Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
18 January 2017
Former East Hartford Resident Admits Robbing More than $21K from USPS Employee in HartfordRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DION EDWARD THOMPSON, 39, formerly of East Hartford, pleaded guilty yesterday in Hartford federal court to robbing a U.S. Postal Service employee in Hartford in September 2014.
According to court documents and statements made in court, on September 9, 2014, THOMPSON, and another man who was armed with what appeared to be a firearm, robbed a U.S. Postal Service employee of U.S. Postal Service funds at the Barry Square Post Office, located at 645 Maple Avenue in Hartford. The robbery occurred as the employee was loading the Post Office’s daily proceeds into a postal vehicle, which was parked at the loading dock. Approximately $21,817 in cash, checks and money orders was stolen during the robbery.
THOMPSON pleaded guilty to one count of robbery of a U.S. Postal Service employee, which carries a maximum term of imprisonment of 10 years. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on April 20, 2017.
THOMPSON is currently detained.
This investigation is being conducted by the U.S. Postal Inspection Service with the assistance of the Hartford Police Department and the Colorado Springs (Colo.) Police Department. The case is being prosecuted by Assistant U.S. Attorneys Deborah R. Slater and Douglas P. Morabito.
Former Chicago Police Dispatch Supervisor Pleads Guilty to Federal Extortion Charge in Connection with Scheme to Smuggle Contraband into Cook County JailRead the Press Release
CHICAGO — A former dispatch supervisor for the Chicago Police Department admitted in federal court today that she provided private government information to her boyfriend in an effort to help smuggle contraband into Cook County Jail.
STEPHANIE LEWIS used her position in the City of Chicago Office of Emergency Management and Communications to access law enforcement databases to locate the personal information of a corrections officer at the jail, according to a written plea agreement. Lewis provided the information to her boyfriend, an inmate in the jail who had schemed with the officer and others to smuggle in the contraband to sell to other inmates. Lewis admitted in the plea agreement that she knew her boyfriend and the others used the information to threaten the officer with physical harm unless he continued with the scheme and smuggled additional contraband into the jail.
Lewis, 42, of Chicago, pleaded guilty to one count of conspiracy to commit extortion. The conviction carries a maximum sentence of 20 years in prison. U.S. District Judge Charles R. Norgle set sentencing for April 26, 2017, at 11:30 a.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Cook County Sheriff Thomas J. Dart; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Lewis’ guilty plea brings to five the number of defendants convicted in the case. The prior convictions include the corrections officer, JASON MAREK, who admitted delivering contraband, including marijuana, tobacco and alcohol, to a jail inmate after tucking it into sandwiches and sneaking it past security. Marek was assigned to a maximum-security tier of the jail when he smuggled in the goods in May and June 2013.
Lewis’ boyfriend, PRINCE JOHNSON, of Chicago, has pleaded not guilty to conspiracy charges and is awaiting trial.
The government is represented by Assistant U.S. Attorney Megan Cunniff Church.
Five Mission, Texas Residents and One Oklahoman Plead Guilty to Participating in Drug Trafficking and Money Laundering SchemeRead the Press Release
In San Antonio today, six individuals pleaded guilty to their roles in a drug trafficking and money laundering conspiracy occurring in South Texas, Central Texas and Oklahoma announced United States Attorney Richard L. Durbin, Jr., Western District of Texas; United States Attorney Kenneth Magidson, Southern District of Texas; Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter, San Antonio Division; and, Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit, Houston Division.
Appearing before United States District Judge Xavier Rodriguez this afternoon:
-
Juan Villarreal-Arelis (aka “Juando”), age 43, of Mission, pleaded guilty to one count of conspiracy to commit money laundering and one count of possession with intent to distribute cocaine;
-
Jose Luis Villarreal-Gonzalez (aka “Nune”), age 32, of Mission, pleaded guilty to one count of conspiracy to commit money laundering and one count of possession with intent to distribute cocaine;
-
Manuel Villarreal-Garcia, age 40, of Mission, pleaded guilty to one count of conspiracy to commit money laundering and one count of possession with intent to distribute cocaine;
-
Jovanna Villarreal-Diaz, age 37, of Mission, pleaded guilty to one count of conspiracy to commit money laundering;
-
Raymundo Villarreal, Jr. (aka “Mundito”), age 23, of Mission; pleaded guilty to one count of conspiracy to commit money laundering and one count of conspiracy to structure transactions to evade reporting requirements; and,
-
Denis Winn, age 54, of Tecumseh, OK, pleaded guilty to one count of conspiracy to structure transactions to evade reporting requirements.
By pleading guilty, the defendants admittedly conspired since January 2000 to: (1) engage in financial transactions using proceeds derived from the importation, receiving, concealment, buying, and/or selling cocaine; and (2), transport or transmit monetary instruments to locations outside of the United States in an effort to conceal the source, ownership and control of proceeds derived from unlawful activity.
Raymundo Villarreal, Jr., and Denis Winn also admitted that in October and November 2011, they purchased American Quarter Horses from an auction house in Oklahoma using drug proceeds collected in San Antonio. Furthermore, payments for horses were made under $10,000 so as to avoid having to complete an IRS form 8300, which would have alerted the IRS and possibly raised suspicion about the source of the funds.
The defendants face sentences of between ten years and life in federal prison on the drug charge; up to 20 years in federal prison for the money laundering conspiracy charge; and, up to five years in federal prison on the structuring charge. Sentencing is scheduled for May 24, 2017.
Nine defendants remain under indictment in this case. Jury selection and trial is set for March 13, 2017.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
This investigation was conducted by the Internal Revenue Service-Criminal Investigation Waco Treasury Task Force comprised of IRS-CI, Irving Police Department, Woodway Police Department, Texas Department of Public Safety and the McLennan County Sheriff’s Office together with the Drug Enforcement Administration’s McAllen, San Antonio and Houston field offices and Homeland Security Investigations.
-
Federal Jury Convicts Lockport Woman of Scheming to Defraud a Not-For-Profit Organ Donation NetworkRead the Press Release
CHICAGO — A Lockport woman was convicted on federal fraud charges today for scheming to swindle money from a not-for-profit network that coordinated organ and tissue donations in Illinois and northwest Indiana.
DEBRA A. SCHULTZ received the proceeds of false invoices which had been submitted to the organization by purported physicians for alleged organ and tissue procurement. The procurement work was not actually performed, and the invoices were fraudulent. A co-defendant, SHARI L. HANSEN, who worked as an auditing coordinator for the organization, approved the payments for the bogus invoices, causing the organization to issue checks to Schultz and another co-defendant, ERIC V. MURFF.
The scheme netted the defendants $ 652,298 in illegal profits. Schultz retained thousands of dollars of the stolen funds for her own benefit.
The jury convicted Schultz, 46, on all three counts of wire fraud. The convictions carry a maximum sentence of 60 years in prison. U.S. District Judge Robert M. Dow Jr. scheduled a sentencing hearing for May 19, 2017.
The verdict was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and E.C. Woodson, Postal Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. Evidence at trial revealed that the scheme began no later than March 2008 and continued until at least April 2010. Hansen created or caused to be created fraudulent invoices that she submitted to the not-for-profit organization. The invoices requested payment to Schultz and Murff for organ and tissue procurement work that the defendants knew was not actually performed. Many of the false invoices specified that Murff as well as Schultz’s son, identified as Individual A, were doctors who performed organ and tissue procurement, when in reality neither Murff nor Individual A did any such work and was not a physician. Indeed, when the fraud began, Individual A was 17 years old and attending high school.
Hansen, in her role as auditing coordinator, approved the fake invoices, thereby authorizing and directing the organization to issue checks to Murff and Schultz’ son. Murff and Schultz pocketed some of the money and transferred other portions of the funds to one or more bank accounts held in Hansen’s name.
Federal Inmates Indicted for AssaultRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jeffrey Lynn Mattox, age 32, and Clayton John Shinn, age 26, inmates at the United States Penitentiary, Canaan, in Waymart, Pennsylvania, were indicted on January 17, 2017, by a federal grand jury for assault.
According to United States Attorney Bruce D. Brandler, the indictment alleges that on October 4, 2016, Mattox and Shinn assaulted another inmate by repeatedly striking, punching and kicking the inmate, resulting in serious bodily injury.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Prisons. Assistant United States Attorney Michelle Olshefski is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Environment and Natural Resources Division and National Association of Attorneys General Announce Guidelines for Joint State-Federal Civil Environmental EnforcementRead the Press Release
The Department of Justice’s Environment and Natural Resources Division and the National Association of Attorneys General announced the availability today of Guidelines for Joint State/Federal Civil Environmental Enforcement Litigation. A workgroup of litigators from the Environment and Natural Resources Division, the NAAG’s National Attorneys General Research and Training Institute, and state attorney general offices developed these guidelines as a revision to a document originally issued in 2003.
The Guidelines provide a general framework for cooperation between sovereigns in joint civil environmental enforcement litigation and derive from lessons learned in such cases over many years. They include both organizational and substantive suggestions on common topics that arise in joint civil enforcement matters, including case management and settlement issues, pre-filing considerations, and information sharing. They also include several appendices with sample documents and reference information.
“Cooperative federalism is fundamental to the structure and effectiveness of our Nation’s environmental laws, and the Environment and Natural Resources Division vigorously pursues opportunities to partner with our state and local counterparts in environmental enforcement,” said Assistant Attorney General John C. Cruden. “In doing so, we combine sovereigns, reduce costs, and obtain more comprehensive results for the American people. These Guidelines draw on the expertise of a variety of litigators and will be a valuable resource to environmental enforcement colleagues at all levels of government. I am grateful to the National Association of Attorneys General for partnering with the Division on this project.”
“The National Attorneys General Training and Research Institute appreciated the opportunity to work with U.S. Department of Justice’s Environment and Natural Resource Division staff in this collaborative effort to provide information that it anticipates will be helpful to our members,” said Chris Toth, Deputy Executive Director of the National Association of Attorneys General and Director of the National Attorneys General Training and Research Institute (NAGTRI). “Most importantly, NAGTRI would like to offer an extended thank you to attorneys from the New York and Michigan Offices of the Attorney General who worked diligently on this endeavor.”
You can access the Guidelines on the ENRD website.
East Lyme Man Pleads Guilty to Heroin Distribution Charge Stemming from Overdose DeathRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that CHRISTOPHER STEVENS, 25, of East Lyme, waived his right to be indicted and pleaded guilty today in New Haven federal court to one count of distribution of heroin. This prosecution is part of 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, early in the morning of June 4, 2016, East Lyme Police and emergency medical personnel responded to a vehicle parked on the side of a road with its engine running and found a 25-year-old male slumped over dead in the driver’s seat, and a young child in the rear seat. Investigators also found a torn wax paper baggy in the man’s hand and several other baggies under his body.
The Office of the Chief Medical Examiner for the State of Connecticut subsequently determined that the victim died from acute heroin and fentanyl toxicities.
The investigation revealed that, shortly before he overdosed, the victim met STEVENS at STEVENS’ East Lyme residence, and STEVENS provided heroin to the victim at that time.
The charge of distribution of heroin carries a maximum term of imprisonment of 20 years. STEVENS is scheduled to be sentenced by U.S. District Judge Jeffrey A. Meyer on April 12, 2017.
This matter is being investigated by the Drug Enforcement Administration’s Tactical Diversion Squad with the assistance of the East Lyme Police Department.
This case is being prosecuted by Assistant U.S. Attorneys Jennifer P. Laraia and Michael E. Runowicz.
District Man Pleads Guilty to Federal Charge for Trafficking in Counterfeit GoodsRead the Press Release
WASHINGTON – Arthur Chan, 31, of Washington, D.C., pled guilty today to a federal charge involving the sale of counterfeit designer apparel and accessories, announced U.S. Attorney Channing D. Phillips, Clark E. Settles, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Washington, D.C., and Michael W. Sonntag, Special Agent in Charge, Eastern Field Office, National Aeronautics and Space Administration (NASA) Office of Inspector General.
Chan pled guilty in the U.S. District Court for the District of Columbia to trafficking in counterfeit goods. The charge carries a statutory maximum of 10 years in prison and potential financial penalties. Under federal sentencing guidelines, Chan faces a likely range of 10 to 16 months in prison and a fine of up to $55,000. The plea agreement also calls for Chan to pay a forfeiture money judgment of $37,246, which represents the amount of proceeds he generated through the crimes. He is to be sentenced on May 9, 2017, by the Honorable Rosemary M. Collyer.
According to a statement of offense, signed by the defendant as well as the government, Chan is a resources analyst at NASA’s Goddard Space Flight Center in Greenbelt, Md. Between November 2013 and March 2016, according to the statement of offense, he used two personal eBay accounts to complete approximately 610 sales of apparel and accessories bearing marks identical with, or substantially indistinguishable from, those registered to Hugo Boss.
Chan imported all of these items from India to a mailbox he maintained at a UPS store in Lanham or his residence in Washington, D.C. According to the statement of offense, he netted a total of $37,246 from the sale of these items. During the investigation, law enforcement seized a variety of counterfeit items, including 113 counterfeit Hugo Boss wallets; 18 counterfeit Ralph Lauren Polo wallets; three counterfeit Fred Perry wallets; 23 counterfeit Hugo Boss Polo shirts; two counterfeit Fred Perry Polo shirts, and counterfeit Hugo Boss and Ralph Lauren packaging.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Washington, D.C., and the NASA Office of Inspector General. Hugo Boss AG, based in Metzingen, Germany, provided assistance to the investigative team. The matter is being prosecuted by Assistant U.S. Attorney Michael J. Marando, with assistance on asset forfeiture issues from Special Assistant U.S. Attorney Andrea Duvall.
Credit Suisse Agrees to Pay $5.28 Billion in Connection with its Sale of Residential Mortgage-Backed SecuritiesRead the Press Release
The Justice Department announced today a $5.28 billion settlement with Credit Suisse related to Credit Suisse’s conduct in the packaging, securitization, issuance, marketing and sale of residential mortgage-backed securities (RMBS) between 2005 and 2007. The resolution announced today requires Credit Suisse to pay $2.48 billion as a civil penalty under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). It also requires the bank to provide $2.8 billion in other relief, including relief to underwater homeowners, distressed borrowers and affected communities, in the form of loan forgiveness and financing for affordable housing. Investors, including federally-insured financial institutions, suffered billions of dollars in losses from investing in RMBS issued and underwritten by Credit Suisse between 2005 and 2007.
