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Tuesday 1 November 2016
District Man Pleads Guilty to Robbery Charges Following Series of Hold-Ups of Convenience StoresRead the Press Release
WASHINGTON – Melvin Smith, 45, of Washington, D.C., pled guilty today to three counts of robbery in connection with a recent series of robberies of convenience stores in Northeast and Northwest Washington, announced U.S. Attorney Channing D. Phillips.
Smith pled guilty to the charges in the Superior Court for the District of Columbia. In entering his guilty plea, Smith admitted to robbing six convenience stores in just over four weeks this summer. He is to be sentenced on Jan. 11, 2017 by the Honorable Danya A. Dayson.
According to the government’s evidence, the robberies included these crimes:
-Aug. 19, 2016, approximately 1:40 a.m.: Smith entered a 7-Eleven store in the 1200 block of Brentwood Road NE, approached a store clerk, and demanded access to the cash register. He then took approximately $50 before fleeing.
-Sept. 6, 2016, approximately 10:55 p.m.: Smith entered the 7-Eleven store in the 1300 block of Second Street NE. He approached a cashier and reached into two cash registers, taking approximately $430 before fleeing.
- Sept. 10, 2016, approximately 2:10 a.m.: Smith entered the 7-Eleven store in the 4800 block of Nannie Helen Burroughs Avenue NE and displayed an object on his right hip, which store personnel believed to be a handgun. He proceeded to the cash registers, demanded that they be opened, and took an unspecified amount of cash before fleeing.
-Sept. 12, 2016, approximately 8:45 p.m.: Smith entered the 6 & Q Market, in the 500 block of Q Street NW. Wearing a mask, he ordered a store clerk to the cash register. When the clerk responded that he did not have a key to the register, Smith grabbed the entire register, which contained an unknown amount of cash, and fled.
-Sept. 13, 2016, approximately 1:30 a.m.: Smith returned to the 7-Eleven on Second Street NE. According to a store clerk, he was carrying what appeared to be a silver gun in his waistband and demanded cash from the cash register. Smith then removed approximately $100 from the store’s two cash registers and fled.
-Sept. 18, 2016, approximately 9:45 p.m.: Smith entered a 7-Eleven store in the 900 block of Bladensburg Road NE. Wearing a mask, he displayed what the clerk believed to be a dark gun in his waistband and demanded that the clerk open the register. Smith then proceeded to take money from both of the registers, before fleeing.
Smith was arrested on Sept. 19, 2016. When he was arrested, Smith was found to be in possession of a unique mask and bandana that surveillance video confirmed were used in the robberies. He has been in custody since his arrest. The guilty plea specified the offenses that were committed on Aug. 19, Sept. 6, and Sept. 12, 2016.
In announcing the plea, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the work of Assistant U.S. Attorney Richard Barker, who investigated and prosecuted the case.
District Election Officers Appointed to Handle Potential Complaints of Election Fraud and Voting Rights AbuseRead the Press Release
ALEXANDRIA, Va. – Assistant U.S. Attorneys James P. Gillis, Randy Stoker, and L. Margaret Harker have been appointed to serve as District Election Officers (DEO) for the Eastern District of Virginia, and will lead the efforts of this office in connection with the Justice Department’s nationwide Election Day Program for the upcoming general elections.
District Election Officers are responsible for overseeing the district’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington, D.C.
“Every citizen must be able to vote without interference or discrimination,” said U.S. Attorney Dana J. Boente. “They need to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
In order to respond to complaints of election fraud or voting rights abuses on November 8, the DEOs will be on duty while the polls are open.
From 6 a.m. to 8:30 a.m., and from 5 p.m. to 7 p.m., any calls should be directed to 703-299-3700. From 8:30 a.m. to 5 p.m., calls should be directed to the below phone numbers:
Alexandria - Assistant U.S. Attorney James P. Gillis, 703-299-3700
Norfolk and Newport News - Assistant U.S. Attorney Randy Stoker, 757-441-6331
Richmond - Assistant U.S. Attorney L. Margaret Harker, 804-819-5400
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
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.
Desloge Man Indicted for Robbing Blue Springs BankRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Desloge, Mo., man, who was arrested after a high-speed chase in Callaway County, Mo., was indicted by a federal grand jury today for robbing a Blue Springs, Mo., bank and for illegally possessing a firearm.
James Todd Hulsey, 51, of Desloge, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Hulsey on Oct. 17, 2016. Hulsey remains in federal custody.
Today’s indictment alleges that Hulsey stole $7,845 from Adams Dairy Bank on Oct. 14, 2016. In addition to bank robbery, the indictment charges Hulsey with one count of being a felon in possession of a firearm and one count of possessing and brandishing a firearm in furtherance of a crime of violence.
According to an affidavit filed in support of the original criminal complaint, Hulsey walked into Adams Dairy Bank, 651 N.E. Coronado Dr., Blue Springs, at approximately 12:15 p.m. on Oct. 14, 2016. Hulsey allegedly approached the teller counter, displayed a Diamondback Arms 9mm pistol, presented a demand note to the teller and threatened to kill her. The teller turned over $7,845, the affidavit says, and Hulsey fled from the bank on foot. A description of the robber and the associated vehicle used in the robbery were broadcast to law enforcement agencies.
A couple of hours later, the affidavit says, a state trooper saw Hulsey’s vehicle traveling eastbound on I-70 in Callaway County, Mo., and attempted to stop the vehicle. A vehicle pursuit ensued, reaching speeds of 120 – 130 miles per hour. Hulsey’s vehicle got a flat tire and ran off the road. Hulsey fled from the vehicle on foot and a 75-yard foot pursuit took place before Hulsey was taken into custody.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Hulsey has five felony convictions for bank robbery and felony convictions for an illegal weapon and for receiving stolen property.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Emily A. Orsinger. It was investigated by the FBI, the Blue Springs, Mo., Police Department, the Missouri State Highway Patrol and the Callaway County, Mo., Sheriff’s Department.
Daniel Burgess Pleads Not Guilty to Fraud ChargeRead the Press Release
The United States Attorney for the District of Vermont announced that Daniel Burgess, 50, of Stowe, pleaded not guilty on October 31, 2016 in United States District Court in Burlington to a charge of wire fraud. U.S. Magistrate Judge John M. Conroy released Burgess on conditions pending trial, which has not been scheduled.
On October 27, a federal grand jury in Burlington returned a one-count wire fraud charge indictment against Burgess. According to the indictment, Burgess engaged in the business of buying and selling securities through a company he owned named Tucker Financial Services. The indictment alleges that in July 2011, Burgess entered into a contract with a woman from Nevada in which Burgess agreed to try to sell 520,000 shares of a penny stock the woman owned. Under the terms of the agreement, the woman would receive 80% of the gross proceeds of any stock sales and Burgess would be entitled to the remaining 20%.
The indictment charges that between August and October 2011, Burgess sold all 520,0000 shares of the penny stock for a total of about $619,000. The woman’s 80% share of the sale proceeds was about $495,000. Burgess paid her about $246,000, but fraudulently converted the remaining money for his own use.
The United States Attorney emphasizes that the charge in the indictment is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Burgess faces up to 20 years of imprisonment and a fine of up to $500,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the Federal Bureau of Investigation and the Vermont Department of Financial Regulation.
Burgess is represented by Jasdeep Pannu. The prosecutor is Assistant U.S. Attorney Gregory Waples.
City of Fairfield and the Fairfield Housing Authority Pay $680,000 to Settle False Claims Act AllegationsRead the Press Release
SACRAMENTO, Calif. — The City of Fairfield and the Fairfield Housing Authority (FHA) paid $680,000 to settle federal False Claims Act allegations that they received grants to fund two coordinator positions for a federal housing program but did not use the funds for that purpose, Acting United States Attorney Phillip A. Talbert announced today.
The FHA administers the Section 8 Housing Choice Voucher Program (HCV), the HCV Homeownership Program, and the Family Self-Sufficiency Program (FSS) for the City of Fairfield. Section 8 of the federal Housing Act of 1937 authorizes the payment of rental housing assistance to private landlords on behalf of low-income households. The HCV Program is the federal government’s major program for assisting very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market. The FSS Program provides case management for Section 8 families who desire to improve their earning potential and move towards financial independence and homeownership.
According to court documents, the FHA, with the city’s approval, applied for and received federal grants from the Department of Housing and Urban Development (HUD) to fund two full-time FSS program coordinators from January 2012 through November 2014, but neither the city nor the FHA employed any full-time FSS program coordinators during that time. Court documents further allege that the FHA violated the False Claims Act by submitting data into HUD’s Voucher Management System, affirming that it was spending the grant funds on two full‑time FSS program coordinators, when no such coordinators were employed.
“Housing Authorities that receive HUD grants have a duty to help families in need,” said Acting U.S. Attorney Talbert. “When families try to become self-sufficient by applying to programs like Fairfield’s Family Self-Sufficiency Program, they deserve to be assisted at every step by dedicated and responsive professionals. This settlement helps to ensure that limited federal resources are used for that purpose.”
“HUD’s Family Self-Sufficiency program supports families living in public housing and those using Housing Choice Vouchers and working to increase their earned income,” said HUD Regional Administrator Jon Gresley. “With such limited resources available to help reduce household dependency on public subsidy, it is essential that the federal government steward these investments to maximize the benefit to eligible families in Fairfield and beyond. This agreement does that.”
The allegations resolved by the settlement were first raised in a lawsuit filed against the City of Fairfield and the FHA under the qui tam, or whistleblower, provisions of the False Claims Act by a former FHA employee. The False Claims Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The whistleblower in this matter will receive approximately $129,000 of the recovery.
This case was handled by Assistant United States Attorney M. Anderson Berry through a coordinated effort with the Department of Housing and Urban Development’s Eric Huhtala, Special Agent for the Office of Inspector General, and Ji Yoo, an attorney with the Office of General Counsel. The claims settled by this agreement are allegations only, and there has been no determination of liability.
California Woman Sentenced to Prison in Connection with Scheme to Defraud Struggling HomeownersRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MICHELLE LEFAOSEU, also known as “Michelle Bennett,” “Michelle Lee” and “Michelle Page,” 42, of Huntington Beach, Calif., was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 12 months and one day of imprisonment, followed by one year of supervised release, for participating in an extensive mortgage loan modification scheme.
According to court documents and statements made in court, LEFAOSEU worked at a California-based company that falsely purported to provide home mortgage loan modifications and other consumer debt relief services to numerous homeowners in Connecticut and across the United States in exchange for upfront fees. The company did business, at various times, as “First Choice Financial Group, Inc.,” “First Choice Financial,” “First Choice Debt,” “Legal Modification Firm,” “National Freedom Group,” “Home Care Alliance Group,” “Home Protection Firm,” “Hardship Center,” “Network Solutions Center, Inc.,” “Premiere Financial Center,” “Premiere Financial,” “Rescue Firm,” “International Research Group LLC,” “Hardship Solutions,” “American Loan Center,” “Loan Retention Firm,” “Clear Vision Financial,” “Green Tree Financial Group,” “Green Tree Financial,” “Enigma Fund, Inc.,” “National Aid Group,” “Southern Chapman Group LLC,” “Save Point Financial,” “Best Rate Financial Solutions,” “Best Rate Financial Solution,” “Best Rate Financial,” “Best Rate Finance Group,” and “Nation Star Financial.”
Aria Maleki presided over the entire structure of this scheme, and LEFAOSEU was head of the processing department. Acting as representatives of the above-named entities, members of Maleki’s sales team cold-called homeowners and offered to provide mortgage loan modification services to those who were having difficulty repaying their home mortgage loans. Homeowners were charged fees that typically ranged from approximately $2,500 to $4,300 for the services. To induce homeowners to pay these fees, scheme participants falsely represented that the homeowners already had been approved for mortgage loan modifications on extremely favorable terms; the mortgage loan modifications already had been negotiated with the homeowners’ lenders; the homeowners qualified for and would receive financial assistance under various government mortgage relief programs, including the Troubled Asset Relief Program and the Home Affordable Modification Program; and if for some reason the mortgage loan modifications fell through, the homeowners would be entitled to a full refund of their fees.
In fact, the homeowners had not been preapproved for mortgage loan modifications with lenders, mortgage loan modifications had not been negotiated with the lenders, homeowners had not qualified for and did not receive any financial assistance through government mortgage relief programs, and homeowners did not receive a refund of their fees upon request. Few homeowners ever received any type of mortgage loan modification through the defendants’ company, and few homeowners received refunds of their fees.
Participants in the scheme used pseudonyms and periodically changed their business and operating names to evade detection. They also directed homeowners to mail their checks to addresses and mail boxes that Maleki and others had set up in states other than California.
After members of the sales team fraudulently induced homeowners to pay for the company’s services, the homeowners’ files were transferred to LEFAOSEU and the junior processors working under her supervision. LEFAOSEU was fully aware of her co-workers’ lies and, during her contact with victims, repeatedly helped to cover up those lies.
As a result of this scheme, more than 1,000 homeowners suffered losses totaling more than $3 million.
On January 21, 2016, a grand jury in New Haven returned an indictment charging Maleki, LEFAOSEU and five other California residents with conspiracy and fraud offenses related to this scheme. The defendants were arrested on January 26.
On July 11, 2016, LEFAOSEU pleaded guilty to one count of misprision of a felony.
On March 22, 2016, Maleki pleaded guilty to one count of conspiracy to commit mail and wire fraud and, on July 18, 2016, he was sentenced to 112 months of imprisonment. He also forfeited approximately $350,000 that investigators seized from various bank accounts, approximately $362,000 sized from a Bitcoin account, a $100,000 cashier’s check, and a 2013 Ferrari 458 Italia.
The other five defendants, all of whom were members of Maleki’s sales team, pleaded guilty and were sentenced to prison terms ranging from 18 months to 58 months.
All seven defendants have been ordered to pay restitution in the amount of $2,390,496.59.
This matter was investigated by the U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Postal Inspection Service, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), U.S. Department of Housing and Urban Development – Office of Inspector General, Federal Housing Finance Agency – Office of Inspector General, and Federal Bureau of Investigation, with assistance from the Oklahoma Attorney General’s Office.
The case was prosecuted by Assistant U.S. Attorney Avi M. Perry.
California Resident Convicted of Conspiracy, Theft of Public Money and Aggravated Identity TheftRead the Press Release
A federal jury sitting in Oakland, California convicted a resident of Richmond, California yesterday for his role in a conspiracy to steal identities and cash fraudulently obtained and stolen U.S. Treasury checks, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division; U.S. Attorney Brian J. Stretch of the Northern District of California; and Special Agent in Charge Michael T. Batdorf of Internal Revenue Service-Criminal Investigation (IRS-CI).
Hugh Robinson was convicted on all charges of conspiracy to commit theft of public money, theft of public money, and aggravated identity theft following a five-day trial before U.S. District Court Judge Jeffery S. White in the Northern District of California. In November 2015, Robinson was charged, along with 10 co-defendants. According to the indictment and evidence presented at trial, from at least August 2013 through April 2015, Robinson conspired with his co-defendants to obtain the names of deceased individuals by searching California death records, and electronically file false income tax returns in the names of those deceased individuals claiming refunds. Robinson and his co-defendants listed addresses on these tax returns to which they had access to enable them to retrieve the refund checks.
