Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
15 February 2017
Willow Grove Man Charged with Conspiracy to Commit Fraud and Misuse of VisasRead the Press Release
Juan Rodriguez, 36, of Willow Grove, Pennsylvania, was charged today by Information[1] with one count of conspiracy to commit fraud and misuse visas and one count of fraud and misuse of visas, announced Acting United States Attorney Louis D. Lappen. The information alleges that in or about 2012 to on or about September 2014, Rodriguez, a former Supervisor at Asplundh Tree Experts, Inc., knowingly accepted and received false identification from hired employees. This acceptance of false documentation facilitated the re-hiring of Asplundh Tree Experts, Inc. employees who were determined previously by Homeland Security Investigations to be aliens unauthorized to work in the United States.
If convicted the defendant faces a maximum possible sentence of ten years’ imprisonment, a $500,000 fine, up to three years supervised release, and a $200 special assessment.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations (“HSI”) and is being prosecuted by Special Assistant United States Attorney Josh A. Davison and Assistant United States Attorney L.C. Wright.
[1]An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Wheeling man indicted for cocaine distribution and operating a drug houseRead the Press Release
WHEELING, WEST VIRGINIA – Michael E. Stradwick, of Wheeling, West Virginia, has been indicted for allegedly distributing cocaine and maintaining a house for drug distribution, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Stradwick, age 37, was indicted by a federal grand jury for one count of “Possession with Intent to Distribute Cocaine Base” and one count of “Maintaining Drug-involved Premises.” The crimes are alleged to have occurred in January 2017 in Wheeling, Ohio County.
Stradwick faces up to twenty years in prison and a fine of up to $1,000,000 for count one. He faces up to twenty years in prison and a fine of up to $500,000 for count two. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Special Assistant U.S. Attorney P. Anthony Martin is prosecuting the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Westview Savings Bank Accounting Officer Charged with EmbezzlementRead the Press Release
PITTSBURGH - A resident of Butler, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of embezzling from a federally insured bank, Acting United States Attorney Soo C. Song announced today.
The one-count indictment, returned on February 14, 2017, named Keith A. Simpson, 59, of Butler, Pennsylvania, as the sole defendant.
According to the indictment, Simpson, while serving as Chief Accounting Officer of West View Savings Bank, embezzled approximately $41,806.90 from West View Savings Bank during the period from April 2014 to April 2016.
The law provides for a maximum total sentence of thirty years in prison, a fine of $1,000,000, 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 Attorneys David Lew and Lee J. Karl are prosecuting this case on behalf of the government.
The Federal Deposit Insurance Corporation 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.
Washington man indicted for taking minor over state lines to engage in commercial sexRead the Press Release
A Washington man was charged with transporting a minor across state lines for the purpose of engaging in commercial sex, said U.S. Attorney Carole S. Rendon and FBI Special Agent in Charge Stephen D. Anthony.
Tyrell L. Moss, 33, knowingly transported a child identified as T.C. for the purpose of engaging in prostitution. Moss transported T.C. from Washington state to Beachwood by way of California, Idaho, Utah, Colorado and Illinois, with the intent that T.C. would engage in commercial sex acts, according to the indictment.
This took place between September and October 14, 2016, according to the indictment.
If convicted, the sentence in this case will be determined by the court after consideration of the federal sentencing guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the unique characteristics of the violations. In all cases the sentence will not exceed the statutory maximum, and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Bridget M. Brennan following an investigation by the FBI’s Child Exploitation Task Force, which includes members of the FBI, Cleveland Division of Police, Cuyahoga County Sheriff’s Department, Adult Parole Authority and Cuyahoga Metropolitan Housing Authority Police, with assistance from the Cuyahoga County Prosecutor’s Office.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Violent Drug Dealer and Gang Member Sentenced to 11 Years in Federal PrisonRead the Press Release
EUGENE, Ore. – On Wednesday, February 15, 2017, U.S. District Judge Ann Aiken sentenced Steven Matthew Chambers, 33, of Eugene, to 132 months in prison for possession with intent to distribute methamphetamine. Following his prison sentence, Chambers will be on supervised release for 5 years.
In 2015, the Lane County Interagency Narcotics Team (INET) began investigating Chambers after receiving reliable information about his involvement in the distribution of methamphetamine. INET surveilled and monitored Chambers activity and, on February 16, 2016, followed him to Albany, Oregon where they observed him meeting with a methamphetamine dealer.
On his return trip to Eugene, Chambers’ vehicle was stopped and searched. A drug dog alerted to a container in his vehicle and he had $3,563 in cash on his person and a list of eleven firearms with prices. His residence was then searched pursuant to a warrant, and a safe with $9,500 cash and a small amount of methamphetamine was found. The next day, detectives found and executed a search warrant on Chambers’ other vehicle in Eugene, and discovered 4.7 pounds of methamphetamine, scales and packaging material.
Chambers was convicted previously in Oregon of second-degree assault in 2002, delivery of methamphetamine in 2007, and attempted first-degree assault in 2008. While serving an earlier prison sentence, Chambers committed multiple additional assaults. Chambers was known to law enforcement as a member of the West Side Gangsters.
This case was investigated by the Lane County Interagency Narcotics Team and the Eugene Resident Agency office of the FBI. The case was prosecuted by Jeffrey Sweet, Assistant United States Attorney for the District of Oregon.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida Announces ResignationRead the Press Release
MIAMI – Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, announced today that that he will step down from his post on March 3, 2017. Mr. Ferrer tendered his resignation to President Donald J. Trump and Attorney General Jeff Sessions.
“There has been no greater honor than to serve and protect the same community that opened its arms to my parents when they immigrated to this country,” stated U.S. Attorney Ferrer. “For almost seven years, I have been blessed to work alongside the remarkable men and women in the U.S. Attorney’s Office, community leaders, and our federal, state and local law enforcement partners who strive tirelessly to combat crime and promote a safer, stronger and more united District. I am incredibly proud of all that we have been able to accomplish together, in and out of the courtroom, including building meaningful bonds of trust with the diverse community we serve.”
Ferrer was nominated by President Barack Obama and unanimously confirmed by the U.S. Senate in 2010 to serve as the chief federal law enforcement officer for the Southern District of Florida. In 2014, Ferrer was appointed by Attorney General Eric Holder to serve a two-year term on the Attorney General’s Advisory Committee (AGAC). In January 2016, Ferrer was reappointed to serve on the AGAC by Attorney General Loretta Lynch. Since his appointment as U.S. Attorney, Mr. Ferrer has led the nation’s third largest U.S. Attorney’s Office as a dedicated public servant.
During Mr. Ferrer’s tenure, the U.S. Attorney’s Office has indicted over 11,000 cases and charged more than 18,000 defendants for their participation in criminal activity impacting the Southern District of Florida and beyond. With some of the busiest litigators in the country, the Office consistently handles more trials than almost every other office. Since 2010, the Office has conducted almost 1,000 trials. In addition, the Office has seized, forfeited, and collected millions of dollars as part of its efforts to recover money and assets and seek restitution for crime victims. Between 2010-2016, the Office collected approximately $591 million in criminal and civil actions. During this same time period, the Office, working with partner agencies, has collected over $384 million in criminal and civil forfeitures. This is remarkable considering the Office’s annual budget is approximately $43 million.
Protecting Our Nation’s Security
From the outset of his appointment as the District’s U.S. Attorney, Mr. Ferrer’s top priority has been prosecuting and deterring acts of terrorism.
- Since his creation of the Office’s National Security Section in 2013, there has been a threefold increase in the number of active national security cases prosecuted by the Office.
- In support of the National Security mission, Mr. Ferrer created the Department’s First National Security Intelligence Unit at a District level to provide crucial, real time support to time sensitive national security, transnational organized crime and international narcotics matters.
In addition, National Security prosecutors:
- Convicted a man who conspired to raise funds and send them abroad in support of the Pakistani Taliban;
- Convicted a South Florida resident who attempted to use a weapon of mass destruction on a public beach and provide material support to a terrorist organization;
- Obtained lengthy prison sentences against two terror group operatives who conspired and attempted to raise funds and recruits for the al-Qaeda group in Somalia and an affiliate in Syria;
- Secured the maximum statutory sentences for two South Florida brothers who were working to stage a terrorist attack in New York;
- Disrupted a significant number of home grown violent extremists inspired by terror groups to try to carry out terror attacks; and
- Charged the individual alleged to have killed five people and wounded others at Fort Lauderdale-Hollywood International Airport with federal offenses that authorize penalties up to and including the death penalty.
Combatting Fraud
Throughout Mr. Ferrer’s tenure, he focused on the broad range of evolving financial crimes that plague the district, including health care fraud, identity theft, complex investment and securities frauds, Ponzi schemes, boiler room operations, bank fraud, corporate fraud, broad-scale mortgage fraud, computer fraud, tax fraud, unemployment insurance fraud, and bankruptcy fraud.
Health Care Fraud – Since 2010, the Office has been a nationwide leader in health care fraud prosecutions, charging 658 health care fraud cases and 1,230 defendants. In 2016, the Office was part of a multi-district team that charged the largest single criminal health care fraud case ever brought against individuals by the Department of Justice (DOJ).
Identity Theft Schemes - In 2012, Mr. Ferrer created the South Florida Identity Theft Strike Force to aggressively attack rampant identity tax refund fraud in the district. This collective law enforcement initiative evolved into a permanent Stolen Fraud (SIF) Strike Force to combat the multi-faceted criminal enterprises that use stolen personal identifying information to commit other crimes. Since the inception of the Strike Force, the U.S. Attorney’s Office has charged more than 600 defendants responsible for over $400 million in intended losses.
Diverse Financial Fraud Schemes – The Office has also been a leader in financial fraud prosecutions. The Office’s prosecutions and recoveries included:
- Full restitution to the defrauded investors of a $1.2 billion Ponzi scheme led by defendant and former high profile civil attorney Scott Rothstein;
- A 40-year prison sentence and over $300 million forfeiture judgment against the orchestrator of a $300 million-dollar fraud scheme involving the sales of vacation rental units;
- The conviction of the owner of a for profit college that orchestrated a scheme to defraud federal loan programs of $25 million;
- A sentence of more than 5 years in prison for the former mayor of North Miami following her conviction at trial for orchestrating an $8 million mortgage fraud scheme; and
- The first extradition of a Jamaican national for his role in a lottery scam targeting senior citizens in the U.S.
In addition, the Southern District is the only Office with an Environmental Crimes Unit outside of Main Justice that investigates and prosecutes criminal violations of environmental and wildlife protection laws. During Mr. Ferrer’s tenure, the Unit has:
- Obtained the largest-ever criminal penalty against a company for deliberate pollution by a seagoing vessel;
- Prosecuted corporations and individuals that violated hazardous material guidelines and illegally applied pesticides resulting in injuries to a child; and
- Convicted individuals who filed approximately $1.5 million in fraudulent reimbursement claims related to the Deepwater Horizon explosion.
Fighting Public Corruption and Civil Rights Violations
Mr. Ferrer’s commitment to holding those accountable who fail to uphold their duties and betray the public trust and deprive our citizens of the equal protections they deserve is unwavering. A few noteworthy examples of the Office’s support of this commitment include:
- Criminal convictions related to the Opa-Locka corruption investigation;
- Over 160 individuals were convicted in corruption cases, including 33 federal officials, 22 state officials, 66 local officials, and 39 private citizens;
- The conviction of local officials included more than 30 police officers on corruption and/or civil rights charges;
- The criminal conviction of the former Mayor of the City of Sweetwater for using his elected position to facilitate a fraud scheme;
- Settlements and consent decrees with the Davie Fire Department and Palm Beach County School Board to resolve allegations of employment discrimination due to pregnancy; and
- In 2016, the Office, in conjunction with the Department of Justice, negotiated a comprehensive settlement agreement with the City of Miami and the Miami Police Department (MPD) following findings of excessive use of force through officer involved shootings. Under the terms of the settlement, MPD committed to comprehensive reforms to ensure constitutional policing and support public trust.
