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Friday 16 December 2016
Jackson County Loan Officer Pleads Guilty to Bank FraudRead the Press Release
PANAMA CITY, FLORIDA – Kevin R. Griffin, 43, of Alford, Florida, pled guilty yesterday to bank fraud. The plea was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Griffin was employed as a loan officer for the Bank of Bonifay, which later became the First Federal Bank of Florida. Between 2010 and 2012, Griffin used his position as a loan officer to give customers loans that were not documented with the bank. These loans were funded by embezzling money from other customers’ bank accounts without authorization. Griffin obtained loans for customers using other customers’ bank assets as collateral, without permission, and forging loan documents. Griffin also embezzled money from bank customers for his own personal benefit.
Griffin faces a maximum of 30 years in prison. Sentencing for this case is currently set for March 2, 2017.
This case resulted from an investigation by the Florida Department of Law Enforcement, the Federal Bureau of Investigation, and the Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. Assistant United States Attorney Alicia Kim is prosecuting the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Honduran Man Sentenced for Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that YAIR ROCHEZ-MARTINEZ, age 37, a citizen of Honduras, was sentenced yesterday after previously pleading guilty to a one-count Indictment for illegal entry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
United States District Judge Lance M. Africk sentenced ROCHEZ-MARTINEZ to serve one year of incarceration, followed by one year of supervised release, and a $100 special assessment fee.
According to court documents, ROCHEZ-MARTINEZ was previously removed from the United States on December 27, 2013. He was later found in the Eastern District of Louisiana on May 22, 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.
U.S. Attorney Polite praised the work of the U.S. Immigration and Customs Enforcement Agency in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Harvey Man Pleads Guilty to Child Pornography ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHRISTOPHER ORGERON, age 33, of Harvey, pled guilty yesterday to crimes involving the sexual exploitation of children.
According to court records, beginning at an unknown time and continuing to on or about June 25, 2015, ORGERON knowingly received child pornography. On June 25, 2015, Special Agents with the U.S. Department of Homeland Security, Homeland Security Investigations executed a federal search warrant at ORGERON’s Harvey home. Computer forensic agents located over 26,000 images and 612 videos depicting the sexual exploitation of minors on ORGERON’s computers.
ORGERON faces a mandatory minimum sentence of five years and a maximum penalty of up to twenty years imprisonment, followed by up to a lifetime term of supervised release, and a $250,000 fine. U.S. District Judge Mary Ann Vial Lemmon set sentencing for March 16, 2017.
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."
U.S. Attorney Polite praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U.S. Attorney Brian M. Klebba.
Hartford Man Pleads Guilty to Distributing Heroin, Illegally Possessing FirearmRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DANIEL GAMERO, 24, of Hartford, pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to heroin distribution and firearm possession offenses.
The charges stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, in February 2016, Hartford Police began investigating the distribution of heroin marked with a particular brand stamp that was linked to at least two overdose deaths, one in Vernon on February 1 and one in Granby on March 22. Between February and April 2016, law enforcement conducted four controlled purchases of heroin marked with the same stamp from GAMERO and his associate, Charlie Tacuri.
GAMERO and Tacuri were arrested on April 21. On that date, a search of GAMERO’s Preston Street residence revealed approximately 650 bags of heroin, a quantity of marijuana, a loaded firearm and approximately $1,600 in cash. At the time of Tacuri’s arrest, Tacuri possessed approximately 60 bags of heroin and approximately $1,200 in cash.
GAMERO pleaded guilty to one count of conspiracy to distribute heroin, which carries a maximum term of imprisonment of 20 years, and one count of possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory consecutive term of imprisonment of at least five years. Judge Shea scheduled sentencing for March 13, 2017.
On December 8, 2016, Tacuri, 19, formerly of Hartford, pleaded guilty to one count of conspiracy to distribute heroin. He is scheduled to be sentenced on March 6, 2017.
This investigation is being conducted by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Hartford, Vernon and Granby Police Departments. The Tactical Diversion Squad includes members from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney H. Gordon Hall.
Gooding Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
BOISE – Isaac Guadalupe Valdez-Cervantes, 42, of Gooding, Idaho, was sentenced yesterday to 72 months in prison, followed by three years of supervised release for possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Valdez-Cervantes pleaded guilty to the charge on July 21, 2016.
According to the plea agreement, on February 25, 2016, law enforcement officers from the Gooding County Sheriff’s Office executed a search warrant for Valdez-Cervantes’ residence in Gooding, Idaho, where they located a one-gallon zip lock bag containing 446 grams of a methamphetamine mixture and substance, and glass pipes and digital scales.
The case was investigated by the Gooding County Sheriff’s Office and the U.S. Drug Enforcement Administration.
Four Northern California Real Estate Investors Convicted of Rigging Bids at Public Foreclosure AuctionsRead the Press Release
A federal jury yesterday convicted four real estate investors for their roles in a conspiracy to rig bids at public real estate foreclosure auctions held in Alameda County, California, the Department of Justice announced.
After a two-week trial, the jury convicted Alvin Florida Jr., Robert Alhashash Rasheed, John Lee Berry III and Refugio Diaz of one count each of conspiring to rig bids at foreclosure auctions between May 2008 and December 2010. The four defendants were charged in an indictment returned by a federal grand jury in the Northern District of California on November 19, 2014.
The evidence at trial showed that the defendants conspired with others to rig bids to obtain hundreds of properties sold at foreclosure auctions in Alameda County. The conspirators designated the winning bidders to obtain selected properties at the public auctions, and negotiated payoffs amongst themselves in return for not competing. They then held second, private auctions at or near the courthouse steps where the public auctions were held, awarding the properties to conspirators who submitted the highest bids.
In addition to yesterday’s convictions, over fifty individuals have pleaded guilty to criminal charges as a result of the department’s ongoing antitrust investigations into bid rigging at public foreclosure auctions in Northern California. Indictments are pending against several other real estate investors who participated in the conspiracy.
These convictions are the latest charges filed by the department in its ongoing investigation into bid rigging at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa and Alameda counties, California. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office, in connection with the president’s Financial Fraud Enforcement Task Force.
The president established the task force 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 fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.
For more information about the task force, please visit www.StopFraud.gov. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300 or call the FBI tip line at 415-553-7400.
Former VA Podiatry Chief and Sunrise Shoes CEO Indicted for Health Care Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an 11-count indictment Thursday against Anthony Lazzarino, 66, former Chief of Podiatry for the VA’s Northern California Health Care System, and Peter Wong, 58, founder and CEO of Sunrise Shoes and Pedorthic Service, charging them with health care fraud, conspiracy to pay and receive kickbacks on medical referrals, and conspiracy to commit wire fraud, United States Attorney Phillip A. Talbert announced.
According to court documents, between March 2008 and February 2015, Lazzarino and Wong engaged in a scheme to defraud the VA by billing the Veterans Health Administration for custom work and services that were prescribed but not supplied in shoes delivered to veterans. In addition, Lazzarino referred patients directly to Sunrise in violation of VA policy, and agreed with Wong to offer kickbacks in return for such referrals. Finally, Lazzarino, Wong, and Jai Aing Chen, who separately pleaded guilty on December 6, 2016, agreed to make materially false statements and omissions to the VA regarding where the shoes were manufactured, in the course of applying for an estimated $59 million contract.
This case is the product of an investigation by the Department of Veterans Affairs, Office of Inspector General, the Department of Veterans Affairs Police Service, and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Matthew M. Yelovich is prosecuting the case.
If convicted, Lazzarino and Wong face a maximum statutory penalty of 10 years in prison and a $250,000 fine for each health care fraud count, and five years in prison and a $250,000 fine for each of the two conspiracy counts. Any sentence, however, would 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. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former University of Maryland Graduate Student Sentenced in Federal Court for Fraudulently Obtaining Federal Grant Funds to Pay for Doctorate ProgramRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Jermaine Dory, age 25, of Woodbridge, Virginia, today to three years of probation including 50 hours of community service, for wire fraud arising from his federal felony conviction for a scheme to submit false documentation to the University of Maryland to obtain over $40,000 in grant funds intended for minority participants in a doctorate program. Judge Chuang also ordered Dory to pay $33,420.50 in restitution, the amount of the grant minus monies already paid by Dory. Dory pleaded guilty on July 18, 2016.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and the Inspector General Allison C. Lerner of the National Science Foundation, Office of Inspector General.
The National Science Foundation (NSF) funded the 2012-2014 Louis Stokes Alliances for Minority Participation (LSAMP) Bridge to the Doctorate Fellowship Program (Program) at the University of Maryland in College Park. In order to participate in the Program, an applicant must provide evidence of participation in an LSAMP undergraduate program and submit a nomination from the applicant’s undergraduate LSAMP director or faculty member.
According to his plea agreement, Dory applied to the Program and on September 3, 2013, emailed the University of Maryland a document he had created that falsely purported to verify that he had participated in the LSAMP undergraduate Summer Bridge program in the California State University system during the summer of 2010. The document included fraudulent letterhead from California State University, Fullerton, and a fraudulent signature for the actual LSAMP Bridge to Doctorate campus director at a California State University campus.
Relying on the false verification document Dory had submitted, Dory was approved to join the Program. Dory participated in the Program during the Fall 2013 and Spring 2014 semesters, for which the University of Maryland applied $40,490.30 of NSF grant funds to Dory’s student account to pay for tuition, fees and stipends. These NSF grant funds were not available to other potential program applicants who had not submitted false documentation.
During the summer of 2014, University of Maryland officials investigated Dory’s application. Dory’s participation in the Program was terminated in August 2014 upon discovery of the false documentation. The University of Maryland credited the grant funds back to the NSF and suffered the loss for payment to Dory of $40,490.30.
United States Attorney Rod J. Rosenstein commended the National Science Foundation - OIG for its work in the investigation and thanked Assistant U.S. Attorneys Joseph R. Baldwin and David I. Salem, who prosecuted the case.
Former Norman Attorney to Serve 30 Months in Prison for Defrauding ClientsRead the Press Release
Oklahoma City, Oklahoma – Today, DANE THOMAS WILSON, 61, of Oklahoma City, was sentenced by United States District Judge Timothy D. DeGuisti to serve 30 months in federal prison for using a wire fraud scheme to embezzle from the clients of his law practice and also for failing to file a tax return, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
Wilson was charged by Information and pled guilty on February 24, 2016. Wilson admitted that from December 2010 through December 31, 2011, while he was a licensed attorney practicing in Norman, Oklahoma, he defrauded his clients by misappropriating funds that he received on their behalf from insurance companies and other payors. Wilson admitted that he deposited the funds he received for the benefit of his clients into a client trust account, and then wrote checks to himself, made cash withdrawals, or transferred money from the client trust account in amounts that exceeded the attorney’s fees that he was contractually entitled to receive from each client. He admitted that, as a result of his actions, some of his clients received no money or less money than they were due from the settlements or judgments he obtained on their behalf. Specifically, Wilson admitted that he caused First American Bank in Oklahoma to use interstate wire communications with the bank’s processor in Texas to withdraw $40,000 from his client trust account. He admitted that this money was fraudulently misappropriated from insurance settlement funds that rightfully belonged to Wilson’s client, R.F.
