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21 December 2016
Inmate Charged with Assault and Possession of ContrabandRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Levar Washington, age 37, inmate at United States Penitentiary, Allenwood (USP Allenwood), was indicted on December 20, 2016, by a federal grand jury for assault with a dangerous weapon and possession of contraband.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Washington attacked another inmate with a sharpened weapon commonly called a “shank.” The victim suffered multiple stab wounds.
The case was investigated by the Federal Bureau of Investigation and USP Allenwood. Assistant United States Attorney Sean A. Camoni is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the assault offense 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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Indictment: Bank Employees Recognized Robber as Customer of the BankRead the Press Release
WICHITA, KAN. – A federal grand jury returned an indictment Wednesday charging a Wichita woman with bank robbery, U.S. Attorney Tom Beall said.
Christina A. Messerschmidt, 25, Wichita, Kan., is charged with one count of bank robbery. The indictment alleges that on Dec. 16, 2016, Messerschmidt robbed Intrust Bank at 1544 S. Webb in Wichita. Court documents allege she gave a teller a note written on a deposit slip saying, “Give me $1,000 or I will shoot you.” She told the teller, “If you push it, I’ll do it.”
Bank employees told police they recognized the woman as a customer who had opened an account in November and they provided police with her address, leading to her arrest.
If convicted, she faces up to 20 years in federal prison and a fine up to $250,000. The FBI and the Wichita Police investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Other Indictments
Miguel Arreola-Rosas, 37, Kansas City, Kan., is charged with unlawfully re-entering the United States after being deported. He was found in Wyandotte County, Kan.
If convicted, he faces up to two years in federal prison. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Trent Krug is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Idabel Man Sentenced to 87 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that LOUIS WESLEY FRADY, age 51, of Idabel, Oklahoma, was sentenced to 87 months imprisonment and 3 years supervised release for FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e)(1).
The Indictment alleged that on or about November 3, 2015, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm. which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Idabel Police Department, the McCurtain County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Judge Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody pending transportation to the designated federal facility at which, the nonparoleable sentence will be served.
Assistant United States Attorney Dean Burris represented the United States.
Howard County Man Sentenced to 11 Years in Federal Prison on Gun and Drug ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Ayodele Amon Olukotun, a/k/a 40 Caliber and Bizzle, age 28, of Laurel, Maryland, today to 11 years in prison, followed by five years of supervised release, for possession of a firearm in furtherance of a drug trafficking crime, and for possession with intent to distribute phencyclidine, commonly known as PCP.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief Gary Gardner of the Howard County Police Department; and Howard County State’s Attorney Dario Broccolino.
According to his guilty plea, from June through November 2015, Olukotun distributed significant quantities of PCP in Howard County, Maryland, primarily in the Whiskey Bottom Road area of Laurel. Olukotun also admitted that he distributed heroin. On at least nine occasions during the investigation, undercover officers purchased drugs from Olukotun. The officers purchased a total of 306 grams of PCP and five grams of heroin from Olukotun for $7,965.
In connection with an undercover buy on November 4, 2015, Howard County Police Department detectives saw Olukotun place two backpacks in the trunk of a vehicle. The detectives knew from their investigation that Olukotun used the vehicle as a “stash” location for his drugs. Law enforcement conducted a canine scan of the vehicle and the canine alerted to the presence of narcotics. A subsequent search of the vehicle resulted in the seizure of 5,177.2 grams of PCP and a loaded .38 caliber revolver, which was found in close proximity to the PCP in the trunk. Olukotun admitted that he used the gun for protection and to advance his drug trafficking business.
United States Attorney Rod J. Rosenstein commended the DEA, Howard County Police Department, and Howard County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Derek E. Hines and Leo J. Wise, who prosecuted the case.
Harrisburg Man Indicted on Federal Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Johnnie Zeigler, age 37, of Harrisburg, Pennsylvania, was indicted by a federal grand jury on a federal firearms charge.
According to United States Attorney Bruce D. Brandler, Zeigler was charged in a one count indictment for being a convicted felon illegally in possession of two loaded guns and ammunition. The charges arise out of an incident in Harrisburg where Zeigler was arrested and police seized a canvas bag containing a Remington Arms 22 LR Rifle, Harrington and Richardson .22 caliber revolver, and ammunition.
The investigation was conducted by the Harrisburg Police Department and the Harrisburg Resident Office of the Bureau of Alcohol, Tobacco and Firearms. Assistant United States Attorney William A. Behe is prosecuting the case.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes with firearms.
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 the drug charge is a 10-year term of imprisonment, a term of supervised release following imprisonment, and a $250,000 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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Four Nuestra Familia Gang Members Sentenced in California for Their Roles in Racketeering Conspiracy, Murder and Related OffensesRead the Press Release
Four members of the Nuestra Familia gang were sentenced to prison today—including a life sentence for one senior gang member—for participating in a variety of violent criminal acts, including racketeering conspiracy, murder, robbery and conspiracy to distribute controlled substances and other related offenses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Brian J. Stretch of the Northern District of California and Special Agent in Charge John Bennett of the FBI’s San Francisco Division made the announcement.
“Criminal enterprises like the Nuestra Familia may spawn in prisons, but they often spread into our communities and onto our streets, bringing violence and mayhem with them,” said Assistant Attorney General Caldwell. “We will continue to target these criminal organizations, dismantle their leadership, and return the violent offenders to prison.”
“Today, four additional members of the Nuestra Familia gang were sentenced for the heinous crimes they perpetrated upon our community, bringing to 12 the number of defendants sentenced as a result of this investigation,” said U.S. Attorney Stretch. “Today’s sentences have a special significance in light of the court’s findings that three of the defendants were among the highest-ranked members of the organization internationally. The sentences reflect the egregious conduct of the defendants who lured and intimidated younger members of the community into being the next generation of gang members ready to accept a life of crime, drugs and violence. It is with gratitude and appreciation that we congratulate the FBI, the Bureau of Prisons and the scores of local law enforcement officials who have brought this six-year investigation to a successful conclusion.”
Alberto Larez, 48, aka Bird, of Salinas, California, was sentenced to life in prison plus 120 months in prison; Henry Cervantes, 52, aka Happy, of Lodi, California, was sentenced to 900 months in prison; Jaime Cervantes, 33, aka Hennessy, of San Mateo, California, was sentenced to 384 months in prison; and Andrew Cervantes, 60, aka Mad Dog, of Stockton, California, was sentenced to 432 months in prison. The four defendants were previously convicted of racketeering conspiracy and other offenses following trial before U.S. District Judge Yvonne Gonzalez Rogers in the Northern District of California in Oakland, California.
According to evidence presented at trial, Nuestra Familia is a prison gang that originally formed in the California state prison system in the 1960s. Nuestra Familia leaders control and direct the gang’s criminal activities both inside and outside of the prison system. The defendants were members or associates of the federal branch of the Nuestra Familia, which was controlled by two principal overseers incarcerated in the Federal Bureau of Prisons (BOP), including Andrew Cervantes, who is currently serving a 210-month sentence for a 1999 racketeering conviction. Larez and Henry Cervantes were senior gang members who reported to Andrew Cervantes. Larez recruited individuals, including Jaime Cervantes, to commit crimes on behalf of the gang and Henry Cervantes supervised the criminal activities of the gang in Oakland. In 2010, Henry Cervantes and Larez were released from the BOP after serving sentences for racketeering conspiracy convictions in 2004 involving the distribution of controlled substances on behalf of the Nuestra Familia.
Evidence presented at trial established that from approximately fall 2010 through March 2013, under the supervision of Henry Cervantes and Larez, members and associates of Nuestra Familia engaged in the trafficking of methamphetamine, cocaine and heroin and committed robberies to raise money for themselves and the gang. At the direction of Andrew Cervantes, Larez instructed his subordinates to send proceeds from their criminal activities to the commissary accounts of gang leaders incarcerated in several BOP facilities, including the account of Andrew Cervantes. Larez communicated with Andrew Cervantes primarily through prison phone calls and correspondence using coded language.
During trial, evidence was presented of the defendants’ involvement in several gang-related murders and attacks. In September 2011, Jaime Cervantes and another gang member burned the bodies of two murder victims in an apartment in Oakland based on orders from Henry Cervantes. In January 2012, Jaime Cervantes and two other gang members committed a home invasion robbery of a drug dealer. During the robbery, Jaime Cervantes beat one victim over the head with a baseball bat and another victim was shot. In August 2012, Larez and two other gang members traveled to San Jose, California, and lured another gang member suspected of cooperating with law enforcement to a “meeting,” where he was shot to death while sitting in his vehicle. In late 2012, while incarcerated at U.S. Penitentiary (USP) Lewisburg, in Pennsylvania, Andrew Cervantes ordered via coded letters the murder of an inmate at USP McCreary in Kentucky. In March 2013, the inmate—whom Andrew Cervantes believed had violated gang rules—was assaulted and stabbed by two Nuestra Familia inmates in the prison dining facility and survived.
Today’s sentencing marks the culmination of a six-year investigation and prosecution of Nuestra Familia, which resulted in the convictions of 12 members and associates of the gang. Eight co-defendants previously pleaded guilty to racketeering conspiracy and other offenses and were sentenced to terms of imprisonment ranging from eight to 15 years.
The FBI Oakland Resident Agency investigated the case with the U.S. Attorney’s Office of the Northern District of California, with assistance from the BOP. The Santa Clara County, California, District Attorney’s Office; Oakland Police Department; San Jose Police Department; Red Bluff, California, Police Department; Livermore, California, Police Department; Campbell, California, Police Department, Alameda County, California, Sheriff’s Office; Tehama County, California, District Attorney’s Office; and Tehama County Sheriff’s Office also assisted in the investigation.
Trial Attorney Robert S. Tully of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Joseph M. Alioto and William Frentzen of the Northern District of California prosecuted the case.
Fort Smith Man Sentenced to Ten Years in Federal Prison for Sex Trafficking of a ChildRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Lance Bradley Williams, aka “Crush, aka “Lil’ Crush”, age 24, of Fort Smith, was sentenced to 120 months in federal prison followed by five (5) years of supervised release and ordered to pay a $3,600 fine on one count of Conspiracy to Commit Sex Trafficking of a Child. The sentencing hearing took place before the Honorable Timothy L. Brooks in the United States District Court in Fayetteville.
According to court records, on August 27, 2015, a 17-year-old female was interviewed by the Federal Bureau of Investigation (FBI). She reported that she had run away from home and came in contact with Randall Steward, a co-conspirator of Williams, of Fort Smith in early June of 2015. She stated she worked as a prostitute for Steward out of a Fayetteville, Arkansas hotel and that backpage.com was used to advertise her as a prostitute. Agents were able to obtain records from the Fayetteville hotel and backpage.com to corroborate the information that the minor female victim had provided. Steward was indicted by a federal grand jury in October, 2015 and pleaded guilty to the charge. He was sentenced on September 22, 2016 to 12 ½ years in federal prison and five (5) years of supervised release.
Through the investigation of Steward, law enforcement was able to identify Lance Bradley Williams as a co-conspirator who was involved with Steward in trafficking the 17-year old girl. Records show that the cell phone number used in the backpage.com ads to advertise the minor female victim was purchased by Williams. At the time the phone was purchased, Williams knew that the phone was to be used to advertise the girl on backpage.com for the purpose of prostitution. Williams was indicted by a federal grand jury on March 16, 2016 and pleaded guilty on August 17, 2016.
“The outcome of this case serves as a sobering warning to those engaged in the sex trafficking of minors and the severe consequences for those who commit such crimes,” said Diane Upchurch, Special Agent in Charge of the FBI in Little Rock. “Together with our federal and local partners at the United States Attorney’s Office, Fort Smith Police Department, Sebastian County Sheriff’s Office, and Crawford County Sheriff’s Office, we will continue to pursue and prosecute anyone who engages in the vile exploitation of our children.”
This case was investigated by the Federal Bureau of Investigation, Fort Smith Police Department, Sebastian County Sheriff’s Office and Crawford County Sheriff’s Office. Assistant United States Attorney Aaron Jennen 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
Former Portfolio Manager at the New York State Common Retirement Fund Charged in “Pay-For-Play” Bribery SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging NAVNOOR KANG, the former Director of Fixed Income and Head of Portfolio Strategy at the New York State Common Retirement Fund (“NYSCRF”), and DEBORAH KELLEY, a managing director of institutional fixed income sales at a New York-based broker-dealer (“Broker-Dealer-1”), with participating in a “pay-for-play” bribery scheme involving the NYSCRF. KANG was arrested today in Portland, Oregon, and will be presented later today before a U.S. Magistrate Judge in Portland. KELLEY is expected to surrender today to authorities in San Francisco, California. The case is assigned to U.S. District Judge J. Paul Oetken.