Thwarting Narcotics Trafficking
Mr. Ferrer increased the Office’s commitment to the prosecution of international drug traffickers and money launderers. In support of this mission, the Office:
- Created the first-in-the-nation BACRIM prosecution unit to combat the leaders and associates of Colombia’s largest and most influential criminal drug trafficking group. Since the unit’s inception, the Office has filed charges against hundreds of defendants associated with the BACRIMs. In addition, Mr. Ferrer became the first U.S. Attorney in history to travel to Colombia, where he met on two occasions with the nation’s president to support and encourage our collective enforcement efforts;
- Created the nation’s first Caribbean Basin initiative to tackle maritime narco-trafficking into the U.S., from that region. The Office has charged hundreds of defendants under this initiative. Between June and November of 2016, the Office, working with its federal law enforcement partners, brought criminal prosecutions based on the interception of over 20 metric tons of cocaine on the high seas;
- Obtained a 150-year prison sentence and $14 million forfeiture judgment against the head of an international narcotics trafficking and money laundering syndicate out of Madrid, Spain; and
- Continues to participate in the extradition and prosecution of alleged international drug traffickers and money launders, including the first extradition from Honduras, Joaquin Guzman Loera (“El Chapo”) from Mexico, and Guy Philippe from Haiti.
The Office also waged a battle against the scourges of pill mills, synthetic drugs, heroin, opiates, and performance enhancing drugs. As a result, the Office:
- Obtained the district’s first federal conviction for unlawful distribution of a controlled substance, Fentanyl, which resulted in death;
- Exposed the illegal pipeline of black market suppliers of performance enhancing drugs to professional athletes during the Biogenesis investigation;
- Thwarted the oxycodone crisis with the crack-down on “pill mills;” and
- Convened a Town Hall, with more than 100 concerned community attendees, to confront the heroin crisis.
Protecting Vulnerable Victims - Human Tracking and Child Exploitation
During Mr. Ferrer’s tenure, the Office continued its dedication to the protection of the most vulnerable members of society. As part of that commitment, the Office:
- Prosecuted over 84 offenders in 50 human trafficking cases;
- Obtained life sentences for two defendants convicted in the district’s first sex trafficking by fraud prosecution and successfully prosecuted the first sex trafficking case in the country based on extraterritorial jurisdiction; and
- Convicted traffickers and abusers who used deception to lure unsuspecting foreign university students into prostitution, preyed on minors in shelters and orphanages, used “sextortion” to induce teenage boys to send sexually explicit photographs and videos, and employed forced labor practices against farm workers.
A Commitment to Violence Reduction
Concerned with the rising tide of violence in our communities, particularly youth gun violence, in 2011, Mr. Ferrer created the Violence Reduction Partnership (VRP), a community-based, holistic, approach to violence reduction that focuses on enforcement, prevention, and the successful reentry of returning citizens into South Florida neighborhoods. The blueprint for the VRP consists of the simultaneous, vigorous pursuit of three prongs:
First Prong-Enforcement: Prosecutors are assigned to specific “hot spot” communities plagued by violence. Between 2011 and 2016, AUSAs filed more than 1,500 cases, involving firearms and violent crime, against more than 1,400 defendants. In addition, the Office:
- Convicted eight defendants charged for their participation in a large-scale armed drug trafficking operation that resulted in the seizure of body armor and assault rifles;
- Convicted the killers of a U.S. Postal Service letter carrier; and
- Prosecuted countless members and associates of the Latin Kings and other neighborhood violent-crime squads.
Second Prong – Prevention: U.S. Attorney Ferrer implemented an array of VRP initiatives that strive to prevent crime in violence plagued communities through mentorship, exposure to positive role models and early literacy development.
- Through the Pre-K Reading Program, Office staff partner with City Year Miami, local attorneys, law enforcement officers/agents, judges, and community volunteers to read to more than 1,200 students a month, in 23 district schools. Each child is given a free book at the end of the program. For many, this is the first book they have ever owned. In total, more than 11,000 books have been distributed to area students.
- Since 2013, the U.S. Attorney’s Office has also invited more than 2,500 students from 45 local schools to meet with prosecutors, inmates and courthouse staff to learn about the importance of making smarter choices in their lives.
Third Prong – Successful Reentry: The Office is committed to reducing recidivism by helping formerly incarcerated individuals successfully reintegrate and contribute to their communities. Reentry initiatives include:
- The Southern District of Florida’s first ever federal Reentry Court, the Court-Assisted Re-Entry (CARE) Initiative, a product of extensive collaboration between the U.S. Attorney’s Office, our U.S. District Court, U.S. Probation, the Federal Public Defender’s Office and others; and
- Reentry and Resource (“in-reach”) Meetings at the local and federal penal institutions that are led by Office representatives and have connected more than 2,000 inmates with much needed social services.
Community Outreach and Policing
Mr. Ferrer has also been an invaluable partner in the district’s efforts to improve relationships between law enforcement and the people they serve. As part of that effort:
- In 2016, during her Community Policing Tour, Attorney General Lynch attended a youth town hall in Miami-Dade and met with officers and students selected for the Peace Ambassadors’ Leadership Program, a pilot program supported by the U.S. Attorney’s Office that encourages students in high-crime communities to be "change agents" - to speak out against violence to their family and peers;
- Since 2015, the U.S. Attorney’s Office has partnered with the Miami-Dade Police Department (MDPD) to support monthly community resource fairs and food distribution events that have provided over 156 tons of free food and reached over 10,500 area residents; and
- Mr. Ferrer has also met directly with leaders and concerned members of the district’s diverse civic, faith-based, academic and law enforcement communities at mosques, temples, churches, schools, police departments and community centers to open channels of communication.
Civil Division
Under Mr. Ferrer’s leadership, Civil Division AUSAs worked on massive civil fraud investigations involving egregious false claims and novel issues. Civil Division attorneys reached countless multi-million dollar settlements, including:
- A record settlement of more than $250 million with more than 500 hospitals to resolve False Claims Act allegations related to the implantation of cardiac devices;
- The largest settlement ever against skilled nursing facilities nationally, $17 million, to resolve kickback allegations; and
- Walgreens agreed to pay a record settlement of $80 million for civil penalties under the Controlled Substances Act.
Appellate Division
The Office has one of the premier Appellate Divisions in the Department of Justice. During Mr. Ferrer’s tenure, the Appellate Division has won significant cases (in published and unpublished decisions), including several that decided issues of first impression. The Division has:
- Successfully argued before the Eleventh Circuit that the statute giving extraterritorial effect to the crime of sex trafficking by force, fraud, or coercion was a constitutional exercise of Congress's authority under the Foreign Commerce Clause; and
- Obtained en banc review of, and the overturning of an adverse panel decision that rendered unconstitutional subsection (d) of the Stored Communications Act, 18 U.S.C. § 2703(d), which permits a federal of state governmental entity to obtain historical cell site information from a telephone service provider without a warrant, in certain circumstances. After full en banc briefing and argument, Appellate Division AUSAs convinced the Eleventh Circuit that the Act did not violate the Fourth Amendment.
Two Managers of a Brooklyn Medical Clinic Indicted for Roles in $2.1 Million Fraud SchemeRead the Press Release
Two managers of a Brooklyn, New York medical clinic were charged in an indictment unsealed today related to their alleged participation in a $2.1 million fraud scheme involving medically unnecessary occupational therapy services.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Robert L. Capers of the Eastern District of New York, Special Agent in Charge Scott Lampert of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Office of Investigations, Special Agent in Charge Kathy A. Enstrom of Internal Revenue Service Criminal Investigation’s (IRS-CI) New York Office and New York State Medicaid Inspector General Dennis Rosen of the Office of the Medicaid Inspector General (OMIG) made the announcement.
Iezabel Zeltser, 52, of Brooklyn, was charged in an indictment filed yesterday in the Eastern District of New York with one count of conspiracy to commit health care fraud, one count of conspiracy to commit money laundering and three counts of money laundering. Rafael Gilkarov, 51, of Brooklyn, was charged in the indictment with one count of conspiracy to commit money laundering and three counts of money laundering. The defendants made initial appearances today, Feb. 15, at 2:30 p.m. EST before U.S. Magistrate Judge Cheryl L. Pollack of the Eastern District of New York.
According to allegations in the indictment, Zeltser and Gilkarov operated Evercare Occupational Therapy LLC, a Brooklyn medical clinic purported to provide medically necessary occupational therapy services to Medicare and Medicaid beneficiaries. The defendants allegedly paid patients to submit themselves to medically unnecessary therapy services provided by unlicensed aides. To conceal the scheme, Zeltser and Gilkarov allegedly used a skeleton crew of licensed occupational therapists to create fake medical charts. The defendants in turn laundered a substantial portion of the proceeds through shell companies, using the cash to enrich themselves and to pay kickbacks to the beneficiaries, the indictment alleges.
According to the indictment, Evercare submitted approximately $2.1 million in fraudulent claims to the Medicare and Medicaid programs for services which were not medically necessary or not provided and was paid approximately $1 million on those claims.
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
HHS-OIG, IRS-CI and the New York State OMIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. The case is being prosecuted by Trial Attorneys Debra Jaroslawicz and Richard A. Powers of the Criminal Division’s Fraud Section.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 3,000 defendants who have collectively billed the Medicare program for more than $11 billion. In addition, HHS Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Two Indicted for Allegedly Trafficking Fentanyl Laced HeroinRead the Press Release
PROVIDENCE – A federal grand jury in Providence on Tuesday returned a two-count indictment charging a Providence couple with allegedly trafficking fentanyl laced heroin.
United States Attorney Peter F. Neronha, Michael J. Ferguson, Special Agent in Charge of DEA, Colonel Ann S. Assumpico, Superintendent of the Rhode Island State Police, and Warwick Police Chief Colonel Stephen M. McCartney announce the indictment of Agustin Acevedo, a/k/a Daniel Martinez Suazo, 49, and Dismery Uceta, 42, of Providence, each on one count of conspiracy to possess with intent to distribute 100 grams or more of heroin and one count of possession with the intent to distribute more than 100 grams of heroin.
According to court documents and information presented to the court, in March 2016, as part of an ongoing drug trafficking investigation by DEA agents in Washington, DC, information was developed and provided to DEA agents in Rhode Island that led investigators to believe that Acevedo may be involved in the trafficking of illicit drugs into Rhode Island.
As part of the investigation by Rhode Island DEA agents and the Rhode Island DEA Drug Task Force, agents determined that Acevedo frequently rented vehicles for short periods of time. They determined that on April 29, 2016, Acevedo allegedly rented a vehicle in Rhode Island and then late the same day he and Uceta travelled to the Bronx, New York in the rented vehicle. They returned to Rhode Island early the next day. As the vehicle was returning to Rhode Island, DEA agents, conducting surveillance of the vehicle, reported to Rhode Island State Police that the vehicle was allegedly traveling on Route 95 at speeds of approximately 80 mph.
According to court documents, a RI State Trooper stopped the vehicle on Route 95 between exits 5 and 6 for speeding. A speeding citation was issued to the driver, Agustin Acevedo. It is alleged that during the traffic stop, a RI State Trooper observed a brick-like object wrapped in a plastic bag in plain view in an opened handbag on the floor of the vehicle. The occupants consented to a search of the vehicle and Uceta to a search of the handbag. A RI State Police K-9 gave a positive alert to the area near where the handbag was located. A field test of the brick-like object tested positive for heroin. Acevedo and Uceta were detained by DEA agents who also responded to the traffic stop.
On May 3, 2016, a Warwick Police Department Detective received the kilogram of suspected heroin for further analysis. He later identified the left index finger impression of Acevedo on the outer side of the kilogram wrapping.
Forensic testing at the New England Regional Laboratory for DEA revealed that the kilogram of heroin was laced with fentanyl and dipyrone (an analgesic).