According to the indictment and the evidence presented at trial, Janel McDonald, a charged co-conspirator, provided false and fraudulent California identification documents to other co-conspirators who used the false identifications to negotiate the refund checks. Robinson and other co-defendants cashed checks at various Walmart stores, including a store in Richmond, California where Robinson worked with co-conspirators to negotiate the fraudulently obtained checks. According to the criminal complaint, a search of Robinson’s residence yielded U.S. Treasury checks totaling more than $237,000.
Sentencing is scheduled for Feb. 7, 2017. Robinson faces a statutory maximum sentence of five years in prison for conspiracy to commit theft of public money, 10 years in prison for each count of theft of public money, and a mandatory sentence of two years in prison for each count of aggravated identity theft. Robinson also faces a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo, U.S. Attorney Stretch, and Special Agent in Charge Batdorf commended agents of IRS-CI, who conducted the investigation, and Assistant U.S. Attorneys Thomas Newman and Jose A. Olivera, and Trial Attorney Gregory Bernstein of the Justice Department’s Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Buffalo Man Arrested and Charged with Possession with Intent to Distribute Synthetic Marijuana Near an Elementary SchoolRead 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 Salleh Dubaishi, 40, of Buffalo, NY, was arrested and charged by criminal complaint with possession with intent to distribute a controlled substance and possession with intent to distribute a controlled substance within 1,000 feet of a public or private elementary or secondary school. The charges carry a minimum penalty of one year in prison, a maximum of 40 years and a $2,000,000 fine.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that on November 17, 2015, the New York State Department of Taxation and Finance conducted a regulatory inspection of Pyramid Express HSD, a convenience store located near Public School 45 in Buffalo. Investigators recovered over 500 packages of synthetic marijuana packages, which were labeled with names such as, “Strawberry Scooby Snax,” “Hypnotic,” and “Insane.”
The defendant made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and was released on conditions.
The criminal complaint is the result of an investigation by Immigration and Csutoms Enforcement, Homeland Security Investigations, under the direction of James C. Spero, and the NYS Department of Taxation and Finance, under the direction of Commissioner Thomas Mattox.
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.
Bronx Attorney Pleads Guilty in Manhattan Federal Court to Preparing Fraudulent Tax Returns for ClientsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Caroline D. Ciraolo, the Principal Deputy Assistant Attorney General for the Tax Division of the Department of Justice, announced that WILLIAM DOONAN, an attorney who operated a tax preparation business in the Bronx, New York, pled guilty today in Manhattan federal court to charges related to his participation in filing fraudulent tax returns, falsely claiming more than $6 million in deductions. DOONAN pled guilty today before U.S. Magistrate Judge Andrew J. Peck.
Manhattan U.S. Attorney Preet Bharara said: “William Doonan used his law degree and tax preparation business to fleece the IRS out of millions of dollars in fraudulent tax deductions. As he admitted today, Doonan claimed numerous false deductions for thousands of clients, defrauding the IRS and unlawfully depriving the public of tax revenue.”
Principal Deputy Assistant Attorney General Caroline D. Ciraolo said: “William Doonan used his law practice to prepare thousands of false tax returns each year with phony deductions, costing the U.S. treasury more than $1.5 million. His conviction sends a clear message – we will fully prosecute crooked tax preparers – whether they be lawyers and tax professionals or temporary storefront operators.”
According to the allegations contained in the Information filed in Manhattan federal court and statements made during the plea proceeding:
Since at least 2009, DOONAN has been in the business of preparing federal tax returns for clients in exchange for fees. DOONAN, a New York licensed attorney since 1982, carried out his tax preparation business in the Bronx using the firm name “William Doonan, Esq.” DOONAN prepared and filed more than 3,000 federal tax returns with the Internal Revenue Service (“IRS”) each year and regularly prepared and filed client returns that were false and fraudulent. For example, on some of his clients’ returns, DOONAN added false medical and dental expenses, state and local taxes, home mortgage interest, gifts to charity, job expenses, and certain miscellaneous deductions. DOONAN also attached Schedules C to his clients’ returns that reported “consulting” businesses that the relevant clients did not own, operate, or materially participate in, and business losses that the relevant clients did not incur. Between tax years 2009 through tax year 2012, DOONAN included in excess of $6 million in these fabricated and inflated items on his clients’ federal tax returns.
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DOONAN, 69, of the Bronx, New York, pled guilty to one count of aiding and assisting in the preparation of a false tax return, and one count of obstructing and impeding the due administration of internal revenue laws. Each charge carries a maximum sentence of three years in prison. As part of his plea, DOONAN agreed that he caused a tax loss of between $1.5 and $3.5 million, and has agreed to pay $65,820 in restitution to the IRS.
DOONAN is scheduled to be sentenced by U.S. District Judge Vernon S. Broderick on February 10, 2017, at 11:00 a.m. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara and Ms. Ciraolo praised the outstanding efforts of the IRS-CI in the investigation. This case is being prosecuted by the U.S. Attorney’s Office’s Complex Frauds and Cybercrime Unit. Special Assistant United States Attorney Jorge Almonte (of the Tax Division) is in charge of the prosecution.
Baden Tax Collector Sentenced to 3 Years in Prison for Stealing from Borough, Ambridge School DistrictRead the Press Release
PITTSBURGH - A resident of Baden, Pennsylvania, has been sentenced in federal court to 37 months imprisonment followed by 3 years of supervised release on his conviction of mail fraud and filing false income tax returns, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Keith Kristek, age 57, of Baden, Pennsylvania.
According to information presented to the court, from approximately January, 2007 through February, 2015, Kristek, who was the de facto Tax Collector for Baden Borough, devised and executed a scheme to steal in excess of $1,060,000 in tax payments from Baden Borough and the Ambridge Area School District. Additionally, Kristek failed to report his receipt of the stolen funds and filed false income tax returns with the IRS for the tax years of 2011 through 2014.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Internal Revenue Service, and the Beaver County District Attorney’s Office for the investigation leading to the successful prosecution of Kristek.
Attorney General Loretta E. Lynch and U.S. Attorney Preet Bharara Announce Indictment of Seven Individuals and Six Arrests in United States and Mexico on Sex Trafficking and Related ChargesRead the Press Release
A 21-count indictment was unsealed in the U.S. District Court for the Southern District of New York charging seven defendants with sex trafficking, conspiracy and related offenses. The indictment, which was returned under seal on Sept. 15, 2016, alleges that the defendants are members of an international sex trafficking organization which operated in Mexico and the United States between 2000 and 2016. Fourteen victims of the charged sex trafficking organization are identified in the indictment.
Six of the defendants charged were taken into custody on Oct. 26 and 27, 2016. As part of a coordinated bilateral law enforcement action, Raul Romero-Granados, aka Chicarcas and El Negro, 32, and Isaac Lomeli-Rivera, aka Giro, 34, were arrested in the United States. Efrain Granados-Corona, aka Chavito and Cepillo, 41; Alan Romero-Granados, aka El Flaco, 24; Pedro Rojas-Romero, 37, and Emilio Rojas-Romero, 34, were arrested in Mexico. Juan Romero-Granados, aka Chegoya and El Guero, remains a fugitive. The defendants arrested in Mexico were taken into custody by Mexican authorities pursuant to provisional arrest warrants submitted by the United States in August 2016. The defendants arrested in the United States were presented on Oct. 27, 2016, before U.S. Magistrate Judge Kevin Nathaniel Fox of the Southern District of New York, and appeared today before U.S. District Judge Andrew L. Carter Jr. of the Southern District of New York.
The charges were announced today by Attorney General Loretta E. Lynch, U.S. Attorney Preet Bharara of the Southern District of New York, Director Sarah R. Saldaña of U.S. Immigration and Customs Enforcement (ICE), Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and Special Agent in Charge Angel M. Melendez of ICE’s Homeland Security Investigations (HSI) in New York.
“Human trafficking is a corrosive and degrading practice that goes against both the rule of law and the most basic standards of human dignity,” said Attorney General Lynch. “This indictment is yet another sign of the Justice Department’s steadfast determination to hold traffickers accountable for their heinous crimes, and of our unshakeable commitment to helping survivors reclaim their futures and restart their lives. I want to commend our partners in Mexican law enforcement for their commitment to combating human trafficking. We thank them for their cooperation in this important action, and for their ongoing collaboration in our shared efforts to end human trafficking in our nations.”
“The indictment outlines alleged conduct of these defendants that is brutal and predatory,” said U.S. Attorney Bharara. “The defendants allegedly raped, beat, tortured, and enslaved their victims, often minors who were coercively separated from their families. The combined efforts of American and Mexican law enforcement that made these charges possible reflect our joint commitment to protect victims of these most predatory crimes that treat human beings as chattel.”
“The sexual exploitation of human beings is one of the vilest crimes committed against humanity,” said Director Saldaña. “This operation reflects our commitment to bring to justice traffickers who have no regard for human life. Each arrest is a testament to the outstanding bilateral relationship between Mexico and the United States. We are sending a clear message to human traffickers that law enforcement agencies on both sides of the border have them in their sights.”
“Through vigorous enforcement efforts and collaborative international partnerships, the Justice Department works tirelessly to bring traffickers to justice and protect victims held in modern-day slavery,” said Principal Deputy Assistant Attorney General Gupta. “Human traffickers degrade the humanity of the vulnerable victims they target. I commend our Mexican counterparts for their dedication to fighting the heinous crime of human trafficking, their sustained collaboration in advancing bilateral enforcement efforts and their critical role in this case.”
“Human trafficking is nothing less than a modern form of slavery and no one should be forced to live in a world of fear and involuntary servitude,” said Special Agent in Charge Melendez. “HSI will remain steadfast in its commitment to working with its law enforcement partners to dismantle the international criminal organizations involved in human trafficking.”
As alleged in the superseding indictment unsealed on October 27, 2016 in federal court in Manhattan:
Efrain Granados-Corona, Raul Romero-Granados, Isaac Lomeli-Rivera, Juan Romero-Granados, Alan Romero-Granados, Pedro Rojas-Romero and Emilio Rojas-Romero are members of an international sex trafficking organization known as the STO. Many of the members of the STO are relatives. Efrain Granados-Corona is the uncle of Raul Romero-Granados, Isaac Lomeli-Rivera (through his relationship with Granados-Corona’s niece), Juan Romero-Granados and Alan Romero-Granados. Pedro and Emilio Rojas-Romero are brothers, as are Juan and Alan Romero-Granados. Isaac Lomeli-Rivera is Raul Romero-Granados’s brother-in-law.
Between at least 2000 and the present, members of the STO used romantic promises, physical and sexual violence, threats, lies and coercion to force and coerce adult and minor women to work in prostitution in both Mexico and the United States.
The trafficking organization used a similar approach in many cases. Often, a member of the STO would become romantically involved with a victim – frequently a minor – in Mexico. The trafficker would then uses multiple means to isolate the victim from her family. In some cases, the trafficker would use romantic promises to induce the victim to leave her family and live with him. In other cases, the trafficker would rape the victim, making it difficult for her to return to her family due to the associated stigma of the rape. Once a victim was separated from her family, the trafficker would frequently monitor her communications, keep her locked in an apartment, leave her without food and physically or sexually abuse the victim. The traffickers often told victims that the traffickers owed a significant debt and that the victim needs to work in prostitution to assist in repaying the debt. The traffickers typically begin forcing the victims to work in prostitution in Mexico, frequently in a neighborhood of Mexico City known as “La Merced.” Victims would often be required to see at least 20 to 40 customers per day. Traffickers would monitor the number of clients a victim sees by surveilling her, communicating with brothel workers and by counting the number of condoms provided to a victim. Traffickers typically would require the victims to turn over all of the prostitution proceeds.
After a victim worked in prostitution in Mexico for some time, the traffickers typically would arrange for the victim to be smuggled into the United States. Members of the STO often assisted one another in making smuggling arrangements. In many cases, multiple traffickers and multiple victims would be smuggled into the United States together. In other cases, one trafficker may remain in Mexico while arranging for a victim to be smuggled together with another trafficker and other victims.
Once in the United States, the members of the STO generally maintained their victims at one of several shared apartments in New York City. Victims living in the same apartment would frequently be forbidden to communicate with one another. Once in the United States, traffickers would continue to use physical and sexual violence, threats of the same, lies and coercion to force the victims to work in prostitution.
In most cases, the trafficker or another member of the STO would provide a victim with contact information with which to find work. The victims typically work weeklong shifts either in a brothel or in a “delivery service.” In a delivery service, the victim would be delivered to a customer’s home by a “driver.” These brothels and delivery services are located both within New York, and in surrounding states, including, but not limited to Connecticut, Maryland, Virginia, New Jersey and Delaware.
Generally, each customer paid $30 to $35 for 15 minutes of sex. Of that, half of the money typically went to the driver (in the case of a delivery service) or to the brothel. The other $15 went to the victim, who was then typically forced to give all of the proceeds to the trafficker or to another member of the STO.
The traffickers then frequently sent, or had their victims send, some of the prostitution proceeds to traffickers’ family members and associates in Mexico by wire transfer. Such transfers provide financial assistance to the traffickers’ families and financial support to the traffickers themselves if they return to Mexico.
Since 2009, the Department of Justice, through the Civil Rights Division’s Human Trafficking Prosecution Unit and the Department of Homeland Security through HSI have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative aimed at strengthening high-impact prosecutions under both U.S. and Mexican law. The initiative is aimed at dismantling human trafficking networks operating across the U.S.-Mexico border, bringing human traffickers to justice, reuniting victims with their children and restoring the rights and dignity of human trafficking victims held under the trafficking networks’ control. These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 50 defendants in multiple cases in New York, Georgia, Florida and Texas since 2009, and numerous Mexican federal and state prosecutions of associated sex traffickers.
On June 23, 2016, Attorney General Lynch announced the extradition to the United States of five defendants apprehended in Mexico through a prior bilateral human trafficking enforcement action that resulted in the arrests of eight defendants charged in a 27-count indictment in the Eastern District of New York with operating an international sex trafficking enterprise. In announcing the charges unsealed on October 27, 2016, the Attorney General commended U.S. and Mexican law enforcement partners for their shared commitment to sustaining the momentum of these coordinated bilateral anti-trafficking efforts.
The charges in the indictment are merely allegations and the defendants are presumed innocent unless and until proven guilty.
All seven defendants were charged with conspiracy to commit sex trafficking, which has a maximum sentence of life in prison. Raul Romero-Granados and Efrain Granados-Corona were each charged with two counts of sex trafficking of a minor by force, fraud or coercion, which also carries a maximum sentence of life in prison. Emilio Rojas-Romero, Pedro Rojas-Romero and Isaac Lomeli-Rivera were charged with two counts of sex trafficking by force, fraud or coercion, and Efrain Granados-Corona, Raul Romero-Granados, Juan and Alan Romero-Granados were charged with one count of sex trafficking by force, fraud or coercion, which also carries a maximum sentence of life in prison. Raul Romero-Granados was charged with two counts of transportation of a minor for purposes of prostitution and Efrain Granados-Corona was charged with one count of transportation of a minor for purposes of prostitution, which also carries a maximum sentence of life in prison. Isaac Lomeli-Rivera was charged with two counts of transportation for the purposes of prostitution and Efrain Granados-Corona, Juan Romero-Granados, Alan Romero-Granados, Pedro Rojas-Romero and Emilio Rojas-Romero were charged with one count of transportation for purposes of prostitution. That charge carries a maximum sentence of 10 years in prison.
