprisonment of 30 years. The term of imprisonment is to be followed by a lifetime term of supervised release. Oberg was also fined $200 on each count, for a total fine of $600, and ordered to pay a $300 special assessment. Oberg had been detained since his arraignment on August 22, 2013.
The charges arose after the Smithton Police Department executed a state search warrant on July 18, 2013, at Oberg’s residence after receiving a complaint from a concerned mother regarding defendant’s suspicious behavior towards the mother’s six-year old daughter.
Evidence presented at sentencing established that, between December 8, 2012, and June 29, 2013, on 24 separate occasions, Oberg took a total of 337 images of the minor victim engaged in sexually explicit conduct. There were also three videos taken of the minor victim engaged in
sexually explicit conduct, including one video of the defendant digitally penetrating the then six-year old victim.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab Aresources.@
The case was investigated by the Smithton Police Department and the United States Secret Secret’s Cyber-Crime Unit. The case was assigned to Assistant United States Attorney Angela Scott.
Sex Offender Sentenced to Prison Term for Violating Supervised ReleaseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DONALD LUCIANO, 45, last residing in Bridgeport, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 11 months of imprisonment for violating the terms and conditions of his federal supervised release.
On July 18, 2013, LUCIANO was sentenced in federal court in Fort Lauderdale, Fla., to 24 months of imprisonment, followed by five years of supervised release, for possessing child pornography. He began supervision in the District of Connecticut on October 31, 2014.
According to court documents and statements made in court, LUCIANO engaged in numerous violations of the terms of his supervised release, including having unsupervised contact with minors, using or accessing unauthorized computers, traveling out of state on multiple occasions without prior permission (including trips to Block Island, R.I., and the Hamptons, N.Y.), associating with felons, and failing to give truthful answers and reports to the U.S. Probation Office.
LUCIANO has been detained since his arrest on August 1, 2016, for supervised release violations. When he is released from prison, he faces five years of supervised release, the first six months of which he will serve in a halfway house. LUCIANO also faces pending state larceny charges on allegations of fraud.
This matter was brought by the U.S. Probation Office with additional investigation provided by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney David T. Huang.
San Francisco Residents Charged in Alleged Bank Robbery SpreeRead the Press Release
SAN FRANCISCO – Andre Mitchell Brown and Javier Raymond Jenkins were charged with conspiracy and armed bank robbery announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. Brown also was charged with being a felon in possession of a firearm and with use of a firearm during and in relation to a crime of violence.
The defendants both made an initial appearance today before the Hon. Maria-Elena James, U.S. Magistrate Judge, on an indictment issued by a federal grand jury on February 28, 2017. According to the indictment, San Francisco residents Brown and Jenkins surveilled five separate locations in an effort to find a bank or credit union to rob. The indictment further alleges that on August 12, 2016, the defendants traveled to a Richmond District bank on Geary Street where Brown, carrying a .38 caliber pistol in his jacket, approached the bank wearing a wig, fake beard and mustache, sunglasses, jacket, and a glove on his left hand. According to the indictment, the men attempted to rob the bank. The defendants were charged with conspiracy to commit bank robbery, in violation of 18 U.S.C. § 371, and attempted armed bank robbery and aiding and abetting attempted armed bank robbery, in violation of 18 U.S.C. §§ 2113 and 18 U.S.C. § 2. In addition, Brown was charged with being a felon in possession of firearms, in violation of 18 U.S.C. § 922(g)(1), and using, carrying, and possessing a firearm in relation to a crime of violence, in violation of 18 U.S.C. § 924(c).
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. The maximum penalty each defendant faces upon conviction for the conspiracy charge is five years’ imprisonment and the maximum penalty each defendant faces upon conviction for the attempted bank robbery charge is 25 years’ imprisonment. Further, upon conviction, the maximum penalty Brown faces for being a felon in possession of a firearm is 10 years’ imprisonment and the maximum penalty Brown faces upon conviction for using, carrying or possessing a firearm in relation to a crime of violence is life imprisonment, with a minimum mandatory sentence of 25 years’ imprisonment. Additionally, periods of supervised release, fines, forfeitures, and special assessments also could be imposed. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Magistrate Judge Maria-Elena James ordered defendant Brown to appear on March 8, 2017, for a detention hearing, and ordered defendant Jenkin to appear on March 13, 2017, for a detention hearing.