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Acevedo and Uceta have been detained in federal custody since their arrest and initial appearance in U.S. District Court in Providence on a federal criminal complaint charging them with possession with intent to distribute 100 grams or more of heroin and conspiracy to possess with intent to distribute 100 grams or more of heroin.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Trophy Club Man Sentenced for Child Pornography ViolationsRead the Press Release
SHERMAN, Texas — A 29-year-old Trophy Club, Texas man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Jayce Craft pleaded guilty on July 28, 2016, to distribution of child pornography and was sentenced to 240 months in federal prison today by U.S. District Judge Amos L. Mazzant.
- to information presented in court, Craft came to the attention of law enforcement when it was discovered that an individual utilizing an online file hosting service and online accounts associated with his identity had uploaded child pornography into a cloud storage account. Agents obtained a search warrant for a residence in Trophy Club that was associated with the online activity, which was executed on Sep. 15, 2015. Agents seized electronic media belonging to Craft that was found to contain a substantial amount of child pornography. In addition, it was discovered that Craft had distributed child pornography to, and received files from, other individuals through the use of electronic mail accounts. As part of his plea, Craft admitted that the files depicted children, including prepubescent children, engaged in sexually explicit activity, as well as sadistic/masochistic abuse. Craft was indicted by a federal grand jury on Oct. 14, 2015, and charged with child pornography violations.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations, Flower Mound Police Department and Trophy Club Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller.
Three Springfield, Humansville Men Indicted for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Springfield, Mo., men and a Humansville, Mo., man were indicted by a federal grand jury today, in separate and unrelated cases, for receiving and distributing child pornography.
USA v. Ray
David William Ray, 39, of Springfield, was charged with receiving and distributing child pornography between Oct. 17, 2016, and Jan. 26, 2017.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cyber Crime Task Force.
USA v. Brockman
Jeromey P. Brockman, 39, of Springfield, was charged with receiving and distributing child pornography between Oct. 1, 2015, and Jan. 11, 2017.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cyber Crime Task Force.
USA v. Lane
Christopher James Lane, 32, of Humansville, was charged with receiving and distributing child pornography between Sept. 13 and Sept. 15, 2016.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crime Task Force and the Polk County, Mo., Sheriff’s Department.
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
Project Safe Childhood
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."
Three Men Arrested, Charged with Conspiring to Distribute Cocaine in Beardstown AreaRead the Press Release
SPRINGFIELD, Ill. – A federal grand jury has charged three men with conspiracy to distribute more than 500 grams of cocaine in central Illinois, specifically in the Beardstown area, and related drug charges. Those charged are Hector Lopez-Herrera, of the 12000 block of Ill. Route 125, Beardstown; Modesto Favela-Chaidez, Chicago, and Jose Rolando Acosta-Hernandez, of the 1000 block of Garm Ave., Beardstown.
The three men were arrested yesterday, in Beardstown, and made their initial appearance in federal court this afternoon before U.S. Magistrate Judge Tom Schanzle-Haskins. The defendants waived detention hearings and were ordered to remain in the custody of the U.S. Marshals Service. Trial has been set for April 11, 2017, before U.S. District Judge Sue E. Myerscough.
The indictment alleges that from May 2016 to Jan. 10, 2017, the three conspired to distribute more than 500 grams of cocaine obtained from Chicago to others in the Beardstown area. According to allegations in the indictment, as part of the conspiracy, Lopez-Herrera would arrange for Favela-Chaidez to deliver cocaine from the Chicago area to co-conspirators in Cass county, including Acosta-Hernandez. Prior to and after delivery of cocaine by Favela-Chaidez, Lopez-Herrera would allegedly accept payment for the cocaine delivered to Acosta-Hernandez and others.
The charges are the result of investigation by the Drug Enforcement Administration; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Illinois State Police; the Central Illinois Enforcement Group; Illinois National Guard, Macomb Police Department; the McDonough County Sheriff’s Office; and, the Cass County Sheriff’s Office. Assistant U.S. Attorney Gregory M. Gilmore is prosecuting the case.
If convicted, the maximum statutory penalty for each offense charged is prescribed by Congress and is provided here for informational purposes, as sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors. For conspiracy to distribute more than 500 grams of cocaine, the statutory penalty is five to 40 years in prison; if a defendant has a prior felony drug conviction, the penalty is 10 years to life in prison.
Lopez-Herrera and Favela-Chaidez are also each charged with two counts of distribution and possession of cocaine with intent to distribute; Acosta-Hernandez is charged with four counts of distribution of cocaine. The statutory penalty for each count of these offenses, if convicted, is up to 20 years in prison; with a prior felony drug conviction, the statutory penalty is up to 30 years in prison.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Three Arrested in San Antonio Charged in Connection with Shooting of U.S. Mail CarrierRead the Press Release
This morning, federal and local authorities arrested three San Antonio residents without incident in connection with a mail theft scheme that involved the shooting of a U.S. Mail carrier last week in Spring Branch, TX, announced United States Attorney Richard L. Durbin, Jr.; Inspector in Charge Adrian Gonzalez, U.S. Postal Inspection Service, Houston Division; and, San Antonio Police Chief William McManus.
A federal criminal complaint filed this afternoon charges 22–year-old Bradley A’Hearn and 26–year-old Sara Richford with one count of assault of a federal agent; one count of carjacking; one count of violating the Hobbs Act (interference with Commerce by violence); and, one count of mail theft. A second criminal complaint filed this afternoon charges 40-year-old Piper Lee with one count of aiding and abetting the assault of a federal officer.
The affidavit in support of the criminal complaints alleges that on February 11, 2017, A’Hearn shot a female U.S. Mail carrier as she was delivering mail to cluster of mailboxes in Spring Branch, TX, when she would not give him her cell phone. The victim is recovering from a gunshot wound to her leg. A’Hearn left the scene in the victim’s pickup truck which still contained the victim’s purse and personal effects as well as a considerable amount of U.S. Mail. Richford, driving a maroon/brown colored Toyota Venza, followed A’Hearn as he left the scene.
Furthermore, the complaint states that on February 13, 2017, a U.S. Postal Inspection Service agent near the site of the shooting recognized the Toyota Venza vehicle. The agent, while attempting to stop the vehicle, was allegedly fired upon by A’Hearn. Other law enforcement personnel, who subsequently joined the pursuit, were also fired upon by A’Hearn. The defendants managed to avoid capture.
The complaint also alleges that on February 14, 2017, agents were notified by employees of a local motel of the presence of a large amount of U.S. Mail and a handgun in one of their rooms. discovered mail, originating from locations across the country, was destined for addresses in the Spring Branch, TX area. That same day, not far from the motel, investigators recovered the abandoned Toyota Venza. From motel surveillance footage, investigators discovered another vehicle being utilized by the defendants, a yellow Volkswagen. Agents observed the defendants leave the motel in the yellow Volkswagen and requested San Antonio police to initiate a stop of the vehicle. defendants failed to yield to SAPD officers and the occupants began shooting at the police. Ultimately, the defendants abandoned their vehicle inside a parking garage of a local mall and managed to elude capture by law enforcement.
At approximately 9:00 this morning, San Antonio police officers, acting on information provided to investigators, arrested the defendants without incident in a parking lot of a different local motel.
Upon conviction, A’Hearn and Richford face up to 20 years in federal prison for assault of a federal agent; up to 25 years in federal prison for carjacking; and, up to 20 years in federal prison for violating the Hobbs Act; and up to five years in federal prison for mail theft. Lee faces up to 20 years in federal prison upon conviction for aiding and abetting the assault of a federal officer).
All three defendants are scheduled for an initial appearance tomorrow at 11:00am in front of U.S. Magistrate Judge Henry J. Bemporad. Detention hearings are likely to be scheduled for next week.
It is important to note that a criminal complaint is merely a charge and should not be evidence of guilt. The defendants are innocent until proven guilty in a court of law.
This matter is being investigated by the U.S. Postal Inspection Service together with the San Antonio Police Department, Texas Department of Public Safety, Texas Rangers, Comal County Sheriff’s Office, Bulverde Police Department, Federal Bureau of Investigation, U.S. Marshals Service and Homeland Security Investigations (HSI). Assistant United States Attorneys Bettina Richardson and Christina Playton are prosecuting this case on behalf of the Government.
Swansea Man Involved in Fatal Car Accident Charged with Possessing Firearm as a FelonRead the Press Release
A Swansea man has been charged in a federal criminal complaint with possessing a firearm as a convicted felon. Today, the U.S. District Court in East St. Louis ordered, Eric L. Eiskant, 33, detained without bond pending indictment. The alleged violation took place on January 20, 2017, in connection with a fatal vehicle accident that occurred in the area of St. Clair Avenue and 79th Street in East St. Louis. If convicted, Eiskant faces a term of imprisonment of up to ten years, a fine up to $250,000, and a term of supervised release of up to three years.
A criminal complaint is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
The investigation is ongoing and is being conducted by the Illinois State Police with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is assigned to Assistant United States Attorney Laura V. Reppert.
St. Davids Man Charged with Conspiracy to Commit Fraud and Misuse of VisasRead the Press Release
Larry Gauger, 45, of Saint Davids, Pennsylvania, was charged today by Information[1] with one count of conspiracy to commit fraud and misuse visas and one count of fraud and misuse of visas, announced Acting United States Attorney Louis D. Lappen. The information alleges that in or about 2010 to on or about December 2014, Gauger, a Regional Manager at Asplundh Tree Experts, Inc., directed his personnel to knowingly accept false identification from hired employees. This acceptance of false documentation facilitated the re-hiring of Asplundh Tree Experts, Inc. employees who were determined previously by Homeland Security Investigations to be aliens unauthorized to work in the United States.
If convicted the defendant faces a maximum possible sentence of ten years’ imprisonment, a $500,000 fine, up to three years supervised release, and a $200 special assessment.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations (“HSI”) and is being prosecuted by Special Assistant United States Attorney Josh A. Davison and Assistant United States Attorney L.C. Wright.
[1]An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Sierra Nevada Corporation Pays $14.9m to Settle Allegations of Improper Contract BillingsRead the Press Release
SACRAMENTO, Calif. — Sierra Nevada Corporation (SNC) has paid $14.9 million to resolve allegations that it violated the federal False Claims Act when it knowingly misclassified certain costs, resulting in inflated overhead rates paid to SNC pursuant to various government contracts, U.S. Attorney Phillip A. Talbert announced.
SNC is a Nevada corporation that provides services to agencies of the United States pursuant to various defense and space contracts. The improper charges resolved here resulted from SNC misclassifying certain direct contract costs and Manufacturing and Production Engineering costs as Independent Research and Development (IR&D) costs, and charging certain IR&D costs in the wrong cost accounting period. This improper characterization of costs artificially inflated General & Administrative overhead rates paid to SNC across its federal contracts and resulted in overcharging federal agencies. The government relies on contractors to accurately classify both the nature and timing of contract costs in order to properly calculate overhead rates and appropriately pay for work on government programs.
“This settlement illustrates our commitment to protect the integrity of federal procurement contracting,” said U.S. Attorney Phillip A. Talbert. “We will hold federal contractors to the highest standards of accuracy to ensure that federal agencies are not overcharged for products and services.”
“The integrity of our procurement systems is required by the American public, who demand that tax dollars are used responsibly,” said Chris Hendrickson, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Western Field Office. “DCIS and our law enforcement partners are committed to protecting precious resources needed to support our soldiers, sailors, airmen and Marines.”
This case was handled by Assistant U.S. Attorney Catherine J. Swann, with assistance from the Defense Contract Management Agency, the Defense Contract Audit Agency, the National Aeronautics and Space Administration, and DCIS. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Serial Armed Robbers Convicted in Federal CourtRead the Press Release
Two men were convicted yesterday for their roles in three armed robberies of Dollar General stores in Detroit, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Division, and Chief James Craig, Detroit Police Department whose departments led the collaborative investigation into this armed robbery crew as part of the Detroit One initiative.
Convicted by federal jury verdict after a week-long trial were:
Dwayne Dupree, 30, of Detroit, of three counts of robbery and three counts of using a firearm in furtherance of a crime of violence; and
Shawn Pearson, 23, of Detroit, of three counts of robbery and three counts of using a firearm in furtherance of a crime of violence.