“Today’s settlement underscores that the Department of Justice will hold accountable the institutions responsible for the financial crisis of 2008,” said Attorney General Loretta E. Lynch. “Credit Suisse made false and irresponsible representations about residential mortgage-backed securities, which resulted in the loss of billions of dollars of wealth and took a painful toll on the lives of ordinary Americans. Under the terms of this settlement, Credit Suisse will pay $2.48 billion as a fine for its conduct. And Credit Suisse has pledged $2.8 billion in relief to struggling homeowners, borrowers, and communities affected by the bank’s lending practices. These sums reflect the huge breach of public trust committed by financial institutions like Credit Suisse.”
“Credit Suisse claimed its mortgage backed securities were sound, but in the settlement announced today the bank concedes that it knew it was peddling investments containing loans that were likely to fail,” said Principal Deputy Associate Attorney General Bill Baer. “That behavior is unacceptable. Today's $5.3 billion resolution is another step towards holding financial institutions accountable for misleading investors and the American public.”
“Resolutions like the one announced today confirm that the financial institutions that engaged in conduct that jeopardized the nation’s fiscal security will be held accountable,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “This is another step in the Department’s continuing effort to redress behavior that contributed to the Great Recession.”
“Credit Suisse’s mortgage misconduct hurt people, including in Colorado,” said Acting United States Attorney for the District of Colorado Bob Troyer. “Unscrupulous lenders knew they could get away with shoddy underwriting when making mortgage loans, because they knew Credit Suisse would buy those defective mortgage loans and put them into securities. When those mortgages went into foreclosure, many people got hurt: families lost their homes, communities were blighted by empty houses, and investors who had put their trust in Credit Suisse’s supposedly safe securities suffered huge losses. Our office led this investigation into Credit Suisse to protect homeowners, communities, and investors across the country, including here in Colorado. Credit Suisse is paying a hefty penalty and acknowledging its misconduct, but that is not all. Years after the Great Recession, many families still struggle to afford a home, so we also crafted an agreement to bring needed housing relief to such families, including specifically in Colorado.”
This settlement includes a statement of facts to which Credit Suisse has agreed. That statement of facts describes how Credit Suisse made false and misleading representations to prospective investors about the characteristics of the mortgage loans it securitized. (The quotes in the following paragraphs are from that agreed-upon statement of facts, unless otherwise noted.):
- Credit Suisse told investors in offering documents that the mortgage loans it securitized into RMBS “were originated generally in accordance with applicable underwriting guidelines,” except where “sufficient compensating factors were demonstrated by a prospective borrower.” It also told investors that the loans “had been originated in compliance with all federal, state, and local laws and regulations, including all predatory and abusive lending laws.”
- Credit Suisse has now acknowledged that “Credit Suisse repeatedly received information indicating that many of the loans reviewed did not conform to the representations that would be made by Credit Suisse to investors about the loans to be securitized.” It has acknowledged that in many cases, it purchased and securitized loans into its RMBS that “did not comply with applicable underwriting guidelines and lacked sufficient factors” and/or “w[ere] not originated in compliance with applicable laws and regulations.” Credit Suisse employees even referred to some loans they securitized as “bad loans,” “‘complete crap’ and ‘[u]tter complete garbage.’”
- Credit Suisse acquired some of the mortgage loans it securitized by buying, from other loan originators, “Bulk” packages containing numerous loans. For example, in December 2006, Credit Suisse purchased a “Bulk” pool of approximately 10,000 loans originated by Countrywide Home Loans. Credit Suisse selected fewer than 10 percent of these loans for due diligence review. “Reports from Credit Suisse’s due diligence vendors showed that approximately 85 percent of the loans in this sample violated Countrywide’s underwriting guidelines and/or applicable law,” but “Credit Suisse securitized over half of the loans into various RMBS it then sold to investors.” Credit Suisse did not review the remaining unsampled 90 percent of the pool to determine whether those loans had similar problems. Instead, it “securitized an additional $1.5 billion worth of unsampled—and therefore unreviewed—loans from this pool into various RMBS it then sold to investors.” A Credit Suisse manager wrote to another manager who was reviewing these loans, “Thanks for working thru this mess. If it helps, it looks like we will make a killing on this trade.”
- Credit Suisse acquired other mortgage loans for securitization through its “Conduit” channel. Through this channel, Credit Suisse bought loans from other lenders one-by-one or in small packages, and also itself extended loans to borrowers as “Wholesale” loans. Approximately 25-35 percent of the loans Credit Suisse acquired from 2005 to 2007 were acquired through its mortgage “Conduit.”
- Credit Suisse employees discussed in internal emails that for Conduit loans, the loan review and approval process was “‘virtually unmonitored.’” For loans Credit Suisse purchased through its Conduit, Credit Suisse told investors, ratings agencies and others, “‘Credit Suisse senior underwriters make final loan decisions, not contracted due diligence firms.’” Credit Suisse has now acknowledged, “For Conduit loans, these representations were false.”
- Credit Suisse has acknowledged that “[a] September 2004 audit by Credit Suisse’s audit department gave the Conduit a C rating on an A-D scale (the second worst possible rating) and a level 4 materiality score on a 1-4 scale (the highest possible score),” and that a March 2006 evaluation by Credit Suisse of one of the third-party vendors it used to review Conduit loans “similarly reported that ‘There are serious concerns as to compliance[.]’”
- Between 2005 and 2007, Credit Suisse managers made comments in emails about the quality of Conduit loans and its process for reviewing those loans. For example, a top Credit Suisse manager wrote to senior traders, “‘Of course we would like higher quality loans. That’s never been the identity of our [mortgage] conduit, and we’re becoming less and less competitive in that space.’” A senior Credit Suisse trader, discussing the “fulfillment centers” Credit Suisse used to review Conduit loans, stated in an email: ‘we make these underwriting exceptions and then we have liability down the road when the loans go bad and people point out that we violated our own guidelines. . . . The fulfillment process is a joke.’”
- For example, in one instance Credit Suisse approved, through its Conduit, a purchase of over $700 million worth of loans originated by Resource Bank. Credit Suisse senior traders “referr[ed] to Resource Bank loans as ‘complete crap’ and ‘[u]tter complete garbage.’” Despite this, “Credit Suisse provided Resource Bank with financial ‘incentives’ in exchange for loan volume [and] securitized Resource Bank loans into various RMBS it then sold to investors.”
- Credit Suisse has acknowledged that it also “received reports from vendors that it might have been acquiring and securitizing loans with inflated appraisals” and that its approach for reviewing the property values associated with the mortgage loans “could lead to the acceptance of inflated appraisals.” In August 2006, a Credit Suisse manager wrote to two senior traders, “How would investors react if we say that 20 percent of the pool have values off by 15 percent? If we are comfortable buying these loans, we should be comfortable telling investors.”
- Credit Suisse used vendors to conduct quality control on a small subset of loans it acquired. Credit Suisse has now acknowledged that its quality control review vendors reported that “more than 25 percent of the loans that they reviewed for quality control were designated ‘ineligible’ because of credit, compliance, and/or property defects.”
- Credit Suisse has now acknowledged that its “Co-Head of Transaction Management expressed concern that the quality control results could serve as a written record of defects, and sought to avoid documented confirmation of these defects.” In May 2007, a top Credit Suisse manager met with others “to discuss implementing this reduction of quality control review.” Credit Suisse’s Co-Head of Transaction Management wrote that “this change was to ‘avoid the previous approach by which a lot of loans were QC’d . . . creating a record of possible rep/warrant breaches in deals . . . .’”
- In another example, in May 2007, a Credit Suisse employee identified two wholesale loans Credit Suisse itself had originated and wrote, “‘I would think that we would want to see loans like these that seem to represent confirmed problems, especially on our own originations. Why do we have an appraisal watch list and broker oversight group if we aren’t going to review the bad ones and take action appropriately? . . . I just see so many of these cross my desk, fraud, value, etc., it’s hard to just let them go by and not do something.’” Credit Suisse’s Co-Head of Transaction Management responded, “‘I think the idea is that we don’t want to spend a lot of $ to generate a lot of QC results that give us no recourse anyway but generate a lot of negative data, so no need to order QC on each of these loans.’” The employee then stated, “‘I think the lack of interest in bad loans is scary.’”
- As another example, in June 2007, a Credit Suisse employee identified 44 Wholesale loans Credit Suisse had itself originated that had gone 60 days delinquent. Credit Suisse’s Co-Head of Transaction Management wrote in response, “‘if we already know: that the loans aren’t performing . . . the only thing QC will tell us is that there were compliance errors, occupancy misreps etc. I think we already know we have systemic problems in FC/UW [fulfillment centers/underwriting] re both compliance and credit. The downside of QC’ing these 44 loans is, after we get the QC results, we will be obligated to repurchase a fair chunk of the loans from deals, assuming the loans are securitized and the QC results look like the QC we’ve done in the past. So based on a wholesale QC historical fail rate of over 35 percent (major rep defects), the avg bal of wholesale loans and the loss severities, it is reasonable to expect this QC may cost us a few million dollars.’” Credit Suisse has now acknowledged that it “did not inform investors or ratings agencies that its Wholesale loan channel had a ‘QC historical fail rate of over 35 percent (major rep defects).’”
- Credit Suisse commented about the mortgage loans that accumulated in its inventory. For example, Credit Suisse’s Co-Head of Transaction Management wrote to another Credit Suisse manager that “loans with potential defects ‘pile up in inventory . . . . So my theory is: we own the risk 1 way or another. . . . I am inclined to securitize loans that are close calls or marginally non-compliant, and take the risk that we’ll have to repurchase, if we can’t put them back, rather than adding to sludge in inventory. . . .’ One of the senior traders responded, ‘Agree.’” In another instance, a Credit Suisse senior trader commented in 2007 that “‘we have almost $2.5B of conduit garbage to still distribute.’” In another instance, a Credit Suisse trader wrote to a top manager, discussing another bank to which Credit Suisse was seeking to sell loans from its inventory, and stated, “‘[The other bank] again came back with an embarrassing number of diligence kicks this month. . . . If their results are in any way representative of our compliance with our reps and warrants, we have major problems.’ But rather than holding these loans in its own inventory, Credit Suisse securitized certain of these loans into its RMBS.”
Assistant U.S. Attorneys Kevin Traskos, Hetal J. Doshi, Shiwon Choe, Ian J. Kellogg, Lila M. Bateman, and J. Chris Larson of the District of Colorado investigated Credit Suisse’s conduct in connection with RMBS, with the support of the Federal Housing Finance Agency’s Office of the Inspector General (FHFA-OIG).
“Credit Suisse knowingly put investors at risk, and the losses caused by its irresponsible behavior deeply affected not only financial institutions such as the Federal Home Loan Banks, but also taxpayers, and contributed significantly to the financial crisis,” said Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency-Office of Inspector General’s (FHFA-OIG) Midwest Region. “This settlement illustrates the tireless efforts put forth toward bringing a resolution to this chapter of the financial crisis. FHFA-OIG will continue to work with our law enforcement partners to hold those who have engaged in misconduct accountable for their actions.”
The $2.48 billion civil monetary penalty resolves claims under FIRREA, which authorizes the federal government to impose civil penalties against financial institutions that violate various predicate offenses, including wire and mail fraud. The settlement expressly preserves the government’s ability to bring criminal charges against Credit Suisse or any of its employees. The settlement does not release any individuals from potential criminal or civil liability. As part of the settlement, Credit Suisse has agreed to fully cooperate with any ongoing investigations related to the conduct covered by the agreement.
Credit Suisse will pay out the remaining $2.8 billion in the form of relief to aid consumers harmed by its unlawful conduct. Specifically, Credit Suisse agrees to provide loan modifications, including loan forgiveness and forbearance, to distressed and underwater homeowners throughout the country. It also agrees to provide financing for affordable rental and for-sale housing throughout the country. This agreement represents the most substantial commitment in any RMBS agreement to date to provide financing for affordable housing—a crucial need following the turmoil of the financial crisis.
The settlement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s RMBS Working Group, which has recovered tens of billions of dollars on behalf of American consumers and investors for claims against large financial institutions arising from misconduct related to the financial crisis. The RMBS Working Group brings together attorneys, investigators, analysts and staff from multiple state and federal agencies, including the Department of Justice, U.S. Attorneys’ Offices, the FBI, the U.S. Securities and Exchange Commission (SEC), the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the FHFA-OIG, SIGTARP, the Federal Reserve Board’s OIG, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network and multiple state Attorneys General offices around the country. The RMBS Working Group is led by Director Joshua Wilkenfeld and four co-chairs: Principal Deputy Assistant Attorney General Mizer, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Director Andrew Ceresney of the SEC’s Division of Enforcement, and New York Attorney General Eric Schneiderman. This settlement is the latest in a series of major RMBS settlements announced by the Working Group.
To report RMBS fraud, go to: http://www.stopfraud.gov/rmbs.html.
Credit Suisse Agrees to Pay $5.28 Billion in Connection with Its Sale of Residential Mortgage-Backed SecuritiesRead the Press Release
NOTE: Settlement agreement and other document links at bottom of release
DENVER – The Justice Department announced today a $5.28 billion settlement with Credit Suisse related to Credit Suisse’s conduct in the packaging, securitization, issuance, marketing and sale of residential mortgage-backed securities (RMBS) between 2005 and 2007. The resolution announced today requires Credit Suisse to pay $2.48 billion as a civil penalty under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). It also requires the bank to provide $2.8 billion in other relief, including relief to underwater homeowners, distressed borrowers and affected communities, in the form of loan forgiveness and financing for affordable housing. Investors, including federally-insured financial institutions, suffered billions of dollars in losses from investing in RMBS issued and underwritten by Credit Suisse between 2005 and 2007.
