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Monday 21 November 2016
Brooklyn Man Arrested for Attempting to Provide Material Support to ISILRead the Press Release
A criminal complaint was unsealed today in federal court in the Eastern District of New York charging Mohamed Rafik Naji with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization. Naji was arrested earlier today at his home in Brooklyn, New York, and his initial appearance is scheduled for this afternoon before U.S. Magistrate Judge Robert M. Levy at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by U.S. Attorney Robert L. Capers of the Eastern District of New York, Acting Assistant Attorney General for National Security Mary B. McCord, Assistant Director in Charge William F. Sweeney of the New York Field Office of the Federal Bureau of Investigation (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD).
As set forth in court documents, Naji is a 37-year-old legal permanent resident of the United States. Beginning in December 2014, through social media posts, Naji expressed his support of ISIL by, among other posts, sharing a video of an ISIL leader advocating violence against civilian targets. According to the complaint, in March 2015, Naji travelled from New York to Yemen in an effort to join ISIL’s ranks. While in Yemen, Naji persistently tried to travel to areas controlled by ISIL. In emails to an associate in the United States, Naji explained that he was on his fifth try to reach ISIL controlled territory. He also sent his associate media files with sounds of gunfire and claimed to have been almost killed by the “army.” Following these email exchanges, Naji instructed his associate to “erase all ur messages,” “even from your trash.”
While in Yemen, Naji engaged in online conversations with a confidential source. During those conversations, Naji instructed the confidential source that in order to join “dawlat islam” he should travel to Hadramout, an area in southern Yemen. In one of the online conversations with the confidential source Naji proclaimed his allegiance to ISIL stating, “I belong to Islamic state only,” according to the complaint.
Naji returned to the United States in September 2015. Since his return, he has continued to express his support for ISIL and violent jihad. Following the deadly attack in Nice, France in July 2016, Naji expressed support for a similar attack in Times Square.
“As alleged, the defendant was persistent in his efforts to join ISIL and support its terrorist objectives,” stated U.S. Attorney Capers. “We will continue to identify and prosecute individuals like Naji who seek to empower our nation’s enemies and endanger our citizens and partners around the world.” Mr. Capers extended his grateful appreciation to the FBI’s Joint Terrorism Task Force, which comprises a number of federal, state and local agencies from the region.
“As we alleged in our complaint today, Naji has shown continued support to ISIL, beginning in 2014 with social media posts and ultimately traveling to Yemen in March 2015 where he claimed his allegiance to ISIL stating, ‘I belong to Islamic state only.’ He continued to express support for ISIL and violent jihad upon his return in the US months later. Terrorism threats, like Naji, are only mitigated through the joint efforts of law enforcement to protect our communities,” said FBI Assistant Director in Charge Sweeney.
“As alleged, the defendant expressed a devotion to join ISIL through both conversation and social media, traveling to Yemen in an effort to join their ranks,” said Police Commissioner O’Neill. “Detectives and agents on the Joint Terrorism Task Force uncovered the alleged terrorist objectives of the defendant. I want to commend their work in continually protecting New York City, and our nation, from those who seek to harm us.”
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant U.S. Attorneys Melody Wells and Ian Richardson of the National Security & Cybercrime Section of the U.S Attorney’s Office, with assistance from Brian Morgan of the National Security Division’s Counterterrorism Section.
The Defendant:
MOHAMED RAFIK NAJI
Age: 37
Brooklyn, New YorkE.D.N.Y. Docket No. 16-M-1049
Assisted Living Chain “Emeritus” Settles Allegations of Overbilling Government ProgramsRead the Press Release
The United States Department of Justice and Emeritus Corporation, dba Emeritus Senior Living, today settled claims that Emeritus had failed to refund to the U.S. overpayments for Medicaid services, announced U.S. Attorney Annette L. Hayes. Under the terms of the settlement, Emeritus admits no wrongdoing, but makes payments to the U.S. and various states totaling $979,000. Emeritus was headquartered in Seattle and had senior living facilities throughout the United States. In 2014 Emeritus was purchased by Brookdale Senior Living, Inc., of Brentwood, Tennessee.
According to the settlement agreement, Emeritus will pay the federal government $587,400 for payments it should have refunded to the federal Medicaid program. An additional $391,600 will be divided between eighteen states where Emeritus had facilities. The dollar amounts are estimates of overpayments Emeritus failed to refund to state and federal programs between 2008 and 2014. The investigation began with an online hotline report from a former employee of Emeritus alleging that Emeritus systematically “wrote-off” credit balances as a result of limitations in the company’s accounting software.
The accounting software has been replaced with one that can better track overpayment.
The U.S. Health and Human Services Office of Inspector General (HHS-OIG) led the investigation. The settlement was negotiated by Assistant United States Attorney Kayla Stahman with the U.S. Attorney’s Office for the Western District of Washington. A National Association of Medicaid Fraud Control Units (NAMFCU) Team participated in the investigation and conducted the settlement negotiations with Emeritus on behalf of the states and included representatives from the Offices of the Attorneys General for the states of Washington, Oregon, Colorado, Texas and Florida.
Ally Financial Agrees to Pay $52 Million to Resolve Investigation into Improper Conduct Related to Issuance of Mortgage-Backed SecuritiesRead the Press Release
LOS ANGELES – Ally Financial Inc. has agreed to pay the United States $52 million to settle allegations that its subsidiaries acted improperly in relation to 10 subprime residential mortgage backed securities (RMBS) in 2006 and 2007.
A settlement agreementannounced today resolves an investigation into alleged violations of the Financial Institutions Reform Recovery and Enforcement Act (FIRREA), specifically conduct related to the packaging, securitization, marketing, sale and issuance of the RMBS.
Under the settlement agreement, Ally is required to pay a $52 million civil penalty and to immediately discontinue operations of its registered broker-dealer, Ally Securities, LLC, which served as the lead underwriter on the subprime RMBS at issue in this matter.
The subsidiary will be wound-down immediately and de-registered as a broker-dealer as acknowledgment of the improper conduct. The broker-dealer served as the lead underwriter on the 10 subprime RMBS offerings issued in the RASC-EMX series between 2006 and 2007. Ally Securities dedicated a specialized marketing effort to create the RASC-EMX brand, securing investors for the RMBS offerings, and directing third-party due diligence on samples of the mortgage loan pools underlying the RMBS to test whether the loans comply with disclosures made to investors in the public offering documents.
As the lead underwriter, Ally Securities recognized in 2006 and 2007 that there was a consistent trend of deterioration in the quality of the mortgage loan pools underlying the RASC-EMX Securities that stemmed, at least in part, from deficiencies in the subprime mortgage loan underwriting guidelines and diligence applied to the collateral prior to securitization. All the RASC-EMX Securities sustained losses as a result of underlying mortgage loans falling delinquent.
“These securities were marketed to investors with the knowledge that a significant percentage of the pooled subprime mortgages were toxic, meaning that they were underwritten to risky guidelines likely to result in the loans falling delinquent,” said United States Attorney Eileen M. Decker. “Nevertheless, Ally Securities continued to market the RMBS, and investors lost millions of dollars as the value of the securities plummeted. Today's settlement demonstrates that financial institutions are responsible, and therefore will be held accountable, for products they sell to the public."
FIRREA authorizes the federal government to impose civil penalties against financial institutions that violate various criminal offenses, including wire and mail fraud. The settlement expressly preserves the government’s ability to bring criminal charges against Ally, and does not release any individuals from potential criminal or civil liability.
Under the settlement agreement, Ally is required to pay the entirety of the $52 million settlement in the coming weeks.
The investigation into the securitization of subprime mortgages by Ally’s subsidiaries was led by Assistant United States Attorney Indira Cameron-Banks, who worked with special agents with the Federal Housing Finance Agency’s Office of the Inspector General (FHFA-OIG) and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
“The sale of toxic mortgage backed securities crushed the housing market and the economy, leading to years of uncertainty and hardship for many,” said Leslie P. DeMarco, Special Agent in Charge of the Federal Housing Finance Agency-Office of Inspector General’s Western Region. “Today Ally Securities is being held accountable for the role it played. As we move forward, FHFA-OIG will continue to hold entities responsible and work toward building a healthier housing market.”
“Ally received substantial TARP bailout funds. With this agreement, Ally acknowledges that the underwriting and diligence process was deficient in connection with the securitization of 40,000 toxic subprime mortgage loans by its subsidiaries – exactly the type of abuse that contributed to the financial crisis,” said Christy Goldsmith Romero, the Special Inspector General for the Troubled Asset Relief Program. “SIGTARP is committed to working with our law enforcement partners to protect taxpayers and hold those responsible for the financial crisis accountable.”
Ally was cooperative in resolving this matter.
This settlement is part of the Financial Fraud Enforcement Task Force’s RMBS Working Group, which has made recoveries on behalf of American consumers and investors for claims against large financial institutions arising from misconduct related to the financial crises. The RMBS Working Group has brought 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 Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network and multiple state Attorneys General offices around the country. Learn more about the RMBS Working Group and the Financial Fraud Enforcement Task Force at www.stopfraud.gov.
Sunday 20 November 2016
Defendant Who Spent Six Years on the Run Finally Sentenced to 27 Years in Federal PrisonRead the Press Release
KANSAS CITY, KAN. – A drug trafficker who was a fugitive from justice for six years was sentenced Friday to 27 years in federal prison, U.S. Attorney Tom Beall said. The defendant also was ordered to forfeit more $13 million in proceeds from his crimes.
Yehia Hassen, 36, formerly of Richmond, Va., pleaded guilty to one count of conspiracy to distribute cocaine and marijuana, and one count of attempted money laundering. In his plea, he admitted he was part of a large drug trafficking organization that operated in Kansas City, Kan. Drugs smuggled from Mexico were transported to Kansas City and then to Hassen in Richmond.
In all, Hassen received more than 100 kilograms of cocaine shipped to him from Kansas City. The organization used commercial and personal vehicles to ship drugs to Kansas City and transport cash to Mexico to pay for drugs.
While Hassen was on release pending sentencing, he absconded. He used false identities to remain free until he was arrested in the Republic of Cyprus on April 28, 2016.
Beall commended the agencies and individuals who took part in Operation Load Runner, including the Drug Enforcement Administration, the U.S. Marshals Service, Assistant U.S. Attorney David Zabel and Assistant U.S. Attorney Tris Hunt.
Friday 18 November 2016
“Real Time”: Two Men Sentenced in Federal Court on Gun Charges, Six Others Enter Guilty Pleas over Two Days of Hearings in Federal CourtRead the Press Release
COLUMBIA, South Carolina ---- Acting United States Attorney Beth Drake stated today that multiple individuals entered guilty pleas this week on federal gun charges while others were sentenced for firearms violations. Guilty pleas and sentencing hearings are bifurcated in the federal system and United States District Court Judge Bruce H. Hendricks presided over all of the hearings this week.
These cases represent a small snapshot of “Real Time,” an ongoing local, state, and federal initiative that expedites the identification, arrest, detention, and federal prosecution of repeat offenders arrested with firearms. The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the Greenville community.
In addition to Greenville Police Department (GPD), the Greenville County Sheriff’s Office (GCSO), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Real Time’s core partners include the South Carolina Department of Probation, Parole, and Pardon Services, the South Carolina Highway Patrol, the Department of Homeland Security, the Federal Bureau of Investigation, the Drug Enforcement Administration, the 13th Circuit Solicitor’s Office, and the United States Attorney’s Office.
Greenville Police Chief Ken Miller and his department were one of the first partners on board for this initiative. Chief Miller stated that “This multi-agency partnership endeavors to keep our communities safe and reduce firearms violence through ‘real time’ identification of dangerous individuals who seek to disrupt our streets and communities with firearms-driven violence.”
Acting U.S. Attorney Beth Drake commended the partnership between the state and federal agencies that led to the ATF and the U.S. Attorney’s Office prosecuting the cases federally, “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”
Since its launch in August of 2015, the initiative has resulted in the expedited federal prosecution of some 78 defendants and seizure of over 110 firearms as well as assorted ammunition from prohibited persons.