Facts at trial showed that the men’s crime spree started on December 17, 2014, when four armed robbers stormed into the Dollar General store at 13441 E. Seven Mile Road in Detroit. The robbers, with their identities concealed with hoodies, masks and gloves, took over the counter area of the store, holding store employees at gunpoint before making off with some of the store’s money. One of the four men was Pearson. He was assisted by Dupree, who acted as a lookout.
Less than three weeks later, on January 5, 2015, two armed masked men robbed the same Dollar General store, this time firing shots at the store manager as they made their getaway. Once again, Pearson was one of the armed robbers, while this time Dupree acted as both a lookout and getaway driver.
Then, on March 19, 2015, Pearson and Dupree acted as the armed robbers of the Dollar General store at 16004 Fenkell. On this occasion, the evidence showed that Dupree fired a shot into the air to scare the store employees to move faster in turning over the store’s money.
FBI Violent Crime Task Force, working in close collaboration with members of the Detroit Police Department, followed the evidence, including ballistic, phone, and social media information, to identify Dupree and Pearson and to solve these robberies.
"The Detroit One partnership focuses on criminals like this armed robbery crew, who endanger public safety and create a climate of fear." McQuade said. "By identifying and prosecuting the individuals and groups driving violence in Detroit, we hope to make the city a safe place to live and work."
“The defendants in this string of violent robberies were brazen in both terrorizing employees and placing the public in danger", said David P. Gelios, Special Agent in Charge, FBI Detroit Division. "Yesterday’s verdict demonstrates the value of the continuing investigative partnership between the FBI and the Detroit Police Department in our collaborative efforts to reduce violent crime in metropolitan Detroit and to keep our communities safe.”
The case was prosecuted by Assistant United States Attorneys Christopher Graveline and Michael Heesters.
Sacramento Woman Pleads Guilty to Making Counterfeit CurrencyRead the Press Release
RENO, Nev. – A California woman pleaded guilty today to making counterfeit $100 bills and spending the money at businesses in Northern Nevada, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. She faces the statutory maximum penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for June 5, 2017, before U.S. District Judge Miranda M. Du.
“It is a federal crime to make, forge, alter or counterfeit a Federal Reserve Note,” said U.S. Attorney Bogden. “Individuals who make counterfeit currency are attempting to cheat and cause damage to businesses and the U.S. economy. We will continue to protect the U.S. economy and seek prosecution of individuals who engage in counterfeiting currency.”
Yvonne Geneal Flores, 38, of Sacramento, Calif., was indicted on May 25, 2016. Co-defendant Thomas Michael Morla, 42, pleaded guilty to making counterfeit currency and was sentenced to serve 18 months in prison.
According to the plea agreement and court documents, from Oct. 7, 2015 to May 5, 2016, Flores and Morla manufactured and passed numerous counterfeit $100 bills at various businesses in Reno, Carson City, and Sparks. Law enforcement were alerted to the counterfeit bills after Hertz Rental Car filed a report about Morla in possession of an embezzled Mercedes in Carson City. At the time of his arrest, he was holding counterfeit money. Flores’s name was listed as one of the drivers on the Hertz rental contract and she too was arrested for possession of an embezzled vehicle. During the execution of a search warrant, law enforcement found over $6,000 in counterfeit bills, a laptop computer, scanner/printer, and other items Flores and Morla used to manufacture the counterfeit currency. The U.S. Secret Service has collected nearly $50,000 counterfeit $100 bills from businesses that can be attributed to Flores and Morla based on the similarities of the notes and the use of the same face and back plate numbers, and check letter/quadrant numbers.
The case was investigated by the U.S. Secret Service; and prosecuted by Assistant U.S. Attorney Brian L. Sullivan.
###
Sacramento Man Sentenced to 4 1/2 Years in Prison for Bank Fraud and Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. — Yasir Mehmood, 45, of Sacramento, was sentenced on Tuesday by U.S. District Judge John A. Mendez to four years and six months in prison for bank fraud and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Mehmood was an information technology professional who was hired in 2011 to fix the computer systems at a Marin County-based eyeglass retailer. Months later, long after his business relationship with the retailer ended, and without authorization, he accessed hundreds of the retailer’s customer records, which included credit and debit card numbers, associated security codes, and personal identification information (names, telephone numbers, addresses and email addresses). Mehmood used these customer records to purchase products and gift cards and to process fraudulent merchant transactions with payments transferred to bank accounts controlled by him. Mehmood also fraudulently registered websites and made false online job postings to capture personal and financial information of online purchasers and job seekers.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “We are working closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those responsible for complex identity fraud schemes and to protect postal customer’s mail and personal information from theft.”
In 2013, while on pretrial release, Mehmood cut his ankle monitor and fled from authorities before being arrested by the Sacramento County Sheriff’s Department.
This case was the product of an investigation by the U.S. Postal Inspection Service with assistance from the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Sacramento County Sheriff’s Department. Assistant U.S. Attorney Jeffrey A. Spivak and Trial Attorney Manish Kumar from the Department of Justice’s Antitrust Division prosecuted the case.
Sacramento Man Found Guilty in Scheme to Defraud American Express and Account Holders NationwideRead the Press Release
SACRAMENTO, Calif. — After a four-day trial, a jury found Mihran Melkonyan, 36, of Sacramento, guilty on Tuesday of 24 counts of wire fraud and two counts of mail fraud related to a scheme to commit credit card fraud by operating phony online businesses, U.S. Attorney Phillip A. Talbert announced.
Co-defendant Ruslan Kirilyuk, 39, of Beverly Hills, failed to appear at trial, and a bench warrant was issued for his arrest. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt. On December 15, 2014, co‑defendant Rouslan Akhmerov, 42, of Studio City, pleaded guilty to one count of access device fraud for his participation in the scheme. He is set to be sentenced on March 21, 2017.
According to evidence presented at trial, between approximately October 5, 2011, and March 5, 2014, Melkonyan worked with Akhmerov and others in a credit card billing scheme that involved creating approximately 68 fraudulent online companies established with the sole purpose of fraudulently charging approximately 119,000 stolen credit card numbers. In total, the members of the scheme billed the stolen credit card numbers for over $3.4 million in unauthorized charges.
As established at trial, to create the fraudulent companies, the members of the scheme obtained over 200 stolen report cards from the San Juan Unified School District. Those report cards had student information on them such as names and social security numbers. Using that information, Melkonyan and others created fraudulent companies with names such as CVS Store, Walt Mart (sic), and Chevran (sic).
Melkonyan and others then opened merchant accounts with American Express using those names and false identities. Working with co-conspirators in Russia, Melkonyan and others used those merchant accounts to process American Express credit card charges for the fraudulent businesses.
Once American Express credited the businesses’ merchant accounts for the fake sales, Melkonyan and others transferred the money from the merchant accounts to bank accounts they controlled that had been opened in other people’s identities. In some cases, Melkonyan directed foreign students visiting the United States on J-1 student visas to open bank accounts. When the students left the United States, Melkonyan took over the bank accounts to use for collecting fraud proceeds.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Michael D. Anderson and Matthew M. Yelovich are prosecuting the case.
Melkonyan is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on May 5, 2017. Melkonyan faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Rupert Man Sentenced to 25 Years for Producing Child PornographyRead the Press Release
POCATELLO – Erik Rodriguez, 25, of Rupert, Idaho, was sentenced yesterday in United States District Court to 300 months in prison for producing child pornography, followed by 15 years of supervised release, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Rodriguez to pay restitution for counseling costs of his victim. Rodriguez pleaded guilty to the charge on August 24, 2016.
According to the plea agreement, Homeland Security Investigations special agents downloaded a sexually exploitative video of a minor from an individual later identified as Rodriguez in April 2015. After a search of Rodriguez’s home revealed numerous computers and electronic devices being used to view and store child pornography, Rodriguez admitted to possessing and producing child pornography. Agents found approximately 133 images and 302 videos of child sexual abuse material on Rodriguez’s devices, in addition to the sexually explicit images Rodriguez produced of a girl under 10 years old.
The case was investigated by U.S. Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI).
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Prince George’s County Man Pleads Guilty to Assault with a Dangerous WeaponRead the Press Release
Greenbelt, Maryland – Joseph Axzavis Stewart, Sr. age 58, of Upper Marlboro, Maryland, pleaded guilty on February 14, 2017, to assault with a dangerous weapon, and to possession of a dangerous weapon with intent to injure.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Chief of Police Robert D. MacLean of the U.S. Park Police.
According to Stewart’s plea agreement, on July 31, 2016, at approximately 9:00 p.m., Stewart stabbed an individual who was seated in the passenger seat of a friend’s truck at a construction site near the Baltimore-Washington Parkway, where the friend worked. Stewart, who worked for the same construction company, previously had a brief romantic relationship with the individual’s friend. After other employees from the construction company intervened, Stewart fled the scene in a gray truck. The victim was transported to hospital, suffering from stab wounds to the arm and back. As a result of the stabbing, the victim underwent several surgeries, and lost feeling in the right arm. Law enforcement executed a search warrant and recovered the knife Stewart used to stab the victim from Stewart’s gray truck.
As part of his plea agreement, Stewart will be required to pay restitution in the full amount of the loss of the victim.
Stewart and the government have agreed that if the Court accepts the plea agreement Stewart will be sentenced between eight and 12 years in prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for July 5, 2017 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the U.S. Park Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Hollis R. Weisman and Thomas M. Sullivan, who are prosecuting the case.
Pottstown Man Charged with Conspiracy to Commit Fraud and Misuse of VisasRead the Press Release
Jude Solis, 50, of Pottstown, Pennsylvania, was charged today by Information[1] with one count of conspiracy to commit fraud and misuse visas and one count of fraud and misuse of visas, announced Acting United States Attorney Louis D. Lappen. The information alleges that in or about 2010 to on or about December 2014, Solis, a Supervisor at Asplundh Tree Experts, Inc., knowingly accepted and received false identification from hired employees. This acceptance of false documentation facilitated the re-hiring of Asplundh Tree Experts, Inc. employees who were determined previously by Homeland Security Investigations to be aliens unauthorized to work in the United States.
If convicted the defendant faces a maximum possible sentence of ten years’ imprisonment, a $500,000 fine, up to three years supervised release, and a $200 special assessment.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations (“HSI”) and is being prosecuted by Special Assistant United States Attorney Josh A. Davison and Assistant United States Attorney L.C. Wright.
[1]An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Illegal Re-entry After DeportationRead the Press Release
Bertin Barcenas-Jaimes, of Philadelphia, PA, was charged today by Indictment with illegal reentry after deportation, announced Acting United States Attorney Louis D. Lappen. The indictment alleges that on or about January 12, 2017, Barcenas-Jaimes, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about September 28, 2007 and July 23, 2013.
If convicted the defendant faces a maximum possible sentence of twenty years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Denise S. Wolf.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of Recycling Business Pleads to Tax FraudRead the Press Release
CHARLOTTE, N.C. – Matthew Moretz, 31, of Taylorsville, N.C., appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to one count of filing a false tax return, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined in making today’s announcement by Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to filed documents and today’s court proceedings, from April 2010 to March 2011, Moretz collected unemployment income from the North Carolina Division of Employment. However, beginning in or about March 2010 and continuing through in or about 2013, Moretz was self-employed as the owner of MJM Recycling, a scrap metal business. From tax year 2010 through tax year 2013, Moretz concealed significant personal earnings from his business from the IRS. During the relevant time period, Moretz failed to disclose or provide records from all of bank accounts to his bookkeeper and tax return preparers.
According to filed documents and today’s court proceedings, for years 2010 through 2013, Moretz earned additional personal income totaling approximately $529,622.44 that Moretz failed to report on his U.S. Individual Income Tax Returns Form 1040 filed with the IRS. Specifically, Moretz failed to report cash deposits totaling $99,344.39, $194,675.59, $124,432.58, and $111,169.88, respectively, for 2010 through 2013. As a result of the unreported taxable income, Moretz had additional tax due and owing of approximately $116,409.38 from 2010 to 2013.