“Today’s settlement underscores that the Department of Justice will hold accountable the institutions responsible for the financial crisis of 2008,” said Attorney General Loretta E. Lynch. “Credit Suisse made false and irresponsible representations about residential mortgage-backed securities, which resulted in the loss of billions of dollars of wealth and took a painful toll on the lives of ordinary Americans. Under the terms of this settlement, Credit Suisse will pay $2.48 billion as a fine for its conduct. And Credit Suisse has pledged $2.8 billion in relief to struggling homeowners, borrowers, and communities affected by the bank’s lending practices. These sums reflect the huge breach of public trust committed by financial institutions like Credit Suisse.”
“Credit Suisse claimed its mortgage backed securities were sound, but in the settlement announced today the bank concedes that it knew it was peddling investments containing loans that were likely to fail,” said Principal Deputy Associate Attorney General Bill Baer. “That behavior is unacceptable. Today's $5.3 billion resolution is another step towards holding financial institutions accountable for misleading investors and the American public.”
“Resolutions like the one announced today confirm that the financial institutions that engaged in conduct that jeopardized the nation’s fiscal security will be held accountable,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “This is another step in the Department’s continuing effort to redress behavior that contributed to the Great Recession.”
“Credit Suisse’s mortgage misconduct hurt people, including in Colorado,” said Acting United States Attorney for the District of Colorado Bob Troyer. “Unscrupulous lenders knew they could get away with shoddy underwriting when making mortgage loans, because they knew Credit Suisse would buy those defective mortgage loans and put them into securities. When those mortgages went into foreclosure, many people got hurt: families lost their homes, communities were blighted by empty houses, and investors who had put their trust in Credit Suisse’s supposedly safe securities suffered huge losses. Our office led this investigation into Credit Suisse to protect homeowners, communities, and investors across the country, including here in Colorado. Credit Suisse is paying a hefty penalty and acknowledging its misconduct, but that is not all. Years after the Great Recession, many families still struggle to afford a home, so we also crafted an agreement to bring needed housing relief to such families, including specifically in Colorado.”
This settlement includes a statement of facts to which Credit Suisse has agreed. That statement of facts describes how Credit Suisse made false and misleading representations to prospective investors about the characteristics of the mortgage loans it securitized. (The quotes in the following paragraphs are from that agreed-upon statement of facts, unless otherwise noted.):
-
Credit Suisse told investors in offering documents that the mortgage loans it securitized into RMBS “were originated generally in accordance with applicable underwriting guidelines,” except where “sufficient compensating factors were demonstrated by a prospective borrower.” It also told investors that the loans “had been originated in compliance with all federal, state, and local laws and regulations, including all predatory and abusive lending laws.”
-
Credit Suisse has now acknowledged that “Credit Suisse repeatedly received information indicating that many of the loans reviewed did not conform to the representations that would be made by Credit Suisse to investors about the loans to be securitized.” It has acknowledged that in many cases, it purchased and securitized loans into its RMBS that “did not comply with applicable underwriting guidelines and lacked sufficient factors” and/or “w[ere] not originated in compliance with applicable laws and regulations.” Credit Suisse employees even referred to some loans they securitized as “bad loans,” “‘complete crap’ and ‘[u]tter complete garbage.’”
-
Credit Suisse acquired some of the mortgage loans it securitized by buying, from other loan originators, “Bulk” packages containing numerous loans. For example, in December 2006, Credit Suisse purchased a “Bulk” pool of approximately 10,000 loans originated by Countrywide Home Loans. Credit Suisse selected fewer than 10 percent of these loans for due diligence review. “Reports from Credit Suisse’s due diligence vendors showed that approximately 85 percent of the loans in this sample violated Countrywide’s underwriting guidelines and/or applicable law,” but “Credit Suisse securitized over half of the loans into various RMBS it then sold to investors.” Credit Suisse did not review the remaining unsampled 90 percent of the pool to determine whether those loans had similar problems. Instead, it “securitized an additional $1.5 billion worth of unsampled—and therefore unreviewed—loans from this pool into various RMBS it then sold to investors.” A Credit Suisse manager wrote to another manager who was reviewing these loans, “Thanks for working thru this mess. If it helps, it looks like we will make a killing on this trade.”
-
Credit Suisse acquired other mortgage loans for securitization through its “Conduit” channel. Through this channel, Credit Suisse bought loans from other lenders one-by-one or in small packages, and also itself extended loans to borrowers as “Wholesale” loans. Approximately 25-35 percent of the loans Credit Suisse acquired from 2005 to 2007 were acquired through its mortgage “Conduit.”
-
Credit Suisse employees discussed in internal emails that for Conduit loans, the loan review and approval process was “‘virtually unmonitored.’” For loans Credit Suisse purchased through its Conduit, Credit Suisse told investors, ratings agencies and others, “‘Credit Suisse senior underwriters make final loan decisions, not contracted due diligence firms.’” Credit Suisse has now acknowledged, “For Conduit loans, these representations were false.”
-
Credit Suisse has acknowledged that “[a] September 2004 audit by Credit Suisse’s audit department gave the Conduit a C rating on an A-D scale (the second worst possible rating) and a level 4 materiality score on a 1-4 scale (the highest possible score),” and that a March 2006 evaluation by Credit Suisse of one of the third-party vendors it used to review Conduit loans “similarly reported that ‘There are serious concerns as to compliance[.]’”
-
Between 2005 and 2007, Credit Suisse managers made comments in emails about the quality of Conduit loans and its process for reviewing those loans. For example, a top Credit Suisse manager wrote to senior traders, “‘Of course we would like higher quality loans. That’s never been the identity of our [mortgage] conduit, and we’re becoming less and less competitive in that space.’” A senior Credit Suisse trader, discussing the “fulfillment centers” Credit Suisse used to review Conduit loans, stated in an email: ‘we make these underwriting exceptions and then we have liability down the road when the loans go bad and people point out that we violated our own guidelines. . . . The fulfillment process is a joke.’”
-
For example, in one instance Credit Suisse approved, through its Conduit, a purchase of over $700 million worth of loans originated by Resource Bank. Credit Suisse senior traders “referr[ed] to Resource Bank loans as ‘complete crap’ and ‘[u]tter complete garbage.’” Despite this, “Credit Suisse provided Resource Bank with financial ‘incentives’ in exchange for loan volume [and] securitized Resource Bank loans into various RMBS it then sold to investors.”
-
Credit Suisse has acknowledged that it also “received reports from vendors that it might have been acquiring and securitizing loans with inflated appraisals” and that its approach for reviewing the property values associated with the mortgage loans “could lead to the acceptance of inflated appraisals.” In August 2006, a Credit Suisse manager wrote to two senior traders, “How would investors react if we say that 20 percent of the pool have values off by 15 percent? If we are comfortable buying these loans, we should be comfortable telling investors.”
-
Credit Suisse used vendors to conduct quality control on a small subset of loans it acquired. Credit Suisse has now acknowledged that its quality control review vendors reported that “more than 25 percent of the loans that they reviewed for quality control were designated ‘ineligible’ because of credit, compliance, and/or property defects.”
-
Credit Suisse has now acknowledged that its “Co-Head of Transaction Management expressed concern that the quality control results could serve as a written record of defects, and sought to avoid documented confirmation of these defects.” In May 2007, a top Credit Suisse manager met with others “to discuss implementing this reduction of quality control review.” Credit Suisse’s Co-Head of Transaction Management wrote that “this change was to ‘avoid the previous approach by which a lot of loans were QC’d . . . creating a record of possible rep/warrant breaches in deals . . . .’”
-
In another example, in May 2007, a Credit Suisse employee identified two wholesale loans Credit Suisse itself had originated and wrote, “‘I would think that we would want to see loans like these that seem to represent confirmed problems, especially on our own originations. Why do we have an appraisal watch list and broker oversight group if we aren’t going to review the bad ones and take action appropriately? . . . I just see so many of these cross my desk, fraud, value, etc., it’s hard to just let them go by and not do something.’” Credit Suisse’s Co-Head of Transaction Management responded, “‘I think the idea is that we don’t want to spend a lot of $ to generate a lot of QC results that give us no recourse anyway but generate a lot of negative data, so no need to order QC on each of these loans.’” The employee then stated, “‘I think the lack of interest in bad loans is scary.’”
-
As another example, in June 2007, a Credit Suisse employee identified 44 Wholesale loans Credit Suisse had itself originated that had gone 60 days delinquent. Credit Suisse’s Co-Head of Transaction Management wrote in response, “‘if we already know: that the loans aren’t performing . . . the only thing QC will tell us is that there were compliance errors, occupancy misreps etc. I think we already know we have systemic problems in FC/UW [fulfillment centers/underwriting] re both compliance and credit. The downside of QC’ing these 44 loans is, after we get the QC results, we will be obligated to repurchase a fair chunk of the loans from deals, assuming the loans are securitized and the QC results look like the QC we’ve done in the past. So based on a wholesale QC historical fail rate of over 35 percent (major rep defects), the avg bal of wholesale loans and the loss severities, it is reasonable to expect this QC may cost us a few million dollars.’” Credit Suisse has now acknowledged that it “did not inform investors or ratings agencies that its Wholesale loan channel had a ‘QC historical fail rate of over 35 percent (major rep defects).’”
-
Credit Suisse commented about the mortgage loans that accumulated in its inventory. For example, Credit Suisse’s Co-Head of Transaction Management wrote to another Credit Suisse manager that “loans with potential defects ‘pile up in inventory . . . . So my theory is: we own the risk 1 way or another. . . . I am inclined to securitize loans that are close calls or marginally non-compliant, and take the risk that we’ll have to repurchase, if we can’t put them back, rather than adding to sludge in inventory. . . .’ One of the senior traders responded, ‘Agree.’” In another instance, a Credit Suisse senior trader commented in 2007 that “‘we have almost $2.5B of conduit garbage to still distribute.’” In another instance, a Credit Suisse trader wrote to a top manager, discussing another bank to which Credit Suisse was seeking to sell loans from its inventory, and stated, “‘[The other bank] again came back with an embarrassing number of diligence kicks this month. . . . If their results are in any way representative of our compliance with our reps and warrants, we have major problems.’ But rather than holding these loans in its own inventory, Credit Suisse securitized certain of these loans into its RMBS.”
Assistant U.S. Attorneys Kevin Traskos, Hetal J. Doshi, Shiwon Choe, Ian J. Kellogg, Lila M. Bateman, and J. Chris Larson of the District of Colorado investigated Credit Suisse’s conduct in connection with RMBS, with the support of the Federal Housing Finance Agency’s Office of the Inspector General (FHFA-OIG).
“Credit Suisse knowingly put investors at risk, and the losses caused by its irresponsible behavior deeply affected not only financial institutions such as the Federal Home Loan Banks, but also taxpayers, and contributed significantly to the financial crisis,” said Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency-Office of Inspector General’s (FHFA-OIG) Midwest Region. “This settlement illustrates the tireless efforts put forth toward bringing a resolution to this chapter of the financial crisis. FHFA-OIG will continue to work with our law enforcement partners to hold those who have engaged in misconduct accountable for their actions.”
The $2.48 billion civil monetary penalty resolves claims under FIRREA, which authorizes the federal government to impose civil penalties against financial institutions that violate various predicate offenses, including wire and mail fraud. The settlement expressly preserves the government’s ability to bring criminal charges against Credit Suisse or any of its employees. The settlement does not release any individuals from potential criminal or civil liability. As part of the settlement, Credit Suisse has agreed to fully cooperate with any ongoing investigations related to the conduct covered by the agreement.
Credit Suisse will pay out the remaining $2.8 billion in the form of relief to aid consumers harmed by its unlawful conduct. Specifically, Credit Suisse agrees to provide loan modifications, including loan forgiveness and forbearance, to distressed and underwater homeowners throughout the country. It also agrees to provide financing for affordable rental and for-sale housing throughout the country. This agreement represents the most substantial commitment in any RMBS agreement to date to provide financing for affordable housing—a crucial need following the turmoil of the financial crisis.
The settlement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s RMBS Working Group, which has recovered tens of billions of dollars on behalf of American consumers and investors for claims against large financial institutions arising from misconduct related to the financial crisis. The RMBS Working Group brings together attorneys, investigators, analysts and staff from multiple state and federal agencies, including the Department of Justice, U.S. Attorneys’ Offices, the FBI, the U.S. Securities and Exchange Commission (SEC), the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the FHFA-OIG, SIGTARP, the Federal Reserve Board’s OIG, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network and multiple state Attorneys General offices around the country. The RMBS Working Group is led by Director Joshua Wilkenfeld and four co-chairs: Principal Deputy Assistant Attorney General Mizer, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Director Andrew Ceresney of the SEC’s Division of Enforcement, and New York Attorney General Eric Schneiderman. This settlement is the latest in a series of major RMBS settlements announced by the Working Group.
To report RMBS fraud, go to: http://www.stopfraud.gov/rmbs.html.
Click HERE for Credit Suisse Settlement Agreement.
Click HERE for Credit Suisse Annex 1
Click HERE for Credit Suisse Annex 2
Click HERE for Credit Suisse Annex 3
-
Cookson Man Sentenced to 108 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that LEON RICHARD AUTRY, age 43, of Cookson, Oklahoma, was sentenced to 108 months imprisonment, and 3years supervised release for FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The Indictment alleged that on or about March 2, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, firearms, which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Cherokee County Sheriff’s Office, the Tahlequah Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Judge Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody pending transportation to the designated federal facility at which, the nonparoleable sentence will be served.
Assistant United States Attorney Kristin Harrington represented the United States.
Colombian National Sentenced to Prison for Unlawfully Injecting Silicone into Victims’ BodiesRead the Press Release
A Colombian national was sentenced today to prison for unlawfully injecting silicone into victims’ bodies for aesthetic enhancements, without a medical license or approval by the U.S. Food and Drug Administration.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George M. Karavetsos, Director, U.S. Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), made the announcement.
Juan David Acosta, 44, of Hallandale Beach, was sentenced to a year and a day in prison, to be followed by one year of supervised release. Acosta previously pled guilty to two counts of receipt in interstate commerce of a misbranded device and delivery for pay with intent to defraud or mislead, in violation of Title 21, United States Code, Sections 331(c) and 333(a)(2).
