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16 December 2016
Baltimore Man Pleads Guilty in Federal Court to Sex Trafficking of a MinorRead the Press Release
Baltimore, Maryland –Steven B. Boyd, a/k/a “Gotti,” age 37, of Baltimore, pleaded guilty today to sex trafficking of a minor.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, an undercover enforcement operation conducted by Baltimore City Police officers during an investigation of sex trafficking of minors, identified Boyd as a pimp who caused two minor girls to engage in commercial sex acts for his own financial benefit. Boyd knew the two girls were under 18 years of age when he recruited them to work for him. During the investigation, five other women over the age of 18 were also identified as working for Boyd, including two women who traveled from other states to Maryland to work for Boyd.
According to his plea agreement, Boyd paid for hotel rooms for the women to engage in commercial sex acts. Forensic examination of Boyd’s phone as well as information provided by the women and girls working for Boyd showed that he also paid for online ads for the women and girls to engage in commercial sex acts. According to the girls and women working for him, Boyd took all the money they made from commercial sex acts. Boyd transported the girls and women on “outcalls,” taking to them to hotel rooms and residences to engage in prostitution, as well as transporting them to other states. Boyd provided the girls and women with telephones to communicate with him about their commercial sex activities.
Boyd faces a mandatory minimum sentence of 10 years and up to life in prison for sex trafficking of a minor. U.S. District Judge James K. Bredar has scheduled sentencing for April 26, 2017. Boyd remains detained.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Baltimore City Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Rachel M. Yasser, who are prosecuting the case.
Baltimore Felon Pleads Guilty and is Sentenced to 15 Years in Federal Prison for Illegal Possession of a GunRead the Press Release
Baltimore, Maryland –U.S. District Judge J. Frederick Motz sentenced William Warren, age 28, of Baltimore, today to 15 years in prison, followed by three years of supervised release, after Warren pleaded guilty to being a felon in possession of a firearm.
The guilty plea and sentence were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore Police Commissioner Kevin Davis; and Baltimore City State’s Attorney Marilyn Mosby.
“ATF Baltimore will continue to focus the entirety of their investigative resources towards any persons or organizations who perpetrate firearm related violence upon the citizens of Baltimore and all surrounding communities,” said ATF Special Agent in Charge Board.
According to his plea agreement, on September 17, 2014, Baltimore Police officers were patrolling in the 400 block of East 21st Street due to an ongoing conflict between two drug crews operating in the area. The officers saw Warren, who they knew was a member of one of the drug crews, riding a bike. As the officers approached, Warren turned his right side away from the officers and fled on his bike. The officers followed Warren and saw him check his right waist area as he ran into an alley. Farther into the alley the officers saw Warren remove what appeared to be a handgun from his right waist band and throw it over a fence into the rear yard of 2208 Barclay Street. Officers recovered the gun, a .45 caliber handgun, loaded with nine live rounds. As a result of three previous felony drug convictions, Warren was prohibited from possessing a gun or ammunition.
Judge Motz ordered that Warren’s federal sentence will be concurrent to the 22-year state sentence he is currently serving after his conviction on an unrelated gun charge
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Patricia C. McLane, who prosecuted the case.
Attorneys Indicted for Multimillion Dollar Scheme to Fraudulently Obtain Settlements from Victims who Downloaded PornographyRead the Press Release
United States Attorney Andrew M. Luger today announced a federal indictment charging PAUL R. HANSMEIER, 35, and JOHN L. STEELE, 45, with conspiring to fraudulently obtain millions of dollars by deceiving federal and state courts. HANSMEIER was suspended from the practice of law in the State of Minnesota on September 12, 2016.
“The defendants in this case are charged with devising a scheme that casts doubt on the integrity of our profession,” said U.S. Attorney Luger. “The conduct of these defendants was outrageous – they used deceptive lawsuits and unsuspecting judges to extort millions from vulnerable defendants. Our courts are halls of justice where fairness and the rule of law triumph, and my office will use every available resource to stop corrupt lawyers from abusing our system of justice.”
“The charges announced today describe a fraud scheme perpetrated by lawyers and officers of the court who abused their positions of trust for personal enrichment,” said Special Agent in Charge of the FBI Minneapolis Division Richard T. Thornton. “The FBI remains committed to uncovering fraud such as this to protect the integrity of our civil justice system.”
“The role of IRS Criminal Investigation becomes even more important in complex financial investigations involving money laundering because of the time it takes to unravel,” stated Special Agent in Charge Shea Jones, St. Paul Field Office. “IRS Criminal Investigation is committed to working these types of difficult financial investigations and following the criminal’s money, wherever it leads.”
According to the indictment, between 2011 and 2014, the defendants orchestrated an elaborate scheme to steal millions of dollars by threatening copyright lawsuits against individuals who supposedly downloaded pornographic movies from file-sharing websites. The defendants created and used a series of sham entities to obtain copyrights to pornographic movies – some of which they filmed themselves – and then uploaded those movies to file-sharing websites like “The Pirate Bay” in order to lure people to download the movies.
