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Thursday 17 November 2016
Two New York Men Indicted for Transporting Cocaine and HeroinRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jerry Fruit, age 36, and Tykei Garner, age 33, both of New York City, were indicted on November 16, 2016, by a federal grand jury for conspiracy to distribute and possession with the intent to distribute cocaine and over 100 grams of heroin.
According to United States Attorney Bruce D. Brandler, the Pennsylvania State Police conducted a traffic stop on a car traveling on I-81 near Harrisburg on July 5, 2016. During the stop, the Pennsylvania State Police found over 100 grams of heroin, which is the equivalent of approximately 4,000 individual doses, and an unspecified amount of cocaine.
The case was investigated by the Pennsylvania State Police, the Dauphin County District Attorney’s Office and the U.S. Drug Enforcement Administration (DEA). The case is being prosecuted by Assistant United States Attorney Scott Ford.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 40 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two Men Convicted on 31 Counts of Conspiracy, Computer Access Fraud and Wire FraudRead the Press Release
Chris Suhail Folad, 37, of Franklin, Tenn., and Khaled Nabil Abdel Fattah, 38, of Antioch, Tenn. were convicted today by a federal jury, after a 3-day trial, of conspiracy to commit computer access fraud and wire fraud as well as 19 individual counts of computer access fraud and 11 counts of wire fraud, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
According to the proof at trial, between January 2009 and March 2010, Folad and Fattah used passwords to a local company’s ATM machines to alter the denomination distribution amounts to lead the machines to believe they were dispensing $1 bills, when, in fact, the machines were dispensing $20 bills. The company, Safe Cash Systems, LLC. (Safe Cash) based in Nashville, places machines in convenience stores, bars and restaurants throughout Nashville. Safe Cash’s machines only carry $20 bills. Defendant Folad previously worked at Safe Cash as an ATM technician and knew the passwords needed to change the denomination distribution amounts.
The trial proof showed that after the denomination distribution amounts were changed, the defendants would receive 20 times more cash from the machines than the amount that was debited from their bank accounts. During a 14-month period, Folad and Fattah made over 800 withdrawals from Safe Cash ATMs, making as many as 20 ATM withdrawals in a single day. The defendants used nine bank accounts and 17 bank cards to perpetrate their fraud and stole over $600,000 from Safe Cash.
Folad and Fattah are scheduled to be sentenced on March 6, 2017, and face up to twenty years in prison.
This case was investigated by the United States Secret Service. The case is being prosecuted by Assistant United States Attorneys Henry C. Leventis and Thomas Jaworski.
Traffic Stop Leads to Seizure of $2.1 Million Worth of Narcotics; Vehicle Owner ChargedRead the Press Release
Assistant U. S. Attorney Sherri Walker Hobson (619) 961-0287
NEWS RELEASE SUMMARY – November 17, 2016
SAN DIEGO – San Ysidro resident Ricardo Lujan was charged in federal court today with a drug-related offense after an Oceanside police officer discovered millions of dollars’ worth of methamphetamine and cocaine hidden inside the floorboards, door panels, center console and elsewhere in Lujan’s vehicle.
According to a federal complaint, the Oceanside Police Officer was conducting random vehicle registration checks at 12:40 a.m. on Harbor Drive in Oceanside. While doing this he noticed a car with expired tags. The officer then saw Lujan enter the Mitsubishi Endeavor SUV and attempt to leave the area. The officer stopped the vehicle.
While talking to the officer, Lujan, the registered owner of the vehicle, appeared nervous and agreed to a search of his vehicle. A Border Patrol canine handler responded to the traffic stop to assist Oceanside Police. The dog alerted to the odor of narcotics.
Agents from the Drug Enforcement Administration, San Diego Narcotics Task Force, subsequently searched Lujan’s vehicle and found 99 packages that were vacuum sealed in plastic containers of cocaine and 58 rectangular vacuum sealed in plastic containers of methamphetamine.
The agents seized approximately 89.50 kilograms of cocaine and approximately 68.90 kilograms of methamphetamine.
The estimated wholesale of the cocaine is approximately $1.7 million dollars. The estimated wholesale value of the methamphetamine is approximately $450,000.
Lujan is scheduled to appear in federal court before U.S. Magistrate Judge Barbara Major for arraignment hearing on November 18 at 2 p.m.
DEFENDANT
Ricardo Lujan, age 44
San Ysidro, California
CHARGE
Possession with intent to distribute
Title 21, United States Code, Section 841
AGENCIES
Oceanside Police Department
Drug Enforcement Administration, San Diego Narcotics Task Force
U.S. Border Patrol, San Clemente Station
*The charges and allegations contained in a complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Texas Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a McAllen, Texas, man convicted of Failure to Register as a Sex Offender was sentenced on November 14, 2016, by U.S. District Judge Roberto A. Lange.
Dimas DeLeon, a/k/a Leo Castro, age 30, was sentenced to 23 months in custody, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
DeLeon was indicted by a federal grand jury on July 19, 2016. He pled guilty on August 29, 2016.
The conviction stemmed from an incident wherein DeLeon failed to register as a sex offender from May 1, 2016, to July 1, 2016. DeLeon had initially been convicted in federal court in Texas in 2009 of Sexual Assault of a Child and was sentenced to prison, as well as being required to register as a sex offender.
In May 2016, DeLeon moved from Texas to Pierre, South Dakota, where he resided with his brother and then girlfriend. According to the SD Division of Criminal Investigation Sex Offender Registry, DeLeon never registered either his address or his employment in the state of South Dakota. He also never notified the state of Texas that he was relocating to South Dakota.
The investigation was conducted by the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
DeLeon was immediately turned over to the custody of the U.S. Marshals Service.
Tereso Galindo Sentenced to 33 Months’ ImprisonmentRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Tereso Cazares Galindo, 38, of Michigan City, Indiana was sentenced before South Bend District Court Judge Jon E. DeGuilio for having reentered the United States after having previously been deported following a felony conviction.
Galindo was sentenced to 33 months’ imprisonment and two years of supervised release.
According to documents filed in this case, Galindo was arrested in April 2016. In or around October 2004, Galindo was deported to Mexico following a conviction for armed robbery.
This case was investigated by Homeland Security Investigations and the South Bend Police Department. The case was handled by Assistant United States Attorney Jesse M. Barrett.
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Sumner Man Pleads Guilty to Unlawfully Disposing of the City of New Hampton’s Sewage SludgeRead the Press Release
A northern Iowa man pled guilty yesterday, in federal court in Cedar Rapids, to unlawfully disposing of the City of New Hampton’s sewage sludge.
Donald James Warnke, 64, from Sumner, Iowa, was convicted of one count of unlawfully disposing of sewage sludge from a publically owned treatment works.
At the plea hearing, Warnke admitted that, on June 19, 2015, he knowingly disposed of sewage sludge from a publically owned treatment works. More specifically, Warnke dumped domestic sewage from the City of New Hampton Wastewater Treatment Plant in a field, which violated federal regulations governing the disposal of such sewage sludge.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Warnke remains free on certain conditions of release pending sentencing. Warnke faces up to three years’ imprisonment, a fine of not less than $5,000 but not more than $50,000 per day of violation, a $100 special assessment, and one year of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Tim Vavricek and Matt Cole and was investigated by the Environmental Protection Agency, Criminal Investigations Division.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-2054-LRR.
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Stockton Husband and Wife Indicted on Human Trafficking Charges Related to Forced Labor of Foreign Nationals Primarily from IndiaRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a five-count indictment today against Satish Kartan, 43, and his wife, Sharmistha Barai, 38, of Stockton, charging them with conspiracy to commit forced labor and the commission of forced labor. In addition, Kartan was charged with fraud in foreign labor contracting, and Barai was charged with benefiting from forced labor.
Acting U.S. Attorney Phillip A. Talbert and Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division announced the indictment.
According to court documents, between February 21, 2014, and October 3, 2016, Kartan and Barai hired workers from overseas to perform domestic labor in their homes in Albuquerque, New Mexico; Stockton and elsewhere in the United States. In advertisements seeking workers on the internet and India-based newspapers, the defendants made false claims regarding the wages and the duties of employment. Once the workers arrived at the defendants’ residences, Kartan and Barai forced them to work 18 hours a day with limited rest and nourishment. The defendants did not pay wages and used force, physical restraint and coercive conduct to get the workers to perform the labor and services.
The indictment alleges that Kartan and Barai struck one worker on multiple occasions, including one incident where Kartan grabbed her hands and caused them to be burned over the flames of a gas stove. Moreover, the indictment alleges that the defendants failed to pay another worker and told her that they would call the police if she tried to leave. When she was ultimately able to arrange to be picked up from the defendants’ house, Kartan refused to provide her with the access code to the gated community so that her ride could enter.
On October 21, 2016, the defendants were arrested on a criminal complaint and were released on bond with special conditions that prohibit them from hiring any nonrelatives to perform domestic services or child care work for them, and prohibit them from directly or indirectly contacting any of their prior domestic workers. Kartan and Barai are scheduled to be arraigned on November 21, 2016.
If convicted, each defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the FBI, the State Department’s Diplomatic Security Service, and the Stockton Police Department. Special Assistant U.S. Attorney Josh Sigal and Assistant U.S. Attorney Nirav Desai are prosecuting the case, with the assistance of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Eastern District of California (Sacramento) is one of six districts designated through a competitive, nationwide selection process as a Phase II ACTeam, through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security, and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
Statement by Acting U.S. Attorney Bob Troyer Condeming Hate Crimes -- Promising Vigorous Prosecution When AppropriateRead the Press Release
DENVER – Acting U.S. Attorney Bob Troyer released the following statement condemning hate crimes today, promising vigorous prosecution when appropriate:
“Hate crimes are not just crimes perpetrated against an individual victim. They attack our entire community by spreading fear and intimidation. Hate crimes can take many forms: violence, intimidation, harassment, or vandalism of property. These are acts of cowardice, and they are serious federal crimes that we will prosecute to the fullest. The U.S. Attorney’s Office will work closely and constantly with community leaders and local, state and federal law enforcement to protect the civil rights of all individuals, regardless of their citizenship status, actual or perceived race, color, religion, national origin, sex and gender, gender identity, sexual orientation or disability. If an individual’s civil rights are attacked, this office will act.”
Stamford Man Pleads Guilty to Federal Gun ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHARLES BARNES, 34, of Stamford, pleaded guilty today in New Haven federal court to one count of possession of a firearm by a previously convicted felon.
According to court documents and statements made in court, on December 29, 2015, Stamford Police stopped a car BARNES was driving. A subsequent search of the vehicle revealed a Berretta 9 millimeter pistol loaded with 12 rounds of ammunition, which was found in the glove box. The search also revealed 16 bags of marijuana packaged for sale.
Prior to December 2015, BARNES had sustained a felony conviction for possession of marijuana with intent to sell, and two felony convictions for second degree assault. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
BARNES is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on February 10, 2017, at which time he faces a maximum term of imprisonment of 10 years.
BARNES has been detained December 29, 2015.
This matter is being investigated by the Stamford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Springfield Man Pleads Guilty to Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man pleaded guilty in federal court today to producing and distributing child pornography.
Christopher Peck, 40, of Springfield, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charges contained in a Jan. 19, 2016, federal indictment.
By pleading guilty today, Peck admitted that he used two minors, identified in court documents as Jane Doe #1 and John Doe #1, to produce child pornography between Nov. 1, 2014, and Jan. 8, 2016. Peck also pleaded guilty to receiving and distributing child pornography during that time.