Mr. Bharara also announced today the unsealing of charges against GREGG SCHONHORN, a vice president of fixed income sales at a New York-based broker-dealer (“Broker-Dealer-2”), who pled guilty and admitted to his participation in the scheme.
U.S. Attorney Preet Bharara said: “Today, we allege a classic, quid-pro-quo bribery scheme at the New York State Common Retirement Fund, the third largest pension fund in the country. Navnoor Kang, a former portfolio manager at the fund, allegedly steered billions of dollars of business to broker-dealers who bribed him with luxury vacations, high-priced watches, drugs, cash, and more. The hard-earned pension savings of New Yorkers should never serve as a vehicle for corrupt, personal enrichment. The intersection of public corruption and securities fraud appears to be a busy one, but it's one that we are committed to policing.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Instead of upholding his fiduciary duty, Kang was allegedly paid in bribes for diverting business to two separate brokerage firms. When it comes to retirement funds, fixed-income investments are often thought of as a reliable choice. Members of the New York State Common Retirement Fund likely also relied on the belief that the man directing their investments was an honest public servant. Unfortunately, as alleged, that is not the case here today.”
According to the allegations in the Indictment[1] and Information, which were unsealed today in Manhattan federal court:
The NYSCRF
The NYSCRF was a pension fund administered for the benefit of public employees of the State of New York. The third largest pension fund in the United States, the NYSCRF held approximately $184 billion in assets in trust for a total of more than one million retirees and other beneficiaries.
From January 2014 through February 2016, KANG served as Director of Fixed Income and Head of Portfolio Strategy for the NYSCRF. In that capacity, KANG was responsible for investing more than $53 billion in fixed-income securities and was entrusted with discretion to manage those investments on behalf of the NYSCRF. KANG owed a fiduciary duty to the NYSCRF and its members and beneficiaries, and was required to make investment decisions in their best interests and free of any conflict of interest. New York State law and NYSCRF policies prohibited KANG and other NYSCRF employees from receiving any bribes, gifts, benefits, or consideration of any kind.
The Scheme to Steer NYSCRF Fixed-Income Business in Exchange for Secret Bribes
From 2014 through 2016, KANG, KELLEY, and SCHONHORN participated in a scheme to defraud the NYSCRF and its members and beneficiaries, and to deprive the NYSCRF of its intangible right to KANG’s honest services. The scheme involved, among other things, an agreement among KANG, KELLEY, SCHONHORN, and others to pay KANG bribes – in the form of entertainment, travel, lavish meals, prostitutes, nightclub bottle service, narcotics, tickets to sports games and other events, luxury gifts, and cash payments for strippers and KANG’s personal expenses – in exchange for fixed-income business from the NYSCRF. Such bribes – which totaled more than $100,000 – were strictly forbidden by the NYSCRF, and were paid secretly and without any disclosure to the NYSCRF and its members and beneficiaries concerning the conflicts of interests inherent therein.
In exchange for the bribes paid by KELLEY, SCHONHORN, and others, KANG used his position as Director of Fixed Income and Head of Portfolio Strategy at the NYSCRF to promote the interests of KELLEY, SCHONHORN, and their respective brokerage firms. KANG, in exchange for the bribes he received, agreed to steer fixed-income business to Broker-Dealer-1 and Broker-Dealer-2. In fact, KANG steered more than $2 billion in fixed-income business to Broker-Dealer-1 and Broker-Dealer-2, from which KELLEY, SCHONHORN, and their respective employers earned millions of dollars in commissions from the NYSCRF. In so doing, KANG, with the knowledge and approval of KELLEY and SCHONHORN, breached his fiduciary duty to make investment decisions in the best interest of the NYSCRF and its members and beneficiaries, and free of conflict, and deprived the NYSCRF of its intangible right to KANG’s honest services.
As the bribes paid by SCHONHORN to KANG increased, so too did Broker-Dealer-2’s fixed-income business with the NYSCRF. The value of the NYSCRF’s domestic bond transactions with Broker-Dealer-2 skyrocketed from zero in the fiscal year ending March 31, 2013, to approximately $1.5 million in the fiscal year ending March 31, 2014, to approximately $858 million in the fiscal year ending March 31, 2015, and to approximately $2.378 billion in the fiscal year ending March 31, 2016. Broker-Dealer-2 became the third largest broker-dealer with which the NYSRCF executed domestic bonds transactions for the fiscal year ending March 31, 2016, having not even been on the approved list in the fiscal year ending March 31, 2013. As the NYSCRF’s third largest broker-dealer in this asset class, Broker-Dealer-2 brokered approximately eight percent of the total value of the NYSCRF’s domestic bond transactions – a figure greater than that of all but two of the major international banks and brokerage houses on the list. Similarly, the value of NYSCRF’s domestic bond transactions with Broker-Dealer-1 increased from zero in the fiscal year ending March 1, 2014 to approximately $156 million in the fiscal year ending March 1, 2015, and to approximately $179 million in the fiscal year ending March 1, 2016.
KANG’s trades resulted in the payment of millions of dollars in commissions to Broker-Dealer-1 and Broker-Dealer-2, of which KELLEY and SCHONHORN personally earned approximately 35 to 40 percent.
The Obstruction of Justice
In late 2015, the Securities and Exchange Commission (“SEC”) opened an investigation into the entertainment and benefits that KELLEY had provided KANG, and the SEC subpoenaed both KANG and KELLEY for their testimony. In advance of their testimony, KANG and KELLEY agreed to align their stories and testify falsely before the SEC in order to conceal their scheme. In late 2015 and early 2016, KANG and KELLEY each falsely testified under oath before the SEC about expenses KELLEY had paid for KANG. Moreover, after a federal grand jury investigation was opened, KANG instructed SCHONHORN to testify falsely before the grand jury, and KANG admitted that he had hidden relevant evidence.
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KANG, 38, of Portland, Oregon, and KELLEY, 58, of Piedmont, California, are charged with the offenses set forth in the chart attached to this release.
On December 15, 2016, SCHONHORN, 45, of Short Hills, New Jersey, pled guilty in Manhattan federal court before Judge Paul G. Gardephe to six counts: conspiracy to commit securities fraud; securities fraud; conspiracy to commit honest services wire fraud; honest services wire fraud; bank fraud; and conspiracy to obstruct justice in the SEC investigation. Count One carries a maximum sentence of five years in prison. Counts Two, Three, Four, and Six each carry a maximum sentence of 20 years in prison. Count Five carries a maximum sentence of 30 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI and noted that the investigation is continuing. He also thanked the SEC, which filed civil charges against KANG, KELLEY, and SCHONHORN in a separate civil action today, and the Office of Inspector General for the Office of the New York State Comptroller.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Edward A. Imperatore and Joshua A. Naftalis are in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Count
Charge
Defendant
Maximum Penalties
1
Conspiracy to Commit Securities Fraud (18 U.S.C. § 371)
NAVNOOR KANG
DEBORAH KELLEY
5 years in prison and a $250,000 fine or twice the gross gain or loss from the offense
2
Securities Fraud (15 U.S.C. §§ 78j(b) & 78ff; 17 C.F.R. § 240.10b-5; 18 U.S.C. § 2)
NAVNOOR KANG
DEBORAH KELLEY
20 years in prison and a $5,000,000 fine or twice the gross gain or loss from the offense
3
Conspiracy to Commit Honest Services Wire Fraud (18 U.S.C. § 1349)
NAVNOOR KANG
DEBORAH KELELY
20 years in prison and a $250,000 fine or twice the gross gain or loss from the offense
4
Honest Services Wire Fraud (18 U.S.C. §§ 1343 and 1346)
NAVNOOR KANG
DEBORAH KELLEY
20 years in prison and a $250,000 fine or twice the gross gain or loss from the offense
5
Conspiracy to Obstruct Justice in the SEC Investigation (18 U.S.C. § 1512(k)
NAVNOOR KANG
DEBORAH KELLY
20 years in prison and a $250,000 fine or twice the gross gain or loss from the offense
6
Obstruction of Justice in the Grand Jury Investigation (18 U.S.C. § 1512(c)(2))
NAVNOOR KANG
20 years in prison and a $250,000 fine or twice the gross gain or loss from the offense
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Louisville Metro Police Department Detective Guilty of Theft from Interstate ShipmentRead the Press Release
Stole contents of packages while working as a drug interdiction task force officer
Agreed to forfeit $74, 745.99
LOUISVILLE, Ky. - United States Attorney John E. Kuhn, Jr. today announced the guilty plea of a former Louisville Metro Police Department Detective, in United States District Court, before Magistrate Judge Dave Whalin, to a Felony Information, charging the former detective with theft from interstate shipment.
Kyle Willett, 48, of Spencer County, Kentucky, waived indictment by grand jury and plead guilty to the felony Information today, and was released from custody on an unsecured bond. Willett is scheduled for sentencing before Senior Judge Thomas B. Russell on April 19, 2017, at noon in Louisville.
According to the plea agreement, Willett admitted to stealing cash from a United Parcel Services (UPS) shipping sorting facility in Louisville, Kentucky, while working as a drug interdiction task force officer.
From January 2016 through August 2016, Willett, while working as an interdiction task force officer, would identify UPS packages that possibly contained cash. He would then take the packages to his vehicle and open them. On a number of occasions, Willett then stole the contents of packages. During this period, he stole approximately $74,745.99 in cash from these packages. As part of the plea agreement, Willett may be ordered to forfeit proceeds traceable (directly and indirectly) to such violation, including but not limited to: a) $72,000 in United States Currency; b) $520.00 in United States Currency; and c) $2,225.99 in United States Currency.
If convicted at trial, Willett could have been sentenced to no more than ten years in prison, a three year period of supervised release and fined $250,000.
This case was prosecuted by Assistant United States Attorney Bryan Calhoun and was investigated by the Louisville Metropolitan Police Department’s Public Integrity Unit and the Federal Bureau of Investigation (FBI).
Former Law Enforcement Official Sentenced to 25 years for Drug TraffickingRead the Press Release
McALLEN, Texas – A former Drug Enforcement Administration (DEA) task force officer/Mission Police Department investigator has been sentenced for his convictions of conspiracy to possess with intent to distribute and possession with intent to distribute cocaine, announced U.S. Attorney Kenneth Magidson. A federal jury sitting in McAllen convicted Hector Mendez, 46, of San Juan, on July 14, 2016, following a six-day trial and approximately three hours of deliberation.
Today, U.S. District Judge Randy Crane, who presided over the trial, handed Mendez a 300-month sentence to be followed by five years of supervised release. In handing down the sentence, the court noted that Mendez had worked with the very best members of the law enforcement community and yet abused the special trust he held as a law enforcement officer. Judge Crane stated that Mendez’s crimes were particularly reprehensible - that while working with DEA, Mendez was also profiting by stealing narcotics from the criminals he was supposed to investigate. The court hoped the serious sentence would serve as a deterrent to others.
During trial, the jury heard that Mendez conspired to steal approximately 14.9 kilograms of cocaine and stage a seizure of sham, or diluted cocaine, to cover the theft.
On July 25, 2012, Reynol Chapa-Garcia, 42, of Mission, had received a quantity of cocaine at a residence in Mission. Shortly thereafter, Mendez arrived at Chapa-Garcia’s residence and collected the bundles of cocaine. Mendez and Chapa-Garcia had agreed the cocaine would be diluted or cut, then repackaged and staged for a seizure sometime later. The remaining cocaine would then be sold.
On July 28, 2012, a Ford Taurus was staged with the diluted bundles of cocaine in Mission. Mendez and other Mission Police Department officers seized the Taurus and drugs. Chapa-Garcia made recorded calls to the person who had originally provided the drugs to conceal the fact that the cocaine had been cut and make it seem the bundles had been seized by law enforcement during the supposed transport.
Testimony of witnesses at trial established that Mendez intentionally concealed facts about the seizure in DEA reports and statements to federal prosecutors, presented false statements to multiple judges in sworn court filings and intentionally altered transcripts of recorded calls in evidence against Gonzalez.
Mendez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Chapa-Garcia pleaded guilty May 27, 2016, for his role in the conspiracy and will be sentenced at a later date.