Sentencing Hearings: November 15, 2016
United States of America v. Julian Rashad Sawyer: Julian Rashad Sawyer, age 28, of Greenville, was sentenced to 46 months in federal prison followed by a three-year term of supervised release, after previously entering a guilty plea in July to felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1). After Sawyer’s initial arrest on state firearms charges, ATF adopted the case for federal prosecution. Sawyer was then arrested on a federal warrant for this conduct, was detained without a bond, and will remain in federal custody until he is designated and transported to the Bureau of Prisons.Evidence presented by the government during both the guilty plea hearing and the sentencing hearing established that on April 25, 2016, officers with the Mauldin Police Department conducted a traffic stop on a vehicle in which Sawyer was a passenger. Sawyer was found to be in possession of a Smith and Wesson 9mm pistol with a loaded 9mm magazine nearby.
The case was investigated by the Mauldin Police Department and the ATF, and was prosecuted by Assistant United States Attorney Max Cauthen in the Greenville office.
United States v. James Robert Hutson: James Robert Hutson, age 26, of Simpsonville, was sentenced to 51 months in federal prison followed by a three-year term of supervised release, after previously entering a guilty plea in July to felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1). After Hutson’s initial arrest on state firearms charges, ATF adopted the case for federal prosecution. Hutson was then arrested on federal warrants for this conduct, was detained without a bond, and will remain in federal custody until he is designated and transported to the Bureau of Prisons.
Evidence presented by the government during both the guilty plea hearing and the sentencing hearing established that on November 27, 2015, officers with the GPD conducted a traffic stop on a vehicle driven by Hutson. When Hutson exited the car, an officer observed his pocket swing as if there was something heavy in it. The officer then conducted a pat-down of Hutson’s outer clothing and recognized what he immediately knew to be loose rounds of ammunition in one of Hutson’s pockets and secured the rounds.
A subsequent search of the vehicle revealed a loaded Lorcin .25 caliber pistol, located between the driver’s seat and the center console. Hutson was sentenced to 51 months in federal prison followed by a three-year term of supervised release. Investigated by the GPD and ATF, the case was prosecuted by Assistant United States Attorney Max Cauthen in the Greenville office.
Guilty Pleas: November 16, 2016
United States v. Ashley Ann Chapman: Ashley Ann Chapman, age 32, of Piedmont, South Carolina, entered a guilty plea to one count of Possession of a Firearm by a Convicted Felon, in violation of Title 18, United States Code, Section 922(g)(1). The Government presented evidence at the guilty plea hearing that on August 26, 2016, Chapman was stopped in Pickens County for a traffic violation. During the stop, while checking her license, Chapman, who is prohibited from possessing firearms or ammunition based on her prior criminal history, informed officers that she was in possession of a pistol. Officers then located a loaded North American Arms .22 caliber pistol in her clothing.Chapman remains in custody awaiting a sentencing hearing which will be calendared after a presentence investigation report is prepared by the United States Probation Office. The maximum penalty for this offense is ten-years imprisonment, followed a three-year term of supervised release, and/or a fine of $250,000.
The South Carolina Highway Patrol along with agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case. It is assigned to Assistant United States Attorney Max Cauthen in the Greenville office.
United States v. Treasure Anderson: Treasure Anderson, age 28, of Anderson, South Carolina, entered a guilty plea to one count Possession of a Firearm by a Convicted Felon, in violation of Title 18, United States Code, Section 922(g)(1). The Government presented evidence at the guilty plea hearing that on March 8, 2016, Gaffney Police Department attempted to pull over a black mustang. The vehicle fled from law enforcement, and a car chase ensued. The black mustang eventually wrecked, and the occupants of the vehicle were arrested.
Law enforcement searched the mustang and recovered a loaded Jimenez Arms, Inc., model J.A. 22, .22 caliber pistol from the passenger seat where Anderson had been sitting. They also recovered a quantity of methamphetamine. When Anderson observed the officers taking the gun and drugs out of the car, she yelled that the items belonged to her. Anderson has previously been convicted of a felony and is not permitted to carry firearms.
Anderson remains in custody, awaiting a sentencing hearing which will be calendared after a presentence investigation report is prepared by United States Probation. The maximum penalty for this offense is ten-years imprisonment and/or a fine of $250,000. The case was investigated by the Gaffney Police Department and ATF and is assigned to Assistant United States Attorney Jamie Schoen in the Greenville office.
United States v. Nakeo Vance: Nakeo Vance, age 41, of Greenville, South Carolina, entered a guilty plea to one count of Possession of a Firearm by a Convicted Felon and Domestic Violence Offender, in violation of Title 18, United States Code, Section 922(g)(1) and (g)(9), and two counts Possession of Counterfeit Currency, in violation of Title 18, United States Code, Section 472.The Government presented evidence at the guilty plea that on May 16, 2015, GCSO conducted a traffic stop on a car in which Vance was a passenger. Vance was wanted on outstanding warrants, and law enforcement eventually searched the car. Officers located a wallet in the vehicle with Vance’s ID and 98 counterfeit federal reserve notes. Vance admitted that he had received the counterfeit from a drug deal, and had already used approximately $600.00 in counterfeit to pay off drug debts.
A year later, Vance was again arrested, but this time, by GPD. On May 13, 2016, GPD received a call from a hotel regarding possible drug activity and additional concerning information. Officers arrived and observed Vance standing outside of a Chrysler, acting suspiciously. Once Vance observed law enforcement, Vance shoved an item into a backpack he was holding and threw the backpack into the car. Officers patted down Vance due to safety concerns and found that he was carrying a loaded Butler Associate, .22 caliber handgun. Vance then ran from the police.
Officers eventually apprehended Vance and found that he was carrying more counterfeit bills. Law enforcement searched the Chrysler and found a loaded General Precision Corporation .22 caliber revolver in the backpack Vance had been holding. Vance has previous felony convictions and a conviction for misdemeanor domestic violence.
Vance remains in custody, awaiting a sentencing hearing which will be calendared after a presentence investigation report is prepared by United States Probation. The maximum penalty for this offense is ten-years imprisonment and/or a fine of $250,000. The maximum penalty for the counterfeit charges is twenty-years imprisonment and/or a fine of $250,000.
The case was investigated by the Secret Service, GPD, GCSO, and ATF and is assigned to Assistant United States Attorney Jamie Schoen in the Greenville office.United States v. Norman Jefferson: Norman Jefferson, age 51, of Greenville, South Carolina, pled guilty to one count Carrying a Firearm in Furtherance of a Drug Trafficking Crime, in violation of Title 18, United States Code, Section 924(c) and one count Conspiracy to Distribute Crack Cocaine, in violation of Title 21, United States Code, Section 846.
The Government presented evidence at the guilty plea that in January and February of 2016, Jefferson sold crack cocaine on multiple occasions from his residence. In March of 2016, GPD conducted a search of the residence, and upon entering, found Jefferson near crack cocaine and cocaine powder. Jefferson was also carrying a loaded Ruger .380 caliber pistol at the time. Drug distribution materials were located throughout the house. Jefferson stated that he had the gun for protection because people who come to his house to get high are unpredictable.
Jefferson remains in custody, awaiting a sentencing hearing which will be calendared after a presentence investigation report is prepared by United States Probation. This offense calls for a mandatory minimum sentence of five-years and a maximum penalty of life imprisonment, as well a fine of $250,000 and a term of supervised release of five-years.
The case was investigated by the Gaffney Police Department and ATF and is assigned to Assistant United States Attorney Jamie Schoen in the Greenville office.
United States of America v. Jomokayatta Walter Dennis Cook: Jomokayatta Walter Dennis Cook, age 36, of Greenville, South Carolina, pled guilty to Possession of a Firearm by a Convicted Felon, in violation of Title 18, United States Code, Section 922(g)(1).The Government presented evidence at the guilty plea that on September 16, 2016, Cook, a security staff employee at a Greenville restaurant, possessed a loaded Sturm 9mm pistol during a verbal altercation with a fellow employee while in an employee break area at the restaurant. Cook’s possession of the pistol was captured on surveillance video at the location. Cook has previous felony convictions that prohibit him from possessing firearms or ammunitions.
Cook was arrested on federal warrants that same evening and has been detained with no bond since his arrest. Cook remains in custody on a $250,000 secured bond, awaiting a sentencing hearing which will be calendared after a presentence investigation report is prepared by United States Probation. The maximum penalty for this offense is ten-years imprisonment and/or a fine of $250,000.
The case was investigated by GPD and ATF and is assigned to Supervisory Assistant United States Attorney Lance Crick in the Greenville office.
United States of America v. Xavier Javaris Dawkins: Xavier Javaris Dawkins, age 27, of Greenville, South Carolina, pled guilty to Possession of a Firearm by a Convicted Felon, in violation of Title 18, United States Code, Section 922(g)(1).The Government presented evidence at the guilty plea that on March 27, 2016, GCSO deputies responded to a Greenville nightclub in reference to a disturbance in the parking lot. While en route to the incident location, deputies were advised that a suspect (identified upon arrival as Dawkins), was being detained by the club’s security staff.
Upon arrival, club security relayed to GCSO that security had removed four individuals from the night club due to their involvement in a fight. After the individuals were removed, security observed Dawkins walk to his vehicle and remove a handgun and chamber a round in the handgun. After security commanded that Dawkins drop the weapon, Dawkins complied and placed the handgun back into the vehicle. Dawkins was detained by club security until GCSO arrived.
The seized handgun was loaded with fourteen rounds of ammunition. At the time of this offense, Dawkins was on active state probation following a previous conviction for unlawful carrying of a firearm.
Dawkins was arrested on federal warrants and has been detained with no bond since his arrest. Dawkins remains in custody, awaiting a sentencing hearing which will be calendared after a presentence investigation report is prepared by United States Probation. The maximum penalty for this offense is ten-years imprisonment and/or a fine of $250,000.
The case was investigated by GPD and ATF and is assigned to Supervisory Assistant United States Attorney Lance Crick in the Greenville office.
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“Dino the Casino” of Los Angeles Indicted for Statewide Illegal Gambling Business, Money Laundering, and Cocaine DistributionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 12-count indictment Thursday against Nive Hagay, 31, of Los Angeles, charging him with operating an illegal gambling business, money laundering, and cocaine distribution, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, between approximately July 2011 and November 2016, Hagay, who also went by the name “Dino the Casino,” placed video slot machines in small businesses from Bakersfield to Sacramento. These machines allegedly generated an estimated $1.9 million in cash per year, in violation of California state law. Hagay then laundered proceeds from the illegal gambling business through clothing companies in Los Angeles, as well as by making large purchases with the cash proceeds, such as a $202,000 cash transaction for a 2014 Audi R8. Finally, Hagay is charged with distributing a substance testing positive for cocaine.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice – Bureau of Gambling Control. Assistant United States Attorney Matthew M. Yelovich is prosecuting the case.
If convicted, Hagay faces a maximum statutory penalty of five years in prison and a $250,000 fine for the gambling charge; 10 years in prison and a $250,000 fine or fine of twice the value of the property involved in the transaction for one of the money laundering charges; 20 years in prison and a $500,000 fine or a fine of twice the value of the property involved in the transaction for the remaining money laundering charges; and 20 years in prison and a $1 million fine for the cocaine distribution charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Willianson County Man Charged with Cocaine OffenseRead the Press Release
Leon S. Johnson, 40, of Herrin, was indicted on November 8, 2016, in a one-count indictment charging possession with intent to distribute more than 500 grams of cocaine, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
The indictment alleges the offense occurred on November 4, 2016, in Williamson County. Johnson made his initial appearance in federal court on November 15, 2016. He was ordered held without bond, pending a January 17, 2017, jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The cocaine offense carries a maximum penalty of 5-40 years imprisonment, to be followed by 4 years supervised release, and a $5,000,000 fine.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Herrin Police Department, Williamson County Sheriff’s Office, and Drug Enforcement Administration. The Williamson County States Attorney’s Office and Illinois National Guard also assisted in the investigation.