Assistant U.S. Attorney Helen L. Gilbert is prosecuting the case with the assistance of Heidi Dittmer. The prosecution is the result of an investigation by the FBI.
Pennsylvania Woman Pleads Guilty to Conspiring to File Tax Returns Using IDs of Puerto Rico ResidentsRead the Press Release
Cashed More than $4 Million in Fraudulently Obtained Refunds
An Allentown, Pennsylvania woman pleaded guilty to conspiring to file federal tax returns using stolen IDs, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania.
According to the indictment and information presented to the court, Jessenia Cordero, 37, operated MJ & Associates and Express Tax Services, both located in Allentown. These businesses provided tax preparation, check cashing and other services to customers. Cordero and her co-conspirators obtained lists of Puerto Rico residents’ names and social security numbers and used these IDs to file fraudulent tax returns with the Internal Revenue Service (IRS). The conspirators directed the IRS to mail the refund checks to addresses they controlled and to deposit the refunds onto pre-paid debit cards. Cordero used her businesses to cash fraudulently obtained refund checks totaling approximately $4,316,103.
Cordero is scheduled to be sentenced on June 12, before U.S. District Judge Edward G. Smith. She faces a statutory maximum sentence of 10 years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Lappen commended special agents of IRS-Criminal Investigation, HSI and FBI, and the Allentown Police Department, who conducted the investigation, and Assistant U.S. Attorney David Ignall and Trial Attorney Matthew J. Kluge of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Pawn Shop Owners Plead Guilty to Mail Fraud and Stolen Property ChargesRead the Press Release
PITTSBURGH - Two residents of Pittsburgh pleaded guilty in federal court to charges of mail fraud and engaging in monetary transactions in property derived from specified unlawful activity, Acting United States Attorney Soo C. Song announced today.
Qamar Zaman, 67, and Aliya Zaman, 48, both of Pittsburgh, Pennsylvania, pleaded guilty to two counts before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that the Zamans owned and operated Ninja Babcock, a pawn/resale shop in Ross Township, Pennsylvania. They are husband and wife. The Zamans knowingly and willfully purchased health and beauty aids (HBAs), stolen by opioid-dependent individuals from various commercial retailers, such as Rite-Aid, Wal-Mart and Giant Eagle, for pennies on the dollar. The stolen HBAs were then resold through Amazon.
Judge Hornak scheduled sentencing for Aliya Zaman for June 29, 2017 at 3:00 p.m. and for Qamar Zaman for June 29, 2017 at 1:30 p.m. The law provides for a total sentence of 30 years in prison, a fine of $500,000 or both for each defendant. 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 Robert S. Cessar is prosecuting this case on behalf of the government.
The Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, Federal Bureau of Investigation, Pennsylvania Office of Attorney General, City of Pittsburgh Bureau of Police, Shaler Township Police Department and Ross Township Police Department conducted the investigation that led to the prosecution of the Zamans.
Passaic County, New Jersey, Man Sentenced to Two Years in Prison for Illegally Possessing MachinegunsRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 24 months in prison for possession of multiple machineguns, which are illegal under federal law, U.S. Attorney Paul J. Fishman announced.
Mariusz Cebula, 36, Ringwood, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of knowingly possessing five machineguns, which are defined as weapons that can shoot more than one shot automatically, without manual reloading, by a single function of the trigger. Judge Wigenton imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Cebula admitted that he possessed five machineguns, but agreed to forfeit to the Government an additional 12 machineguns and machinegun parts, all of which were possessed illegally, as well as 10 other firearms and firearm parts. The five machineguns specifically charged in the information were determined to be readily operational as automatic weapons, meaning that they required no modification to shoot more than one shot automatically by a single function of the trigger and without manual reload. Cebula obtained most of the firearms through purchases at gun shows from unlicensed gun sellers and on the Internet.