Wilson also admitted that he knowingly and willfully failed to file a federal income tax return with the Internal Revenue Service for the tax year of 2011.
A hearing will take place in January 2017 to determine the total amount of restitution that Wilson will be required pay to his former clients and to the IRS.
This case was investigated by the Norman Police Department, the Oklahoma State Bureau of Investigation, the Oklahoma Bar Association, the Federal Bureau of Investigation, and IRS-Criminal Investigations. The case was prosecuted by Assistant U.S. Attorney Amanda Maxfield Green.
Former Employee at a National Medical Supply/Equipment Wholesaler Faces up to Three Years in Federal Prison for Scheme to Steal Medical Products and Sell Them to InternetRead the Press Release
DALLAS — A former Carrollton, Texas, resident who worked as a sales agent for a national medical supply/equipment wholesaler, appeared in federal court yesterday and pleaded guilty to his role in a scheme to steal and resell pre-retail medical products, announced U.S. Attorney John Parker of the Northern District of Texas.
Daniel Edward Shrout, 59, pleaded guilty before U.S. Magistrate Judge Paul D. Stickney to one count of theft of medical product. He faces a maximum statutory penalty of three years in federal prison and a $250,000 fine. Shrout, who now resides in Oklahoma, must also forfeit medical equipment that law enforcement seized from him during the investigation. A sentencing date was not set.
According to plea documents filed in the case, prior to his offense, Shrout worked for a lengthy period of time for Company A, a national wholesale distributor of medical supplies and equipment to office-based physicians and long-term health care providers. Company A is located in the Northern District of Texas.
Beginning on approximately January 12, 2012, Shrout manipulated and exploited Company A’s customer accounts to create false purchases and divert pre-retail medical products. Shrout then resold the stolen product via mass marketing over internet sales websites through an entity he created, Signature Surgical Supply, LLC.
Shrout caused private carriers, including UPS, to deliver the stolen product to him at locations under his control in Allen, McKinney, and Plano, Texas. As a result of Shrout’s scheme, Company A suffered a $594,849 loss.
The case is being investigated by the FBI. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
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Former Bank Officers and Walton County Man Charged in Bank Fraud SchemeRead the Press Release
PENSACOLA, FLORIDA – Anthony J. Atkins, 51, of Eufaula, Alabama, Samuel D. Cobb, 37, of Destin, Florida, and Bruce A. Houle, 57, of Inlet Beach, Florida, have been arraigned in court after a federal grand jury returned a seven-count indictment charging them with conspiracy to commit bank fraud, false statements to a federally insured financial institution; bank fraud, and mail fraud affecting a financial institution. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges the following:
In 2008, Atkins, as the president of GulfSouth Private Bank, and Cobb, as a vice president of GulfSouth, devised a scheme to conceal that the bank had mortgage loans in default. As a part of the scheme, Atkins and Cobb solicited Houle, Mark W. Shoemaker, Michael Bradley Bowen, and William Blake Cody to take out loans in their names with the bank. To persuade Houle, Shoemaker, Bowen, and Cody to engage in the scheme, Atkins and Cobb told these individuals that the loans would be non-recourse, meaning that, if the men defaulted, GulfSouth would have no recourse against them.
Thereafter, Atkins and Cobb caused loans to be issued for approximately $3.8 million to the men they had solicited. As a part of the scheme, Atkins and Cobb caused U.S. Department of Housing and Urban Development Settlement Statement, Form HUD-1s (“HUD-1”) to be prepared in connection with the loans issued by GulfSouth to Houle, Shoemaker, Bowen, and Cody. The HUD-1s falsely stated that the men provided cash for their respective transactions, but the amounts listed as “cash from borrower” on the HUD-1s was actually money provided by GulfSouth. Further, according to the indictment, Atkins, Cobb, Houle, Shoemaker, Bowen, and Cody submitted fraudulent security agreements that falsely represented that Houle, Shoemaker, Bowen, and Cody were obligated to repay their respective loans. As a result of the scheme, it appeared that the loans were performing.
In September 2009, GulfSouth received $7,500,000 in Troubled Asset Relief Program (“TARP”) funds from the United States Treasury. Thereafter, Atkins and Cobb allowed the condominiums that were collateral for the mortgage loans to be sold in short sales, resulting in a loss to GulfSouth. Further, Atkins and Cobb allowed additional lines of credit that they caused to be issued to be charged off of GulfSouth Private Bank’s books and records.
This case resulted from a joint investigation by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG). Assistant United States Attorney Tiffany H. Eggers is prosecuting the case. The trial is scheduled for February 6, 2017.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Federal Prison Sentences Handed Down to Odessa La Familia Motorcycle Club Members for Cocaine Distribution Conspiracy in Permian BasinRead the Press Release
In Midland, eight Odessa LaFamila Motorcycle Club members have been sentenced to federal prison for their roles in a cocaine trafficking operation announced United States Attorney Richard L. Durbin, Jr. and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division.
Yesterday afternoon, United States District Judge Robert A. Junell sentenced 31–year-old Ruben Rodriguez, Jr. and 23--year-old Nicholas Dominguez Rodriguez to 151 months and 120 months in federal prison, respectively. Judge Junell also ordered that Ruben Rodriguez, Jr., pay a $10,000 fine. Previously, Judge Junell sentenced six other defendants as follows:
- Paul Reyes Rodriguez, age 36, to 188 months in federal prison;
- Patrick Amalio Carrillo, age 27, to 120 months in federal prison and a fine of $5,000;
- Roy Christopher Rodriguez, age 28, to 120 months in federal prison and a fine of $5,000;
- Arturo Brandon Campos, age 24, to 57 months in federal prison and a fine of $5,000;
- Renato Souza Paz, age 32, to 60 months in federal prison; and,
- Ryan Frausto, age 30, to 33 months in federal prison and a fine of $5,000.
In addition to the prison terms, Judge Junell ordered that all of the defendants be placed on supervised release for a period of five years after completing their respective prison terms. The Government also received forfeiture of various criminal proceeds derived from the defendants’ scheme including: an Odessa residence in the 1600 block of Sam Houston Avenue, three motorcycles, two cars, and approximately $195,000 in U.S. Currency seized by authorities during this operation.
All of the defendants pleaded guilty to conspiracy to possess with intent to distribute cocaine. By pleading guilty, the defendants admitted participating in a scheme which resulted in the distribution of multi-kilogram quantities of cocaine between August 2014 and May 2016.
“The convictions and sentences of these La Familia Motorcycle Club members demonstrates the continued cooperation between the FBI and our federal, state and local partners to protect the citizens in the Midland/Odessa area,” stated FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
This investigation was conducted by the Federal Bureau of Investigation’s Safe Streets Task Force comprised of the Midland County Sheriff’s Office, Texas Department of Public Safety, Odessa Police Department, Midland Police Department, Ector County Sheriff’s Office. Agents with the Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives assisted in this investigation. Assistant United States Attorney V. LaTawn Warsaw prosecuted this case on behalf of the Government.
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Federal Jury Convicts Armed Career CriminalRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Raimundo Hogan (42, Jacksonville) guilty of being a felon in possession of a firearm. Hogan, who qualifies as an Armed Career Criminal, faces a mandatory minimum sentence of 15 years, up to life, in federal prison. His sentencing hearing will be scheduled for early next year.
According to testimony presented at trial, on February 26, 2016, Hogan was a passenger in a car that was stopped for a seatbelt violation. Hogan fled from the car while holding a Glock pistol in his right hand. A patrol officer with the Jacksonville Sheriff’s Office and a civilian both observed Hogan with the pistol, which he threw and was recovered at the scene. After a short pursuit, Hogan was apprehended.
According to court documents and Florida Department of Corrections records, Hogan has prior convictions for armed robbery, aggravated assault, carjacking and possession of a firearm by a convicted felon. As such, he is prohibited from possessing a firearm and ammunition under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys Jason Mehta and Frank Talbot.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program – a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Fayette County Man Sentenced to More Than 12 Years for Unlawfully Possessing Large Amount of MethRead the Press Release
Memphis, TN – A Fayette County man has been sentenced to 151 months for unlawfully possessing a large amount of methamphetamine with intent to distribute it throughout West Tennessee. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, between 2014 and 2015, Jonathan Bufford, 43, of Somerville, Tennessee, was involved in a large-scale drug trafficking organization responsible for distributing large amounts of meth in the rural areas of West Tennessee.
Bufford purchased distribution amounts of meth regularly from a source of supply in the Memphis area. After transporting the drugs to Fayette County, Bufford would hire couriers to drive the meth to other rural counties, to provide to various individuals for distribution.
In April 2015, the Fayette County Sheriff’s Office received an anonymous complaint that Bufford was selling drugs out of his Somerville home. Investigators executed a search warrant on Bufford’s home and recovered 108 grams of meth, three scales and three cell phones.
In September 2016, Bufford pleaded guilty before U.S. District Court Judge Samuel H. Mays Jr. to one count of unlawfully possessing with the intent to distribute and to distribute multiple grams of meth.
On Thursday, December 15, 2016, Judge Mays sentenced Bufford to 151 months in federal prison.
This case was investigated by the 25th District Attorney General’s Office and Fayette County Sheriff’s Office.
Special Assistant U.S. Attorney Sam Stringfellow prosecuted this case on the government’s behalf.
Elkins man pleads guilty to unlawful possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Dale Lee Sharp, 45, of Elkins, West Virginia, pled guilty today to illegally possessing a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Sharp, who was previously convicted of a felony offense in Randolph County, admitted to possessing a .380 caliber pistol, .270 caliber rifle, .30-30 caliber rifle, and a 12-gauge shotgun in February 2016. He faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Dunkirk Man Pleads Guilty in Major Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that David Jesus Pagan, 40, of Dunkirk, NY, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine and being a felon in possession of a firearm, before U.S. District Judge Elizabeth A. Wolford. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum penalty of life, and a $10,000,000 fine.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that David Jesus Pagan and co-defendant Rafael Burgos were the leaders of a drug trafficking organization that distributed illegal narcotics in the Dunkirk, NY area between 2013 and June 10, 2015. During that time, members distributed multiple kilograms of cocaine throughout the Dunkirk area.
Pagan was arrested in June of 2015 along with Burgos, Javier Pagan, Jr., Angel Pierluissi, Samuel Hernandez III, and Alvin Torres. Search warrants were executed at the time of the arrests at six properties which resulted in the recovery of more than seven kilograms of cocaine (the largest seizure ever in the City of Dunkirk) and approximately $175,000 in cash as well as an AR-15 assault rifle with a 30 round magazine, most of which was found in the defendant’s residence. During a search of Burgos’ residence, officers discovered a secret room with a money counting machine. All defendants have been convicted.
Today’s plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office, the Dunkirk Police Department, under the direction of Chief David C. Ortolano, the Chautauqua County Sheriff’s Office, under the direction of Sheriff Joseph A. Gerace, the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Timothy S. Whitcomb, and the Chautauqua County District Attorney’s Office, under the direction of Patrick Swanson.