Co-defendant Tracy Ann Smith, 42, of Springfield, pleaded guilty on May 10, 2016, to one count of the sexual exploitation of a child and one count of receiving and distributing child pornography. Smith admitted that she used Jane Doe #1 to produce child pornography between Nov. 1, 2014, and Jan. 8, 2016. Smith also admitted that she received and distributed child pornography during that time.
Under federal statutes, Peck and Smith are each subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 50 years in federal prison without parole. 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. Sentencing hearings for Peck and Smith have not yet been scheduled.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
South Florida Resident Sentenced to Prison for Stealing Housing and Food Assistance Benefits and Committing Aggravated Identity TheftRead the Press Release
A South Florida resident was sentenced to three years in prison and ordered to pay $187,997 in restitution for stealing housing and food assistance benefits and committing aggravated identity theft.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Nadine Gurley, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of Inspector General (HUD-OIG), Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA-OIG), Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ann Deibert, Chief Executive Officer, Broward County Housing Authority (BCHA), made the announcement.
Jamye Sharne Barnes, a/k/a Jamye Barnes Sawyers, 36, of South Florida, previously pled guilty to two counts of theft of government money for taking HUD funded Section 8 program assistance and USDA Supplemental Nutrition Assistance Program benefits to which she was not entitled, in violation of Title 18, United States Code, Section 641; and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Barnes was sentenced to 36 months in prison, to be followed by two years of supervised release, and was ordered to pay restitution in the amount of $187,997.
According to court documents, on May 17, 2011, Barnes applied to receive Section 8 housing benefits in Broward County, Florida through the Broward County Housing Authority (BCHA), which administers United States Department of Housing & Urban Development (HUD) Section 8 housing benefits. Barnes was approved by BCHA to live at a house in Miramar, Florida, and HUD, through BCHA, paid $1,154 in rent per month from July 26, 2011 through November 8, 2012 for this residence on behalf of Barnes. From May 2012 up to 2016, Barnes received a total of $38,000 in benefits. Throughout that period, Barnes filed annual applications certifying under oath information relating to her income, employment, and bank accounts held, but failed to disclose income that would have disqualified her from receiving HUD Section 8 benefits.
On or about December 16, 2008, Barnes applied to receive United States Department of Agriculture (USDA) Supplemental Nutrition Assistance Program (SNAP) benefits, formerly known as food stamps. Barnes was approved by the USDA, and from May 2012 through 2016, she received benefits ranging from $313 to $526 per month based upon the information she provided to the Florida Department of Children and Families (DCF). Throughout that period, Barnes filed annual applications certifying under oath her income, employment, and bank account records, but failed to disclose income that would have disqualified her from receiving USDA SNAP benefits.
From May 2012 through 2016, Barnes worked at Loyalty Financial, Inc., a tax preparation business in the Southern District of Florida. Barnes was the authorized signee of several bank accounts for Loyalty Financial, and Barnes used the bank accounts to pay the company’s employees and for her personal benefits. In 2012, over 30 fraudulently obtained United States Treasury income tax refund checks were deposited into one of Loyalty Financial's bank accounts. The total amount of the checks deposited was $188,746.70. Barnes personally withdrew at least $127,327 from the account.
Mr. Ferrer commended the investigative efforts of HUD-OIG, USDA-OIG, IRS-CI, and the BCHA. The case was prosecuted by Assistant U.S. Attorney Cary O. Aronovitz.
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.
Socorro Man Pleads Guilty to Federal Meth Trafficking ChargesRead the Press Release
ALBUQUERQUE – Carlos Tafoya, Jr., 35, of Socorro, N.M., pled guilty today in federal court in Las Cruces, N.M., to methamphetamine trafficking charges. Under the terms of his plea agreement, Tafoya will be sentenced within the range of 12 to 13 years in prison followed by a term of supervised release to be determined by the court.
Tafoya was one of 34 individuals charged in December 2015, with federal and tribal drug offenses as the result of an 18-month multi-agency investigation led by the DEA and BIA into methamphetamine trafficking on the Mescalero Apache Reservation. Eighteen defendants, including five members of the Mescalero Apache Tribe and 13 non-Natives were charged in six federal indictments and a federal criminal complaint. Sixteen other members of the Mescalero Apache Tribe were charged in tribal criminal complaints approved by the Mescalero Apache Tribal Court.
The investigation leading to the federal and tribal charges was initiated in May 2014, in response to an increase in violent crime on the Mescalero Apache Reservation perpetrated by methamphetamine users. The investigation initially targeted a drug trafficking organization that was allegedly distributing methamphetamine within the Reservation, and later expanded to include two other drug trafficking organizations in southeastern New Mexico that allegedly served as sources of supply for the methamphetamine distributed within the Reservation. In Aug. 2014, the investigation was designated as part of the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) program, which combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation is one of the first OCDETF investigations to utilize electronic surveillance (wiretaps) in Indian Country. More than ten kilograms of methamphetamine were seized during the course of the investigation.
Tafoya was arrested on Nov. 20, 2015, on an indictment charging him and seven other non-Natives with methamphetamine trafficking and money laundering offenses. The indictment charged Tafoya with participation in a methamphetamine trafficking conspiracy and possession of methamphetamine with intent to distribute.
The indictment against Tafoya was superseded on Sept. 21, 2016, and charged Tafoya with conspiracy to distribute methamphetamine from July 1, 2015 through Nov. 13, 2015; distribution of methamphetamine on Oct. 15, 2015; possession of methamphetamine with intent to distribute on Nov. 13, 2015; and possession of a firearm in relation to a drug trafficking crime on Nov. 13, 2015. According to the superseding indictment, all offenses took place in Socorro County, N.M. The superseding indictment also included forfeiture provisions requiring Tafoya to forfeit $24,500 to the United States.
During today’s proceedings, Tafoya pled guilty to distribution of methamphetamine and possession of methamphetamine. In entering the guilty plea, Tafoya admitted that on Oct. 15, 2016, he sold 364.2 grams of methamphetamine to an undercover law enforcement agent and on Nov. 13, 2015, he possessed approximately 1.2 kilograms of methamphetamine which he intended to sell. Tafoya further admitted that he was on supervised release for a prior conviction when he committed the methamphetamine trafficking offenses on Oct. 15, 2015 and Nov. 13, 2015. Tafoya remains in custody pending a sentencing hearing which has yet to be scheduled.
Sixteen of the 18 federal defendants have entered guilty pleas. The two remaining federal defendants have entered not guilty pleas to the charges against them. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The federal and tribal cases were investigated by the Las Cruces office of the DEA, District IV of the BIA’s Office of Justice Services (Mescalero Agency), BIA’s Division of Drug Enforcement, Mescalero Tribal Police Department, Hatch Police Department, FBI and Lea County Drug Task Force. Assistant U.S. Attorneys Terri J. Abernathy and Clara Cobos of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the federal cases, and Mescalero Tribal Prosecutor Melissa Chavez is prosecuting the tribal cases.
SoCal Woman Who Admitted Kidnapping Her Two Children to Keep Them from Their Father Sentenced to 13 Months in Federal PrisonRead the Press Release
LOS ANGELES – A Los Angeles-area woman who brought her two children to Mexico to keep them from their father was sentenced today to 13 months in prison in a federal kidnapping case.
Faye Hsin-I Ku, 42, of Lakewood, was sentenced this morning by United States District Judge John A. Kronstadt.
Ku pleaded guilty in September to two counts of international parental kidnapping.
When she pleaded guilty, Ku admitted that on August 29, 2015, she took her two children – who were 15 and 9 at the time – into Mexico through the San Ysidro Port of Entry. “At the time, Ms. Ku had the intent to obstruct the lawful exercise of parental rights” of the father, Ku admitted when she pleaded guilty.
After bringing the children to Mexico, Ku brought the children to Sinaloa. The FBI’s Legal Attaché in Mexico City pursued a series of leads to identify their location and passed information to Mexican officials, who took prompt action, assuring the safety of the children. The children were reunited with their father on February 12.
“This defendant sought to deprive her children’s father of his court-sanctioned parental rights by fleeing the United States,” said United States Attorney Eileen M. Decker. “She abducted her children, abused their emotional attachment to her, brought them to a dangerous part of Mexico and had a destructive impact on the entire family.”
FBI officials in Seattle and Mexico City coordinated the deportation of Ku with Mexican authorities. On February 12, Mexican officers accompanied Ku to Los Angeles International Airport, where she was taken into federal custody.
“Bringing the children home safely was only possible due to extraordinary partnerships with law enforcement agencies across multiple states and in Mexico,” said FBI Special Agent in Charge Jay S. Tabb Jr. of the FBI’s Seattle Division. “The children’s well-being was the ultimate triumph after six months of dedicated investigative work, but today’s sentencing provides additional satisfaction by reassuring communities that parental kidnapping will not be tolerated.”
Once she completes her prison sentence, Ku will be on supervised release for one year.
The investigation in this case was conducted by the FBI’s Seattle Division, which received substantial assistance from the FBI’s Legal Attaché in Mexico City, Mexico’s National Institute of Migration, the FBI’s Los Angeles Division, the Bellevue (Washington) Police Department, the Los Angeles County Sheriff’s Department and the National Center for Missing & Exploited Children.”
This case was prosecuted by Assistant United States Attorney Scott Paetty of the Major Frauds Section, who coordinated with the U.S. Attorney’s Office for the Western District of Washington and the King County (Washington) Prosecutor’s Office.
Sex Offender Who Failed to Register Given 10 Years in JailRead the Press Release
OXFORD, Miss. B Felicia C. Adams, United States Attorney for the Northern District of Mississippi, announced that:
John Graham Roberts, 50, of Hardy, Arkansas and Water Valley, Mississippi, was sentenced for failing to register under the Federal Sex Offender Registration and Notification Act, on Tuesday, November 17, 2016, by United States District Judge Michael P. Mills, in Oxford, Mississippi. Judge Mills ordered Roberts to serve the maximum term of 120 months in prison. Roberts was also sentenced to serve a lifetime term of supervised release.
Roberts plead guilty on July 21, 2016, to a one-count Indictment charging him with a violation of Title 18, Section 2250, for knowingly failing to register as a sex offender and keep his registration as a sex offender updated as required by law Mississippi and Arkansas.
The United States Marshal Service (USMS) arrested Roberts on May 4, 2016, after receiving a tip that he was living in Mississippi and had not registered as a sex offender. The USMS investigation revealed that Roberts had lived in at least two different judicial districts without registering. Roberts was originally convicted in 1994 in Sharp County, Arkansas, for rape and sexual abuse in the 1st degree of 6 boys. Subsequently, in 2005, Roberts was convicted of failure to register as a sex offender in Desoto County, Mississippi.
United States Attorney Felicia C. Adams stated: “The federal Sex Offender Registration and Notification Act requires that sex offenders who move must register. It establishes a means for law enforcement to know the whereabouts of known sex offenders and is a means for the public to determine if a sex offender is living nearby. When an offender knowingly ignores the registration requirements, they violate the law. Such blatant disregard of the law which provides for the safety and protection of our children and neighborhoods must not be tolerated. The U.S. Marshals Service is to be commended for their diligent investigation and the arrest of Roberts.”