Williamson County Man Charged with Methamphetamine OffensesRead the Press Release
Otis R. Elion, 48, of Marion was indicted on November 8, 2016, in a three-count indictment charging distribution of methamphetamine, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
The indictment alleges the offenses occurred on October 17-18, 2016, in Williamson County. Elion made his initial appearance in federal court on November 15, 2016. He was ordered held without bond, pending a January 23, 2017, jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The methamphetamine offenses carry a penalty of up to 20 years imprisonment, to be followed by 3 years supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Southern Illinois Enforcement and Drug Enforcement Administration. The Marion Police Department Emergency Response Team, Illinois State Police, and Williamson County States Attorney’s Office assisted in the investigation.
West Palm Beach Resident is Convicted of Attempting to Conceal Money Subject to SeizureRead the Press Release
Doraisy Martinez, 39, of West Palm Beach, pled guilty to one count of attempted removal of property to prevent seizure.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), made the announcement.
According to the court record, including facts admitted at the plea hearing, in March 2016, Martinez was living with her boyfriend, Osvaldo Rizo Santana, in Boynton Beach. On March 16, 2016, DEA agents executed a search warrant at the house, seized almost a kilogram of cocaine, and arrested Santana. On March 17 and 18, 2016, Santana called Martinez several times from jail. In the recorded calls, Santana and Martinez discussed an item that was buried in their yard. On March 18, 2016, DEA agents went to Santana and Martinez’s house. There they observed Martinez digging a hole in the ground and new holes on the property. Agents then obtained a search warrant for the premises. There they discovered, buried at the location where Ms. Martinez had been digging when the agents arrived, $20,000 in a vacuum sealed package. Martinez had attempted to remove the money to prevent it from being seized by law enforcement.
In a separate case, Santana pled guilty to conspiracy to possess with the intent to distribute cocaine and was sentenced to 37 months’ incarceration.
Martinez faces a maximum possible statutory sentence of five years in prison.
Mr. Ferrer and Mr. Wright commended the investigative efforts of the DEA. This case is being prosecuted by Assistant U.S. Attorney Marc Osborne.
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.
Virginia Man Sentenced to 17 Years in Prison for Production of Child PornographyRead the Press Release
A Virginia man was sentenced today to 204 months in prison for production of child pornography, enticing minors to engage in sexually-explicit conduct online and recording the acts.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney Dana J. Boente of the Eastern District of Virginia; Colonel Edwin C. Roessler Jr., Chief of the Fairfax County, Virginia, Police Department; and Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C., made the announcement.
Lucas Aronson, 31, of Alexandria, pleaded guilty on Aug. 23, 2016, and was sentenced today by U.S. District Judge Anthony J. Trenga of the Eastern District of Virginia, who also ordered Aronson to serve a lifetime of supervised release.
According to admissions made in connection with his plea, Aronson posed as a minor girl while using video and text chat websites to chat with minor girls online. Aronson engaged in sexually explicit chats and enticed some of the minors to engage in sexually explicit activity on web camera and recorded the videos, which he maintained on a thumb drive that was found in his residence. In January 2015, Aronson was arrested after streaming a video of a toddler-aged female engaged in sexually explicit conduct with an adult male on a chat website.
The Fairfax County Police and HSI investigated the case. Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jay V. Prabhu of the Eastern District of Virginia prosecuted the case.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Undercover Operation by Coast Guard Investigators Leads to Dismantling of 5 ‘Document Mills’ that Produced Bogus ID DocumentsRead the Press Release
LOS ANGELES – As part of an ongoing undercover operation by Special Agents with the Coast Guard Investigative Service (CGIS), five fraudulent “documents mills” have been dismantled in recent months, and the investigation has now resulted in charges against 13 defendants who allegedly produced bogus identity documents.
Two of those defendants pleaded guilty today in United States District Court, each admitting that they sold undercover agents and confidential informants counterfeit Legal Permanent Resident cards (also known as “Green Cards”) and Social Security cards.
Today’s guilty pleas are the latest convictions stemming from Operation “Buzzkill,” a CGIS investigation that shut down three fraudulent “document mills” near MacArthur Park in September. Two other document mills were closed in June.
Operation Buzzkill identified the manufacturers of bogus documents, as well as the sellers and “runners” who facilitate their sale. As a result of the investigation, over the past year, federal prosecutors have filed a series of cases that charge 13 defendants with participating in a black market for counterfeit documents.
The document mills allegedly produced a range of counterfeit identity documents, including driver’s licenses, Social Security cards, United States passports, military identification cards, and highly regulated Transportation Worker Identification Credentials (TWICs), which enable unrestricted access to secure facilities within the ports and waterways of Los Angeles. TWICs are issued by the Transportation Security Administration (TSA) and enforced by the United States Coast Guard (USCG) for the purpose of restricting individuals with significant criminal records, non-United States citizens and members of terrorist organizations from gaining access to the sensitive infrastructures surrounding our nation’s trade routes.
“Our national security and the integrity of many government programs rests on our ability to ascertain the true identity of individuals,” said United States Attorney Eileen M. Decker. “False identification documents – even if they can be easily recognized by knowledgeable individuals – may allow unauthorized individuals to access controlled areas or to fraudulently receive benefits.”
“Proper identification and background checks of transportation workers are an important aspect of our multi-agency, multi-layered port security system,” said Rear Admiral Todd Sokalzuk, commander of the 11th Coast Guard District, which includes the Los Angeles/Long Beach region. “I applaud the skill and tenacity of our Coast Guard Investigative Service agents and partner agencies who shut down these counterfeit ID operations, and appreciate the help of a vigilant maritime community in keeping our ports safe and secure.”
The two defendants who pleaded guilty today are:
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Gustavo Nunez Garcia, also known as Gustavo Garcia Nunuz and “Octavio,” 34, of the Westlake District of Los Angeles, who pleaded guilty this morning before United States District Judge S. James Otero; and
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Miguel Rueda, also known as “El Pelon,” 44, of Paramount, who pleaded guilty before United States District Judge Otis D. Wright II.
Both defendants pleaded guilty to one count of production of false identity documents, a felony offense that carries a statutory maximum penalty of 15 years in federal prison. Garcia and Rueda are both scheduled to be sentenced on February 27.
Garcia was one of five Westlake District residents who were arrested by CGIS special agents on October 3. The other defendants arrested last month on charges of producing false identity documents are:
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Argenis Capistran, also known as “Pac Man,” 23, who allegedly worked with Garcia;
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Ivonne Adriana Sanchez Hernandez, 49, who allegedly helped produce counterfeit TWICs and Green Cards in relation to a Westlake business called Galaxi Photo;
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Fernando Hernandez, also known as “Tio,” 59, who was also associated with Galaxi Photo; and
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Jose Manuel Perez Cruz, 31, another person associated with Galaxi Photo, who allegedly sold and/or produced Green Cards, Social Security cards, driver’s licenses from multiple states, United States Passports, United States military identification documents and TWICs.
These four defendants are currently scheduled to go on trial within the next month, but it is anticipated that all four trials will be delayed until next year.
An indictment or criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
Miguel Rueda was one of five people arrested in June in relation to a document mill run out of a Huntington Park storefront called Pacific Mill that produced Green Cards, Social Security cards, driver’s licenses and TWICs. Previously in this case, Rueda’s brother, Francisco Casteneda Rueda, 48; Alejandro Gabriel Rivera, 34; and Armando Guerrero Vasquez, 47, previously pleaded guilty. A fifth defendant charged in relation to this case – Laura Balcazar, 38, of Lynwood – is a fugitive who absconded after being freed on bond in this case.
Operation Buzzkill is a CGIS-led project designed to dismantle document mills producing counterfeit TWICs and other bogus credentials. In this investigation, CGIS has joined with the Transportation Security Administration, the Los Angeles Police Department, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the State Department’s Diplomatic Security Services, the United States Secret Service and LA CLEAR.
Earlier this year, as part of the investigation, a San Fernando Valley man who operated a document mill in Sylmar pleaded guilty to unlawful possession and production of authentication features and admitted being a felon in possession of firearms and ammunition. Brian Alan Dunmore, 51, of Porter Ranch, is scheduled to be sentenced on December 19, at which time he faces up to 25 years in federal prison.
A South Los Angeles resident arrested in February has agreed to plead guilty to producing false identity documents. Ricardo Gama-Diaz, also known as “Ricardo Rios-Gama” and “Coy,” 51 is expected to enter his plea in December.
A Monterey Park man who was charged in April has also pleaded guilty. Hector Hugo Aquino, 46, who admitted producing Social Security cards and Green Cards, was sentenced in September to serve four months in federal prison, to be followed by three years of supervised release.
The criminal cases stemming from Operation Buzzkill are being prosecuted by Assistant United States Attorney Amanda M. Bettinelli of the Environmental and Community Safety Crimes Section.
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Two Hampton Roads Residents Indicted for Heroin Related DeathRead the Press Release
NEWPORT NEWS, Va. – Robert Alan Durkee, 58, of Hampton, and Julie Rae Rock, 38, of Newport News, have been indicted by a federal grand jury on charges of distribution of heroin and fentanyl resulting in death.
According to the indictment, on or about Nov. 17, 2015, Durkee and Rock distributed heroin and fentanyl to E.H. in Newport News, and E.H. died as a result of using the heroin.
Durkee and Rock each face a maximum penalty of life in prison if convicted. 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; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Richard W. Myers, Chief of Newport News Police, made the announcement after initial appearances before U.S. Magistrate Judge Douglas E. Miller. Assistant U.S. Attorneys Lisa R. McKeel and Megan M. Cowles are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16-cr-84.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Two Defendants Arrested on Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Tyrone Pennick, 40, of Amherst, NY, and Geneva Smith, 30, of Buffalo, NY, were arrested and charged by criminal complaint with conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine. The charge carries a minimum penalty of five years in prison and a maximum of 40 years.
Defendant Pennick is currently charged in a federal indictment for his role as the leader of a large-scale cocaine trafficking organization. In June 2014, Pennick was released under the condition of home incarceration.
Assistant U.S. Attorneys Timothy C. Lynch and Laura A. Higgins, who are handling the case, stated that according to the complaint, on November 17, 2016, the Erie County Sheriff’s Office conducted surveillance in the area of Pennick’s residence at 489 Emerson Drive in Amherst. Investigators observed a female, later identified as defendant Smith, leaving the residence carrying an open-top, tote style bag and entering a bronze colored Ford Flex.
Investigators continued to monitor the vehicle and noted that Smith began watching the surveillance vehicle closely in the rearview mirror. Smith subsequently began driving in an erratic manor at which point the defendant was observed reaching to the backseat area and moving the tote bag to the front seat. Investigators activated their emergency lights and conducted a traffic stop of the vehicle. Smith was detained and investigators removed what appeared to be two containers containing suspected cocaine from the tote bag.
A search warrant was then executed at Pennick’s residence at 489 Emerson Drive. Investigators recovered a metal press, digital scale, packaging material, a box of rubber gloves, a plastic bag containing disposable dust masks, a vacuum sealer, a vacuum sealed bag containing $49,990 in U.S. currency concealed in the dishwasher and a plastic bag containing suspected cocaine weighing approximately one ounce concealed in a box of oatmeal. Pennick was then arrested.
The complaint is the result of an investigation by the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Tulsa County Physician Paid $50,000 to Resolve Comprehensive Drug Abuse Prevention Act Allegations Related to Prescribing Controlled SubstancesRead the Press Release
United States Attorney Danny C. Williams, Sr. announced today that a Tulsa, Oklahoma, physician, Dr. Anoop Sangha, entered into a settlement agreement to pay $50,000 to resolve civil allegations that he violated the Comprehensive Drug Abuse Prevention Act of 1970, which regulates the manufacture and distribution of controlled substances.
According to the settlement agreement, the violations of the Act occurred between September 4, 2011 and February 16, 2012. The settlement resolves an action filed by the United States in Federal District Court on September 2, 2016, wherein Dr. Sangha was accused of forging numerous prescriptions for his personal use.
This case was handled by Assistant United States Attorney Marianne Hardcastle following an investigation by the Drug Diversion Unit of the United States Drug Enforcement Administration. If you are aware of any illegal prescription drug sales and distribution, contact the Drug Enforcement Administration at 1-877-792-2873.