Sentencing is scheduled for March 14, 2017, at 3:00 p.m. before Judge Wolford.
Drug Dealer Sentenced for Beating and Kidnapping Ex-GirlfriendRead the Press Release
ALEXANDRIA, Va. – Ahmad Sayed Hashimi, aka Jimmy Hashimi, of Woodbridge, was sentenced today to 25 years in prison for his role in beating and kidnapping his ex-girlfriend, in addition to leading drug distribution conspiracies.
Hashimi was indicted by a grand jury on four counts: 1) Conspiracy to Distribute Oxycodone; 2) Conspiracy to Distribute Cocaine; 3) Kidnapping; and 4) Interstate Domestic Violence. On September 29, after a three-day jury trial, he was convicted of all four counts.
According to court documents and evidence presented at trial, from approximately November 2009 through March 2015, Hashimi created and managed a wide ranging drug distribution scheme involving both powder cocaine and oxycodone obtained fraudulently from pharmacies. He distributed these drugs in Virginia, Maryland, and Washington, D.C. Hashimi’s drug distribution schemes involved at least 46.5 kilograms of powder cocaine and at least 30,000 30mg oxycodone pills, approximately 9,000 of which have been directly attributed to Hashimi. Ten co-conspirators have been convicted federally in connection with Hashimi’s drug schemes, and another 13 conspirators have been convicted in state courts.
According to court records and evidence presented at trial, Hashimi relied heavily on other people to distribute his drugs for him, believing that doing so insulated him from law enforcement attention. In the summer of 2011, Hashimi recruited his girlfriend, H.D., to begin assisting him with his cocaine scheme. Shortly thereafter, Hashimi concocted and pursued an opportunity to obtain oxycodone using fraudulent prescriptions passed at pharmacies. In connection with this scheme, Hashimi once again directed H.D. to act as a shield, recruiting runners to obtain pills from pharmacies, and obtaining and distributing the pills on his behalf. The money from the scheme was returned to and controlled by Hashimi.
According to court records and evidence presented at trial, throughout their relationship, Hashimi was extremely controlling of H.D., including regularly assaulting her by punching her in the head and face causing bruising and bleeding. On several occasions, neighbors called 911 as a result of hearing Hashimi beating H.D., which resulted in police responding to the home. On at least two occasions, H.D. had to go to the emergency room as a result of injuries sustained from beatings by Hashimi. Evidence at trial established that H.D. still has bony lumps on her forehead from being repeatedly hit there by Hashimi, and that she has lost partial hearing in one ear as a result of a particularly bad assault.
According to court records and evidence presented at trial, in the fall of 2013, the relationship between Hashimi and H.D. had further deteriorated. Shortly before Nov. 8, 2013, Hashimi became suspicious that H.D. had not returned to him all of the oxycodone pills he directed her to obtain from a pharmacy. This argument developed into a physical altercation in which Hashimi repeatedly punched and choked H.D. Ultimately, H.D. was able to flee the apartment, taking with her some of Hashimi’s cocaine prepared for resale. Upon discovering the theft of his cocaine, Hashimi began frantically looking for H.D. and vowing revenge.
According to court records and evidence presented at trial, a few days after the beating, Hashimi organized a group of five men and lured H.D. to a meeting place using a ruse. When H.D. arrived at the location for the meeting, Hashimi and the other men surrounded her vehicle with their cars to prevent her from leaving. The other men threatened the passengers that were with H.D. while Hashimi entered her vehicle and began violently beating her. One of the men Hashimi brought with him threatened to shoot one of the men in H.D.’s car for attempting to intervene on her behalf. Hashimi dragged H.D. from her vehicle into a getaway car. While one of the other men drove away, Hashimi continued to repeatedly punch H.D. in her head and face. Eventually, Hashimi’s getaway vehicle arrived at Hashimi’s own vehicle. Hashimi then dragged H.D. into the front passenger seat of his vehicle, and drove into the District of Columbia. During this time, H.D. was able to call 911, but Hashimi cut off the call and answered the call back, telling the dispatcher that there was no problem. He threatened to kill H.D. He continued to beat her as he drove. At a momentary stop at a red light in the District of Columbia, H.D. was able to run from the vehicle and escape to police assistance. The police took her to the emergency room in D.C. where she received medical treatment for her substantial injuries.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Liam O’Grady. Assistant U.S. Attorney Whitney Dougherty Russell and Special Assistant U.S. Attorney Sean M. Welsh prosecuted the case.
This case was investigated by the FBI, Fairfax County Police Department, Loudoun County Sheriff’s Office, Prince William County Police Department, Alexandria City Police Department, Arlington City Police Department, and the Montgomery County (Maryland) Police Department.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-135.
District Man Sentenced to 24 Years in Prison for Killing Man After Home InvasionRead the Press Release
WASHINGTON – Joseph Jennings, Jr., 36, of Washington, D.C., was sentenced today to 24 years in prison for killing a man this year after breaking into his condominium in Northwest Washington, U.S. Attorney Channing D. Phillips announced.
Jennings pled guilty in October 2016, in the Superior Court of the District of Columbia, to a charge of second-degree murder while armed. He was sentenced by the Honorable Michael Ryan. Following his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, Jennings spent the early morning of Jan. 22, 2016 getting high at his residence in Southeast Washington. Later that morning, according to the government’s evidence, Jennings joined with two other men in a plan to break into a condominium in the 400 block of M Street NW and steal marijuana. At about 9:48 a.m., Jennings used an object to forcibly pry open the locked front door to the building. One of his accomplices waited nearby, while Jennings and the other man continued inside. As they attempted to gain entry to the unit through a sliding glass balcony door, the victim, Matthew Shevlin, fled out of the front door and began screaming for help.
Jennings chased Mr. Shevlin, and a struggle ensued before Mr. Shevlin got away. The other man, meanwhile, took a mason jar of marijuana from the apartment. Mr. Shevlin threw a flower pot at the man’s head and got into a second struggle with Jennings. During this struggle, Jennings shot Mr. Shevlin, 37, who later died of multiple gunshot wounds.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate James Brennan and Supervisory Paralegal Specialist Sharon Newman. Finally, he expressed appreciation for the work of Assistant U.S. Attorney David Misler, who investigated and prosecuted the matter.
Defendants Convicted for Roles in Methamphetamine Distribution Conspiracy Sentenced to Lengthy Federal Prison SentencesRead the Press Release
SAN ANGELO, Texas — This afternoon, Senior U.S. District Judge Sam R. Cummings sentenced seven defendants who were convicted earlier this year on various charges stemming from their respective roles in a methamphetamine distribution conspiracy that operated in San Angelo, Texas, announced U.S. Attorney John Parker of the Northern District of Texas.
Jesse Huerra, 31, of San Angelo, was sentenced to life in federal prison. He was convicted at trial in September 2016 on one count each of possession with intent to distribute 500 grams or more of methamphetamine, possession of firearms in furtherance of a drug trafficking crime, and being a convicted felon in possession of firearms.
Nancy Ann Flores, 41, of San Angelo, was sentenced to 15 months in federal prison. She pleaded guilty to one count of unlawful use of a communications facility.
Antonio N. Flores, 52, of San Angelo, was sentenced to 70 months in federal prison. He pleaded guilty to two counts of unlawful use of a communications facility.
Bruno Rudolfo Velasquez, 32, of San Angelo, was sentenced to 60 months in federal prison. He pleaded guilty to one count of possessing a firearm in furtherance of a drug trafficking crime and aiding and abetting.
Joe Lopez, III, 33, of San Angelo, was sentenced to 125 months in federal prison. He pleaded guilty to one count of distribution and possession with intent to distribute methamphetamine and aiding and abetting.
Jose G. Montez, 37, of San Angelo, was sentenced to 151 months in federal prison. He pleaded guilty to one count of distribution and possession with intent to distribute methamphetamine and aiding and abetting.
Shayna Kaye McCann, 25, of Great Falls, Montana, was sentenced to 10 months in federal prison. She pleaded guilty to one count of misprision of a felony.
Most of the defendants have been in custody since their arrests on July 13, 2016, when numerous defendants were arrested in a joint Organized Crime Drug Enforcement Task Force (OCDETF) operation led by the Drug Enforcement Administration (DEA), the Texas Department of Public Safety, and the San Angelo Police Department. Twelve defendants are charged in the case.
The drug trafficking organization’s leader, Rudolfo Ledesma Castaneda, Jr., 31, pleaded guilty to one count of distribution and possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting. He faces a statutory penalty of not less than five or more than 40 years in federal prison and a $5 million fine. A sentencing date has not been set.
Another defendant, Richard Jasso, 39, of San Angelo, was convicted at trial last month on one count of distribution and possession with intent to distribute 50 grams or more of methamphetamine and aiding and abetting. The government filed a notice of enhancement because Jasso has two previous “felony drug offenses.” If the Court finds those convictions are final and valid, then, by statute, the Court must impose a life sentence without parole. A sentencing date has not been set.
One defendant, Silvia Prado, 36, of Austin, Texas, is scheduled to go on trial January 17, 2017. She is charged with one count of conspiracy to distribute and possess with intent to distribute methamphetamine. Defendant Daniel Roy Lombrana, 29, of San Angelo, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute marijuana, with an enhancement for a prior conviction. He faces a statutory maximum of 10 years in federal prison and a $500,000 fine; sentencing is set for January 20, 2017. Defendant Adam Gabriel Castaneda, 30, of San Angelo, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute methamphetamine. He was sentenced earlier this month to 10 years in federal prison.
The DEA, Bureau of Alcohol, Tobacco, Firearms and Explosives, Texas Department of Public Safety, and the San Angelo Police Department investigated the case.
Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
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Defendant Senteced to 46 Months for Being A Felon in PossessionRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces that Robert Lyle Bertram, 51, of Shelby, Alabama, was sentenced today to 46 months of imprisonment by U.S. District Judge Kristi K. DuBose for being a felon in possession of a firearm. The judge ordered that Bertram undergo 3 years of supervised release upon completing his term of imprisonment and pay a $100 mandatory special assessment.
Bertram was indicted by a federal grand jury in February 2016 on one count of knowingly possessing a firearm as a felon. He was previously convicted of Promoting Prison Contraband, 2nd Degree, on September 20, 2007, in the Circuit Court of Elmore County, Alabama, and Robbery, 3rd Degree, on October 30, 2002, in the Circuit Court of Wilcox County, Alabama.