Unregistered sex offenders became federal fugitives, and they are a priority for our Deputy U.S. Marshals,” said Dennis Erby, the United States Marshal for the Northern District of Mississippi. “We worked closely with the Deputy United States Marshals from the Eastern District of Arkansas, with assistance from the Arkansas State Police on this case and will continue to work with all of our state and local partners to arrest those sex offenders who lurk in our neighborhoods, and threaten the safety of our children and communities,” added Erby.
The Sex Offender Registration and Notification Act (SORNA), enacted on July 27, 2006, requires a sex offender to register, and keep the registration current, in each jurisdiction where the offender resides, works and goes to school. SORNA is part of the Adam Walsh Child Protection and Safety Act which creates a comprehensive national system and requirements for sex offender registration, and criminal penalties for those who knowingly fail to register or update registration.
This case was investigated by the United States Marshal's Service and prosecuted by Assistant U.S. Attorneys Clay Joyner and J. Wesley Webb.
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Seven Defendants Plead Guilty to Conspiracy Related to Mortgage Fraud SchemeRead the Press Release
In two related cases, seven residents of Miami-Dade County pled guilty to conspiracy charges arising from their involvement in a complex mortgage fraud scheme involving two condominium conversion projects in central Florida.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Timothy Mowery, Special Agent in Charge, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
On November 10, 2016, Orlando Ortiz, 53, Luis Enrique Tur, 47, Jeffrey Todd Canfield, 49, Rafael Amador, 34, and Osvaldo Sanchez, 40, pled guilty to one count of conspiracy to commit bank fraud and wire fraud affecting a financial institution, before U.S. District Judge Federico A. Moreno. The defendants are scheduled to be sentenced on January 19, 2017.
On November 16, 2016, Mirna Pena, 54, and Pedro Reynaldo Allende, 66, pled guilty to one count of conspiracy to commit bank fraud and wire fraud affecting a financial institution, before U.S. District Judge Patricia A. Seitz. The defendants are scheduled to be sentenced on March 28, 2017.
According to court documents, including the agreed upon factual statements:
In 2007 and 2008, Ortiz, Tur, Canfield, Amador, and Sanchez participated in a mortgage fraud scheme involving two condominium projects: “Portofino at Largo,” in Largo, Florida, and “Bayshore Landing,” in Tampa, Florida. Pena and Allende were involved in the same mortgage fraud scheme; however, their involvement was limited to units in the Portofino at Largo project.
During the course of the conspiracy, Pena, Allende, and other individuals recruited straw buyers and unqualified buyers, including Ortiz, Tur, and Canfield, to purchase units in the two condominium projects. Among other things, the recruiters told certain prospective buyers that: buyers did not have to contribute any money to purchase a unit; buyers would receive a cash-back incentive or “kick-back” after closing; and buyers would receive several months’ mortgage payments.
The co-conspirators prepared and submitted false and fraudulent mortgage loan applications and related documents to various lenders including Bank of America, BankUnited, Chase Bank USA, CitiMortgage, First National Bank of Arizona, IndyMac Bank, JPMorgan Chase Bank, and Washington Mutual Bank. Among other things, the loan applications and related documents contained false and fraudulent statements and omissions regarding: the borrower’s intention to reside in the unit; the borrower’s employment and income; the borrower’s assets and liabilities; the borrower’s payment of an earnest money deposit and cash-to-close; and the use of mortgage loan proceeds to pay “marketing fees” to various “marketing companies.” In truth and in fact, the marketing companies were fraudulent businesses that did not provide any marketing services. Instead, the “fraudulently induced marketing fees” were a means of diverting proceeds from the fraud scheme to the marketing companies. The fraudulent marketing companies would then use the fraud proceeds to pay undisclosed kick-backs to the buyers.
Pena and Allende operated two Miami-based businesses, which were used to perpetrate the mortgage fraud scheme: Mortgage Bankers Lenders, Inc., a mortgage broker business, which submitted false and fraudulent loan applications and related documents to the lenders; and United Title Services & Escrow, Inc., which closed mortgage loan transactions even though the buyers had not paid earnest money deposits or cash-to-close, and used loan proceeds to pay “marketing fees” to a marketing company operated by unindicted co-conspirators.
Ortiz, Canfield, and Tur purchased units in Portofino at Largo. Tur also purchased units in Bayshore Landing. Ortiz, Canfield, and Tur engaged a Miami-based mortgage broker business operated by an unindicted co-conspirator to prepare and submit mortgage loan applications for their units. On their behalf, the co-conspirator prepared and submitted fraudulent loan applications and other documents to various lenders. The fraudulent loan documents included fabricated W-2 Wage and Tax Statements and pay stubs. After closing on their units, Ortiz, Canfield, and Tur received substantial undisclosed kick-backs from a marketing company operated by an unindicted co-conspirator. The kick-backs were funded with fraud proceeds, which had been paid to the marketing company as “marketing fees.”
Amador and Sanchez operated Allegiance Title of America, Inc., which served as the closing agent for mortgage loans involving condominium units in Portofino at Largo and Bayshore Landing. Among other things, Amador and Sanchez caused Allegiance Title of America to disburse loan proceeds even though the buyers had not paid the earnest money deposits or cash to close, that was required by their loan applications and settlement statements. Amador and Sanchez also caused Allegiance Title of America to pay fraudulent “marketing fees” to marketing companies.
The defendants face a maximum statutory term of thirty years’ imprisonment for their participation in the mortgage fraud conspiracy.
Mr. Ferrer commended the investigative efforts of the FHFA-OIG, FBI and MDPD. Both cases are being prosecuted by Assistant United States Attorney Dwayne E. Williams.
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.
Sentencings for November 15 - November 17, 2016Read the Press Release
Leonel Gomez-Hernandez, a/k/a Fernando Hernandez, 26, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on November 17, 2016, for illegal re-entry of a previously deported alien into the United States. Gomez-Hernandez was arrested in Casper, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Robert Tyler Watt, 29, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 16, 2016, for conspiracy to distribute methamphetamine and for being a felon in possession of firearms. Watt was arrested in Casper, Wyoming. He received 80 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $200.00 special assessment and $500.00 in restitution. This case was investigated by the Wyoming Highway Patrol, the Wyoming Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Kevin Patrick Michael, 21, of Westminster, Colorado, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 16, 2016, for conspiracy to distribute methamphetamine. Michael was arrested in Cheyenne, Wyoming. He received 35 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and $250.00 in restitution. This case was investigated by the Wyoming Highway Patrol, the Wyoming Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Richard James Clifton, 29, of Evanston, Wyoming, was sentenced by Federal District Court Scott W. Skavdahl on November 15, 2016, for being a felon in possession of a firearm. Clifton was arrested in Cheyenne, Wyoming. He received 28 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
San Antonio Businessman Sentenced to Prison for Estimated $5.3 Million Tax and Wire Fraud SchemeRead the Press Release
A federal judge this morning sentenced a former owner of San Antonio-based Gourmet Express, LLC, a skillet meals manufacturing and distributing business, to 15 years in federal prison for his role in an estimated $5.3 million tax and wire fraud scheme announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.
In addition to the prison term, United States District Judge David A. Ezra ordered that Robert Warren Scully pay $1,206,539.94 restitution to the Internal Revenue Service, plus a $5,000 fine, and be placed on supervised release for a period of three years after completing his prison term. Judge Ezra also ordered that the defendant be taken into custody to begin serving his sentence immediately.
On November 25, 2015, a federal jury in San Antonio convicted Scully of conspiracy to defraud the United States, conspiracy to commit wire fraud, and three substantive wire fraud counts.
Evidence presented in trial revealed that from April 2001 until July 2009, Scully and others conspired to defraud the Internal Revenue Service by hiding earned taxable income generated by his frozen food business. Testimony revealed that Scully and others used intermediary companies in Thailand to provide shrimp and other ingredients at an inflated cost to Gourmet Express, thereby also defrauding his co-owners. Scully and others used the proceeds generated as a result of the inflated costs for personal expenses and failed to disclose that income to the Internal Revenue Service.
“Robert Scully used a tangled web of international entities and foreign bank accounts to divert money from his business and evade income taxes,” said IRS Criminal Investigation Acting Special Agent in Charge Troy Caldron. “Scully must now pay for his attempt to support a lavish lifestyle through fraudulent means. Money laundering and tax evasion are not victimless crimes. They constitute a serious threat to our communities, to the integrity of our financial system, and to our national security.”
The case resulted from an investigation by the Internal Revenue Service Criminal Investigation. Assistant United States Attorneys William R. Harris, Jay Hulings and Mary Nelda Valadez prosecuted this case on behalf of the Government.
Salvadoran Man Sentenced to Eight Months for Unlawfully Re-Entering the United StatesRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Manual Antonio Guerra-Nolasco, 36, of Canton Matelapa, El Salvador, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to eight months in prison for unlawfully re-entering the United States after having been removed from the country. He pled guilty on August 5, 2016.
According to court records, on May 30, 2016, the defendant was arrested after a traffic stop in Orrington, Maine when a Penobscot County Deputy Sherriff learned that the pick-up truck he was driving was not registered and that his California driver’s license had been issued in the name of another person. Immigration records revealed that the defendant had been removed from the United States on August 20, 2007.
The investigation was conducted by the Department of Homeland Security’s U.S. Border Patrol.
Rutherford County Sheriff’s Major Charged with Unlawfully Obtaining U.S. CitizenshipRead the Press Release
Terry McBurney, 47, of Murfreesboro, Tenn., and a Major with the Rutherford County Sheriff’s Department, was indicted by a federal grand jury yesterday, on charges of unlawful procurement of naturalization; making false statements under oath in matters relating to his application for U.S. citizenship and naturalization status; and wire fraud, announced Jack Smith, Acting U.S. Attorney for the administration of this case.
According to the indictment, McBurney was born in Ireland. In September 2010 McBurney submitted an application for employment to the Rutherford County Sherriff’s Office and also submitted a completed Department of Homeland Security Form I-9, Employment Verification Eligibility. Both documents were marked indicating that McBurney was a United States citizen. In December 2010 McBurney submitted an application to the Tennessee Peace Officer Standards and Training (POST) Commission that was also marked indicating that he was a United States citizen. In fact, he was not a United States citizen.
McBurney obtained Tennessee POST certification in May 2011which made him eligible to receive a $600 per year pay supplement and he received supplemental payments of $600 in 2013, 2015, and 2016. In 2013, McBurney was promoted to the position of captain in the Rutherford County Sheriff’s Office and on or about January 18, 2016, McBurney was again promoted, this time to the position of major. Rutherford County required individuals holding the position of captain or major to meet a number of requirements, including being a United States citizen. The indictment alleges that McBurney was not a United States citizen at this time.
The indictment further alleges that McBurney submitted an application for naturalization to seek status of a United States citizen in September 2015 and participated in an interview regarding the application in December 2015. On the application and during an interview with an immigration officer of the U.S. Citizenship and Immigration Services, McBurney denied that he had ever claimed to be a United States citizen in writing or any other way. On February 24, 2016, McBurney took the oath of allegiance and was naturalized as a United States citizen.
If convicted, McBurney faces up to 10 years in prison for unlawful procurement of naturalization or citizenship, up to 5 years for making a false statement under oath in a matter relating to naturalization, and up to 20 years in prison for wire fraud. McBurney also faces a $250,000 fine for each charge and possible revocation of his U.S. citizenship.