In announcing the indictment, Attorney General Lynch, U.S. Attorney Bharara, Director Saldaña and Principal Deputy Assistant Attorney General Gupta commended the HSI’s New York Office, the HSI Mexico Attaché Office, the State Department and the New York City Police Department for their assistance, and praised the government of Mexico for its role in this bilateral enforcement action. The Justice Department also acknowledged the non-governmental victim service providers and advocates for their dedicated efforts to restore and improve the lives of survivors of trafficking and their families in connection with this case and others.
The case is being prosecuted by Assistant U.S. Attorneys Kristy J. Greenberg, Jane Kim and Rebecca G. Mermelstein of the Southern District of New York with the support of the Civil Rights Division’s Human Trafficking Prosecution Unit and the Criminal Division’s Office of International Affairs.
Attorney General Loretta E. Lynch and U.S. Attorney Preet Bharara Announce the Indictment of Seven Individuals and Six Arrests in the United States and Mexico on International Sex Trafficking ChargesRead the Press Release
Attorney General Loretta E. Lynch, Preet Bharara, the United States Attorney for the Southern District of New York, Sarah R. Saldaña, Director of U.S. Immigration and Customs Enforcement (“ICE”), Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and Angel M. Melendez, Special Agent in Charge of the New York Field Office of ICE’s Homeland Security Investigations (“HSI”), announced the unsealing of a 21-count superseding indictment (the “Indictment”) in the U.S. District Court for the Southern District of New York charging seven defendants with sex trafficking offenses. The Indictment, which was returned under seal on September 15, 2016, alleges that the defendants are members of an international sex trafficking organization that exploited and trafficked adult and minor women in Mexico and in the United States from at least 2000 to 2016. Members of the defendants’ sex trafficking organization, which operated largely as a family business, used false promises, physical and sexual violence, and threats to force and coerce adult and minor women to work in prostitution for the organization’s profit in both Mexico and the United States.
Six of the defendants charged were taken into custody on October 26 and 27, 2016. As part of a coordinated bilateral law enforcement action, two defendants, RAUL ROMERO-GRANADOS, a/k/a “Chicarcas,” a/k/a “El Negro,” and ISAAC LOMELI-RIVERA, a/k/a “Giro,” were arrested in the United States, and four defendants, EFRAIN GRANADOS-CORONA, a/k/a “Chavito,” a/k/a “Cepillo,” ALAN ROMERO-GRANADOS, a/k/a “El Flaco,” PEDRO ROJAS-ROMERO, and EMILIO ROJAS-ROMERO, were arrested in Mexico. The defendants arrested in Mexico were taken into custody by Mexican authorities pursuant to Provisional Arrest Warrants submitted by the United States in August 2016. The defendants arrested in the United States were presented on October 27, 2016, in Manhattan federal court before United States Magistrate Judge Kevin Nathaniel Fox. One defendant, JUAN ROMERO-GRANADOS, a/k/a “Chegoya,” a/k/a “El Guero,” remains a fugitive. The case has been assigned to United States District Judge Andrew L. Carter, Jr.
Attorney General Loretta E. Lynch said: “Human trafficking is a corrosive and degrading practice that goes against both the rule of law and the most basic standards of human dignity. This Indictment is yet another sign of the Justice Department’s steadfast determination to hold traffickers accountable for their heinous crimes, and of our unshakeable commitment to helping survivors reclaim their futures and restart their lives. I want to commend our partners in Mexican law enforcement for their commitment to combating human trafficking. We thank them for their cooperation in this important action, and for their ongoing collaboration in our shared efforts to end human trafficking in our nations.”
U.S. Attorney Preet Bharara said: “The Indictment outlines alleged conduct of these defendants that is brutal and predatory. The defendants allegedly raped, beat, tortured, and enslaved their victims, often minors who were coercively separated from their families. The combined efforts of American and Mexican law enforcement that made these charges possible reflect our joint commitment to protect victims of these most predatory crimes that treat human beings as chattel.”
ICE Director Sarah R. Saldaña said: “The sexual exploitation of human beings is one of the vilest crimes committed against humanity. This operation reflects our commitment to bring to justice traffickers who have no regard for human life. Each arrest is a testament to the outstanding bilateral relationship between Mexico and the United States. We are sending a clear message to human traffickers that law enforcement agencies on both sides of the border have them in their sights.”
Principal Deputy Assistant Attorney General Vanita Gupta said: “Through vigorous enforcement efforts and collaborative international partnerships, the Justice Department works tirelessly to bring traffickers to justice and protect victims held in modern-day slavery. Human traffickers degrade the humanity of the vulnerable victims they target. I commend our Mexican counterparts for their dedication to fighting the heinous crime of human trafficking and their critical assistance in this case.”
HSI Special Agent in Charge Angel M. Melendez said: “Human trafficking is nothing less than a modern form of slavery and no one should be forced to live in a world of fear and involuntary servitude. HSI will remain steadfast in its commitment to working with its law enforcement partners to dismantle the international criminal organizations involved in human trafficking.”
As alleged in the Indictment unsealed on October 27, 2016, in Manhattan federal court:[1]
EFRAIN GRANADOS-CORONA, a/k/a “Chavito,” a/k/a “Cepillo,” RAUL ROMERO-GRANADOS, a/k/a “Chicarcas,” a/k/a “El Negro,” ISAAC LOMELI-RIVERA, a/k/a “Giro,” JUAN ROMERO-GRANADOS, a/k/a “Chegoya,” a/k/a “El Guero,” ALAN ROMERO-GRANADOS, a/k/a “El Flaco,” PEDRO ROJAS-ROMERO, and EMILIO ROJAS-ROMERO, the defendants, are members of an international sex trafficking organization (the “STO”). Many of the members of the STO are related by blood, marriage and community. For example: EFRAIN GRANADOS-CORONA is the uncle of RAUL ROMERO-GRANADOS, ISAAC LOMELI-RIVERA (through LOMELI-RIVERA’s relationship with EFRAIN GRANADOS-CORONA’s niece), JUAN ROMERO-GRANADOS, and ALAN ROMERO-GRANADOS; PEDRO ROJAS-ROMERO and EMILIO ROJAS-ROMERO are brothers; JUAN ROMERO-GRANADOS and ALAN ROMERO-GRANADOS are also brothers; and ISAAC LOMELI-RIVERA is RAUL ROMERO-GRANADOS’s brother-in-law.
Between at least in or about 2000 and the present, members of the STO (the “Traffickers”) have used false romantic promises, physical and sexual violence, threats of the same, lies, and coercion to force and coerce adult and minor women (the “Victims”) to work in prostitution in both Mexico and the United States.
In most cases, a Trafficker entices a Victim – frequently a minor – in Mexico. The Trafficker then uses multiple means to isolate the Victim from her family. In some cases, the Trafficker uses romantic promises to induce the Victim to leave her family and live with him. In other cases, the Trafficker rapes the Victim, making it difficult for her to return to her family due to the associated stigma of the rape. Once a Victim is separated from her family, the Trafficker frequently monitors her communications, keeps her locked in an apartment, leaves her without food, and engages in physical or sexual violence against the Victim. Traffickers often tell Victims that the Traffickers owe a significant debt and that the Victim must work in prostitution to assist in repaying the debt. Traffickers typically begin forcing the Victims to work in prostitution in Mexico, frequently in a neighborhood of Mexico City known as “La Merced.” Victims are often required to see at least 20 to 40 customers per day. Traffickers monitor the number of clients a Victim sees by surveilling the Victim, communicating with brothel workers, and by counting the number of condoms provided to a Victim. Traffickers typically require the Victims to turn over all of the prostitution proceeds to the Traffickers.
After a Victim has worked in prostitution in Mexico for some time, Traffickers typically arrange for the Victim to be smuggled into the United States. Members of the STO assist one another in making smuggling arrangements. In many cases, multiple Traffickers and multiple Victims are smuggled into the United States together. In other cases, one Trafficker may remain in Mexico while arranging for a Victim to be smuggled together with another Trafficker and other Victims.
Once in the United States, the members of the STO generally maintain their Victims at one of several shared apartments in New York City. Victims living in the same apartment are frequently forbidden to communicate with one another. Once in the United States, Traffickers continue to use physical and sexual violence, threats of the same, lies, and coercion to force the Victims to work in prostitution.
In most cases, the Trafficker or another member of the STO provides a Victim with contact information with which to find work. The Victims typically work weeklong shifts either in a brothel, or in a “delivery service.” In a delivery service, the Victim is delivered to a customer’s home by a “driver.” These brothels and delivery services are located both within New York, and in surrounding states, including, but not limited to Connecticut, Maryland, Virginia, New Jersey, and Delaware.
Generally, each customer pays $30-35 for 15 minutes of sex. Of that, half of the money typically goes to the driver (in the case of a delivery service) or to the brothel. The other $15 goes to the Victim, who is then typically forced to give all of the proceeds to the Trafficker. When a Trafficker is unavailable, a Victim may also give the proceeds to another member of the STO.
The Traffickers then frequently send, or have their Victims send, some of the prostitution proceeds to Traffickers’ family members and associates in Mexico by wire transfer. Such transfers provide financial assistance to the Traffickers’ families and provide financial support to the Traffickers themselves if they return to Mexico.
* * *
Since 2009, the Department of Justice and ICE’s Homeland Security Investigations (HSI) have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative aimed at strengthening high-impact prosecutions under both U.S. and Mexican law. The initiative is aimed at dismantling human trafficking networks operating across the United States-Mexico border, bringing human traffickers to justice, reuniting victims with their children, and restoring the rights and dignity of human trafficking victims held under the trafficking networks’ control. These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 50 defendants in multiple cases in New York, Georgia, Florida, and Texas since 2009, and numerous Mexican federal and state prosecutions of associated sex traffickers. In announcing the unsealed charges, Attorney General Lynch commended U.S. and Mexican law enforcement partners for their shared and continued commitment to coordinated bilateral anti-trafficking efforts.
Attorney General Lynch and U.S. Attorney Bharara praised the outstanding investigative work of HSI, the work of the Mexican government and Mexican law enforcement in executing the arrests and preparing for the extradition of the defendants to the United States, and the assistance provided by the New York City Police Department, the State Department, the Civil Rights Division’s Human Trafficking Prosecution Unit, and the Criminal Division’s Office of International Affairs. The Justice Department also acknowledged the non-governmental victim service providers and advocates for their dedicated efforts to restore and improve the lives of survivors of trafficking and their families in connection with this case and others.
* * *
Charts containing the names, ages, residences, charges, and maximum penalties for the defendants are set forth below. 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.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
The prosecution is being handled by the Violent and Organized Crime Unit of the U.S. Attorney’s Office for the Southern District of New York. Assistant U.S. Attorneys Kristy J. Greenberg, Jane Kim, and Rebecca G. Mermelstein are in charge of the prosecution.
United States v. Efrain Granados-Corona, a/k/a “Chavito,” a/k/a “Cepillo,” et al.,
S3 16 Cr. 324 (ALC)
COUNT
CHARGE
DEFENDANT(S)
MAXIMUM PENALTIES
1
Conspiracy to Commit Sex Trafficking
18 U.S.C. § 1594
EFRAIN GRANADOS-CORONA,
a/k/a “Chavito,”
a/k/a “Cepillo,”
RAUL ROMERO-GRANADOS,
a/k/a “Chicarcas,”
a/k/a “El Negro,”
ISAAC LOMELI-RIVERA,
a/k/a “Giro,”
JUAN ROMERO-GRANADOS,
a/k/a “Chegoya,”
a/k/a “El Guero,” ALAN ROMERO-GRANADOS,
a/k/a “El Flaco,”
PEDRO ROJAS-ROMERO, EMILIO ROJAS-ROMERO
Life Imprisonment
2
Sex Trafficking of a Minor by Force, Fraud, or Coercion
18 U.S.C. §§ 1591(a), (b)(1), (b)(2), and 2
RAUL ROMERO-GRANADOS,
a/k/a “Chicarcas,”
a/k/a “El Negro”
Life Imprisonment
3
Sex Trafficking of a Minor by Force, Fraud, or Coercion
18 U.S.C. §§ 1591(a), (b)(1), (b)(2), and 2
EFRAIN GRANADOS-CORONA, a/k/a “Chavito,”
a/k/a “Cepillo,”,
Life Imprisonment
4
Sex Trafficking of a Minor by Force, Fraud, or Coercion
18 U.S.C. §§ 1591(a), (b)(1), (b)(2), and 2
EFRAIN GRANADOS-CORONA,
a/k/a “Chavito,”
a/k/a “Cepillo,”
RAUL ROMERO-GRANADOS,
a/k/a “Chicarcas,”
a/k/a “El Negro”
Life Imprisonment
5
Sex Trafficking by Force, Fraud, and Coercion
18 U.S.C. §§ 1591(a), (b)(1), and 2
EFRAIN GRANADOS-CORONA,
a/k/a “Chavito,”
a/k/a “Cepillo,”
RAUL ROMERO-GRANADOS,
a/k/a “Chicarcas,”
a/k/a “El Negro,”
PEDRO ROJAS-ROMERO
Life Imprisonment
6
Sex Trafficking by Force, Fraud, and Coercion
18 U.S.C. §§ 1591(a), (b)(1), and 2
ISAAC LOMELI-RIVERA,
a/k/a “Giro”
Life Imprisonment
7
Sex Trafficking by Force, Fraud, and Coercion
18 U.S.C. §§ 1591(a), (b)(1), and 2
ISAAC LOMELI-RIVERA,
a/k/a “Giro”
Life Imprisonment
8
Sex Trafficking by Force, Fraud, and Coercion
18 U.S.C. §§ 1591(a), (b)(1), and 2
JUAN ROMERO-GRANADOS,
a/k/a “Chegoya,”
a/k/a “El Guero”
Life Imprisonment
9
Sex Trafficking by Force, Fraud, and Coercion
18 U.S.C. §§ 1591(a), (b)(1), and 2
ALAN ROMERO-GRANADOS,
a/k/a “El Flaco”
Life Imprisonment
10
Sex Trafficking by Force, Fraud, and Coercion
18 U.S.C. §§ 1591(a), (b)(1), and 2
EMILIO ROJAS-ROMERO
Life Imprisonment
11
Sex Trafficking by Force, Fraud, and Coercion
18 U.S.C. §§ 1591(a), (b)(1), and 2
PEDRO ROJAS-ROMERO,
EMILIO ROJAS-ROMERO
Life Imprisonment
12
Transportation of a Minor for Purposes of Prostitution
18 U.S.C. §§ 2423(a) and 2
EFRAIN GRANADOS-CORONA,
a/k/a “Chavito,”
a/k/a “Cepillo”
Life Imprisonment
13
Transportation of a Minor for Purposes of Prostitution
18 U.S.C. §§ 2423(a) and 2
RAUL ROMERO-GRANADOS,
a/k/a “Chicarcas,”
a/k/a “El Negro”
Life Imprisonment
14
Transportation of a Minor for Purposes of Prostitution
18 U.S.C. §§ 2423(a) and 2
RAUL ROMERO-GRANADOS,
a/k/a “Chicarcas,”
a/k/a “El Negro”
Life Imprisonment
15
Transportation for Purposes of Prostitution
18 U.S.C. §§ 2421 and 2
EFRAIN GRANADOS-CORONA,
a/k/a “Chavito,”
a/k/a “Cepillo”
Ten years’ imprisonment
16
Transportation for Purposes of Prostitution
18 U.S.C. §§ 2421 and 2
ISAAC LOMELI-RIVERA,
a/k/a “Giro”
Ten years’ imprisonment
17
Transportation for Purposes of Prostitution
18 U.S.C. §§ 2421 and 2
ISAAC LOMELI-RIVERA,
a/k/a “Giro”
Ten years’ imprisonment
18
Transportation for Purposes of Prostitution
18 U.S.C. §§ 2421 and 2
JUAN ROMERO-GRANADOS,
a/k/a “Chegoya,”
a/k/a “El Guero”
Ten years’ imprisonment
19
Transportation for Purposes of Prostitution
18 U.S.C. §§ 2421 and 2
ALAN ROMERO-GRANADOS,
a/k/a “El Flaco”
Ten years’ imprisonment
20
Transportation for Purposes of Prostitution
18 U.S.C. §§ 2421 and 2
PEDRO ROJAS-ROMERO
Ten years’ imprisonment
21
Transportation for Purposes of Prostitution
18 U.S.C. §§ 2421 and 2
EMILIO ROJAS-ROMERO
Ten years’ imprisonment
DEFENDANT
AGE
RESIDENCE
EFRAIN GRANADOS-CORONA,
a/k/a “Chavito,”
a/k/a “Cepillo”
41
Mexico
RAUL ROMERO-GRANADOS,
a/k/a “Chicarcas,”
a/k/a “El Negro”
32
New York, United States
ISAAC LOMELI-RIVERA,
a/k/a “Giro”
34
New York, United States
JUAN ROMERO-GRANADOS,
a/k/a “Chegoya,”
a/k/a “El Guero”
30
Mexico
ALAN ROMERO-GRANADOS,
a/k/a “El Flaco”
24
Mexico
PEDRO ROJAS-ROMERO
37
Mexico
EMILIO ROJAS-ROMERO
34
Mexico
[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.