According to the indictment, to learn the identities of their potential victims, the defendants filed bogus copyright infringement lawsuits, through which they got permission from courts to subpoena internet service providers for subscriber information associated with the IP addresses used to download their pornographic movies. After getting the subscriber information, the defendants used extortionate letters and phone calls to threaten the victims with enormous financial penalties and public embarrassment unless they agreed to pay a settlement of thousands of dollars.
According to the indictment, various courts began to restrict the defendants’ ability to sue multiple individuals in the same copyrights lawsuit. So the defendants changed their tactics, in order to keep extorting victims, and began to file lawsuits falsely alleging that computer systems belonging to their sham clients had been hacked. HANSMEIER and STEELE recruited ruse defendants to facilitate their phony “hacking” lawsuits. The ruse defendants were people who had been caught downloading pornography from a file-sharing website. The ruse defendants agreed to be sued in exchange for HANSMEIER and STEELE waiving a settlement fee. The ruse defendants were a necessary part of the scheme so that HANSMEIER and STEELE could seek discovery against the ruse defendants’ supposed “co-conspirators.”
Finally, when courts became suspicious of the defendants’ tactics and motives, the defendants began a long process of lies and deceit designed to conceal the truth and deflect responsibility from themselves. As courts began to uncover the defendant’s unscrupulous litigation tactics, judges began denying the defendants’ requests to subpoena ISPs, dismissing lawsuits, accusing the defendants of deceptive and fraudulent behavior, and imposing sanctions against the defendants and their associates. For example, on May 6, 2013, the District Court for the Central District of California issued an order imposing sanctions against the defendants. The order read, in part:
Plaintiffs [including HANSMEIER and STEELE] have demonstrated their willingness to deceive not just this Court, but other courts where they have appeared. Plaintiffs’ representations about their operations, relationships, and financial interests have varied from feigned ignorance to misstatements to outright lies. But this deception was calculated so that the Court would grant Plaintiff’s early-discovery requests, thereby allowing Plaintiffs to identify defendants and exact settlement proceeds from them. With these granted requests, Plaintiffs borrow the authority of the Court to pressure settlement.
In total, the defendants obtained approximately $6,000,000 made possible by the fraudulent copyright lawsuits they peddled to courts throughout the country.This case is the result of an investigation conducted by the FBI and the Criminal Investigation Division of the IRS.
This case is being prosecuted by Assistant U.S. Attorneys Benjamin Langner and David Maclaughlin, and Brian Levine, Senior Counsel with the Computer Crime and Intellectual Property Section of the U.S. Department of Justice.
Defendant Information:PAUL R. HANSMEIER, 35
Saint Paul, Minn.Charges: • Conspiracy to commit mail fraud and wire fraud, 1 count
• Conspiracy to commit perjury and suborn perjury, 1 count
• Conspiracy to commit money laundering, 1 count
• Wire fraud, 10 counts
• Mail fraud, 5 countsJOHN L. STEELE, 45
Unknown, FloridaCharges: • Conspiracy to commit mail fraud and wire fraud, 1 count
• Conspiracy to commit perjury and suborn perjury, 1 count
• Conspiracy to commit money laundering, 1 count
• Wire fraud, 10 counts
• Mail fraud, 5 countsAryan Brotherhood of Mississippi Gang Member Sentenced to Life in Prison for Racketeering Conspiracy and Related OffensesRead the Press Release
A member of the Aryan Brotherhood of Mississippi (ABM) gang was sentenced to life in prison for his participation in a variety of violent criminal acts, including racketeering conspiracy, murder, kidnapping, conspiracy to possess methamphetamine with intent to distribute and other related offenses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi, Special Agent in Charge Stephen G. Azzam of the Drug Enforcement Administration’s (DEA) New Orleans Field Office, Special Agent in Charge Constance Hester of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New Orleans Field Office, Special Agent in Charge Christopher Freeze of the FBI in Mississippi and Director John Dowdy of the Mississippi Bureau of Narcotics (MBN) made the announcement.
“Even among criminal organizations, the ABM stands out for its violent and repulsive crimes,” said Assistant Attorney General Caldwell. “That is why we will continue to identify, apprehend and prosecute ABM members across the country until the communities that have been living in fear are free from ABM’s grasp.”
“This prosecution is the result of an unprecedented collaboration between the Department of Justice, federal, state and local law enforcement officers targeting a large-scale prison gang involved in violent organized crime throughout the state of Mississippi,” said U.S. Attorney Adams. “As a result of this collaborative effort, we have effectively dismantled this violent organization and sent a clear message that the United States Attorney’s Office and our law enforcement partners have an unwavering commitment to hold those individuals accountable who insist on creating an atmosphere of violence and fear in our communities.”
“The sentencing of this gang member is an example of DEA’s relentless pursuit to target organizations that plague and pollute our communities. Because drug trafficking and gang violence isn’t confined to one jurisdiction or community, it is important that law enforcement continues to work together to improve the quality of life for the citizens were serve in our communities and neighborhoods,” said Special Agent in Charge Azzam. “DEAs continued pledge to the people of Mississippi is to continue to work with all our law enforcement partners, to pursue these violent thugs, criminals and drug traffickers.”