On January 10, 2015, Mobile County Sheriff’s Office Deputy Brannon Buettner was dispatched to the dead end of Apache Drive in Eight Mile, Alabama 36613, in reference to a vagrant that had been temporarily detained by off-duty Mobile Police Officer Tanner Whipkey. Upon arrival, Deputy Buettner spoke with Officer Whipkey as well as with two residents in the area, who advised that there had been several burglaries in the neighborhood and that they had went into the woods at the dead end of Apache Drive to look for possible suspects. The residents said they located a tent and called Officer Whipkey, who found Bertram in the area of the tent. Deputy Buettner determined that Bertram had a warrant for a parole violation for Robbery in the First Degree. Based on where Bertram and the tent were located, law enforcement determined that Bertram was trespassing on property belonging to Mobile County. Deputy Buettner found two guns in plain view inside the tent, a F.I.E. revolver and a Ruger revolver, as well as six .22 caliber bullets in Bertram’s front left pocket.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Mobile Police Department, and the Mobile County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Sinan Kalayoglu.Davenport Woman Sentenced for Conspiring to Distribute MethamphetamineRead the Press Release
DAVENPORT, IA – On December 14, 2016, Audra Sue Rowson, 43, of Davenport, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 50 months in prison for Conspiracy to Distribute Methamphetamine, announced United States Attorney Kevin E. VanderSchel. Rowson was ordered to serve three years of supervised release following her prison term and to pay $100 to the Crime Victims’ Fund.
Rowson pleaded guilty to Conspiracy to Distribute Methamphetamine on August 1, 2016. According to the plea agreement, Rowson conspired to distribute methamphetamine in the Davenport, Iowa, area from around January of 2014 and continuing until around March of 2016.
During that time, Rowson sold approximately 11.5 grams of methamphetamine to a confidential informant during the course of three controlled transactions. Law enforcement also executed a search warrant at Rowson’s Davenport residence where they located methamphetamine residue, drug ledgers, drug paraphernalia, and items consistent with the distribution of methamphetamine.
This matter was investigated by the Drug Enforcement Administration, the Scott County Sheriff’s Department, the Bettendorf Police Department, and the Quad City Metropolitan Enforcement Group. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Media Contact for this release is Rachel Scherle at 515-473-9300, or [email protected]
Davenport Man Sentenced for Possessing a Molotov CocktailRead the Press Release
DAVENPORT, IA – On December 14, 2016, Theodore Cooke, 48, of Davenport, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 60 months in prison for Felon in Possession of an Unregistered Firearm, announced United States Attorney Kevin E. VanderSchel. Cooke was ordered to serve three years of supervised release following his prison term and to pay $100 to the Crime Victims’ Fund.
Cooke pleaded guilty to Felon in Possession of an Unregistered Firearm on August 17, 2016. There was no plea agreement in the case. According to statements made by all parties during the sentencing hearing, Cooke was in possession of a Molotov cocktail on November 2, 2015. On that date, Cooke went to a Davenport residence to look for his girlfriend. After several attempts to get her outside, Cooke lit the Molotov cocktail on fire and threw it at a parked vehicle, causing the vehicle to start on fire. No one was injured during the incident. A Molotov cocktail is a destructive device under federal law and must be registered as a firearm. Cooke has two prior felony convictions in Scott County, Iowa; one for Burglary-First Degree, the other for Burglary-Second Degree. Cooke also has prior convictions for Assault with Injury, Simple Assault, Cruelty to Animals, and Assault.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Davenport Police Department, and Davenport Fire Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Media Contact for this release is Rachel Scherle at 515-473-9300, or [email protected]
Davenport Man Sentenced for Conspiring to Distribute MethamphetamineRead the Press Release
DAVENPORT, IA – On December 14, 2016, Chad Allen Moens, 43, of Davenport, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 90 months in prison for Conspiracy to Distribute Methamphetamine, announced United States Attorney Kevin E. VanderSchel. Moens was ordered to serve three years of supervised release following his prison term and to pay $100 to the Crime Victims’ Fund.
Moens pleaded guilty to Conspiracy to Distribute Methamphetamine on April 26, 2016. According to the plea agreement, Moens conspired with others to distribute methamphetamine in Davenport, Iowa, from June of 2014 to September of 2015. During that time, law enforcement used a confidential informant to purchase or attempt to purchase methamphetamine from Moens on four separate occasions.
In total, Moens provided or attempted to provide the confidential informant with approximately 190 grams of methamphetamine. Law enforcement also located approximately 55 grams of methamphetamine during a search warrant executed at Moens’ Silvis, Illinois, residence. According to statements made at Moens’ sentencing hearing, Moens traveled to Chicago, Illinois, and Omaha, Nebraska, to obtain methamphetamine, and then returned to the Davenport area to sell methamphetamine. Moens is responsible for conspiring to distribute nearly 900 grams of methamphetamine in the Davenport, Iowa, area.
This matter was investigated by the Drug Enforcement Administration, the Scott County Sheriff’s Department, the Bettendorf Police Department, and the Quad City Metropolitan Enforcement Group. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Media Contact for this release is Rachel Scherle at 515-473-9300, or [email protected]
Dallas Woman Sentenced to 20 Years in Federal Prison for Role in Methamphetamine Distribution Conspiracy That Operated out of Pleasant Grove, Seagoville and Balch Springs Areas of DFW MetroplexRead the Press Release
DALLAS — A Dallas woman who, along with 18 co-defendants, was arrested in June 2016 in a joint operation led by the Dallas Police Department and the Texas Department of Public Safety, for their respective roles in a methamphetamine distribution conspiracy that operated out of the Pleasant Grove, Seagoville, and Balch Springs areas of the Dallas/Fort Worth metroplex, was sentenced today, announced U.S. Attorney John Parker of the Northern District of Texas.
Tina Connolly, 55, was sentenced by Chief U.S. District Judge Barbara M. G. Lynn to 240 months in federal prison. She pleaded guilty in October 2016 to one count of possession with intent to distribute methamphetamine. She has been in custody since her arrest in June.
According to documents filed in the case, Connolly admitted that on January 19, 2016, when law enforcement executed a search warrant for the hotel room where she was staying, officers located and seized distribution quantities of methamphetamine – approximately 298 grams, marijuana, heroin, and a firearm.
All of the 19 defendants indicted in the case have pleaded guilty to their respective roles in the conspiracy. Connolly is the first defendant to be sentenced in the case.
The investigation into this drug trafficking organization began in early January 2016. During the investigation, law enforcement seized more than 6700 grams of methamphetamine, approximately 13.2 kilograms of methamphetamine oil, 62 grams of marijuana, 2.5 grams of heroin, and 20 ml of gamma hydroxybutyrate (GHB), as well as 12 firearms and $12,379 in cash.
The case was investigated by the Dallas Police Department and the Texas Department of Public Safety. Assistant U.S. Attorney Andrew Wirmani is in charge of the prosecution.
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Corning Business Owner Sentenced on Fraud ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that the former owner and CEO of Cornerstone Homes, David Fleet, 52, of Corning, NY, who was convicted of mail fraud, was sentenced to three years probation and 100 hours of community service by U.S. District Judge Elizabeth A. Wolford. The defendant was also ordered to pay approximately $88,000 in restitution to his victims.
Assistant U.S. Attorney John J. Field, who handled the case, stated that Fleet owned a real estate business from 1997 to 2014 that ultimately came to be known as Cornerstone Homes. Cornerstone’s business involved the purchase, renovation and resale or renting of distressed homes.
In order to acquire the distressed homes, Fleet sold debentures to private investors promising annual rates of return of 8%-10%. Fleet thereafter caused Cornerstone to borrow approximately $25,000,000 from various banks, and to pledge the houses that had been acquired with private investor money as security for the bank loans.
By March 2010, Fleet knew that Cornerstone’s operating income was insufficient to pay its debt service to the banks and the private investors. The defendant also lost more than $2,000,000 in risky options trades. However, Fleet continued to solicit additional private investments without disclosing Cornerstone’s true financial picture, including the fact that he had more than $2,000,000 of Cornerstone’s capital. In March 2010, Fleet raised approximately $88,000 from approximately 13 investors based upon statements and representations that were materially misleading.
The sentencing is the result of an investigation by Inspectors of the United States Postal Inspection Service, acting under the direction of Inspector-In-Charge, Boston Division, Shelly Binkowski, the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, and the Internal Revenue Service, Criminal Investigations, under the direction of Acting Special Agent in Charge Kathy A. Enstrom, New York Field Office.
Chico Man Pleads Guilty to Transportation of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Mark McLeod Wygant, 46, of Chico, pleaded guilty today to transportation of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from early 2011 to early 2012, Wygant surreptitiously filmed a child on numerous occasions using a hidden cellphone and hidden “spy cameras” that he had purchased for that purpose. He then transported those videos and photos from a location in Butte County to South Lake Tahoe. Wygant has been in custody since his arrest on January 29, 2015.
This case is the product of an investigation by the Federal Bureau of Investigation and the South Lake Tahoe Police Department. Assistant U.S. Attorney Matthew G. Morris is prosecuting the case.
Wygant is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on March 3, 2017. Wygant faces a minimum of five years and a maximum statutory penalty of 20 years in prison and a $250,000 fine. 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.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Bullitt County Man Guilty of Enticing A Minor to Engage in Sexual ActivityRead the Press Release
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. today announced the guilty plea of a Bullitt County, Kentucky, man before District Judge David J. Hale, in United States District Court, on December 15, 2015, to a charge of enticing a minor to engage in sexual activity.
According to the plea agreement, and information presented in court, Jonathen Ray Howerton, 25, admitted to attempting to entice a 15-year-old girl to engage in sexual activity, on July 5, 2016. According to the agreement, Howerton was arrested without incident in the parking lot of a movie theater in eastern Jefferson County, which was the agreed upon location, to meet the 15-year-old. Unbeknownst to him, Howerton had been communicating with an Undercover agent from the Kentucky Attorney General’s Department of Criminal Investigation, who had assumed the persona of a 15-year-old female from Louisville. The contact began on June 22, 2016, when the UC used the online chat program, Omegle, to locate potential suspects who were attempting to meet underage children for sexual contact.
Following his arrest, and being advised of his constitutional rights, Howerton admitted that he had come to the location after meeting a 15-year-old girl online. He stated that he had communicated with the girl on both Omegle and KIK and that the smartphone on the front seat of his truck was the device he had used to communicate. Howerton confirmed that he intended to engage in sexual activity with the girl but qualified “only if she wanted to.” He acknowledged that 15 was younger than the age of consent in Kentucky.
Howerton remains in the custody of the United States Marshal Service awaiting sentencing before Judge Hale at a later time. The United States will ask for a ten year prison sentence followed by a ten year period of supervised release.
Assistant United States Attorney Jo E. Lawless is prosecuting the case. The Kentucky Attorney General’s Department of Criminal Investigations conducted the investigation.
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."
Buffalo Man Pleads Guilty to Tonawanda Bank RobberyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Nicholas Graham, 45, of Buffalo, NY, pleaded guilty to bank robbery by use of a dangerous weapon before Chief U.S. District Judge Joseph P. Geraci, Jr. The charge carries a maximum penalty of 25 years in prison and a $250,000 fine.
Assistant U.S. Attorney Michael Adler, who is handling the case, stated that on January 8, 2016, the defendant aided and abetted two other individuals in a bank robbery at the Evans Bank located at 2800 Niagara Falls Boulevard in Tonawanda, New York. Graham drove the individuals to the bank in a 2007 Infiniti around 5:45 p.m. The defendant remained in the vehicle and acted as both the lookout and the getaway driver.