The claims asserted by the government are allegations only, and there has not been any determination of liability.
Texas Man Pleads Guilty to Running Fraudulent Investment Companies and Obstructing Securities and Exchange Commission InvestigationRead the Press Release
A San Angelo, Texas, man pleaded guilty today to fraud and obstruction of justice charges in connection with two investment companies he ran that defrauded investors out of approximately $900,000 over a four-year period.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John R. Parker of the Northern District of Texas and Special Agent in Charge Thomas M. Class Sr. of the FBI’s Dallas Office made the announcement.
Stanley Jonathan Fortenberry, 50, pleaded guilty to two counts of mail fraud and one count of obstructing an official proceeding before U.S. Magistrate Judge D. Gordon Bryant Jr. of the Northern District of Texas. Sentencing will be scheduled at a later date.
As part of his guilty plea, Fortenberry admitted that he ran an investment company called Premier Investment Fund (Premier), which raised funds from investors for social media projects run by another company with ties to the country music industry. Fortenberry misled investors about the profitability of the company and about the destination of the investors’ funds. Fortenberry admitted that he diverted approximately half of investors’ funds into his own pocket and to pay the expenses of his fundraising operation.
Fortenberry also admitted that, from 2013 to 2014, he ran Wattenberg Energy Partners (Wattenberg), which raised funds for oil and gas drilling projects in northern Colorado. Fortenberry admitted that he set up the company in his son’s name because he was then under investigation by the Securities and Exchange Commission (SEC) for misusing the Premier investors’ funds. He used a network of salespeople to solicit individuals over the phone to invest in drilling projects. Fortenberry admitted that he spent the vast majority of the funds on himself and the company’s fundraising operation. In October 2014, at an administrative hearing with the SEC, Fortenberry falsely denied having control of or working for Wattenberg.
Fortenberry admitted that the total loss to victims of both schemes was $887,311.
As part of the department’s investigation into Wattenberg, Peter Szondy, 70, and Stanley Stephen Fortenberry, 24, both pleaded guilty and admitted to committing fraud while working for Wattenberg.
The FBI’s Dallas Office investigated the case. Trial Attorney William E. Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Sean Long of the Northern District of Texas are prosecuting the case. The SEC has provided substantial assistance in this case and referred this matter to the department.
The Fraud Section plays a pivotal role in the department’s fight against white collar crime around the country. Today’s guilty plea is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Tampa Man Sentenced in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Cedric Clark to eight years and six months in federal prison for his role in a stolen identity refund fraud scheme in the Tampa Bay area. As part of his sentence, the Court ordered him to pay restitution to the Internal Revenue Service in the amount of $1,933.862.37. Clark pleaded guilty on June 21, 2016.
According to court documents, between October 2010 and June 2013, Clark engaged in a fraud scheme involving the filing of false and fraudulent income tax returns in the names of living and deceased individuals. Clark and his co-conspirators received approximately $1.9 million in tax refund checks from the IRS. They had filed returns requesting refunds of almost $6 million.
This case was investigated by the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Stockton Loan Officer Sentenced for Mortgage FraudRead the Press Release
SACRAMENTO, Calif. —Mark F. Friend, 62, of Stockton, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to two years and four months in prison and ordered to pay $1,889,379 in restitution for conspiracy to commit bank fraud in relation to a mortgage fraud scheme, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between September 2006 and March 2007, while working for National City Mortgage, then a division of National City Bank, in Stockton, Friend arranged loans for borrowers that contained numerous falsehoods. He submitted false loan applications and other documents, and he made down payments on behalf of borrowers who did not have enough money, and then was repaid out of escrow after the loans were funded. The borrowers eventually stopped making payments on the loans, and National City Bank and other entities sustained losses amounting to $1,889,379.
Judge Burrell ordered Friend to self-surrender and begin his incarceration on January 13, 2017.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney John K. Vincent prosecuted the case.
Statement by Deputy Attorney General Sally Q. Yates on the Passing of U.S. Marshals Service Deputy Commander Patrick CarothersRead the Press Release
Deputy Attorney General Sally Q. Yates today released the following statement on the passing of U.S. Marshals Service Deputy Commander Patrick Carothers:
“Today the Marshal Service lost one of its best. I had the privilege of working with Deputy Commander Carothers in Atlanta for many years and he more than lived up to his reputation for being an inspiring leader and an exemplary public servant. Deputy Commander Carothers was dedicated to his mission, devoted to his team and heroic to his core. For those of us lucky enough to see him in action, he set an extraordinary example of valor and decency in service to the American people. Losing him today is a blow to our law enforcement family in Atlanta and across the country and it underscores the grave risks that law enforcement officers assume every day in order to keep us safe. Deputy Commander Carothers was a hero not only to his colleagues, but also to the family he cherished and adored. His wife and children, and all of his loved ones will be central to my thoughts and prayers during this difficult time. All of us at the U.S. Department of Justice owe it to them – and to the memory of Deputy Commander Carothers – to keep his spirit alive by continuing to fight for the values of security, peace and justice that animated his life and that will endure with his legacy."
Statement by Attorney General Loretta E. Lynch on the Passing of U.S. Marshals Service Deputy Commander Patrick CarothersRead the Press Release
Attorney General Loretta E. Lynch today released the following statement on the passing of U.S. Marshals Service Deputy Commander Patrick Carothers:
“I am deeply saddened by the tragic loss of U.S. Marshals Service Deputy Commander Patrick Carothers -- a devoted husband, a loving father and an outstanding public servant. Deputy Commander Carothers served the American people with fidelity and courage throughout his distinguished career. He stayed true to his oath to the last, laying down his life to keep his community safe and his neighbors secure. I know that his legacy will live on in the proud annals of the U.S. Marshals Service and in the memory of his fellow law enforcement officers from coast to coast. I join all the men and women of the U.S. Department of Justice in extending my thoughts and prayers to Deputy Commander Carothers’s wife, children and loved ones. We will honor his heroic sacrifice by continuing the work for which he so valiantly gave his life: the work of building a stronger, safer and more just United States.”
St. Francis Woman Sentenced for Child AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, woman convicted of Child Abuse was sentenced on November 7, 2016, by U.S. District Judge Roberto A. Lange.
Leonna Lynn Poorman, a/k/a Leona Lynn Poorman, age 29, was sentenced to 5 months in custody, followed by 2 years of supervised release with 5 months of home confinement, and a $100 special assessment to the Federal Crime Victims Fund.
Poorman was indicted by a federal grand jury on February 17, 2016. She pled guilty on August 16, 2016.
The conviction stemmed from an incident that occurred on February 8, 2015. On February 6, 2015, Poorman began drinking alcohol at a home near St. Francis, and she brought her five children, all under age seven, with her to the home. Poorman drank alcohol and partied at the home from February 6, 2015, to the morning of February 8, 2015. The children stayed in a back bedroom of the home and no adult remained sober to help care for them.
In the early morning of February 8, 2015, Poorman was intoxicated and went to sleep in the same bed with her three-month-old child. Her other four children were on the bed or on the floor sleeping. At approximately 9:00 A.M., Poorman found the three-month-old child deceased in the bed she was sharing with her. The Defendant had a blood alcohol content of .107% at approximately 10:00 A.M. that day.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Poorman was immediately turned over to the custody of the U.S. Marshals Service.
Southern Illinois Residents Charged with Methamphetamine OffensesRead the Press Release
Kiristien M. Joyner, 27, of Carbondale, and Marshall W. Duty, 58, of Dongola, were indicted on November 8, 2016, in a three-count superseding indictment charging methamphetamine violations, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Joyner and Duty are each charged with conspiracy to distribute methamphetamine. Joyner and Duty are each also charged with one count of unlawful distribution of methamphetamine.
The indictment alleges the offenses occurred between 2013 and October 3, 2016, in Union, Jackson and Williamson Counties. Joyner made her initial appearance in federal court on November 10, 2016. At a November 15, 2015, detention hearing, she was ordered held without bond pending a January 9, 2017, jury trial. Duty previously made his appearance in federal court.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The methamphetamine offenses carry a maximum penalty of up to 20 years imprisonment, to be followed by 3 years supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group and Drug Enforcement Administration. The Williamson County States Attorney’s Office and Illinois National Guard also assisted in the investigation.
Six Beaufort Men Indicted on Drug and Gun Trafficking ChargesRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
Columbia, South Carolina--------Acting United States Attorney Beth Drake, announced today that Brandon Singleton, age 32, Frank Clemons, age 36, Tyrone Williams, age 57, Naji Osborne, age 27, Mark Delaney, age 28, and Torrion Cooper, age 35 have been indicted for their roles in a drug and gun trafficking conspiracy operating in and around Beaufort, South Carolina. The indictment further charges that Brandon Singleton possessed firearms in furtherance of the drug trafficking. Additionally, Brandon Singleton and Tyrone Williams are charged with being felons in possession of firearms, given their previous convictions for crimes punishable by at least a year imprisonment. The government moved for detention of all six defendants pending trial pursuant to the Bail Reform Act. As of the date of the indictment, this investigation has resulted in the seizure of thirteen firearms, some of which were used in furtherance of drug trafficking, and over 500 grams of cocaine. On the conspiracy charges, Singleton faces a maximum possible sentence of 40 years incarceration and the other defendants face maximum possible sentences of up to 20 years incarceration. Defendants who are charged with being a felon in possession of firearms face a maximum possible sentence of 10 years incarceration. Defendants who are charged with using or carrying firearms in furtherance of drug trafficking activities face sentences of a minimum of 5 years incarceration up to a maximum of lifetime incarceration.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance and cooperation of the Beaufort County Sheriff’s Office and the 14th Circuit Solicitor’s Office in an effort to target the sale of cocaine and firearms. Assistant United States Attorney Emily Limehouse of the Charleston office is prosecuting the case.
The Acting United States Attorney stated that all charges in this indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
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Sioux Falls Man Sentenced for Assault Resulting in Substantial Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury was sentenced on November 14, 2016, by U.S. District Judge Roberto A. Lange.
Justin Stone Arrow, age 37, was sentenced to 15 months in custody, followed by 2 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Stone Arrow was indicted by a federal grand jury on April 13, 2016, for Assault with a Dangerous Weapon, Assault Resulting in Substantial Bodily Injury, and Child Abuse. He plead guilty to Assault Resulting in Substantial Bodily Injury on August 24, 2016.
In the early morning of March 10, 2016, Stone Arrow was drinking alcoholic beverages with his adult sister and a minor, age 13, at a home in the Milk’s Camp Community, Gregory County, South Dakota. An argument ensued between Stone Arrow and the minor, and Stone Arrow struck the minor in the face with his fists. Stone Arrow’s sister interrupted the altercation and began caring for the minor. The minor was taken to the Gregory County hospital, where he received four sutures for a laceration under his right eye.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Stone Arrow was immediately turned over to the custody of the U.S. Marshals Service.
Sandra Marks Sentenced on Mail Fraud, Money LaunderingRead the Press Release
CHARLOTTESVILLE, VIRGINIA – The former owner of a fortune-teller business located on Seminole Trail in Charlottesville was sentenced today in Federal court on charges that she committed mail fraud and laundered more than $1 million in money stolen from her victims, United States Attorney John P. Fishwick Jr. said today. In a separate hearing, the defendant’s husband pled guilty to similar charges today.
Sandra Stevenson Marks, a.k.a. “Catherine Marks,” 42, of Charlottesville, previously pled guilty to one count of mail fraud and one count of money laundering. Today in District Court, Sandra Marks was sentenced to 30 months in federal prison.
In a separate hearing today in Federal Court, Donnie Stephen Marks, 43, formerly of Charlottesville, pled guilty to an Information, charging him with one count of mail fraud and one count of money laundering. Both defendants have agreed to repay at least $1.2 million in restitution to the victims of the scheme.
“These defendants found victims who were at some of the lowest points of their lives and took advantage of that grief for their own financial gain,” United States Attorney Fishwick said today. “Today’s sentence shows the seriousness of the nature of this crime and I hope it brings some level of closure to the victims of this scheme.”