Besides the machineguns charged in the information and forfeited by him, Cebula also possessed numerous other firearms, weapons and ammunition, all of which have been administratively forfeited by the Passaic County Prosecutor’s Office. According to data published by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the town of Ringwood ranked number six on the list of top ten cities in New Jersey where guns were seized in 2015, behind Newark, Paterson, Trenton, Jersey City and Camden. Of the 93 recovered guns that propelled Ringwood, New Jersey to the sixth spot on the list, the overwhelming majority (approximately 80) were recovered from Cebula’s home.In addition to the prison term, Judge Wigenton sentenced Cebula to three years of supervised release.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Acting Special Agent in Charge Scott C. Curley, and the Ringwood Police Department, under the direction of Chief Joseph Walker, with the investigation leading to the charge. He also thanked the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, for its role in the case.
The government is represented by Assistant U.S. Attorney Sammi Malek of the U.S. Attorney’s Office Criminal Division in Newark.
Defense Counsel: Miles Feinstein Esq., Clifton, New Jersey
Orville Man Sentenced to 5 Years in Federal Prison for Distribution of Child PornographyRead the Press Release
Spokane–Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Ian Christopher Evans, age 31, of Orville, Washington, was sentenced on February 28, 2017, after having previously pleaded guilty on December 1, 2016 to Distribution of Child Pornography. Senior United States District Judge Wm. Fremming Nielsen sentenced Evans to a five-year term of imprisonment, to be followed by a ten-year term of court supervision after he is released from Federal prison. In addition, Evans agreed to abandon to the United States the laptop computer he used to distribute and store his child pornography collection.
According to information disclosed during the court proceedings, in April of 2013, an officer working undercover for the Spokane County Sheriff's Office discovered that Evans was using peer to peer file sharing to distribute images of child pornography. With the assistance of agents from Homeland Security, a federal search warrant was executed on December 13, 2013 at Evans residence in Oroville, Washington. Law enforcement officers discovered Evan’s Compaq laptop computer contained approximately 87 videos and 15 images of child pornography.
Michael C. Ormsby stated, “I commend the law enforcement officers with Homeland Security and Spokane County Sheriff's Office who worked on this case. Their seamless partnership resulted in the successful outcome in this matter. The United States Attorney’s Office in the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for child pornography crimes. Prosecuting offenders who distribute child pornography is a priority of the United States Attorney’s Office.”
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 the Homeland Security and the Spokane County Sheriff's Office. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.
Orange County Man Who Owned Rehab Clinic in Walnut Sentenced to 63 Months in Federal Prison for Role in Occupational Therapy Fraud SchemeRead the Press Release
LOS ANGELES – The operator of rehabilitation clinic in Walnut was sentenced today to 63 months in prison for his role in a $3.4 million Medicare fraud scheme that involved billing for occupational therapy services that were not medically necessary and not provided.
Simon Hong, 55, of Brea, was sentenced by U.S. District Judge George H. Wu, who also ordered the defendant to pay $2,407,857 in restitution. Hong pleaded guilty on December 15 to one count of conspiracy to commit health care fraud.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, United States Attorney Eileen M. Decker and Special Agent in Charge Christian J. Schrank of the U.S. Department of Health and Human Services’ Office of Inspector General’s (HHS-OIG) Los Angeles Regional Office made the announcement.
“This defendant has now been convicted and sentenced to federal prison in two separate schemes that cost taxpayers millions of dollars,” said United States Attorney Decker. “This type of fraudulent conduct is a burden on the entire health care system, drives up costs for patients and compromises the delivery of services to people who legitimately need care.”
In addition to today’s sentence, Hong was sentenced in January to over 10 years in prison in a separate case. The 63-month sentence imposed today by Judge Wu will run concurrently to the sentence imposed by Judge Carter.
As part of the guilty plea that led to today’s sentencing, Hong admitted that he owned JH Physical Therapy Inc., an occupational therapy clinic in Walnut, but hid his ownership in the name of a “straw”or nominee owner in an effort to execute and conceal the fraudulent scheme. Hong admitted that as part of the scheme, he billed Medicare for occupational therapy services when no such services were provided to the Medicare beneficiaries. Instead, the Medicare beneficiaries received acupuncture and massage services, which were not reimbursable by Medicare. Hong further admitted that he directed co-conspirator therapists to falsify medical records to make it appear as if the services billed had been actually provided and funneled 87 percent of the proceeds from Medicare to himself.