“Violence takes a toll on our family and community. The substantial sentence imposed today drives a strong message to violent gang organizations that they will be held accountable for their actions,” said Special Agent in Charge Hester. “ATF is committed to providing every available resource to combat violent crime and illegal firearm activity. We will continue to collaborate with all of our federal, state and local law enforcement partners in identifying, disrupting and dismantling the violent gangs that prey on our communities.”
“Dismantling organized crime organizations is essential to our society,” said Special Agent in Charge Freeze. “Violent groups such as the Aryan Brotherhood are an anathema on our society and negatively affect the daily lives of all law abiding citizens. The FBI and our law enforcement partners are dedicated to disrupting and deterring the most significant gangs throughout Mississippi and enhancing the lives of all Mississippians.”
“It is a privilege for the Mississippi Bureau of Narcotics to partner with all of these law enforcement agencies to make Mississippi a safer place,” said Director Dowdy. “The sentence handed down today insures that this defendant can no longer be a menace to public safety.”
Eric Glenn Parker, 36, of Forrest County, Mississippi, a member of ABM, was sentenced on Dec. 16, 2016 to serve life in prison by U.S. District Judge Glen H. Davidson of the Northern District of Mississippi. On April 13, 2016, Parker was found guilty by a federal jury of engaging in a racketeering conspiracy, murder and methamphetamine distribution.
The ABM is the Mississippi-centered branch of the Aryan Brotherhood, a violent, “whites only,” prison-based gang with members and associates operating inside and outside of state penal institutions. The ABM is engaged in racketeering activities, including murder, attempted murder, kidnapping, assault, money laundering, firearms trafficking and trafficking in marijuana and methamphetamine, both inside and outside correctional facilities. According to trial evidence, Parker and three co-defendants served at varying times on the ABM’s three-member “wheel” that oversaw and directed ABM activity throughout Mississippi during the conspiracy.
According to evidence presented at trial, ABM leaders ordered other gang members to lure an individual to an ABM house so that they could murder him for an unpaid drug debt. ABM gang members kidnapped the victim, beat him severely, and delivered him to Parker. Parker, along with Frank George Owens Jr., his co-defendant at trial, beat the victim to death and delivered the body to a co-defendant, who burned the victim’s body for days in order to incinerate it. In addition, Parker dealt methamphetamine on behalf of the ABM, which garnered him a leadership position in the gang.
Today’s sentencing marks the culmination of a 2.5-year investigation into and prosecution of the ABM, which resulted in the conviction of 42 members and associates of the gang. Owens, 44, of D’Iberville, Mississippi, was convicted along with Parker of engaging in a racketeering conspiracy, murder and conspiracy to possess with intent to distribute at least 500 grams of methamphetamine. On Nov. 2, 2016, Owens was sentenced to life in prison and 120 months for attempted murder.
The DEA, ATF, FBI and MBN investigated the case. The U.S. Marshals Service; Federal Protective Service; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Mississippi Highway Patrol; Mississippi Bureau of Investigation; Mississippi Department of Corrections; Harrison County, Mississippi, Sheriff’s Office; South Mississippi Metro Enforcement Team; Tupelo, Mississippi, Police Department; North Mississippi Narcotics Unit; Tishomingo County, Mississippi, Sheriff’s Office; Lee County, Mississippi, Sheriff’s Office; Forrest County, Mississippi, District Attorney’s Office; Prentiss County, Mississippi, Sheriff’s Office; Jones County, Mississippi, Sheriff’s Office; Harrison County, Mississippi, Sheriff’s Office; and South Mississippi Metro Enforcement Team provided valuable assistance in the investigation. The Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Offices of the Northern and Southern Districts of Mississippi prosecuted the case.
Anchorage Man Sentenced to 17 Months for Illegal Possession and Sale of ExplosivesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Reginald Jesse Hawley, 39, of Anchorage, was sentenced by U.S. District Judge Sharon L. Gleason to serve 17 months in prison for being a felon in possession of explosives, followed by three years of supervised release.
On June 7, 2016, Hawley possessed 4 one pound "bricks" of explosives when he sold them for $2,000 to another individual. At the time of the possession and sale, Hawley had previously been convicted of crime punishable by more than one-year imprisonment and was prohibited from possessing explosives or firearms.
Judge Gleason noted the potential for danger in the illegal sale of explosives to unknown individuals.
U.S. Attorney Loeffler commends the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Federal Bureau of Investigation for the successful investigation and prosecution of this case.
Alachua County Survey Company Owner Sentenced to 30 Months in Prison for Federal Financial Fraud CrimesRead the Press Release
GAINESVILLE, FLORIDA – Matthew G. Munksgard, 41, of Archer, Florida, was sentenced yesterday to 30 months in prison for four counts of false statement to a federally insured institution and aggravated identity theft. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that Munksgard, as the owner of a land surveying company, requested and received four line-of-credit loans from Drummond Community Bank in amounts ranging from approximately $30,000 to $60,000. The loans were each secured with a survey contract as collateral, which provided for Munksgard to be paid after he completed survey work. Munksgard told the bank that he would repay the loans after he completed the survey work. When the loans became due, Munksgard informed the bank that his customers had not paid him yet because of project delays. He requested that the loan maturity dates be extended. After contacting two of Munksgard’s clients, the bank discovered that Munksgard did not have any contracts with them. Munksgard later admitted to the bank that the four contracts were fraudulent. Munksgard was convicted on September 15, 2016.