Moretz was released on bond after his plea hearing. The false tax return charge carries a maximum prison term of three years and a $250,000 fine. As part of his plea agreement, Moretz has agreed to pay restitution of $116,409.38 to the IRS.
The investigation was led by IRS-CI. Assistant U.S. Attorney Jenny G. Sugar, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Ossipee Man Pleads Guilty to Fentanyl ConspiracyRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced that Jeffrey Lamarche, 39, of Ossipee, New Hampshire, pleaded guilty in federal court today to one count of conspiracy to possess with intent to distribute fentanyl.
Information based on court filings and statements made in court established that on May 24, 2016, Lamarche was a passenger in a vehicle stopped by a New Hampshire State Trooper on the Exit 4 ramp off Interstate 95. During a consensual search, the trooper recovered approximately 44.6 grams of fentanyl and 5.8 grams of cocaine from Lamarche.
A sentencing hearing has been scheduled for 10 a.m. on May 31, 2017.
United States Attorney Rice stated that, “Fentanyl is responsible for the vast majority of overdoses deaths in New Hampshire. My office will continue to work with our law enforcement partners to prosecute individuals who are responsible for distributing this deadly drug.”
The case was investigated by the New Hampshire State Police and is being prosecuted by Assistant United States Attorney Georgiana L. Konesky.
###
Newfoundland Woman Charged with Bankruptcy FraudRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Linda Ferris, age 55, of Newfoundland, Pennsylvania, was charged in a criminal information filed in U.S. District Court in Scranton charging her with knowingly making a false statement during her bankruptcy case.
According to United States Attorney Bruce D. Brandler, Ferris filed for bankruptcy in July 2013 and did not disclose all of her assets. The information alleges that at a Chapter 7 Bankruptcy hearing in Wilkes-Barre in September 2013, Ferris testified falsely under oath that her bankruptcy schedules were accurate and that she had disclosed all of her assets when, in fact, she knew that she received approximately $194,000, which was not listed on her bankruptcy schedules.
The charges stem from an investigation by the Federal Bureau of Investigation and the United States Trustee’s Office. Assistant United States Attorney Evan Gotlob is prosecuting the case.
The government also filed a plea agreement signed by the defendant which is subject to the approval of the court.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is five years of imprisonment, a term of supervised release following imprisonment, and a maximum fine of $250,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
New Milford Man Sentenced to Prison for Federal Firearms OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LEONARD SIKORSKI, 61, of New Milford, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 12 months of imprisonment, followed by one year of supervised release, for possessing a shotgun with an obliterated serial number.
According to court documents and statements made in court, in September 2015, SIKORSKI transported three rifles, two shotguns and 1,561 live rounds of ammunition to a pair of storage lockers he rented in Danbury. On October 22, 2015, SIKORSKI admitted to investigating agents that he had placed several firearms in those storage lockers, and gave the agents consent to search and seize the items. One of the items, a 12 gauge Remington shotgun, had an obliterated serial number.
SIKORSKI agreed to forfeit and abandon the firearms and ammunition seized from his storage lockers based on federal laws barring unlawful users of controlled substances from possessing firearms. SIKORSKI also agreed to surrender to the FBI five additional handguns and two additional rifles seized by the Naugatuck and New Milford police during separate car stops of SIKORSKI.
On October 18, 2016, SIKORSKI pleaded guilty to one count of possession of a firearm bearing an obliterated serial number.
SIKORSKI is currently in state custody serving a sentence for illegally possessing explosives. Judge Arterton ordered SIKORSKI’s federal sentence to run concurrently with his state sentence, which is estimated to conclude in April 2018.
This matter was investigated by the Federal Bureau of Investigation, Connecticut State Police and New Milford Police Department. The case was prosecuted by Assistant U.S. Attorney Henry Kopel.
New Jersey Minor Waives Adult Certification and Pleads Guilty to Making Bomb Threats to Sul Ross State University and the Big Bend Regional Medical Center in Alpine, TexasRead the Press Release
In Midland, a New Jersey minor waived adult certification and pleaded guilty to federal charges in connection with bomb threats to Sul Ross State University (SRSU) and the Big Bend Regional Medical Center (BBRMC) in Alpine as well as threats to a former State Representative last September announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
This afternoon, U.S. District Judge Robert A. Junell granted a request by 17–year-old Nicholas Kyle Martino of Sewell, Washington Township, NJ, to be prosecuted as an adult in federal court. Afterwards, Martino appeared before United States Magistrate Judge David Counts and entered guilty pleas to four counts of interstate threats to injure persons.
Information provided in court revealed that Martino engaged in “SWATing” schemes. “SWATing” is the term commonly used to describe an act of tricking law enforcement or first responders into dispatching emergency resources based on a hoax threat.
Martino admitted to making two phone calls to the Brewster County Sheriff’s Office on September 8, 2016, and making a hoax bomb threat to SRSU. Approximately two hours later, Martino followed up with a phone call to the BBRMC threatening to kill everyone in the hospital. Those malicious communications occurred on the same day law enforcement and first responders were responding to an active shooter at the Alpine High School wherein one student received a non-life threatening gunshot wound and the shooter committed suicide.
Martino also admitted to communicating threats via Twitter on September 10, 2016, to kill former Texas State Representative Pete Gallego and his family as well as another threat to bomb SRSU.
Each charge calls for up to five years in federal prison. Sentencing is scheduled for May 10, 2017, before Judge Junell. Martino has remained in federal custody since his arrest at his residence on December 1, 2016.
This investigation was conducted by agents with the Federal Bureau of Investigation in Midland, Philadelphia (PA), Eau Clare (WI), Nashville (TN), and Seattle (WA); Brewster County Sheriff’s Office; Washington Township Police Department (NJ); Menomonie Police Department (WI); Halifax Regional Police (Nova Scotia, Canada); Wake Forest Police Department (NC); Volusia County Sheriff’s Department (FL); Clermont County Sheriff’s Department (OH); and, the Union Township Police Department (OH). Assistant United States Attorney James J. Miller, Jr., and Debra Kanof are prosecuting this case on behalf of the Government.
Nearly Six Kilos of Heroin Seized; Two DetainedRead the Press Release
PROVIDENCE – An investigation into the trafficking of heroin in Rhode Island has resulted in the seizure of nearly six (6) kilograms of heroin, allegedly brought to Rhode Island from New York, and the arrest of two individuals, announced United States Attorney Peter F. Neronha, Michael J. Ferguson, Special Agent in Charge of the DEA; Central Falls Police Chief Colonel James J. Mendonca; and Cranston Police Chief Colonel Michael J. Winquist.
On Tuesday, Yesid Antonio Simanca-Pena, 40, of Central Falls, and Luis Mercado, 45, address unknown, were ordered detained in federal custody by U.S. District Court Magistrate Judge Patricia A. Sullivan on federal criminal complaints charging each with conspiracy to possess with intent to distribute one kilogram or more of heroin and one count of possession with the intent to distribute 1kilogram or more of heroin.
It is alleged that prior to February 13, 2017, a person assisting DEA was in negotiations with Mercado and Simanca-Pena to be provided with five (5) kilograms of heroin. These negotiations led to a late afternoon meeting on Monday, February 13, at Simanca-Pena’s Central Falls residence. Shortly after the person assisting DEA arrived by vehicle at the residence, it is alleged that Simanca-Pena placed one (1) kilogram of heroin on the floor of the vehicle. Simanca-Pena was immediately taken into custody and the heroin was seized by DEA agents. Soon after, DEA, DEA Task Force agents, Central Falls Police and Cranston Police executed a court authorized search of Simanca-Pena’s residence where they arrested Mercado and seized in excess of an additional four (4) kilograms of heroin.
A federal criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Muncie building commissioner indicted on corruption-related chargesRead the Press Release
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today that the building commissioner for the City of Muncie, Indiana, has been indicted on charges of wire fraud, theft, and money laundering. The arrest is part of a year-long and on-going investigation by the United States Attorney’s Office, the Federal Bureau of Investigation, and the Internal Revenue Service, into payment for public works projects in Muncie. Craig Nichols, 38, Selma, Indiana, was arrested this morning and had his initial appearance this afternoon at the federal courthouse in Indianapolis.
“Public servants need to serve the public instead of serving themselves,” said Minkler. “When someone betrays the public’s trust by stealing tax dollars for personal enrichment, my office will identify, investigate and, if the evidence supports a charge, prosecute the individual who violates that sacred trust.”
Nichols has served as Muncie’s building commissioner since 2012, exercising authority over permitting, inspections and code enforcement for the city. The indictment alleges that Nichols abused his position of trust by using sham bidding practices and submitting fraudulent invoices to steer work to his companies, and then bill Muncie more than $376,000 for work his company either never performed or performed at inflated prices.
“Seeking out and investigating public officials who exploit their official position for personal gain ranks number one on the FBI’s criminal priorities list and is the sole purpose of the Indiana Public Corruption Task Force,” said FBI Special Agent in Charge W. Jay Abbott. “The indictment and arrest of the City of Muncie Building Commissioner Craig Nichols is one more step in an ongoing investigation which seeks to identify and bring to justice any and all public officials or private citizens who have committed federal crimes and victimized the tax paying citizens of Muncie, Indiana.
“Public officials engaged in personal financial gain with taxpayer funds can never be tolerated,” said IRS Criminal Investigation Special Agent in Charge, James Robnett. “Taxpayers expect government officials to serve their community not steal from them. IRS-Criminal Investigation, together with our law enforcement partners, is committed to investigating these frauds to keep our communities free of corruption.”
According to Assistant U.S. Attorney Tiffany J. McCormick who is prosecuting this case for the government, Nichols faces up to 20 years’ imprisonment if convicted of all charges.
An indictment is only a charge and not evidence of guilt. All parties are presumed innocent until proven otherwise in federal court.
Missouri Man Arrested, Charged with Osage City Bank RobberyRead the Press Release
WICHITA, KAN. – A Missouri man has been arrested and charged with robbing a bank in Osage City, Kan., U.S. Attorney Tom Beall said today.
Hunter Lee Prewitt, 28, Mountain Grove, Mo., was charged with one count of bank robbery. It is alleged that on Jan. 25, 2017, Prewitt robbed the Landmark National Bank at 106 South 6th Street in Osage City. According to court records, Prewitt gave a teller a note saying: “This a robbery. Give me all one hundreds, fifties and twenties.” He left the bank with cash and drove away in a white pickup truck.
Starting with a description of the truck, investigators obtained video surveillance photos and followed Prewitt’s movements including a stop at a gas station in Osage City before the robbery and a pawn shop in Lyndon, Kan. The Missouri Highway Patrol used that information to identify a 2003 Ford F-150 pickup registered to Prewitt. A crime intelligence analyst with the Kansas Bureau of Investigation conducted a search of law enforcement tag readers and he found more information on Prewitt and the truck. Prewitt was arrested outside Springfield, Mo.
If convicted, Prewitt faces up to 20 years in federal prison and a fine up to $250,000. Investigating agencies included the FBI, the KBI, the Osage County Sheriff’s Office, the Missouri State Highway Patrol and the Heart of America Computer Forensics Laboratory. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Mexican National Pleads Guilty to Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JUAN SALAMANCA-CHAVEZ, age 32, a native of Mexico, pled guilty today to a one-count Indictment charging him with illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to court documents, SALAMANCA-CHAVEZ, was previously removed from the United States on February 9, 2016. He was later found in the Eastern District of Louisiana on October 28, 2016 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
SALAMANCA-CHAVEZ faces a maximum term of imprisonment of two years, as well as a fine of $250,000. United States District Court Judge Ivan L.R. Lemelle set sentencing for April 5, 2017.
U.S. Attorney Polite praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Mexican National Pleads Guilty to Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JUAN SALAMANCA-CHAVEZ, age 32, a native of Mexico, pled guilty today to a one-count Indictment charging him with illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to court documents, SALAMANCA-CHAVEZ, was previously removed from the United States on February 9, 2016. He was later found in the Eastern District of Louisiana on October 28, 2016 and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
SALAMANCA-CHAVEZ faces a maximum term of imprisonment of two years, as well as a fine of $250,000. United States District Court Judge Ivan L.R. Lemelle set sentencing for April 5, 2017.