This case was investigated by ICE- Homeland Security Investigations and the Tennessee Bureau of Investigation. Assistant U.S. Attorney Amanda J. Klopf is prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Rocklin Man Pleads Guilty to Large-Scale Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. —Aleksandr Kovalev, 53, of Rocklin, pleaded guilty today to wire fraud involving financial institutions in connection with a mortgage fraud scheme involving the purchase of at least 31 properties, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Kovalev was in the business of developing, building and selling property in Sacramento, Fairfield and Stockton. As the real estate market began to weaken, Kovalev offered to make incentive payments to purchasers, through “down payment assistance” or by making other payments to the buyers to be used in whatever manner the buyers wanted. Most of the payments to the buyers were out of escrow and were often paid through intermediaries, originating in Kovalev’s bank account. These payments were not disclosed to the lenders, and had the effect of substantially reducing the actual sales price below that was represented to the lenders. At least 31 properties were involved in Kovalev’s mortgage fraud scheme with substantial losses to the lenders.
This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Todd A. Pickles is prosecuting the case.
To date, five co-defendants have pleaded guilty and have been sentenced: Jannice Riddick, 34, of Sacramento (two years and 11 months in prison); Florence Francisco, 65, of Houston, Texas (one year in prison); Adil Qayyum, 34, of Rosele, Illinois (three years of probation); Elsie Pamela Fuller, 41, of Richmond (one year and nine months in prison); and Leona Yeargin, 49, of San Pablo (18 months in prison). Charges are pending against co-defendant Arthur Menefee, 45, of Stockton.
Two other defendants were charged separately for their involvement in the scheme. Valeriy Vasilevitsky, charged in U.S. v. Vasilevitsky, 2:12-cr-344 KJM, and Ruth Willis, charged in U.S. v. Willis, 2:13-cr-228 MCE, have also pleaded guilty and await sentencing.
Kovalev is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on February 9, 2017. Kovalev faces a maximum statutory penalty of 30 years in prison and a fine of $1 million or twice the gross loss or gain. 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.
Previously Deported Alien Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on November 16, 2016, a federal grand jury in Harrisburg charged Victor Avalos-Trinidad, age 34, with illegal re-entry into the United States by a previously deported alien.
According to United States Attorney Bruce D. Brandler, Avalos-Trinidad was previously deported from the United States in 2009. He is alleged to have illegally reentered the United States sometime after 2009.
This matter was investigated by Homeland Security Investigations. Prosecution has been assigned to Assistant United States Attorney Carlo D. Marchioli.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is two years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Press Conference AdvisoryRead the Press Release
There will be a press conference today to announce charges against Gary Tanner, a former executive at Valeant Pharmaceuticals International, Inc., and Andrew Davenport, the former Chief Executive Officer of Philidor Rx Services LLC, for engaging in a multi-million dollar fraud and kickback scheme.
WHO: Preet Bharara, United States Attorney for the Southern District of New York
William F. Sweeney, Special Agent-in-Charge of the New York Field Office of the Federal Bureau of Investigation
WHAT: Press Conference
WHEN: Thursday, November 17, 2016
12:00 p.m.
WHERE: U.S. Attorney’s Office, Southern District of New York
1 St. Andrew’s Plaza
New York, NY 10007
CONTACT: James Margolin, Dawn Dearden, Nicholas Biase
(212) 637-2600
NOTE: Please silence all cell phones, PDAs, and pagers before start of press conference.
Ponchatoula Woman Sentenced for Theft of MailRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JESSICA HENDERSON BERTHELOT, age 29, of Ponchatoula, was sentenced today after previously pleading guilty to Theft of Mail.
U.S. District Judge Lance M. Africk sentenced BERTHELOT to six (6) months incarceration, restitution in the amount of $2,650.00, as well as three (3) years supervised release.
According to court records, the investigation was initiated in September 2015, by the Tangipahoa Parish Sheriff’s Office and the United States Postal Inspection Service after determining that BERTHELOT was stealing mail from residential mailboxes on the Northshore. Postal inspectors determined BERTHELOT stole approximately 1,428 items of mail.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service and the Tangipahoa Parish Sheriff’s Office. The prosecution of this case was handled by Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba.
Pine Ridge Man Sentenced for Robbery while using a FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pine Ridge, South Dakota, man convicted of Robbery and Use and Brandishing of a Firearm during the Commission of a Crime of Violence was sentenced on November 8, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Charles Colhoff, a/k/a Charles H. Goings, a/k/a Chuckie Colhoff, age 28, was sentenced to 7 years in custody, followed by 3 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Colhoff pleaded guilty to the charges on July 22, 2016. The conviction stems from Colhoff and another individual using a firearm to rob two females of personal items in Pine Ridge on June 4, 2015.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Colhoff was turned over to the custody of the U.S. Marshals Service.
November Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 20 indictments charging 25 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Aurelio Alcaraz-Santana, age 18, is charged with possession with intent to distribute 500 grams or more of a mixture of methamphetamine on or about November 4, 2016. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Fulgencio Betancourt-Labra, age 30, is charged with illegal reentry after deportation following a felony conviction on or about October 31, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Erfren Garcia-Guzman, age 33; Samantha Moore, age 32; and Danielle Barclay, age 39 are charged in a four-count Indictment. Count I of the Indictment charges Garcia-Guzman, Moore and Barclay with conspiracy to distribute and possess with intent to distribute a mixture of methamphetamine beginning on or about July 26, 2016, and continuing to on or about November 3, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Garcia-Guzman and Moore with distribution of a mixture of methamphetamine on or about August 17, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release and a $100 special assessment. Count III of the Indictment charges Barclay with distribution of a mixture of methamphetamine on or about November 3, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release and a $100 special assessment. Count IV of the Indictment charges Garcia-Guzman, Moore and Barclay with possession with intent to distribute a mixture of methamphetamine on or about November 3, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release and a $100 special assessment.
* MaryLou Gruttemeyer and Lafi Jafari are charged in an eight-count Indictment. Count I of the Indictment charges the defendants with conspiracy to commit bribery of the United States Department of Housing and Urban Development from on or about February 24, 2012, through on or about February 11, 2015. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Counts II – VII of the Indictment charge Gruttemeyer and Jafari on various dates with paying a bribe to an agent of the Omaha Housing Authority, an organizing receiving federal funds. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. Count VIII of the Indictment charges Jafari with making false statements to special agents of the Housing and Urban Development Office of Inspector General on or about April 16, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment
* Abel Guerrero Diaz, age 17, of Lincoln, is charged with illegal reentry after deportation on or about October 11, 2016. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Jesus Jimenez Soto, age 36, of Omaha, is charged with illegal reentry after deportation following an aggravated felony conviction on or about October 20, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Paul Jipp, age 57, of Blair, Nebraska is charged in a three-count Indictment. Count 1 of the Indictment charges the defendant with user in possession of a firearm on or about October 31, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Jipp with possession of an unregistered firearm on or about October 31, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment. Count III of the Indictment charges the defendant with possession unregistered silencers on or about October 31, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Coby Johnson, age 19, of Fayetteville, North Carolina, is charged with interstate communications with intent to extort on or about October 25, 2016. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Julio Cesar Lopez Gutierrez, age 32, is charged with false representation of a Social Security Number on or about during and between January 1, 2014, and April 30, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* William Mejia-Rentas, age 45, of Omaha, is charged with illegal reentry after deportation following a felony conviction on or about October 20, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Julian Mix-Perez, age 26; Alisha Trevino, age 26; and Carlos Vidal-Mix, age 20 are charged in a six-count Indictment. Count I of the Indictment charges Mix-Perez, Trevino and Vidal-Mix with conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture of methamphetamine between in or about May 2016 and on or about October 17, 2016. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charge Mix-Perez and Vidal-Mix with possession with intent to distribute 500 grams or more of a mixture of methamphetamine on or about October 17, 2016. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release and a $100 special assessment. Count III, IV and V of the Indictment charge Trevino with distribution and possession with intent to distribute 50 grams or more of a mixture of methamphetamine on or about July 21, August 31, and October 7, 2016. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment for each count. Count VI of the Indictment charges Vidal-Mix with illegal reentry after deportation on or about October 18, 2016. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Emigdio Molina, age 49, of Omaha, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture of methamphetamine beginning on or about January 1, 2009, and continuing to on or about November 1, 2016. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Molina with possession with intent to distribute 50 grams or more of a mixture of methamphetamine on or about November 1, 2016. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment.
* Byron Perez Lopez, age 24, of Omaha, is charged with illegal reentry after deportation on or about October 6, 2016. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Walter Perez-Cruz, age 37, of Grand Island, is charged with illegal reentry after deportation following a felony conviction on or about October 21, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Luis Miguel Rodriguez Vasquez, a/k/a Luis Miguel Rodriguez Vazquez, age 34 of Lincoln, is charged with illegal reentry after deportation on or about August 30, 2016. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Jaeon T. Rogers, age 35, is charged in a two-count Indictment. Count 1 of the Indictment charges the defendant with possession with intent to distribute methamphetamine on or about September 26, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Rogers with use of a firearm during and in relation to a drug trafficking crime on or about September 26, 2016. The maximum possible penalty if convicted is life imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Aurelio Romero-Oregon, age 25, of Omaha, is charged with felon in possession of ammunition on or about October 1, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Juan Manuel Simental-Lopez, a/k/a Manual Encee, a/k/a Juan Manuel Encee, age 44 is charged in a two-count Indictment. Count 1 of the Indictment charges the defendant with possession with intent to distribute 50 grams or more of methamphetamine on or about June 20, 2016. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Simental-Lopez with felon in possession of a firearm on or about June 20, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Bernabe Tercero-Lopez, age 40, of Crete, Nebraska, is charged with illegal reentry after deportation on or about November 2, 2016. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Charmion S. Yellowcloud, age 27, of Niobrara, Nebraska, is charged with tampering with a witness on or about October 17, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
North Miami Check Casher Sentenced to More than 17 Years in Prison for Cashing over $11 Million in Fraudulent Tax Refund ChecksRead the Press Release
A North Miami check casher was sentenced to more than 17 years in prison, after having been convicted by a federal jury, for cashing over $11 million in fraudulent tax refund checks obtained from the filing of stolen identities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
Junior Jean Baptiste, 36 of North Miami, Florida, was convicted on charges of conspiracy to commit money laundering, money laundering, possession of five or more false identification documents, theft of government money, and aggravated identity theft. Baptiste was sentenced to a total of 212 months’ imprisonment, to be followed by three years of supervised release, by United States District Judge Jose E. Martinez.
According to the evidence presented in court, from 2009 to 2011, the defendant operated a check cashing store called Surveillance Masters LLC in North Miami, Florida. During this period, trial evidence demonstrated that the defendant knowingly cashed over $11 million from over 2,000 fraudulent tax refund checks that had been issued in the names of dead people, disabled people, and other people who do not typically file tax returns. Furthermore, trial evidence showed that the defendant typically took a fee of half of the value of the checks and made false identification documents for his files. Trial evidence demonstrated that, in connection with the cashing of these fraudulent checks, the defendant possessed over 900 false driver’s licenses, work permits, and green cards.
Finally, the evidence at trial showed that the defendant used the fraudulently obtained funds for, among other things, a cargo ship, multiple vehicles, and rights to an album of a prominent hip-hop artist.
Mr. Ferrer commended the investigative efforts of IRS-CI and ICE-HSI. This was prosecuted by Assistant U.S. Attorneys Michael N. Berger and Michael B. Nadler.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
North Canton man sentenced to more than three years in prison for $1.5 million fraudRead the Press Release
A North Canton was sentenced to more than three years in prison for his role in a $1.5 million fraud scheme, said U.S. Attorney Carole S. Rendon and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office.