During the robbery, the two individuals were masked and wore nearly identical uniforms including dark tan jackets with hoods, dark colored baseball caps, dark colored masks, and tan pants. Once inside the bank, the masked individuals aimed BB guns, that appeared to be real pistols, at customers and employees, ordering them to get down so nobody would get hurt.
Following the robbery, law enforcement officers tracked the defendant and the two individuals to the Scottish Inn Motel on Niagara Falls Boulevard. Graham was detained at the motel. Officers found items at the motel including cash, clothing worn by the robbers, the BB guns, receipts for the purchase of the guns, and several identification cards.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen and the Town of Tonawanda Police Department, under the direction of Chief Jerome C. Uschold.
Sentencing is scheduled for April 20, 2016, at 10:00 a.m. before Judge Geraci.
Bucks County Judge, Lower Southampton Director of Public Safety, and Pennsylvania Deputy Constable Charged with Conspiracy and Money LaunderingRead the Press Release
John I. Waltman, 59, of Trevose, Pennsylvania, Robert P. Hoopes, 69, of Doylestown, Pennsylvania, and Bernard T. Rafferty, 62, of Langhorne, Pennsylvania were charged in an Indictment,[1] unsealed earlier today, with one count of conspiracy to commit money laundering and three counts of money laundering, announced United States Attorney Zane David Memeger.
Waltman has been a Magisterial District Judge in Bucks County, Pennsylvania since 2011. Hoopes has been the Director of Public Safety in Lower Southampton, Pennsylvania since February 2016. In this position, Hoopes has authority over all police, fire, and emergency operations in the township. Hoopes previously operated a legal practice in Doylestown, Pennsylvania. Rafferty has been a Deputy Constable in Bucks County since 1998. Rafferty controls Raff’s Consulting LLC, a corporation registered with the Pennsylvania Department of State on May 30, 2011.
According to the Indictment, from June 2015 to November 2016, Waltman, Hoopes, and Rafferty conspired to launder funds represented to be proceeds from health care fraud, illegal drug trafficking, and bank fraud. Moreover, from June 2016 to August 2016, Waltman, Hoopes, and Rafferty laundered $400,000 in cash, represented to be proceeds from health care fraud and illegal drug trafficking, and took money laundering fees totaling $80,000 in cash.
If convicted, the defendants each face a maximum possible sentence of 80 years in prison, three years of supervised release, a $1 million fine, and a $400 special assessment.
[1] An Indictment, Information, or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bronx Man Pleads Guilty to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Christian O. Dalmau, 31, of Bronx, NY, pleaded guilty to possession of a firearm by an unlawful user of a controlled substance, before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that on the night of January 5, 2014, Dalmau was the sole passenger in a GMC Yukon vehicle that was being driven by another individual when the Yukon was stopped by Buffalo Police officers in the vicinity of Bailey Avenue and Cloverdale Avenues. The Yukon contained a hydraulic hidden compartment or “trap” in its cargo area. Inside the trap was a Taurus, 9mm semi-automatic handgun loaded with 13 rounds of ammunition.
Also inside the trap in the Yukon were three foil packets that each contained eight oxycodone pills, pills which were consistent in appearance with other oxycodone pills Dalmau left in the backseat of the Buffalo Police car in which he had been placed. Dalmau admitted to being addicted to the pills.
In the plea agreement, the government reserved the right to attempt to establish at sentencing Dalmau’s suspected involvement in connection with a shooting homicide that happened on Newfield Street shortly before the January 5th stop. Dalmau reserved the right to contest the government’s position.
The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Field Division, the Buffalo Police Department, under the direction Chief Daniel Derenda, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division.
Sentencing is scheduled for April 26, 2017, before Judge Arcara.
Boise Man Sentenced to 8 Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
BOISE – Raymond Joseph Pruneau, 52, of Boise Idaho, was sentenced yesterday in United States District Court to 97 months in prison for conspiracy to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered that Pruneau serve five years of supervised release and to forfeit $100,000 in drug proceeds.
According to evidence presented in court, Pruneau conspired with others to distribute large quantities of methamphetamine in the state of Idaho between October of 2015 and February of 2016. Pruneau arranged with co-conspirators for delivers of methamphetamine in Ada and Canyon Counties. Investigating officers discovered the conspiracy and were able to make several controlled purchases of methamphetamine from Pruneau and his co-conspirators. A search of his home on February 11, 2016, resulted in officers locating 824 grams of methamphetamine and 415 grams of cocaine.
Codefendant, John Paul Tate, 48, of Caldwell, Idaho, was sentenced on November 16, 2016, to 240 months in prison for his role in the conspiracy. Judge Lodge also ordered Tate to five years of supervised release and to forfeit $100,000 in drug proceeds. Tate plead guilty on August 17, 2016.
The case was investigated by the Drug Enforcement Administration, Ada County Sheriff’s Office, and City County Narcotics Unit of Canyon County.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
Battle Creek Hotel Owner Indicted for Lying to the US Department of Labor About Minimum Wage PaymentsRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick A. Miles announced today that Mehul Chandubhai Patel, a/k/a “Mike Patel,” 31, of Battle Creek, Michigan, appeared in federal district court today to be arraigned on charges that stem from false statements he made to the Department of Labor during an investigation into violations of the minimum wage law.
On December 14, 2016, a federal grand jury charged Patel with falsely advising the U.S. Department of Labor that he had paid his employees as required by federal minimum wage rules, when in fact he had required the employees to return the money to him after being paid. Each charge carries a maximum possible sentence of five years in prison and other penalties. Patel was released on bond after being required to surrender his passport and be subject to electronic monitoring.
U.S. Attorney Miles stated, “There are good reasons why we have a minimum wage law. Workers have the right to a fair wage for a job well done. If an employer tries to cheat his employees out of paying the bare minimum wage permitted in this country, the Department of Labor will come calling to make him follow this law. If that same employer is so brazen that he then lies to the Department of Labor about repaying his employees, federal agents will come calling with an arrest warrant.”
Prosecution of the matter has been assigned to Timothy VerHey, Assistant U.S. Attorney. The matter was investigated by the U.S. Department of Labor, Office of Inspector General, Homeland Security Investigations, and the Battle Creek Police Department. “An important mission of the Office of Inspector General is to investigate allegations relating to obstruction of U.S. Labor Department functions and investigations. We will continue to work with our law enforcement and intra-Agency partners to investigate these types of allegations," stated James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the United States Department of Labor, Office of Inspector General. Steve Francis, Acting Special Agent in Charge for HSI Detroit stated “HSI will continue to use its broad jurisdiction to hold employers accountable. One of our primary investigative priorities is to ensure a level playing field for all businesses through our worksite enforcement strategy.”
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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Baltimore Man Pleads Guilty in Federal Court to Sex Trafficking of a MinorRead the Press Release
Baltimore, Maryland –Steven B. Boyd, a/k/a “Gotti,” age 37, of Baltimore, pleaded guilty today to sex trafficking of a minor.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, an undercover enforcement operation conducted by Baltimore City Police officers during an investigation of sex trafficking of minors, identified Boyd as a pimp who caused two minor girls to engage in commercial sex acts for his own financial benefit. Boyd knew the two girls were under 18 years of age when he recruited them to work for him. During the investigation, five other women over the age of 18 were also identified as working for Boyd, including two women who traveled from other states to Maryland to work for Boyd.
According to his plea agreement, Boyd paid for hotel rooms for the women to engage in commercial sex acts. Forensic examination of Boyd’s phone as well as information provided by the women and girls working for Boyd showed that he also paid for online ads for the women and girls to engage in commercial sex acts. According to the girls and women working for him, Boyd took all the money they made from commercial sex acts. Boyd transported the girls and women on “outcalls,” taking to them to hotel rooms and residences to engage in prostitution, as well as transporting them to other states. Boyd provided the girls and women with telephones to communicate with him about their commercial sex activities.
Boyd faces a mandatory minimum sentence of 10 years and up to life in prison for sex trafficking of a minor. U.S. District Judge James K. Bredar has scheduled sentencing for April 26, 2017. Boyd remains detained.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Baltimore City Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Rachel M. Yasser, who are prosecuting the case.
Baltimore Felon Pleads Guilty and is Sentenced to 15 Years in Federal Prison for Illegal Possession of a GunRead the Press Release
Baltimore, Maryland –U.S. District Judge J. Frederick Motz sentenced William Warren, age 28, of Baltimore, today to 15 years in prison, followed by three years of supervised release, after Warren pleaded guilty to being a felon in possession of a firearm.
The guilty plea and sentence were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.
“ATF Baltimore will continue to focus the entirety of their investigative resources towards any persons or organizations who perpetrate firearm related violence upon the citizens of Baltimore and all surrounding communities,” said ATF Special Agent in Charge Board.
According to his plea agreement, on September 17, 2014, Baltimore Police officers were patrolling in the 400 block of East 21st Street due to an ongoing conflict between two drug crews operating in the area. The officers saw Warren, who they knew was a member of one of the drug crews, riding a bike. As the officers approached, Warren turned his right side away from the officers and fled on his bike. The officers followed Warren and saw him check his right waist area as he ran into an alley. Farther into the alley the officers saw Warren remove what appeared to be a handgun from his right waist band and throw it over a fence into the rear yard of 2208 Barclay Street. Officers recovered the gun, a .45 caliber handgun, loaded with nine live rounds. As a result of three previous felony drug convictions, Warren was prohibited from possessing a gun or ammunition.
Judge Motz ordered that Warren’s federal sentence will be concurrent to the 22-year state sentence he is currently serving after his conviction on an unrelated gun charge
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Patricia C. McLane, who prosecuted the case.
Attorneys Indicted for Multimillion Dollar Scheme to Fraudulently Obtain Settlements from Victims who Downloaded PornographyRead the Press Release
United States Attorney Andrew M. Luger today announced a federal indictment charging PAUL R. HANSMEIER, 35, and JOHN L. STEELE, 45, with conspiring to fraudulently obtain millions of dollars by deceiving federal and state courts. HANSMEIER was suspended from the practice of law in the State of Minnesota on September 12, 2016.
“The defendants in this case are charged with devising a scheme that casts doubt on the integrity of our profession,” said U.S. Attorney Luger. “The conduct of these defendants was outrageous – they used deceptive lawsuits and unsuspecting judges to extort millions from vulnerable defendants. Our courts are halls of justice where fairness and the rule of law triumph, and my office will use every available resource to stop corrupt lawyers from abusing our system of justice.”
“The charges announced today describe a fraud scheme perpetrated by lawyers and officers of the court who abused their positions of trust for personal enrichment,” said Special Agent in Charge of the FBI Minneapolis Division Richard T. Thornton. “The FBI remains committed to uncovering fraud such as this to protect the integrity of our civil justice system.”
“The role of IRS Criminal Investigation becomes even more important in complex financial investigations involving money laundering because of the time it takes to unravel,” stated Special Agent in Charge Shea Jones, St. Paul Field Office. “IRS Criminal Investigation is committed to working these types of difficult financial investigations and following the criminal’s money, wherever it leads.”