U.S. Attorney Polite praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Mexican National Found Near Crystal City 12 Days After Deportation Receives Three Years in Federal PrisonRead the Press Release
In Del Rio, a federal judge this week sentenced 34–year-old Salvador Sanchez-Reyes, a citizen of Mexico, to three years in federal prison for returning to the United States less than two weeks after deportation announced United States Attorney Richard L. Durbin, Jr., and Border Patrol Acting Chief Patrol Agent Matthew J. Hudak, Del Rio Sector.
According to court records, on March 7, 2016, U.S. Border Patrol agents discovered Sanchez-Reyes in the brush on the Simpson Ranch near Crystal City, TX. Sanchez-Reyes resisted arrest and attempted to escape, but was quickly apprehended at the scene. During sentencing on Monday, United States District Judge Alia Moses handed down a sentence above the guideline range to take into account his efforts to resist arrest and evade the Border Patrol agents.
On February 23, 2016, Sanchez-Reyes was formally deported from the United States through Laredo, TX.
On July 27, 20116, Sanchez-Reyes pleaded guilty to one count of re-entry after deportation.
This case was investigated by the U.S. Border Patrol and prosecuted by Assistant United States Attorney Paul T. Harle.
Metairie Man Charged with Being a Felon in Possession of a FirearmRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RANDOLPH B. MARTIN, age 39, of Metairie, was charged today in a one-count Bill of Information with violation of the Federal Gun Control Act.
According to the Bill of Information, on April 28, 1995, MARTIN was adjudicated guilty of burglary by the Superior Court of Gwinnett County, Georgia. Based on this adjudication, MARTIN was prohibited by federal law from possessing a firearm.
MARTIN faces a maximum term of imprisonment of ten years, a fine of $250,000 and three years of supervised release following any term of imprisonment.
U.S. Attorney Polite reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Secret Service, and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Loan "Mimi" Nguyen is in charge of the prosecution.
Marquette Woman Nets Prison Time for Check-Kiting SchemeRead the Press Release
MARQUETTE, MICHIGAN —Acting U.S. Attorney Andrew Birge announced today that Brooke Ferns (formerly Brooke Vernier), age 30, of Marquette, was sentenced to 18 months in prison followed by two years of supervised for conspiring to commit bank fraud. Chief U.S. District Judge Robert Jonker also ordered Vernier to pay $1,780,232.10 in restitution.
The conviction and sentence stemmed from an investigation by the FBI that revealed Vernier had engaged in an extensive check-kiting scheme targeting three Upper Peninsula financial institutions: the Ishpeming Community Federal Credit Union (now known as the TruNorth Federal Credit Union), the Peninsula Bank and the River Valley Bank. Check-kiting is a form of bank fraud in which a person writes a series of checks transferring funds among several bank accounts in order to create artificially inflated balances in one or more bank accounts.
The investigation revealed that Vernier became the president and sole owner of Oasis Operating, Inc., Oasis Fuels, Inc. and Refresh and Refuel, Inc. in 2010. These corporations supplied gasoline to gas stations in the Upper Peninsula and also owned several gas stations. Vernier also opened seven corporate bank accounts for these businesses at the Ishpeming Community Federal Credit Union, the Peninsula Bank and the River Valley Bank. When her businesses encountered financial difficulty, Vernier began what the FBI refers to as a "circular check-kiting" scheme. From January 2012 through September 2012, Vernier wrote thousands of checks transferring and attempting to transfer a total of approximately $145,000,000 amongst the seven corporate bank accounts. The vast majority of these inter-account transfers were executed in order to further the circular kiting scheme. During this same time period, the total business activity of Oasis Fuels, Inc., Oasis Operating, Inc., and Refresh & Refuel, Inc. was approximately $15,000,000.
In September 2012, the three financial institution discovered the circular check-kiting scheme. At that time, Vernier had 124 bad checks totaling approximately $5,200,000 in circulation. When the three financial institutions finally settled and closed all of Vernier’s corporate bank accounts, they discovered that they had suffered a loss of about $1,800,000. During the sentencing hearing, the government noted that the checks written by Vernier in furtherance of this scheme were typically for about $40,000. To keep the scheme running, Vernier had to write about 15 checks per day, every single day, for a total of more than 3,000 checks.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Maarten Vermaat.
END
Marion Prison Inmate Sentenced to an Additional 27 Months for Possessing a WeaponRead the Press Release
An inmate at the United States Penitentiary at Marion, Illinois, was sentenced today in United States District Court in Benton to a term of imprisonment of 27 months for possessing a homemade knife within that facility, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. Christopher Leon Hainta, 45, had previously pled guilty to an indictment charging him with that offense, which occurred on July 22, 2016.
At the time he possessed the weapon, Hainta was serving a 46 month sentence, imposed in the Western District of Oklahoma, for being a felon in possession of a firearm. The 27 month sentence was imposed consecutively to that sentence.
In addition to the term of imprisonment, Hainta was ordered to pay the United States fines and special assessments totaling $400 and was placed on a two year term of supervised release to follow his incarceration.
Hainta was immediately returned to the custody of the Federal Bureau of Prisons to resume serving his sentences.
The case was investigated by the Federal Bureau of Investigation with the assistance of the Federal Bureau of Prisons and was prosecuted by Assistant United States Attorney James M. Cutchin.
Manhattan U.S. Attorney Announces Federal Civil Rights Charges Against Correction Officer in Sexual Assault of Inmate at Bedford Hills Correctional Facility for WomenRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Anthony J. Annucci, Acting Commissioner of the New York State Department of Corrections and Community Supervision (“DOCCS”), announced today the unsealing of a criminal complaint charging a former New York State Correction Officer in the sexual assault of a female inmate (“Victim-1”) at the Bedford Hills Correctional Facility for Women (the “Bedford Facility”). JEFFREY GREEN, then a correction officer at the Bedford Facility, was charged with assaulting and forcing himself upon Victim-1 by licking, biting, kissing, fondling, groping, and restraining her against her will, in violation of her civil rights under the United States Constitution. GREEN was arrested today on charges contained in a Criminal Complaint and is expected to be presented in federal court later today.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Jeffrey Green, a former New York State correction officer at Bedford Hills Correctional Facility, entered a prison cell, pushed a defenseless female inmate against a wall, and sexually assaulted her. Green’s alleged predatory conduct not only betrayed his duty as an officer to protect those under his charge, but violated our Constitution. The protections of our Constitution do not end at our prisons’ walls, and when inmates’ civil rights are violated, as they allegedly were here, we will act.”
DOCCS Acting Commissioner Anthony J. Annucci said: “DOCCS has zero tolerance for any criminal activity involving staff or inmates within our facilities. This latest arrest highlights the successful investigation by the Department’s Office of Special Investigations, Westchester County District Attorney and the US Attorney’s Office for the Southern District, all cooperating in this pursuit of justice.”
According to the Complaint[1] unsealed today in Manhattan federal court:
The Bedford Facility is a jail complex located in Bedford Hills, in Westchester County, New York, maintained by the New York State Department of Corrections and Community Supervision. At the time of the assault, Victim-1 was an inmate incarcerated at the Bedford Facility.
In the late evening hours of March 10, 2016, GREEN unlocked and opened the cell of Victim-1, and entered her cell unaccompanied by any other correction officer or other Bedford Facility staff. GREEN then grabbed Victim-1 by her arms, held her with her back against the wall of her cell, and began to lick, kiss, and bite her neck area, and to fondle her chest. After Victim-1 pushed GREEN away, he grabbed her, pushed her up against the wall of her cell, and again forced himself on her. GREEN then pulled up the shirt and bra of Victim-1 and bit, licked, and kissed her neck, chest, and breast and nipple areas, and fondled Victim-1’s groin area. The assault stopped only when GREEN was interrupted by the arrival of another correction officer knocking on a door to be admitted into the unit, upon which GREEN immediately departed Victim-1’s cell.
Victim-1 reported the assault the following morning, and a medical examination produced samples taken from Victim-1’s neck, left breast, and right breast that gave positive results with a presumptive test for saliva. A swab from Victim-1’s left breast generated a single-source male profile. Surveillance video and audio recordings from the Bedford Facility show GREEN entering Victim-1’s cell without any other correction officer the evening of March 10 and also audibly saying at one point “[y]ou ready [unintelligible] me my blow job?”
* * *
JEFFREY GREEN, 48, of Brooklyn, New York, is charged with one count of deprivation of rights under color of law, which carries a maximum penalty of 10 years in prison.
The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara praised the investigative work of the New York State Department of Corrections and Community Supervision Office of Special Investigations and the Criminal Investigators at the United States Attorney’s Office.
This case is being handled by the Office’s Civil Rights and Public Corruption Units. Assistant U.S. Attorneys Alex Rossmiller and Ellen Blain are in charge of the prosecution.
The charges and allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Man Charged in Manhattan Federal Court with Multimillion-Dollar Scheme to Defraud Financial Services FirmRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that CHRISTOPHER CANALE was charged with wire fraud, bank fraud, and aggravated identity theft for allegedly using his position at a global financial services firm (the “Firm”) to defraud the Firm out of at least $7 million over a thirteen-year period. CANALE was arrested this morning in Poughkeepsie, New York, and will be presented later today in federal court in the Southern District of New York.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Christopher Canale took advantage of his position as an accounts payable manager and used his employer’s bank accounts as his own, siphoning off millions to pay for personal expenses, including an outdoor pool, vacations, and luxury cars. Thanks to the efforts of the FBI and prosecutors in our Office, Christopher Canale’s alleged thirteen-year fraud scheme has come to an end.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “It would make most of our lives easier to know there was a large stash of cash in the bank, and we didn’t have to worry about the cost of landscaping the yard, putting in a pool or buying a luxury car. However in this case, the alleged suspect did those things using money that wasn’t his. Making matters worse, he’s accused of forging his boss’s name. The FBI is dedicated to the pursuit of those who steal from our financial community.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:[1]
From 2003 to September 2016, CANALE, a former accounts payable manager at the Firm, abused his position at the Firm to embezzle at least $7 million. CANALE accomplished this fraud by making unauthorized wire transfers and by cashing checks without authorization.
In some instances, CANALE effected the fraud by inputting fake invoices and wire transfer instructions into one of the Firm’s software programs. In other instances, CANALE made checks out to petty cash, forged the name of his former supervisor on those checks, and kept the cash.
CANALE used the Firm’s funds to pay for numerous exorbitant personal expenses, including an outdoor pool, an outdoor sound system, landscaping for his home, and at least one luxury car. CANALE also paid bills for a credit card account and sent approximately $40,000 in wire transfers to another individual.
* * *
CANALE, 47, of Poughkeepsie, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense, and one count of bank fraud, which carries a maximum sentence of 30 years in prison and a maximum fine of $1 million or twice the gross gain or loss from the offense. CANALE is also charged with one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the work of the FBI. He added that the investigation is continuing.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Jennifer L. Beidel is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Lubbock Fentanyl Distributor Pleads GuiltyRead the Press Release
LUBBOCK, Texas — Sidney Caleb Lanier, 36, of Lubbock, Texas, pleaded guilty this morning before U.S. Magistrate Judge D. Gordon Bryant Jr. to one count of conspiracy to distribute and possess with intent to distribute fentanyl, announced U.S. Attorney John Parker of the Northern District of Texas.
Lanier faces a statutory sentence of not more than 20 years in federal prison and a $1 million fine. Judge Bryant recommended that the district court accept Lanier’s guilty plea. If the district court accepts the plea, it will order a presentence investigation report with a sentencing date to be set after the completion of the report. Lanier has been in custody since his arrest in October 2016 following a law enforcement operation led by Lubbock Police Department and special agents with the Drug Enforcement Administration focused on the distribution in the Lubbock area of the highly potent synthetic opioid, fentanyl. Fentanyl is responsible for a sharp increase in opioid deaths across the U.S. It poses a high risk of death not only to users, but also to law enforcement personnel.