James W. Wallace was found guilty earlier this year of conspiracy to commit wire fraud and bankruptcy fraud. U.S. District Judge Benita Pearson sentenced Wallace to 41 months in prison and ordered him to pay approximately $900,000 in restitution.
Wallace, acting with others, engaged in a scheme to defraud at least 15 small business owners of at least $1.5 million through an investment and loan scam. This took place between 2009 and 2012, according to court documents.
Wallace, acting through his companies Wallace Financial and Washington Integrity, fraudulently induced individuals to purchase “aged shelf corporations,” which served no legitimate business purpose other than to funnel money back to Wallace for his personal use. Wallace told potential buyers, who were individuals who often could not get funding from traditional financial institutions, that they could get them loans substantially greater than any available to them from commercial institutions through the purchase of an “aged shelf corporation” through Wallace Financial and Washington Integrity.
Aged shelf corporations were corporations that had been created some years before, but had never engaged in any business and were corporations on paper only. Wallace induced the would-be borrowers to believe that with the purchase of these previously created but dormant corporations they would qualify for private loans, credit cards with high credit limits, and other credit opportunities in amounts greater than were otherwise available to them from financial institutions. Wallace misinformed buyers by telling them that they had private lenders waiting to lend money to the owners of these aged shelf corporations when he knew that no such private lenders existed. Wallace also falsely told would-be borrowers that other individuals had successfully obtained funding, but shrouded the details of their prior "successes” as well as the identities of their “private lenders” under a veil of mystery, citing proprietary and trade secrets, when no customers in fact received any private funding, according to court documents.
Wallace also fraudulently misrepresented that the money customers paid to Wallace Financial and Washington Integrity for aged shelf corporations was used to obtain trade references, gain high PAYDEX scores (credit scores for corporations), and effect private placement of the loans. Wallace falsely told customers that their profit in the transaction would come later, after loans had been funded, from a percentage of the loans they succeeded in acquiring. Instead, Wallace used a substantial share of the money to pay for personal expenses including strip clubs, jewelry, tattoo salons, meals at restaurants and bars, vacations and resort hotels, testosterone supplements, luxury products, sports equipment, tanning salons, payments on personal loans and mortgages, cash withdrawals, and transfers to personal accounts, according to court documents.
Wallace also filed a false bankruptcy petition in the Northern District of Ohio. This took place after FBI agents executed a search warrant related to the case, and after former Wallace Financial and Washington Integrity customers filed lawsuits against him. Wallace falsely withheld information regarding his involvement with Washington Integrity; the number and amounts of creditors and debts owed by Wallace and his companies, bank accounts he possessed, his interests in executory contracts in the forms of the aged shelf corporation agreements he held with customers of Wallace Financial and Washington Integrity, and by falsely claiming a negative gross income for the two years preceding his bankruptcy filing, according to court documents
This case is being prosecuted by Assistant U.S. Attorney Om Kakani, following an investigation by the Federal Bureau of Investigation.
New Orleans Man Sentenced to 20 Years Imprisonment for Home Invasion RobberiesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CLARENCE R. SINGLETON, age 30, of New Orleans, was sentenced today after previously pleading guilty to conspiracy to commit Hobbs Act Robbery and use of firearms in furtherance of drug trafficking crimes.
U.S. District Judge Carl J. Barbier sentenced SINGLETON to 240 months imprisonment, to be followed by 3 years of supervised release and a $200 special assessment.
According to court documents, SINGLETON participated in home invasion robberies of drug dealers in an effort to make money and/or obtain illegal drugs for later retail sale. He also conspired to use, possess and discharge firearms to further their drug trafficking activity, and crimes of violence during the robberies of these drug dealers to obtain drugs and drug proceeds.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the New Orleans Police Department led Multi-Agency Gang Unit in investigating this matter. Assistant United States Attorneys Michael M. Simpson and Michael E. McMahon were in charge of the prosecution.
Nevada Man Sentenced to 30 Years in Federal Prison for Interstate Travel with Intent to Engage in Sexual Act with Child Under 12Read the Press Release
Fort Smith, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that David Harper, age 50 of Henderson, Nevada, was sentenced today to 360 months in federal prison followed by five (5) years of supervised release on one count of Knowingly Crossing State Lines with Intent to Engage in Sexual Act with Person Under 12 Years Old. The sentencing hearing took place before the Honorable Chief Judge P. K. Holmes, III in the United States District Court in Fort Smith.
Court records reflect that in August 2015, David Harper began chatting online with an undercover detective working with the Fort Smith Police Department. On January 25, Harper traveled from Las Vegas to Fort Smith and was taken into custody when he arrived at the Fort Smith airport. When interviewed, Harper admitted that he traveled to Arkansas with the intent to engage in sex acts with a minor under 12 years of age. He was indicted by federal grand jury in January 2016 and pleaded guilty in June 2016.
This case was investigated by the Fort Smith Police Department and the Federal Bureau of Investigation (FBI). Assistant United States Attorney Ashleigh Buckley prosecuted the case for the United States.
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 their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Nebraska Man Sentenced for Attempted Sex TraffickingRead the Press Release
United States Attorney Randolph J. Seiler announced that a Loup City, Nebraska, man convicted of Attempted Trafficking with Respect to Involuntary Servitude and Forced Labor was sentenced on November 10, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Marcus Lee Dorsey, age 36, was sentenced to 4 years of imprisonment, followed by 2 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Dorsey was one of four men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2015 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with underage girls obtained through the Internet.
The conviction stemmed from Dorsey responding to an online advertisement posted by Division of Criminal Investigation undercover agents, which purported to offer young girls for sex. Following several messages with a person Dorsey believed to be associated with a 15-year old girl, but who was in fact an undercover agent, he proceeded to negotiate the time and place they would meet, along with the price he would pay, which was $70.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Dorsey was immediately turned over to the custody of the U.S. Marshal's Service.
Monroe County Man Guilty of Selling ExplosivesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Ronald J. Scheu, age 48, of Kunkletown, Pennsylvania, pleaded guilty before Magistrate Judge Karoline Mehalchick in Scranton on November 16, 2016, to distributing explosives.
According to United States Attorney Bruce D. Brandler, Scheu distributed 119 M-class devices, 26 class 1.3 mortars, and one aerial shell on or about April 28, 2016, without the appropriate license or permit. During the hearing, Scheu admitted to maintaining a storage locker filled with hundreds of pounds of explosives, and to selling professional grade explosives without an appropriate license. He also admitted to manufacturing flash powder and explosives at his residence.
The plea remains subject to approval by United States District Court Judge Richard P. Conaboy. As a condition of his pre-sentencing release, Judge Mehalchick ordered Scheu to dispose of all firearms in his possession.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Carbon County District Attorney’s Office. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the charge is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Minnesota Couple Sentenced for Multi-Million-Dollar Income Tax Refund Fraud SchemeRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of MARK ARLIN HAMMERSCHMIDT, 49, and ORNELLA ANGELINA HAMMERSCHMIDT, 37, for orchestrating a multi-million-dollar tax fraud scheme. The defendants, who pleaded guilty on November 16, 2015, were sentenced today before U.S. District Judge David S. Doty in U.S. District Court in Minneapolis, Minn.
“The Hammerschmidts stole nearly $2 million from the U.S. Treasury and exploited hundreds of vulnerable victims for their own financial gain, causing those victims immeasurable harm,” said Assistant United States Attorney Michelle Jones. “The U.S. Attorney’s Office and the IRS will continue to vigorously investigate and prosecute those who seek to victimize others and enrich themselves through tax refund schemes.”
“Most tax return preparers provide excellent service to their clients, however a few unscrupulous tax preparers file false and fraudulent returns. Knowingly and intentionally falsifying documents filed with the IRS is a federal crime,” stated IRS Criminal Investigation Special Agent in Charge Shea Jones. Our Special Agents play a valuable role in protecting tax revenue by identifying, investigating and recommending prosecution of abusive return preparers such as Mark Hammerschmidt and Ornella Hammerschmidt.”
According to the defendants’ guilty pleas, from January 2011 through February 2013, MARK and ORNELLA HAMMERSCHMIDT operated an immigration and tax preparation business, called American Group, located in Shakopee, Minn. and Winter Garden, Fla., which they utilized to prepare and file more than 1,000 fraudulent federal income tax returns. The defendants attracted customers to American Group by misrepresenting their professional credentials and certifications. Most notably, ORNELLA HAMMERSCHMIDT falsely represented herself as a licensed immigration attorney.
As part of the scheme, MARK and ORNELLA HAMMERSCHMIDT filed hundreds of federal and state tax returns for Minnesota and Florida clients of American Group and Liberty Tax, another tax preparation business they owned, reporting incorrect filing statuses, false household help income, fictitious businesses and business losses, along with fraudulent child care credits and education credits, in order to obtain unwarranted income tax refunds. The defendants attempted to conceal their involvement as fraudulent return preparers by intentionally not signing the tax returns on the part of the form meant to be signed by paid preparers. The defendants also falsely reported their business addresses and bank accounts controlled by them as the addresses and bank accounts of their taxpayer clients. In connection with this part of the scheme, the defendants sought approximately $200,000 in fraudulent tax refund payments. Many of the defendants’ clients were non-or-limited English speakers, who relied on the defendants to properly and legally prepare their taxes. The false returns filed on behalf of the taxpayer clients caused substantial harm to them, both in terms of problems with the IRS and problems with immigration status.
According to his guilty plea, from 2010 until 2012, MARK HAMMERSCHMIDT obtained personal identification information (“PII”) of hundreds of Guatemalan citizens, including birth certificates and copies of passports. MARK HAMMERSCHMIDT then prepared and filed with the IRS applications for Individual Taxpayer Identification Numbers (“ITINs”) in the names of the Guatemalan citizens. Once he obtained the ITINs, MARK HAMMERSCHMIDT filed multiple years’ worth of false tax returns in the Guatemalan citizens’ names, seeking refunds based on false information including false household help income, false dependents, and false education credits. MARK HAMMERSCHMIDT also used the PII of the Guatemalan citizens to file false Minnesota state income tax returns. In connection with this part of the scheme, the defendant sought approximately $1.8 million in tax refunds based on the fraudulent tax returns he filed.
This case was prosecuted by Assistant U.S. Attorneys Michelle E. Jones and Timothy C. Rank.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, Homeland Security Investigations, with substantial assistance from the Minnesota Department of Revenue.
Defendant Information:
MARK ARLIN HAMMERSCHMIDT, 49
Prior Lake, Minn.
Convicted:
- Conspiracy to Defraud the United States, 2 counts
Sentenced:
- 135 months in prison
- $1,832,986 in restitution
ORNELLA ANGELINA HAMMERSCHMIDT, 37
Prior Lake, Minn.
Convicted:
- False Claims for Refunds, 1 count
Sentenced:
- 48 months in prison
- $45,365 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Member of Large-Scale ‘ATM Skimming’ Scheme Pleads Guilty to Bank Fraud ConspiracyRead the Press Release
NEWARK, N.J. – A native of Romania who was arrested in Spain and extradited to the United States today admitted his role in a conspiracy to steal bank account information from thousands of customers by installing secret card-reading devices and pinhole cameras on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere, U.S. Attorney Paul J. Fishman announced.
Alin Carabus, 42, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to Count One of an indictment charging him with conspiracy to commit bank fraud.