According to the indictment, between 2011 and 2014, the defendants orchestrated an elaborate scheme to steal millions of dollars by threatening copyright lawsuits against individuals who supposedly downloaded pornographic movies from file-sharing websites. The defendants created and used a series of sham entities to obtain copyrights to pornographic movies – some of which they filmed themselves – and then uploaded those movies to file-sharing websites like “The Pirate Bay” in order to lure people to download the movies.
According to the indictment, to learn the identities of their potential victims, the defendants filed bogus copyright infringement lawsuits, through which they got permission from courts to subpoena internet service providers for subscriber information associated with the IP addresses used to download their pornographic movies. After getting the subscriber information, the defendants used extortionate letters and phone calls to threaten the victims with enormous financial penalties and public embarrassment unless they agreed to pay a settlement of thousands of dollars.
According to the indictment, various courts began to restrict the defendants’ ability to sue multiple individuals in the same copyrights lawsuit. So the defendants changed their tactics, in order to keep extorting victims, and began to file lawsuits falsely alleging that computer systems belonging to their sham clients had been hacked. HANSMEIER and STEELE recruited ruse defendants to facilitate their phony “hacking” lawsuits. The ruse defendants were people who had been caught downloading pornography from a file-sharing website. The ruse defendants agreed to be sued in exchange for HANSMEIER and STEELE waiving a settlement fee. The ruse defendants were a necessary part of the scheme so that HANSMEIER and STEELE could seek discovery against the ruse defendants’ supposed “co-conspirators.”
Finally, when courts became suspicious of the defendants’ tactics and motives, the defendants began a long process of lies and deceit designed to conceal the truth and deflect responsibility from themselves. As courts began to uncover the defendant’s unscrupulous litigation tactics, judges began denying the defendants’ requests to subpoena ISPs, dismissing lawsuits, accusing the defendants of deceptive and fraudulent behavior, and imposing sanctions against the defendants and their associates. For example, on May 6, 2013, the District Court for the Central District of California issued an order imposing sanctions against the defendants. The order read, in part:
Plaintiffs [including HANSMEIER and STEELE] have demonstrated their willingness to deceive not just this Court, but other courts where they have appeared. Plaintiffs’ representations about their operations, relationships, and financial interests have varied from feigned ignorance to misstatements to outright lies. But this deception was calculated so that the Court would grant Plaintiff’s early-discovery requests, thereby allowing Plaintiffs to identify defendants and exact settlement proceeds from them. With these granted requests, Plaintiffs borrow the authority of the Court to pressure settlement.
In total, the defendants obtained approximately $6,000,000 made possible by the fraudulent copyright lawsuits they peddled to courts throughout the country.This case is the result of an investigation conducted by the FBI and the Criminal Investigation Division of the IRS.
This case is being prosecuted by Assistant U.S. Attorneys Benjamin Langner and David Maclaughlin, and Brian Levine, Senior Counsel with the Computer Crime and Intellectual Property Section of the U.S. Department of Justice.
Defendant Information:PAUL R. HANSMEIER, 35
Saint Paul, Minn.Charges:
• Conspiracy to commit mail fraud and wire fraud, 1 count
• Conspiracy to commit perjury and suborn perjury, 1 count
• Conspiracy to commit money laundering, 1 count
• Wire fraud, 10 counts
• Mail fraud, 5 countsJOHN L. STEELE, 45
Unknown, FloridaCharges:
• Conspiracy to commit mail fraud and wire fraud, 1 count
• Conspiracy to commit perjury and suborn perjury, 1 count
• Conspiracy to commit money laundering, 1 count
• Wire fraud, 10 counts
• Mail fraud, 5 countsAryan Brotherhood of Mississippi Gang Member Sentenced to Life in Prison for Racketeering Conspiracy and Related OffensesRead the Press Release
A member of the Aryan Brotherhood of Mississippi (ABM) gang was sentenced to life in prison for his participation in a variety of violent criminal acts, including racketeering conspiracy, murder, kidnapping, conspiracy to possess methamphetamine with intent to distribute and other related offenses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi, Special Agent in Charge Stephen G. Azzam of the Drug Enforcement Administration’s (DEA) New Orleans Field Office, Special Agent in Charge Constance Hester of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New Orleans Field Office, Special Agent in Charge Christopher Freeze of the FBI in Mississippi and Director John Dowdy of the Mississippi Bureau of Narcotics (MBN) made the announcement.
“Even among criminal organizations, the ABM stands out for its violent and repulsive crimes,” said Assistant Attorney General Caldwell. “That is why we will continue to identify, apprehend and prosecute ABM members across the country until the communities that have been living in fear are free from ABM’s grasp.”
“This prosecution is the result of an unprecedented collaboration between the Department of Justice, federal, state and local law enforcement officers targeting a large-scale prison gang involved in violent organized crime throughout the state of Mississippi,” said U.S. Attorney Adams. “As a result of this collaborative effort, we have effectively dismantled this violent organization and sent a clear message that the United States Attorney’s Office and our law enforcement partners have an unwavering commitment to hold those individuals accountable who insist on creating an atmosphere of violence and fear in our communities.”
“The sentencing of this gang member is an example of DEA’s relentless pursuit to target organizations that plague and pollute our communities. Because drug trafficking and gang violence isn’t confined to one jurisdiction or community, it is important that law enforcement continues to work together to improve the quality of life for the citizens were serve in our communities and neighborhoods,” said Special Agent in Charge Azzam. “DEAs continued pledge to the people of Mississippi is to continue to work with all our law enforcement partners, to pursue these violent thugs, criminals and drug traffickers.”
“Violence takes a toll on our family and community. The substantial sentence imposed today drives a strong message to violent gang organizations that they will be held accountable for their actions,” said Special Agent in Charge Hester. “ATF is committed to providing every available resource to combat violent crime and illegal firearm activity. We will continue to collaborate with all of our federal, state and local law enforcement partners in identifying, disrupting and dismantling the violent gangs that prey on our communities.”
“Dismantling organized crime organizations is essential to our society,” said Special Agent in Charge Freeze. “Violent groups such as the Aryan Brotherhood are an anathema on our society and negatively affect the daily lives of all law abiding citizens. The FBI and our law enforcement partners are dedicated to disrupting and deterring the most significant gangs throughout Mississippi and enhancing the lives of all Mississippians.”
“It is a privilege for the Mississippi Bureau of Narcotics to partner with all of these law enforcement agencies to make Mississippi a safer place,” said Director Dowdy. “The sentence handed down today insures that this defendant can no longer be a menace to public safety.”
Eric Glenn Parker, 36, of Forrest County, Mississippi, a member of ABM, was sentenced on Dec. 16, 2016 to serve life in prison by U.S. District Judge Glen H. Davidson of the Northern District of Mississippi. On April 13, 2016, Parker was found guilty by a federal jury of engaging in a racketeering conspiracy, murder and methamphetamine distribution.
The ABM is the Mississippi-centered branch of the Aryan Brotherhood, a violent, “whites only,” prison-based gang with members and associates operating inside and outside of state penal institutions. The ABM is engaged in racketeering activities, including murder, attempted murder, kidnapping, assault, money laundering, firearms trafficking and trafficking in marijuana and methamphetamine, both inside and outside correctional facilities. According to trial evidence, Parker and three co-defendants served at varying times on the ABM’s three-member “wheel” that oversaw and directed ABM activity throughout Mississippi during the conspiracy.
According to evidence presented at trial, ABM leaders ordered other gang members to lure an individual to an ABM house so that they could murder him for an unpaid drug debt. ABM gang members kidnapped the victim, beat him severely, and delivered him to Parker. Parker, along with Frank George Owens Jr., his co-defendant at trial, beat the victim to death and delivered the body to a co-defendant, who burned the victim’s body for days in order to incinerate it. In addition, Parker dealt methamphetamine on behalf of the ABM, which garnered him a leadership position in the gang.
Today’s sentencing marks the culmination of a 2.5-year investigation into and prosecution of the ABM, which resulted in the conviction of 42 members and associates of the gang. Owens, 44, of D’Iberville, Mississippi, was convicted along with Parker of engaging in a racketeering conspiracy, murder and conspiracy to possess with intent to distribute at least 500 grams of methamphetamine. On Nov. 2, 2016, Owens was sentenced to life in prison and 120 months for attempted murder.
The DEA, ATF, FBI and MBN investigated the case. The U.S. Marshals Service; Federal Protective Service; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Mississippi Highway Patrol; Mississippi Bureau of Investigation; Mississippi Department of Corrections; Harrison County, Mississippi, Sheriff’s Office; South Mississippi Metro Enforcement Team; Tupelo, Mississippi, Police Department; North Mississippi Narcotics Unit; Tishomingo County, Mississippi, Sheriff’s Office; Lee County, Mississippi, Sheriff’s Office; Forrest County, Mississippi, District Attorney’s Office; Prentiss County, Mississippi, Sheriff’s Office; Jones County, Mississippi, Sheriff’s Office; Harrison County, Mississippi, Sheriff’s Office; and South Mississippi Metro Enforcement Team provided valuable assistance in the investigation. The Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Offices of the Northern and Southern Districts of Mississippi prosecuted the case.
Anchorage Man Sentenced to 17 Months for Illegal Possession and Sale of ExplosivesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Reginald Jesse Hawley, 39, of Anchorage, was sentenced by U.S. District Judge Sharon L. Gleason to serve 17 months in prison for being a felon in possession of explosives, followed by three years of supervised release.
On June 7, 2016, Hawley possessed 4 one pound "bricks" of explosives when he sold them for $2,000 to another individual. At the time of the possession and sale, Hawley had previously been convicted of crime punishable by more than one-year imprisonment and was prohibited from possessing explosives or firearms.
Judge Gleason noted the potential for danger in the illegal sale of explosives to unknown individuals.
U.S. Attorney Loeffler commends the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Federal Bureau of Investigation for the successful investigation and prosecution of this case.
Alachua County Survey Company Owner Sentenced to 30 Months in Prison for Federal Financial Fraud CrimesRead the Press Release
GAINESVILLE, FLORIDA – Matthew G. Munksgard, 41, of Archer, Florida, was sentenced yesterday to 30 months in prison for four counts of false statement to a federally insured institution and aggravated identity theft. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that Munksgard, as the owner of a land surveying company, requested and received four line-of-credit loans from Drummond Community Bank in amounts ranging from approximately $30,000 to $60,000. The loans were each secured with a survey contract as collateral, which provided for Munksgard to be paid after he completed survey work. Munksgard told the bank that he would repay the loans after he completed the survey work. When the loans became due, Munksgard informed the bank that his customers had not paid him yet because of project delays. He requested that the loan maturity dates be extended. After contacting two of Munksgard’s clients, the bank discovered that Munksgard did not have any contracts with them. Munksgard later admitted to the bank that the four contracts were fraudulent. Munksgard was convicted on September 15, 2016.
“Truthful loan applications are essential to the determination of credit worthiness in maintaining a sound banking industry,” said U.S. Attorney Canova. “Therefore, we will vigorously prosecute those who make false statements to obtain loans.”
“Financial fraud has the potential to cause immeasurable damage to our community,” said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division. “The FBI will continue to work alongside our law enforcement partners to identify, stop, and punish those who commit fraud schemes that impact our financial institutions.”