The FBI, Department of Justice - Office of Inspector General (OIG), Department of Homeland Security – OIG and the DEA conducted the investigation. Assistant U.S. Attorneys James H. Sturgis and Kristen J. Rees prosecuted the case.
Former Buffalo School Official Sentenced for Stealing Funds from City SchoolsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Debbie Buckley, 56, of Niagara Falls, NY, who was convicted of theft of government funds, was sentenced to three years probation by Senior U.S. District Judge William M. Skretny. The defendant also paid restitution totaling $15,120.00 prior to sentencing.
Assistant U.S. Attorney Richard A. Resnick, who handled the case, stated that Buckley served as Supervisor of Title I, Office of Federal and State Programs for the Buffalo School District. Title I is a federally funded program that provides assistance to school districts with high numbers of children from low income families. In March 2010, Buckley was promoted to Assistant Superintendent of Federal and State Programs.
In June 2009, the defendant met with a representative of the Universal School which moved into the City of Buffalo. During the meeting, Buckley asked for and was provided blank Universal School letterhead signed by the representative. The defendant indicated the letterhead would be used to include the Universal School with other non-public schools to increase resources available.
Subsequent investigation revealed that the Universal School letterhead was used to prepare a fraudulent letter purportedly written by the school representative. The letter, addressed to Buckley, requested an individual to administer the Title I computer assisted program at the Universal School during the 2009-10 school year. The letter was not written by the school representative, and, in fact, the Universal School did not have a Title I computer assisted program.Subsequently, a fraudulent contract was prepared assigning an individual identified as Hassan El Saddique to provide Title I assistance at the Universal School. El Saddique, who is Buckley’s son, never provided such assistance to the Universal School, instead El Saddique worked on a volunteer basis a few hours a week at a different school, Bishop Timon High School. Nevertheless, Buckley’s son submitted to the Buffalo School District for the period of September 8, 2009, through June 30, 2010, weekly invoices seeking full-time payment based on the fraudulent contract. Some of these invoices included payment for days on which school was not even in session.
Buckley changed the approval process by which a contractor was paid for Title I services provided in non-public schools. The defendant eliminated the need for a signature from an official at the non-public school. Buckley did this so that she could sign the fraudulent invoices submitted by her son authorizing the payment of the invoices. The dates of some of these invoices coincide with the period during which Buckley was promoted to Assistant Superintendent.
El Saddique received 18 paychecks from the Buffalo School District totaling $15,120. Of those paychecks, 13 were deposited into two union accounts controlled by Buckley for a total of $10,320 and another check was cashed using one of those accounts.
Hassan El Saddique was convicted of theft of money in control and possession of a bank, sentenced to one year supervised release and ordered to pay $15,120.00 in restitution.
Today’s sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent-in- Charge Adam S. Cohen, and the U.S. Department of Education, Office of Inspector General, under the direction of Assistant Special Agent-in-Charge Geoff Wood.Five Sentenced in Rosebud DaVita Dialysis Burglary CaseRead the Press Release
United States Attorney Randolph J. Seiler announced that all five defendants involved in the burglary of the DaVita Dialysis Center in Rosebud, South Dakota, in January 2016 have now been sentenced by U.S. District Judge Roberto A. Lange.
On May 17, 2016, all five defendants were indicted for Third Degree Burglary. A Superseding Indictment was filed on June 14, 2016, charging one count of Third Degree Burglary and one count of Larceny.
Seryl Leroy Pomani, Jr., a/k/a Leroy Pomani, age 28, of Rosebud, pled guilty to Third Degree Burglary in July 2016. He was sentenced on September 6, 2016, to 5 months in custody (in addition to the 4 months he spent in tribal custody prior to his initial appearance in federal court) to be followed by 2 years of supervised release.
Michelle Iron Cloud, age 30, of Mission, pled guilty to Third Degree Burglary in September 2016. She was sentenced on December 6, 2016, to time served equal to approximately 3 months in custody (in addition to the approximately three months she spent in tribal custody prior to her initial appearance in federal court) followed by 18 months of supervised release.
Jonathan Anthony Jones, a/k/a DJ Jones, age 36, of Rosebud, pled guilty to Third Degree Burglary in September 2016. He was sentenced on December 12, 2016, to 3 months in custody, followed by 3 months’ home confinement or placement in a residential reentry center, followed by 2 years of supervised release.
Robert Pomani, age 24, of Rosebud, pled guilty to Larceny in September 2016. He was sentenced on December 19, 2016, to 4 months in custody, followed by three years of supervised release. At the time of the offense, Robert Pomani was on federal supervised release and was sentenced to an additional 4 months in custody for violating the terms of his supervised release.
Alicia Good Shield, age 30, of Rosebud, pled guilty in October 2016 to a Superseding Information charging Receiving Stolen Property. On December 20, 2016, she was placed on probation for a period of 18 months.
The defendants were ordered to pay restitution of at least $5,615.66, jointly and severally, for damage caused and items stolen. Additionally, each defendant was ordered to pay a special assessment of $100 to the Federal Crime Victims Fund.
The convictions stem from burglaries that occurred in January 2016. The Defendants broke into the DaVita Dialysis Center and stole multiple items that had been donated and were displayed inside the building. These items included star quilts and dream catchers. The Defendants subsequently sold several star quilts to unwitting third parties. They then used the proceeds of those sales to purchase methamphetamine and marijuana, which they shared amongst themselves.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Federal Inmates Indicted for Conspiracy to Obtain Controlled SubstancesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that William Bonilla, Jr., age 31, and William Davis, age 29, both inmates at the Federal Correctional Institution, Schuylkill, in Minersville, Pennsylvania (FCI Schuylkill), were indicted on December 20, 2016, by a federal grand jury for conspiracy and attempt to obtain marijuana and synthetic marijuana in FCI Schuylkill.
The case was investigated by the Federal Bureau of Investigation and the Federal Bureau of Prisons. Assistant United States Attorney Todd K. Hinkley is prosecuting the case.
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 10 years of imprisonment, a term of supervised release following imprisonment, and a $500,000 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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Federal Grand Jury Indicts Four for Running “Foreclosure Rescue Scheme” That Exploited Vulnerabale Homeowners Facing ForeclosuresRead the Press Release
DALLAS — A federal grand jury in Dallas returned an indictment yesterday charging four individuals with felony offenses stemming from a “foreclosure rescue scheme” they ran from approximately February 2012 through January 2013, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, the indictment charges each of the defendants, Mark Demetri Stein, 36, of Carrollton, Texas, Richard Bruce Stevens, 51, of San Antonio, Texas, Bruce Kevin Hawkins, 52, of Desoto, Texas, and Christina Renee Caveny,37, of Dallas with one count of conspiracy to commit mail fraud and five counts of mail fraud.
The defendants are expected to make their initial appearance before U.S. Magistrate Judge Paul D. Stickney later this week.
The indictment alleges that the defendants recruited at least 70 distressed and vulnerable homeowners who were facing the imminent threat of foreclosure on their homes and fraudulently collected a total of at least $242,000 from them.
According to the indictment, Stein operated Real Estate Solutions, Stevens used Texas Real Estate Services, and Hawkins formed ERealty Mortgage Group, LLC, as foreclosure rescue companies. The conspirators used third parties to contact homeowners and offer them an opportunity to get out of their present home loans and receive a new home loan with a reduced interest payment and reduced monthly payment. The conspirators falsely represented to homeowners that they had “investors” standing by who were ready to quickly purchase the homeowner’s present loan from the lender holding the current mortgage. They also falsely represented that they would use investors to purchase the homeowner’s loan from the original lender at a greatly reduced price through a “short sale” process.
Furthermore, the conspirators falsely represented to the homeowners that the homeowners had the legal authority to transfer their homeowner’s deed to the defendants.
As part of the scheme, the conspirators fraudulently required homeowners to start making all future loan payments to them based on fraudulent so-called “loans,” and they also told homeowners to ignore late payment notices sent by lenders. As part of the scheme, the conspirators conducted a fraudulent “closing” for each homeowner where they caused the homeowner to pay them a large down payment on the new “loan,” and they also had the homeowner sign fraudulent documents, such as a promissory note, deed of trust, special warranty deed, and/or a so-called “land trust.”
Further, according to the indictment, the conspirators falsely represented to homeowners that the conspirators could “sell” their property back to the homeowner with a new loan, when the conspirators well knew they did not legally own the property. The conspirators also told homeowners to ignore notices of nonpayment from their present lender as they continued to unlawfully collect monthly so called “mortgage payments” from homeowners. In fact, conspirators instructed several homeowners to file for bankruptcy but to not follow up with the bankruptcy process as an additional means to delay foreclosure and conceal the conspirators’ criminal conduct. Conspirators concealed that all down payment and monthly mortgage payments fraudulently collected from homeowners was spent for their own personal benefit.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each count charged in the indictment carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. Restitution could also be ordered.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. With the charges in this indictment, 25 defendants have been charged as part of that initiative. Sixteen have been convicted, one resulted in a mistrial, and eight are pending trial.
The Dallas FBI is investigating the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Federal Grand Jury Files Indictment Charging David Hickman with Using Fire to Damage or Destroy Building Used in Interstate CommerceRead the Press Release
ALBUQUERQUE – A federal grand jury returned a one-count indictment yesterday afternoon charging David A. Hickman, 28, of Albuquerque, N.M., with using fire to damage and destroy a building used in interstate commerce. Hickman is scheduled to be arraigned on the indictment on Jan. 3, 2017.
The indictment alleges that on Nov. 26, 2016, Hickman maliciously damaged and destroyed, and attempted to damage and destroy, by means of fire, a building, an Old Navy store located in Albuquerque, used in interstate commerce.
Hickman was arrested on Nov. 28, 2016 on a criminal complaint alleging the same offense as the crime charged in the indictment. He remains in federal custody pending trial on judicial findings that he poses a risk of flight and a danger to the community.
According to the criminal complaint, officers of the Albuquerque Police Department (APD) arrested Hickman in the early hours of Nov. 26, 2016, and later transferred him into the custody of the FBI. Hickman was arrested shortly after an APD officer responded to the Pavilions at San Mateo shopping center after hearing “small explosions” coming from the area. The criminal complaint alleges that, when the officer arrived at the shopping center, he observed Hickman running into and out of the Old Navy store located in the shopping center, which was on fire.
If convicted on the crime charged in the indictment, Hickman faces a statutory penalty of not less than five years and not more than 20 years in prison. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The investigation of this case, which is continuing, is being conducted by the Albuquerque Division of the FBI, ATF in Albuquerque, ATF’s National Response Team, APD and the Albuquerque Fire Department. Assistant U.S. Attorney Fred J. Federici is prosecuting the case.
Hickman IndictmentFall River Woman Sentenced for Identity Theft and Theft of Social Security BenefitsRead the Press Release
BOSTON – A Jamaican woman living in Fall River was sentenced today in U.S. District Court in Boston in connection with using her sister’s identity to enter the United States and collecting nearly $300,000 in government benefits, while also using five other identities.
Sandra McDonald, 51, was sentenced by U.S. District Court Judge Denise J. Casper to 27 months in prison, three years of supervised release, and restitution in the amount of $297,709 to be divided amongst the Social Security Administration, Massachusetts State Supplemental Program, MassHealth and the Massachusetts Department of Transitional Assistance. In September 2016, McDonald pleaded guilty to passport fraud, theft of public money, and misrepresenting a Social Security number. McDonald has been held in custody since her arrest in May 2016.
In 1990, McDonald, who was born in Jamaica, obtained a U.S. resident alien card under her sister’s name, but with her own photograph and fingerprint on the card. Shortly after entering the United States under her sister’s identity, McDonald obtained a Social Security card, also in her sister’s name. In 1996, McDonald applied for Social Security Supplemental Security Income benefits under her sister’s identity and has received more than $140,000 in benefits illegally. McDonald also used her sister’s identity to illegally receive nearly $30,000 in MassHealth benefits, over $125,000 in other state benefits, open bank accounts and obtain a driver’s license. McDonald also listed her sister’s name as the mother on the birth certificates of four of her own children.
In addition to using her sister’s identity, McDonald used five other identities to obtain state identification cards, driver’s licenses, passports and open bank accounts. McDonald also used other identities—including her sister’s—when she was arrested on several occasions.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit is prosecuting the case.
Executive Office for Immigration Review Announces New YouTube ChannelRead the Press Release
FALLS CHURCH, Va. – The Executive Office for Immigration Review (EOIR) today announced that it has established a YouTube channel to offer its stakeholders another medium in which to acquire information about its policies and programs.