“Truthful loan applications are essential to the determination of credit worthiness in maintaining a sound banking industry,” said U.S. Attorney Canova. “Therefore, we will vigorously prosecute those who make false statements to obtain loans.”
“Financial fraud has the potential to cause immeasurable damage to our community,” said Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville Division. “The FBI will continue to work alongside our law enforcement partners to identify, stop, and punish those who commit fraud schemes that impact our financial institutions.”
The case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Herbert S. Lindsey.
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]10th Street Gang Members Sentenced on Murder Racketeering ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Kyle Eagan, 27, of Buffalo, NY, who was convicted of Racketeering Influenced Corrupt Organizations (RICO) and Murder in Aid of Racketeering, was sentenced to 265 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that between 2000 and 2010, Eagan was a member of the 10th Street Gang. As a part of his involvement with that gang, the defendant, along with other members and associates of the gang, sold marijuana, cocaine, crack cocaine, and other controlled substances on the West Side of Buffalo. Eagan and others also committed acts of violence, including murder, against rival gang members and rival drug dealers.
Specifically, Eagan admitted that the multiple acts of murder and attempted murder consisted of shooting at the victims with firearms, with one of the shooting incidents occurring in “drive-by” fashion on city streets. The violent acts consisted of:
• On September 15, 2008, Eagan and another individual shot at a group of rival 7th Street gang members killing Omar Fraticello-Lugo.
• On August 12, 2009, Eagan and a fellow 10th Street Gang member shot an individual nine times. The individual survived.
• On September 7, 2009, Eagan shot at rival 7th Street Gang members.
• October 17, 2009, Eagan shot at a rival 7th Street gang associate.Eagan is one of 44 10th Street Gang members and associates charged and convicted in this case.
The sentencing is the culmination of an investigation on the part of Investigators of the New York State Police, under the direction of Major Steven Nigrelli, the Buffalo Police Department, under the direction of Commission Daniel Derenda, and Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen.
15 December 2016
“Real Time”: Felon Who Attempted to Evade Officers Sentenced to 10 Years in Federal Prison for Firearms PossessionRead the Press Release
Contact Person: Lance Crick (864) 282-2100
COLUMBIA, South Carolina ---- Acting United States Attorney Beth Drake stated today that Amancio Joshua Venegas, age 32, of Gaffney, was sentenced to ten years in federal prison following a guilty plea to federal gun charges. United States District Judge Timothy M. Cain presided over both the guilty plea hearing, held on April 25, 2016, and yesterday’s sentencing hearing in Anderson. Venegas was arrested on federal charges shortly after his state arrest and has remained in custody, detained without bond, since his federal arrest. Venegas received the statutory maximum sentence for his conduct.
The facts presented at both the guilty plea hearing as well as the sentencing hearing established that on August 19, 2016, Venegas, a previously convicted felon who is prohibited from possessing firearms or ammunition, drove an underage female to a restaurant parking lot in Cowpens in an ill-fated attempt to facilitate a methamphetamine drug deal. In the days leading up to the attempted drug deal, Venegas helped the female acquire a loaded .22 caliber pistol which she had in her purse as she approached her drug customer. Venegas was aware when she got out of his vehicle that she was in possession of the firearm.
The deal quickly went south as the prospective customer turned out to be an undercover police officer. As police quickly moved in to make arrests, Venegas fled the parking lot in his Jeep Cherokee, hitting a pedestrian in the process. In his attempt to flee, Venegas ultimately abandoned his vehicle after running it into a median guidewire on Interstate 85 in Cherokee County and then ran into the woods before being taken into custody.
Arrested on state charges on August 19, 2015, Venegas’ case was immediately adopted for federal investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Venegas was arrested on federal warrants on August 24, 2016. This investigation was one of the first cases adopted as part of the US Attorney’s Office’s “Real Time” prosecutions in the upstate.
“Real Time” is an ongoing local, state, and federal initiative that expedites the identification, arrest, detention, and federal prosecution of repeat offenders arrested with firearms. The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the upstate. Venegas was on state probation at the time of his firearms possession and flight, having been released from the South Carolina Department of Corrections 47 days earlier.
The case was investigated by the Cowpens Police Department, the Gaffney Police Department, the Spartanburg County Sheriff’s Office, the Cherokee County Sheriff’s Office, the South Carolina Highway Patrol, the South Carolina Law Enforcement Division, the 7th Circuit Solicitor’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney Lance Crick of the Greenville office prosecuted the case.
Acting U.S. Attorney Beth Drake commended the continuing partnership between the state and federal agencies in keeping our communities safe: “We work best when we work together. We welcome the opportunity to work alongside our state chiefs and sheriffs in taking individuals who illegally possess firearms out of our communities.
7th Circuit Solicitor Barry Barnette and his office serve as an active partner in the Real Time efforts. “This multi-agency partnership endeavors to keep our communities safe and reduce firearms violence through ‘real time’ identification of dangerous individuals who seek to disrupt our streets and communities with firearms-driven violence.”