The case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Herbert S. Lindsey.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]10th Street Gang Members Sentenced on Murder Racketeering ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Kyle Eagan, 27, of Buffalo, NY, who was convicted of Racketeering Influenced Corrupt Organizations (RICO) and Murder in Aid of Racketeering, was sentenced to 265 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that between 2000 and 2010, Eagan was a member of the 10th Street Gang. As a part of his involvement with that gang, the defendant, along with other members and associates of the gang, sold marijuana, cocaine, crack cocaine, and other controlled substances on the West Side of Buffalo. Eagan and others also committed acts of violence, including murder, against rival gang members and rival drug dealers.
Specifically, Eagan admitted that the multiple acts of murder and attempted murder consisted of shooting at the victims with firearms, with one of the shooting incidents occurring in “drive-by” fashion on city streets. The violent acts consisted of:
• On September 15, 2008, Eagan and another individual shot at a group of rival 7th Street gang members killing Omar Fraticello-Lugo.
• On August 12, 2009, Eagan and a fellow 10th Street Gang member shot an individual nine times. The individual survived.
• On September 7, 2009, Eagan shot at rival 7th Street Gang members.
• October 17, 2009, Eagan shot at a rival 7th Street gang associate.Eagan is one of 44 10th Street Gang members and associates charged and convicted in this case.
The sentencing is the culmination of an investigation on the part of Investigators of the New York State Police, under the direction of Major Steven Nigrelli, the Buffalo Police Department, under the direction of Commission Daniel Derenda, and Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
Thursday 15 December 2016
“Real Time”: Felon Who Attempted to Evade Officers Sentenced to 10 Years in Federal Prison for Firearms PossessionRead the Press Release
Contact Person: Lance Crick (864) 282-2100
COLUMBIA, South Carolina ---- Acting United States Attorney Beth Drake stated today that Amancio Joshua Venegas, age 32, of Gaffney, was sentenced to ten years in federal prison following a guilty plea to federal gun charges. United States District Judge Timothy M. Cain presided over both the guilty plea hearing, held on April 25, 2016, and yesterday’s sentencing hearing in Anderson. Venegas was arrested on federal charges shortly after his state arrest and has remained in custody, detained without bond, since his federal arrest. Venegas received the statutory maximum sentence for his conduct.
The facts presented at both the guilty plea hearing as well as the sentencing hearing established that on August 19, 2016, Venegas, a previously convicted felon who is prohibited from possessing firearms or ammunition, drove an underage female to a restaurant parking lot in Cowpens in an ill-fated attempt to facilitate a methamphetamine drug deal. In the days leading up to the attempted drug deal, Venegas helped the female acquire a loaded .22 caliber pistol which she had in her purse as she approached her drug customer. Venegas was aware when she got out of his vehicle that she was in possession of the firearm.
The deal quickly went south as the prospective customer turned out to be an undercover police officer. As police quickly moved in to make arrests, Venegas fled the parking lot in his Jeep Cherokee, hitting a pedestrian in the process. In his attempt to flee, Venegas ultimately abandoned his vehicle after running it into a median guidewire on Interstate 85 in Cherokee County and then ran into the woods before being taken into custody.
Arrested on state charges on August 19, 2015, Venegas’ case was immediately adopted for federal investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Venegas was arrested on federal warrants on August 24, 2016. This investigation was one of the first cases adopted as part of the US Attorney’s Office’s “Real Time” prosecutions in the upstate.
“Real Time” is an ongoing local, state, and federal initiative that expedites the identification, arrest, detention, and federal prosecution of repeat offenders arrested with firearms. The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the upstate. Venegas was on state probation at the time of his firearms possession and flight, having been released from the South Carolina Department of Corrections 47 days earlier.
The case was investigated by the Cowpens Police Department, the Gaffney Police Department, the Spartanburg County Sheriff’s Office, the Cherokee County Sheriff’s Office, the South Carolina Highway Patrol, the South Carolina Law Enforcement Division, the 7th Circuit Solicitor’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Lance Crick of the Greenville office prosecuted the case.
Acting U.S. Attorney Beth Drake commended the continuing partnership between the state and federal agencies in keeping our communities safe: “We work best when we work together. We welcome the opportunity to work alongside our state chiefs and sheriffs in taking individuals who illegally possess firearms out of our communities.
7th Circuit Solicitor Barry Barnette and his office serve as an active partner in the Real Time efforts. “This multi-agency partnership endeavors to keep our communities safe and reduce firearms violence through ‘real time’ identification of dangerous individuals who seek to disrupt our streets and communities with firearms-driven violence.”
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Western District of Virginia U.S. Attorney’s Office Collects $9,663,834 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
Roanoke, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today that the Western District of Virginia collected $9,663,834 in criminal and civil actions in fiscal year 2016. Of this amount, $9,266,499 was collected in criminal actions and $397,334 was collected in civil actions.
Additionally, the Western District of Virginia worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $7,775,772 in cases pursed jointly with these offices. Of this amount, $1,541,247, was collected in criminal actions and $6,234,475, was collected in civil actions.
Attorney General Loretta E. Lynch announced yesterday that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending September 30, 2016. The $15,380,130,434 in collections for FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
“I am proud of our office’s work in collecting money from criminals,” United States Attorney Fishwick said today. “The lawyers and staff here work diligently to deprive criminals of their ill-gotten gains and to recover funds for crime victims.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Western District of Virginia, working with partner agencies and divisions, collected $8,531,233 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Funds are used to restore funds to crime victims and for a variety of law enforcement purposes.
United States Files Complaint Seeking Forfeiture of Antiquities Associated with the Islamic State of Iraq and the Levant (ISIL)Read the Press Release
WASHINGTON – The U. S. Department of Justice announced today that the United States has filed a civil complaint seeking the forfeiture of multiple antiquities associated with the Islamic State of Iraq and the Levant (ISIL), also known as Da’esh. The complaint alleges that ISIL, which is designated by the U.S. Department of State as a Foreign Terrorist Organization, markets and sells antiquities to finance its terror operations.
The lawsuit marks the first time that the United States has filed an action to forfeit antiquities that are foreign assets of ISIL.
The action, which was filed in the U.S. District Court for the District of Columbia, specifically seeks the forfeiture of four archaeological items that were depicted in photographs found during a raid of a residence of Abu Sayyaf, a senior leader within ISIL, near Deir Ezzor, Syria, in May 2015. The items include a gold ring, two gold coins, and a carved stone. They date to ancient times and are believed to be worth hundreds of thousands of dollars. The FBI is pursuing recovery of these items.
The lawsuit was filed by the U.S. Attorney’s Office for the District of Columbia following an investigation into items seized in the raid. During the operation, Abu Sayyaf was killed when he engaged with U.S. military forces.
According to the civil complaint filed today, the United States recovered data from electronic media during the raid, including photographs of the four items at issue in the complaint. The complaint also makes public documents recovered from the raid that reveal significant information about the organizational structure of ISIL, and how ISIL created a sophisticated bureaucratic system for extracting wealth from sites containing materials that are important to the cultural heritage of the people of Syria and Iraq. For example, according to the lawsuit, excavation permits and receipts of collections written on ISIL letterhead (which are attached to the complaint) were passed among members of the Antiquities Department. Abu Sayyaf referred to himself in these documents as the President of the Ministry of Natural Resources Antiquities Department. There are also discussions of depositing the proceeds of ISIL’s antiquities trafficking into ISIL’s treasury.
According to analysis by antiquities experts, the documentary style, lighting, and focus of the photographs indicate that the photographed antiquities were prepared for marketing in order to sell the items internationally. The subsequent investigation has revealed that ISIL sold antiquities in U.S. dollars, including of at least one of the antiquities in the complaint.
Under United States law, all assets, foreign or domestic, of a terrorist or terrorist organization, and all assets, foreign or domestic, affording a source of influence over any such entity or organization, are subject to forfeiture.
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“This complaint demonstrates the United States government’s intent to diligently pursue actions that will limit the ability of ISIL and other terrorist organizations to generate revenue,” said Channing D. Phillips, U.S. Attorney for the District of Columbia. “This complaint also serves as a warning to those who traffic in precious antiquities and who seek to profiteer from ISIL’s exploitation of the cultural heritage of areas under its control.”
“The documents unsealed today reveal that ISIL specifically directed its members to steal archaeological objects for purposes of selling them on the black market in order to use the proceeds to support this designated terrorist organization,” said Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office. “ISIL members extorted and threatened to arrest anyone outside of the terrorist organization who attempted to excavate, sell or transport antiquities from the territory under their control. It is essential for the FBI to recover these items so that we can stop the illegal flow of funds to support terrorist activity and repatriate these historical treasures.”
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Specifically, the complaint alleges that the following items are subject to forfeiture:
1) Gold ring with carved gemstone
This ring is believed to be from the Hellenistic/Roman period, dating approximately from 330 BC to 400 AD, and to have come from Deir Ezzor, Syria, which is near where the raid against Abu Sayyaf occurred.2) Gold coin featuring Antoninus Pius
This coin is believed to be Roman, dating to approximately 138-161 A.D., and is sourced to any large, urban Hellenistic or Roman city in Syria, including Apamea, Palmyra, Dura Europos, or Bosra.3) Gold coin featuring Emperor Hadrian Augustus Caesar
This coin is believed to be Roman, dating to approximately 125-128 AD, was probably minted in Rome, and is sourced to any large, urban Hellenistic or Roman city in Syria, including Apamea, Palmyra, Dura Europos, or Bosra.4) Carved Neo-Assyrian Stone
This is believed to be the upper portion of a round‐topped stone stela (upright stone slab bearing a relief design) carved with an image of a provincial official, most likely a eunuch, facing left, with his right forearm and hand raised. This item is believed to be from the archaeological site of Tell Ajaja in the Khabur region of northern Syria.Because civil forfeitures are suits against the property itself, the complaint names the four above antiquities as the defendants. The claims made in the complaint are only allegations and do not constitute a determination of liability.
This case is being investigated by the FBI’s Washington Field Office, with support from the U.S. Department of State. Assistant U.S. Attorneys Arvind K. Lal, Zia M. Faruqui, Deborah Curtis, Brian P. Hudak, Christopher B. Brown, and Ari Redbord, with the assistance of Paralegal Specialist Toni Donato, all from the U.S. Attorney’s Office for the District of Columbia, are representing the government.
The FBI reminds the public to come forward with any information they may have about stolen art or cultural heritage items. Tips can be submitted to tips.fbi.gov. Tipsters may remain anonymous.
Art and cultural item buyers are recommended to review the FBI’s National Stolen Art File prior to a purchase to avoid civil forfeiture of stolen items.
In addition, the U.S. Department of State's Rewards for Justice program is offering rewards for information that will disrupt the trade of trafficking of antiquities that benefit ISIL. The Secretary of State has authorized a reward of up to $5 million for information leading to the significant disruption of the sale and/or trade of antiquities by, for, on behalf of, or to benefit ISIL.