EOIR’s first YouTube video is a training session on its recently issued final rule titled, Recognition of Organizations and Accreditation of Non-Attorney Representatives. This training video provides an overview of the new rule with a focus on the renewal process for already recognized organizations and accredited representatives.
The training video can be found at: https://www.youtube.com/channel/UChnSMSPkWRy9GaQnqyxQgmg. Please note that EOIR’s website, www.justice.gov/eoir, will continue to be the agency’s primary source of information online.
Eagle Butte Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on December 20, 2016, by U.S. District Judge Roberto A. Lange.
Walter Hanson, Jr., age 31, was sentenced to 48 months in custody, 3 years of Supervised Release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Hanson was indicted by a federal grand jury on April 13, 2016. He pled guilty on October 4, 2016.
The conviction stemmed from an incident on January 13, 2016, when some people met up with Hanson and started drinking and socializing, while driving around Eagle Butte, and then going towards Cherry Creek. Along the way, Hanson and the other male got into a verbal argument. Hanson used a knife to slit the victim’s throat just below the jaw line. Hanson got out of the car and ran away while the victim went inside his mother’s home to get help. A total of 29 sutures were used to close the laceration.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Hanson was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Sentenced for Assault Resulting in Substantial Bodily Injury to an Intimate PartnerRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury was sentenced on December 19, 2016, by U.S. District Judge Roberto A. Lange.
Darrell Clown, age 49, was sentenced to 37 months in custody, 2 years of Supervised Release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Clown was indicted by a federal grand jury on April 13, 2016. He pled guilty on September 27, 2016.
The conviction stemmed from an incident on December 10, 2015, when Clown and his intimate partner, who had just reconciled in late November of 2015, argued because the Defendant was jealous and was also upset about a job offer she had received that he did not agree with. Clown began drinking, became more irate, and started punching the victim in the face with his fist. He also hit her in the arms and legs with a broomstick. Clown then pinned the victim down on the floor and punched her in the face. He then began to choke her, rendering her unconscious.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Clown was immediately turned over to the custody of the U.S. Marshals Service.
Delhi doctor sentenced to 6 months in prison for issuing illegal prescriptionsRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that a Delhi doctor was sentenced Tuesday to six months in prison for issuing prescriptions for opiates to those without following proper procedures.
Dan J. LeFleur, 64, of Delhi, La., was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of possession with intent to distribute Suboxone. He was also sentenced to two years of supervised release and ordered to pay a $2,000 fine. According to the August 16, 2016 guilty plea, LeFleur issued illegal prescriptions from October 2012 until February 2013. Several sources sent complaints to law enforcement agents that LeFleur, who is a medical doctor, was prescribing medications without following proper protocols. One of the main medications prescribed was Suboxone, which is used for opiate addiction. LeFleur issued the prescriptions from his personal residence in Delhi; from the Louisiana Health Center in Rayville, and from his Suboxone Clinic in Rayville, La.
The DEA and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
Defense Contractor Settles Allegations Relating to Kickbacks Paid to Its Employees by SubcontractorRead the Press Release
DENVER – United Launch Alliance (“ULA”), a defense contractor, has paid the United States $100,000 to settle allegations that its employees were paid kickbacks by a subcontractor in order to induce ULA to award contracts to the subcontractor.
ULA is an aerospace company providing spacecraft launch services to primarily governmental clients. The United States alleged that between July 2011 and July 2015, the owner of a ULA subcontractor, Apriori Technologies, Inc. (“Apriori”), paid gratuities to certain ULA employees in order to induce ULA to award technology, compliance and project management related contracts to Apriori. The United States alleged that certain Apriori-awarded subcontracts resulted in higher costs being billed by ULA to the U.S. Air Force. ULA voluntarily disclosed the allegations of misconduct to the United States.
The investigation leading to the settlement was conducted in conjunction with the Air Force’s Office of Special Investigations, the National Reconnaissance Office’s Office of the Inspector General, and the Defense Criminal Investigative Service.
Assistant U.S. Attorneys Amanda Rocque and Shiwon Choe handled this matter on behalf of the government.
The settlement agreement is neither an admission of liability by ULA, nor a concession by the United States that its claims are not well founded.
Convicted Felon Sentenced to More Than 15 Years in Federal Prison on Firearm and Methamphetamine Trafficking ConvictionsRead the Press Release
WICHITA FALLS, Texas — John William Sturm, 54, was sentenced on Monday by U.S. District Judge Reed C. O’Conner to serve a total of 190 months in federal prison, following his guilty plea in August 2016 to a three-count indictment charging firearm and drug distribution offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, Sturm pleaded guilty to one count of being a felon in possession of a firearm, one count of possession of methamphetamine with the intent to distribute, and one count of possessing a firearm in furtherance of a drug trafficking crime.
According to documents filed in the case, on April 6, 2016, in the Wichita Falls, Texas, area, Sturm, a convicted felon, possessed a Hi-Point, nine millimeter pistol, while possessing with the intent to distribute more than a “user quantity” of methamphetamine.
Sturm had been convicted in 2004 in federal court in the Northern District of Texas for being a felon in possession of a firearm and was sentenced to a 10-year federal prison sentence. He served that sentence and then, in August 2013, Judge O’Conner found that Sturm had violated the terms of his supervised release. Judge O’Connor revoked his supervised release and sentenced him to 24 months in federal prison.
The case was investigated by the Wichita Falls Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Texas Department of Public Safety. Deputy Criminal Chief Assistant U.S. Attorney J. Nicholas Bunch was in charge of the prosecution.
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Collin County Man Convicted of Visa Fraud and Harboring Illegal AliensRead the Press Release
SHERMAN, Texas – A jury has found a 49-year-old Lavon, Texas man guilty of federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
David Allen Anderton was found guilty by a jury on multiple counts of harboring illegal aliens, conspiracy, and visa fraud on Dec. 15, 2016, following a seven-day trial before U.S. District Judge Amos Mazzant.
According to information presented in court, Anderton, through his commercial landscaping company, A&A Landscape and Irrigation, abused the Department of State’s work visa system bringing Mexican workers into the U.S. underpaying them and housing them in dangerous conditions. Anderton was indicted by a federal grand jury on Mar. 9, 2016.
"Today's conviction affirms that David Anderton failed to pay prevailing wages and overtime to his H2B workers, and pocketed the money that rightfully belonged to his employees. The U.S. Department of Labor's Office of Inspector General will continue to work with our law enforcement partners to investigate crimes that abuse Department of Labor programs and have a detrimental effect on workers," said Steven Grell, Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General, Dallas Regional Office.
Under federal statutes, Anderton faces up to 10 years in federal prison at sentencing and will forfeit nearly $2 million in property used in the commission of his crimes. The maximum statutory sentence prescribed by Congress and is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the U.S. Department of State, Diplomatic Security Service, U.S. Department of Labor Office of Inspector General, Internal Revenue Service Criminal Investigations, and Homeland Security Investigations. This case was prosecuted by Assistant U.S. Attorneys Andy Williams and Tom Gibson.
Chiropractic Insurance Fraud Conspiracies Cracked by Minnesota Commerce Fraud Bureau and FBIRead the Press Release
United States Attorney Andrew M. Luger today announced federal criminal charges filed against 21 defendants for conspiring to commit health care fraud. The defendants, charged by four indictments and two felony informations, fraudulently billed insurance companies for millions of dollars over the course of the parallel conspiracies.
“State and federal law enforcement are cracking down on no-fault automobile insurance fraud,” said U.S. Attorney Luger. “The charges unsealed today represent a serious effort to expose crooked billing abuses that harm consumers. The Commerce Fraud Bureau and FBI continue to work closely with my office to ensure that our efforts to stop fraud and abuse are aligned with the interests of all Minnesotans.”
“Today’s charges send a clear message to criminal networks that committing insurance fraud will result in a concerted effort by the FBI and our law enforcement partners to bring those responsible to justice,” said Special Agent in Charge of the FBI Minneapolis Division Richard T. Thornton. “Fraud schemes perpetrated by those in the health care sector not only undermine public trust and betray the medical profession, but also result in the theft of funds earmarked to cover legitimate health care expenses. For these reasons, the FBI will continue to aggressively investigate all forms of insurance fraud to include the types of schemes charged today.”“We will not tolerate those who perpetrate staged car accidents, illegal kickbacks, nor fake medical billing,” said Commerce Commissioner Mike Rothman. “Today’s crackdown will help stop these fraud schemes that threaten our public safety and prey on Minnesota consumers. I commend the great teamwork among our Commerce Fraud Bureau, the U.S. Attorney’s Office, and the FBI, with the assistance from partners in state and local law enforcement agencies, which are focused on stopping these kinds of criminal schemes.”
Under the Minnesota No-Fault Automobile Insurance Act, auto insurance policies must include a personal injury protection provision (PIP). The PIP provision carries a minimum coverage amount of $40,000 for expenses resulting from injuries sustained in an automobile accident, $20,000 of which may be used for medical expenses.
According to the charging documents, at various times between at least 2010 and 2015, chiropractors PRESTON E. FORTHUN, ANGELA A. SCHULZ, HUY NGOC NGUYEN, ADAM J. BURKE, and other Doctors of Chiropractic, engaged in schemes with others to defraud automobile insurance companies. The schemes, which were nearly identical fraud schemes largely carried out independent of one another, involved the submission of fraudulent no-fault insurance claims.
According to the charging documents, chiropractors involved in the scheme would submit claims and receive reimbursements for chiropractic services that either were not medically necessary or were never rendered. Each chiropractor would prescribe and purportedly provide services that were not determined medically necessary by the physical condition of each patient, but were instead designed to fraudulently maximize reimbursement from the patients’ automobile insurance companies.
According to the charging documents, in order to get more patients to come to chiropractic appointments for treatment they did not need, the chiropractors charged would make illegal payments to patient recruiters, known as “runners.” Runners typically made upwards of $1,000 per automobile accident patient in exchange for bringing the patient into the chiropractor’s office. Runners were often not paid, or paid only in part, until after the patient had attended a minimum threshold number of treatment sessions. In order to keep the patients coming back for medically unnecessary appointments, the runners often paid illegal kickbacks to the patients.
According to the charging documents, some of the charged chiropractors would conceal the kickback payments in various ways. For example, FORTHUN wrote checks to runners and falsely described those checks on the memo lines as payments for services such as “transportation” or “marketing.” Defendant BURKE encouraged runners to form corporate entities such as LLCs with names that sounded like legitimate businesses to which BURKE made kickback payments. And defendant NGUYEN tried to conceal kickback payments by making checks out to “cash” for several thousand dollars. He often wrote multiple such checks each week, falsely characterizing them as having been for “chiropractic supplies” of “office supplies.”
This case is the result of an investigation conducted by the Minnesota Commerce Fraud Bureau and the FBI. Additional assistance was provided by the Minneapolis Police Department, Saint Paul Police Department, Minnesota State Patrol, and Homeland Security Investigations.
This case is being prosecuted by Assistant U.S. Attorneys David M. Maria and John E. Kokkinen.