Aggravated Felon Pleads Guilty to Reentering the United StatesRead 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 Luis Aguilar Torres, 35, of the United Kingdom and Ecuador, pleaded guilty to reentering the United States after a conviction for an aggravated felony before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that on September 19, 2016, the defendant attempted to cross into the United States from Canada at the Rainbow Bridge. Standard database checks revealed that Torres was an aggravated felon. In June 2000, the defendant was arrested in Queens County, NY for murder, murder-2nd degree, Robbery 1st, and Criminal Possession of a Weapon. In January 2002, Torres pleaded guilty to the Robbery 1st charge and was sentenced to five years in prison. After serving his sentence, the defendant was deported from the United States and banned for life.
The plea is the result of an investigation by United States Customs and Border Protection, under the direction of Director of Field Operations Rose Hilmey.
Sentencing is scheduled for February 7, 2017, at 9:30 a.m. before Judge Vilardo.
Monday 31 October 2016
Wheeling woman sentenced for heroin, fentanyl distributionRead the Press Release
WHEELING, WEST VIRGINIA – Angel Rae Klein, 28, of Wheeling, West Virginia, was sentenced to ten months in prison for distributing heroin that contained fentanyl, United States Attorney William J. Ihlenfeld, II, announced.Klein possessed and sold heroin in throughout late 2014 and early 2015 in Ohio County, West Virginia. She pled guilty in June 2016 to one count of “Conspiracy to Distribute Heroin and Fentanyl.”
U.S. Attorney William J. Ihlenfeld, II, and Assistant U.S. Attorney Randy Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
West Warwick Resident Admits to Robbing Coventry BankRead the Press Release
PROVIDENCE, R.I. – John Ryder, 28, of West Warwick, pleaded guilty in federal court in Providence today to bank robbery by force, violence and intimidation. Ryder admitted to the court that he robbed a BankRI branch office in Coventry while wielding a machete on May 2, 2016. Ryder robbed the bank of nearly $6,000 in cash.
Appearing before U.S. District Court Chief Judge William E. Smith, Ryder pleaded guilty as charged in an indictment returned by a federal grand jury on June 7, 2016. No plea agreement was filed in this matter.
Ryder’s guilty plea is announced by United States Attorney Peter F. Neronha, Coventry Police Chief John S. MacDonald, and Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI.
At the time of his guilty plea, Ryder admitted to the court that beginning on April 29, 2016, and on the days leading up to the robbery, he spent a considerable amount of time in and around a shopping plaza where the bank is located and in a wooded area directly behind the plaza. Ryder admitted to the court that on May 2, 2016, he entered the bank carrying a machete which he wielded while demanding cash from bank tellers. After robbing the bank of $5,937, he fled into the wooded area behind the shopping plaza.
According to information presented to the court, later that evening Ryder is seen on video surveillance running from the area and getting into a vehicle. On May 6, 2016, law enforcement interviewed Ryder. Four days later obtained a court authorized search warrant to search Ryder’s cell phone. On Ryder’s cell phone they discovered pictures of an individual wearing the same clothing and mask as worn by the bank robber. The photograph was taken in the wooded area behind the shopping plaza where the bank is located.
Ryder was arrested by Coventry Police Detectives and FBI agents, with the assistance of the West Warwick Police Department, on May 13, 2016.
Ryder, who has been detained in federal custody since his arrest, is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on January 20, 2017.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Virginia Woman Indicted for Wire Fraud, Aggravated Identity Theft and Filing False Tax ReturnsRead the Press Release
A federal grand jury sitting in Alexandria, Virginia returned an indictment on Oct. 26 that was unsealed today, charging a Haymarket, Virginia woman with wire fraud, aggravated identity theft, and filing false tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Dana J. Boente for the Eastern District of Virginia.
According to charging documents, Karen Holtz worked for JMS Ventures, Inc (JMS), d/b/a the Kenyan Collection, a small business that imported and distributed handmade Kenyan goods, including dog collars. Between 2008 and 2013, Holtz fraudulently diverted funds from JMS, by writing herself unauthorized checks from the JMS bank account and using PayPal to transfer customer payments directly to her personal bank account. The indictment further alleges that Holtz defrauded JMS’s customers by using their personal identifying information, including names and credit card numbers, to make fraudulent charges to their credit cards. Holtz is alleged to have obtained at least $350,000 from the fraud scheme. The indictment further alleges that Holtz filed false federal individual income tax returns for tax years 2010 through 2013, which failed to report all the income that she received in those years. In an attempt to conceal the fraud, Holtz also allegedly altered and destroyed records, including evidence of the fraud.
Holtz was arrested this morning and had her initial appearance this afternoon at the U.S. District Court in the Eastern District of Virginia in Alexandria in front of Magistrate Judge John F. Anderson.
If convicted, Holtz faces a statutory maximum sentence of 20 years in prison for each count of wire fraud, three years in prison for each count of filing false returns and a mandatory sentence of two years in prison for each count of aggravated identity theft. In addition, Holtz faces a term of supervised release, restitution and monetary penalties.
An indictment merely alleges that crimes have been committed and defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Boente thanked the Loudoun County Sheriff’s Office, U.S. Secret Service, and special agents of the Internal Revenue Service-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Katherine L. Wong of the Eastern District of Virginia and Trial Attorney Kimberly G. Ang of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
United States Prevails in Civil Action against Convicted DoctorRead the Press Release
TYLER, Texas - The United States has obtained a civil judgment for $1,223,414.50 against Tariq Mahmood, who owned and operated multiple rural hospitals across Texas, announced Acting U.S. Attorney Brit Featherston.
In July 2014, a jury found Tariq Mahmood, of Cedar Hill, Texas, guilty of conspiracy to commit health care fraud, seven counts of health care fraud, and seven counts of aggravated identity theft following a four-day trial before U.S. District Judge Michael Schneider. A federal grand jury indicted Mahmood on April 11, 2013.
Following his conviction, the United States brought a False Claims Act action against Mahmood in the Eastern District of Texas captioned United States of America v. Tariq Mahmood, Case Number 6:15-cv-948. The Government alleged in its Motion for Summary Judgment that Mahmood was estopped from denying liability under the False Claims Act as a result of his criminal health care fraud and conspiracy convictions.
In the Court’s Final Judgment dated Oct. 28, 2016, U.S. Magistrate Judge K. Nicole Mitchell ordered Mahmood to pay the United States $1,223,414.50. The amount owed to the United States includes $288,414.50 in damages plus an additional $935,000.00 in civil penalties arising from the submission of 85 false claims. The Court awarded the United States the highest applicable civil penalty for each false claim Mahmood caused to be submitted to Medicare and Medicaid.
“The Department of Justice and the United States Attorney’s Office for the Eastern District of Texas aggressively prosecute health care fraud, both criminally and civilly,” said Acting U.S. Attorney Featherston. “When our national programs are defrauded, the public wants its money back. Our office is committed to recovering those public funds.”
The criminal case was investigated by the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU), the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG), the Federal Bureau of Investigation (FBI), and the U.S. Postal Inspection Service (USPIS). The civil action was prosecuted by Assistant U.S. Attorneys Joshua Russ and James Gillingham.
United States Attorney John P. Fishwick Jr. Appoints Dedicated Officers to Answer Western District of Virginia Election ComplaintsRead the Press Release
ROANOKE, VIRGINIA United States Attorney John P. Fishwick Jr. announced today that Assistant United States Attorneys Charlene R. Day, Ronald M. Huber and Jennie L. M. Waering will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSAs Day, Huber and Wearing have been appointed to serve as the District’s Election Officers (DEOs) for the Western District of Virginia, and in that capacity are responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud,” United States Attorney Fishwick said today. “The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to make their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Fishwick stated that AUSAs/DEOs Huber, Waering and Day will be on duty in this District while the polls are open. They can be reached by the public at the following telephone numbers: Waering: 540-857-2905. Day: 540-278-1475. Huber: 434-296-3912.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 540-344-5561.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Danny Williams Announces Preparations for Justice Department’s Election Day ProgramRead the Press Release
United States Attorney Danny C. Williams, Sr. announced today that Assistant United States Attorney (AUSA) Charles M. McLoughlin will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA McLoughlin has been appointed to serve as the District Election Officer (DEO) for the Northern District of Oklahoma, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Williams said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Williams stated that AUSA/DEO McLoughlin will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: (918) 382-2700.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (918) 664-3300.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Williams said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
U.S. Attorney's Office Reminds New Jersey Voters About Election Day Hotline for Complaints of Voting Irregularities or AbusesRead the Press Release
NEWARK, N.J. – U.S. Attorney Paul J. Fishman is reminding voters that the U.S. Attorney’s Office will receive and respond to reports of election irregularities, voter intimidation or any other activities that would interfere with a citizen’s right to vote on Nov. 8, 2016. The Election Day Hotline – (888) 636-6596 – will be active Nov. 7, 2016 through Nov. 9, 2016, and will be staffed live on Election day in English and in Spanish.
Each year the U.S. Attorney’s Office and its federal law enforcement partners, led by the FBI, work cooperatively with the New Jersey Attorney General’s Office and county boards of elections to respond to voter complaints and direct them to the appropriate authority.
The Justice Department seeks to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted, without discrimination, intimidation or fraud. Established in 2010, this yearly initiative is intended to foster public confidence in the integrity of the election process by providing local points of contact within the Justice Department for the public to report possible fraud and voting rights violations while polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.
It also contains special protections for voters so they can vote free from intimidation or harassment. For example, actions designed to interrupt or intimidate voters at polling places by questioning, challenging, photographing or videotaping them, under the pretext that these are actions to uncover illegal voting, may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or be assisted by a person of their choice.
The Department of Justice Civil Rights Division staff in Washington also will be available by phone to receive complaints related to voting rights (1-800-253-3931 toll free or 202-307-2767) or by TTY (202-514-0716). In addition, individuals may also report complaints, problems, or concerns related to voting by fax to 202-307-3961, by email to [email protected], and via complaint forms that may be submitted through a link on the Justice Department’s website, at http://www.justice.gov/crt/complaint/votintake/index.php.
U.S. Attorney's Office Concludes Investigation into Fatal Shooting of Marquesha McMillanRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia announced today that it has completed its review of the actions of five Metropolitan Police Department (MPD) officers who were involved in the fatal shooting of Marquesha McMillan on Oct. 26, 2015, following an attempted armed robbery of a liquor store in Northwest Washington. After a careful review of all of the evidence, the U.S. Attorney’s Office has concluded that there is insufficient evidence to pursue federal criminal civil rights or District of Columbia charges against the officers involved in the fatal shooting of Ms. McMillan.
The comprehensive investigation included interviews of multiple law enforcement and civilian witnesses as well as the review of physical and forensic evidence; recorded radio communications; video surveillance; the autopsy report, and other evidence.
The shooting in this case took place on Oct. 26, 2015, at approximately 9:15 a.m., in the rear parking lot of a liquor store in the 7800 block of Alaska Avenue NW. Following the attempted armed robbery of the store by Ms. McMillan, 21, and Ned McCallister, both individuals fled from the establishment out of different doors upon seeing an MPD officer arrive for a routine business check. Ms. McMillan ran towards the rear parking lot, where she turned and fired a .380 semi-automatic pistol at three officers who were responding to the “robbery in progress” call. The officers returned fire as Ms. McMillan ran through the parking lot and hid behind a nearby dumpster. As reported by civilian witnesses, Ms. McMillan then reloaded her weapon while ignoring the officers’ commands to “drop the weapon” and “get on the ground.” While the three officers and Ms. McMillan exchanged additional gunfire, two other MPD officers approached Ms. McMillan’s location from an adjacent parking lot and fired their weapons at Ms. McMillan, who fell to the ground, fatally wounded. A subsequent autopsy revealed that Ms. McMillan was shot eight times, one of which was fatal.
Mobile Crime Technicians recovered Ms. McMillan’s .380 semi-automatic firearm.
McCallister, 22, of Washington, D.C., pled guilty on July 22, 2016, in the U.S. District Court for the District of Columbia, to one count of attempted interference with interstate commerce by robbery, a federal offense, and one count of unlawful possession of a firearm, a District of Columbia offense. He was sentenced on Oct. 14, 2016, to four years in prison, to be followed by three years of supervised release.
After a careful, thorough, and independent review of the evidence, federal prosecutors have found insufficient evidence to prove beyond a reasonable doubt that the officers used excessive force under the circumstances.
Use-of-force investigations generally
The U.S. Attorney’s Office reviews all police-involved fatalities to determine whether sufficient evidence exists to conclude that any officers violated either federal criminal civil rights laws or District of Columbia law. To prove such violations, prosecutors must typically be able to prove that the involved officers willfully used more force than was reasonably necessary. Proving “willfulness” is a heavy burden. Prosecutors must not only prove that the force used was excessive, but must also prove, beyond a reasonable doubt, that the officer acted with the deliberate and specific intent to do something the law forbids. A conclusion that “there is insufficient evidence” is not meant to suggest anything further about what evidence, if any, exists.
The U.S. Attorney’s Office remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are fully and completely investigated. The Metropolitan Police Department’s Internal Affairs Division investigates all police-involved fatalities in the District of Columbia.
U.S. Attorney Miles Designates Federal Prosecutor to Protect the Right to Vote and Prosecute Ballot FraudRead the Press Release
GRAND RAPIDS – Patrick Miles, U.S. Attorney for the Western District of Michigan, named a federal prosecutor with over 30 years’ experience as the District’s Election Officer. Miles says Assistant U.S. Attorney Donald Daniels will handle claims of voter discrimination, intimidation, and fraud on November 8, 2016. Mr. Daniels can be reached until the polls close on election day at: (616) 808-2014.