According to documents filed in this and other cases as well as statements made in court:
Carabus admitted he was part of a vast “ATM skimming” scheme that stole bank account information by installing secret card-reading devices on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere. The scheme, which ultimately defrauded Citibank, TD Bank, Wells Fargo, and multiple other financial institutions out of at least $5 million and impacted thousands of customers, was organized by Marius Vintila, 34, also a native of Romania.
Vintila and Bogdan Radu, 34, designed and constructed sophisticated card-reader devices and pinhole camera panels capable of reading and storing customers’ bank account information and personal identification numbers. Carabus and others then secretly installed devices onto bank ATMs and removed them a few days later after they had recorded customer bank account information as customers performed routine bank transactions at ATMs.
The stolen data was used to create thousands of fraudulent ATM cards, which Carabus and others used to withdraw millions of dollars from customers’ bank accounts.
The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for Feb. 23, 2017.
The ATM skimming operation in which Carabus participated is one of the largest ever uncovered by law enforcement. To date, 15 of the 16 individuals that have been charged in connection with this scheme, including Carabus, Vintila and Radu, have been convicted.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, Newark Field
Office, under the direction of Special Agent in Charge Mark McKevitt, and special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence S. Opiola in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the Special Prosecutions Division and David M. Eskew of the Criminal Division in Newark.
Defense Counsel: Joseph M. Corazza Esq., Sparta, New Jersey
Meisum Bakery, Inc. and Owner Plead Guilty to Food Stamp FraudRead the Press Release
BOSTON – Meisum Bakery, Inc. and its owner, Xi Xian Lei, pleaded guilty today in U.S. District Court in Boston in connection with a $740,000 food stamp fraud scheme that Lei and his employees operated out of a Chinatown bakery.
Both Meisum Bakery, Inc. and Lei pleaded guilty to one count of conspiracy to commit SNAP (Supplemental Nutritional Assistance Program) benefits fraud and two counts of SNAP fraud. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Feb. 22, 2017.
SNAP, formerly known as the Food Stamp Program, administered by the U.S. Department of Agriculture (USDA), provides eligible households with government subsidies for food and allows holders to exchange their SNAP benefits for food at authorized retail food stores.
From about October 2010 through April 2012, Lei and bakery employees purchased SNAP benefits from legitimate SNAP beneficiaries for cash at a discounted value of approximately fifty cents for every SNAP dollar; however, neither Meisum Bakery, Inc. nor Lei was authorized to accept SNAP benefits as payment for goods at the bakery. Then, bakery employees and Lei redeemed the SNAP benefits by using the beneficiaries’ Electronic Benefit Transfer (EBT) cards to buy goods and earn credit at stores that were authorized to accept SNAP benefits.
During the course of the conspiracy, Meisum Bakery, Inc. and Lei defrauded the USDA of approximately $740,000 in SNAP funds.
The charge of conspiracy provides for a sentence of no greater than five years in prison and three years of supervised release, and for a corporation, no greater than five years of probation and a fine of $500,000. The charge of SNAP fraud provides for a sentence of no greater than five years in prison and three years of supervised release, and for a corporation, no greater than five years of probation and a fine of $10,000. 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; William G. Squires, Special Agent in Charge of the U.S. Department of Agriculture, Office of Inspector General, Office of Investigations, Northeast Region; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Boston Police Commissioner William Evans, made the announcement today. Assistant U.S. Attorney Giselle J. Joffre of Ortiz’s Major Crimes Unit is prosecuting the case.
McAlester Man Sentenced to 84 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that LUKE AUSTIN HOMER, age 36, of McAlester, Oklahoma, was sentenced to 84 months imprisonment for POSSESSION WITH INTENT TO DISTRIBUTE MORE THAN 5 GRAMS OF ACTUAL METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
The Indictment alleged that on or about March 5, 2016, in the Eastern District of Oklahoma, the defendant, LUKE AUSTIN HOMER, did knowingly and intentionally possess with intent to distribute more than 5 grams of actual methamphetamine, a Schedule II controlled substance.
The charge arose from an investigation by the Pittsburg County Sherriff’s Office, and the Drug Enforcement Administration.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshals Service pending transportation to the designated federal facility at which, the nonparoleable sentence will be served.
Assistant United States Attorney Timothy Hammer represented the United States.
Man Convicted of Threatening to Take the Life of the President of the United StatesRead the Press Release
RENO, Nev.—A man was convicted on Wednesday for threatening to take the life of the President of the United States, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“Threatening to take the life of the nation’s Commander in Chief will be taken seriously and investigated and prosecuted to the fullest extent of the law,” said U.S. Attorney Bogden.
Steven Eugene Ford, aka Job Ford, aka Eleazar Melchizedek, 50, was found guilty of making a threat to take the life of the President of the United States. Ford was charged by a grand jury on March 9, 2016. United States District Judge Howard D. McKibben presided over the jury trial.
According to court documents, on or about March 1, 2016, Ford told a White House telephone operator that “I’m going to kill that president. I hate him.” During an interview, Ford admitted to making the threats.
Sentencing is scheduled for Feb. 7, 2017. Ford faces the statutory penalty of five years in prison and a $250,000 fine.
The case was investigated by the U.S. Secret Service, and prosecuted by Assistant U.S. Attorney Brian L. Sullivan.
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Man Admits to Receiving Child Pornography on the InternetRead the Press Release
Contact Person: Bill Day (803) 929-3000
Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Richard J. Probst, age 65, formerly of Columbia, South Carolina has entered a guilty plea in federal court in Columbia, to receiving child pornography that had traveled in foreign commerce by computer, a violation of 18 U.S.C. § 2252A. United States District Judge Mary Geiger Lewis accepted the guilty plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Probst had been collecting child pornography since 1986. Probst was caught when the German Federal Police reported to the U.S. Department of Homeland Security that they had discovered a Peer to Peer Network that involved trading child pornography. The investigation revealed that Probst was one of the individuals receiving child pornography from the Network. Ms. Drake stated the maximum penalty for receiving child pornography is imprisonment for 20 years plus Supervised Release for life and/or a fine of $250,000.
The case was investigated by agents of the Department of Homeland Security and the German Federal Police Department. Assistant United States Attorney William E Day, II of the Columbia office is prosecuting the case.#####
Louisiana Check Cashers Sentenced for Conspiracy and Filing False Income Tax ReturnRead the Press Release
Agree to Forfeit $4.1Million
A Kenner, Louisiana couple was sentenced today for crimes related to the operation of their check cashing business, VJ Discount Inc., announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Kenneth A. Polite for the Eastern District of Louisiana.
Susantha Wijetunge, aka VJ, 52, was sentenced by U.S. District Court Judge Lance M. Africk of the Eastern District of Louisiana to serve 44 months in prison and his spouse, Manula Wijetunge, aka Manu, 48, was sentenced by Judge Africk to serve three years of probation. The Wijetunges owned VJ Discount Inc., a Louisiana corporation that operated a convenience store and check cashing business in Kenner. Susantha Wijetunge, VJ Discount Inc. and others cashed, for an inflated fee, fraudulently obtained tax refund checks for multiple co-conspirators. These transactions often involved multiple checks and tens of thousands of dollars. In an attempt to conceal this illegal activity, Susantha Wijetunge and others failed to file, or filed false, required currency transaction reports with the government.
Susantha Wijetunge also filed multiple false individual and corporate income tax returns that underreported income. The Wijetunges admitted that VJ Discount Inc. had third party check deposits totaling more than $59 million in 2011; $47 million in 2012; and $66 million in 2013. Despite this large volume of business, the Wijentunges’ individual income tax returns reported total income of less than $100,000 per year.
In March 2016, Susantha Wijetunge pleaded guilty to conspiring to defraud the United States and to committing mail and wire fraud, and Manula Wijetunge pleaded guilty to willfully filing a false 2013 individual income tax return.
In addition to the term of prison imposed, Susantha Wijetunge was ordered to serve three years of supervised release, pay a fine of $750,000 and pay $562,500 in restitution to the IRS. In addition to the term of probation imposed, Manula Wijetunge was ordered to pay a fine of $250,000 and $208,125 in restitution to the IRS. The Wijetunges were ordered to forfeit $4.1 million.
Principal Deputy Assistant Attorney General Ciraolo and U. S. Attorney Polite commended special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and IRS – Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorneys Hayden Brockett and David Haller and Trial Attorney Michael Hatzimichalis of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Louisiana Check Cashers Sentenced for Conspiracy and Filing False Income Tax ReturnRead the Press Release
WASHINGTON – A Kenner, Louisiana couple was sentenced today for crimes related to the operation of their check cashing business, VJ Discount Inc., announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Kenneth A. Polite for the Eastern District of Louisiana.
Susantha Wijetunge, aka VJ, 52, was sentenced by U.S. District Court Judge Lance M. Africk of the Eastern District of Louisiana to serve 44 months in prison and his spouse, Manula Wijetunge, aka Manu, 48, was sentenced by Judge Africk to serve three years of probation. The Wijetunges owned VJ Discount Inc., a Louisiana corporation that operated a convenience store and check cashing business in Kenner. Susantha Wijetunge, VJ Discount Inc. and others cashed, for an inflated fee, fraudulently obtained tax refund checks for multiple co-conspirators. These transactions often involved multiple checks and tens of thousands of dollars. In an attempt to conceal this illegal activity, Susantha Wijetunge and others failed to file, or filed false, required currency transaction reports with the government.
Susantha Wijetunge also filed multiple false individual and corporate income tax returns that underreported income. The Wijetunges admitted that VJ Discount Inc. had third party check deposits totaling more than $59 million in 2011; $47 million in 2012; and $66 million in 2013. Despite this large volume of business, the Wijentunges’ individual income tax returns reported total income of less than $100,000 per year.
In March 2016, Susantha Wijetunge pleaded guilty to conspiring to defraud the United States and to committing mail and wire fraud, and Manula Wijetunge pleaded guilty to willfully filing a false 2013 individual income tax return.
In addition to the term of prison imposed, Susantha Wijetunge was ordered to serve three years of supervised release, pay a fine of $750,000 and pay $562,500 in restitution to the IRS. In addition to the term of probation imposed, Manula Wijetunge was ordered to pay a fine of $250,000 and $208,125 in restitution to the IRS. The Wijetunges were ordered to forfeit $4.1 million.
Principal Deputy Assistant Attorney General Ciraolo and U. S. Attorney Polite commended special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and IRS – Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorneys Hayden Brockett and David Haller and Trial Attorney Michael Hatzimichalis of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Lebanon County Man Indicted for Coercing A Minor to Perform Sex ActsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Kerry Edward Tropasso, age 35, of Lebanon County, was indicted on November 16, 2016, by a federal grand jury on charges relating to the sexual abuse of children.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Tropasso used a minor victim to transmit live visual depictions of the minor engaged in sexual activity; coercing and enticing the minor to engage in sexual activity; distributing images depicting the sexual abuse of a minor; and receiving obscene visual depictions of the sexual abuse of children.