While fentanyl can serve as a direct substitute for heroin in opioid-dependent individuals, it is a dangerous substitute as it is 50 times more potent than heroin and results in frequent overdoses that can lead to respiratory depression and death. Cheaper than heroin, fentanyl can be ingested, inhaled or absorbed through the skin; just a few milligrams, equivalent to a few grains of table salt, may be deadly.
Two additional defendants charged in the case, Jessica Christine Holl, 28, and Jamie Marie Robertson, 32, are scheduled for trial on April 3, 2017.
According to documents filed in this case, from approximately January 2013 to October 27, 2016 on Lanier, Holl, and Robertson did knowingly and intentionally combine, conspire, confederate and agree with each other and with persons known and unknown to knowingly and intentionally distribute and possess with intent to distribute a mixture and substance containing a detectable amount of fentanyl, a Schedule II controlled substance. Lanier admits to supplying Holl and Robertson with large amounts of Fentanyl he purchased online on the Darknet from China using Bitcoin, a digital currency. The Fentanyl was shipped to various addresses in the Lubbock area, prepared by the defendants and sold for use.
The case is being investigated by the Lubbock Police Department and the Drug Enforcement Administration. Assistant U.S. Attorney Jeff Haag is in charge of the prosecution.
# # #
Los Angeles Man Pleads Guilty to Federal Fraud Charges Related to Lottery Scheme that Targeted Elderly VictimsRead the Press Release
LOS ANGELES – A South Los Angeles man has pleaded guilty to federal mail fraud and wire fraud charges for his role in a lottery scam that targeted elderly victims with false promises of large cash prizes and cars that would be delivered when victims paid taxes, fees or insurance.
Carl Dean Bullock, 65, entered his guilty pleas to the two felony counts on Monday before United States District George H. Wu.
According to a plea agreement filed in the case, the lottery scam defrauded victims who were falsely told they had won the Publishers Clearing House sweepstakes or other lottery prizes, but they needed to pay some sort of fee or tax to collect the winnings.
“This defendant’s fraud scheme targeted elderly victims with false promises of cars and cash prizes,” said United States Attorney Eileen M. Decker. “All those who receive telephone calls from people promising prizes in exchange for money must be very wary and should take steps to confirm the reliability of the source of the call prior to sending anything.”
In his plea agreement, Bullock admitted participating in a lottery scam in which he and other members of the scheme collected money via Western Union and MoneyGram wire transfers, money orders sent through the U.S. Mail and direct cash payments. Bullock personally received at least $45,000, some of which he shared with his co-schemers, most of whom were in Jamaica.
Los Angeles Postal Inspector in Charge Robert Wemyss stated, “This investigation was an excellent example of a partnership between local and federal law enforcement agencies, working together to ensure that the nation’s mail system is not used as a tool for fraud. I fully commend the hard work and countless hours put forth by all of the law enforcement agencies involved, which resulted in bringing this individual to justice.”
Judge Wu is scheduled to sentence Bullock on April 17. The wire fraud and mail fraud charges each carry a statutory maximum penalty of 20 years in federal prison.
The investigation in this case is being conducted by the United States Postal Inspection Service, which received substantial assistance from the Glendale Police Department. The prosecution is being handled by Assistant United States Attorney Michael G. Freedman of the General Crimes section.
Long Beach Woman Pleads Guilty to Federal Charges for Illegally Shipping Large Quantity of Ammunition to PhilippinesRead the Press Release
LOS ANGELES – A Long Beach woman has pleaded guilty to federal offenses for illegally shipping tens of thousands of rounds of ammunition to the Philippines.
Marlou Mendoz, 61, pleaded guilty on Monday in United States District Court to three counts of failing to provide the required written notice to freight forwarders that she was shipping ammunition to a foreign country.
Marlou Medoza admitted that she sent .22-caliber ammunition and bullets to the Philippines in three shipments in June 2011. The shipments contained 131,300 rounds, the defendant admitted in court.
Marlou Mendoza, who remains free on bond, is scheduled to be sentenced on April 20 by United States District Judge George H. Wu. As a result of the three guilty pleas, she faces a statutory maximum penalty of 15 years in federal prison.
In a related case unsealed last year, Mark Louie Mendoza, the 31-year-old son of Marlou Mendoza, was charged with illegally shipping hundreds of thousands of dollars’ worth of firearms parts and ammunition to the Philippines – munitions that were concealed in shipments falsely claimed to be household goods.
Mark Mendoza, who remains a fugitive, is named in an eight-count indictment that charges him with conspiracy, the unlawful export of munitions, smuggling and money laundering.
Mark Mendoza, who was the president of a “tools and equipments” company known as Last Resort Armaments, ordered more than $100,000 worth of ammunition and firearms accessories, much of which was delivered to his parent’s Long Beach residence over a six-month period in 2011. The items that Mark Mendoza ordered included parts for M-16 and AR-15-type rifles, and these parts are listed as defense articles on the United States Munitions List. Pursuant to the Arms Export Control Act, items on the Munitions List may not be shipped to the Philippines without an export license issued by the Department of State.
The money laundering charge against Mark Mendoza alleges that during the first six months of 2011, Mark Mendoza transferred more than $650,000 in proceeds generated by the illegal ammunition exports from an account in the Philippines to a money remitter in Los Angeles.
“Federal export regulations and laws like the Arms Export Control Act are designed to prevent dangerous materials from reaching the hands of people who may cause harm to the United States, its interests, or its allies,” said United States Attorney Eileen M. Decker. “This case involves a significant amount of ammunition destined for the Philippines, and once there the items could have been transported anywhere in the world and used for any purpose. This case exemplifies the importance of stopping the flow of illegally trafficked weapons to foreign nations, and the dedicated efforts of law enforcement to prevent such conduct.”
The charges against the Mendozas are the product of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The probe began in 2011 after U.S. Customs and Border Protection (CBP) officers uncovered a cache of ammunition and firearms parts in an outbound crate being shipped by Marlou Mendoza that had falsely been declared to be household effects. In November 2012, specials agents with HSI and ATF special agents executed a search warrant at a location associated with Last Resort Armaments and seized more than 120,000 rounds of .22-caliber ammunition, along with AR-15 trigger assemblies, magazines, sights and rifle barrels.
“The cache of ammunition seized in this case, which was destined for the Philippines, represents quite an arsenal and we don’t know who the ultimate buyers were going to be. They could very well have been individuals with sinister or violent intentions,” said Joseph Macias, special agent in charge for HSI Los Angeles. “That’s why these kinds of exports are closely regulated, to help prevent sensitive items from falling into the hands of those who might seek to harm America or our allies.”
“Black market firearms and the illegal proceeds derived are a threat to everyone’s safety,” said ATF Special Agent in Charge Eric D. Harden. “Federal law enforcement partnerships are key in discovering and dismantling large-scale, international criminal activity like the shipments orchestrated by the Mendozas.”
Mark Mendoza is charged with conspiracy, three counts of unlawful export of munitions, three counts of export smuggling and one count of money laundering. If he were to be convicted of all counts in the indictment, Mark Mendoza would face a statutory maximum sentence of 115 years in federal prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
This case is being prosecuted by Assistant United States Attorney Annamartine Salick of the Terrorism and Export Crimes Section.
Las Cruces Woman Pleads Guilty to Stealing from and Defrauding Department of Veterans AffairsRead the Press Release
ALBUQUERQUE – Donah E. Davison, 54, of Las Cruces, N.M., pled guilty today in federal court to theft of government property and forgery charges arising out of a scheme to defraud the Department of Veterans Affairs (VA).
Davison was charged on Nov. 9, 2016, in a 36-count indictment. The first 27 counts of the indictment charged Davison with embezzling money belonging to the VA by depositing 27 “surviving-spouse” benefit checks to which she was not entitled into her own bank account. Davison was charged with committing these crimes in Dona Ana County, N.M., between Dec. 2011 and March 2014. The remaining nine counts of the indictment charged Davison with forging the intended payee’s name on checks nine times between April 2012 and Jan. 2014.
During today’s proceedings, Davison pled guilty to the 36-count indictment. In the plea agreement, Davison acknowledged that her mother began receiving “surviving-spouse” benefit checks from the VA in 1970 that were payable to her only. Davison admitted that when her mother died in 1997, she failed to inform the VA of her mother’s death and continued to collect and deposit the checks into her own bank account after signing her mother’s signature on the back of the checks. Davison further admitted that the VA’s records reflect that since 2003, she stole $147,557.69 from the VA. According to court records, the VA did not maintain records prior to 2003.
Under the terms of the plea agreement, Davison will be sentenced to four months in prison followed by four months of home confinement. Davison also will be required to serve a period of supervised release to be determined by the court. Davison will also be required to pay $147,557.69 in restitution to the VA. A sentencing hearing has yet to be scheduled.
This case was investigated by the Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division, and the Albuquerque office of the FBI and is being prosecuted by Assistant U.S. Attorney John Balla of the U.S. Attorney’s Las Cruces Branch Office.
Lackawanna Man Sentenced for Bank RobberyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051
BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Ronald Anthony McCarter, Jr., 25, of Lackawanna, NY, who was convicted of bank robbery, was sentenced to 27 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Brendan T. Cullinane, who handled the case, stated on October 29, 2015, the Key Bank on Broadway Avenue in Lancaster, NY was robbed. An individual entered the bank, approached a teller and passed a note which demanded cash, no dye pack, and no sudden movements. Subsequent investigation identified McCarter as the individual based on bank surveillance photos.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction on the part of Special Agent-in-Charge Adam S. Cohen, and the Lancaster Police Department, under the direction of Chief Gerald Gill.
# # # #
Kane County Man Charged with Aggravated ID Theft, Credit SchemeRead the Press Release
SPRINGFIELD, Ill. – A Carpentersville, Ill., man, Keith JD Offord, 23, has been indicted on fraud charges that allege he used others’ identities to create fraudulent credit accounts that resulted in a loss of more than $500,000 from December 2013 to August 2015. Offord made his initial appearance in federal court yesterday before U.S. Magistrate Judge Tom Schanzle-Haskins. A detention hearing for Offord is scheduled on Feb. 17. Trial has been set for April 4, 2017, before U.S. District Judge Sue E. Myerscough.
The indictment alleges that during the time of the alleged scheme, Offord created false identification documents using others’ personal identifying information. Offord then allegedly added photographs of a co-schemer to the fraudulent IDs. Offord allegedly took the co-schemer to various retail businesses where Offord instructed the individual to obtain a credit account and credit card, and to use the credit to purchase merchandise and gift cards.
According to the indictment, Offord and his co-schemers conducted more than 260 fraudulent transactions which caused banks to issued credit cards and resulted in a loss of more than $500,000. As part of the fraud scheme, Offord allegedly defrauded several Springfield area retail stores as well as stores in the St. Louis, Mo., area in July and August 2015. Offord is also charged with possession of 15 or more counterfeit credit cards in August 2015 and with four counts of aggravated identity theft related to his alleged use of another person’s identifying information.
The charges are the result of an investigation by Illinois State Police. Assistant U.S. Attorney Gregory M. Gilmore is prosecuting the case.
If convicted, the maximum statutory penalty for each offense charged is prescribed by Congress and is provided here for informational purposes, as sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors. For the offense of bank fraud, the statutory penalty is up to 30 years in prison; for access device fraud, up to 10 years in prison, and for aggravated identity theft (four counts), the penalty is a mandatory two-year prison term to be served consecutive to the sentence ordered for the related fraud offense.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty
Juvenile convicted and sentenced as an adult in federal court on robbery chargesRead the Press Release
Robbed, Binkley’s Kitchen and Bar, Lawrence gun store & others
PRESS RELEASE
Indianapolis – United States Attorney Josh J. Minkler announced today that Andre Jermaine Maxey, 18, Indianapolis, pleaded guilty to six counts of interference with commerce by threats of violence and one count of possession of a firearm during a violent crime. He was sentenced by U.S. District Judge Sarah Evans Barker to 157 months (over 13 years) of imprisonment and was ordered to pay over $23,000 in restitution. He was a juvenile when the offenses were committed.