According to evidence presented at previous hearings by Assistant United States Attorney Ronald M. Huber, Sandra Marks and Donnie Marks operated the business “Readings by Catherine” on Seminole Trail in Charlottesville, which offered services such as palm readings, candle readings, tarot card readings, astrological readings and spiritual readings to clients. Sandra Marks provided direct customer services while Donnie Marks managed the affairs of the business.
Sandra Marks has admitted, through a statement of facts submitted to the court and signed by the defendant, that she enriched herself by telling her clients she was clairvoyant and able to see into the past and the future. Marks also said she told her clients she had a “gift from god” and was able to communicate with spirits and guides from god, including the “Prince of Illusion,” who relayed information to her about clients.
Sandra Marks further admitted that she would tell clients that she had learned from the spirits and guides that the client, and/or the client’s family, was suffering from a “curse” and a “dark cloud” that occurred in the past. Marks would tell clients they would need to make a sacrifice of large amounts of money and valuables, whereby she would bury the money and items in a box to be “cleansed.” Marks explained to her clients that the money and property would be returned once the “work” was complete. Additionally, Marks would tell the clients that the money and property would not be used for Marks’ own personal benefit.
Contrary to her representations to clients, Donnie Marks and Sandra Marks kept and used money and other valuables provided by their clients for their own personal use and enjoyment and that of their family. When Sandra and Donnie Marks had used all of a client’s money, Sandra and Donnie Marks would find new clients to fund the scheme, or tell old clients that additional money was required to continue her “work.”
The investigation of the case was conducted by U.S. Immigration and Custom Enforcement’s Homeland Security Investigations, the United States Postal Inspection Service, the United States Secret Service, the Virginia Attorney General’s Office, the Albemarle County Commonwealth’s Attorney’s Office and the Albemarle County Police Department. Assistant United States Attorney Ronald M. Huber prosecuted the case for the United States.
Sacramento Man Pleads Guilty to Sex Trafficking a MinorRead the Press Release
SACRAMENTO, Calif. — Zargham Bukhari, 22, of Sacramento, pleaded guilty today to sex trafficking of children, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, between February and April of 2014, Bukhari transported a 14-year-old victim to various motels and other locations in and around Sacramento to have sex with men for money. Bukhari would then take the money from the victim. Bukhari also gave the victim methamphetamine while he trafficked her.
This case is the product of an investigation by the Federal Bureau of Investigation Child Exploitation Task Force, a multijurisdictional task force composed of representatives from the FBI and the Sacramento Police Department. Assistant United States Attorney Michele Beckwith is prosecuting the case.
Bukhari is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on February 10, 2017. Bukhari faces a maximum statutory penalty of life years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Scam Targeting Local ResidentsRead the Press Release
United States Attorney Randolph J. Seiler reported today that local law enforcement authorities have been receiving reports of residents being targeted in a telephonic scam.
Unsuspecting citizens have been receiving telephone calls from persons claiming to be a police officer, clerk of courts personnel, and even a federal district court judge. The caller claims the citizen was supposed to report for jury duty in federal or state court, and failed to report as directed. The citizen is being told by the bogus caller that they must send money to a specified account or person in order to avoid being arrested.
U.S. Attorney Seiler wants citizens to know the claims being made in these calls are totally false and, if contacted, citizens should not send money to anyone as instructed in the fraudulent call.
If you feel you have been a target of this scam you should immediately contact the Rapid City Police Department at 605.394.4131 or the United States Marshal’s Service in Rapid City at 605.342.6331.
Rockdale Woman Sentenced to Fifty Years in Federal Prison for Sexual Exploitation of a ChildRead the Press Release
Today in Waco, 39-year-old Charlotte Horelica of Rockdale, TX, was sentenced to a total of 600 months in federal prison for sexual exploitation of a child and for distribution of child pornography announced United States Attorney Richard L. Durbin, Jr., and Texas Attorney General Ken Paxton.
During today’s sentencing hearing, United States District Judge Robert Pitman sentenced Horelica to 360 months in prison for the sexual exploitation of a child and 240 months in prison for distributing child pornography. Both sentences are to run consecutively. Judge Pitman also ordered that Horelica pay $10,000 to the Victims of Trafficking Fund and be placed on supervised release for a period of five years after completing her prison term.
On August 30, 2016, Horelica pleaded guilty to one count of sexual exploitation of a child and one count of distributing child pornography. By pleading guilty, Horelica admitted that beginning in March 2016, she permitted a minor to engage in sexually explicit conduct for the purpose of producing visual depictions of the conduct, knowing the depictions would be transported in interstate and foreign commerce. Horelica also admitted that she knowingly distributed images and videos depicting child pornography.
In May 2016, Rockdale authorities arrested Horelica after child pornography images were found on a phone in Horelica’s possession. A subsequent forensics examination of seized materials, including several cell phones belonging to the defendant, revealed the presence of child pornography. Horelica has remained in custody since her arrest.
This investigation was conducted by the Texas Attorney General’s Office – Child Exploitation Unit with the assistance of the Rockdale Police Department. Assistant United States Attorney Greg Gloff prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Ringleader of Bank Fraud Organization Sentenced to 12 Years in PrisonRead the Press Release
PHILADELPHIA – Shawn Hilliard, 30, of the Bronx, New York, was sentenced today to 12 years in prison for his role as a ringleader of a nationwide bank fraud organization which stole more than $1.3 million from customers’ accounts. In addition to the prison term, U.S. District Court Judge C. Darnell Jones, II, ordered 3 years of supervised release, $1.3 million in restitution, and an $800 special assessment.
“Hilliard and his co-conspirators created a nationwide bank fraud organization which corrupted numerous bank employees and convinced them to provide confidential customer account information, including bank account numbers, answers to security questions, and photos of signature cards. The impact of Hilliard’s crimes on his victims is profound and far reaching, as the victims may suffer long lasting consequences of this organization’s criminal activity,” said U.S. Attorney Zane David Memeger. “Today's sentence sends a clear message to those who might commit financial fraud that it will not be tolerated, and to those in positions of trust at our financial institutions, that they must do everything in their power to protect the security of their client’s confidential information."
“HSI aggressively pursues scam artists who defraud unsuspecting victims by stealing sensitive banking information for their own financial gain. Let this case serve as a reminder to all of the importance of closely monitoring their bank accounts and reporting any unauthorized or suspicious activity within those accounts to their banks as soon as they are detected,” said Marlon Miller, special agent in charge of HSI Philadelphia. “HSI remains committed to investigating criminals who perpetrate financial crimes like Mr. Hilliard, who, in this case, defrauded hundreds of victims across the United States. Today, Mr. Hilliard has been held accountable for his actions.”
Hilliard and his co-conspirators used a network of dozens of imposters to take over the compromised bank accounts and withdraw thousands of dollars in cash. Hilliard used the information provided by the corrupt bank employees to defeat the banks’ security measures. Hilliard and others then took road trips around the country to Chicago, Dallas, Miami, and elsewhere withdrawing funds from the compromised accounts. Hilliard and his co-conspirators employed drivers and handlers to transport the imposters from bank to bank and collect the stolen funds.
To date, ten members of the organization including two bank employees have pleaded guilty in federal court. Numerous other members of the organization have pleaded guilty in state court around the country.
The case was investigated jointly by the Department of Homeland Security, Homeland Security Investigations, the United States Secret Service, and the New Jersey Attorney General’s Office with assistance from the Philadelphia Police. It is being prosecuted by Assistant United States Attorney Robert Livermore.
Randolph Man Convicted by Jury of Defrauding DreamWorks by Falsely Claiming he Created Kung Fu PandaRead the Press Release
BOSTON – A Randolph man was convicted late today of wire fraud and perjury charges in connection with a scheme to defraud DreamWorks Animation SKG, Inc., by falsely claiming that the company stole from him the characters and story for its animated movie, Kung Fu Panda.
Jayme Gordon, 51, was convicted today by a federal juryon four counts of wire fraud and three counts of perjury. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for March 30, 2017.
Gordon filed a lawsuit as part of a fraud scheme designed to obtain a multi-million-dollar settlement from DreamWorks. To further his fraud and persuade DreamWorks to agree to a settlement, Gordon fabricated and backdated drawings of characters similar to those in Kung Fu Panda, lied repeatedly during his deposition and destroyed computer evidence.
Beyond the superficial similarities, the panda characters (pictured below) and story that Gordon created during the 1990s has very little in common with DreamWorks’ movie, Kung Fu Panda.
Gordon's Characters
DreamWorks' Po and Master Shifu
In early 2008, several months before the movie’s June 2008 release, Gordon saw a trailer for Kung Fu Panda. After seeing that trailer, Gordon revised his “Panda Power” drawings and story, which he renamed “Kung Fu Panda Power.” He made these revisions as part of his scheme, so that his work would appear to be more similar to the DreamWorks pandas he had seen in the trailer. In February 2011, Gordon filed a copyright infringement suit against DreamWorks in U.S. District Court inMassachusetts, and later that year, he proposed that DreamWorks agree to settle the suit by paying him $12 million. DreamWorks rejected that proposal, and the litigation continued for another two years.
During the course of the civil litigation, Gordon intentionally deleted relevant evidence on his computer that he was required to produce in discovery and lied during his civil deposition. Furthermore, Gordon fabricated and backdated sketches that served as support for his suit. The full nature of Gordon’s scheme came to light when DreamWorks discovered that Gordon had traced some of his panda drawings from a Disney Lion King coloring book (shown below).
1996 Disney Coloring Book
Gordon's 2000 Registration
Gordon’s other sketches, which were dated 1992 or 1993, were copied from this coloring book, which was not published until 1996, therefore demonstrating that Gordon drew these sketches after 1996 and backdated them. After DreamWorks discovered the tracing from the coloring book, Gordon agreed to dismiss his suit. By this point, however, DreamWorks had spent more than two years defending the fraudulent suit, at a cost of approximately $3 million.
At trial, Gordon testified that he had not traced his drawings from the coloring book. Instead, he claimed, Disney had copied his drawings and appeared to have based the character Timon, from the Lion King, on Gordon’s drawings.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and restitution. The charge of perjury provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Adam Bookbinder and Amy Harman Burkart of Ortiz’s Cybercrime Unit. The U.S. Attorney’s Office and FBI would like to thank DreamWorks for its assistance during the investigation of this case.
Prince George’s County Felon Pleads Guilty to Federal Robbery and Firearms ChargesRead the Press Release
Greenbelt, Maryland – Derrick Rondell Battle, age 43, of Bladensburg, Maryland, pleaded guilty today to armed commercial robbery, using and brandishing a firearm during a crime of violence and being a felon in possession of a firearm, related to three robberies he committed in September 2015.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Henry P. Stawinski of the Prince George’s County Police Department.
According to his plea agreement, Battle committed three armed robberies between September 21 and September 25, 2015. In each robbery Battle wore a mask and was armed with a black semi-automatic handgun, which he brandished at store employees.
Specifically, Battle robbed: a pharmacy in the 6400 block of Landover Road in Landover, Maryland on September 21, 2015, stealing $200; a discount store in the 6500 block of Annapolis Road in Landover Hills, Maryland on September 24, 2015, stealing $1,200; and a gas station in the 5800 block of Annapolis Road in Cheverly, Maryland, stealing $200.
As Battle fled the gas station, a strong wind blew the stolen money out of the bag and Battle stopped to collect the money. Responding police officers saw Battle in a nearby ravine and he was apprehended after a brief chase. Police officers recovered cash from Battle and within feet of where he was apprehended recovered the gun used in the robbery, additional cash and the jacket Battle wore during the robbery.
The gun was a .45 caliber semi-automatic handgun loaded with six .45 caliber rounds of ammunition. The total cash recovered was approximately $1,200.
Battle was prohibited from possessing a firearm or ammunition as a result of previous felony convictions.
Battle and the government have agreed that if the Court accepts the plea agreement Battle will be sentenced to 198 months in prison. U.S. District Judge Theodore D. Chuang has scheduled sentencing for January 19, 2017 at 2:00 p.m.
United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Menaka Kalaskar and Bryan E. Foreman, who are prosecuting the case.