U.S. Attorney Miles explained: "My office and the U.S. Department of Justice will ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation or fraud in the election process."
U.S. Attorney Miles noted that his office and local FBI agents can receive, investigate and pursue complaints of voter discrimination, intimidation, and fraud. His office coordinates and works with the Department of Justice’s Civil Rights Division’s Voting Section to enforce the civil provisions of a wide range of federal statutes that protect the right to vote including: the Voting Rights Act, the National Voter Registration Act, the Uniformed and Overseas Citizens Absentee Voting Act, the Help America Vote Act and the Civil Rights Acts. Among other things, collectively, these laws:
- prohibit election practices that have either a discriminatory purpose, based on race or membership in a minority language group, or a discriminatory result, with members of racial or language minority groups having less opportunity than other citizens to participate in the political process;
- prohibit voter intimidation;
- provide that individuals who need assistance in voting because of disability or illiteracy can obtain assistance from a person of their choice;
- provide for accessible election machines for voters with disabilities;
- require provisional ballots for voters who assert they are eligible but whose names do not appear on poll books;
- provide for absentee ballots for service members, their family members and U.S. citizens living abroad;
- require states to ensure that citizens can register through drivers’ license offices, public assistance and disability services offices, other state agencies and through the mail; and
- include requirements regarding maintaining voter registration lists.
The U.S. Attorney’s office also works in conjunction with the Civil Rights Division’s Criminal Section to enforce federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.
U.S. Attorney Miles said that on Election Day, November 8, 2016, the Civil Rights Division will implement a comprehensive program to help protect the right to vote, including:
- The Civil Rights Division will conduct monitoring in the field at polling places around the country (locations for monitoring will be announced closer to Election Day).
- Civil Rights Division attorneys in both the Voting and Criminal Sections in Washington, D.C., will be ready to receive election-related complaints of potential violations relating to any of the statutes the Civil Rights Division enforces. Attorneys in the division will take appropriate action and will consult and coordinate with local U.S. Attorney’s Offices and with other entities within the Justice Department concerning these complaints before, during and after Election Day.
- Civil Rights Division staff will be available by phone to receive complaints related to voting rights (1-800-253-3931 toll free or 202-307-2767) or by TTY (202-305-0082). In addition, individuals may also report complaints, problems or concerns related to voting by fax 202-307-3961, by mail to [email protected] and by complaint forms that may be submitted through a link on the department’s website: https://www.justice.gov/crt/voting-section.
- Complaints related to violence, threats of violence or intimidation at a polling place should always be reported immediately to local authorities by calling 911. They should also be reported to the U.S. Attorney’s Office or the department after local authorities are contacted.
Criminal Division and the Department’s 94 U.S. Attorney’s Offices:
The Department’s Criminal Division oversees the enforcement of federal laws that criminalize certain forms of election fraud and vindicate the integrity of the federal election process.
The Criminal Division’s Public Integrity Section and the department’s 94 U.S. Attorney’s Offices are responsible for enforcing the federal criminal laws that prohibit various forms of election fraud, such as vote buying, multiple voting, submission of fraudulent ballots or registrations, alteration of votes and malfeasance by election officials. The Criminal Division is also responsible for enforcing federal criminal law prohibiting voter intimidation for reasons other than race, color, national origin or religion (as noted above, voter intimidation that has a basis in race, color, national origin or religion is addressed by the Civil Rights Division).
The U.S. Attorney’s Offices around the country designate Assistant U.S. Attorneys who serve as district election officers (DEOs) in the respective districts. As the DEO in the Western District of Michigan, Assistant U.S. Attorney Daniels is responsible for overseeing potential election-crime matters in their districts and coordinating with the department’s election-crime experts in Washington, D.C.
On and after Nov. 8, 2016, U.S. Attorney Miles’ Office will work with specially trained FBI personnel to ensure that complaints from the public involving possible voter fraud are handled appropriately. Specifically:
- In consultation with federal prosecutors in the Public Integrity Section in Washington, D.C., the DEOs in U.S. Attorney’s Offices, FBI officials at Headquarters in Washington, D.C., and FBI special agents serving as Election Crime Coordinators in the FBI’s 56 field offices will be on duty while polls are open to receive complaints from the public.
- Election-crime complaints should be directed to the local U.S. Attorney’s Offices or the local FBI office. As previously noted, the U.S. Attorney’s Office’s Election Officer can be reached at (616) 808-2014. A list of FBI offices and accompanying telephone numbers can be found at https://www.fbi.gov/contact-us.
- Public Integrity Section prosecutors are available to consult and coordinate with the U.S. Attorney’s Offices and the FBI regarding the handling of election-crime allegations.
- Again, complaints related to violence, threats of violence or intimidation at a polling place should be reported first to local police authorities by calling 911.
"Free and fair elections are a necessity in the United States. Protecting the right to vote and combating election fraud are thus essential to maintaining the confidence of all Americans in our democratic system of government," stated U.S. Attorney Miles. He encourages anyone who has information suggesting voting discrimination or ballot fraud to contact the appropriate authorities.
END
Two men sentenced for heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Two men were sentenced today in federal court for distributing heroin in Monongalia County, United States Attorney William J. Ihlenfeld, II, announced.
Ryan Hayworth, 22, of Mullens, West Virginia, was sentenced to twelve months and one day in prison for one count of “Aiding and Abetting Distribution of Heroin within 1,000 feet of a Protected Location.” Hayworth sold heroin in March 2015 near West Virginia University. The heroin was transported into the region from Michigan.
Romelle DeShaun Stevens, 27, of Detroit, Michigan, was sentenced to six months in prison for one count of “Distribution of Heroin.” Stevens sold heroin in Monongalia County, West Virginia in December 2015.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force investigated.
U.S. District Judge Irene M. Keeley presided.
Two Individuals Ordered to Pay over $4 Million in Restitution for Their Participation in a Conspiracy to Defraud Federal Agencies and Federal ContractorsRead the Press Release
Brian J. Garrahan, 42, and Kelly A. Spillman, 35, both of Delray Beach, Florida, were ordered to pay over $4 million for their participation in a conspiracy to defraud federal agencies and federal contractors by issuing fraudulent bonds to insure government contracts.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Paul Brezinski, Acting Special Agent in Charge, United States Environmental Protection Agency (EPA), Office of the Inspector General (OIG), Atlanta Field Office, made the announcement.
Garrahan and Spillman previously pled guilty to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 371. On September 16, 2016, U.S. District Judge Kenneth A. Marra sentenced Garrahan and Spillman, and scheduled a later hearing to determine restitution. Judge Marra sentenced Garrahan to 30 months’ imprisonment, to be followed by two years of supervised release. Garrahan was also ordered to forfeit over $1 million. Judge Marra sentenced Spillman to time served, to be followed by two years of supervised release to include twelve months of home detention. Spillman was ordered to forfeit approximately $130,000.
Today, Judge Marra issued Amended Judgments as to Garrahan and Spillman. Judge Marra ordered Garrahan and Spillman to pay $4,414,847.19 in restitution to fourteen federal agencies and two federal contracting companies. The federal agencies included, among others:
a. The United States Army;
b. The United States Department of Energy;
c. The United States Environmental Protection Agency;
d. The United States Department of Housing and Urban Development;
e. The United States Department of State;
f. The United States Department of Veterans Affairs; and
g. The United States General Services Administration.
The restitution as well as the forfeiture previously ordered is joint and several as to Garrahan, Spillman, and co-conspirator Alex Xavier (Case No. 15-80149-Cr-Marra). Xavier previously pled guilty and is scheduled to be sentenced on November 4, 2016.
According to court documents, from approximately June 2008 through June 2013, Garrahan and Spillman conspired with each other and others to obtain payments from government contractors for issuing fraudulent bonds, that is, insurance, for large government contracts. The fraudulent bonds were individual surety bonds, usually signed by Garrahan and two other co-conspirators, a relative of Garrahan, and Alex Xavier, who had prior experience with government bonds.
Individual surety bonds require collateral. The collateral used was land or cash or cash equivalent assets held in bank accounts. However, Garrahan and Spillman knew that the claims of ownership of land were false and the claims of possessing funds were false. Also, the supporting documents related to these assets were fraudulent.
Garrahan, Spillman and their co-conspirators issued a large number of bonds dealing with over 100 contractors and over ten federal agencies, and other entities. Often contracts had “modifications,” that is, contract expansions, that led to more bonds being issued.
Mr. Ferrer commended the investigative efforts of EPA-OIG and the U.S. Department of Veterans Affairs-OIG, together with the Criminal Investigation Command of the U.S. Army; U.S. Department of Defense-OIG, Defense Criminal Investigative Services; U.S. Department of Energy-OIG; U.S. General Services Administration-OIG; U.S. Department of Housing and Urban Development-OIG; and U.S. Department of State-OIG. This case is being prosecuted by Assistant U.S. Attorney Ana Maria Martinez.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Third Person Sentenced in Scheme to Smuggle Guns to Lebanon is Ordered to Serve 342 Months in Federal PrisonRead the Press Release
Ali Afif Al Herz, age 51, from Cedar Rapids, Iowa, was sentenced today and following his plea of guilty to various charges related to a scheme to illegally export hundreds of firearms to Lebanon.
Al Herz previously pleaded guilty to one count of conspiring to deal in firearms without a license and to illegally ship firearms in interstate and foreign commerce; one count of conspiracy to commit money laundering; and one count of violating the Arms Export Control Act. In addition, Al Herz previously pleaded guilty to one count of possessing firearms after having previously been convicted of a crime of domestic violence.
Al Herz was sentenced by Linda R. Reade, Chief Judge, United States District Court for the Northern District of Iowa, following sentencing proceeding held in Cedar Rapids. The court heard evidence relating to the sentencing on October 14, 2016, and reconvened today to hear additional evidence and impose sentence.
Al Herz, was sentenced to serve 342 months’ imprisonment, to be followed by a 3 year term of supervised release. Al Herz was was ordered to pay a fine of $150,000.
Adam Al Herz, the son of Ali Afif Al Herz, was sentenced on October 13, 2016, to serve 240 months’ imprisonment, to be followed by a three-year term of supervised release.
Ali Afif Al Herz’s sister in law, Sarah Majid Zeaiter, was sentenced on October 14, 2016, to serve 87 months’ imprisonment. Zeaiter was also ordered to pay $33,869 in cash related to the scheme. The money was seized from the apartment Zeaiter shared with her husband, Bassem Herz, above the Pizza Daddy restaurant in Cedar Rapids, Iowa.
Each of the three sentenced defendants has also been jointly and severally ordered to pay a money judgment in excess of $48,000, and to forfeit any interest in seized firearms, ammunition, and Bobcat skid loaders.
Evidence related to the sentencing of Bassem Afif Herz was presented on October 13 & 14, 2016, in Cedar Rapids. The sentencing hearing for Bassem Afif Herz will resume on November 7, 2016, at which time Bassem Herz will be sentenced.
The four were charged following an investigation triggered in early 2015 by a report from a firearms dealer concerning suspicious firearms transactions conducted by the group.
The initial investigation led to the March 2015 seizure of 53 guns and thousands of rounds of ammunition concealed inside Bobcat skid loaders packed inside a shipping container at the Norfolk, Virginia seaport. The container was destined for Lebanon. Subsequent investigation led to the May 2015 seizure of a second shipping container in Cedar Rapids, which was also destined for Lebanon. Ninety-nine guns and thousands more rounds of ammunition were found concealed inside Bobcat skid loaders packed inside the second container. Further investigation disclosed the group had previously sent two similar shipments to Lebanon in March and August 2014. Each of the containers had been loaded and shipped from Midamar Corporation in Cedar Rapids.
Evidence presented at the sentencing hearings showed the containers were destined for an area in southern Lebanon controlled by Hezbollah, a group designated by the United States as a terrorist organization. Among the guns shipped were more than 30 military style assault rifles. Other evidence presented in the case showed the guns could be sold in Hezbollah controlled southern Lebanon, where Ali Afif Al Herz maintains a residence, for as much as ten times their value in the United States. Photos of the residence and of some of the weapons and ammunition seized during the investigation are attached to this press release.
During sentencing, Chief Judge Reade found Al Herz was a leader and organizer of the criminal activity involving five or more participants and that “was otherwise extensive.” Judge Reade also noted there were several aggravating factors including that the offense involved numerous military style assault rifles, the defendant had sought to purchase fully automatic weapons, the number of guns involved, and the fact the guns were knowingly being shipped to an area of the world controlled by a terrorist organization.
Kevin W. Techau, United States Attorney for the Northern District of Iowa stated, “These defendants were bold and brazen gun traffickers. They knew they were violating U.S. laws enacted to prevent smuggling to foreign countries. Stopping the illegal flow of weapons, weapons parts, and ammunition is a key priority for law enforcement.”
“We are especially thankful to the citizens of Iowa who assisted law enforcement by providing tips and leads that resulted in an investigation of an international weapons smuggler by Homeland Security Investigations,” said Alex Khu, Special Agent in Charge for HSI St. Paul, which oversees Iowa. “This investigation exemplifies the importance of maintaining strong ties to the communities that law enforcement serves, and that law abiding citizens can truly make a difference by reporting suspicious activities. Had law enforcement not intervened, Mr. Al Herz would have exported a large number of weapons that could have been used in countless crimes. HSI is committed to investigating and seeking charges against those intent on violating U.S. export laws.”
“Among ATF’s top priorities is ensuring that firearms traffickers are aggressively investigated and swiftly brought to justice. This is an excellent example of such an investigation that was worked cooperatively by multiple partner agencies with outstanding results,” said Jeff Fulton, Special Agent in Charge of ATF’s Kansas City Field Division.
“The joint effort to bring this case to a successful conclusion undoubtedly saved lives due to the number and types of weapons recovered during the course of the investigation. The FBI will continue to work with our law enforcement partners to combat violent criminal activity and protect our communities,” stated Special Agent-in-Charge Randall Thysse, Omaha Division.
The cases were prosecuted by Assistant United States Attorney Richard L. Murphy and were investigated by Homeland Security Investigations, Bureau of Alcohol Tobacco and Firearms, Federal Bureau of Investigations, and U.S. Customs and Border Protection, with assistance from the Diplomatic Security Service, United States Marshals Service, Iowa State Patrol, Iowa Division of Narcotics Enforcement, Iowa Division of Criminal Investigation, Iowa Bureau of Investigation and Identity Protection, Iowa Department of Inspections and Appeals, Fayette County Sheriff’s Office, Iowa County Sheriff’s Office, Linn County Sheriff’s Office, Vinton Police Department, University of Iowa Police Department, Iowa City Police Department, Cedar Rapids Police Department, Marion Police Department, and Hiawatha Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-CR-00054-LRR.
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Texas Woman Charged in Murder-for-Hire Plot to Kill Trial WitnessesRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Priscilla Ellis (51, Killeen, TX) has been charged by criminal complaint with retaliating against a witness, victim, or an informant. If convicted, she faces a maximum penalty of 40 years in federal prison.
According to the complaint, Ellis was convicted on October 21, 2016, of conspiracy to commit mail and wire fraud and conspiracy to commit international money laundering following a three-week trial. The next day, she began soliciting a fellow inmate to help her find a hit man to murder two people in retaliation for testimony given at trial. One was a key witness for the government, and the other was the mother of another witness who had pleaded guilty and was cooperating against Ellis. During recorded conversations with the inmate and undercover agents posing as co-conspirators, Ellis told the agent posing as the hit man that the first witness’s child should be killed along with the witness, if necessary. Ellis also described the manner in which she wanted the cooperating witness’s mother to be killed. Ellis agreed to have her daughter in Texas take money obtained from another fraudulent scheme and give it to the hit man as partial payment for the two murders, which the daughter in fact did at Ellis’s direction.