Defendant Information:Chiropractors
ANGELA A. SCHULZ, 47
Chaska, Minn.Charges: • Conspiracy to commit health care fraud, 1 count
• Conspiracy to commit mail fraud, 1 countPRESTON E. FORTHUN, 38
Bloomington, Minn.Charges: • Conspiracy to commit health care fraud, 1 count
• Conspiracy to commit mail fraud, 1 countHUY NGOC NGUYEN, 42
Brooklyn Park, Minn.Charges: • Conspiracy to commit health care fraud, 1 count
• Conspiracy to commit mail fraud, 1 countADAM JOHN BURKE, 32
Minneapolis, Minn.Charges: • Conspiracy to commit health care fraud, 1 count
• Conspiracy to commit mail fraud, 1 countRunners
ABDISALAN ABDULAHAB HUSSEIN, 48
Minneapolis, Minn.Charges: • Conspiracy to commit health care fraud, 2 counts
• Conspiracy to commit mail fraud, 2 countsSAHAL ALI WARSAME, 35
Minneapolis, Minn.Charges: • Conspiracy to commit health care fraud, 2 counts
• Conspiracy to commit mail fraud, 2 countsYAHYE MOHAMED HERROW, 45
Minneapolis, Minn.Charges: • Conspiracy to commit health care fraud, 1 count
• Conspiracy to commit mail fraud, 1 countTEMITAYO IFELOJU OLUSHOLDA DANIEL, 35
Minneapolis, Minn.Charges: • Conspiracy to commit health care fraud, 1 count
• Conspiracy to commit mail fraud, 1 countMERRON REDI SAMUEL, 36
Saint Paul, Minn.Charges: • Conspiracy to commit health care fraud, 1 count
• Conspiracy to commit mail fraud, 1 countABDIRAHIN KHALIF IBRAHIM, 25
Saint Paul, Minn.Charges: • Conspiracy to commit health care fraud, 1 count
• Conspiracy to commit mail fraud, 1 countDANA ENOCH KIDD, 35
Elk River, Minn.Charges: • Conspiracy to commit health care fraud, 1 count
• Conspiracy to commit mail fraud, 1 countSAMATAR HASSAN OMAR, 28
Edina, Minn.Charges: • Conspiracy to commit health care fraud, 1 count
• Conspiracy to commit mail fraud, 1 countABDINASIR MAYON ABIKAR, 31
Minneapolis, Minn.Charges: • Conspiracy to commit health care fraud, 1 count
• Conspiracy to commit mail fraud, 1 countALI M ABIKAR, 28
Edina, Minn.Charges: • Conspiracy to commit health care fraud, 1 count
• Conspiracy to commit mail fraud, 1 countDANA STEPHEN COMEAUX, 57
Brooklyn Center, Minn.Charges: • Conspiracy to commit health care fraud, 1 count
• Conspiracy to commit mail fraud, 1 countCARLOS PATRICIO LUNA, 48
Minneapolis, Minn.Charges: • Conspiracy to commit health care fraud, 1 count
• Conspiracy to commit mail fraud, 1 countJEROME TARLVE DOE, 52
Brooklyn Park, Minn.Charges: • Conspiracy to commit health care fraud, 1 count
• Conspiracy to commit mail fraud, 1 countNAPOLEAN TUTEX DEAH, 32
New Brighton, Minn.Charges: • Conspiracy to commit health care fraud, 1 count
• Conspiracy to commit mail fraud, 1 countSAMMANY RATHY SPANGLER, 27
Woodbury, Minn.Charges: • Conspiracy to commit health care fraud, 1 count
• Conspiracy to commit mail fraud, 1 countChester Woman Indicted for Filing False Tax ReturnsRead the Press Release
RICHMOND, Va. – Crystal Charmae Richards, 44, of Chester, was indicted yesterday by a federal grand jury on charges related to her alleged role in filing false tax returns.
According to allegations in the indictment, Richards and another individual, David Wayne Schneider, worked as tax return preparers from 2011 through 2015. During that time, they regularly prepared returns on behalf of clients that falsely claimed dependents, small business income or losses, and education credits, which resulted in payment of inflated refunds to the clients. Richards also used the identities of certain clients without their knowledge or permission to file tax returns that generated refunds. In those instances, Richards pocketed the entirety of the refund. Schneider pleaded guilty on January 27 and was sentenced to 24 months in prison on April 25. Schneider was also ordered to pay $515,104.74 in restitution to the IRS for losses resulting from his preparation of false tax returns.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Thomas Holloman, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after the indictment was returned yesterday. Assistant U.S. Attorney Michael C. Moore is prosecuting the case.
This case was investigated by IRS-CI, the Department of Treasury’s Office of Inspector General, and the Social Security Administration’s Office of Inspector General.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-155 and 3:15-cr-201.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Cascade Man Sentenced to 20 Years for Receiving Child PornographyRead the Press Release
A man who received child pornography was sentenced December 20, 2016 to 20 years in federal prison.
Toby Donovan, age 39, from Cascade, Iowa, received the sentence after a July 25, 2016 guilty plea to one count of receipt of child pornography. At the plea hearing, Donovan admitted that, between 2012 and 2013, he knowingly used the Internet to receive child pornography. In addition, defendant has a 2014 conviction in Dubuque County for enticement of a minor.
Donovan was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Donovan was sentenced to 240 months’ imprisonment. A special assessment of $100 was imposed, and he must also serve a 10-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Dubuque County Sheriff’s Office, the Cedar Rapids Police Department, and the Cascade Police Department.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 14-1012.
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Canadian Man Pleads Guilty to Attempting to Illegally Enter the United StatesRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that John D. Fraser, a/k/a “John Knight,” 54, of Nova Scotia, Canada pleaded guilty today in U.S. District Court to attempting to enter the United States after having been ordered removed.
Court records reveal that on November 20, 2016, a vehicle with Florida registration plates arrived at the Calais, Maine port of entry to the United States. The defendant was the driver and he provided a valid Canada passport in the name John Knight. He said he was going to his winter home in Port St. Lucie, Florida. An officer with U.S. Customs and Border Protection (“CBP”) referred the defendant to secondary inspection. After initial denials, the defendant admitted that he had been living and working in the United States for over 30 years without authorization. A fingerprint check showed that the defendant had a significant criminal history under the name John D. Fraser and in 2010 had been ordered removed from the United States.
The investigation was conducted by CBP.
Bloomfield Man Sentenced to 7 Years in Federal Prison for Trafficking CocaineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that that TYSHAWN WELBORN, also known as “Black,” 38, of Bloomfield, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 84 months of imprisonment, followed by three years of supervised release, for trafficking cocaine. WELBORN also was ordered to pay a $200,000 fine.
According to court documents and statements made in court, Raul Chavez headed a cocaine trafficking operation that smuggled cocaine from Mexico into El Paso, Texas, and then transported the drug to Connecticut and elsewhere. The investigation revealed that the Chavez organization had been supplying multiple kilograms of cocaine to Todd Vernon of Hartford since approximately 2004, and WELBORN since approximately 2010. The shipments, which would typically be in the range of 30 to 40 kilograms, were sent regularly from El Paso multiple times per year. WELBORN distributed the drug through a network of individuals.
In 2014, the Chavez organization attempted to find an additional source of supply for its Hartford area cocaine customers. In July 2014, a DEA confidential source met Andrew Duron, also known as “Chavo,” in North Carolina. During the meeting, Duron told the confidential source that he wanted to purchase up to 50 kilograms of cocaine for $28,000 per kilogram. On August 14, 2014, Duron, the confidential source and an undercover DEA agent met in New Jersey where Duron agreed to purchase 25 kilograms of cocaine. In subsequent conversations with the confidential source, Duron stated that he wanted an extra $1000 per kilogram as a side deal. They agreed on a total price of $725,000 for 25 kilograms of cocaine.
The investigation revealed that this cocaine shipment was destined for WELBORN and Vernon, the latter of whom prepaid for approximately 13 kilograms of cocaine.
On August 22, 2014, WELBORN met Chavez and others at a restaurant in East Windsor where they discussed the pick-up of money from WELBORN the following day and its delivery to a location to be determined.
On August 23, 2014, Duron met the undercover DEA agent at a location in Wethersfield. Duron told the undercover agent that his associates were in Connecticut and that Duron and the undercover agent would need to travel to a store parking lot near Bradley International Airport to verify that the money was in place. Duron and the undercover agent then drove in separate vehicles to a store parking lot on Kennedy Road in Windsor. Duron met with Raul Chavez and another associate in the store. A short time later, a third associate arrived in a Jeep Wrangler, met the undercover agent in the parking lot, showed him a duffel bag and said it contained “half” of the money. Shortly thereafter, investigators arrived at the scene and arrested Duron, Raul Chavez and his associates.
Investigators also recovered from the Jeep a duffel bag containing approximately $284,000 in cash, and a loaded .38 caliber revolver. The cash had been picked up from WELBORN earlier that day.
After word reached Raul Chavez’s son, Christopher Chavez, that his father and others had been arrested, Christopher Chavez coordinated the diversion of a shipment of 34 kilograms of cocaine, which was en route to Connecticut, to a high-level drug distributor in Cleveland, Ohio.
WELBORN was arrested on August 26, 2015. On August 22, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute five kilograms or more of cocaine.
Raul Chavez, Christopher Chavez, Duron and Vernon also pleaded guilty. On September 22, 2015, Duron, of El Paso, was sentenced to 84 months of imprisonment and, on October 7, 2016, Christopher Chavez, of El Paso, was sentenced to 60 months of imprisonment. Raul Chavez and Vernon await sentencing.
This investigation has been conducted by the Drug Enforcement Administration’s Hartford Task Force, including personnel from the DEA Hartford Resident Office and the Bristol, Hartford, Manchester, New Britain, Newington, and Wethersfield Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Brian P. Leaming and Amy C. Brown.
Berkeley County man pleads guilty to federal firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jonathan Leigh Wienke, 46, of Martinsburg, West Virginia, was convicted for unlawfully making firearms today, United States Attorney William J. Ihlenfeld, II, announced.
Wienke pled guilty to one count of “Making a Firearm in Violation of the National Firearms Act.” He faces up to ten years in prison and a fine of up to $10,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
On June 9, 2016, the Department of Homeland Security obtained a warrant to search Wienke’s home in Martinsburg, West Virginia. During that search, officers found a pistol with an attachment that appeared to be a silencer. The pistol and silencer were seized by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Testing confirmed that the attachment was a silencer capable of diminishing the sound report of a portable firearm, and that the silencer met the definition of a “firearm” under federal law. The silencer did not have any manufacturer’s mark of identification or serial number, as required by the National Firearms Act. The investigating agent learned that Wienke had manufactured the silencer, but did not have the requisite license or approval to manufacture a silencer, as required by the National Firearms Act.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Belmar Fire Marshal Admits Committing Time Card FraudRead the Press Release
TRENTON, N.J. – A former Borough of Belmar fire marshal and senior lead fire protection inspector with the Picatinny Arsenal Fire Department today pleaded guilty to fraudulently reporting his hours on time cards to the Borough of Belmar, causing it losses of approximately $34,141, U.S. Attorney Paul J. Fishman announced.
John Rizzitello, 45, of Nashville, Tennessee, formerly of Freehold, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with fraudulently obtaining funds that belonged to the Borough of Belmar, a local government receiving federal funds.
According to documents filed in this case and statements made in court:
From January 2013 to December 2014, Rizzitello intentionally reported, and was compensated for, working approximately 1,540 hours for the Borough of Belmar Fire Department that he did not work, including instances when he was actually working at Picatinny Arsenal.
During the plea hearing, Rizzitello also admitted that he intentionally reported, and was compensated for, working approximately 508 hours for the Picatinny Fire Department that he did not work, causing losses to Picatinny of approximately $10,644.
The charge to which Rizzitello pleaded guilty carries a maximum potential penalty of 10 years in prison and $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 27, 2016.
U.S. Attorney Fishman credited investigators with the Picatinny Arsenal Criminal Investigations Unit, under the direction of Picatinny Arsenal Garrison Commander Lieutenant Colonel Jeffrey Ivey, the Picatinny Arsenal Inspector General and Internal Review office, under the direction ARDEC Director John Hedderich, and criminal investigators with the U.S. Attorney’s Office with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Barbara R. Llanes of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Ryan J. Clark, Esq., New Jersey
Baton Rouge man sentenced to 51 months in prison for threatening Monroe magistrate judgeRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a prisoner in Jackson, La., was sentenced last week to 51 months in prison for sending threatening messages to U.S. Magistrate Judge Karen L. Hayes.
Charles Lidberg, 28, of Baton Rouge, La., was sentenced Thursday by U.S. District Judge S. Maurice Hicks Jr. on one count of making threatening communications. He was also sentenced to three years of supervised release. According to the August 16, 2016 guilty plea, Lidberg, who was serving time at a state correctional institution for an unrelated crime, mailed a letter on February 19, 2014 to Judge Hayes’ office stating that he would hunt down and kill her after he was released from prison. Lidberg said his friend promised him half a million dollars to kill the judge if she sentenced Lidberg’s friend to more than 10 years in prison. Lidberg also said he did not state his friend’s name because that would “take the fun out of this.” He also gave a second letter threatening the judge to a fellow inmate who turned it over to law enforcement agents.
The U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney John Luke Walker prosecuted the case.
Bailey Boys Gang Member Sentenced on Rico ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Eddie Allen, 27, of Buffalo, NY, who was convicted of RICO Conspiracy in connection with a deadly shooting, was sentenced to 121 months in prison by Senior U.S. District Judge William M. Skretny.
According to Assistant U.S. Attorneys Meghan A. Tokash and Michael P. Felicetta, who are handling the prosecution of this case, Allen was a member of the Bailey Boys Gang, a violent criminal gang which operates in an area of the City of Buffalo bounded by Winspear Avenue, the Kensington Expressway, Eggert Road and Main Street.