Through this scheme, Hong admitted that he and his co-conspirators billed Medicare approximately $3,454,485 from October 2009 until December 2012 in false claims and received approximately $2,407,857.
Hong was charged by indictment on June 16, 2016, along with Grace Hong, 51, of Brea, and Keith Canlapan, 38, of West Covina. Canlapan pleaded guilty to one count of conspiring to commit health care fraud, and Grace Hong is scheduled for trial March 21. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HHS-OIG investigated the case. The Criminal Division’s Fraud Section Trial Attorney Niall M. O’Donnell and Former Fraud Section Trial Attorney Blanca Quintero prosecuted the case.
Olyphant Man Guilty of Attempted Enticement of A Minor for Sexual PurposesRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Brian LaChance, age 27, of Olyphant, Pennsylvania, pleaded guilty on March 3, 2017, before U.S. Magistrate Judge Joseph F. Saporito, Jr, to using a facility of interstate commerce to attempt to entice a minor to engage in illegal sexual conduct.
According to United States Attorney Bruce D. Brandler, LaChance admitted that in November 2015, he used the internet and a cell phone to attempt to entice and persuade a 15-year-old female to send him sexually explicit photographs of her.
The charge stems from an investigation by the Federal Bureau of Investigation and the U.S. Army criminal investigators. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. The charge also carries a mandatory minimum sentence of 10 years in prison. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Ohkay Owingeh Pueblo Man Pleads Guilty to Federal Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Peter Calvert-Cata, 21, a member and resident of Ohkay Owingeh Pueblo, N.M., pled guilty today in federal court in Albuquerque, N.M., to a sexual assault charge. Under the terms of the plea agreement, Calvert-Cata will be sentenced to four years of imprisonment followed by a term of supervised release to be determined by the Court. He also will be required to register as a sex offender.
Calvert-Cata was arrested on Nov. 18, 2016, on a criminal complaint charging him with aggravated sexual abuse. According to the criminal complaint, Calvert-Cata sexually assaulted a 17-year-old female on Aug. 13, 2016, in Ohkay Owingeh Pueblo. At the time of the sexual assault, the victim, a member of Ohkay Owingeh Pueblo, was fading in and out of consciousness because she was intoxicated by alcohol and marijuana. Calvert-Cata subsequently was indicted on Dec. 7, 2016, and charged with two counts of aggravated sexual abuse.
During today’s change of plea hearing, Calvert-Cata entered a guilty plea to a felony information charging him with sexual assault. In his plea agreement, Calvert-Cata admitted that he attempted to engage in a sexual act with the victim on Aug. 13, 2016, at a time when she was highly intoxicated by alcohol and marijuana. Calvert-Cata also acknowledged providing the marijuana consumed by the victim.
Calvert-Cata remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Santa Fe office of the FBI, the Northern Pueblos Agency of the BIA’s Office of Justice Services, the Ohkay Owingeh Tribal Police Department, and the New Mexico State Police.
Assistant U.S. Attorney Lucy H. Solimon is prosecuting the case as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
North Carolina Woman Pleads Guilty to Tax ChargeRead the Press Release
Roanoke, VIRGINIA – A woman who participated in a fraudulent cosmetics sales scheme pled guilty on Friday to federal tax charges, Acting United States Attorney Rick A. Mountcastle announced.
Charon Ray, a.k.a. “Charon Crowely,” 39, of Greensboro, North Carolina, pled guilty on March 3 in the United States District Court for the Western District of Virginia to one count of filing a false tax return.
According to evidence presented during the guilty plea hearing, Ray operated an online cosmetic sales business out of her residence during the years in the year 2009, 2010, 2011, 2012, 2013 and 2014. Ray obtained the cosmetics from a disposal company, and then repurposed them for sale through electronic sales channels such as eBay. The Internal Revenue Service examined Ray’s financial records for the relevant time period and determined that she knowingly failed to report at least $380,000 in income associated with her online business in 2011 alone. As part of her plea in this case, Ray will file updated returns for all years and make payment to the Internal Revenue Service for taxes owed.