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorneys Eric Gerard and Patrick Scruggs.
Sullivan County Man Sentenced in White Plains Federal Court to over 21 Years in Prison for Distribution of Heroin and Fentanyl Causing the Death of an IndividualRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that TERRENCE JOHNSON, 23, of Sullivan County, was sentenced today by U.S. District Judge Cathy Seibel to 262 months in prison for distributing heroin and fentanyl; distributing cocaine; selling heroin, fentanyl, and cocaine within 1,000 feet of elementary schools; conspiring to distribute at least 100 grams of heroin, conspiring to distribute at least 280 grams of crack cocaine, and for distributing a mixture of heroin and fentanyl that resulted in the overdose death of Malcolm Perry, 35, a resident of Liberty, New York. JOHNSON pled guilty on June 3, 2016, before U.S. Magistrate Judge Paul E. Davison.
U.S. Attorney Bharara stated: “Even after learning that his fentanyl-laced heroin had sent customers to the emergency room, Terrence Johnson continued to sell his poisonous blend, ultimately causing the tragic death of Malcolm Perry. For his callous crime, Johnson has received an appropriately severe sentence. Drug dealers who peddle deadly poison across our District should understand, if they sell opioids that kill, serious consequences await them.”
According to the allegations in the Indictment and other information in the public record:
Between May 28, 2015, and June 6, 2015, JOHNSON was selling a mixture of heroin and fentanyl in Sullivan County. Fentanyl is a synthetic opioid that is significantly stronger than both ordinary heroin and morphine. During that period, several customers who purchased that mixture from JOHNSON overdosed and required emergency medical attention. On or about June 1, 2015, Malcolm Perry overdosed and died of acute fentanyl intoxication as a result of using the mixture sold by JOHNSON. Even after learning that Perry had died, JOHNSON continued to sell the mixture.
Between 2012 and 2013, JOHNSON also conspired to distribute over 280 grams of crack cocaine in Sullivan County.
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In addition to the term of imprisonment, JOHNSON was also sentenced to 6 years of supervised release and ordered to pay a $1,000 special assessment.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation, the Village of Liberty Police Department, the New York State Police, the Sullivan County Sheriff’s Department, and the Village of Monticello Police Department. Mr. Bharara also thanked the Sullivan County District Attorney’s Office for its assistance in the case.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Anden Chow, Michael Gerber, and George Turner are in charge of the prosecution.
Scranton Business Owners Charged in Unemployment Benefits SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Criminal Information was filed in U.S. District Court in Scranton charging a Scranton man and a Dunmore man with conspiracy to commit wire fraud in connection with the fraudulent receipt of unemployment benefits.
According to United States Attorney Bruce D. Brandler, Samuel Borgia, age 52, and Steven Borgia, age 46, owned and operated Home Resource Corporation, a home improvement company in Scranton. From 2009 to 2012, the defendants allegedly filed fraudulent claims for unemployment compensation and received unemployment benefits to which they were not entitled.
The defendants also allegedly instructed a number of their employees to falsely report to the Pennsylvania Department of Labor that the employees were not employed in order for the employees to also fraudulently receive unemployment benefits. The Information charges that the defendants and their co-conspirators received more than $150,000 as a result of the scheme.
The government also filed plea agreements which are subject to the approval of the court, where the defendants indicate that they intend to plead guilty to the charge when they appear in federal court for their arraignment.
The charges stem from an investigation by the United States Department of Labor, Office of the Inspector General, and the Commonwealth of Pennsylvania’s Department of Labor. The case is being prosecuted by Assistant United States Attorney Evan Gotlob.
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 offense charged in this case is five years’ imprisonment, a term of supervised release following imprisonment, and a maximum fine of $250,000. 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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Sapulpa Woman Pleads Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that LATISHA DAWN ARNOLD, age 37, of Sapulpa, Oklahoma, pled guilty to DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years or more than Life imprisonment, up to a $10,000,000.00 fine or both.
The Second Superseding Indictment filed in July, 2016, alleged that beginning in or about the end of 2013 and continuing until on or about January 27, 2016, in the Eastern District of Oklahoma, the defendant, did willfully and knowingly combine, conspire, confederate and agree together, and with other persons known and unknown, to Possess with Intent to Distribute and to Distribute 500 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The charges arose from a joint investigation by the Oklahoma Bureau of Narcotics, the Tahlequah Police Department, the Muskogee Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs 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 in the custody of the United States Marshals Service pending transportation to the designated federal facility to serve this nonparoleable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Richmond Resident Convicted of Conspiracy to Commit Theft of Public Property and Identity TheftRead the Press Release
OAKLAND – A federal jury convicted Hugh Robinson today, of conspiracy to commit theft of public money, theft of public money, and aggravated identity theft announced United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. The verdict follows a six-day trial before the Honorable Jeffrey S. White, United States District Judge.
Evidence at trial showed that Robinson, 46, of Richmond, was involved with more than ten co-conspirators in a scheme to defraud the United States of public money. From at least August 21, 2013, through April 27, 2015, Robinson and others who were based in such places as Northern California, Los Angles, and Texas, cashed stolen and fraudulently obtained U.S. Treasury checks. The checks included stolen Social Security benefits checks and fraudulently obtained federal income tax refund checks. As part of his scheme, Robinson and his co-conspirators acquired the personal identifying information (e.g., names, dates of birth, and social security numbers) of other people, including deceased people. Robinson then used the names, dates of birth, and social security numbers of these individuals to file false federal tax returns. The tax returns reported false wages to the IRS and fraudulently requested tax refunds. The evidence at trial also established that Robinson took steps to ensure he would receive the fraudulent refunds corresponding to the false returns he filed. For example, on some occasions, Robinson directed the IRS to deposit the tax refunds into bank accounts he owned or that belonged to his co-conspirators. On other occasions, Robinson directed the IRS to mail the tax refund checks to his address or to the address of a co-conspirator on the false tax returns.
Robinson also acquired stolen U.S. Treasury checks. To cash these checks, Robinson paid to have numerous fake identification cards created that matched the names listed on the U.S. Treasury checks, but that displayed a photo of Robinson or one of his co-conspirators. Robinson and others used the fake identifications to cash the checks at Walmart stores—in some instances with the help of Walmart employees that Robinson paid to assist him.
On November 5, 2015, a federal grand jury issued a Second Superseding Indictment charging Robinson with conspiracy to commit theft of public money, in violation of 18 U.S.C. § 371; seven counts of theft of public money, in violation of 18 U.S.C. § 641; and seven counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A. Today’s verdict establishes Robinson is guilty of all the counts with which he was charged in the indictment.
Hugh Robinson is scheduled to be sentenced on February 7, 2017, before Judge White. The maximum sentence for a violation of 18 U.S.C. § 371 is 5 years in prison and a fine of $250,000. The maximum penalty for each violation of 18 U.S.C § 641 is 10 years in prison and a fine of $250,000. The mandatory minimum penalty for each count of identity fraud, in violation of 18 U.S.C § 1028A, is two years in prison, consecutive to the underlying felony and a fine of $250,000. However, any sentence would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Thomas Newman and Jose A. Olivera and Trial Attorney Gregory Bernstein of the Tax Division are prosecuting this case, with the assistance of Jonathan Deville. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Property Manager Pleads Guilty to Stealing from Condominium AssociationsRead the Press Release
BIRMINGHAM –A Birmingham woman pleaded guilty today in federal court to stealing more than $350,000 from condominium homeowner associations, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
JILL ROUSE, formerly Jill Rouse Boothby, 43, entered her plea before U.S. District Judge Madeline H. Haikala to one count of wire fraud. Rouse’s sentencing is scheduled Feb. 17. In a plea agreement with the government, Rouse has agreed to pay $375,750 in restitution.
According to Rouse’s guilty plea, she was employed as a property manager at Boothby Realty from 2008 through January 2015. Boothby Realty is a real estate and property management company located in Birmingham. Rouse also owned and operated an interior design business called Jill Boothby Designs. The design company is a separate and independent company from Boothby Realty and is run solely by Rouse.
As a property manager at Boothby Realty, Rouse was personally responsible for the management of 11 condominium associations within the Birmingham metropolitan area. Rouse attended homeowner association meetings, assisted with the use and accounting of the homeowner association funds, coordinated maintenance services at the properties, helped bid contracts for maintenance and improvements to the properties, and assisted the associations with budgeting. As expenses were incurred by the various associations, Rouse would advise Boothby Realty’s accounting personnel of the invoices and expenses to be paid from the homeowner associations’ funds.
Rouse acknowledged in her plea agreement that, beginning in late 2012 and continuing to about January 2015, she created false and fraudulent invoices for goods and services in the name of her company, Jill Boothby Designs, and submitted the various invoices to the 11 condominium associations that she managed. The Jill Boothby Designs invoices contained descriptions of items billed to the various associations, however, neither Rouse nor her design company actually purchased the items. Rouse submitted the fraudulent invoices to her employer, Boothby Realty, with a copy to the homeowner associations for payment out of the homeowner associations’ funds. The realty company paid the fraudulent invoices to Rouse out of those funds. To further conceal the fraud, Rouse altered the monthly financial statements that were submitted to Boothby Realty to be mailed or emailed to the associations.
The maximum punishment for wire fraud is 20 years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
Omaha Man Sentenced to Federal Prison for Illegally Possessing a FirearmRead the Press Release
United States Attorney Deborah R. Gilg announced that Aaron Craddock, age 30 of Omaha, Nebraska, was sentenced today by the Honorable Laurie Smith Camp, to three years, one month imprisonment following his conviction for being a felon in possession of a firearm. Craddock had previously pleaded guilty to the charge. Upon completion of his imprisonment, he will be on three years of supervised release.
On December 2, 2015, at approximately 9:21 p.m., officers of the Omaha Police Department stopped a car for turning into a driveway on J.A. Creighton Boulevard without using a turn signal. Craddock was the lone occupant. A drug dog alerted on the car. Officers searched the car and found 10 pounds of marijuana. The officers got a search warrant for Craddock’s residence and found a Taurus .40 caliber handgun in his bedroom. He has a prior felony conviction and as a result is prohibited from possessing firearms.
The case was investigated by the Omaha Police Department.
Oak Park Man Sentenced for Defrauding Cisco SystemsRead the Press Release
An Oak Park engineer was sentenced yesterday to 21 months in prison for illegally obtaining $400,000 in computer equipment in a wire fraud scheme, U.S. Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
U.S. District Judge Robert H. Cleland imposed sentence on Lahai Charles, 36, former employee of Federal-Mogul Corporation. Judge Cleland also imposed a two-year term of supervised release and ordered Charles to pay $414,000 in restitution to Cisco Systems, Inc. and $3,100 to Federal-Mogul. Charles pleaded guilty to one count of wire fraud in June.
According to court records, Charles was employed in Southfield by Federal-Mogul Corporation as an IT networking engineer. Federal-Mogul is a supplier of parts to businesses in the automotive industry and other sectors. Charles managed network switches for a number of Federal-Mogul offices in North America and South America. Cisco Systems, Inc., a computer technology company based in San Jose, California, provided computer equipment and support services to Federal-Mogul’s IT operations. During a 15-month period, Charles used his position at Federal-Mogul to exploit Cisco’s programs to provide IT support services to its large corporate customers. He obtained Cisco IT equipment through a series of false statements to Cisco and then sold the equipment to third parties through a secondary market broker. He did this to enrich himself, spending some of the funds on several personal trips to South America.
The case was investigated by the FBI, with assistance from Cisco Systems and Federal-Mogul, and prosecuted by Assistant U.S. Attorney Stephen Hiyama.
Northern Floridians May Report 2016 Election Violations to U.S. Attorney's OfficeRead the Press Release
TALLAHASSEE, FLORIDA – United States Attorney Christopher P. Canova will lead the efforts of the United States Attorney's Office, Northern District of Florida, in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. As the United States Attorney and District Election Officer, United States Attorney Canova is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses, in consultation with Justice Department Headquarters.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls. The Department’s long-standing Election Day Program seeks to ensure public confidence in the integrity of the election process by providing local points of contact for the public to report election violations while the polls are open on Election Day. This program deters election fraud and discrimination by increasing the Department’s ability to prosecute these offenses when they occur.
United States Attorney Christopher P. Canova said, “The ability to exercise the right to vote is the centerpiece of American democracy. The Department of Justice will act aggressively to ensure that those who are entitled to vote may do so and that those who seek to corrupt the integrity of the process are brought to justice. It is imperative that anyone with specific information about voting abuses or election fraud share the information with my office, the FBI, or the Department of Justice, so that we may ensure an open and fair election process.”
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also protects voters from intimidation and harassment. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
To respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, District Election Officer Christopher P. Canova will be on duty in this District while the polls are open. He can be reached at (850) 942-8430.
The FBI will also have Special Agents available in each field office and resident agency in the Northern District of Florida to receive and respond to allegations of election fraud, voter intimidation, voter suppression, and other election abuses. The FBI can be reached by the public at (904) 248-7000.
Complaints about possible violations of federal voting rights laws can be made directly to the Civil Rights Division's Voting Section in Washington at (800) 253-3931 or (202) 307-2767, by fax at (202) 307-3961, by e-mail to [email protected], or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php. The DOJ 2016 Election press release also contains additional information.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]North Dakota Man Found Guilty of Several Charges Related to Child PornographyRead the Press Release
BISMARCK - US Attorney Christopher C. Myers announced that on October 31, 2016, Calvin Bernhardt, 54, Tuttle ND, was found guilty following nearly four days of trial on charges of Attempted Sexual Exploitation of a Minor, Attempted Receipt of Materials Depicting the Sexual Exploitation of a Minor, Counterfeit Currency, Tampering with Witness or Evidence, and Attempted Travel with Intent to Engage in Sexual Acts with a Minor.
From approximately September 2015 to approximately March 2016, Bernhardt induced and enticed a 14-year-old minor from the Philippines to engage in and produce images of sexually explicit conduct via the internet; Bernhardt further induced the minor to send him the sexually explicit or sadistic and masochistic images. Once Bernhardt became aware of an investigation into his illegal conduct, he contacted the mother of the victim in the Philippines and instructed her to delete any images of himself and the minor on the minor’s cellphone and further instructed her to not talk to United States federal law enforcement officials in the Philippines. Communications between Bernhardt and the victim revealed that Bernhardt was attempting to arrange a meeting with the minor in a Philippines hotel with the intent of engaging in sexual acts with her.
Assistant United States Attorney Gary Delorme stated, "The United States and the District of North Dakota will not tolerate this kind of conduct and victimization of children over the internet regardless of where the victim is located. People engaging in this kind of conduct should expect to be vigorously prosecuted in this District."
This case was investigated by the Department of Homeland Security-Homeland Security Investigations in Bismarck; Homeland Security Investigations-Manila, Philippines; and the North Dakota Bureau of Criminal Investigation.
Assistant US Attorneys Gary Delorme and Jon O’Konek prosecuted the case.