• On July 9, 2011, the defendant traveled to Genesee and Guilford Streets, territory controlled by rival LRGP Gang members. Allen fired into a group of individuals who he believed were LRGP members. Three men were struck, two survived. The third individual was paralyzed and died seven months later.
• On November 9, 2011, Allen, and other members of the Bailey Boys Gang robbed several people at a house party on Rounds Avenue in Buffalo. During the course of these robberies, the defendant shot and wounded an unarmed man who was lying on the ground.As a result of the ongoing investigation into the Bailey Boys Gang, members now stand accused of four murders, 14 attempted murders, including four drive-by shootings. The attempted murders include a shooting that occurred during a neighborhood party with numerous children present and a shooting that occurred during a robbery. A total of 12 were arrested and to date, eight defendants have been convicted. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Today’s sentencing is the result of an ongoing investigation on the part of the United States Attorney’s Office in close cooperation with the Erie County District Attorney’s Office, under the direction of Acting District Attorney Michael Flaherty, the Buffalo Police Department, under direction of Police Commissioner Daniel Derenda, the Federal Bureau of Investigation’s Safe Streets Task Force, under the Direction of Special Agent-in-Charge Adam S. Cohen, the Erie County Sheriff’s Office, under the direction of Sheriff Timothy B. Howard, the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Ashan Benedict, New York Field Division.
Attorney Sentenced to Serve 14 Years in Prison for Traveling from Oklahoma City to Peru to Engage in Sex with Girls Under 18Read the Press Release
Oklahoma City, Oklahoma – Today, MICHAEL DEAN BILLINGS, 61, a former attorney from Oklahoma City, was sentenced by United States District Judge Vicki Miles-LaGrange to serve 168 months (14 years) in federal prison for traveling from Oklahoma City to Iquitos, Peru, to engage in illicit sexual conduct with Peruvian girls under 18 years of age, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
Billings was indicted on October 22, 2014. On November 12, 2015, he pled guilty to traveling internationally from Oklahoma City to Iquitos, Peru, from January 1, 2011 through February 21, 2013, to engage in illicit sexual conduct with a Peruvian girl under 18 years of age. Reference is made to the court record for further information.
Today, Billings was sentenced to serve 168 months in federal prison. Following his release from prison, Billings will serve five years of supervised release and be required to register as a sex offender for life. He was immediately remanded into custody of the United States Marshal to begin serving his sentence.
This case is the result of an investigation by the Federal Bureau of Investigation, the U.S. Drug Enforcement Administration, and the Peruvian National Police. The case is being prosecuted by Assistant U.S. Attorney David Petermann.
Armed Career Criminal Sentenced to 15 YearsRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Timothy Dale Washington, II (33, Tampa) to 15 years in federal prison for possessing a firearm and ammunition as a convicted felon. The Court also ordered him to forfeit the firearm and ammunition used in the offense. He pleaded guilty on September 12, 2016.
According to court documents, on January 24, 2016, deputies from the Hillsborough County Sheriff’s Office located Washington at an apartment complex in Tampa, pursuant to an outstanding arrest warrant. As the deputies announced their presence and approached Washington, he removed a pistol from his pants, dropped it, and fled. The deputies apprehended and arrested Washington. At the time, Washington had multiple prior felony convictions for violent offenses and serious drug offenses, and therefore was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Taylor G. Stout.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Armed Bank Robber Sentenced to 155 Months in PrisonRead the Press Release
TUCSON, Ariz. – On Dec. 19, 2016, Robert Mark Baron, 54, of Tucson, Ariz., was sentenced by U.S. District Judge Cindy K. Jorgenson to a total of 155 months in prison. Baron had previously pleaded guilty to armed bank robbery.
On Feb. 23, 2015, Baron entered a Bank of America in Tucson, Ariz., brandishing what was later determined to be a fake Uzi-style assault gun. He made off with an undisclosed amount of cash, but was captured the next day by Tucson police officers.
At the time of the robbery, Baron was also on federal supervised release for unlawfully carrying a shotgun in Utah. Baron received an additional 30 months’ imprisonment for violating his Utah supervision and the two sentences were ordered to be served consecutively, resulting in a total term of 155 months of imprisonment.
The investigation in this case was conducted by the Tucson Police Department and the Federal Bureau of Investigation. The prosecution was handled by Micah Schmit, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-15-0491-TUC-CKJ and CR-13-50156-001-TUC-CKJ
RELEASE NUMBER: 2016-103_BARON
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Arlington Woman Sentenced for Counterfeit Handbag SchemeRead the Press Release
ALEXANDRIA, Va. – Praepitcha Smatsorabudh, 41, of Arlington, was sentenced today to 30 months in prison for running a multiyear scheme to defraud department stores across the country. Smatsorabudh was also sentenced to three years of supervised release, and ordered to pay $403,250.81 in forfeiture and the same amount in restitution to her victims.
Smatsorabudh pleaded guilty to wire fraud on August 3. According to court documents, Smatsorabudh bought brand name purses online and then returned in their place counterfeit purses, which were smuggled into the country from China. She then sold the authentic purses on Instagram for more than $2,000 each. In order to avoid detection, Smatsorabudh made fraudulent returns at over 60 department store locations in 12 states. In total, her scheme defrauded department stores out of more than $400,000.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, made the announcement after sentencing by U.S. District Judge Gerald Bruce Lee. Assistant U.S. Attorney Kellen S. Dwyer prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 16-cr-168.
$4.1M Collected in Civil and Criminal Actions for U.S. Taxpayers in FY 2016Read the Press Release
PROVIDENCE - U.S. Attorney Peter F. Neronha announced today that the District of Rhode Island collected $4,142,183.02 in criminal and civil actions in Fiscal Year 2016. Of this amount, $3,603,251.74 was collected in criminal actions and $538,931.28 was collected in civil actions.
Additionally, the U.S. Attorney’s Office in Rhode Island worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $836,334.27 in cases pursued jointly with these offices. Of this amount, $836,159.27 was collected in civil actions.
Collections in fiscal year 2016 bring the total amount of collections for U.S. taxpayers by the United States Attorney’s Office in Rhode Island over the past three fiscal years to more than $13.4 million dollars ($13,421,689.12).
Attorney General Loretta E. Lynch announced that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
“The mission of this Office is broad and multi-faceted, but at its heart, it is to ensure the safety, well-being and quality of life for all Rhode Islanders,” said United States Attorney Peter F. Neronha. “Whenever federal monies are misspent, there are fewer funds available, for example, for the infrastructure and other public projects this state so desperately needs. When individuals engage in fraud or manipulative schemes to deprive Rhode Island residents of their hard-earned money, there are often devastating consequences for those individuals and their families. Accordingly, ensuring that public and private funds are not misspent or stolen, and ensuring that such monies once misspent or stolen are repaid, is critical work, and we will continue to do it to the best of our ability.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s Office in Rhode Island, working with partner agencies and divisions, collected $2,940,027 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
20 December 2016
“Ygz” Gang Members Plead Guilty in Manhattan Federal Court to Murders and Other Crimes in Connection with Racketeering ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that TERRANCE WILLIAMS, a/k/a “TA,” and WENDELL BELLE, a/k/a “Delly Dell,” pled guilty in Manhattan federal court to racketeering and firearms charges involving multiple acts of violence. WILLIAMS pled guilty yesterday and BELLE pled guilty this morning before United States District Judge Valerie E..Caproni. Through their guilty pleas, WILLIAMS admitted his murder of Curtis Smith on July 3, 2011, and BELLE admitted his murder of Moises “Noah” Lora on April 16, 2012. Both of these murders were committed in the South Bronx within the confines of the New York City Police Department’s 40th Precinct, and both were committed in connection with WILLIAMS and BELLE’s membership in the violent “Young Gunnaz” street gang (“YGz”).
As part of his guilty plea, WILLIAMS admitted to shooting and killing Curtis Smith, a 23-year-old, on Park Avenue near the Jackson Houses in the South Bronx, and to shooting and injuring a rival gang member in front of the Sweet Corner convenience store at Park Avenue and 158th Street in the South Bronx. On August 31, 2016, WILLIAMS pled guilty under a prior plea agreement with this Office before Judge Caproni to racketeering conspiracy based on his commission of certain acts of violence and drug crimes for the YGz gang. As a result of law enforcement’s continuing investigation in this case, at yesterday’s plea proceeding before Judge Caproni, WILLIAMS withdrew his previously entered guilty plea and pled guilty under a new plea agreement with the Office to racketeering conspiracy based on the murder of Curtis Smith and the separate attempted murder described above, and based also on his commission of the acts of violence and drug crimes that he had previously admitted on August 31, 2016. In light of WILLIAMS’s guilty plea in federal court yesterday, WILLIAMS faces a maximum term of life in prison.
As part of his guilty plea, BELLE admitted to the brutal assault of Moises “Noah” Lora, during which BELLE and others stomped Lora to death in the courtyard of a residential housing complex located at 700 Morris Avenue in the South Bronx. BELLE also admitted to the attempted murder of another rival gang member on November 16, 2013, immediately in front of the Bronx Criminal Courthouse, during which BELLE fired multiple shots at his rival. WILLIAMS was previously arrested for murdering Curtis Smith based on state charges filed by the Bronx District Attorney’s Office, but the charges were later dismissed. In light of BELLE’s guilty plea today, BELL faces a maximum term of life in prison and mandatory term of 30 years in prison. Both WILLIAMS and BELLE are scheduled to be sentenced later this year before Judge Caproni.
Manhattan U.S. Attorney Preet Bharara said: “For far too long, members of the YGz gang and their rival gangs have terrorized communities in the Bronx by engaging in all manner of mayhem – including murder, attempted murder, and other racketeering activities. Terrance Williams and Wendell Belle almost got away with murder, but thanks to the tireless efforts of law enforcement, they have both pled guilty to murders they committed as members of the Ygz gang.”
According to the charging and other documents filed in the case, as well as statements made during the plea proceedings:
WILLIAMS was a member of the Bronx-based street gang known as the YGz, a leading member of a set of the YGz based in Maria Lopez Plaza in the Bronx, and committed acts of violence with other YGz gang members to further the goals of the gang. BELLE was a leading member of the YGz set based in the River Park Towers in the Bronx, and also committed multiple acts of violence with other YGz gang members. From at least 2005 to 2016, members and associates of the YGz enriched themselves by committing robberies and by selling drugs, such as crack cocaine, heroin, and marijuana, and committed acts of violence, including murder and attempted murder, against various people, including rival gang members, rival drug traffickers, and innocent bystanders. As part of this enterprise, members and associates of the YGz killed and attempted to kill other individuals.
As part of their involvement in the YGz gang, WILLIAMS and BELLE each participated in acts of violence, as well as narcotics trafficking, with other YGz members.
For example, on July 3, 2011, WILLIAMS and several other YGz members rode on bicycles from YGz territory on Morris Avenue near 151st Street northbound to the territory of a rival gang on Park Avenue near 158th Street in the South Bronx. Upon arriving in the rival gang’s territory, WILLIAMS saw a rival gang member standing at the corner of Park Avenue and 158th Street in front of the Sweet Corner convenience store. From his bicycle, WILLIAMS pulled out a gun and fired gunshots at this rival gang member, two of which hit and injured the rival, who survived the shooting.
On the same date, after that shooting was complete, WILLIAMS decided to ride his bicycle southbound on Park Avenue with the goal of returning to YGz territory. While WILLIAMS was riding south on Park Avenue, he saw a group of people who appeared to be running at him from an apartment building in the rival gang’s territory. WILLIAMS fired gunshots at this group of people, and hit one of them – 23-year-old Curtis Smith – in the head. Smith died several days later.
Meanwhile, on November 16, 2013, only days before his attempted murder in the shadow of the Bronx County Criminal Court, BELLE and other YGz members and associates approached members of a rival gang based on Courtlandt Avenue in the Bronx and fired several shots in the hope of killing those rivals. In the chaos of that shooting, one of BELLE’s fellow gang members struck and injured an innocent bystander.
WILLIAMS, BELLE, and multiple other YGz members were included in a December 2015 federal racketeering prosecution captioned United States v. Ramel Matthews, et al., now before Judge Caproni, in which all of the defendants were charged with racketeering conspiracy for participation in the YGz gang, and various of the defendants were also charged with participation in several murders, attempted murders, narcotics trafficking, and firearms offenses.