President of Florida-Based Financial Firm Guilty of Money Laundering in $179 Million Sham Loan SchemeRead the Press Release
CHICAGO — The president of a Florida-based financial firm has pleaded guilty to a money laundering charge in connection with the sale of $179 million in sham loans to a Milwaukee investment company.
TIMOTHY G. FISHER was the president and chief operating officer of First Farmers Financial LLC when the company sold 26 non-existent loans to a Milwaukee investment firm for $179 million. The company submitted documents to the Milwaukee investment firm that falsely created the appearance that the loans had been issued to borrowers in Florida and Georgia and were guaranteed in part by the federal government. In fact, the sham loans, which purportedly had principal amounts ranging from $2.5 million to $10 million, did not exist. The Milwaukee firm, which purchased the loans as an investment vehicle for its clients, which included community banks, retirement plans, municipalities, and subdivisions in Illinois and elsewhere, suffered a loss of $179 million.
Fisher, 39, of Pasadena, Calif., pleaded guilty on Thursday to one count of money laundering. The conviction carries a maximum sentence of ten years in prison and a maximum fine of $900,000. U.S. District Judge Charles P. Kocoras set sentencing for May 4, 2017, at 9:45 a.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Jeffrey A. Monhart, Regional Director of the Chicago Regional Office of the U.S. Department of Labor, Employee Benefits Security Administration.
According to his plea agreement, Fisher created fictitious financial statements that were sent to the Milwaukee company. After receiving money from the Milwaukee firm, Fisher unlawfully engaged in monetary transactions with a portion of the fraudulently obtained funds, including a wire transfer of $450,000 of scheme proceeds. Fisher caused these proceeds to be transferred from First Farmers’ account in Florida to his personal bank account in California. He then transferred these funds to the bank account belonging to a business in Nevada in connection with an investment in that business.
First Farmers’ chief executive officer, NIKESH A. PATEL, has also been charged in connection with the fraud on the Milwaukee investment business. Patel allegedly submitted false statements to the U.S. Department of Agriculture to obtain certification in a USDA program that guarantees a percentage of loans issued to borrowers who improve the economic and environmental climate in rural communities. First Farmers, which has offices in Florida, Georgia and California, obtained USDA certification after Patel submitted the false statements about the company’s assets and officers, according to his indictment returned last year.
Patel, of Windermere, Fla., has pleaded not guilty to five counts of wire fraud. His next court appearance before Judge Kocoras is set for Dec. 6, 2016, at 9:45 a.m.
The government is represented by Assistant U.S. Attorneys Patrick King and Rick Young.
Palm Harbor Oncologist Convicted of Buying Unapproved Cancer Medications from Foreign Sources and Defrauding MedicareRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found D. Anda Norbergs (61, Palm Harbor) guilty of 17 counts of receipt and delivery of misbranded drugs, 12 counts of smuggling goods into the United States, 11 counts of health care fraud, and 5 counts of mail fraud. She faces a maximum penalty of 20 years in federal prison for each mail fraud and smuggling offense, 10 years’ imprisonment for each health care fraud count, and 3 years for each count of receipt and delivery of misbranded drugs. Her sentencing hearing is scheduled for February 16, 2017.
Norbergs was originally indicted on May 28, 2015. A second superseding indictment was returned on July 21, 2016.
According to testimony and evidence presented at trial, Norbergs, a licensed physician in Florida, was the head doctor, owner, and operator of East Lake Oncology (“ELO”), a cancer treatment clinic located in Palm Harbor. Beginning in at least May 2009, she ordered, and directed others at ELO to order, drugs from foreign, unlicensed distributors, including Quality Specialty Products (“QSP”). The drugs sold to ELO by QSP and other foreign, unlicensed distributors were not FDA-approved. In fact, QSP had reportedly sold counterfeit versions of a chemotherapy medication that did not have the key ingredient in the drug. Norbergs learned of this news from other sources yet continued to have QSP drugs administered to patients. When QSP shut down, Norbergs switched to buying drugs from another foreign, unlicensed distributor. Many of the drugs were shipped directly to ELO from a location outside the United States, usually from the United Kingdom. The packaging and documents shipped with the drugs showed that they were manufactured and packaged for distribution in foreign countries, such as Turkey, India, and Germany. Additionally, some of the packaging for the drugs was in foreign languages, without any English translation.
Unbeknownst to patients, these misbranded drugs were then administered at ELO. After administering these drugs to patients, ELO submitted claims for reimbursement to Medicare. In submitting those claims, Norbergs falsely represented that the FDA-approved versions of the drugs had been administered, when she knew that unapproved and misbranded versions had been given to patients. In so doing, Norbergs intended to generate profits from the difference between the Medicare reimbursement rates for the FDA-approved drugs and the discounted prices of the misbranded versions of those drugs purchased from foreign distributors.
This case was investigated by U.S. Department of Health and Human Services – Office of Inspector General and the U.S. Food and Drug Administration. It is being prosecuted by Assistant United States Attorneys Adam M. Saltzman and Jay Trezevant.
Ohio Woman Sentenced to 78 Months for Possessing with Intent to Distribute Heroin and Cocaine and for Firearm OffenseRead the Press Release
COVINGTON, Ky. — A Milford, Ohio woman, who possessed heroin and crack cocaine with the intent to distribute them, and used a firearm to further her drug trafficking, was sentenced today to 78 months in federal prison.
U.S. District Court Judge Amul Thapar sentenced 28 year-old Courtney Kolb and ordered her to serve 10 years of supervised release following her sentence. Under federal law, Kolb must serve at least 85 percent of her prison sentence.
In August 2016, Kolb pleaded guilty and admitted that she had quantities of heroin and crack cocaine that she intended to distribute in the Greater Cincinnati area and possessed a firearm in order to protect her drugs and drug proceeds.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, jointly announced the sentence.
The investigation was conducted by the Ft. Thomas Police Department and the Drug Enforcement Administration. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Tony Bracke.
North Dakota Man Convicted of Government Property TheftRead the Press Release
A North Dakota resident was convicted today in connection with the theft of copper wire from Kandahar Airfield, Afghanistan, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Christopher Myers of the District of North Dakota.
Benjamin Guidry, 41, was convicted after a jury trial of theft of government property. Sentencing has been set for March 20, 2017.
In February 2013, Guidry was working for a local Afghan company. The evidence at trial demonstrated that he solicited two civilian contractors at Kandahar Airfield to obtain various materials for him in exchange for cash. The contractors reported the defendant to the U.S. Army Criminal Investigations Command (Army CID) at Kandahar Airfield.
With the assistance of the U.S. Air Force and others, Army CID set up a sting operation. According to the evidence presented at trial, as part of the sting operation, Guidry offered one of the contractors $4,000 in exchange for stolen spools of copper wire worth approximately $54,000. Guidry was apprehended after leaving the Air Force compound with the copper wire.
Army CID investigated the case. Trial Attorneys Frank Rangoussis and Ann Marie Ursini of the Criminal Division’s Human Rights and Special Prosecutions Section prosecuted the case.
New York man sentenced for unlawful possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Tyler M. Purvis-Mitchell, 22, of Albany, New York was sentenced to 19 months in prison for unlawfully possessing a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Purvis-Mitchell selected a firearm from Cashland II Pawn Shop and coordinated to have another individual purchase the firearm for him. That individual falsely represented that she was the actual buyer of the firearm and used money from Purvis-Mitchell to purchase the firearm. He pled guilty to one count of “Conspiracy to Provide a False Statement During the Purchase of a Firearm” in July 2016.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. District Judge Irene M. Keeley presided.
Mission Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Frank White Thunder, age 29, was indicted on May 17, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 8, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a mandatory minimum of 5 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
On April 29, 2008, White Thunder was convicted of Abusive Sexual Contact. As a result of his conviction, he is required to register as a sex offender. It is alleged that between April 24, 2016, and May 17, 2016, White Thunder, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under Federal Law, failed to properly register as a sex offender.
The charge is merely an accusation and White Thunder is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
White Thunder was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Medical Doctor Convicted of Federal ‘Structuring’ Charges for Making Cash Deposits to Avoid Federal Reporting RequirementsRead the Press Release
LOS ANGELES – A Los Angeles doctor has been convicted of federal “structuring” charges for making cash deposits totaling nearly a half million dollars that were designed to circumvent federal reporting requirements.
Washington Bryan II, 48, of Westwood, was found guilty yesterday afternoon by a jury in United States District Court.
At the conclusion of a three-day trial, the jury found Bryan guilty of 29 counts of structuring, finding that he made a series of illegal cash deposits totaling approximately $478,000 between October 2011 and January 2013.
Bryan made deposits of less than $10,000 into four separate accounts for the purpose of preventing banks from reporting the deposits to the federal government, which is required for every cash transaction of more than $10,000. For each of the 29 counts, Bryan made cash deposits into multiple bank accounts on the same day – sometimes within minutes of each other – that added up to more than $10,000.
The jury learned that Bryan received a letter in 2007 from Wachovia Bank informing him of the reporting requirement and alerting him that his pattern of currency deposits at the time appeared to be violating federal law.
Federal prosecutors presented evidence that Bryan structured the cash deposits for the purpose of concealing income he received from thousands of prescriptions that he issued for narcotic painkillers and HIV medications out of his Brentwood office.
The evidence at trial showed that Bryan was disciplined by the Medical Board of California for excessively prescribing narcotic medications, including OxyContin, and place on three years of probation. The cash structuring began after Bryan was placed on probation and while he continued to routinely prescribe high dosages of painkillers to patients – most of whom paid $500 in cash each time they visited Bryan’s Brentwood office and obtained prescriptions, sometimes without ever seeing the doctor.
“The federal structuring statute is part of a comprehensive anti-money laundering program enacted to expose the large profits that can be generated by criminal activity,” said United States Attorney Eileen M. Decker. “As this conviction demonstrates, criminals cannot escape punishment by arranging financial transactions to avoid bank reporting requirements.”
“Going to two or three banks in the same day, usually just minutes apart, to conduct a transaction that could have been completed at one bank has no benign explanation,” stated IRS Criminal Investigation’s Acting Special Agent in Charge, Anthony J. Orlando. “IRS Criminal Investigation is committed to unraveling complex financial transactions where individuals attempt to conceal the true source of their money.”
As a result of yesterday’s guilty verdicts, Bryan faces a statutory maximum sentence of 145 years in federal prison when he is sentenced by United States District Judge R. Gary Klausner on February 27.
The investigation into Bryan was conducted by IRS Criminal Investigation, the Drug Enforcement Administration, the Department of Health and Human Services – Office of Inspector General, the Department of Defense – Defense Criminal Investigative Service, the California Department of Justice and the Los Angeles Police Department.
This is case is being prosecuted by Assistant United States Attorneys Damaris M. Diaz and William Rollins of the General Crimes Section and Assistant United States Attorney Mark Aveis of the Major Frauds Section.
Mechanics Falls Woman Sentenced to 30 Days in Tax CaseRead the Press Release
Contact: James W. Chapman, Jr.
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Amanda Ouellette, 38, of Mechanics Falls, Maine was sentenced today in U.S. District Court by Judge George Z. Singal to 30 days in prison and two years of supervised release for failing to account for and pay over federal employment taxes. She was also ordered to pay $114,488 in restitution. She pleaded guilty on July 12, 2016.
According to court records, from 2008 to 2013, Ouellette operated Daddy O’s, a restaurant in Oxford, Maine, and paid wages on a regular basis to several employees. She withheld federal income and FICA taxes from her employees’ gross pay, but from 2009 through 2013, she failed to file quarterly federal income tax returns and pay over the taxes she withheld to the Internal Revenue Service (“IRS”), as required.