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Western District of Virginia U.S. Attorney’s Office Collects $9,663,834 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
Roanoke, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today that the Western District of Virginia collected $9,663,834 in criminal and civil actions in fiscal year 2016. Of this amount, $9,266,499 was collected in criminal actions and $397,334 was collected in civil actions.
Additionally, the Western District of Virginia worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $7,775,772 in cases pursed jointly with these offices. Of this amount, $1,541,247, was collected in criminal actions and $6,234,475, was collected in civil actions.
Attorney General Loretta E. Lynch announced yesterday that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending September 30, 2016. The $15,380,130,434 in collections for FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
“I am proud of our office’s work in collecting money from criminals,” United States Attorney Fishwick said today. “The lawyers and staff here work diligently to deprive criminals of their ill-gotten gains and to recover funds for crime victims.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Western District of Virginia, working with partner agencies and divisions, collected $8,531,233 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Funds are used to restore funds to crime victims and for a variety of law enforcement purposes.
United States Files Complaint Seeking Forfeiture of Antiquities Associated with the Islamic State of Iraq and the Levant (ISIL)Read the Press Release
WASHINGTON – The U. S. Department of Justice announced today that the United States has filed a civil complaint seeking the forfeiture of multiple antiquities associated with the Islamic State of Iraq and the Levant (ISIL), also known as Da’esh. The complaint alleges that ISIL, which is designated by the U.S. Department of State as a Foreign Terrorist Organization, markets and sells antiquities to finance its terror operations.
The lawsuit marks the first time that the United States has filed an action to forfeit antiquities that are foreign assets of ISIL.
The action, which was filed in the U.S. District Court for the District of Columbia, specifically seeks the forfeiture of four archaeological items that were depicted in photographs found during a raid of a residence of Abu Sayyaf, a senior leader within ISIL, near Deir Ezzor, Syria, in May 2015. The items include a gold ring, two gold coins, and a carved stone. They date to ancient times and are believed to be worth hundreds of thousands of dollars. The FBI is pursuing recovery of these items.
The lawsuit was filed by the U.S. Attorney’s Office for the District of Columbia following an investigation into items seized in the raid. During the operation, Abu Sayyaf was killed when he engaged with U.S. military forces.
According to the civil complaint filed today, the United States recovered data from electronic media during the raid, including photographs of the four items at issue in the complaint. The complaint also makes public documents recovered from the raid that reveal significant information about the organizational structure of ISIL, and how ISIL created a sophisticated bureaucratic system for extracting wealth from sites containing materials that are important to the cultural heritage of the people of Syria and Iraq. For example, according to the lawsuit, excavation permits and receipts of collections written on ISIL letterhead (which are attached to the complaint) were passed among members of the Antiquities Department. Abu Sayyaf referred to himself in these documents as the President of the Ministry of Natural Resources Antiquities Department. There are also discussions of depositing the proceeds of ISIL’s antiquities trafficking into ISIL’s treasury.
According to analysis by antiquities experts, the documentary style, lighting, and focus of the photographs indicate that the photographed antiquities were prepared for marketing in order to sell the items internationally. The subsequent investigation has revealed that ISIL sold antiquities in U.S. dollars, including of at least one of the antiquities in the complaint.
Under United States law, all assets, foreign or domestic, of a terrorist or terrorist organization, and all assets, foreign or domestic, affording a source of influence over any such entity or organization, are subject to forfeiture.
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“This complaint demonstrates the United States government’s intent to diligently pursue actions that will limit the ability of ISIL and other terrorist organizations to generate revenue,” said Channing D. Phillips, U.S. Attorney for the District of Columbia. “This complaint also serves as a warning to those who traffic in precious antiquities and who seek to profiteer from ISIL’s exploitation of the cultural heritage of areas under its control.”
“The documents unsealed today reveal that ISIL specifically directed its members to steal archaeological objects for purposes of selling them on the black market in order to use the proceeds to support this designated terrorist organization,” said Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office. “ISIL members extorted and threatened to arrest anyone outside of the terrorist organization who attempted to excavate, sell or transport antiquities from the territory under their control. It is essential for the FBI to recover these items so that we can stop the illegal flow of funds to support terrorist activity and repatriate these historical treasures.”
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Specifically, the complaint alleges that the following items are subject to forfeiture:
1) Gold ring with carved gemstone
This ring is believed to be from the Hellenistic/Roman period, dating approximately from 330 BC to 400 AD, and to have come from Deir Ezzor, Syria, which is near where the raid against Abu Sayyaf occurred.2) Gold coin featuring Antoninus Pius
This coin is believed to be Roman, dating to approximately 138-161 A.D., and is sourced to any large, urban Hellenistic or Roman city in Syria, including Apamea, Palmyra, Dura Europos, or Bosra.3) Gold coin featuring Emperor Hadrian Augustus Caesar
This coin is believed to be Roman, dating to approximately 125-128 AD, was probably minted in Rome, and is sourced to any large, urban Hellenistic or Roman city in Syria, including Apamea, Palmyra, Dura Europos, or Bosra.4) Carved Neo-Assyrian Stone
This is believed to be the upper portion of a round‐topped stone stela (upright stone slab bearing a relief design) carved with an image of a provincial official, most likely a eunuch, facing left, with his right forearm and hand raised. This item is believed to be from the archaeological site of Tell Ajaja in the Khabur region of northern Syria.Because civil forfeitures are suits against the property itself, the complaint names the four above antiquities as the defendants. The claims made in the complaint are only allegations and do not constitute a determination of liability.