The investigation of the case was conducted by the Internal Revenue Service. Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
New Jersey Man Sentenced on Heroin ChargeRead the Press Release
Roanoke, VIRGINIA – A New Jersey man, who conspired with others to distribute heroin in and around the Western District 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.
Joshua M. Manning, 20, of Paterson, N.J., previously pled guilty to one count of conspiracy to distribute heroin. Today in District Court, Manning was sentenced to 40 months in federal prison.
A number of co-defendants in the case have previously been sentenced for their roles in the conspiracy. Jesse Ray Little was previously sentenced to 108 months; Shawn St. Clair Cadogan was previously sentenced to 84 months; Michael A. Kemp II was sentenced to 70 months and Tiki Price Tickle was sentenced to 28 months.
The investigation of the case was conducted by the Drug Enforcement Administration, the Bedford County Sheriff’s Office and the Virginia State Police. Assistant United States Attorney Andrew Bassford and Special Assistant United States Attorney Kari Munro prosecuted the case for the United States.
Nevada Liquor Store Owner Sentenced to Prison for Conspiring to Defraud the United States and Tax EvasionRead the Press Release
Jeffrey Nowak, a Las Vegas, Nevada liquor store owner was sentenced to serve 41 months in prison for conspiring to defraud the United States and tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Daniel G. Bogden for the District of Nevada.
According to the evidence introduced at trial and documents filed with the court, Nowak, 67, and Ramzi Suliman jointly owned and operated liquor stores in Las Vegas. At their first liquor store, Super Liquor Store South Strip, Nowak and Suliman skimmed cash receipts and maintained a double set of books in order to underreport income to the Internal Revenue Service (IRS). One set of books accurately reflected the store’s sales, while a second set of books fraudulently omitted nearly $4 million in cash receipts that had been actually received by the business. Nowak and Suliman provided the phony set of books to their accountant, causing him to create corporate tax returns that did not fully report the liquor store’s gross receipts and taxable income. Nowak and Suliman also caused their true personal income to be concealed on their individual income tax returns.
“Everyone is legally required to accurately report and pay taxes on their income – cash sales are not an opportunity to skirt this obligation,” said Acting Deputy Assistant Attorney General Goldberg. “Nowak’s prison sentence makes clear that taxpayers cannot hide behind a double set of books.”
“The defendant intentionally concealed the store’s income by conspiring to skim cash and keeping two sets of account books,” said U.S. Attorney Bogden. “As a result, he cheated the U.S. Treasury and taxpayers. The U.S. Attorney’s Office is committed to working together with the IRS to pursue and prosecute perpetrators who choose to violate tax laws for their own benefit. Financial fraud is a top priority.”
In addition to the term of prison imposed, Nowak was ordered to serve three years of supervised release and pay restitution to the IRS. Nowak was convicted in August 2016, of conspiring to defraud the United States, assisting in the filing of false corporate tax returns and tax evasion. Suliman pleaded guilty in July 2014 to conspiring with Nowak to defraud the United States and was sentenced on Jan. 18 to serve 12 months in prison, three years of supervised release and to pay $428,003 in restitution to the IRS.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Bogden commended special agents of IRS Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney Kathryn C. Newman and Trial Attorney Eric C. Schmale of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Nevada Liquor Store Owner Sentenced to Prison for Conspiring to Defraud the United States and Tax EvasionRead the Press Release
LAS VEGAS, Nev.–Jeffrey Nowak, a Las Vegas, Nevada liquor store owner, was sentenced to serve 41 months in prison for conspiring to defraud the United States and tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Daniel G. Bogden for the District of Nevada.
According to the evidence introduced at trial and documents filed with the court, Nowak, 67, and Ramzi Suliman jointly owned and operated liquor stores in Las Vegas. At their first liquor store, Super Liquor Store South Strip, Nowak and Suliman skimmed cash receipts and maintained a double set of books in order to underreport income to the Internal Revenue Service (IRS). One set of books accurately reflected the store’s sales, while a second set of books fraudulently omitted nearly $4 million in cash receipts that had been actually received by the business. Nowak and Suliman provided the phony set of books to their accountant, causing him to create corporate tax returns that did not fully report the liquor store’s gross receipts and taxable income. Nowak and Suliman also caused their true personal income to be concealed on their individual income tax returns.