According to court record, Acosta engaged in the business of administering injections of polydimethylsiloxane, commonly referred to as silicone, into the bodies of other individuals. Acosta was paid thousands of dollars for this service. Specifically, on July 29, 2015 and again on August 9, 2015, Acosta, at his residence in the Southern District of Florida, injected silicone into the buttocks of two victims in order to affect the size, contour, and structure of that portion of the human body for aesthetic purposes. The injection of silicone into the human body in this manner, regardless of whether such injection was dispensed and administered by a licensed practitioner, requires an FDA-approved application. Acosta did not advise the victims that silicone was being injected into their bodies. Acosta is not a licensed medical practitioner and he had not received FDA approval to administer the injections.
Mr. Ferrer commended the investigative efforts of the FDA-OCI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Palm Beach County Sherriff’s Office Narcotics Unit, and Miami-Dade Police Department’s Medical Crimes Unit. The case was prosecuted by Assistant United States Attorney Randy Katz.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.A Colombian national was sentenced today to prison for unlawfully injecting silicone into victims’ bodies for aesthetic enhancements, without a medical license or approval by the U.S. Food and Drug Administration.
Colombian Man Sentenced to 18 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore has sentenced Dario Renteria-Garcia (41, Colombia, South America) to 18 years in federal prison for conspiring with others to distribute five kilograms or more of cocaine on board a vessel subject to the jurisdiction of the United States. He pleaded guilty on October 24, 2016.
According to the plea agreement, on multiple occasions between 2010 and 2013, Renteria-Garcia organized maritime cocaine shipments. Among other things, he recruited mariners to smuggle cocaine from Colombia by sea in September 2010 and January 2013. Those mariners were subsequently interdicted by the U.S. Coast Guard in the eastern Pacific Ocean with over 1,000 kilograms of cocaine. Renteria-Garcia was arrested in Colombia, and subsequently extradited to the United States.
This case was investigated by the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF) investigation comprised of agents and analysts from the Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Coast Guard Investigative Service, the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorney Christopher F. Murray. The Office of International Affairs, U.S. Department of Justice assisted with Renteria-Garcia’s extradition from Colombia.
Collinsville Man Sentenced for Conspiring to Distribute OxycodoneRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Gerald Tanner, 56, of Collinsville, Illinois, was sentenced to a year and a day in federal prison for conspiring to distribute oxycodone and methadone.
On November 18, 2015, a federal grand jury handed down an indictment alleging that three St. Clair County residents participated in a conspiracy to distribute oxycodone and methadone into the Southern District of Illinois. Evidence discussed in court established that the St. Louis Division of the Drug Enforcement Administration began investigating Tanner for illegally distributing schedule II narcotics out of his home. The DEA obtained the assistance of a confidential source and purchased opiate-based pain medications from Ryan Koch and Lisa-Marie Sue Ketterer, who were supplied by Gerald Tanner. Koch and Ketterer resold a portion of the drugs they bought and used the remainder. Koch, 34, and Ketterer, 26, both of St. Clair County, were previously prosecuted and sentenced in federal court for their role in the charged conspiracy.
United States Attorney Donald S. Boyce previously said, "There has been a national proliferation of opiate drug abuse. Sales of opioid pain relievers quadrupled between 1999 and 2010. And that proliferation has correlated strongly with an increase in heroin abuse and drug-related deaths. Opiates are causing tremendous damage in our community and the United States Attorney’s office will continue to fight the distribution of drugs that endanger public safety."
The investigation is being conducted by Diversion Investigators from the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
###
Canton Man Convicted of Conspiracy to Distribute Kilo of HeroinRead the Press Release
BOSTON – After three hours of deliberations, a federal jury convicted a Canton man yesterday of heroin distribution charges.
Obinna Obiora, 38, was convicted following a six-day trial of conspiring with others to distribute heroin in the greater Brockton area. U.S. District Court Judge William G. Young scheduled sentencing for April 28, 2017.
Over the course of three weeks between September and October 2015, Obiora and his brother, Chukwuma Obiora, provided heroin in amounts ranging from 300 to 400 grams, to Marvin Antoine. The last time that Obinna Obiora and his brother supplied heroin to Antoine, Antoine stole the heroin and refused to pay. Obinna Obiora called Antoine repeatedly to collect his drug debt. These calls were intercepted on a federally-authorized wiretap.
Chukwuma Obiora previously pleaded guilty to conspiracy to distribute heroin and is set to be sentenced on March 27, 2017 by Judge Young. Antoine is scheduled to stand trial in spring 2017.
The narcotics charge provides for no greater than life in prison, a minimum of five years and up to a lifetime of supervised release and a fine of $10 million. Obiora also faces deportation to Nigeria upon completion of his sentence. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Michael Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. The Brockton Police Department, Massachusetts State Police and Barnstable Police Department assisted with the investigation. Assistant U.S. Attorneys Eric Rosen and Leah Foley of Weinreb’s Narcotics and Money are prosecuting the case.
Business Manager Agrees to Plead Guilty after Admitting $7.2 Million Embezzlement from Alanis Morissette and Other CelebritiesRead the Press Release
LOS ANGELES – The business manager for Alanis Morissette and other entertainment and sports figures admitted in court papers filed today that he embezzled nearly $7.2 million from his clients.
Jonathan Todd Schwartz, 48, who now resides in Playa Vista, but was living in Agoura Hills at the time of the criminal conduct, was charged today with wire fraud and subscribing to a false tax return for failing to disclose the embezzled funds to the Internal Revenue Service.
In conjunction with the criminal information filed today, prosecutors also filed a plea agreement in which Schwartz agreed to plead guilty to the two felony offenses.
Schwartz was a member of GSO Business Management, LLC, a business management firm based in Sherman Oaks that provides financial guidance to clients, including managing bank accounts, providing accounts payable services, and preparing short- and long-term budgets.
In the plea agreement, Schwartz admitted that he took clients’ money for himself and falsified account records to conceal the embezzlement of client funds. Schwartz admitted that between May 2010 and January 2014, he withdrew approximately $4.8 million belonging to “Client Number 2” – Alanis Morissette – without her knowledge or authorization. Schwartz further admitted that he falsely labeled the unauthorized cash withdrawals as “sundry/personal expenses” on the accounting records GSO maintained for Morissette. When confronted about the missing funds, Schwartz stated that the money was an investment in illegal marijuana “grow” businesses, a statement that Schwartz has now admitted was false.
“Money managers have fiduciary and moral responsibilities to their clients that begin with preserving client assets and not using that money to line their own pockets,” said United States Attorney Eileen M. Decker. “This defendant violated this basic principle, and then engaged in further criminal conduct by attempting to hide his ill-gotten gains from the Internal Revenue Service. Despite those efforts, however, the defendant will now face serious consequences for victimizing his clients and American taxpayers.”
In the plea agreement, Schwartz also admits that he embezzled over $1 million from another client and concealed the embezzlement by falsely coding the unauthorized cash withdrawals as money used for the client’s home renovations. Schwartz further admitted that he embezzled $737,500 from yet another client and forged that client’s signature on at least two cash receipts.
“Mr. Schwartz was hired to protect his clients’ money by managing it professionally, but instead misappropriated millions to enrich himself,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “This case should serve as a warning that there are serious consequences for those who abuse their positions of trust to embezzle funds.”
While he has agreed to plead guilty to filing a false tax return for the year 2012, Schwartz admitted in the plea agreement that he did not report any of the approximately $7.2 million he obtained through his embezzlement scheme to the IRS. As a result of the entire scheme, Schwartz acknowledges that he owes the IRS more than $1.7 million in federal income taxes.
“Schwartz was caught with his hand in the proverbial cookie jar,” stated IRS Criminal Investigation Acting Special Agent in Charge Anthony J. Orlando. “No matter what the source of income, all income is taxable. The IRS works regularly with our law enforcement partners in cases like these to prevent other financial professionals from duping their clients.”
Schwartz is expected to make his initial appearance in United States District Court on February 1.
Once he pleads guilty to the charges that have been filed in this case, Schwartz will face a statutory maximum penalty of 23 years in federal prison. While the plea agreement contemplates a sentence of approximately four to six years, the actual sentence will be determined by the judge that hears the case.
This case was investigated by the Federal Bureau of Investigation and IRS Criminal Investigation. GSO Business Management, LLC fully cooperated during the investigation.
This case is being prosecuted by Assistant United States Attorney Ranee A. Katzenstein, Chief Assistant for Trials, Integrity and Professionalism.
Buffalo Man Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that David Varner, 57, of Buffalo, NY, who was convicted of maintaining a drug involved premises, was sentenced to time served and three years of supervised release by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Timothy C. Lynch, who handled the prosecution, stated that between April of 2011 and April 3, 2013, the defendant allowed his co-defendants to utilize his apartment, which was located on the grounds of the Perry Housing Projects, to manufacture, possess, and distribute crack cocaine. Varner’s apartment was one of several locations on the grounds of the Perry Housing Projects in Buffalo, which were maintained by members of the conspiracy in furtherance of their drug trafficking activities.
On April 3, 2013, law enforcement officers executed search warrants at 124 Fulton Street and 305 Perry Street during which they recovered over 300 grams of cocaine base and 700 grams of powered cocaine as well as a firearm. Varner was arrested in April 2013 along with 10 others. All defendants have been convicted.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Adam S. Cohen, Special Agent-in-Charge, the New York State Police, under the direction of Major Steven Nigrelli, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Brookline Man Sentenced to Prison for Million Dollar Insider Trading SchemeRead the Press Release
BOSTON - A Brookline man was sentenced today in U.S. District Court in Boston for tipping off two friends in connection with an insider trading scheme that netted more than $1 million in illegal profits.
Amit Kanodia, 49, of Brookline, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 20 months in prison, two years of supervised release including 100 hours of community service, a fine of $200,000 and forfeiture of $242,500. Kanodia was also ordered to forfeit $242,500, which represented his portion of the illegal trading profits. In October 2016, Kanodia was convicted by a federal jury, following a six-day trial, of one count of conspiracy and 10 counts of securities fraud.
The spring of 2013, Kanodia tipped off his two friends, Iftikar Ahmed and Steven Watson, about the contemplated acquisition of Cooper Tire & Rubber Company (“Cooper Tire”) by India-based Apollo Tyres (“Apollo”). Kanodia learned about the possible acquisition from his wife who was General Counsel for Apollo at the time. the months leading up to the public announcement of the acquisition, both Ahmed and Watson purchased shares and options in Cooper Tire, which trades on the New York Stock Exchange. On the day of the announcement, Cooper Tire’s share price increased 41%, and Ahmed and Watson began selling their interests in the company for a combined profit of more than $1 million. connection with their agreement, both Ahmed and Watson paid Kanodia a portion of their illegal profits.
In November 2016, Watson was sentenced to two years of probation and ordered to pay a fine of $25,000. He was also ordered to forfeit the almost $170,000 in illegal trading profits that he made on the scheme. Ahmed is a fugitive.
Acting U.S. Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The U.S. Attorney’s Office received valuable assistance from the Securities & Exchange Commission. Assistant U.S. Attorneys Sarah E. Walters and Brian Perez-Daple, of Weinreb’s Economic Crimes Unit prosecuted the case.
Bridgeport Man Charged with Distributing Heroin Involved in Woman's OverdoseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that RAMON L. KILLINGS, also known as “Blade,” 39, of Bridgeport, was arrested today on a federal criminal complaint charging him with distributing heroin. The charge stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
After his arrest, KILLINGS appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was ordered detained.
As alleged in court documents, in the early morning of December 4, 2016, Stratford Police responding to a 911 call encountered a 33-year-old female who had died from a suspected drug overdose in the bedroom of a residence. Responding officers collected wax folds containing suspected heroin, a hypodermic needle and other drug paraphernalia from the bedroom. The investigation revealed that the victim’s boyfriend purchased heroin from KILLINGS the previous evening, and then he and the victim injected the heroin he had purchased.
In December 2016 and January 2017, law enforcement made controlled purchases of heroin from KILLINGS.
It is alleged that, when he was arrested this morning, KILLINGS possessed quantities of heroin and crack cocaine.
The complaint charges KILLINGS with possession with intent to distribute, and distribution of, heroin, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Stratford Police Department. The task force includes personnel from the Norwalk, Stamford, Stratford, Milford and Bridgeport Police Departments, and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Bookkeeper Pleads Guilty to $1.5 Million Fraud SchemeRead the Press Release
RICHMOND, Va. – Amy Lynn Galloway, 45, of Cumberland, pleaded guilty today to charges related to running a bookkeeping fraud scheme that caused a loss of approximately $1.5 million over eight years from a Richmond residential development and construction company.
According to the filed court documents, Galloway, who worked as the bookkeeper of the construction business, stole approximately $1.54 million from 2009 until 2016. Galloway’s scheme had two parts. First, Galloway wrote unauthorized checks on several business checking accounts, then would deposit the checks into her own bank accounts and joint bank accounts she shared with her children. She would then use the funds for personal purposes. Galloway hid the check misappropriations by not recording the fraudulent checks in the accounting records she regularly prepared, maintained and submitted to the outside accountants for tax purposes.
The second part of Galloway’s scheme was fraudulently misusing business credit card accounts for personal purposes. From 2007 to 2016, Galloway deposited approximately 578 fraudulent business checks worth approximately $1.1 million into personal bank accounts, and misused the credit card numerous times in the approximate total amount of $440,000.
Galloway faces a maximum penalty of 20 years in prison when sentenced on April 20. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after the plea was accepted by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney David T. Maguire is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-CR-157.
Ashburn Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
ALEXANDRIA, Va. – Roger Wheaten Webb, 53, of Ashburn, pleaded guilty today to receipt of child pornography.