This case is being investigated by the FBI’s Washington Field Office, with support from the U.S. Department of State. Assistant U.S. Attorneys Arvind K. Lal, Zia M. Faruqui, Deborah Curtis, Brian P. Hudak, Christopher B. Brown, and Ari Redbord, with the assistance of Paralegal Specialist Toni Donato, all from the U.S. Attorney’s Office for the District of Columbia, are representing the government.
The FBI reminds the public to come forward with any information they may have about stolen art or cultural heritage items. Tips can be submitted to tips.fbi.gov. Tipsters may remain anonymous.
Art and cultural item buyers are recommended to review the FBI’s National Stolen Art File prior to a purchase to avoid civil forfeiture of stolen items.
In addition, the U.S. Department of State's Rewards for Justice program is offering rewards for information that will disrupt the trade of trafficking of antiquities that benefit ISIL. The Secretary of State has authorized a reward of up to $5 million for information leading to the significant disruption of the sale and/or trade of antiquities by, for, on behalf of, or to benefit ISIL.
U.S. Postal Service Worker Charged with Importing a Controlled SubstanceRead the Press Release
BOSTON – An employee of the United States Postal Service (USPS) was charged today in U.S. District Court in Boston in connection with purchasing and importing anabolic steroids.
John A. Psehoyas, 54, was charged with one count of importation of a controlled substance. According to the terms of the plea agreement also filed today, Psehoyas has agreed to plead guilty and resign from USPS. A plea hearing has not yet been scheduled.
According to the charging document, Psehoyas was a customer service supervisor at the Lynnfield, Mass. Post Office. From August 2014 to March 2016, Psehoyas purchased anabolic steroids, a controlled substance, from online sources. He had the parcels containing steroids shipped to him from China, Poland, Turkey and Romania. The parcels were addressed to multiple addresses to avoid suspicion, but Psehoyas tracked the parcels using a USPS tracking system.
The charging statute provides for a sentence of no greater than 15 years in prison, three years of supervised release and a fine of $500,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Eileen Neff, Special Agent in Charge of the Office of Inspector General for the U.S. Postal Service, made the announcement today. Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption Unit is prosecuting the case.
The details contained in the Information are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Citizen Charged with Conspiring to Provide Unlawful Services to Iran and International Money Laundering ConspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a U.S. citizen has been indicted on federal charges for his alleged role in a scheme to provide services to Iran which resulted in the unlawful distribution of approximately $1 billion United States dollars equivalent of Iranian owned funds. These funds were held in South Korea in restricted accounts, then transferred to more than 10 countries around the world, including the United States, United Arab Emirates, Switzerland, Germany, Austria and Italy. These transfers were in violation of the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSR).
Kenneth Zong, 77, is named as the sole defendant in the 47-count indictment charging him with conspiracy to violate IEEPA, unlawful provision of services to Iran, money laundering conspiracy, and money laundering. The indictment alleges that Zong, a U.S. citizen, spent most of his adult life residing in, and doing business in Anchorage, Alaska. At a time undetermined, Zong left Alaska for Seoul, South Korea, and operated businesses there. The indictment alleges that in January 2011, and continuing through at least April 2014, Zong and four co-conspirators – three Iranian nationals and one U.S. citizen – conspired to evade the prohibitions of IEEPA and ITSR by engaging in false, fictitious and fraudulent transactions which were designed to unlawfully convert and remove Iranian owned funds equivalent to approximately $1 billion United States dollars. These funds were held in controlled Korean bank accounts, and converted into more easily tradeable currencies, such as dollars and/or euros, by defrauding the Korean regulators into thinking the transactions were legitimate. Zong is charged with transferring those currencies worldwide, and receiving payment for these acts from the Iranian nationals in an amount from $10 million to $17 million USD.
The indictment alleges that the scheme began in 2011, when Zong changed the name of his Korean company, “KSI Ejder, Inc.” (KSI) to “Anchore.” Zong used KSI/Anchore as a conduit to convert and distribute Iranian funds into United States currency or, in some cases euros, by fictitiously selling marble tiles and other construction supplies to an Iranian shell company in Kish Island, Iran. The indictment alleges that KSI/Anchore fictitiously purchased Italian marble tiles and other construction supplies from “MSL & Co Investment Trading” (MSL Investment Dubai), an Iranian-controlled shell company in Dubai, which were then fictitiously shipped directly to another fictitious company in Iran. Zong and his co-conspirators created false and fictitious contracts, bills of lading, and invoices to show Korean government banking regulators that the Iranian company owed KSI/Anchore for the false marble purchases. This resulted in the transfer of Iranian funds, at the direction of Zong’s co-conspirators, from the restricted Iranian bank account to Zong’s KSI/Anchore account. Zong then transferred the funds to entities and individuals throughout the world, including Alaska and other countries in the Middle East, Europe and North America.