“Everyone is legally required to accurately report and pay taxes on their income – cash sales are not an opportunity to skirt this obligation,” said Acting Deputy Assistant Attorney General Goldberg. “Nowak’s prison sentence makes clear that taxpayers cannot hide behind a double set of books. ”
“The defendant intentionally concealed the store’s income by conspiring to skim cash and keeping two sets of account books,” said U.S. Attorney Bogden. “As a result, he cheated the U.S. Treasury and taxpayers. The U.S. Attorney’s Office is committed to working together with the IRS to pursue and prosecute perpetrators who choose to violate tax laws for their own benefit. Financial fraud is a top priority.”
In addition to the term of prison imposed, Nowak was ordered to serve three years of supervised release and pay restitution to the IRS. Nowak was convicted in August 2016, of conspiring to defraud the United States, assisting in the filing of false corporate tax returns and tax evasion. Suliman pleaded guilty in July 2014 to conspiring with Nowak to defraud the United States and was sentenced on Jan. 18 to serve 12 months in prison, three years of supervised release and to pay $428,003 in restitution to the IRS.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Bogden commended special agents of IRS Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney Kathryn C. Newman and Trial Attorney Eric C. Schmale of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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National Park Service Employee Sentenced to Prison for Theft of Park FeesRead the Press Release
PHOENIX– Yesterday, Sharon Baldwin, 47, of Sanders, Ariz., a member of the Navajo Nation, was sentenced by U.S. District Judge Diane Humetewa to a year in prison to be followed by three years of supervised release. Baldwin was also ordered to pay restitution to the National Park Service in the amount of $313,000. Baldwin had previously pleaded guilty to theft of government money.
Baldwin was formerly employed at the Petrified Forest National Park and was responsible for accounting for park entrance fees paid by Park visitors. From 2010 through 2016, Baldwin used her supervisory position to steal more than $300,000 and altered electronic records and documents to hide her theft.
The investigation in this case was conducted by the Department of Interior, Office of Inspector General. The prosecution was handled by Monica Edelstein, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-16-08295-PHX-DJH
RELEASE NUMBER: 2017-022_Baldwin
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Multi-state drug trafficking organization dismantledRead the Press Release
Defendants indicted on drug and criminal enterprise charges for bringing kilograms of cocaine and methamphetamine to Central Indiana
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today the dismantling of a multi-state drug trafficking organization which brought large quantities of cocaine and methamphetamine to Central Indiana which netted them millions of dollars in cash profits.
“Large-scale drug trafficking dealing brings violence and disrupts the tranquility of our neighborhoods,” said Minkler. “Those who chose to spread illegal drugs and the addictions that follow, will be held accountable and experience the wrath of federal prosecution.”
The indictment alleges Hector Saul Castro-Aguirre, age 38, Nogales, Mexico, and Rafael Rojas-Reyes, 34, Avon, were the masterminds of the organization bringing drugs to Central Indiana and many other U.S. cities. From July 2015 through September 2016, Castro-Aguire is alleged to have received the drugs from Mexico for redistribution in the United States. Some shipments were delivered in Avon, Indiana, and others were sent to locations in Arizona, New York and Pennsylvania. Once the drugs were delivered to Avon, they were redistributed by Rafael Rojas-Reyes to other mid-level dealers.
Other defendants include:
Rafael Rojas-Reyes, 34
Oscar Macias, 22
Merath Mora-Chavez, 32
Francisco Toledo-Santos, aka Chiapas, 29
Roberto S. Macias, 42
Hector Saul Castro-Aguirre, aka Chapo, aka Chapito, 38
Elvia Barrios-Moreno, 50
Aldo Machado-Castro, 40
John Ramirez-Prado, 34
Rafael Lnu, aka Flaco
Yesenia Andrade-Guillen, 38
Jesus Lopez-Acosta, aka Jessie
Julio Cesar Cebrero-Alvarez, 34
Jose Manuel Carrillo-Tremillo, aka Meche, 50
Cristian Garcia, 25
Melvin Peralta, aka Leonardo, 27
This case was investigated by the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, Indianapolis Metropolitan Police Department, Carmel Police Department and Indianapolis Metropolitan Drug Task Force.