According to the statement of facts filed with the plea agreement, between February and March 2015, the FBI identified an Internet Protocol (IP) address in Fairfax accessing child pornography. Based on that investigation, law enforcement officers executed a federal search warrant on a business in Fairfax where Webb worked. During the search, several electronic devices were located and reviewed, including a Dell computer and a flash drive that contained over 5,000 image files and 300 video files of child pornography. The analysis of the computer confirmed that it had been used to download child pornography from the Internet using peer-to-peer software. When interviewed, Webb admitted that he had used the business’s computer to access, receive, and download child pornography and that he had transferred and stored child pornography to an external drive or flash drive he possessed.
Webb faces a mandatory minimum of five years in prison and a maximum penalty of 20 years in prison when sentenced on April 21. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Whitney Russell of the Eastern District of Virginia, and Trial Attorney Leslie Williams Fisher of the Criminal Division’s Child Exploitation and Obscenity Section, are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-298.
Arizona Man Pleads Guilty to Federal Cocaine Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Jesus Quiroz, 36, of Tucson, Ariz., pled guilty today in federal court in Las Cruces, N.M., to cocaine trafficking charges arising from the seizure of 72.1 kilograms (158.95 pounds) of cocaine at the New Mexico Port of Entry near Lordsburg, N.M.
Quiroz was arrested on Sept. 9, 2016, on a criminal complaint charging him with possession of more than 72 kilograms of cocaine with intent to distribute in Hidalgo County, N.M. According to the complaint, Quiroz was arrested after law enforcement officers at the New Mexico Port of Entry on Interstate 10 in Lordsburg seized 61 individually wrapped packages containing more than 72 kilograms of cocaine from a tractor and trailer in which Quiroz was traveling. At the time of his arrest, Quiroz was on probation for a state cocaine trafficking conviction in Arizona.
Quiroz subsequently was indicted on Dec. 14, 2016, and charged in a two-count indictment with possession of cocaine with intent to distribute, and possession of visual depiction of a minor engaged in sexually explicit conduct. According to the indictment, Quiroz committed the crimes on Sept. 9, 2016, in Hidalgo County.
During today’s proceedings, Quiroz pled guilty to Count 1 of the indictment charging him with possession of cocaine with intent to distribute. In entering the guilty plea, Quiroz admitted that on Sept. 9, 2016, he drove a commercial vehicle containing 72.1 kilograms of cocaine into the Lordsburg, New Mexico Port of Entry. Quiroz further admitted that he intended to deliver the cocaine to another person.
At sentencing, Quiroz faces a statutory mandatory minimum penalty of ten years and a maximum of life in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by Homeland Security Investigations and the New Mexico State Police. Assistant U.S. Attorney Brock Taylor of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Albuquerque Resident Pleads Guilty to Meth Trafficking Charge Under Plea Agreement Requiring 84-Month SentenceRead the Press Release
ALBUQUERQUE – Rumaldo Olivas, 27, of Albuquerque, N.M., pled guilty today in federal court to a methamphetamine trafficking charge. Under the terms of his plea agreement, Olivas will be sentenced to 84 months in prison followed by a term of supervised release to be determined by the court.
Olivas was arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and one federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Olivas was arrested in Aug. 2016, on an indictment charging him distribution of methamphetamine on July 27, 2016, in Bernalillo County, N.M. The indictment included forfeiture provisions requiring Olivas to forfeit $1,000. During today’s proceedings, Olivas entered a guilty plea to the indictment. He remains in custody pending a sentencing hearing which has yet to be scheduled.
To date, 21 of the 104 defendants have entered guilty pleas and one has been sentenced. The remaining defendants have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case was investigated by the Albuquerque offices of ATF. Assistant U.S. Attorneys Paul Mysliwiec and Letitia C. Simms are prosecuting the case.
Alabama U.S. Attorney's Offices Reach A Settlement Agreement to Ensure ADA Compliance at Dollar General Stores Throughout the StateRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced today that the U.S. Attorney’s Office recently entered into a statewide settlement agreement with Dolgencorp, LLC, to ensure that all Dollar General stores in the state of Alabama are in compliance with the requirements of the Americans with Disabilities Act (ADA). His office partnered with the U.S. Attorney’s Offices for the Northern and Middle Districts of Alabama in reaching that agreement.
Dolgencorp, doing business as Dollar General, operates discount department stores nationwide. There are 693 stores located in the state of Alabama. After receiving complaints about disability access to the stores, an investigation revealed a recurring problem with many stores having merchandise, shopping carts, boxes, and other items stored in the common areas of the stores’ exterior and interior spaces. These kinds of obstructions reduced or eliminated accessibility for disabled customers.
To correct these problems, Dolgencorp has agreed to implement a policy that will prohibit its employees from placing items in areas such as handicap parking spaces and interior access aisles. Dolgencorp also has agreed to provide annual training to all of its employees in the state to ensure that they are knowledgeable about the requirements of the ADA, and the corporation will have an ADA Coordinator to assist with the handling of complaints and employee training.
United States Attorney Brown said, "I applaud Dollar General for its commitment to bringing its stores into compliance with the ADA. It is of great importance that all patrons in Alabama, especially those with disabilities, are able to enjoy equal access during their shopping experiences. Dollar General adopted our recommendations and moved swiftly to remedy the issues."
Title III of the ADA prohibits discrimination in “the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of a place of public accommodation by any person who owns, leases (or leases to), or operates a place of public accommodation.” 42 U.S.C. § 12182. The Department of Justice recognizes that importance of those with disabilities being integrated in society and having “full and equal enjoyment” of the services provided.
Southern District of Alabama Assistant United States Attorney Suntrease Williams-Maynard is the U.S. Attorney’s Office point of contact on this case.
More information regarding maintaining accessible features in retail establishments may be found at https://www.ada.gov/business/retail_access.htm. People interested in learning more about the requirements of the ADA may visit the website www.ada.gov or call the toll free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY). They may also learn more about the U.S. Attorney’s Office’s own civil rights enforcement program, which includes enforcement of the ADA, at https://www.justice.gov/usao-sdal/civil-rights-enforcement-unit.
Akron man likely to be sentenced to 20 years in prison after admitting selling fentanyl obtained from China that resulted in fatal overdoseRead the Press Release
An Akron man will likely be sentenced to 20 years in prison after he admitted selling fentanyl obtained from China that resulted in a fatal overdose, law enforcement officials said.
Leroy Shuarod Steele, 36, pled guilty to conspiracy to possess with intent to distribute fentanyl and distribution of fentanyl.
The fentanyl Steele distributed resulted in the fatal overdose of a person identified only as T.R. on March 21, 2015 in Akron, according to court documents.
Steele, Sabrina M. Robinson and Ryan Sumlin conspired together between March and April of this year to possess and distribute fentanyl. They obtained fentanyl from suppliers in China and then distributed the drug to people in Akron, Fairlawn and elsewhere, according to court documents.
Sumlin faces an additional charge of distribution of fentanyl that caused the overdose death of someone in Akron on March 28, 2015, according to court documents.
Robinson has pled guilty in the case. Sumlin’s case is pending.
Steele and Robinson are scheduled to be sentenced on April 19.
“This is another human life lost to opioids brought to Ohio from China,” U.S. Attorney Carole S. Rendon said. “We will continue to push for long prison sentences for drug dealers who kill our neighbors and relatives, while also working to reduce the number of opioids on the street, making treatment more readily available and educating our community about the dangers posed by these drugs.”
This case is being prosecuted by Assistant U.S. Attorney Linda H. Barr following an investigation by the Drug Enforcement Agency, the Akron Police Department and the Fairlawn Police Department.
Akron man charged for failing to disclose service in unit involved in war crimes in the former YugoslaviaRead the Press Release
An Akron man was charged in federal court related to failing to disclose his involvement in a military unit engaged in war crimes in the former Yugoslavia, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Ilija Josipovic, 59, was charged in a two-count criminal information with possession of immigration documents procured by fraud.
Josipovic, on Feb. 1, 2012, possessed a Permanent Resident Card in his name, which he knew to be procured by means of a false claim and statement while obtaining an Ohio driver’s license at the Ohio Bureau of Motor Vehicles office 7744, located at 1030 East Tallmadge Avenue in Akron, according to the information.
Josipovic, on Sept. 10, 2014, he possessed a Permanent Resident Card in his name, which he knew to be procured by means of a false claim and statement while at his residence in Akron, according to the information.
In 2002, Josipovic omitted or failed to disclose his military service in the 6th Battalion, Zvornik Infantry Brigade, Army of the Republic of Srpska, which began around May 25, 1992 and continued until approximately 1996, according to the information.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Dept. of Homeland Security, Homeland Security Investigations. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
17 January 2017
Woman Sentenced for Virginia Employment Commission FraudRead the Press Release
NORFOLK, Va. – Paula Lane (a.k.a. Paula Hipps), 47, formerly of Corapeake, North Carolina, now residing in Danville, was sentenced today to 57 months in prison for her role in an insurance fraud scheme that caused a loss over $150,000 to the Virginia Employment Commission (VEC) and similar agencies in Indiana and Pennsylvania.
Lane pleaded guilty to mail fraud and aggravated identity theft on Sept. 15, 2016. According to court documents, Lane devised and executed a complex unemployment insurance fraud scheme that resulted in payments of more than $150,000 in one year. Lane, at the time operating out of her home in Corapeake, North Carolina, created fake companies and reported to the VEC that the companies had employees who earned wages. The employees were real people whose identities Lane stole for the purpose of this scheme. Between August 2013 and August 2014, Lane filed unemployment claims under the names of 28 different identities stating that they had been laid off. Lane was then able to receive unemployment insurance money that was deposited directly into her bank account or onto debit cards that she controlled. Lane also filed false claims in Indiana and Pennsylvania.
In addition to the prison sentence, Lane was also ordered to pay $152,449 in restitution to the Virginia Employment Commission.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Robin Blake, Special Agent-in-Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; and Joseph Cronin, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney Randy Stoker prosecuted the case.
The case was investigated by the Department of Labor Office of the Inspector General along with Homeland Security Investigations, the United States Postal Inspection Service, the Virginia Employment Commission, and the North Carolina State Bureau of Investigation.
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. 2:16-cr-089.
Wife of Pulse Nightclub Shooter Charged with Aiding and Abetting Her Husband and Obstruction of JusticeRead the Press Release
Noor Salman, 30, formerly of Fort Pierce, Florida, was charged by indictment with aiding and abetting Omar Mateen’s attempted provision and provision of material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and obstruction of justice. If convicted on all counts, Salman faces a maximum penalty of life imprisonment.
Acting Assistant Attorney General for National Security Mary B. McCord and U.S. Attorney A. Lee Bentley, III for the Middle District of Florida made the announcement.
Salman was arrested in northern California on Monday, January 16, and made her initial appearance in federal court in Oakland, California earlier today. Salman was temporarily detained pending a status hearing on Wednesday, January 18.
According to the indictment, from no later than end of April 2016 through and including June 12, 2016, Salman aided and abetted Mateen’s attempted provision and provision of material support, namely, personnel and services, to ISIL, and the death of multiple victims resulted. Further, on June 12, 2016, Salman obstructed justice by engaging in misleading conduct towards officers of the Fort Pierce Police Department and special agents of the FBI in order to prevent them from communicating to agents, the U.S. Department of Justice and judges of the United States of America, information relating to the attack at the Pulse Night Club in Orlando, Florida.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the FBI; the Orlando Police Department; the Orange County Sheriff’s Office in Florida; the Fort Pierce Police Department; the Saint Lucie County Sheriff’s Office in Florida; and the Florida Department of Law Enforcement. Assistance was provided by the IRS - Criminal Investigation division; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Martin County Sheriff’s Office in Florida; and the Sebastian Police Department in Florida. This case will be prosecuted by Assistant U.S. Attorneys Sara C. Sweeney, James D. Mandolfo and Roger B. Handberg for the Middle District of Florida and Trial Attorney Kevin C. Nunnally for the National Security Division’s Counterterrorism Section
Wife of Pulse Nightclub Shooter Charged with Aiding and Abetting Her Husband and Obstruction of JusticeRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III and Acting Assistant Attorney General for National Security Mary B. McCord announce the return of an indictment charging Noor Salman (30, formerly of Fort Pierce, Florida) with aiding and abetting Omar Mateen’s attempted provision and provision of material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and obstruction of justice. If convicted on all counts, she faces a maximum penalty of life imprisonment. Salman was arrested in northern California on Monday, January 16, 2017, and made her initial appearance in federal court in Oakland earlier today. She has been detained pending a status hearing on Wednesday, January 18, 2017.
According to the indictment, from no later than end of April 2016 through and including June 12, 2016, Salman aided and abetted Mateen’s attempted provision and provision of material support, namely, personnel and services, to ISIL, and the death of multiple victims resulted. Further, on June 12, 2016, Salman obstructed justice by engaging in misleading conduct towards officers of the Fort Pierce Police Department and special agents of the Federal Bureau of Investigation in order to prevent them from communicating to agents, the U.S. Department of Justice, and judges of the United States of America information relating to the attack at the Pulse Night Club in Orlando.
An indictment is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Orlando Police Department, the Orange County Sheriff’s Office, the Fort Pierce Police Department, the Saint Lucie County Sheriff’s Office, and the Florida Department of Law Enforcement, with assistance from the Internal Revenue Service - Criminal Investigation, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Martin County Sheriff’s Office and the Sebastian Police Department. It will be prosecuted by Assistant United States Attorneys Sara C. Sweeney, James D. Mandolfo, and Roger B. Handberg, and Trial Attorney Kevin C. Nunnally of the National Security Division’s Counterterrorism Section.
U.S. Navy Sailor Pleads Guilty to Production of Child PornographyRead the Press Release
NORFOLK, Va. – Jordan Lee Adams, 26, of Wayne County, North Carolina, pleaded guilty today to charges of production of child pornography.
According to the statement of facts filed with the plea agreement, Adams produced sexually explicit videos and images of four minor females on various occasions from 2009 through 2013. One of the graphic videos depicts Adams engaging in sexual acts with a 14-year-old girl when he was a 21-year old. In addition, Adams also uploaded a sexually explicit image he produced of a 15-year-old girl to a social media group. The image was later sent to the victim by a stranger on the internet who threatened to ‘sextort’ her, meaning he would distribute the image further unless she sent him additional images of herself. Adams also possessed sexually explicit images of 10 minor females previously identified as victims by the National Center for Missing and Exploited Children.