North Carolina Businessman Pleads Guilty to Misappropriating Approximately $2.9 Million in Funds from NFL PlayersRead the Press Release
Failed to Report More Than $1.4 Million in Embezzled Funds on Tax Returns
A North Carolina businessman, who provided financial services to professional athletes, pleaded guilty today to wire fraud and filing a false 2011 income tax return, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Ripley Rand for the Middle District of North Carolina.
Michael Rowan, 46, a resident of High Point, North Carolina, operated Capital Management Wealth Advisors Inc. (CMG) and APS Management LLC (APS), along with his business partner. Through CMG and APS, Rowan provided financial and investment services to professional athletes, including players in the National Football League (NFL). From May 2008 through August 2014, Rowan converted and misappropriated approximately $2.9 million from his clients’ bank accounts. For 2009 through 2013, Rowan failed to report the misappropriated funds on his federal income tax returns.
According to documents filed with the court, Rowan, through CMG and APS, contacted prospective NFL Players in college to offer them financial and wealth management services, including bill payment, investment services and financial guidance. Once a player was drafted by the NFL, Rowan would enter into a verbal agreement with the player to provide financial services for an annual fee of between $15,000 and $50,000. Rowan directed his clients to execute an agency agreement that allowed Rowan access to the clients’ bank accounts. Rowan represented to his clients that he would only make transactions that were authorized by the clients and for the clients’ benefit. However, Rowan used his access to his clients’ bank accounts to transfer over $2.9 million for his own personal benefit and without his clients’ authorization or knowledge.
Sentencing is scheduled for Jan. 31, 2017. Rowan faces a statutory maximum sentence of 20 years in prison for the wire fraud count and three years in prison for the false tax return count, as well as a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rand commended special agents of Internal Revenue Service-Criminal Investigation and U.S. Postal Inspection Service, who conducted the investigation, and Assistant U.S. Attorney Frank Chut and Trial Attorney Mara Strier of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New York meth dealer sentenced to over seven years in federal prisonRead the Press Release
HUNTINGTON, W.Va. – A New York City drug dealer was sentenced to seven years and three months in federal prison for a methamphetamine crime, announced United States Attorney Carol Casto. Jamel Proctor, 31, previously pleaded guilty to possession with intent to distribute 50 grams or more of methamphetamine.
On May 13, 2016, a suspicious parcel was searched by an inspector with the United States Postal Service. The parcel was addressed to Jamel Proctor’s residence at 515 Flora Court in Huntington. The package contained over 900 grams of methamphetamine. Agents then conducted a controlled delivery of the package to 515 Flora Court, and Proctor’s girlfriend accepted the package. In a search of the residence immediately following the controlled delivery, the package was recovered and the agents located Proctor inside the residence. Agents also discovered a loaded firearm inside the residence. In a subsequent search of Proctor’s vehicle, agents located four additional firearms and an additional 173 grams of methamphetamine in two separate duffel bags. A surveillance team had seen Proctor place the bags in his vehicle earlier that day.
The Huntington FBI Drug Task Force, the United States Postal Inspection Service, and the Cabell County Sheriff’s Department conducted the investigation. Assistant United States Attorney Gregory McVey is in charge of the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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New York City Police Officer Merlin Alston Convicted in Manhattan Federal Court for Participating in A Drug Distribution ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), James J. Hunt, Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Division of the Federal Bureau of Investigation (“FBI”), announced that New York City Police Officer MERLIN ALSTON, 33, was convicted today of narcotics and firearms charges for his role in a long-running conspiracy to distribute large amounts of cocaine and molly in the Bronx. The jury convicted ALSTON on both counts in the controlling indictment following a two-week trial before U.S. District Judge Colleen McMahon.
U.S. Attorney Preet Bharara stated: “Rather than use his police badge and gun to serve and protect the citizens of New York City, Merlin Alston instead chose to protect and serve major Bronx drug dealers. Today’s unanimous jury verdict demonstrates that no one is above the law.”
DEA Special Agent in Charge James J. Hunt said: “Merlin Alston’s crimes were an about-face to law enforcement. As members of the New York Drug Enforcement Task Force worked to rid our communities of drugs, he was pushing drugs into them. I applaud our law enforcement partners and the U.S. Attorney’s Office Southern District of New York for their efforts in this investigation.”
According to court papers and evidence admitted at trial:
From 2010 to 2014, MERLIN ALSTON, who at the time was an active NYPD police officer, conspired with others to distribute large quantities of narcotics. ALSTON personally delivered approximately 40 kilograms of cocaine during that time. In addition, ALSTON provided armed security to a cocaine trafficker, using a shotgun and his NYPD service weapon to do so. ALSTON also provided confidential information about law enforcement operations, including arrests and surveillance, to several Bronx drug dealers.
For these activities, ALSTON was convicted of one count of conspiracy to distribute narcotics and one count of possession of firearms in furtherance of the narcotics conspiracy. ALSTON faces a mandatory minimum of 15 years in prison and a maximum sentence of life in prison. ALSTON is scheduled to be sentenced on February 2, 2017, before Chief Judge McMahon. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
U.S. Attorney Bharara thanked the Office of the Special Narcotics Prosecutor for the City of New York for its invaluable assistance, and praised the DEA, the FBI, and the NYPD for their outstanding work in this investigation. The DEA New York Drug Enforcement Task Force comprises agents and officers of the DEA, the NYPD, and the New York State Police.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Jared Lenow and Thomas McKay are in charge of the prosecution.
National Institute of Justice Awards Funding to Study Elder AbuseRead the Press Release
WASHINGTON, DC – The Department of Justice’s (DOJ’s) National Institute of Justice (NIJ) awarded nearly $800,000 to the Urban Institute and the University of Southern California to develop and test prevention programs addressing elder abuse, neglect and financial exploitation. The awards, which were also supported by DOJ’s Elder Justice Initiative, underscore NIJ’s work to identify evidence-based solutions to elder mistreatment and evaluate their effectiveness in prevention, detection and intervention. The awards establish an initial planning phase for an Elder Abuse Prevention Demonstration Project. Following the planning phase, NIJ will fund multi-year demonstration evaluations.
“There is no age limit on victimization,” said NIJ Director Nancy Rodriguez. “These awards are another step toward enabling evidence-based approaches to protect our elderly from abuse and neglect, while also holding accountable those who exploit and victimize our seniors.”
The Urban Institute was awarded $399,970 to design and implement an elder abuse prevention pilot project with at-risk adults 60 and older in Maricopa County, Ariz. This 18-month study will result in a published manual, including information for implementing and replicating the program in other locations. Following completion, the institute will perform a multi-year demonstration of the program.
The University of Southern California was awarded $400,000 to develop an innovative elder mistreatment intervention based upon lessons learned from preventing other forms of family violence, such as child maltreatment and intimate partner violence. The award will support the first phase of a three-part project led by the university in partnership with health professionals and stakeholders. Adults 65 and older will have the opportunity to take part in the first phase. Following completion, the university will perform a multi-year demonstration of the program.
More information on NIJ’s elder abuse projects is located here: http://nij.gov/topics/crime/elder-abuse/Pages/welcome.aspx
More information on DOJ’s Elder Justice Initiative can be found at www.elderjustice.gov.
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About the Office of Justice Programs: OJP, headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six components: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP can be found at www.ojp.gov.
Massachusetts Man Pleads Guilty to Failure to Register ChargeRead the Press Release
CONCORD, N.H. – United States Attorney, Emily Gray Rice announced today that Beau Shields, 29, of Barre, Massachusetts, pleaded guilty to one count of failing to register as a sex offender as required by the federal Sexual Offender Registration and Notification Act (SORNA).
According to court documents and statements made in court, Shields moved from New Hampshire to Massachusetts sometime before April 2016. Shields never registered in Massachusetts until after he was charged by the grand jury in New Hampshire. On two occasions, in April 2016 and July 2016, Shields reported his address as a residence located in Barre, Massachusetts. Shields was not registered as a sex offender in Massachusetts at the time he reported that he was living at the residence in Barre.
SORNA mandates that a person who is required to register must register in each jurisdiction where he resides, is employed or is going to school. SORNA gives an individual three days in which to register.
A sentencing hearing is scheduled for February 13, 2017.
The case was investigated by the United States Marshals Service and was prosecuted by Assistant U.S. Attorney Donald Feith.
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Manhattan U.S. Attorney Announces Charges Against Six Individuals for Their Role in International Money Laundering Scheme Involving over $100 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William J. Cotter, Special Agent-in-Charge of the San Antonio Field Office of the Internal Revenue Service, Criminal Investigations (“IRS-CI”), and Terence S. Opiola, Special Agent in Charge of the Newark Field Office of the Department of Homeland Security, Homeland Security Investigations (“HSI”), announced today a complaint charging CARLOS DJEMAL, ISIDORO HAIAT, BRAULIO LOPEZ, MAX FRAENKEL, DANIEL BLITZER, and ROBERT MORENO with international money laundering and wire fraud as well as conspiracies to commit these same offenses. DJEMAL was arrested in Chicago, Illinois; MORENO was arrested in Dallas, Texas; FRAENKEL was arrested in Austin, Texas. BLITZER will be presented this afternoon in Manhattan federal court before U.S. Magistrate Judge Andrew J. Peck. HAIAT and LOPEZ have not been apprehended.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Carlos Djemal, Isidoro Haiat, and their co-defendants used the U.S. banking system to commit an international fraud scheme that deprived the Mexican government of substantial tax revenue and involved the laundering of over $100 million. Thanks to the outstanding investigative work of HSI and the IRS, these alleged criminals will now face charges in an American court.”
IRS-CI Special Agent-in-Charge William J. Cotter said: “This investigation took law enforcement above and beyond its traditional role in financial crimes. In effect, it put us squarely in the middle of the high-tech world of banking and the sophisticated electronic movement of money. This investigation serves to remind us that there is no such thing as free money and there are no awards or incentives for creativity when it comes to crime.”
According to the allegations in the Complaint[1] unsealed today in Manhattan federal court:
Beginning in or about June 2011 through in or about at least May 2016, CARLOS DJEMAL, ISIDORO HAIAT, BRAULIO LOPEZ, MAX FRAENKEL, DANIEL BLITZER, and ROBERT MORENO were engaged in a scheme to defraud the Mexican government of tax revenue relating to Mexico’s value added tax (“VAT”) and then launder the proceeds of the scheme throughout the United States and Mexico. The Mexican government imposes VAT on goods sold from one Mexican company to another; however, when certain goods (such as cellular phones) are exported from Mexico, the previously-paid VAT is refunded to the exporter. DJEMAL, HAIAT, LOPEZ, MORENO, FRAENKEL, and BLITZER created and controlled dozens of companies (the “Front Companies”) purportedly doing business as importers and exporters of cellular phones in order to fraudulently obtain VAT refunds from the Mexican government.
In order to carry out the scheme, DJEMAL and HAIAT caused Front Companies in Mexico to purchase outdated cellular phones from other companies seeking to sell outdated inventory. DJEMAL and HAIAT then caused these phones to be exported to Front Companies in the United States owned and operated by others involved in the scheme. During the export process, DJEMAL and HAIAT obtained fraudulent invoices and created export documents that each falsely inflated the value of the phones being exported, thereby enabling them to fraudulently seek inflated VAT refunds from the Mexican tax authority.
Once the phones were shipped to the United States, they were transferred to one or more Front Companies in the United States created by LOPEZ, MORENO, FRAENKEL, or BLITZER, and then shipped back to a different Front Company in Mexico. Through this process, the phones were shipped repeatedly in a circular fashion between Front Companies controlled by the defendants and their co-conspirators in Mexico and the United States, enabling DJEMAL and HAIAT, to obtain multiple fraudulent VAT refunds for the same phones.
In order to create the appearance of legitimate cell phone sales, each transfer of phones was generally accompanied by a transfer of funds to and from accounts held in the name of the relevant Front Companies and owned and controlled by the defendants or their co-conspirators. As part of the scheme, each defendant or co-conspirator who controlled a Front Company receiving funds as part of the scheme retained approximately 1% for his participation in the scheme.
Between approximately June 2011 to approximately May 2016, DJEMAL, HAIAT, LOPEZ, MORENO, FRAENKEL, and BLITZER moved more than $100 million dollars through dozens of accounts maintained by Front Companies in this fashion, including through accounts maintained at a financial institution in the Southern District of New York.
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Mr. Bharara praised the outstanding work of HSI and IRS-CI for their investigative efforts and ongoing support and assistance with the case. Mr. Bharara also thanked the Government of Mexico, and in particular the Secretaría de Hacienda y Crédito Público, for their assistance and collaboration in this investigation.
The prosecution of this case is being overseen by the Office’s Money Laundering and Asset Forfeiture Unit. Assistant U.S. Attorney Jaimie L. Nawaday is in charge of the case.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Man Who Embezzled $125,000 from Connecticut Nonprofit is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that THOMAS RECCK, 52, of Cincinnati, Ohio, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to five years of probation, the first six months of which RECCK must serve in home confinement, for embezzling from a Connecticut-based nonprofit organization. Judge Meyer also ordered RECCK to perform 600 hours of community service while on probation.
According to court documents and statements made in court, RECCK, a former resident of New Britain, was the Treasurer for Connecticut Canine Search and Rescue, Inc. (“CCSAR”) in Kensington, a volunteer-based nonprofit organization dedicated to the search and rescue of missing and lost persons in the United States by using trained search and rescue dogs. In his capacity as the treasurer, RECCK had access to the bank accounts of CCSAR. From approximately January 2008 to August 2012, RECCK transferred more than $125,000 from CCSAR accounts into a separate account that he controlled and used the funds to gamble and for other personal expenses.
RECCK also failed to report the stolen funds on his federal tax returns.
On February 4, 2015, RECCK pleaded guilty to one count of wire fraud and one count of filing a false tax return.
RECCK was ordered to pay restitution in the amount of $125,649.77, as well as back taxes, penalties and interest for the 2008 through 2012 tax years.
This investigation was conducted by the Connecticut Financial Crimes Task Force, the Internal Revenue Service – Criminal Investigation Division and the Greenwich Police Department. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Lake County Resident Sentenced to over Five Years in Prison for Armed Bank RobberyRead the Press Release
SAN FRANCISCO – Samuel Campbell was sentenced to 70 months in prison for armed bank robbery, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The sentence, handed down last Friday, October 28, 2016, by the Honorable Susan Illston, U.S. District Judge, follows a guilty plea entered earlier this year.
Campbell, 26, formerly of Lake County, pleaded guilty on May 13, 2016, to a single count of armed bank robbery, in violation of 18 U.S.C. §§ 2113(a) and (d). According to the plea agreement, Campbell admitted that on the morning of July 8, 2015, he drove to a bank branch in Clearlake, Calif., and robbed it. During the robbery, he held what appeared to be a handgun while shouting commands to the bank employees. He stole more than $3,000 in cash from the bank and $120 from a bank customer.
In addition to the prison term, Judge Illston also ordered Campbell to serve a 5-year term of supervised release and ordered him to pay restitution in the amount of $3,137. Campbell currently is in custody and will begin serving his sentence immediately.
Special Assistant U.S. Attorney Philip Kopczynski is prosecuting the case with the assistance of MK Swartsfager. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Clearlake Police Department.
Laguna Pueblo Man Sentenced to Prison for Federal Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Benjamin Shiosee, 38, a member and resident of Laguna Pueblo, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 36 months in prison followed by 25 years of supervised release. Shiosee will also be required to register as a sex offender after he completes his prison sentence.