According to Assistant U.S. Attorney Bradley A. Blackington, Chief of the Drug and Violent Crime Unit, the defendants face decades in prison if convicted on all counts.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
Mineral Wells Man Sentenced to 360 Months in Federal Prison on Federal Child Pornography ConvictionRead the Press Release
FORT WORTH — A 57-year-old Mineral Wells, Texas, man, Jimmy Gordon, who pleaded guilty in June 2016 to one count of production of child pornography, was sentenced this morning by U.S. District Judge David C. Godbey to 360 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, in March 2016, Federal Bureau of Investigation agents executed a search warrant at the residence of Gordon in Mineral Wells, Texas. During the search, Gordon admitted that he communicated with an individual on Facebook, and that, over the course of their communications, Gordon used his cell phone to take a nude picture of his two-year old grandson and to transmit the image to the individual.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigation investigated. Assistant U.S. Attorney A. Saleem prosecuted.
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Memphis Man Convicted of Felony Possession of a FirearmRead the Press Release
Memphis, TN – A jury has convicted a Memphis man of possessing a firearm while a convicted felon and possessing a firearm while on school property. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the conviction today.
According to information presented at trial, on October 3o, 2014, officers with the Memphis Police Department responded to a report of an armed suspect at Ross Elementary School, 4890 Ross Road. Upon arrival, officers saw Charles Tigner of Memphis, Tennessee, who was combative and engaged officers in a fight resulting in the deployment of a chemical agent.
Officers pursued Tigner from the halls of Ross Elementary School to 6946 Boothbay, where he was apprehended. A Ruger 9 mm was recovered on school property near the area of the original struggle.
According to the affidavit of complaint, the suspect had an outstanding warrant for domestic violence charges.
For the two counts, the maximum penalty is 15 years in prison and a $250,000 fine. Sentencing is set for May 4, 2017, before the Honorable U.S. District Judge John T. Fowlkes Jr.
The case was investigated by the Memphis Police Department’s Project Safe Neighborhoods Task Force. Assistant U.S. Attorneys Dean DeCandia and Bayonle Osundare prosecuted this case on the government’s behalf.
Manchester Man Pleads Guilty to Trafficking Cocaine in NashuaRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced that Luis D. Capo-Nieves pleaded guilty on March 1, 2017, to a federal charge of possessing cocaine with the intent to distribute. Capo-Nieves is 33 years old and lives in Manchester.
According to court documents and statements made during Capo-Nieves’s plea hearing, on July 1, 2016, the Nashua Police Department dispatched several officers to the parking lot of a city apartment complex. The officers were dispatched in response to a citizen complaint about drug dealing activity at that location. In the parking lot, the police observed Capo-Nieves and another individual make an exchange. A car Capo-Nieves was driving was the subject of a later police traffic stop. While searching the car after the stop, the police found about 279 grams of cocaine.
Capo-Nieves is scheduled for sentencing on June 12, 2017. Wilfredo Tanon Rodriguez, the person with whom Capo-Nieves was seen making the parking lot exchange, recently pleaded guilty to a related charge. He will be sentenced on June 2, 2017.
This matter was investigated by the Nashua Police Department. The case is being prosecuted by Assistant United States Attorney Bill Morse.
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Man Sentenced for Using Stolen Identity to Try to Buy $52,000 Car in WichitaRead the Press Release
WICHITA, KAN. B An Arizona man was sentenced Monday to two years of prison for using a stolen identity in an effort to buy a $52,000 car from a Wichita auto dealer, U.S. Attorney Tom Beall said.
Thomas Rye, 37, Phoenix, Ariz., pleaded guilty to one count of wire fraud. In his plea, he admitted that on Jan. 2, 2016, he called Eddy’s Chrysler Dodge Jeep Ram in Wichita and applied for a pre-approved line of credit to purchase a car. He used a stolen identity for a credit check and tried to use the victim’s credit to buy a Dodge Challenger Hellcat valued at $52,725. Mistakes in the credit application paperwork caused employees of the dealership to become suspicious and they called police. Rye was arrested at the scene.