Adams faces a maximum penalty of 30 years in prison when sentenced on April 13. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Tim Quick, Special Agent in Charge of Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after the plea was accepted by U.S. District Judge Arenda Wright Allen. Special Assistant U.S. Attorney Alyssa Nichol is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-163.
Two Men Plead Guilty to Charges in Killing of Man Following Fistfight in Southeast WashingtonRead the Press Release
WASHINGTON - Anthony Wade, 31 of Washington, D.C., and his uncle, Antwain Bailey, 47 of Temple Hills, Md., have pled guilty to charges stemming from their roles in the killing of a man in Southeast Washington, U.S. Attorney Channing D. Phillips announced today.
Both men entered their guilty pleas on Jan. 12, 2017, in the Superior Court of the District of Columbia. Wade pled guilty to second-degree murder while armed, and Bailey pled guilty to voluntary manslaughter while armed. The guilty pleas, which are contingent upon the Court’s approval, call for Wade to be sentenced to between 15 and 24 years in prison and for Bailey to be sentenced to a 13-year-prison term. The Honorable Milton C. Lee set a hearing for May 19, 2017 to determine whether the pleas and sentences will be accepted.
According to the government’s evidence, in the late afternoon of March 9, 2016, Bailey had a verbal altercation with the victim, Aubrey Dansbury, in an apartment in the 800 block of Chesapeake Street SE. During the argument, Wade called his uncle, Bailey, and provided Bailey with his location. Wade then walked outside and Mr. Dansbury followed. Once outside, the two men began to fist fight. People from the neighborhood tried unsuccessfully to break up the fight.
As the fight continued, Bailey drove onto the block in a black Lexus sedan. Bailey parked the car and got out, and Wade ran over to him. When Mr. Dansbury and Wade began to fight again, Bailey intervened and walked Wade to the front of the car. Bailey then handed Wade a gun. Wade turned and began shooting at Mr. Dansbury, who was standing at the back of the Lexus. Wade fired the gun at least two times, but neither shot hit Mr. Dansbury. The gun jammed. Wade handed the gun to Bailey, who unjammed the weapon and handed it back. Wade then repeatedly fired the gun as he followed Mr. Dansbury around the car. Mr. Dansbury got inside of the back seat of the sedan to seek cover. Wade then shot Mr. Dansbury multiple times. Mr. Dansbury fell out of the car onto the sidewalk. Bailey got into the driver’s seat and Wade got into the back seat and the car pulled off. Mr. Dansbury, 27, died from the gunshot wounds on March 17, 2016.
In announcing the pleas, 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 Diana Lim and Paralegal Specialist Lashone Samuels. Finally, he commended the work of Assistant U.S. Attorneys Adrienne Dedjinou, Matthew Massey and Allessandra Stewart, who investigated and prosecuted the case.
Two Members of Cowboys Gang Plead Guilty to Racketeering Conspiracy, Attempted Murder and Related OffensesRead the Press Release
Two members of the Cowboys street gang have pleaded guilty to racketeering conspiracy and attempted murder in aid of racketeering for their roles in gang-related shootings in South Carolina.
Acting Assistant Attorney General David Bitkower of the Justice Department’s Criminal Division; Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina, Field Division; Special Agent in Charge Nick S. Annan of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Atlanta Field Office; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland, of the Colleton County, South Carolina, Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina, Police Department; Sheriff Al Cannon of the Charleston County, South Carolina, Sheriff’s Office; Sheriff L. C. Knight of the Dorchester County, South Carolina, Sheriff’s Office; Captain Jon Rogers of the Summerville, South Carolina, Police Department; Director Jerry Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division made the announcement.
Christopher Sean Brown, aka Rougish, 23, of Walterboro, pleaded guilty today to attempted murder in aid of racketeering activity. Matthew Rashaun Jones, aka Boogie Mac, 23, also of Walterboro, pleaded guilty today to racketeering conspiracy. Both defendants admitted their involvement and membership in the Cowboys street gang.
According to admissions made in connection with the plea agreements, the Cowboys is a violent criminal street gang operating in South Carolina since at least 2009, with members who resided in an area known as the “Eastside” of Walterboro. Members of the Cowboys show their allegiance by wearing red, white and blue clothing and carrying rags in these colors, including depictions of the American flag. Further, members of the Cowboys greet each other and show their membership in the gang using a set of hand-signs intended to evoke the shape of a “b.” This hand sign also shows an affiliation with the “Bloods” gang. Members of the Cowboys also show allegiance to the gang by having the words “Cowboy(s)” or “GMC” tattooed to some part of their body.
As part of their plea agreements, Brown and Jones admitted that during the time of the conspiracy, they and other members of the Cowboys were involved in robberies, attempted murder and narcotics trafficking. On or about May 30, 2013, Brown and Jones participated in a drive-by shooting. Specifically, Brown and Jones, both passengers in the vehicle, admitted that they fired multiple shots at a residence where suspected members of the Dooley Hill gang – a rival of the Cowboys – were believed to reside.
As part of his plea agreement, Jones admitted that on or about May 12, 2011, he shot at a person whom he believed was an associate of a rival gang, which had an ongoing dispute with the Cowboys. This shooting led to a retaliatory shooting on May 14, 2011, during which an innocent bystander was shot and injured.
Brown, Jones and seven other members and associates of the Cowboys gang were charged in a Feb. 9, 2016, indictment with racketeering conspiracy and related offenses including attempted murder in aid of racketeering and firearms offenses. An indictment is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
ATF, HSI, the Colleton County Sheriff’s Office, the Walterboro Police Department, Charleston County Sheriff’s Office, the Dorchester County Sheriff’s Office, the Summerville Police Department and the First Circuit Solicitor’s Office are investigating the cases. The Criminal Division’s Organized Crime and Gang Section is prosecuting indictments against the Cowboys gang in partnership with the 14th Circuit Solicitor’s Office.
Trio Sentenced to 17 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that three defendants were sentenced to federal prison last week for drug trafficking. Santiago Salinas (aka Chuco), age 47, of Commerce, Oklahoma, was sentenced to 151 months followed by three years of supervised release and ordered to pay a $3,000 fine on one count of Delivery of More than 50 Grams of a Mixture of Methamphetamine. Co-Defendant, Misty Macell Wilson (aka Molly Rockstar), age 46 of Bentonville, was sentenced to 34 months followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Co-Defendant, Melissa Marie Myers, age 31 of Bentonville, was sentenced to 27 months followed by one years of supervised release on one count of Knowingly Using a Communication Facility in a Drug Trafficking Crime. The Honorable Timothy L. Brooks presided over the sentencing hearings in the United States District Court in Fayetteville.
According to court records, on May 3, 2016, during a controlled purchase arranged by law enforcement, Santiago Salinas and his co-defendant Misty Wilson, sold seven (7) ounces of methamphetamine to a confidential source. When the transaction was complete, Salinas and Wilson engaged in talk with the confidential source about future meth deals between them. Later testing at the Arkansas State Crime Lab confirmed the meth to be a gross weight of 220 grams.
Misty Wilson was present on two other occasions when meth was sold to the confidential source. After waiving her Miranda rights, she admitted obtaining meth in the past from Salinas, to wiring money to him in Oklahoma to pay for meth, and to selling meth she had obtained from him. The government forfeited more than $20,000 in cash stemming from this case.
In April, 2016, Melissa Myers was observed leaving the residence of co-defendant Misty Wilson and was stopped by Bentonville Police Department for committing a traffic offense. During the traffic stop, she was arrested for being in possession of methamphetamine and was found to have a larger amount of methamphetamine concealed on her person when she arrived at the jail. A search of her telephone revealed that she had been in contact with co-defendant Salinas on 112 occasions between March 23 and April 6, 2016 and that some of the texts on her phone were to arrange for drug transactions with him. After waiving her Miranda rights, she admitted that she was a seller of meth supplied by Salinas and that she used her cell phone to communicate with him and arrange for drug transactions with him.
Salinas, Wilson, and Myers were indicted by a federal grand jury in June, 2016. Salinas pleaded guilty in August, 2016 and Wilson and Myers pleaded guilty in September, 2016.
“Methamphetamine is a highly addictive poison that destroys countless lives in communities throughout the United States. Through unprecedented partnerships with federal and local enforcement, we are making major progress in preventing methamphetamine trafficking from taking hold in our communities. This investigation is a compelling example of that success”, stated DEA Assistant Special Agent in Charge Matthew Barden.
This case was investigated by the Homeland Security Investigations, Drug Enforcement Administration, Rogers Police Department, Bentonville Police Department, Benton County Sheriff’s Office, and Madison County Sheriff’s Office. Assistant United States Attorney Brandon Carter prosecuted the case for the United States.
* * * E N D * * *
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Three San Antonio Men Sentenced to Prison for Sex Trafficking of MinorsRead the Press Release
In San Antonio today, a federal judge sentenced three men to lengthy prison terms for sex trafficking five identified minors announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
United States District Judge Fred Biery sentenced 20–year-old Melvin Lee Sullivan Deams; his father, 43-year-old Melvin Lee Sullivan (aka “Wink”); and, 22–year-old Michael Antoine McHenry to 60 years imprisonment, 25 years imprisonment and 20 years imprisonment, respectively. In addition to the prison terms, Judge Biery ordered each defendant to pay $5,000 restitution to each identified victim.
According to court documents, during a two-week period ending on October 8, 2015, the defendants were responsible for the prostitution of five juvenile females using Backpage.com. The defendants enticed their victims to engage in sexual activities for money in San Antonio, then confiscated all of the proceeds. In August 2016, McHenry and Sullivan each pleaded guilty to one count of sex trafficking of minors. The following month, Deams pleaded guilty to the same charge.
On October 6, 2016, a fourth defendant in this case, 20-year-old Rashawn Ledamion Gamble of San Antonio, was sentenced to five years probation after pleading guilty to misprision of felony.
This investigation was conducted by the FBI and the San Antonio Police Department with assistance from the Bexar County Juvenile Probation Office. Assistant United States Attorneys Bettina Richardson and Diana Cruz-Zapata prosecuted these defendants on behalf of the Government.
Tampa-Area Medical Device Salesman Guilty of Selling Expired Lap-Band DevicesRead the Press Release
A Tampa-area medical device salesman pleaded guilty on Friday, January 13, 2017, to conspiracy to commit wire fraud in connection with the sale of expired LAP-BAND Adjustable Gastric Banding Systems to physicians in South Florida.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Justin D. Green, Special Agent in Charge, United States Food and Drug Administration (FDA), Office of Criminal Investigations (OCI), Miami Field Office, made the announcement.
Gregory Charles Grimm, 45, of Saint Petersburg, pleaded guilty to a single count of conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349. Grimm faces a statutory maximum sentence of twenty years in prison. Grimm is scheduled to be sentenced on March 24, 2017 at 1:15 p.m., by United States District Judge William P. Dimitrouleas in Fort Lauderdale.
According to court records, between June 2014 and October 15, 2015, defendant Grimm and a co-conspirator, Peter Lawrence Kafka, both Senior Account Executives for Apollo Endosurgery, Inc., engaged in a scheme to unlawfully enrich themselves by misbranding LAP-BAND Adjustable Gastric Banding Systems, changing the serial number and expiration date in order to sell expired medical devices for profit. Kafka would purchase expired or nearly expired LAP-BANDS through the internet. Kafka would then supply Grimm with these expired or nearly expired LAP-BANDs. Grimm created false labels with fraudulent serial numbers and expiration dates to hide the true expiration date of the LAP-BANDs. Grimm would then provide Kafka the misbranded LAP-BANDs, the labeling of which bore false expiration dates. Kafka then sold the misbranded LAP-BANDs to local physicians. At least seven of these misbranded LAP-BANDS were subsequently implanted into patients.
The investigation began as a result of a referral by Apollo Endosurgery to the FDA.
Mr. Ferrer commended the investigative efforts of the FDA-OCI in this matter. This case is being prosecuted by Assistant United States Attorney Joshua S. Rothstein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Seven Individuals Sentenced to Prison for Online Fraud ScamsRead the Press Release
Seven defendants were sentenced for their roles in online fraud schemes involving counterfeit checks, “mystery shopper” websites and work-from-home scams, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Gregory K. Davis of the Southern District of Mississippi and Special Agent in Charge Raymond R. Parmer Jr. of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Gulfport, Mississippi, Office.
Funso Hassan, 27, of Ibadan, Nigeria, and Anthony Shane Jeffers, 44, of Maryville, Tennessee, each pleaded guilty on April 12, 2016, to one count of conspiracy to commit identity theft and theft of government property and one count of use of mail and an interstate facility to distribute proceeds of a racketeering activity. Hassan and Jeffers were each sentenced to 120 months in prison. Ann Louise Franzen, 70, of Kiln, Mississippi; Gary Melvin Barnard, 64, of Palestine, Texas; Michele Gayle Fee, 55, of Stockton, California; Tanya Lynn Thomas, 52, of Turlock, California; and Shawn Ann White, 44, of Manteca, California, previously pleaded guilty to conspiracy to commit identity theft and theft of government property. Franzen, Barnard, Fee, Thomas, and White were each sentenced to 60 months in prison. The defendants were sentenced yesterday by Chief U.S. District Judge Louis Guirola Jr. of the Southern District of Mississippi and restitution for all defendants will be determined at a later date.
According to admissions made in connection with their plea agreements, all seven defendants were members of a large-scale international financial fraud conspiracy that included romance scams through on-line dating sites, check fraud, secret shopper schemes, and personal assistant work-from-home schemes. Some of the defendants started as romance scam victims before later becoming knowing participants in the counterfeit check fraud. Victims were sent checks with mystery shopper and personal assistant instructions. The checks, which were counterfeit, would bounce after the victims transmited proceeds to various locations in the United States which were then laundered for transmission to Nigeria. Victims were then liable to their banks for the amount of checks and often hundreds of dollars in bank fees.