WILLIAMS was the third defendant and BELLE was the fourth defendant in a racketeering prosecution by this Office of multiple YGz members to admit participation in YGz gang-related murders. Earlier this year, as part of guilty plea proceedings before Judge Caproni in that case, co-defendant Anthony Scott, a/k/a “Tyson,” admitted to shooting and killing Darrel Ledgister on June 27, 2009, in the South Bronx within the 40th Precinct, during an attempted robbery, and Paul Gilbert, a/k/a “2Fly Tay,” admitted to participating in the murder of Cody Dubose on September 27, 2014, near the Taft Houses in Manhattan during an attempted robbery.
WILLIAMS was previously arrested for murdering Curtis Smith based on state charges filed by the Bronx District Attorney’s Office, but the charges were later dismissed. Through the subsequent federal investigation of the YGz gang, this Office and its law enforcement partners further developed the evidence of WILLIAMS’s guilt, culminating in his plea yesterday.
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Mr. Bharara praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the New York City Police Department in the investigation of this case. He also thanked the Bronx District Attorney’s Office for their support in this case.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Samson Enzer, Andrew C. Adams, Gina Castellano, and James McDonald are in charge of the prosecution.
Wilburton Man Pleads Guilty to ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that TIMOTHY BLAYN CROCKER, age 25, of Wilburton, Oklahoma, pled guilty to CONSPIRACY, in violation of Title 18, United States Code, Section 371, punishable by not more than 5 years imprisonment and up to a $250,000.00 fine or both.
The Indictment alleged that beginning in or about October 2015, until on or about December 7, 2015, in the Eastern District of Oklahoma, the defendant, did, knowingly and intentionally conspire, confederate and agree with others both known and unknown to commit offenses against the United States; namely, possession with intent to distribute and distribution of methamphetamine and marijuana.
From approximately August 2015 until December 2015, CROCKER was a correctional officer with the Oklahoma State Penitentiary (OSP) located in McAlester, Oklahoma. While employed in this capacity, CROCKER agreed to provide contraband items to inmates within the prison. On or about December 7, 2015, CROCKER possessed approximately one pound of marijuana, 150 grams of methamphetamine, and tobacco which he intended to transport to OSP and provide to inmates inside the prison. CROCKER was paid approximately $1,000.00 for each shipment of contraband items he delivered to the prison. CROCKER is no longer employed at OSP.
The charge arose from a joint investigation by the Oklahoma Bureau of Narcotics and the Drug Enforcement Administration. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain on bond pending a sentencing hearing.
Assistant United States Attorney Shannon Henson represented the United States.
Volkswagen to Recall 83,000 3.0 Liter Diesel Vehicles and Fund Mitigation Projects to Settle Allegations of Cheating Emissions Tests on Volkswagen, Audi and Porsche VehiclesRead the Press Release
In a second partial settlement announced today by the U.S. Department of Justice, the Environmental Protection Agency (EPA) and the State of California, automakers Volkswagen AG, Audi AG, Porsche AG and related entities (collectively referred to as Volkswagen), have agreed to recall 83,000 model year 2009 through 2016 3.0 liter diesel vehicles sold or leased in the U.S. that are alleged to be equipped with “defeat devices” to cheat emissions tests, in violation of the Clean Air Act and California law.
For the older vehicles, Volkswagen is required to offer to buy back the vehicles or terminate leases, and must also offer an emissions modification to substantially reduce emissions if one is proposed by Volkswagen and approved by regulators. For the newer vehicles, if Volkswagen demonstrates it can make the vehicles compliant with the certified exhaust emission standards, it will have to fix the vehicles and will not be required to buy the vehicles back. Volkswagen is also required to spend $225 million to fund projects that will reduce emissions of nitrogen oxide (NOx).
Today’s partial settlement does not resolve any pending claims for civil penalties, nor does it address any potential criminal liability. The settlement also does not resolve any consumer claims, claims by the Federal Trade Commission or claims by individual owners or lessees who may have asserted claims in the ongoing multidistrict litigation. The state of California has secured a separate resolution for the 3.0 liter violations that addresses issues specific to vehicles and consumers in California.
The affected older vehicles (referred to as “generation 1” vehicles) are the 2009 through 2012 Volkswagen Touareg and Audi Q7 diesel models. The affected newer vehicles (referred to as “generation 2” vehicles) are the 2013-2016 Volkswagen Touareg diesels, 2013 through 2015 Audi Q7 diesels, 2013 through 2016 Porsche Cayenne diesels and 2014 through 2016 Audi A6 quattro, A7 quattro, A8, A8L and Q5 diesel models.
“The settlement marks another significant step in holding Volkswagen accountable for cheating Americans out of the promise of cleaner air by selling vehicles equipped with defeat devices,” said Assistant Attorney General John C. Cruden. “This consent decree provides a remedy for every affected vehicle which will be removed from the road or meet enforceable standards that will reduce emissions, and will also require VW to provide additional funding to address the harmful impacts to human health and the environment from VW’s violations.”
“EPA has a public health imperative to hold Volkswagen accountable and remedy the illegal pollution their cars put into the air,” said Cynthia Giles, EPA’s Assistant Administrator for Enforcement and Compliance Assurance. “From the start, our team vigorously pursued this case to ensure these cars were fixed or taken off the road. Today we’ve secured another important settlement that delivers on EPA’s essential public health mission.”
“This settlement highlights the fact that cheating to get a car certified has consequences for air quality and the public’s health – and that cheaters will be caught and held accountable,” said CARB Executive Officer Richard Corey. “Because California is able to enforce its vehicle regulations, CARB was instrumental in uncovering the cheating in the 3 liter, and before that, in the 2 liter diesel engines. The mitigation in this settlement will now help California address its serious air quality and climate challenges with a focus on putting the very cleanest vehicles in disadvantaged communities where they are needed most.”
According to the civil complaint against Volkswagen filed by the Justice Department on behalf of EPA on Jan. 4, 2016, and amended on Oct. 7, 2016, Volkswagen allegedly equipped its 3.0 liter diesel vehicles with illegal software that detects when the car is being tested for compliance with EPA or California emissions standards and turns on required emissions controls only during that testing process. During normal driving conditions, the software renders these emissions control systems inoperative or reduces their effectiveness, resulting in increased emissions. This is known as a defeat device. By using a defeat device, these cars meet emissions standards in the laboratory, but emit up to nine times or more above the EPA-compliant levels for NOx during normal on-road driving conditions. The Clean Air Act requires manufacturers to certify to EPA that vehicles will meet federal emissions standards. Vehicles with defeat devices cannot be certified.
Because Volkswagen cannot modify the affected 2009 through 2012 Volkswagen Touareg and Audi Q7 generation 1 diesel vehicles to meet EPA-certified exhaust emissions standards, the settlement requires Volkswagen to offer owners of generation 1 vehicles the option to have the company buy back the car and to offer lessees a lease cancellation at no cost. If a plan is proposed by Volkswagen and approved by EPA and CARB to substantially reduce emissions from the generation 1 vehicles, Volkswagen will also have to offer that as an option for consumers.
For the generation 2 vehicles, Volkswagen will recall and fix these vehicles so they meet their certified exhaust emissions standards, after the technical solution is approved by regulators. If after extensive testing the solution does not perform as expected and is not approved, Volkswagen must offer to buy back the vehicles. In that case, the company can also seek approval of an emissions modification plan to substantially reduce emissions and, if approved, can offer that as an additional option for generation 2 vehicles.
Under the terms of the settlement, Volkswagen must achieve an overall recall rate of at least 85 percent for each of the generation 1 and generation 2 vehicles recall programs or pay additional sums into the mitigation trust fund. The buyback and lease termination program for generation 1 vehicles will begin within 30 days following court approval of the settlement. Vehicle modifications will become available to eligible owners and lessees once the modifications are approved by regulators.
Vehicle owners and lessees will receive updated information from Volkswagen, Audi and Porsche concerning their available buyback or modification options after today’s settlement is approved by the court, and can also obtain information about these options at: www.VWCourtSettlement.com and www.AudiCourtSettlement.com.
The settlement requires Volkswagen to pay $225 million to fund projects across the country that will reduce emissions of NOx where the 3.0 liter vehicles were, are or will be operated. This funding is intended to fully mitigate the past and future NOx emissions from the 3.0 liter vehicles. That money will be placed in the same mitigation trust to be established under the partial settlement for the 2L vehicles. This $225 million is in addition to the $2.7 billion that Volkswagen is required to pay into that trust under the prior settlement. The mitigation trust will be administered by an independent trustee. Beneficiaries, which may include states, Puerto Rico, the District of Columbia and Indian tribes, may obtain funds for designated NOx reduction projects upon application to the trustee.
The emissions reduction program will help reduce NOx pollution that contributes to the formation of harmful smog and soot, exposure to which is linked to a number of respiratory- and cardiovascular-related health effects as well as premature death. Children, older adults, people who are active outdoors (including outdoor workers) and people with heart or lung disease are particularly at risk for health effects related to smog or soot exposure. NO2 formed by NOx emissions can aggravate respiratory diseases, particularly asthma, and may also contribute to asthma development in children.
The provisions of the settlement are contained in a proposed consent decree filed today in the U.S. District Court for the Northern District of California, as part of the ongoing multi-district litigation, and will be subject to public comment period of 30 days, which will be announced in the Federal Register in the coming days. The consent decree will be available for viewing at www.justice.gov/enrd/consent-decrees.Union County, New Jersey, Man Gets over Four Years in Prison for Conspiracy to Import Ethylone from ChinaRead the Press Release
NEWARK, N.J. – A Rahway, New Jersey, man was sentenced today to 57 months in prison for his role in a conspiracy to traffic approximately four kilograms of ethylone from China to New Jersey, U.S. Attorney Paul J. Fishman announced.
Michael Correa, 32, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging him with one count of conspiring to distribute Ethylone, a Schedule I controlled substance. Judge Hayden imposed the sentence in Newark federal court.
According to documents filed in this case and statements made in court:
From October 2013 through July 2014, Correa conspired with Thomas Seymore, 38, of Carteret, New Jersey, and others to distribute approximately four kilograms of ethylone, which had been ordered from China and shipped to a location in Teaneck, New Jersey. Ethylone, sometimes referred to as “bath salts” or “molly,” is an illegal synthetic drug that stimulates the central nervous system and can cause hallucinogenic effects.
In addition to the prison sentence, Judge Hayden also sentenced Correa to three years of supervised release. Seymore pleaded guilty to his role in the scheme on Oct. 25, 2016 and is scheduled for sentencing on Feb. 1, 2017.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski; special agents of the U.S. Department of Homeland Security-Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola; and postal inspectors with the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn, with the investigation.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of Organized Crime Drug Enforcement Task Force Unit (OCDETF).
Defense Counsel: Steven Altman Esq., New Brunswick, New Jersey
U.S. Attorney’s Office Based in Los Angeles Collected Nearly $72 Million in Civil and Criminal Actions for Taxpayers in Fiscal Year 2016Read the Press Release
LOS ANGELES – United States Attorney Eileen M. Decker announced today that her office collected $71,732,281 in criminal and civil actions in Fiscal Year 2016. Of this amount, just over $27 million was collected in criminal actions, and $44.6 million was collected in civil actions.
The United States Attorney’s Office for the Central District of California worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $7.8 million in joint cases, mostly civil matters.
Additionally, the U.S. Attorney’s office, working with partner agencies and divisions, collected $29.9 million in asset forfeiture actions in the fiscal year that ended on September 30. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
“Every year, my office helps collect millions of dollars that goes to help victims of crime and to the United States Treasury to fund government programs,” said United States Attorney Eileen M. Decker. “We are committed to recovering every dollar from defendants involved in criminal activity, as well as working on behalf of the victims of crime.”
The United States Attorney’s Office for the Central District of California is based in Los Angeles and has branch offices in Santa Ana and Riverside. Currently, approximately 270 Assistant United States Attorneys serve nearly 20 million residents of the counties of Los Angeles, Orange, Riverside, San Bernardino, Ventura, Santa Barbara and San Luis Obispo.
Attorney General Loretta E. Lynch has announced that the Justice Department collected more than $15.3 billion in civil and criminal actions in fiscal year 2016 – a figure that represents more than five times the approximately $3 billion appropriated budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department.
The U.S. Attorneys’ Offices, along with the Justice Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S., as well as criminal debts owed to federal crime victims. Federal law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
Assistant United States Attorney Indira Cameron-Banks is the Chief of the Financial Litigation Section in the Civil Division. In that position, she is responsible for coordinating efforts to collect criminal and civil debts owed to victims of federal crimes and the United States, including restitution, fines, civil settlements, penalties and defaulted federal loans. These efforts include locating debtors’ assets and initiating enforcement actions to secure collection on the outstanding debts.