U.S. Postal Service Worker Charged with Importing a Controlled SubstanceRead the Press Release
BOSTON – An employee of the United States Postal Service (USPS) was charged today in U.S. District Court in Boston in connection with purchasing and importing anabolic steroids.
John A. Psehoyas, 54, was charged with one count of importation of a controlled substance. According to the terms of the plea agreement also filed today, Psehoyas has agreed to plead guilty and resign from USPS. A plea hearing has not yet been scheduled.
According to the charging document, Psehoyas was a customer service supervisor at the Lynnfield, Mass. Post Office. From August 2014 to March 2016, Psehoyas purchased anabolic steroids, a controlled substance, from online sources. He had the parcels containing steroids shipped to him from China, Poland, Turkey and Romania. The parcels were addressed to multiple addresses to avoid suspicion, but Psehoyas tracked the parcels using a USPS tracking system.
The charging statute provides for a sentence of no greater than 15 years in prison, three years of supervised release and a fine of $500,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Eileen Neff, Special Agent in Charge of the Office of Inspector General for the U.S. Postal Service, made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption Unit is prosecuting the case.
The details contained in the Information are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Citizen Charged with Conspiring to Provide Unlawful Services to Iran and International Money Laundering ConspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a U.S. citizen has been indicted on federal charges for his alleged role in a scheme to provide services to Iran which resulted in the unlawful distribution of approximately $1 billion United States dollars equivalent of Iranian owned funds. These funds were held in South Korea in restricted accounts, then transferred to more than 10 countries around the world, including the United States, United Arab Emirates, Switzerland, Germany, Austria and Italy. These transfers were in violation of the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSR).
Kenneth Zong, 77, is named as the sole defendant in the 47-count indictment charging him with conspiracy to violate IEEPA, unlawful provision of services to Iran, money laundering conspiracy, and money laundering. The indictment alleges that Zong, a U.S. citizen, spent most of his adult life residing in, and doing business in Anchorage, Alaska. At a time undetermined, Zong left Alaska for Seoul, South Korea, and operated businesses there. The indictment alleges that in January 2011, and continuing through at least April 2014, Zong and four co-conspirators – three Iranian nationals and one U.S. citizen – conspired to evade the prohibitions of IEEPA and ITSR by engaging in false, fictitious and fraudulent transactions which were designed to unlawfully convert and remove Iranian owned funds equivalent to approximately $1 billion United States dollars. These funds were held in controlled Korean bank accounts, and converted into more easily tradeable currencies, such as dollars and/or euros, by defrauding the Korean regulators into thinking the transactions were legitimate. Zong is charged with transferring those currencies worldwide, and receiving payment for these acts from the Iranian nationals in an amount from $10 million to $17 million USD.
The indictment alleges that the scheme began in 2011, when Zong changed the name of his Korean company, “KSI Ejder, Inc.” (KSI) to “Anchore.” Zong used KSI/Anchore as a conduit to convert and distribute Iranian funds into United States currency or, in some cases euros, by fictitiously selling marble tiles and other construction supplies to an Iranian shell company in Kish Island, Iran. The indictment alleges that KSI/Anchore fictitiously purchased Italian marble tiles and other construction supplies from “MSL & Co Investment Trading” (MSL Investment Dubai), an Iranian-controlled shell company in Dubai, which were then fictitiously shipped directly to another fictitious company in Iran. Zong and his co-conspirators created false and fictitious contracts, bills of lading, and invoices to show Korean government banking regulators that the Iranian company owed KSI/Anchore for the false marble purchases. This resulted in the transfer of Iranian funds, at the direction of Zong’s co-conspirators, from the restricted Iranian bank account to Zong’s KSI/Anchore account. Zong then transferred the funds to entities and individuals throughout the world, including Alaska and other countries in the Middle East, Europe and North America.
Zong is also charged with 43 counts of money laundering and one count of money laundering conspiracy for his actions in connection with the $10 million dollar fee paid to him by his Iranian associates. In furtherance of the scheme, Zong transferred $10 million of his fees from Korea to a co-conspirator who resided in Anchorage. This individual also created and operated various companies to be used as front companies to purchase real estate, automobiles, an interest in a yacht and other purchases or transfers of the Iranian funds.
The U.S. embargo on Iran, which is enforced through IEEPA and the ITSR, prohibits the export of goods, technology, and services to Iran with very limited exceptions.
An arraignment date has not been set.
U.S. Attorney Loeffler commended the IRS-Criminal Investigation and the FBI for the investigation of this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
U.S. Attorney’s Office for the Middle District of Alabama Collects over $2.6 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
Montgomery, Alabama- U.S. Attorney George L. Beck Jr. announced today that the Middle District of Alabama collected $2,639,626.76 in criminal and civil actions in Fiscal Year 2016. Of this amount, $2,317,486.29 was collected in criminal actions and $322,140.47 was collected in civil actions.
Attorney General Loretta E. Lynch announced on Wednesday, December 14, 2016 that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
In addition to the $2.6 million collected above, the U.S. Attorney’s office in Middle District of Alabama working with partner agencies and divisions, collected $877,880.00 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
One example of a significant asset forfeiture occurred in September 2016 when the Middle District of Alabama recovered $404,135.00 as part of the settlement in the Curtis Pope case. On August 11, 2015, a state trooper conducted a commercial vehicle safety inspection on a tractor trailer that was not carrying any cargo. After a K-9 alerted to the presence of the odor of narcotics within the cabin of the vehicle, the trooper discovered in excess of $500,000.00 in U.S. currency within vacuum-sealed bags hidden within the mattress, along with dryer sheets. The driver admitted to log book violations and to the fact that he neither delivered nor picked up a load to transport during the trip.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
“My office is committed to protecting the public and recovering funds for the victims of crime as well as every taxpayer,” said U.S. Attorney Beck. “Unfortunately, there is enormous profit in crime and these profits come at the expense of hardworking citizens. We will continue to hold accountable, both civilly and criminally, those who seek to make money from illegal activities. I am also pleased that a significant amount of the asset forfeiture funds collected are returned to state and local law enforcement agencies who already struggle with limited budgets and resources.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
U.S. Attorney’s Office for the Middle District of Pennsylvania Collects over $14.5 Million on Behalf of U.S. Taxpayers in Fiscal Year 2016Read the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the Middle District of Pennsylvania collected $14.5 million in criminal and civil actions in Fiscal Year 2016. Of this amount, $2.1 million was collected in criminal actions and $12.3 million was collected in civil actions.
The $14.5 million collected exceeds the Office’s $8.9 million appropriated budget by approximately $5.6 million.
Additionally, the U.S. Attorney’s Office in the Middle District of Pennsylvania, working with partner agencies and divisions, collected over $4 million in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Attorney General Loretta E. Lynch announced on December 14, 2016, that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15.4 billion in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
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U.S. Attorney’s Office Collects $156 Million in Criminal and Civil Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
ALEXANDRIA, Va. – U.S. Attorney Dana J. Boente announced today that the Eastern District of Virginia (EDVA) collected $156,514,010.12 in criminal and civil actions in Fiscal Year 2016. Of this amount, $49,997,392.53 was collected in criminal actions and $106,516,617.59 was collected in civil actions.
Additionally, EDVA worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $3,635,377.40 in cases pursued jointly with these offices. Of this amount, $29,737.34 was collected in criminal actions and $3,605,640.06 was collected in civil actions.
Attorney General Loretta E. Lynch announced yesterday that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
U.S. Attorney’s Office Collects $13 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016.Read the Press Release
CINCINNATI - U.S. Attorney Benjamin C. Glassman announced today that the Southern District of Ohio collected more than $13 million in criminal and civil actions in Fiscal Year 2016. Of this amount, $10.7 million was collected in criminal actions and $2.4 million was collected in civil actions.
Additionally, the Southern District of Ohio worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $73.5 million in cases pursued jointly with these offices. Of this amount, $62 million was collected in criminal actions and $11.5 million was collected in civil actions.
Attorney General Loretta E. Lynch announced yesterday that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
In the Southern District of Ohio, the largest single recovery in a criminal case this year involved restitution of more than $3.8 million from U.S. v. Joseph Molnar.
Molnar was a Managing Director for a Huntington National Bank subsidiary, Huntington Community Development Corporation. He embezzled approximately $4 million of the bank’s funds by falsely representing that he was paying “placement fees” or “advisory fees” for property management companies as part of several affordable housing property deals that had closed with Huntington National Bank. Instead, Molnar withdrew the funds under false pretenses and placed that money into his own accounts for his own personal use.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
U.S. Attorney's Office for the Southern District of Illinois Collect $10,286,273 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois announced today that his office collected $10,286,273 in criminal and civil actions in Fiscal Year 2016. Of this amount, $1,612,396 was collected in criminal actions and $8,673,877 was collected in civil actions.
Additionally, the Southern District of Illinois worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $805,940 in civil actions.
Attorney General Loretta E. Lynch announced on December 14, 2016 that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ Offices and the main litigating divisions of the Justice Department combined in that same period.
"Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse," said Attorney General Lynch. "Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation."
"My office will pursue the collection of monies owed the United States. The honest and law-abiding citizens of southern Illinois deserve no less than our best efforts. As always, no legal avenue to collect debts owed the United States will go unused," noted United States Attorney Boyce.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the United States Attorney’s Office for the Southern District of Illinois, working with partner agencies and divisions, collected $703,831 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Two Ordered to Federal Prison for Involvement in Romance Scam ConspiracyRead the Press Release
HOUSTON – Two Nigerian citizens have been ordered to prison for their role in a $2 million romance scam conspiracy, announced U.S. Attorney Kenneth Magidson. Kunle Mutiu Amoo, 49, and Lanre Sunday Adeoba, 62, both citizens of Nigeria, each pleaded guilty to one count of conspiring to commit wire fraud on July 15, 2016.
Today, U.S. District Judge Alfred H. Bennett sentenced both defendants to 36 months in prison. They were further ordered to pay $86,581.15 in restitution. In handing down the sentence, Judge Bennett noted that as a result of the offense, the victim had suffered substantial financial hardship and that the defendants had abused a position of trust by falsely representing themselves as diplomats from South Africa. Not U.S. citizens, they are expected to face deportation proceedings following their release from prison.
The romance scam involved a scheme to defraud victims of money using false romantic overtures and false promises that the victims would be repaid. In this conspiracy, a member of the conspiracy posed as the manager of a construction company doing business in South Africa who needed the victim’s financial assistance to move $42 million in construction project proceeds from South Africa to the United States. The defendants posed as South African diplomats who were responsible for transporting the money into the United States and who also needed the victim’s financial assistance in order to transport the money.
As part of their pleas, Amoo and Adeoba admitted they agreed and attempted to defraud this victim of $506,000.
The overall conspiracy caused the victim a loss of $2 million.
Amoo and Adeoba will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
According to the FBI, romance scams, also classified as confidence frauds, result in the highest amount of financial losses when compared to other Internet-enabled crimes. In 2015, victims of confidence frauds reported financial losses of nearly $200 million to the FBI's Internet Crime Complaint Center. If you think you've been victimized by a dating or other online scam, report it to www.ic3.gov.
The FBI conducted the investigation. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.