HSI investigated the case. Assistant U.S. Attorney Annette Williams of the Southern District of Mississippi, Trial Attorney Conor Mulroe of the Criminal Division’s Organized Crime and Gang Section, and Senior Counsel Peter Roman of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.
Seven Individuals Plead Guilty to Involvement in Large-Scale International Online Fraud ConspiracyRead the Press Release
Seven individuals pleaded guilty to participating in a large-scale international online fraud conspiracy, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Gregory K. Davis of the Southern District of Mississippi and Special Agent in Charge Raymond R. Parmer Jr. of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in New Orleans.
Rhulane Fionah Hlungwane, 26, of South Africa; Gabriel Oludare Adeniran, 30, of Nigeria; Olusegun Seyi Shonekan, 34, of Nigeria; Taofeeq Olamilekan Oyelade, 32, of Nigeria; Olufemi Obaro Omoraka, 27, of Nigeria; Anuoluwapo Segun Adegbemigun, 40, of Nigeria; and Adekunle Adefila, 41, of Nigeria, each pleaded guilty this week to one count of conspiracy to commit mail and wire fraud. In addition, Hlungwane, Adeniran, Shonekan, Oyelade, Omoraka and Adegbemigun each pleaded guilty to one count of conspiracy to commit identity theft, access device fraud and theft of government funds.
According to the plea agreements, the defendants and their co-conspirators carried out numerous internet-based fraud schemes dating back at least to 2001. These schemes involved using unsuspecting victims to cash counterfeit checks and money orders, using stolen credit card numbers to purchase electronics and other merchandise and using stolen personal identification information to take over victims’ bank accounts. As a whole, the conspiracy involved tens of millions of dollars in intended losses.
The defendants admitted that, to accomplish their fraud schemes, they recruited the assistance of U.S. citizens via “romance scams,” in which the perpetrator would typically use a false identity on a dating website to establish a romantic relationship with an unsuspecting victim. Once the perpetrator gained the victim’s trust and affection, the perpetrator would convince the victim to either send money or to help carry out fraud schemes. For example, the defendants admitted that they used romance victims to launder money via Western Union and MoneyGram, to re-package and re-ship fraudulently obtained merchandise and to cash counterfeit checks.
This case is being prosecuted as part of the Justice Department’s mission to combat transnational organized crime. Any person who believes they may be a victim of online fraud should report suspected criminal activity using the HSI Tip Form: www.ice.gov/webform/hsi-tip-form.
HSI investigated the case. Trial Attorney Conor Mulroe of the Criminal Division’s Organized Crime and Gang Section, Senior Counsel Peter Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Annette Williams of the Southern District of Mississippi are prosecuting the case.
San Francisco Resident Sentenced to Fifteen Years in Prison for Production and Possession of Child PornographyRead the Press Release
SAN FRANCISCO – Duane Charles Ackerman was sentenced today to fifteen years in prison for production and possession of child pornography, announced United States Attorney Brian J. Stretch and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin.
Ackerman, 51, of San Francisco, pleaded guilty on September 27, 2016, to one count of production of pornography depicting minors in sexually explicit conduct, and one count of possessing child pornography. According to his guilty plea, between June and August of 2015, Ackerman produced six video files of prepubescent girls who were each less than 12 years old. The children were temporarily entrusted to his care at his home when he surreptitiously recorded their genitals using a hidden camera. In addition, Ackerman admitted that in October of 2015, he possessed a computer hard drive that contained no fewer than 15,000 digital images and 800 video files depicting child pornography. A federal grand jury issued a superseding indictment on February 25, 2016, charging Ackerman with six counts of production of child pornography, in violation of 18 U.S.C. § 2251(a); one count of distribution of child pornography, in violation of 18 U.S.C. § 2252(a)(2); and one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B). According to his plea agreement, Ackerman pleaded guilty to one count of production and one count of possessing child pornography.
The sentence was handed down by the Honorable Vince Chhabria, U.S. District Judge. In addition to the prison term, Judge Chhabria also ordered Ackerman to serve a ten-year period of supervised release. Additional proceedings have been scheduled to decide the issue of restitution.
Assistant U.S. Attorneys Brian R. Faerstein and Laurie Kloster Gray prosecuted the case with the assistance of Patricia Mahoney. The prosecution is the result of an investigation by HSI.
Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, via its toll-free 24-hour hotline, 1-800-843-5678.
Rolls-Royce plc Agrees to Pay $170 Million Criminal Penalty to Resolve Foreign Corrupt Practices Act CaseRead the Press Release
Company Agrees to $800 Million Global Resolution with authorities in the United States, the United Kingdom and Brazil
Rolls-Royce plc, the United Kingdom-based manufacturer and distributor of power systems for the aerospace, defense, marine and energy sectors, has agreed to pay the U.S. nearly $170 million as part of an $800 million global resolution to investigations by the department, U.K. and Brazilian authorities into a long-running scheme to bribe government officials in exchange for government contracts.
U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio, Chief Andrew Weissmann of the Fraud Section of the Justice Department’s Criminal Division, Assistant Director Stephen Richardson of the FBI’s Criminal Investigative Division, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office and Inspector in Charge Regina Faulkerson of the U.S. Postal Inspection Service’s Criminal Investigations Group made the announcement.
“Bribery of government officials undermines the integrity of a free and fair market,” said U.S. Attorney Glassman. “This multinational resolution imposes significant criminal penalties on Rolls-Royce for its multinational corruption.”
“For more than a decade, Rolls-Royce repeatedly resorted to bribes to secure contracts and get a competitive edge in countries throughout the world,” said Chief Weissmann. “The global nature of this crime requires a global response, and this case is yet another example of the strong relationship between the United States and U.K. Serious Fraud Office and Brazilian Ministério Público Federal, and the collective efforts to ensure that ethical companies can compete on an even playing field anywhere in the world.”
“Rolls-Royce knowingly acted outside the law by conspiring to bribe foreign officials to gain an unfair advantage,” said Assistant Director Richardson. “No company is above the law. This resolution will stand as a warning to big and small companies all across the world that the FBI will not tolerate the foreign corruption that threatens our fair and competitive markets.”
“This successful parallel investigation is a tremendous example of the central importance of working cooperatively alongside our international partners to achieve a fair and meaningful resolution,” said Assistant Director in Charge Abbate. “This outcome is a reflection of the immense reach and capabilities of the FBI’s Washington Field Office international corruption squad and the global impact of the anti-corruption program.”
According to admissions made in court papers unsealed today, Rolls-Royce admitted that between 2000 and 2013, the company conspired to violate the Foreign Corrupt Practices Act (FCPA) by paying more than $35 million in bribes through third parties to foreign officials in various countries in exchange for those officials’ assistance in providing confidential information and awarding contracts to Rolls-Royce, RRESI and affiliated entities (collectively, Rolls-Royce):
- In Thailand, Rolls-Royce admitted to using intermediaries to pay approximately $11 million in bribes to officials at Thai state-owned and state-controlled oil and gas companies that awarded approximately seven contracts to Rolls-Royce during the same time period.
- In Brazil, Rolls-Royce used intermediaries to pay approximately $9.3 million in bribes to bribe foreign officials at a state-owned petroleum corporation that awarded multiple contracts to Rolls-Royce during the same time period.
- In Kazakhstan, between approximately 2009 and 2012, Rolls-Royce paid commissions of approximately $5.4 million to multiple advisors, knowing that at least a portion of the commission payments would be used to bribe foreign officials with influence over a joint venture owned and controlled by the Kazakh and Chinese governments that was developing a gas pipeline between the countries. In 2012, the company also hired a local Kazakh distributor, knowing it was beneficially owned by a high-ranking Kazakh government official with decision-making authority over Rolls-Royce’s ability to continue operating in the Kazakh market. During this time, the state-owned joint venture awarded multiple contracts to Rolls-Royce.
- In Azerbaijan, between approximately 2000 and 2009, Rolls-Royce used intermediaries to pay approximately $7.8 million in bribes to foreign officials at the state-owned and state-controlled oil company, which awarded multiple contracts to Rolls-Royce during the same time period.
- In Angola, between approximately 2008 and 2012, Rolls-Royce used an intermediary to pay approximately $2.4 million in bribes to officials at a state-owned and state-controlled oil company, which awarded three contracts to Rolls-Royce during this time period.
- In Iraq, from approximately 2006 to 2009, Rolls-Royce supplied turbines to a state-owned and state-controlled oil company. Certain Iraqi foreign officials expressed concerns about the turbines and subsequently threatened to blacklist Rolls-Royce from doing future business in Iraq. In response, Rolls-Royce’s intermediary paid bribes to Iraqi officials to persuade them to accept the turbines and not blacklist the company.
Rolls-Royce entered into a deferred prosecution agreement (DPA) in connection with a criminal information, filed on Dec. 20, 2016, in the Southern District of Ohio and unsealed today, charging the company with conspiring to violate the anti-bribery provisions of the FCPA. Pursuant to the DPA, Rolls-Royce agreed to pay a criminal penalty of $195,496,880, subject to a credit discussed below. The company has also agreed to continue to cooperate fully with the department’s ongoing investigation, including its investigation of individuals.
In related proceedings, Rolls-Royce also settled with the United Kingdom’s Serious Fraud Office (SFO) and the Brazilian Ministério Público Federal (MPF). As part of its resolution with the SFO, Rolls-Royce entered into a DPA and admitted to paying additional bribes or failing to prevent bribery payments in connection with Rolls-Royce’s business operations in China, India, Indonesia, Malaysia, Nigeria, Russia and Thailand between in or around 1989 and in or around 2013, and Rolls-Royce agreed to pay a total fine of £497,252,645 ($604,808,392). As part of its leniency agreement with the MPF, Rolls-Royce also agreed to pay a penalty of approximately $25,579,170 for the company’s role in a conspiracy to bribe foreign officials in Brazil between 2005 and 2008. Because the conduct underlying the MPF resolution overlaps with the conduct underlying part of the department’s resolution, the department credited the $25,579,170 that Rolls-Royce agreed to pay in Brazil against the total fine in the United States. Therefore, the total amount to be paid to the United States is $169,917,710, and the total amount of penalties that Rolls-Royce has agreed to pay is more than $800 million.
A number of factors contributed to the department’s criminal resolution with the company, including that Rolls-Royce did not disclose the criminal conduct to the department until after the media began reporting allegations of corruption and after the SFO had initiated an inquiry into the allegations and that the conduct was extensive and spanned 12 countries. However, the company did cooperate with the department’s investigation. Rolls-Royce has also taken significant remedial measures, including terminating business relationships with multiple employees and third-party intermediaries who were implicated in the corrupt scheme; enhancing compliance procedures to review and approve intermediaries; and implementing new and enhanced internal controls to address and mitigate corruption and compliance risks. Thus, the criminal penalty reflects a 25-percent reduction from the bottom of the U.S. Sentencing Guidelines fine range. In addition, the department considered the parallel resolutions reached by the SFO and MPF in determining the resolution.
The U.S. Postal Inspection Service and the FBI’s International Corruption Squad in Washington, D.C., investigated the case. Trial Attorneys Ephraim Wernick, Kevin Gingras and Dennis Kihm of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Michael J. Marous and Jessica Kim of the Southern District of Ohio are prosecuting the case.
The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The SFO and the MPF provided significant cooperation and assistance in this matter, as did law enforcement colleagues in Austria, Germany, the Netherlands, Singapore and Turkey.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Rolls-Royce DPA Rolls-Royce InformationRolls-Royce PLC Agrees to Pay $170 Million Criminal Penalty to Resolve Foreign Corrupt Practices Act CaseRead the Press Release
WASHINGTON – Rolls-Royce plc, the United Kingdom-based manufacturer and distributor of power systems for the aerospace, defense, marine and energy sectors, has agreed to pay the U.S. nearly $170 million as part of an $800 million global resolution to investigations by the department, U.K. and Brazilian authorities into a long-running scheme to bribe government officials in exchange for government contracts.
U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio, Chief Andrew Weissmann of the Fraud Section of the Justice Department’s Criminal Division, Assistant Director Stephen Richardson of the FBI’s Criminal Investigative Division, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office and Inspector in Charge Regina Faulkerson of the U.S. Postal Inspection Service’s Criminal Investigations Group made the announcement.
“Bribery of government officials undermines the integrity of a free and fair market,” said U.S. Attorney Glassman. “This multinational resolution imposes significant criminal penalties on Rolls-Royce for its multinational corruption.”
“For more than a decade, Rolls-Royce repeatedly resorted to bribes to secure contracts and get a competitive edge in countries throughout the world,” said Chief Weissmann. “The global nature of this crime requires a global response, and this case is yet another example of the strong relationship between the United States and U.K. Serious Fraud Office and Brazilian Ministério Público Federal, and the collective efforts to ensure that ethical companies can compete on an even playing field anywhere in the world.”
“Rolls-Royce knowingly acted outside the law by conspiring to bribe foreign officials to gain an unfair advantage,” said Assistant Director Richardson. “No company is above the law. This resolution will stand as a warning to big and small companies all across the world that the FBI will not tolerate the foreign corruption that threatens our fair and competitive markets.”
“This successful parallel investigation is a tremendous example of the central importance of working cooperatively alongside our international partners to achieve a fair and meaningful resolution,” said Assistant Director in Charge Abbate. “This outcome is a reflection of the immense reach and capabilities of the FBI’s Washington Field Office international corruption squad and the global impact of the anti-corruption program.”
According to admissions made in court papers unsealed today, Rolls-Royce admitted that between 2000 and 2013, the company conspired to violate the Foreign Corrupt Practices Act (FCPA) by paying more than $35 million in bribes through third parties to foreign officials in various countries in exchange for those officials’ assistance in providing confidential information and awarding contracts to Rolls-Royce, RRESI and affiliated entites (collectively, Rolls-Royce):
-
-
In Thailand, Rolls-Royce admitted to using intermediaries to pay approximately $11 million in bribes to officials at Thai state-owned and state-controlled oil and gas companies that awarded approximately seven contracts to Rolls-Royce during the same time period.