The investigation was conducted by the Internal Revenue Service, Criminal Investigation.Manhattan U.S. Attorney Announces Extradition of International Drug Traffickers for Their Involvement in Conspiracy to Import Narcotics into the United StatesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and William R. Sherman, Special Agent in Charge of the San Diego Division of the U.S. Drug Enforcement Administration (“DEA”), today announced that ROBERTO PONCE-ROCHA was extradited from Colombia where he had been arrested for charges arising out of his leadership role in a drug trafficking conspiracy involving the transportation of large-scale quantities of cocaine, heroin, and methamphetamine into the United States. As part of the DEA’s investigation of PONCE-ROCHA, which began in or around 2013, law enforcement authorities in the United States and abroad have seized thousands of kilograms of cocaine and other narcotics. PONCE-ROCHA, a Mexican citizen, arrived in the Southern District of New York yesterday, and was presented today in Manhattan federal court before U.S. Magistrate Judge Gabriel W. Gorenstein.
Previously, on or about May 24, 2016, two co-conspirators charged in the same Superseding Indictment, Juan Caicedo-Zuniga and Adan Munoz-Cordoba, arrived in the Southern District of New York following their extradition from Panama. Caicedo-Zuniga and Munoz-Cordoba, who are both Colombian citizens, were arrested on charges arising out of their participation in some of the same narcotics transactions organized and facilitated by PONCE-ROCHA.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Roberto Ponce-Rocha was for years a leader of a drug trafficking organization that moved thousands of kilograms of cocaine from Colombia to countries around the world, including to the United States. Thanks to the tireless efforts of the DEA and its international counterparts, Ponce-Rocha will now face justice in a United States court.”
DEA SAC William R. Sherman said: “The extradition of these alleged international drug traffickers sends a clear message to those who are thinking about endangering the citizens of our country with these potentially deadly drugs: your greed will get you an all expenses paid trip to the United States and a nice long stay in a federal detention facility.”
According to the allegations contained in the Superseding Indictment as well as statements made in Court:[1]
From at least in or around July 2013 through in or around January 2016, PONCE-ROCHA was a leader in a large-scale international narcotics trafficking conspiracy based in Central and South America that used various methods, including commercial shipments, drivers, and couriers to move narcotics around the world, and to import narcotics into the United States. PONCE-ROCHA was involved in the transportation of cocaine, heroin, and methamphetamine across the U.S.-Mexico border, as well as the shipment of large-scale quantities of cocaine from Colombia to countries throughout the world, including the United States. Caicedo-Zuniga and Munoz-Cordoba conspired with PONCE-ROCHA to import narcotics into the United States and other countries.
PONCE-ROCHA was arrested by Colombian authorities on or about March 20, 2016, in Colombia.
* * *
PONCE-ROCHA, 55, is charged in one count of conspiring to distribute at least five kilograms of cocaine, at least one kilogram of heroin, and at least 500 grams of methamphetamine, knowing that such substances would be imported into the United States. That charge carries a mandatory minimum term of 10 years in prison and a maximum penalty of life in prison. The statutory minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. The case is assigned to U.S. District Judge Jesse M. Furman.
Mr. Bharara praised the DEA for its work in the investigation. Mr. Bharara also expressed his appreciation to the DEA Special Operations Division, Homeland Security Investigations San Diego, United States Customs and Border Protection San Diego, the Fontana California Police Department, the Policia Nacional de Panama Unidad de Investigaciones Sensitivas (UEIS), the Colombian National Police Direccion de Investigaciones Criminal e INTERPOL (DIJIN), the Costa Rica Policia Control de Drogas (PCD), the Republica Dominicana Direccion Nacional de Control de Drogas (DNCD), and the Spanish Guardia Civil for their assistance in the investigation.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys James M. McDonald, Kimberly J. Ravener, and David Zhou are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
US v. Roberto Ponce-Rocha et al. S1 Indictment.pdf
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment, and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Mancelona Man Sentenced to Seventeen and A Half Years in Federal Prison for Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN – Thomas Arlan Evans, 55, of Mancelona, Michigan was sentenced today to 210 months (17.5 years) in federal prison for possessing child pornography, U.S. Attorney Patrick Miles announced. In addition to the prison term, Chief U.S. District Judge Robert Jonker imposed a seven-year term of supervised release that will commence once Evans is released from imprisonment. Evans will also be required to register as a sexual offender.
Evans pled guilty on July 15, 2016, to possessing child pornography. Evans came to the attention of law enforcement in August 2015 in connection with a domestic-abuse investigation. Police subsequently executed a search warrant at Evans’ home, where they seized a variety of electronic media containing more than 19,000 images and dozens of videos of child pornography. The material depicts victims as young as toddler-aged children, and a number of the images and videos depict sadistic sexual assaults on very young and vulnerable children. Further investigation revealed that Evans had recently had access to a child, and two additional victims disclosed that Evans sexually abused them when they were children.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The Federal Bureau of Investigation (FBI) and the Antrim County Sherriff’s Office investigated the case. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
END
Man Sentenced to 22 Years in Prison for Production and Possession of Child PornographyRead the Press Release
SAN JUAN, P.R. - Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico, announced today that United States District Judge Pedro A. Delgado sentenced Noel Aquino Florenciani to serve a term of imprisonment of 22 years followed by 10 years of supervised release. On April 7, 2016, Aquino-Florenciani pled guilty to one count of production of child pornography and one count of possession of child pornography, following an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
In December, 2015, the defendant was charged for production and possession of child pornography. The evidence in this case revealed that the defendant sexually abused and/or engaged in illicit sexually explicit conduct with at least one male minor and documented his sexual abuse by making visual depictions of such conduct. The defendant had also used peer-to-peer file sharing program and had downloaded child pornography using his laptop and phones. This evidence was discovered during the execution of a search warrant by Homeland Security Investigations agents during which a laptop computer and three cellular phones were seized.
“Justice was done today. This sentence should serve to reassure the public that we are paying close attention to the well-being of our children, and that we will spare no expense to take child predators off the streets,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “All child sexual predators will be held accountable for the unspeakable crimes they commit and the harm they cause to their victims and their families.”
Project Safe Childhood is an initiative of the Department of Justice aimed at preventing the abuse and exploitation of children by the use of digital cameras, computers and other digital and electronic media.
The criminal prosecution was handled by Assistant U.S. Attorney Elba Gorbea.
Madison Man Pleads Guilty to Conspiring to Defraud the VARead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that David B. Watson, Sr., 66, of Madison, Maine pled guilty today in U.S. District Court to conspiring to defraud the U.S. Department of Veterans Affairs (VA).
According to court records, the defendant conspired with his daughter-in-law to illegally obtain for her VA compensation benefits. Watson submitted documents to the VA on her behalf, falsely claiming she had suffered from mental disabilities that were connected to her service in the U.S. Army and told her how she should falsely describe her mental condition to VA doctors.
Watson faces up to five years in prison and a $250,000 fine. He will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Criminal Investigation Division of the VA Office of the Inspector General.
Lincoln Man Sentenced for Misprision of a FelonyRead the Press Release
United States Attorney, Deborah R. Gilg, announced that on November 18, 2016, Cody M. Lacefield, 22, of Lincoln, was sentenced to three years on probation for misprision of a felony. The three-year probation term includes 90 days of home confinement. Lacefield was also ordered to pay a $100 special assessment.
The charge arose from an investigation into photos posted to Facebook by three friends/associates of Lacefield, in which the friends or associates were holding firearms belonging to Lacefield. All three of these persons were marijuana users, making it unlawful for them to possess firearms. When Lacefield was contacted by Lincoln Police Department officers, he admitted that one friend had handled his firearms but said he did not know the friend was prohibited from possessing a firearm. At that time, Lacefield failed to notify the officers that two other marijuana-using associates had also had Lacefield’s firearms in their possession.
This case was investigated by the Lincoln Police Department.
Lake County, Indiana, Sheriff and Portage, Indiana, Mayor Indicted Separately on Public Corruption ChargesRead the Press Release
U.S. Attorney for the Northern District of Indiana David Capp announced today the return of two public corruption indictments; one naming Lake County Sheriff John Buncich and the other naming Portage Mayor James Snyder.
Buncich, his chief deputy, Timothy Downs, and William Szarmach were named in a multi-count indictment alleging a deprivation of honest services and receipt of illegal money in connection with towing contracts in Lake County.
Buncich is the Lake County Sheriff. Buncich earlier served as sheriff from 1994-2002, and was re-elected in 2010 and again in 2014. Pursuant to a Lake County ordinance, the sheriff has exclusive authority to determine what entity would do any towing as required by the sheriff’s department. Downs is the chief in the Lake County Sheriff’s Department, the second person in command, having been appointed to that position by Buncich. Szarmach owns and operates CSA Towing, located at 2599 DeKalb Street, Lake Station, Indiana.
The indictment alleges that from February 2014 continuing into October 2016, Buncich, Downs and Szarmach devised a scheme to deprive the citizens of Lake County of their right to the honest services of the sheriff’s office. The scheme was designed to enrich Buncich personally and his campaign committee, known as Buncich Boosters. The indictment details a number of checks and cash payments, often collected by Downs, from Szarmach and an Individual A in exchange for Buncich awarding county towing business and towing in the city of Gary for ordinance violations. Individual A is the owner of a tow truck business who voluntarily came forward and cooperated with the United States during the course of this investigation.
Buncich is also charged individually with a violation of the federal bribery statute. Specifically, Buncich is alleged to have corruptly solicited, demanded and received over $25,000 in cash and $7000 in checks in exchange for favorable actions by Buncich regarding the towing contracts.
The second indictment names Portage Mayor James Snyder and John Cortina. Snyder was first elected as mayor in 2011 and was re-elected to a second four-year term in 2015. Cortina owns and operates a towing business, Kustom Auto Body, 5409 US Highway 6 in Portage.
Snyder and Cortina are both charged with a violation of the federal bribery statute. Snyder is alleged to have corruptly solicited and received two checks totaling $12,000 from Cortina and Individual A (same individual above), in exchange for a towing contract in the city of Portage, Indiana. Cortina is charged with corruptly offering those checks to Snyder.
Snyder is also charged with a second violation of the federal bribery statute. That count alleges that between Jan. 1, 2012 and Jan. 10, 2014, Snyder corruptly solicited and agreed to accept a bank check in the amount of $13,000 in connection with Portage Board of Works contracts, a Portage Redevelopment Commission project and other consideration.
The final charge against Snyder alleges obstruction of the internal revenue laws. This count sets forth an alleged scheme, undertaken by Snyder between January 2010 and April 2013, to obstruct and impede the Internal Revenue Service’s (IRS) collection of personal taxes he owed and payroll taxes owed by his mortgage business, First Financial Trust Mortgage LLC. Snyder is alleged to have diverted funds away from FFTM to a sole proprietorship he created and submitted three forms to the IRS which failed to disclose, among other things, the existence of the sole proprietorship and its bank account – all during a time when the IRS was attempting to collect the aforementioned tax debt.
“These investigations are not over,” said U.S. Attorney Capp. “Our public corruption team will continue its work, particularly into the towing contracts in both Lake and Porter counties.”
Anyone with information related to these public corruption charges is encouraged to call the FBI at 219-769-3719.
The U.S. Attorney’s Office emphasized that an indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
These indictments were the result of an extensive, ongoing investigation conducted by the FBI and IRS, Criminal Investigation Division. Assistance was provided throughout by the Indiana State Police. These indictments will be handled in the U.S. Attorney’s Office by Assistant U.S. Attorneys Philip C. Benson, Gary T. Bell and Jill R. Koster.
Lake County Sheriff John Buncich and Portage Indiana Mayor James Snyder Indicted Separately on Public Corruption ChargesRead the Press Release
HAMMOND – United States Attorney David Capp announced today the return of two public corruption indictments; one naming Lake County Sheriff John Buncich and the other naming Portage Mayor James Snyder.
Buncich, his chief deputy Timothy Downs, and William Szarmach were named in a multi-count indictment alleging a deprivation of honest services and receipt of illegal money in connection with towing contracts in Lake County.
John Buncich is the Lake County Sheriff. Buncich earlier served as sheriff from 1994-2002, and was re-elected in 2010 and again in 2014. Pursuant to a Lake County ordinance, the sheriff has exclusive authority to determine what entity would do any towing as required by the sheriff’s department. Downs is the Chief in the Lake County Sheriff’s Department, the second person in command, having been appointed to that position by Buncich. Szarmach owns and operates CSA Towing, located at 2599 DeKalb Street, Lake Station, Indiana.