“Gun violence has no place in a civil society,” said Minkler. “Maxey and his accomplices willingly used extreme violence while robbing gun stores and crowded restaurants. He now understands the full force of federal law enforcement. To the extent that juveniles believe they are immune from federal prosecution, they should now know that belief is mistaken.”
On November 4, 2015, Maxey and two others committed an armed robbery of KS&E guns in Lawrence, Indiana, making off with forty-four firearms and ammunition valued at over $16,000. One store employee was pistol whipped and injured. Special agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the robbery and gathered evidence that Maxey and others committed a rash of additional robberies in the days leading up to the gun store robbery. Those included armed robberies of a Little Caesar’s restaurant on September 22, a Dinner Bell restaurant on October 3 and again on October 26, the Hilltop Tavern restaurant on October 13, and Binkley’s Kitchen and Bar in Broad Ripple on October 21, 2015.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives the Indianapolis Metropolitan Police Department and the Lawrence Police Department.
“The negative impact this suspect had on the lives and families of Indianapolis and Lawrence, Indiana is un-measureable,” said IMPD Chief Bryan Roach. “I am thankful for the good work and dedication of all IMPD detectives working in collaboration with our Federal partners. Federal, state and local law enforcement officers will continue to pursue these types of crimes and criminals to make Indianapolis and the metropolitan area a safer place.”
“No individual should be allowed to threaten our community with the use of violence, particularly harming others to steal firearms and in turn commit more violence,” stated Trevor Velinor, Special Agent in Charge for ATF’s Columbus Field Division. “I am proud of the work that our agents have done, side by side with their partners at IMPD and the Lawrence Police Department, to ensure that this individual does not have an opportunity to cause further fear or injury.”
According to Assistant U.S. Attorney Jeffrey D. Preston, who prosecuted this case for the government, the remaining two defendants, whose cases remain pending, could face up to life imprisonment.
Jury Finds Belizean Man Guilty of Attempted Illegal Re-Entry After DeportationRead the Press Release
LAREDO, Texas – A federal jury sitting in Laredo has convicted a 46-year-old Belizean man claiming to be a U.S. citizen guilty of attempting to illegally reenter the United States after deportation, announced U.S. Attorney Kenneth Magidson. The jury convicted Jerome Aristedes Martinez, of Belize City, Belize, late this afternoon following a two-day trial.
On Aug. 18, 2015, Martinez attempted to enter the United States at the Lincoln Juarez Bridge, claiming to be a U.S. citizen. At that time, he presented an Illinois Identification card and a Department of Homeland Security/Social Security Administration web-site print-out as proof of his citizenship. However, upon questioning, authorities discovered Martinez was actually a native and citizen of Belize who had been removed from the United States twice before. The jury heard that Martinez had never obtained the proper permission to return to the United States after his last removal.
Martinez admitted to having been previously convicted of illegal re-entry after making false claims to U.S. citizenship. However, he testified that after his most recent removal to Belize, he “became aware” that he had been born in the U.S. Virgin Islands and was, therefore, a U.S. citizen.
The jury heard that there is no record of Martinez having been born in the U.S. Virgin Islands and that the only birth record in existence is from Belize. The government also produced documents showing his prior statements acknowledging his Belizean citizenship.
U.S. District Judge Marina Garcia Marmolejo presided over the trial and has set sentencing for June 5, 2017. At that time, Martinez faces up to 20 years in prison and a possible $250,000 maximum fine. He will remain in custody pending that hearing.
Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys Sarah M. Ellison and Giselle S. Guerra are prosecuting the case.
Jury Convicts Man of Voluntary Manslaughter in Wife's Death on Fort McDermitt Indian ReservationRead the Press Release
RENO, Nev. – Following a six-day trial, a jury found a husband guilty of voluntary manslaughter in his wife’s death at their home on the Fort McDermitt Indian Reservation, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. The man is a member of the Fort McDermitt Paiute-Shoshone Tribe of Nevada and Oregon and his wife was a member of the Te-Moak Tribe of the Western Shoshone.
“The defendant will be held accountable for this crime,” said U.S. Attorney Bogden. “I commend our local, tribal, and federal law enforcement partners and the Assistant U.S. Attorneys for working together collaboratively throughout the investigative and prosecution process and for their commitment in seeking justice for the victim.”
Nelson Ray McKee, 45, was indicted on Jan. 28, 2015. At the time of sentencing, he faces the statutory maximum penalty of 15 years in prison. Sentencing is scheduled for May 15, 2017, before U.S. District Judge Robert C. Jones.
According to testimony and evidence presented during the jury trial, on Dec. 31, 2014, McKee’s wife went to a neighbor’s house after being stabbed in the upper chest by McKee. The neighbors dialed 9-1-1. A BIA officer and Humboldt County Deputies arrived at the scene and went to locate McKee. They noticed blood drops in the snow around the property and on the front door of McKee’s residence. Upon entering the residence, law enforcement found McKee extremely intoxicated. They also found two kitchen knives on a table, bottles of whiskey, and small droplets of blood on the kitchen floor and on the front door frame. McKee was arrested that night after officers were alerted that the woman died from her injuries. The Washoe County Medical Examiner’s autopsy revealed that the knife penetrated 5 inches into the woman’s chest and directly into her heart.
The case was investigated by the Bureau of Indian Affairs, Humboldt County Sheriff’s Office, and FBI; and prosecuted by Assistant U.S. Attorneys Shannon M. Bryant and Carla B. Higginbotham.
###
Jasper County Convicted Felon Sentenced for Gun ViolationsRead the Press Release
BEAUMONT, Texas - A 25-year-old Jasper, Texas man has been sentenced to federal prison for federal firearms violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Floyd Michael Richardson pleaded guilty on Oct. 4, 2016, to being a felon in possession of a firearm and was sentenced to 70 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, on Mar. 27, 2016, law enforcement officers responded to a call from the Jasper Manor Apartments. An officer observed Richardson exiting a vehicle at the apartments with crack cocaine in plain view on the vehicle’s center console. Richardson fled the scene as officers attempted to apprehend him. A search of the vehicle revealed a loaded pistol, which had been reported stolen just a few days earlier. Further investigation revealed Richardson was a convicted felon having been previously found guilty in Jefferson County, Texas of theft in 2010 and robbery in 2010. As a convicted felon, Richardson is prohibited from owning or possessing firearms or ammunition. Richardson was indicted by a federal grand jury on Aug. 3, 2016 and charged with federal firearms violations.
This case was prosecuted as part of Project Safe Neighborhoods, aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Jasper Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney John B. Ross.
Jason Galanis Sentenced to More Than 11 Years in Prison for Securities FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JASON GALANIS was sentenced today to 135 months in prison for manipulating the market for Gerova Financial Group, Ltd. (“Gerova”), a publicly traded company listed on the New York Stock Exchange, and to defrauding the shareholders of that company. JASON GALANIS was also sentenced for defrauding the clients of an investment advisory firm. JASON GALANIS pled guilty on July 21, 2016, to two counts of conspiracy to commit securities fraud, one count of securities fraud and one count of investment adviser fraud. GALANIS was sentenced today by United States District Judge P. Kevin Castel.
U.S. Attorney Preet Bharara said: “As he previously admitted in his guilty plea, Jason Galanis swindled the shareholders and clients of Gerova Financial and Tag Virgin Islands out of tens of millions of dollars in a massive fraud scheme. Today, he was sentenced to a lengthy prison term for his participation in these fraud schemes.”
According to the allegations contained in the Indictment filed against JASON GALANIS and his co-conspirators and statements made in related court filings and proceedings:
The Gerova Scheme
From 2009 to 2011, JASON GALANIS, along with his co-conspirators John Galanis, Gary Hirst, Derek Galanis, Ymer Shahini, and Gavin Hamels, engaged in a scheme to defraud the shareholders of Gerova and the investing public by effecting securities transactions in Gerova stock for the purpose of conferring millions of dollars of undisclosed remuneration on JASON GALANIS and his co-conspirators, without adequate disclosure of JASON GALANIS’s role in directing the transactions or the benefits received by JASON GALANIS and his co-conspirators.
As a part of the scheme to defraud, JASON GALANIS obtained sufficient control over Gerova to be able to cause Gerova to enter into transactions of his design, and for his benefit, including the issuance of Gerova stock. JASON GALANIS obtained this control without causing himself to be identified as an officer or director of Gerova in order to appear to abide by an SEC-imposed bar that forbade him from holding such positions at publicly traded companies. Among other means and methods, JASON GALANIS, with the assistance of Hirst, caused over five million shares of Gerova stock, which represented nearly half the company’s public float and which were intended for JASON GALANIS’s ultimate benefit, to be issued to and held in the name of Ymer Shahini, who knowingly served as a foreign nominee for JASON GALANIS. JASON GALANIS, John Galanis, Derek Galanis, Hirst, and Shahini understood that the purpose of the stock grant to Shahini was to disguise JASON GALANIS’s ownership interest in the stock, and to evade the SEC’s regulations for issuing unregistered shares of stock.
At the same time, and as a further part of the scheme to defraud, JASON GALANIS’s co-conspirators, with his knowledge and approval, opened and managed brokerage accounts in the name of Shahini (the “Shahini Accounts”), effected the sale of Gerova stock from the Shahini Accounts, and received and concealed the proceeds, knowing that this activity was designed to conceal from the investing public JASON GALANIS’s ownership of and control over the Gerova stock.
JASON GALANIS, among others, also fraudulently induced investment advisers, including Gavin Hamels, to purchase shares of Gerova stock in the investment advisers’ client accounts by offering compensation and/or other benefits to the respective investment adviser. By causing the purchase of Gerova stock at the time, quantity, and/or price of their choosing, JASON GALANIS and others were able to, among other things, effectuate the sale of large quantities of Gerova stock from the Shahini Accounts that JASON GALANIS controlled while artificially maintaining the price of Gerova stock through coordinated match trading. Such coordinated trading served to manipulate the market for Gerova stock and deceive the investing public. As a result, JASON GALANIS and his co-conspirators reaped nearly $20 million in profits.
The Scheme to Defraud Clients of TAG Virgin Islands, Inc.
From 2007 to 2010, JASON GALANIS, along with an investment adviser named James Tagliaferri, participated in a scheme to defraud the clients of Tagliaferri’s investment advisory firm, which was called TAG Virgin Islands, Inc. (“TAG”). Often in exchange for compensation from JASON GALANIS, Tagliaferri caused TAG’s clients to invest in notes issued by entities associated with JASON GALANIS.
When obligations owed by entities associated with JASON GALANIS became due, Tagliaferri used client funds to purchase either notes issued by other entities associated with JASON GALANIS or publicly traded shares held by such entities. The funds generated were then used to pay the original obligations owed to other TAG clients. Through these securities trades, funds in client accounts of one set of TAG investors were used to pay obligations owed to a different set of TAG investors by entities associated with JASON GALANIS.
* * *
In addition to the prison term, GALANIS, 46, was sentenced to three years of supervised release, and was ordered to forfeit $37,591,681.10, as well as his interests in properties in New York and Los Angeles. Judge Castel will set a restitution amount at a future proceeding.
JASON GALANIS’s co-defendant Jared Galanis, who pled guilty to misprision of a felony in connection with the Gerova scheme, was sentenced to a term of 150 days in prison on January 11, 2017. John Galanis and Derek Galanis, each of whom pled guilty to conspiracy to commit securities fraud and securities fraud in connection with the Gerova scheme, are scheduled to be sentenced on February 16, 2017. Gary Hirst, who was found guilty after trial of conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, and wire fraud, is scheduled to be sentenced on March 17, 2017.
Defendant Ymer Shahini remains a fugitive. The allegations contained in the Indictment as to Shahini are merely accusations, and he is presumed innocent unless and until proven guilty.
Mr. Bharara praised the work of the U.S. Postal Inspection Service and the Federal Bureau of Investigation, and thanked the SEC.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brian Blais, Aimee Hector, and Rebecca Mermelstein are in charge of the prosecution.