This case was investigated by the United States Postal Inspection Service, the Pennsylvania State Police, with assistance from the Lancaster County Detectives Office and the Northern Lebanon Township Police Department. The case is being prosecuted by Assistant United States Attorney Daryl Bloom.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Las Vegas Illusionist Pleads Guilty to Possession, Receipt, and Distribution of Child PornographyRead the Press Release
LAS VEGAS, Nev.—A former Las Vegas illusionist pleaded guilty today before U.S. District Chief Judge Gloria M. Navarro to possession, receipt, and distribution of child pornography, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“The risk to our children from sexual predators is constant and continuing,” said U.S. Attorney Bogden. “We will continue to aggressively investigate and prosecute these disturbing cases and dangerous defendants as part of our implementation of the Project Safe Childhood initiative throughout Nevada. The Court may consider any counts dismissed under the Plea Agreement and all other relevant conduct, whether charged or uncharged, in determining the appropriate sentence to be imposed in this case.”
Jan Rouven Fuechtener, aka Lars Schmidt, 39, a citizen of Germany, was indicted on March 30, 2016. Sentencing has been scheduled for March 16, 2017, before Chief Judge Navarro.
According to court documents and admissions made in court, on August 2015, a Task Force Officer from the FBI Buffalo Field Office Child Exploitation Task Force in New York, operating in an undercover capacity, was accepted as a friend by user name “Lars45” on GigaTribe, a peer-to-peer file sharing program. On Sept.14, 2015, the officer used the password previously supplied by Lars45 and was able to access and browse Lars45’s shared directories. The officer downloaded numerous files after observing file titles indicative of child pornography. On Jan. 21, 2016, during the execution of a search warrant at the defendant's residence in Las Vegas, law enforcement seized 38 devices throughout the residence. A forensic examination of the seized devices revealed that there were over 9,000 videos depicting children engaging in sexually explicit conduct. Fuechtener admitted that the Lars45 GigaTribe account belonged to him.
Fuechtener further admitted to using the Skype username “larusa22” to engage in chats to offer to distribute child pornography by sharing his GigaTribe Lars45 folder in exchange for a thing of value. Skype user account larusa22 is associated with an email address belonging to Fuechtener.
At the time of sentencing, Fuechtener will face a statutory maximum penalty of 20 years in prison for each count and a five year minimum mandatory on two counts.
The case was investigated by the FBI, and prosecuted by Assistant U.S. Attorneys Elham Roohani and Lisa C. Cartier-Giroux.
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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, please visit www.justice.gov/psc.
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Lanham Drug Dealer Sentenced to over 12 Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore J. Chuang sentenced Gloria Patricia Taylor, age 52, of Lanham, Maryland today to 146 months in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute 1000 kilograms or more of marijuana, two counts of use of a communication device to facilitate narcotics trafficking, and possession with intent to distribute 100 kilograms or more of marijuana. Judge Chuang also entered an order requiring Taylor to forfeit $3.7 million. Taylor was convicted by a federal jury on April 28, 2016.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division.
According to evidence presented at her seven-day trial, on July 1, 2013, law enforcement officers intercepted three crates containing a total of approximately 630 kilograms of marijuana at a nationwide delivery company with a shipping office located in Maryland. All three crates were shipped from Tucson, Arizona. The crates were addressed to companies in in Landover and Lanham, Maryland. The bill of lading for the shipments described the contents as “Stone Group, Amethyst Stone,” and “Stone Group, Aragonite.” In total, the bales of marijuana from those three crates weighed over 1300 pounds, which evidence at trial showed was approximately $1.3 million dollars’ worth of marijuana.
According to trial evidence, records showed that at least 28 additional crates shipped from Arizona to those and other companies were sent from March 2011 through October 2013. The shipping company driver who delivered the packages testified that Taylor accepted delivery of and signed fictitious names for each of the crates (with the exception of 5 or so shipments, which were delivered to an associate of Taylor’s, at Taylor’s request), and that none of the crates were delivered to the addresses found on the bills of lading. Evidence at trial further showed that none of the delivery addresses on the bills of lading were in any way associated with any of the businesses. Taylor tipped the driver approximately $100 for each delivery.
Trial testimony showed that the driver first met Taylor when he attempted to deliver a crate to one of the companies. When the driver arrived at the address listed on the bill of lading, the individuals at that address did not accept the package. Shortly thereafter, Taylor contacted the driver and asked him to deliver the package to a location around the corner. Taylor arrived at the delivery spot with a U-Haul. Taylor requested that the driver become her regular delivery driver for all future deliveries. According to trial testimony, prior to each delivery, Taylor would contact the driver by telephone and inform him that the crates were arriving at the shipping company in Maryland. The day of the delivery, Taylor would call the driver to let him know where to make the delivery. When law enforcement intercepted the three crates in July 2013, shipping company personnel told the driver that drugs were found in the crates. The driver confronted Taylor, who apologized for getting him involved, and offered to pay the driver $10,000 to get the crate back and also offered him a new cell phone so that they could communicate. The driver refused the money and the cell phone and cut off all communication with Taylor. Taylor stopped using the shipping company.
The government’s evidence showed that Taylor traveled to Arizona during the same time period each of the shipments were shipped from Tucson, Arizona to Maryland. Even after Taylor stopped using the Maryland shipping company in July 2013, she continued to travel to and from Arizona and Maryland, renting a U-Haul within days of each return to Maryland, including in October 2013, January 2014, February 2014, April 2014, July 2014, and September 2014.
According to trial evidence, after Taylor returned to Maryland from Arizona on September 30, 2014, she rented a U-Haul van, which she drove to Washington, DC, and then back to her residence. On that same date, law enforcement executed a search warrant at Taylor’s residence and the U-Haul van. Law enforcement recovered 250 pounds of marijuana (approximately 130 kilograms) from a crate that Taylor was seen unloading from the U-Haul van, and nine cell phones from throughout the residence. In addition, within her master bedroom, law enforcement recovered additional marijuana, over $30,000 in cash, and drug ledgers which calculated Taylor’s sales and profit from her marijuana business.
The government’s evidence showed that, just between October 2012 and July 2013, Taylor shipped approximately 5,220 pounds (approximately 2,367 kilograms) of marijuana, worth approximately $5 million.
United States Attorney Rod J. Rosenstein praised the DEA for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kelly O’Connell Hayes and Bryan E. Foreman, who prosecuted the case.
Konawa Woman Sentenced to 60 Months Probation, $45,000 Restitution for Theft of Government FundsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that JOANNA MARY HARJO, age 63, of Konawa, Oklahoma, was sentenced to 5 years of probation, to be supervised by the United States Probation Office, and ordered to pay restitution to the United States Social Security Administration in the amount of $45,736.08 for THEFT OF GOVERNMENT FUNDS, in violation of Title 18, United States Code, Section 641.
The Information alleged that on or about September 2008, and continuing to, on or about March 2015, in the Eastern District of Oklahoma the Defendant, JOANNA MARY HARJO, concealed the true nature of her living arrangements and marital status from the United States Social Security Administration so that she could receive more Social Security Supplemental Security Income benefits than what she would have been eligible to receive, and thus, converted money belonging to the United States Social Security Administration to her own use or gain knowing it was not hers and intending to deprive the United States Social Security Administration of the use and benefit of this money.
The charge arose from an investigation by the United States Social Security Administration.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Kristin Harrington represented the United States.
Kenel Man Sentenced for Conspiracy to Distribute a Controlled Substance and Prohibited Person in Possession of a FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a Kenel, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance and Prohibited Person in Possession of a Firearm was sentenced on November 10, 2016, by U.S. District Judge Charles B. Kornmann.
Kelly Moore, age 39, was sentenced to 92 months of custody, followed by 3 years of supervised release, a $1,000 fine, and a $200 special assessment to the Federal Crime Victims Fund. In addition, two firearms found in Moore’s possession at the time of his arrest were ordered forfeited.
Moore was indicted by a federal grand jury on December 8, 2015. He pled guilty to both charges on August 22, 2016.
The conviction stems from a search warrant that was executed on Moore’s residence by Bureau of Indian Affairs police on July 22, 2015. Found during the search of the residence were two firearms, ammunition, prescription pills, drug packaging material, scales, and drug paraphernalia. In addition, Moore had 5 small baggies in his pocket, 4 of which contained Methamphetamine. Moore was placed under arrest and subsequently admitted to being involved in a conspiracy to distribute Methamphetamine across the Standing Rock Indian Reservation. As part of the conspiracy, Moore admitted to selling approximately 350 grams of Methamphetamine.
This case was investigated by the Bureau of Indian Affairs-Office of Justice Services, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Moore was immediately remanded to the custody of the Bureau of Prisons to begin serving his sentence.
Jury Renders Guilty Verdict in Heroin Overdose Death; Defendant Faces Mandatory Life SentenceRead the Press Release
Gregory J. Haanstad, U.S. Attorney for the Eastern District of Wisconsin, announced that on November 16, 2016, Donald S. Harden (age: 47) of Fort Atkinson, Wisconsin, was found guilty following a jury trial in federal court in Green Bay, Wisconsin, of conspiracy to distribute and possess with the intent to distribute heroin in violation of Title 21, United States Code, Sections 846 and 841(b)(1)(B). The jury also found beyond a reasonable doubt that the conspiracy involved 100 grams or more of heroin and that the heroin distributed by Harden resulted in the overdose death of Neenah, Wisconsin, resident Frederick J. Schnettler (age: 24) in September 2014.
The evidence at trial revealed that Harden purchased kilograms of heroin in Chicago, Illinois, and using a “stash house” in Watertown, Wisconsin, repackaged the heroin for distribution in the Fox Valley area and elsewhere. Throughout the late Spring and Summer of 2014, Harden would deliver heroin to mid-level distributors in the Fox Valley; those distributors in-turn would deal smaller amounts to numerous heroin users throughout the area.
On September 4, 2014, Harden arranged a meeting with one of his Fox Valley distributors at a retail parking lot in Waupun, Wisconsin. At that meeting, Harden gave 11 grams of heroin to one of his co-conspirators warning her “be careful with this stuff, it’s got bodies on it.” That heroin was later used by Schnettler and others, resulting in his death from “acute heroin toxicity” according to the Medical Examiner. Another overdose death linked to Harden’s heroin was discovered by Winnebago County Sheriff’s investigators days later.
Harden was convicted of the manufacture or delivery of cocaine in 2000 in Jefferson County Circuit Court, and manufacture or delivery of heroin in 2007 in Dane County Circuit Court.
Based on his prior felony drug convictions and the jury’s determination that he is responsible for the death of Frederick Schnettler, Harden faces a mandatory life sentence when he is sentenced by Chief Federal Judge William C. Griesbach in February 2017. He remains incarcerated pending that hearing.
The case was investigated by the Winnebago County Sheriff’s Office, Lake Winnebago Area Metropolitan Enforcement Group – Drug Unit, the City of Appleton Police Department, the Jefferson and Dodge County Drug Task Forces, the Oshkosh Police Department, the Fond du Lac County Medical Examiner’s Office, and the Wisconsin State Crime Laboratory. It is being prosecuted by Assistant United States Attorneys Daniel R. Humble and Andrew J. Maier.
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For further information contact:
Public Information Officer Dean Puschnig
(414) 297-1700
Jury Convicts St. Croix Man on Attempted Murder ChargesRead the Press Release
St. Croix, USVI B On November 15, 2016, after a five-day trial, a federal jury on St. Croix convicted Daniel Carino, 34, of St. Croix, Virgin Islands, of possession of a firearm during a violent crime, attempted murder and assault third degree, United States Attorney Ronald W. Sharpe announced today.
Evidence presented at trial established that on December 19, 2015, Carino encountered the victim at the Concordia garbage bin site in Frederiksted, St. Croix. An argument ensued during which Carino drew a firearm and shot the victim in the chest. Though shot, the victim wrestled the firearm away from Carino who then ran into his vehicle and drove away. Later that evening, the victim selected Carino from a photo array while at the emergency room. Police apprehended Carino at a festival event that night.