-
-
-
In Brazil, Rolls-Royce used intermediaries to pay approximately $9.3 million in bribes to bribe foreign officials at a state-owned petroleum corporation that awarded multiple contracts to Rolls-Royce during the same time period.
-
In Kazakhstan, between approximately 2009 and 2012, Rolls-Royce paid commissions of approximately $5.4 million to multiple advisors, knowing that at least a portion of the commission payments would be used to bribe foreign officials with influence over a joint venture owned and controlled by the Kazakh and Chinese governments that was developing a gas pipeline between the countries. In 2012, the company also hired a local Kazakh distributor, knowing it was beneficially owned by a high-ranking Kazakh government official with decision-making authority over Rolls-Royce’s ability to continue operating in the Kazakh market. During this time, the state-owned joint venture awarded multiple contracts to Rolls-Royce.
-
In Azerbaijan, between approximately 2000 and 2009, Rolls-Royce used intermediaries to pay approximately $7.8 million in bribes to foreign officials at the state-owned and state-controlled oil company, which awarded multiple contracts to Rolls-Royce during the same time period.
-
In Angola, between approximately 2008 and 2012, Rolls-Royce used an intermediary to pay approximately $2.4 million in bribes to officials at a state-owned and state-controlled oil company, which awarded three contracts to Rolls-Royce during this time period.
-
In Iraq, from approximately 2006 to 2009, Rolls-Royce supplied turbines to a state-owned and state-controlled oil company. Certain Iraqi foreign officials expressed concerns about the turbines and subsequently threatened to blacklist Rolls-Royce from doing future business in Iraq. In response, Rolls-Royce’s intermediary paid bribes to Iraqi officials to persuade them to accept the turbines and not blacklist the company.
-
Rolls-Royce entered into a deferred prosecution agreement (DPA) in connection with a criminal information, filed on Dec. 20, 2016, in the Southern District of Ohio and unsealed today, charging the company with conspiring to violate the anti-bribery provisions of the FCPA. Pursuant to the DPA, Rolls-Royce agreed to pay a criminal penalty of $195,496,880, subject to a credit discussed below. The company has also agreed to continue to cooperate fully with the department’s ongoing investigation, including its investigation of individuals.
- related proceedings, Rolls-Royce also settled with the United Kingdom’s Serious Fraud Office (SFO) and the Brazilian Ministério Público Federal (MPF). As part of its resolution with the SFO, Rolls-Royce entered into a DPA and admitted to paying additional bribes or failing to prevent bribery payments in connection with Rolls-Royce’s business operations in China, India, Indonesia, Malaysia, Nigeria, Russia and Thailand between in or around 1989 and in or around 2013, and Rolls-Royce agreed to pay a total fine of £497,252,645 ($604,808,392). As part of its leniency agreement with the MPF, Rolls-Royce also agreed to pay a penalty of approximately $25,579,170 for the company’s role in a conspiracy to bribe foreign officials in Brazil between 2005 and 2008. Because the conduct underlying the MPF resolution overlaps with the conduct underlying part of the department’s resolution, the department credited the $25,579,170 that Rolls-Royce agreed to pay in Brazil against the total fine in the United States. Therefore, the total amount to be paid to the United States is $169,917,710, and the total amount of penalties that Rolls-Royce has agreed to pay is more than $800 million.
A number of factors contributed to the department’s criminal resolution with the company, including that Rolls-Royce did not disclose the criminal conduct to the department until after the media began reporting allegations of corruption and after the SFO had initiated an inquiry into the allegations and that the conduct was extensive and spanned 12 countries. However, the company did cooperate with the department’s investigation. Rolls-Royce has also taken significant remedial measures, including terminating business relationships with multiple employees and third-party intermediaries who were implicated in the corrupt scheme; enhancing compliance procedures to review and approve intermediaries; and implementing new and enhanced internal controls to address and mitigate corruption and compliance risks. Thus, the criminal penalty reflects a 25-percent reduction from the bottom of the U.S. Sentencing Guidelines fine range. In addition, the department considered the parallel resolutions reached by the SFO and MPF in determining the resolution.
Assistant United States Attorneys Michael J. Marous and Jessica Kim of the Southern District of Ohio and Trial Attorneys Ephraim Wernick, Kevin Gingras and Dennis Kihm of the Criminal Division’s Fraud Section are prosecuting the case. The U.S. Postal Inspection Service and the FBI’s International Corruption Squad in Washington, D.C., investigated the case.
- Criminal Division’s Office of International Affairs provided significant assistance in this matter. The SFO and the MPF provided significant cooperation and assistance in this matter, as did law enforcement colleagues in Austria, Germany, the Netherlands, Singapore and Turkey.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
-
Roane County man pleads guilty to federal methamphetamine crimeRead the Press Release
CHARLESTON, W.Va. – A Roane County man pleaded guilty today to a federal drug charge, announced United States Attorney Carol Casto. Chadrick Rogers, 39, entered his guilty plea to possession with intent to distribute methamphetamine.
Rogers admitted that on October 2, 2016, he was arrested by members of the United States Marshals Service and the Kanawha County Sheriff’s Department on a warrant for violation of his federal supervised release. At the time of his arrest, Rogers was found in possession of approximately 33 grams of methamphetamine and over $3,800 in cash. Rogers further admitted that it was his intent to distribute the methamphetamine in and around Kanawha County.
Rogers faces up to 20 years in federal prison when he is sentenced on April 13, 2017.
The case against Rogers was investigated by the United States Marshal Service and the Kanawha County Sheriff’s Department. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
- Follow us on Twitter: SDWVNews
Puerto Rico Man Sentenced to 66 Months in Federal Prison for Trafficking CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSE TORRES SERRANO, 30, of Bayamon, Puerto Rico, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 66 months of imprisonment, followed by four years of supervised release, for trafficking cocaine.
According to court documents and statements made in court, on November 19, 2015, the U.S. Department of Homeland Security (“HSI”) in San Juan, Puerto Rico, contacted HSI agents in Hartford and relayed information that two packages containing an approximate combined weight of 5.27 kilograms of cocaine were destined for locations in Waterbury and Middletown. The investigation revealed that SERRANO was responsible for the shipping of the packages from Puerto Rico and was the intended recipient of both packages. SERRANO, who had travelled from Puerto Rico to receive the packages and distribute the cocaine, was arrested at the Waterbury address on November 20, 2015.
SERRANO has been detained since his arrest. On September 16, 2016, he pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine.
This matter was investigated by Homeland Security Investigations, the Middletown Police Department and the Connecticut State Police, with the support and assistance of the Middlesex State’s Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Robert M. Spector and Senior Assistant State’s Attorney Eugene Calistro, who was cross-designated as a Special Assistant U.S. Attorney in this matter.
Prior Felon from Las Cruces Sentenced to Federal Prison for Conviction on Firearms and Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – Michael Uribe, 40, of Las Cruces, N.M., was sentenced today in federal court to 63 months in prison followed by three years of supervised release for violating the federal firearms and drug trafficking laws.
Uribe was arrested on Nov. 20, 2015, on an indictment charging him with possession of methamphetamine with intent to distribute and being a felon in possession of a firearm and ammunition on Sept. 17, 2015, in Dona Ana County, N.M. According to the indictment, Uribe was prohibited from possessing firearms or ammunition because he previously had been convicted twice on forgery charges.
On April 22, 2016, Uribe pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute and being a felon in possession of a firearm and ammunition. In entering the guilty plea, Uribe admitted that on Sept. 17, 2015, law enforcement officers found 45.5 grams of methamphetamine, a revolver and ammunition in his hotel room during a consensual search. Uribe further admitted that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
This case was investigated by the Las Cruces office of the FBI and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force. Assistant U.S. Attorneys Dustin Segovia and Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Preston County man pleads guilty to unlawful purchase of a firearmRead the Press Release
ELKINS, WEST VIRGINIA – Cory Jean Gainey, 24, of Reedsville, West Virginia, was convicted of unlawfully purchasing a firearm, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Gainey pled guilty to one count of “False Statement During the Purchase of a Firearm.” He admitted that in October 2015, he provided a false statement to a licensed firearms dealer stating that he was the actual purchaser of the firearm when in fact he was buying it for another individual. 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 Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Monongalia County Sheriff’s Department, and the Morgantown Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Pensacola Man Sentenced to 135 Months in Prison for Assaulting a Law Enforcement OfficerRead the Press Release
PENSACOLA, FLORIDA – Thomas M. Jackson, 36, of Pensacola, Florida, has been sentenced to 135 months in prison for using a motor vehicle to assault a police officer with Naval Air Station Pensacola. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In March 2016, a police officer with the Naval Air Station Pensacola was on duty at the main gate when Jackson drove to the gate. The officer believed that Jackson was driving under the influence and tried to get Jackson to turn the vehicle off and surrender the keys. Jackson then accelerated the vehicle, striking the officer. The officer sustained several strained muscles and abrasions.
"Our law enforcement officers strive to keep us all safe, while putting themselves at risk," said United States Attorney Christopher P. Canova. Those who seek to harm our officers will be prosecuted to the fullest extent of the law."
The case was investigated by the Naval Criminal Investigative Service and the Naval Air Station Pensacola Police Department. This case was prosecuted by Assistant U.S. Attorney Jeffrey M. Tharp.
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 available 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]Pensacola Man Pleads Guilty to Federal Indictment for Mailing Threats to Sheriff MorganRead the Press Release
PENSACOLA, FLORIDA – Regis L. Walker, 30, of Pensacola, pled guilty today to mailing threatening communications. The guilty plea was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
In June 2016, Walker mailed a threatening letter on notebook paper to Sheriff David Morgan at the Escambia County Sheriff’s Office. In the letter, Walker claimed several people who had joined ISIS would simultaneously attack military bases, beaches, and schools at a nonspecific time and could not be stopped by law enforcement. Walker made specific reference to the recent attack in Orlando, Florida, that killed approximately 50 people. Walker wrote that the attackers planned on “not giving up,” and that they “plan on dying.” He appeared to sign the note as “ISIS ALLAH.”
Walker faces a maximum of five years in federal prison. The sentencing hearing is scheduled for April 6, 2017 at 12:30p, at the United States Courthouse in Pensacola.
This case resulted from an investigation by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, and the Florida Department of Law Enforcement. Assistant United States Attorney David L. Goldberg 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 available 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]
Pennsylvania Man Pleads Guilty to Bank FraudRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced that Alexander Ortega, of Barnesville, Pennsylvania, has pleaded guilty to one count of bank fraud.
Ortega pleaded guilty before United States District Judge Landya McCafferty to an Indictment that had been returned by the Grand Jury on March 23, 2016.
According to court filings and statements in Court, between February 7, 2014, and March 13, 2014, Ortega opened a bank account with counterfeit checks and then, using certified bank checks from that account, and the ATM/Debit card associated with the account, he withdrew funds fraudulently, causing a total loss of approximately $34,163.93.
Ortega will be sentenced at 11:00 AM on May 2, 2017.
The case was investigated by the U.S. Postal Inspection Service and the Lebanon, and Enfield, New Hampshire Police Departments. Assistant U.S. Attorney Alfred Rubega is prosecuting this case.
###
Park Hill Man Pleads Guilty to Methamphetamine Distribution, Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JEFFREY SCOTT HOFFMAN, age 46, of Park Hill, Oklahoma, pled guilty to POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by no more than 20 years imprisonment, and up to a$1,000,000.00 fine or both; and to POSSESSION OF UNREGISTERED FIREARM (SAWED-OFF SHOTGUN), in violation of Title 26, United States Code, Sections 5861(d), 5841, 5845(a) and 5871, punishable by no more than 10 years imprisonment, and up to a$250,000.00 fine or both.
The Indictment alleged that on or about November 5, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Indictment further alleged that on or about November 5, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly possess a shotgun having a barrel less than 18 inches in length, which is a firearm, as defined in Title 26, United States Code, Section 5845, not registered to him in the National Firearms Registration and Transfer Record.
The charges arose from an investigation by the Hulbert Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in custody pending a sentencing hearing.
Assistant United States Attorney Dean Burris represented the United States.
Pakistani Man Convicted of Defrauding FedEx of Nearly $300,000Read the Press Release
HOUSTON ‐ A 32-year-old Pakistani national who resided in the local area has pleaded guilty to six counts of mail fraud, announced U.S. Attorney Kenneth Magidson. Babar Butt resided in multiple locations in Houston and Spring and operated an electronics export business, routinely shipping items to Dubai, United Arab Emirates.
Beginning in February 2015, Butt devised a scheme whereby he defrauded FedEx by opening various shipping accounts. He would ship one or more packages of cell phones and electronics to Dubai and elsewhere until the charges were declined and he could no longer ship on that account. He would then open new accounts to continue his scheme and would again not pay his shipping invoices, causing significant losses to FedEx.
U.S. District Judge Keith P. Ellison accepted the plea today and set sentencing for April 4, 2017. At that time, Butt faces up to 20 years in federal prison as well as a possible $250,000 maximum fine. He could also be ordered to pay restitution in the amount of $287,679. He will remain in custody pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorney Heather Winter is prosecuting the case.
Ohio Man Charged with Interfering with Crew on Pittsburgh to Columbus FlightRead the Press Release
PITTSBURGH- A resident of University Heights, Ohio, has been indicted by a federal grand jury in Pittsburgh on a charge of interfering with the duties of a flight crew, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Dwight D. Allen, 55, of University Heights, Ohio as the sole defendant. According to the indictment presented to the court, on December 17, 2016, a Delta flight out of Pittsburgh, Pennsylvania, was heading to Columbus, Ohio, and the defendant, Dwight D. Allen, interfered with the performance of duties of a flight crew member or flight attendant of the aircraft, and lessened the ability of the member or attendant to perform those duties, by assaulting and intimidating the flight attendant or flight crew member. The indictment alleges that the defendant disregarded instructions to remain in his seat, attempted to physically force his way to the front galley and cockpit area of the airplane, and had to be physically restrained by attendants and passengers as the plane was returned to the gate due to the defendant’s aggressive behavior.
Arraignment has been set for February 7, 2017, at 9:30 a.m. Magistrate Judge Cynthia Reed Eddy.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of not more than $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Allegheny County Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.