Shiosee, a former certified nursing assistant, was arrested on March 1, 2016, on a criminal complaint alleging that he sexually abused a patient on Sept. 4, 2015, on the Laguna Pueblo in Cibola County, N.M.
On April 21, 2016, Shiosee pled guilty to an information charging him with abusive sexual contact. In entering the guilty plea, Shiosee admitted that on Sept. 4, 2015, he sexually abused the victim within the Laguna Pueblo.
This case was investigated by the Albuquerque office of the FBI and the Laguna Pueblo Tribal Police Department. Assistant U.S. Attorney Joseph Spindle prosecuted the case.
La Oficina De La Fiscalía Federal Le Recuerda A Los Votantes De Nueva Jersey Que Pueden Usar La Línea Telefónica De Ayuda Electoral El Día De Las Elecciones Para Reportar Irregularidades O Abusos ElectoralesRead the Press Release
NEWARK, N.J. – El Fiscal Federal para el distrito de Nueva Jersey, Paul J. Fishman, le está recordando a los votantes de Nueva Jersey que la Oficina de la Fiscalía Federal para el distrito de Nueva Jersey estará dispuesta a recibir y a responder a reportes de irregularidades electorales, intimidación a los votantes y cualquieras otras actividades que puedan interferir con los derechos electorales de los ciudadanos el 8 de noviembre del 2016. La línea telefónica de ayuda electoral – (888) 636-6596 – estará activa desde el 7 de noviembre del 2016 hasta el 9 de noviembre del 2016 y será atendida en vivo el día de las elecciones en inglés y en español.
Cada año, la Oficina de la Fiscalía Federal para el distrito de Nueva Jersey, y otras agencias federales del orden público, encabezadas por el FBI, trabajan conjuntamente con la Oficina del Fiscal General de Nueva Jersey y las juntas electorales de los condados para responder a quejas electorales y dirigir las quejas a las autoridades apropriadas.
El Departamento de Justicia tiene por objeto garantizar que todos los votantes calificados tengan la oportunidad de emitir su voto y que sus votos cuenten, sin discriminación, intimidación o fraude. Fundada en el año 2010, esta iniciativa anual tiene como meta fomentar la confianza pública en la integridad del proceso electoral al proporcionar puntos de contacto locales dentro del Departamento de Justicia para que el público pueda reportar posibles violaciones de los derechos electorales y fraude electoral, mientras que las urnas estén abiertas el día de las elecciones.
La ley federal proteje a los cuidadanos contra crímenes electorales tales como la intimidación y el soborno de los votantes, la suplantación de votantes, la alteración de los lotes de votos, el relleno de las urnas electorales, y el marcar a las boletas para los votantes en contra de los deseos de los votantes y sin la participación de estos.
La ley también contiene protecciones especiales para los votantes para asegurar que estos puedan votar libre de intimidación o acoso. Por ejemplo, las acciones destinadas a interrumpir o intimidar a los votantes en los centros electorales, tal como cuestionando, desafiando, fotografiando o grabando los votantes, usando como pretexto que tales acciones son para descubrir actividades ilegales electorales, pueden en sí violar las leyes federales que protegen los derechos electorales. Además, la ley federal protégé el derecho de los votantes a marcar sus propias boletas o a ser asistidos para marcar sus boletas por una persona elegida por el votante.
El personal de la División de Derechos Civiles del Departamento de Justicia en Washington también estará disponible por teléfono para recibir denuncias relacionadas a los derechos electorales (1-800-253-3931 peaje gratis o 202-307-2767) o por TTY (202-514-0716). Además, las personas también pueden reportar quejas, problemas o inquietudes relacionadas con la votación por fax al 202-307-3961 , por correo electrónico a [email protected], y usando formularios de reclamaciones que puedan presentarse a través de un enlace en la página web del Departamento http://www.justice.gov/crt/complaint/votintake/index.php.
Justice Department’s Nationwide Election Day ProgramRead the Press Release
ATLANTA – U.S. Attorney John Horn announced that Assistant U.S. Attorney (AUSA) William Toliver will lead the efforts of the Northern District of Georgia Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections.
AUSA Tolliver has been appointed to serve as the District Election Officer (DEO) for the Northern District of Georgia, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud,” said U.S. Attorney Horn. “The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, U.S. Attorney Horn stated that AUSA/DEO Toliver will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: (404)581-6001.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (404) 679-9000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
“Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division,” said U.S. Attorney Horn.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Justice Department Files Suit Alleging Disability-Based Discrimination at Housing Complex in Ellensburg, WashingtonRead the Press Release
The Justice Department announced today that it has filed a lawsuit against the owners, builder and designer of the Ashlynn Estates in Ellensburg, Washington, alleging that the property was designed and constructed without complying with the Fair Housing Act’s (FHA) accessibility requirements. Situated near Central Washington University, each of the three buildings on the property have nine individually keyed units with their own bathroom and desk as well as a shared living space, a communal kitchen and two communal laundry rooms.
“When constructing new multifamily housing, including dormitory style residences like Ashlynn Estates, builders must make these facilities accessible to persons with disabilities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Building multifamily housing that is not accessible denies people with disabilities their legal right to equal housing opportunity.”
“The Fair Housing Act was originally enacted in 1968 and was amended in 1988 to prohibit discrimination on any protected basis, including disability,” said U.S. Attorney Michael C. Ormsby of the Eastern District of Washington. “This statute and other legislation guarantees safe and reasonable access for persons with disabilities to ensure full participation in all aspects of life, including housing. The DOJ’s Civil Rights Division, HUD and the U.S. Attorney’s Office take serious allegations of disability-based discrimination through access violations and we join our colleagues in seeking enforcement of those rights guaranteed by this historic legislation.”
The suit, filed in the U.S. District Court for the Eastern District of Washington, alleges that various barriers at the Ashlynn Estates deny persons with disabilities equal access to 12 ground-floor units and the associated public and common-use areas at the property that are covered by the FHA. Such barriers include: inaccessible building entrances on an inaccessible exterior route; inaccessible knob hardware throughout the buildings, including on the building entrances and unit entrances; inaccessible electrical outlets; inaccessible laundry facilities; inaccessible bathrooms and inaccessible walk-in closet entrances.
The lawsuit arises from a complaint filed with the U.S. Department of Housing and Urban Development (HUD) by the Northwest Fair Housing Alliance (NWFHA), a private, nonprofit corporation whose mission is to provide education regarding fair housing laws and to ensure compliance with those laws in Washington. NWFHA inspected the Ashlynn Estates and observed accessibility barriers. After conducting an investigation, HUD issued a charge of discrimination and referred the case to the Justice Department.
“The Fair Housing Act’s design and construction requirements are clear,” said Gustavo Velasquez, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “Not complying not only violates the law, it also reduces the availability of the type of housing persons with disabilities depend on. HUD applauds the action the Justice Department took today, and we look forward to continuing to work together to send a clear message to property owners and developers that they will be held accountable for not meeting their legal obligations.”
The suit names the owners of the property, Keith and Tamra Riexinger, and Riexinger Enterprises Inc., also known as Crossroads Construction, the firm that designed and constructed the property. The suit seeks a court order requiring the defendants to retrofit the Ashlynn Estates property to bring it into compliance with the FHA, as well as monetary damages for NWFHA and for persons harmed by the lack of accessibility at the complex.
The FHA prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status and disability. Among other things, the FHA requires all multifamily housing constructed after March 12, 1991, to have basic accessibility features, including accessible routes without steps to all ground-floor units. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, email the Justice Department at [email protected] or contact HUD at 1-800-669-9777.
Riexinger ComplaintJames P. Kennedy, Jr. Named Acting United States AttorneyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - James P. Kennedy, Jr. has been named Acting United States Attorney for the Western District of New York following the departure of William J. Hochul, Jr.
“I am honored to be named Acting United States Attorney for the Western District of New York,” said Kennedy. “As a native of Western New York, I look forward to working with our outstanding law enforcement partners at the local, state and federal levels and serving the people of the community in which I was born and raised.”
A Phi Beta Kappa and magna cum laude graduate of Hamilton College, Mr. Kennedy attended the Buffalo Law School where he graduated cum laude in 1988, having served as editor of the Buffalo Law Review.
Following law school, Kennedy worked as the Confidential Law Assistant to the late Honorable Michael F. Dillon and Honorable M. Dolores Denman, Presiding Justices, New York States Supreme Court, Appellate Division, Fourth Department. In 1992, he was hired by then United States Attorney Dennis Vacco to serve as an Assistant United States Attorney. Starting first in the civil division, AUSA Kennedy, in 1993, became an OCDETF (Organized Crime Drug Enforcement Task Force) Attorney where he prosecuted a number of high profile narcotics, violent crime, and police corruption cases. In 2004, AUSA Kennedy was picked by then United States Attorney Michael Battle to serve as the District’s first full-time Appellate Chief. In that capacity, he briefed and argued a number of cases before the United States Court of Appeals for the Second Circuit in New York City. In 2006, he became the Chief of the White Collar General Crimes unit, and in 2007, he was promoted to Criminal Chief for the Western District of New York. In April of 2010, he was selected by William Hochul to be First Assistant U.S. Attorney. During his tenure in the United States Attorney’s Office, Kennedy has received numerous awards and honors including the Attorney’s General’s John Marshall Award, one of the Department of Justice’s highest awards.
Kennedy further stated, “Our Office has a tradition of excellence. I intend on preserving that tradition and bringing to justice those who detract from the safety and quality of life in our District. From corrupt public servants to child predators, from violent gangsters to fraudsters, and from those who contribute to overdose deaths to those who engage in under-handed business practices, I pledge to work tirelessly with the many hard-working and talented attorneys and support staff who serve in this Office not only to continue our crime-fighting efforts but to develop creative and innovative solutions to the problems with which we are confronted.”
Kennedy lives on Grand Island with his wife Stephanie, who works in the Amherst School District. They have two children, a daughter, Bridget, who attends the United States Naval Academy, in Annapolis, Maryland, and a son, Jack, who attends Davidson College, in Davidson, North Carolina.
Innovative Public-Private Agreement Will Convert Drug Properties to Renovated Housing Stock in Rutland, VTRead the Press Release
The United States Attorney’s Office announced today that the government and its public and private partners have completed an agreement to convert forfeited Rutland drug houses to safe, renovated housing. The government had previously filed suit to forfeit the drug houses, located at 114, 116 and 117 Park Avenue in Rutland, because those properties were used to distribute crack and heroin. The settlement of that lawsuit, announced today, was made possible by an innovative partnership among the federal government, the City of Rutland, Neighbor Works of Western Vermont (“NWWVT”), and other private parties. The settlement agreement will result in the conversion of the blighted properties to high-quality, renovated, owner-occupied single-family residences, duplexes or condominium residential units that will benefit the residents of Rutland.
The United States’ forfeiture lawsuit was brought pursuant to 21 U.S.C. § 881(a)(7), which, under certain circumstances, allows for forfeiture of property used to commit or facilitate the commission of felony drug offenses. The federal forfeiture law also requires owners of such rental properties to take reasonable and safe steps to discourage or prevent drug dealing on the property, such as contacting law enforcement and seeking to evict the tenants involved. In its lawsuit, the government alleged the owners of the Park Avenue properties had failed to take such reasonable steps.
The settlement was made possible by the cooperation of multiple governmental, non-profit, and for-profit parties, including: (1) the United States, which is the plaintiff in the lawsuit; (2) Ericob Vermont Realty Corp, the former owner of the property; (3) the City of Rutland, which was owed property taxes and other fees on the properties; (4) the mortgagee for the property; and (5) NWWVT, which will renovate and resell the properties.
Under the terms of the settlement, the owners of the properties agreed to forfeit them to the United States. After forfeiture to the United States, the United States Marshals Service (“USMS”) agreed to transfer the properties to the City of Rutland. The City of Rutland, in turn, agreed to cancel all of its outstanding taxes, fines, and fees and transfer the properties to NWWVT. NWWVT agreed to rehabilitate the properties and sell them for owner-occupied housing. Under the terms of the City of Rutland’s deed to NWWVT, the three properties may only be used for owner-occupied, single family residences, duplexes, or condominium residential units. Finally, NWWVT agreed to pay $82,500 (minus the USMS’ costs) to the mortgage holder on the properties in return for the mortgage holder discharging its mortgage liens. The USMS agreed to cap its costs at $5,000 and, in fact, kept its costs to approximately $750.
Describing the settlement agreement, United States Attorney Eric Miller said, "This innovative agreement is a 'Win-Win-Win.' Law enforcement has stopped the pervasive drug dealing that once plagued these properties; Rutland has taken yet another step toward reclaiming a beautiful neighborhood; and the non-profit housing community has increased the stock of safe and refreshed housing available to the community it serves."
NWWVT Executive Director Ludy Biddle stated “NeighborWorks is thrilled to have a part in turning these beautiful historic houses into family homes so more children can carve pumpkins and watch movies outdoors together and ride bikes along the creek as part of living in this wonderful neighborhood.”
The forfeited properties are located in the northwest neighborhood of the City of Rutland, where a 2014 housing study found that only about 32% of the residences were owner-occupied. The settlement ensures that these three residential properties will be transformed from ownership by an absentee landlord into owner-occupied, single family residence, duplexes, or condominium residential units, thereby reducing the risk that the properties will again provide shelter for drug dealers. U.S. Attorney Eric Miller noted that this forfeiture case, and the related criminal prosecutions, represent a concerted effort by the federal, state, and local governments to improve the quality of life in this neighborhood and to make it safer for families. U.S. Attorney Miller also praised NWWVT for investing in the renovation and resale of the properties and the U.S. Marshals for their contributions to the resolution of this matter.
The original complaint and the accompanying affidavit show that there were multiple heroin and crack cocaine dealers living in and using the apartments in the Park Avenue buildings starting at least in 2011 and 2012 and continuing into 2015. The documents also show that law enforcement searched several of the apartments in 2013. Law enforcement made six controlled drug purchases from dealers in the apartments and arrested several persons who had been living there. Many former tenants have been convicted and sentenced to significant time in federal prison. They include, among others: Eric Dixon, now serving 87 months in federal prison; Ernest Murray, now serving 60 months in federal prison; Andrew Harris, now serving 60 months in federal prison; Terrance Chenault, now serving 87 months in federal prison; and Joshua Minix, now serving 87 months in federal prison.
The United States Attorney’s Office’s efforts to combat drug trafficking in Rutland have been made possible by the enforcement work of the Vermont State Police Drug Task Force, the Federal Bureau of Investigation, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Rutland Police Department.
The United States is represented in this matter by Assistant U.S. Attorneys James Gelber and Joseph Perella. The former owners of the property are represented by Matthew Shagam, Esq., of Burlington. NWWVT is represented by Gary Kupferer, Esq., and the City of Rutland is represented by City Attorney Charles Romeo.
Holden Woman Sentenced to 32 Months for Heroin ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Sara Monroe, 30, of Holden, Maine, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to 32 months in prison and three years of supervised release for conspiracy to possess with the intent to distribute and distribute heroin. Monroe pleaded guilty on May 17, 2016.
According to court records, between February and September 2015, Monroe conspired with Mario Lee, a/k/a “Moe” and others to distribute heroin in the Bangor area and elsewhere. Monroe drove Lee to heroin customers and also obtained heroin from him for distribution.
The case was investigated by the Maine Drug Enforcement Agency and the U.S. Drug Enforcement Administration.