Carino faces a mandatory minimum sentence of ten years on the firearm possession charge and a maximum of life imprisonment, plus a maximum fine of $250,000. He also faces maximum sentences of 25 years and 5 years on the attempted murder and assault conviction, along with a fine of $500 to $3,000 on the assault conviction. A sentencing date has been set for March 16, 2016. Carino remains detained pending sentencing.
The case was investigated by the Virgin Islands Police Department and the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Alphonso Andrews, Jr.
Jury Convicts New Albany Man in Cocaine Traficking ConspiracyRead the Press Release
COLUMBUS, Ohio – A U.S. District Court jury convicted Oscar Collado-Rivera, 32, of New Albany, Ohio of conspiring with others to distribute nearly 200 kilograms of cocaine involving at least $4 million in U.S. currency over a six-month period in 2015.
U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio, Timothy Plancon, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and agencies in a state and local task force announced the verdict reached yesterday following a three-day trial before U.S. District Judge Michael H. Watson.
Evidence presented during the trial established that Collado-Rivera and others were responsible for arranging large shipments of cocaine from Mexico and Texas into the Columbus area.
“Collado-Rivera is the ninth defendant convicted out of 12 defendants charged in April,” U.S. Attorney Glassman said. “Disrupting the networks that bring illegal drugs into central Ohio requires tremendous cooperation by federal, state and local agencies.” Glassman noted that the three remaining defendants are believed to have fled the United States.
The jury convicted Collado-Rivera of one count of conspiracy to possess with intent to distribute more than five kilograms of cocaine, a crime punishable by a mandatory minimum ten years in prison and up to life. Judge Watson will determine the sentence following a pre-sentence investigation by the court. Task Force officers arrested Collado-Rivera in December 2015 based on a federal criminal complaint. He has been in custody since his arrest.
Glassman commended Franklin County Sheriff Zach Scott’s Office, the Ohio State Highway Patrol, and the investigators with police departments in Pickerington, Upper Arlington and Westerville who conducted the investigation, as well as Deputy Criminal Chief Michael Hunter and Appellate Chief Mary Beth Young, who represent the United States in prosecuting the case.
Judge Revokes Probated Sentence of Manager of Metal Recovery BusinessRead the Press Release
PLANO, Texas – A 61-year-old Quinlan, Texas man, who had originally received a probated sentence for negligently releasing an extremely hazardous substance into the air, has been sentenced to three months in prison to be followed by three months of home confinement, announced Acting U.S. Attorney Brit Featherston today.
U.S. Magistrate Judge Kimberly C. Priest-Johnson imposed the sentence November 15, 2016 on William “Bill” Lafon Musgrove, 61, after finding that Musgrove had violated the conditions of his probation by returning to the metal recovery business without the proper equipment or a permit. Musgrove originally pleaded guilty on August 7, 2013 to the offense of Negligent Release of an Extremely Hazardous Substance. On June 21, 2013, the United States Attorney’s Office for the Eastern District of Texas filed an information charging Musgrove with the offense. Musgrove admitted that in June of 2011, as the vice president and operations manager of Industrial Precious Metals Recovery Incorporated (IPMR), in Royse City, Texas, he allowed their metal recovery process to release Nitrogen Oxides, or “NOx” into the ambient air at ground level, through an open doorway, instead of utilizing the company’s air scrubber which was broken at the time. Musgrove admitted that he should have known that releasing NOx in that manner would place people in imminent danger of death or serious bodily injury. Fortunately, no actual injuries occurred.
Federal environmental regulations characterize Nitrogen Oxides as an “extremely hazardous substance.” At the time, the IPMR facility in Royse City was adjacent to other commercial facilities with employees that were present during the NOx emissions. The facility has since closed.
This case was investigated by the United States Environmental Protection Agency, Criminal Investigations Division, Region VI, Dallas, Texas, and the Texas Commission on Environmental Quality (TCEQ) Environmental Crimes Unit and prosecuted by Assistant U.S. Attorney Jim Noble.
Jacksonville Man Pleads Guilty to Soliciting and Paying for Live Molestation of Children over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Justin Laurence McKinley (49, Jacksonville) has pleaded guilty to sending notices over the Internet soliciting the live molestation of children for online viewing. He faces a mandatory minimum penalty of 15 years, up to 30 years, in federal prison and a potential life term of supervision.
According to court documents, in 2015, the FBI began an investigation into a website engaging in the exploitation and enticement of children to participate in sexual activity. The FBI identified several individuals located in the United States that were associated with this website. Further investigation revealed that several individuals in a foreign country were engaged in the molestation of young children for the purpose of broadcasting live streaming “sex shows” to online viewers who had paid a fee. The individuals were arrested and McKinley was identified as one of the individuals who paid to view these live streaming “sex shows.” Between January 2014 and December 2015, McKinley sent a total of 100 electronic fund transfers, totaling $31,415, to the individuals who molested the children in the “sex shows.”
On May 27, 2016, law enforcement officers executed a federal search warrant at McKinley’s residence. During an interview, McKinley admitted that he had solicited others to molest children and live stream video of the conduct to him, and he further admitted that he had recorded many of the sessions. The victims depicted in the streaming videos ranged in age from a newborn to an 8-year-old child. Forensic analyses of McKinley’s computer media revealed that a particular external hard drive contained at least 613 videos and 6,846 images depicting the sexual abuse of children.
This case was investigated by the Federal Bureau of Investigation, the Jacksonville Sheriff’s Office, and law enforcement authorities in several other countries. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
JPMorgan’s Investment Bank in Hong Kong Agrees to Pay $72 Million Penalty for Corrupt Hiring Scheme in ChinaRead the Press Release
JPMorgan Securities (Asia Pacific) Limited (JPMorgan APAC), a Hong Kong-based subsidiary of multinational bank JPMorgan Chase & Co. (JPMC), agreed to pay a $72 million penalty for its role in a scheme to corruptly gain advantages in winning banking deals by awarding prestigious jobs to relatives and friends of Chinese government officials.
Assistant Attorney General Leslie R. Caldwell of the Criminal Division, U.S. Attorney Robert L. Capers of the Eastern District of New York and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.
“The so-called Sons and Daughters Program was nothing more than bribery by another name,” said Assistant Attorney General Caldwell. “Awarding prestigious employment opportunities to unqualified individuals in order to influence government officials is corruption, plain and simple. This case demonstrates the Criminal Division’s commitment to uncovering corruption no matter the form of the scheme.”
“U.S. businesses cannot lawfully seek to gain a business advantage by corruptly influencing foreign government officials,” said U.S. Attorney Capers. “The common refrain that this is simply how business is done overseas is no defense. In this case, JPMorgan employees designed a program to hire otherwise unqualified candidates for prestigious investment banking jobs solely because these candidates were referred to the bank by officials in positions to award business to the bank. In certain instances, referred candidates were hired with the understanding that the hiring was linked to the award of specific business. This is no longer business as usual; it is corruption.”
“Creating a barter system in which jobs are awarded to applicants in exchange for lucrative business deals is a corrupt scheme in and of itself,” said Assistant Director in Charge Sweeney. “But when foreign officials are among those involved in the bribe, the international free market system and our national security are among the major threats we face. Those engaging in these illegal acts abroad may think they're out of sight and out of mind, but they're wrong. The FBI has recently established three dedicated international corruption squads to combat this type of quid pro quo, and we'll use all resources at our disposal to uncover and put an end to these crimes.”
According to JPMorgan APAC’s admissions, beginning in 2006, senior Hong Kong-based investment bankers set up and used a “client referral program,” also referred to as the “Sons and Daughters Program,” to hire candidates referred by clients and government officials. The Sons and Daughters Program was used as a means to influence those same officials to award investment deals to JPMorgan APAC. By late 2009, JPMorgan APAC executives and senior bankers revamped the client referral program to improve its efficacy by prioritizing those hires linked to upcoming client transactions. In order to be hired, a referred candidate had to have a “directly attributable linkage to business opportunity.”
According to admissions made in connection with the resolution, these quid pro quo arrangements were discussed internally among JPMorgan APAC bankers. For example, in late 2009, a Chinese government official communicated to a senior JPMorgan APAC banker that hiring a referred candidate would significantly influence the role JPMorgan APAC would receive in an upcoming initial public offering (IPO) for a Chinese state-owned company. The banker communicated this message to several senior colleagues, who then spent several months trying to place the referred candidate in an investment banking position in New York. Despite learning from personnel in New York that this referred candidate was not qualified for an investment banking position, senior JPMorgan APAC bankers created a new position for the candidate in New York, and JPMorgan APAC thereafter obtained a leading role in the IPO. Further, JPMorgan APAC employees misused compliance questionnaires to justify and paper over corrupt business arrangements. Employees also used a template with pre-filled answers, including that there was “no expected benefit” from the hire, and compliance personnel drafted and modified questionnaires that failed to state the true purpose of the hire.
JPMorgan APAC further admitted that candidates hired during the scheme were typically given the same titles and paid the same amount as entry-level investment bankers, despite the fact that many of these hires performed ancillary work such as proofreading and provided little real value to any deliverable product.
The corrupt scheme netted JPMorgan APAC at least $35 million in profits from business mandates with Chinese state-owned companies.
JPMorgan APAC entered into a non-prosecution agreement and agreed to pay a criminal penalty of $72 million to resolve the matter. As part of the agreement, JPMorgan APAC has agreed to continue to cooperate with the department in any ongoing investigations and prosecutions relating to the conduct, including of individuals, to enhance its compliance program, and to report to the department on the implementation of its enhanced compliance program.
The department reached this resolution based on a number of factors, including that JPMorgan APAC did not voluntarily and timely disclose the conduct at issue. However, JPMorgan APAC did receive full credit for its and JPMC’s cooperation with the criminal investigation, including conducting a thorough internal investigation, making foreign-based employees available for interviews in the United States and producing documents to the government from foreign countries in ways that did not implicate foreign data privacy laws. JPMorgan APAC also took significant employment action against six employees who participated in the misconduct resulting in their departure from the bank, and it disciplined an additional 23 employees who, although not involved in the misconduct, failed to effectively detect the misconduct or supervise those engaged in it. JPMorgan APAC imposed more than $18.3 million in financial sanctions on former or current employees in connection with the remediation efforts. Based on these actions and other considerations, the company received a non-prosecution agreement and an aggregate discount of 25 percent off of the bottom of the U.S. Sentencing Guidelines fine range.
In related proceedings, the U.S. Securities and Exchange Commission (SEC) filed a cease and desist order against JPMC, whereby JPMC agreed to pay $130.5 million in disgorgement to the SEC, including prejudgment interest. The Federal Reserve System’s Board of Governors also issued a consent cease-and-desist order and assessed a $61.9 million civil penalty. Thus, the combined U.S. criminal and regulatory penalties paid by JPMC and its Hong Kong subsidiary are approximately $264.4 million.
The FBI’s New York Field Office investigated the case. The department appreciates the significant cooperation and assistance provided by the SEC and the Federal Reserve Bank of New York in this matter. Assistant Deputy Chief Leo Tsao and Trial Attorneys James P. McDonald and Derek J. Ettinger of the Criminal Division’s Fraud Section and Assistant U.S. Attorney James P. Loonam of the Eastern District of New York’s Business and Securities Fraud Section prosecuted the case.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.