The indictment alleges that from February 2014 continuing into October 2016, Buncich, Downs and Szarmach devised a scheme to deprive the citizens of Lake County of their right to the honest services of the sheriff’s office. The scheme was designed to enrich Buncich personally and his campaign committee, known as Buncich Boosters. The indictment details a number of checks and cash payments, often collected by Downs, from Szarmach and an Individual A in exchange for Buncich awarding county towing business and towing in the City of Gary for ordinance violations. Individual A is the owner of a tow truck business who voluntarily came forward and cooperated with the United States during the course of this investigation.
Buncich is also charged individually with a violation of the federal bribery statute. Specifically, Buncich is alleged to have corruptly solicited, demanded and received over $25,000 in cash and $7000 in checks in exchange for favorable actions by Buncich regarding the towing contracts.
The second indictment names Portage Mayor James Snyder and John Cortina. Snyder was first elected as mayor in 2011 and was re-elected to a second four-year term in 2015. Cortina owns and operates a towing business, Kustom Auto Body, 5409 US Highway 6 in Portage.
Snyder and Cortina are both charged with a violation of the federal bribery statute. Snyder is alleged to have corruptly solicited and received two checks totaling $12000 from Cortina and Individual A (same individual above), in exchange for a towing contract in the City of Portage. Cortina is charged with corruptly offering those checks to Snyder.
Snyder is also charged with a second violation of the federal bribery statute. That count alleges that between January 1, 2012 and January 10, 2014, Snyder corruptly solicited and agreed to accept a bank check in the amount of $13,000 in connection with Portage Board of Works contracts, a Portage Redevelopment Commission project and other consideration.
The final charge against Snyder alleges obstruction of the internal revenue laws. This count sets forth an alleged scheme, undertaken by Snyder between January 2010 and April 2013, to obstruct and impede the IRS’s collection of personal taxes he owed and payroll taxes owed by his mortgage business, First Financial Trust Mortgage, LLC. Snyder is alleged to have diverted funds away from FFTM to a sole proprietorship he created, and submitted three forms to the IRS which failed to disclose, among other things, the existence of the sole proprietorship and its bank account – all during a time when the IRS was attempting to collect the aforementioned tax debt.
United States Attorney Capp stated, “These investigations are not over. Our public corruption team will continue its work, particularly into the towing contracts in both Lake and Porter counties.”
Anyone with information related to these public corruption charges is encouraged to call the FBI at 219-769-3719.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
These indictments were the result of an extensive, ongoing investigation conducted by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation Division. Assistance was provided throughout by the Indiana State Police. These indictments will be handled in the United States Attorney’s Office by Assistant United States Attorneys Philip C. Benson, Gary T. Bell and Jill R. Koster.
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Illinois Man Sentenced to 40 Months in Federal Prison for Attempting to Provide Material Support to ISILRead the Press Release
Mohammed Hamzah Khan, 21, of Bolingbrook, Illinois, was sentenced to 40 months in federal prison and 20 years supervised release, for attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, by attempting to travel overseas to Syria to join ISIL.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Zachary T. Fardon for the Northern District of Illinois and Special Agent in Charge Michael J. Anderson of the FBI’s Chicago Field Office.
U.S. District Judge John J. Tharp Jr. imposed the 40-month prison term and ordered that it be followed by 20 years of intensive supervised release. Among the special terms of supervised release, Khan must participate in a mental health treatment program; consent at any time to a search by a probation officer or designated law enforcement official of his home, property and electronic communication devices in his possession and control; attend violent extremism counseling; and comply with the requirements of a computer monitoring program, which includes the installation of computer-monitoring software on all devices in Khan’s possession and control that are capable of accessing the Internet.
Pursuant to the plea agreement, Khan agreed to fully and truthfully cooperate in any matter in which he is called upon by the U.S. Attorney’s Office for the Northern District of Illinois.
Khan, a U.S. citizen from southwest suburban Bolingbrook, has been detained in federal custody since his arrest on Oct. 4, 2014, at O’Hare International Airport in Chicago, Illinois. Khan pleaded guilty to these charges in 2015. According to his plea agreement, beginning no later than about February 2014, Khan used the internet to obtain introductions to ISIL members in Syria and to assist him with traveling there to join the terrorist group. Khan admitted to then speaking with ISIL members to coordinate the logistics of his admission into ISIL-controlled territory.
Khan further admitted in the plea agreement that he knew ISIL had been designated by the U.S. as a foreign terrorist organization. Khan intended to work in Syria under the direction and control of ISIL, and to be under the requirement to take any assignment ISIL gave him.
The case was investigated by the FBI-led Joint Terrorism Task Force (JTTF). The Chicago JTTF is comprised of FBI special agents, the Chicago Police Department officers and representatives from an additional 20 federal, state and local law enforcement agencies. U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement Homeland Security Investigations, and the Illinois State Police provided significant assistance in the investigation.
This case was prosecuted by Assistant U.S. Attorneys Matt Hiller, Angel Krull and Sean Driscoll of the Northern District of Illinois, and Trial Attorney Michael Dittoe of the National Security Division’s Counterterrorism Section.
Ice Arrests 2 Ponce Area Men on Child Exploitation ChargesRead the Press Release
SAN JUAN, Puerto Rico – United States Magistrate Judge Bruce McGiverin authorized a criminal complaint against 34 year-old William Javier Vega-Valentín, and 26 year-old Carlos Manuel Borrero-Vélez, both residents of Aristides Chavier public housing project, charging them with child pornography and child exploitation crimes, announced United States Attorney Rosa Emilia Rodríguez-Vélez. U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), working jointly with the Puerto Rico Police Department’s (PRPD) Ponce Sexual Crimes Division, conducted the investigation that led to the arrests.
Vega-Valentín was charged with production of child pornography, while Borrero-Vélez was charged in a separate criminal complaint with attempted production of child pornography and sexual enticement of a minor. They were arrested at their respective residences during the execution of a federal search warrant by HSI special agents. According to the charging documents, Borrero-Vélez, a.k.a. “Carlito,” and Vega-Valentín made sexually explicit approaches to a 14-year-old minor identified as “MM” and requested sexually explicit images and videos from the minor. According to the Affidavit in Support of the Criminal Complaint, Vega-Valentín works as a sports youth leader at the Aristides Chavier public housing project.
“The sexual exploitation of vulnerable individuals will not be tolerated. Our prosecutors and law enforcement partners will vigorously investigate and prosecute the abuse that these victims suffered at the hands of these offenders. The children of Puerto Rico deserve no less,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico.
“Child exploitation in all its forms is a very serious crime. HSI will continue investigating and arresting those who think they can victimize our children and get away with it,” said Ricardo Mayoral, special agent in charge of HSI. “These allegations are especially disturbing given the position of trust one of these defendants occupied. Identifying people who violate their positions of trust by contributing to the exploitation of children is a top priority for HSI. Anyone who targets children for sexual exploitation should also consider themselves a target by HSI and by our law enforcement partners regardless of who they are. We have an obligation to protect those most vulnerable in our society who cannot protect themselves.”
HSI encourages the public to call the toll free number 1-800-981-3030 or (787) 729-6969 to report any information that may lead to the identification and rescue of additional victims regarding this case.
Both men are scheduled to appear before U.S. Magistrate Judge McGiverin today for their initial appearances, after which they will be transferred to the Guaynabo Metropolitan Detention Center awaiting their respective detention hearings.
Special Assistant U.S. Attorney Cristina Caraballo is prosecuting the case. If convicted defendant faces a mandatory minimum term of 15 years’ incarceration up to a maximum term of life in prison. A criminal complaint contains only charges and is not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty.
This investigation was conducted under HSI’s Operation Predator, an international initiative to protect children from sexual predators. Since the launch of Operation Predator in 2003, HSI has arrested more than 12,000 individuals for crimes against children, including the production and distribution of online child pornography, traveling overseas for sex with minors, and sex trafficking of children. In fiscal year 2014, more than 2,300 individuals were arrested by HSI special agents under this initiative and more than 1,000 victims identified or rescued.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing impaired users can call TTY 802-872-6196. Suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST.
For additional information about wanted suspected child predators, download HSI’s Operation Predator smartphone app or visit the online suspect alerts page. HSI is a founding member and current chair of the Virtual Global Taskforce, an international alliance of law enforcement agencies and private industry sector partners working together to prevent and deter online child sexual abuse.
Howes Man Indicted for Malicious MischiefRead the Press Release
United States Attorney Randolph J. Seiler announced that a Howes, South Dakota, man has been indicted by a federal grand jury for Malicious Mischief.
Lawrence Parker, III, age 25, was indicted on November 8, 2016. He appeared before U.S. Magistrate Judge Mark Moreno on November 10, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 4, 2016, at Eagle Butte, Parker willfully and maliciously damaged the screen on an Automated Teller Machine.
The charge is merely an accusation and Parker is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Parker was released on bond pending trial. A trial date has not been set.
Hawaii Couple Sentenced for Tax Violations Resulting in Non-Payment of over $4 Million in TaxesRead the Press Release
HONOLULU -- United States District Judge Derrick K. Watson yesterday sentenced Calvin Kim, 55, and Chun Cha Kim, 64, husband and wife to 36 and 12 months in prison, respectively, for violations of federal tax laws. Calvin Kim pleaded guilty to conspiring to defraud the United States by dishonest and deceitful means for the purpose of impeding, impairing, obstructing, and defeating the lawful functions of the IRS in the assessment and collection of federal income taxes, while Chun Cha Kim pleaded guilty to willfully failing to pay taxes for the years 1999-2012.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that Judge Watson also ordered Calvin Kim and Chun Cha Kim to pay restitution in the amounts of $1,969,463 and $1,937,267, respectively, which represent all back taxes and penalties. Criminal fines of $250,000 and $100,000 were also imposed on Calvin Kim and Chun Cha Kim, respectively. In addition, both defendants agreed to the imposition of a fraud assessment by the IRS, which may amount to an additional civil penalty of $3 million. According to information produced to the court, the Kims already have paid more than $4 million in back taxes and interest.
According to documents filed with the court, Mr. and Mrs. Kim operated two companies which sold heating pads and other products. In October 2000, they became followers of so-called "tax protestors" and decided not to file a valid tax return from then till May 2014. The court documents reflect that from 2005 to 2012 alone, the tax returns of the Kims’ businesses, of which they were then the sole shareholders, showed payments ranging from $418,238 to $971,983 for Calvin Kim for each year, and $271,564 to $1,000,562 for Chun Cha Kim, resulting in taxes owed for each of those years ranging from $133,009 to $325,375 for him and $83,828 to $335,378 for her.
The case was investigated by the Internal Revenue Service - Criminal Investigation. The prosecution has been handled by Assistant U.S. Attorney Marshall Silverberg.
Gangster Disciple Sentenced to 15 Years in Federal PrisonRead the Press Release
Memphis, TN – An armed career criminal andmember of the Gangster Disciples has been sentenced to 15 years in federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, Arthur Alford, aka "Snoop," 35, of Ripley, Tennessee, unlawfully possessed a firearm, ammunition and drugs during the summer of 2015.
In December 2014, special agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Tennessee Bureau of Investigation (TBI) began working with local law enforcement officials in Lauderdale County to prosecute crimes committed by a group of individuals who were identified as members of street gangs.
As part of the investigation, on July 16, 2015, the agents executed a narcotics search warrant at the home of Alford, who they identified as a member of the Gangster Disciples. During the search, officers found $2,114 in drug proceeds, multiple grams of synthetic marijuana, packaging material, receipts, scales, drug ledgers, a loaded 9mm and a box of ammunition.
Alford has multiple felony convictions and is categorized as an armed career criminal.
In July 2016, Alford pleaded guilty to one count of unlawfully possessing a firearm.
On Wednesday, November 16, 2016, U.S. District Judge Sheryl H. Lipman sentenced Alford to 180 months in federal prison.
This case was investigated by the ATF and the 25th Judicial Drug Task Force.
Special Assistant U.S. Attorney Samuel Stringfellow prosecuted this case on the government’s behalf.