Rye was one of 13 defendants named in an indictment in May alleging they were part of an organization that attempted to fraudulently obtain a total of $3.5 million in credit and cash. The indictment alleged the conspirators divided up the work of stealing mail from mailboxes, fraudulently applying for credit and shopping with stolen identities.
The sentence is to be served concurrently with a sentence in another case in Arizona.
Beall commended the U.S. Postal Inspection Service, the Sedgwick County Sheriff’s Department, the Wichita Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Assistant U.S. Attorney Alan Metzger and Assistant U.S. Attorney Debra Barnett for their work on the case.
Maine Woman Sentenced to 14 Years on Cocaine and Oxycodone Trafficking ChargesRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Kelli Mujo, 31, of Harmony and Wellington, Maine and Central Falls, Rhode Island, was sentenced today in U.S. District Court by Judge Jon D. Levy to 14 years in prison and five years of supervised release for conspiring to distribute and possess with the intent to distribute oxycodone and cocaine and maintaining a drug involved premise. Mujo and her father, Roger Belanger, were convicted following a jury trial on August 19, 2016.
The evidence at trial revealed that between 2002 and 2014, the defendant and her father ran a cocaine and oxycodone distribution conspiracy that stretched from Rhode Island to the Dexter, Maine area. Conspirators obtained over 22 kilograms of cocaine and thousands of oxycodone pills in Rhode Island and transported to Maine where it was distributed in Dexter and the surrounding communities.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency, with assistance provided by the Dexter Police Department, the Penobscot, Somerset and Piscataquis County Sheriff’s Offices.
Louisville Woman Sentenced to 15 Months for Defrauding the Social Security AdministrationRead the Press Release
Failed to disclose the death of her husband for eleven years
Ordered to pay $194,787.92 in restitution
LOUISVILLE, Ky. – A Louisville woman was sentenced today in United States District Court by Chief Judge Joseph H. McKinley Jr., to serve 15 months in prison and pay $194,787.92 in restitution for committing several offenses involving the fraudulent receipt of Old-Age, Survivors and Disability Insurance (OASDI) benefits by the Social Security Administration (SSA), for an eleven-year period, for which she was not qualified announced United States Attorney John E. Kuhn, Jr.
Janice M. Arnow, age 69, admitted that she failed to disclose the death of her husband and continued to receive and spend OASDI payments made by the SSA between October 2003 and October 2014. Further, Arnow admitted to theft of government property. Arnow embezzled, stole, and purloined money of the Social Security Administration (SSA), a department and agency of the United States, namely, Old-Age, Survivors and Disability Insurance program (OASDI) payments made to her deceased husband, to which she knew she was not entitled. Arnow did not apply for survivor benefits, and would not have qualified.
Also, on or about July 17, 2012, Arnow admitted to making her own false Social Security Application. Arnow willfully and knowingly made a materially false, fictitious, and fraudulent statement, by submitting an application for her own OASDI payments to the SSA. In doing so, Arnow falsely omitted the identity of her late husband (Paul Adams), the receipt of income from her late husband’s OASDI payments, the date of his death, and falsely indicated that she had no other marriages than to M.H.
According to information presented in court, when Arnow was questioned by agents with SSA at her Louisville home, Arnow reportedly stated that she thought she could spend the money because she was his widow, offered to pay the money back, could not remember to whom she had mailed her late husband’s death certificate, and that she had used the money for social work in Rwanda and the Congo. Information presented in Court showed Arnow used the money for living expenses and did not qualify for widower’s benefits because she earned too much additional income.
In a separate case, on November 19, 2012, Arnow pleaded guilty in the Commonwealth of Kentucky, Jefferson County, to wanton exploitation of an adult over $300, theft of identity, fraudulent use of a credit card over $500, and theft by unlawful taking of over $500. The court sentenced Arnow to four years on each count. Arnow entered into a five-year diversion. The Commonwealth moved to revoke that diversion based on the federal charges.
The case is being prosecuted by Assistant United States Attorney Joshua Judd, and results from an investigation conducted by the Social Security Administration –Office of the Inspector General.