Three U.S. Virgin Islands Residents Sentenced in Money Laundering ConspiracyRead the Press Release
St. Thomas, USVI – On December 19, 2016, District Court Judge Curtis V. Gomez sentenced three defendants for a money laundering conspiracy that operated from Los Angeles, California to St. Thomas, United States Attorney Ronald W. Sharpe announced. Demincia Dore, 31, of St. Thomas, was sentenced to eight months’ imprisonment, three years of supervised release, 300 hours of community service, and a $100 special assessment. Kishma Weeks, 27, of St. Croix, was sentenced to 18 months’ imprisonment, three years of supervised release, 300 hours of community service, and a $100 special assessment. Tamisha McBean, 32, of St. Thomas, was sentenced to 12 months’ imprisonment, three years of supervised release, 300 hours of community service, and a $100 special assessment. All three defendants were also ordered to forfeit to the United States $351,000, payable jointly and severally, which represents the proceeds from the sale of the marijuana in this case.
On June 30, 2016, Dore pleaded guilty in federal court to Count 27 of the Superseding Indictment which charged money laundering conspiracy. Weeks and McBean pleaded guilty to that count on July 6, 2016. According to the plea agreements filed with the court, between July 2012 and December 2013, Dore, Weeks and McBean were members of a drug trafficking organization that shipped barrels containing at least 700 kilograms but less than 1,000 kilograms of marijuana concealed in Chow Mein cans from Los Angeles to St. Thomas utilizing a trucking company. Dore, Weeks, and McBean deposited, or caused to be deposited, over $100,000, which represented proceeds from the marijuana sales, into their bank accounts in St. Thomas, and then wired, or caused the marijuana proceeds to be electronically wired, to other members of the conspiracy on the mainland United States.
Clarence Griffin, Robert Brown and Trevor Dolphin, who pleaded guilty to drug trafficking conspiracy, were sentenced on March 5, 2015 and October 6, 2016. Felix, who pleaded guilty to money laundering conspiracy, was sentenced on October 6, 2016, and Larry Thompson, who pleaded guilty to misprision of felony, was sentenced on August 25, 2016.
This case is the result of a joint investigation by the U.S. Drug Enforcement Administration and the U.S. Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant United States Attorney Delia L. Smith.
Three Rockford-Area Men Sentenced on Arson Conspiracy ChargeRead the Press Release
ROCKFORD — Three Rockford-area men have been sentenced for their roles in an arson conspiracy to use an explosive to damage a pickup truck.
Today, JASON VANDUYN, 41, of Machesney Park, was sentenced by U.S. District Judge Philip G. Reinhard to 151 months in federal prison, to be followed by three years of supervised release. On Sept. 19, 2016, Vanduyn pleaded guilty to the conspiracy charge.
According to the written plea agreement, Vanduyn admitted that between June 7, 2015, and June 12, 2015, he recruited co-defendants BRIAN BURD, 48, and ROBERT WARMOTH, 43, both of Rockford, to blow up a pickup truck. As stated in the plea agreement, Vanduyn had been in a fistfight with the owner of the truck on June 7, 2015, and Vanduyn wanted to exact revenge on the owner. Vanduyn offered to pay Burd and Warmoth to blow up the truck and provided them with an explosive to use. During the early morning hours of June 12, 2015, Warmoth drove Burd to an area near Theodore Street in Loves Park, where the truck was parked. Burd smashed a window on the truck and placed the explosive in the truck where it detonated. No one was injured in the ensuing explosion.
Burd and Warmoth pleaded guilty to the conspiracy charge on Aug. 8, 2016. On Dec. 12, 2016, Burd and Warmoth were each sentenced to 30 months in federal prison, to be followed by three years of supervised release. Judge Reinhard also ordered restitution of $12,000, jointly and severally, to be paid by the three co-defendants.
The sentencings were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; George Lauder, Acting Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; and, Chuck Lynde, Chief of the Loves Park Police Department. The investigation was conducted under the auspices of the FBI Safe Streets Task Force, which includes representatives from FBI, ATF, Loves Park Police Department, Winnebago County Sheriff’s Department, and Rockford Police Department.
The government was represented by Assistant U.S. Attorney Margaret J. Schneider.
Three Arrested and Charged with Conspiracy to Possess CocaineRead the Press Release
In El Paso, three members of one of El Paso’s well known drug trafficking organization were arrested last Friday for conspiracy to possess with intent to distribute cocaine announced U. S. Attorney Richard L. Durbin, Jr., and Special Agent in Charge Waldemar Rodriguez, Homeland Security Investigations (HSI) El Paso Division.
A federal complaint filed yesterday charges Jose Guadalupe Torres-Magana, 55, Patricia Torres, 56 and Alfonso Govea, 32, all from El Paso, with conspiracy to possess approximately 8.2 kilograms of cocaine.
“The arrests of members of the Torres Drug Trafficking Organization have effectively dismantled a large scale smuggling organization responsible for staging and transporting large amounts of cocaine from El Paso to Chicago," said Special Agent in Charge, Waldemar Rodriguez, HSI El Paso. "This case is another example of our cooperation with various law enforcement agencies and the U.S. Attorney's office in charging those who seek to circumvent the laws of the United States.”
All three defendants remain in federal custody, pending a detention hearing on Thursday.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
This case is being investigated by the U. S. Immigration and Customs Enforcement’s Homeland Security Investigations. Assistant United States Attorney Lisa Leontiev is prosecuting this case on behalf of the Government.
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Sycamore Attorney Indicted on Bankruptcy Fraud ChargesRead the Press Release
ROCKFORD — A Sycamore attorney was indicted today by a federal grand jury on charges of bankruptcy fraud.
KEVIN O. JOHNSON, also known as “K.O. Johnson,” 50, of Sycamore, was charged with four counts of bankruptcy fraud and four counts of making a false oath in a bankruptcy case under penalty of perjury, fraudulently concealing or withholding information in the books or records of the financial affairs of the debtor, and concealing assets.
As alleged in the indictment, Johnson, a Sycamore attorney whose practice included bankruptcy law, filed a Chapter 7 Bankruptcy Petition on Dec. 31, 2011. The indictment alleges that Johnson fraudulently concealed property from the bankruptcy trustee, creditors, and the United States Trustee, including complete information about $1,790,000 of account receivables owed to Johnson by his present and former clients. The indictment charges that Johnson failed to comply with a court order requiring Johnson to turn over all proceeds from the collection of the account receivables. Johnson is further charged with having directed clients not to send any payments to the Bankruptcy Trustee and asking clients to sign misleading documents about the nature of payments they made, despite Johnson knowing that all future account receivable payments were required to be made to the Trustee.
The indictment also alleges that Johnson made false statements concerning his security interests and liens on the $1,790,000 of account receivables, removed invoices and fee agreements from client files, and obstructed the Bankruptcy Trustee by omitting a bank account Johnson used to deposit a check received in payment of an account receivable owed to Johnson at the time he filed for bankruptcy.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Each charge in this case carries a maximum penalty of up to five years in prison, and a fine of up to $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater. The Court may also impose a sentence of probation of one to five years, and a term of supervised release of up to three years. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Sunland Park, N.M., Man Pleads Guilty to Participating in Doña Ana County Cocaine Trafficking RingRead the Press Release
ALBUQUERQUE – Joel Ibarra, Jr., 21, of Sunland Park, N.M., pled guilty today in federal court in Las Cruces, N.M., to participating in a conspiracy to distribute cocaine in Doña Ana County, N.M. Under the terms of his plea agreement, Ibarra will be sentenced to 27 months in prison followed by a term of supervised release to be determined by the court.
Ibarra was arrested in Sept. 2016, on an indictment alleging cocaine trafficking charges. The 18-count indictment is the result of a six-month investigation, which was designated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) program, targeting a drug trafficking organization allegedly led by Joel Ibarra-Torres, 46, a Mexican national, that allegedly distributed cocaine in Doña Ana County.
The indictment alleged that Ibarra-Torres and seven co-conspirators, including several members of Ibarra-Torres’ family, participated in a cocaine trafficking conspiracy that existed from at least March 31, 2016 until Sept. 20, 2016. The indictment also alleged that Ibarra-Torres and two of his co-defendants participated in an international money laundering conspiracy. It also charged certain of the defendants with substantive cocaine trafficking offenses and with using telephones to facilitate their drug trafficking activity. The indictment included forfeiture provisions that seek the forfeiture of at least $31,620, constituting proceeds of the defendants’ alleged criminal activities, to the United States.
During today’s proceedings, Ibarra pled guilty to Count 1 of the indictment charging him with conspiracy to distribute cocaine and Count 2 of the indictment charging him with money laundering. In entering the guilty plea, Ibarra admitted that from June 2016 through Sept. 20, 2016, he agreed with his co-defendants to distribute between 500 grams and 2 kilograms of cocaine which was smuggled into the United States from Mexico in ¼ kilogram packages and then delivered to other individuals. Ibarra further admitted that on Aug. 3, 2016, he transported $3,582 in drug proceeds through the Port of Entry in El Paso, Texas, to deliver to the source of supply in Mexico. A sentencing hearing has yet to be scheduled.
On Dec. 19, 2016, Gabriela Castro, 24, a legal permanent resident from El Paso, pled guilty to Count 1 of the indictment charging her with conspiracy to distribute cocaine. In entering the guilty plea, Castro admitted that on Aug. 26, 2016, she attempted to smuggle approximately 250 grams of cocaine into the United States from Mexico in exchange for payment. At sentencing, Castro faces a maximum penalty of 20 years in federal prison. A sentencing hearing has yet to be scheduled.
The remaining five co-defendants with the exception of Ibarra-Torres, who has yet to be arrested and is considered a fugitive, have entered pleas of not guilty pending trial. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
The investigation leading to the indictment was conducted by the Las Cruces office of the DEA, the U.S. Border Patrol and the FBI. The case is being prosecuted by Assistant U.S. Attorneys Terri J. Abernathy and Sarah M. Davenport of the U.S. Attorney’s Las Cruces Branch office.
Springfield Woman Sentenced to 50 Years for Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., woman was sentenced in federal court today for producing and distributing child pornography.
Tracy Ann Smith, 42, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 50 years in federal prison without parole.
On May 10, 2016, Smith pleaded guilty to one count of the sexual exploitation of a child and one count of receiving and distributing child pornography. Smith admitted that she used a minor, identified in court documents as 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.
Co-defendant Christopher Peck, 40, of Springfield, pleaded guilty on Nov. 17, 2016, and awaits sentencing.
Peck admitted that he used two minors, Jane Doe #1 and another minor identified in court documents as 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.
Under federal statutes, Peck is 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.
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."
Shawnee Man Pleads Guilty to Overland Park Bank RobberyRead the Press Release
KANSAS CITY, KAN. – A Shawnee man pleaded guilty Tuesday to robbing an Overland Park bank at gunpoint, U.S. Attorney Tom Beall said.
Mamoudou U. Kaba, 21, Shawnee, pleaded guilty to one count of bank robbery and one count of brandishing a firearm during the robbery. In his plea, he admitted that he brandished a gun on Sept 22, 2015, when he robbed U.S. Bank at 9900 West 87th in Overland Park, Kan.
He pointed a gun at a clerk and customers before fleeing the bank with stolen cash.
He faces up to 25 years on the robbery charge and not less than seven years on the firearm charge, with the sentences running consecutively.
The Overland Park Police Department and the FBI investigated. Assistant U.S. Attorney David Zabel is prosecuting.
Roanoke Man Sentenced on Drug and Gun ChargesRead the Press Release
Roanoke, VIRGINIA – A Roanoke man, who previously pled guilty to federal drug and gun charges, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke, United States Attorney John P. Fishwick Jr. announced today.
Felix Ayo Campbell, 40, of Roanoke, previously pled guilty to one count of possessing cocaine with the intent to distribute and one count of being a previously convicted felon illegally in possession of a firearm. Today in District Court, Campbell was sentenced to 72 months in federal prison.
“The deadly combination of illegal drugs and guns in our communities must continue to be addressed if we are ever to make our streets safer for future generations,” United States Attorney Fishwick said today.
According to evidence presented at previous hearings by Assistant United States Attorney Andrew Bassford, in March 2016 Campbell was arrested by law enforcement officers following a traffic stop and found to be in possession of cocaine and a firearm.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives, the Roanoke City Police and the Roanoke Valley HIDTA. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.