Zong is also charged with 43 counts of money laundering and one count of money laundering conspiracy for his actions in connection with the $10 million dollar fee paid to him by his Iranian associates. In furtherance of the scheme, Zong transferred $10 million of his fees from Korea to a co-conspirator who resided in Anchorage. This individual also created and operated various companies to be used as front companies to purchase real estate, automobiles, an interest in a yacht and other purchases or transfers of the Iranian funds.
The U.S. embargo on Iran, which is enforced through IEEPA and the ITSR, prohibits the export of goods, technology, and services to Iran with very limited exceptions.
An arraignment date has not been set.
U.S. Attorney Loeffler commended the IRS-Criminal Investigation and the FBI for the investigation of this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
U.S. Attorney’s Office for the Middle District of Alabama Collects over $2.6 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
Montgomery, Alabama- U.S. Attorney George L. Beck Jr. announced today that the Middle District of Alabama collected $2,639,626.76 in criminal and civil actions in Fiscal Year 2016. Of this amount, $2,317,486.29 was collected in criminal actions and $322,140.47 was collected in civil actions.
Attorney General Loretta E. Lynch announced on Wednesday, December 14, 2016 that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
In addition to the $2.6 million collected above, the U.S. Attorney’s office in Middle District of Alabama working with partner agencies and divisions, collected $877,880.00 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
One example of a significant asset forfeiture occurred in September 2016 when the Middle District of Alabama recovered $404,135.00 as part of the settlement in the Curtis Pope case. On August 11, 2015, a state trooper conducted a commercial vehicle safety inspection on a tractor trailer that was not carrying any cargo. After a K-9 alerted to the presence of the odor of narcotics within the cabin of the vehicle, the trooper discovered in excess of $500,000.00 in U.S. currency within vacuum-sealed bags hidden within the mattress, along with dryer sheets. The driver admitted to log book violations and to the fact that he neither delivered nor picked up a load to transport during the trip.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
“My office is committed to protecting the public and recovering funds for the victims of crime as well as every taxpayer,” said U.S. Attorney Beck. “Unfortunately, there is enormous profit in crime and these profits come at the expense of hardworking citizens. We will continue to hold accountable, both civilly and criminally, those who seek to make money from illegal activities. I am also pleased that a significant amount of the asset forfeiture funds collected are returned to state and local law enforcement agencies who already struggle with limited budgets and resources.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
U.S. Attorney’s Office for the Middle District of Pennsylvania Collects over $14.5 Million on Behalf of U.S. Taxpayers in Fiscal Year 2016Read the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the Middle District of Pennsylvania collected $14.5 million in criminal and civil actions in Fiscal Year 2016. Of this amount, $2.1 million was collected in criminal actions and $12.3 million was collected in civil actions.
The $14.5 million collected exceeds the Office’s $8.9 million appropriated budget by approximately $5.6 million.
Additionally, the U.S. Attorney’s Office in the Middle District of Pennsylvania, working with partner agencies and divisions, collected over $4 million in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Attorney General Loretta E. Lynch announced on December 14, 2016, that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15.4 billion in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
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U.S. Attorney’s Office Collects $156 Million in Criminal and Civil Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
ALEXANDRIA, Va. – U.S. Attorney Dana J. Boente announced today that the Eastern District of Virginia (EDVA) collected $156,514,010.12 in criminal and civil actions in Fiscal Year 2016. Of this amount, $49,997,392.53 was collected in criminal actions and $106,516,617.59 was collected in civil actions.
Additionally, EDVA worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $3,635,377.40 in cases pursued jointly with these offices. Of this amount, $29,737.34 was collected in criminal actions and $3,605,640.06 was collected in civil actions.
Attorney General Loretta E. Lynch announced yesterday that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
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.
U.S. Attorney’s Office Collects $13 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016.Read the Press Release
CINCINNATI - U.S. Attorney Benjamin C. Glassman announced today that the Southern District of Ohio collected more than $13 million in criminal and civil actions in Fiscal Year 2016. Of this amount, $10.7 million was collected in criminal actions and $2.4 million was collected in civil actions.
Additionally, the Southern District of Ohio worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $73.5 million in cases pursued jointly with these offices. Of this amount, $62 million was collected in criminal actions and $11.5 million was collected in civil actions.
Attorney General Loretta E. Lynch announced yesterday that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
In the Southern District of Ohio, the largest single recovery in a criminal case this year involved restitution of more than $3.8 million from U.S. v. Joseph Molnar.
Molnar was a Managing Director for a Huntington National Bank subsidiary, Huntington Community Development Corporation. He embezzled approximately $4 million of the bank’s funds by falsely representing that he was paying “placement fees” or “advisory fees” for property management companies as part of several affordable housing property deals that had closed with Huntington National Bank. Instead, Molnar withdrew the funds under false pretenses and placed that money into his own accounts for his own personal use.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
U.S. Attorney's Office for the Southern District of Illinois Collect $10,286,273 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois announced today that his office collected $10,286,273 in criminal and civil actions in Fiscal Year 2016. Of this amount, $1,612,396 was collected in criminal actions and $8,673,877 was collected in civil actions.
Additionally, the Southern District of Illinois worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $805,940 in civil actions.
Attorney General Loretta E. Lynch announced on December 14, 2016 that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ Offices and the main litigating divisions of the Justice Department combined in that same period.
"Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse," said Attorney General Lynch. "Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation."
"My office will pursue the collection of monies owed the United States. The honest and law-abiding citizens of southern Illinois deserve no less than our best efforts. As always, no legal avenue to collect debts owed the United States will go unused," noted United States Attorney Boyce.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the United States Attorney’s Office for the Southern District of Illinois, working with partner agencies and divisions, collected $703,831 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Two Ordered to Federal Prison for Involvement in Romance Scam ConspiracyRead the Press Release
HOUSTON – Two Nigerian citizens have been ordered to prison for their role in a $2 million romance scam conspiracy, announced U.S. Attorney Kenneth Magidson. Kunle Mutiu Amoo, 49, and Lanre Sunday Adeoba, 62, both citizens of Nigeria, each pleaded guilty to one count of conspiring to commit wire fraud on July 15, 2016.
Today, U.S. District Judge Alfred H. Bennett sentenced both defendants to 36 months in prison. They were further ordered to pay $86,581.15 in restitution. In handing down the sentence, Judge Bennett noted that as a result of the offense, the victim had suffered substantial financial hardship and that the defendants had abused a position of trust by falsely representing themselves as diplomats from South Africa. Not U.S. citizens, they are expected to face deportation proceedings following their release from prison.
The romance scam involved a scheme to defraud victims of money using false romantic overtures and false promises that the victims would be repaid. In this conspiracy, a member of the conspiracy posed as the manager of a construction company doing business in South Africa who needed the victim’s financial assistance to move $42 million in construction project proceeds from South Africa to the United States. The defendants posed as South African diplomats who were responsible for transporting the money into the United States and who also needed the victim’s financial assistance in order to transport the money.
As part of their pleas, Amoo and Adeoba admitted they agreed and attempted to defraud this victim of $506,000.
The overall conspiracy caused the victim a loss of $2 million.
Amoo and Adeoba will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
According to the FBI, romance scams, also classified as confidence frauds, result in the highest amount of financial losses when compared to other Internet-enabled crimes. In 2015, victims of confidence frauds reported financial losses of nearly $200 million to the FBI's Internet Crime Complaint Center. If you think you've been victimized by a dating or other online scam, report it to www.ic3.gov.
The FBI conducted the investigation. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
Two Navy Contractors Arrested for Separate Bomb HoaxesRead the Press Release
Assistant U.S. Attorney Michelle Pettit (619) 546-7972
NEWS RELEASE SUMMARY – December 15, 2016
SAN DIEGO – Two Navy contractors were arrested and arraigned Wednesday on charges that in unrelated cases, they gave false information about bogus bomb threats that resulted in mass evacuations of Navy ships and the pier where they were docked.
Contractor Joshua Rice, 26, is charged in a grand jury indictment with reporting to Navy security personnel that he saw an inscription of the word “bomb” on the inside of a portable toilet near three Naval vessels docked at Naval Base San Diego on the morning of May 17, 2016, when he knew there was no true threat. The false report caused a security response, shutting down all work on the nearby ships and the pier. At the time, Rice was working as a contractor for American Marine.
Roberto Rubio, 22, is charged in a separate indictment with writing “9-24-16 400 bomb” on an interior wall onboard USS Cowpens and reporting it to another contractor on September 24, 2016. At the time, USS Cowpens was undergoing maintenance on the San Diego Ship Repair Facility, and Rubio’s false report also caused the anticipated security response, shutting down all work on the ship until it could be verified that there was no bomb. At the time, he was working as a welder for Navy contractor BAE Systems.
For each bomb threat, there is a security response that includes clearing the area and stopping all work, which has a significant negative impact on all affected personnel and Navy readiness.
“Everyone should know that making false bomb threats is taken very seriously by federal law enforcement, and it is a felony offense,” said U.S. Attorney Laura E. Duffy. “This is not a legal or smart way of getting out of work.”
“The bomb threats on and around Naval Base San Diego since November 2015 have had a huge negative impact on the efficiency and productivity of the shipyard's efforts to maintain Navy readiness,” said Gunnar Newquist, Special Agent in Charge of the Naval Criminal Investigative Service Southwest Field Office. “NCIS is appreciative of the tips received during the course of this ongoing investigation.”
Joshua Rice is scheduled to appear next on January 30, 2017, before Judge William Q. Hayes for a motion hearing and trial setting.
Robert Rubio is scheduled to appear next on January 9, 2017, before Judge John A. Houston for a motion hearing and trial setting.
DEFENDANT Criminal Case No. 17CR2855-WQH
Joshua Rice Age: 26 San Diego, California
SUMMARY OF CHARGE
Count 1:Title 18, United States Code, Section 1038(a)(1): False Information and Hoaxes.
Maximum penalties: 5 years’ prison and a $250,000 fine.
DEFENDANT Criminal Case No. 17CR2856-JAH
Robert Rubio Age: 22 San Diego, California
SUMMARY OF CHARGE
Count 1:Title 18, United States Code, Section 1038(a)(1): False Information and Hoaxes.
Maximum penalties: 5 years’ prison and a $250,000 fine.
INVESTIGATING AGENCY
Naval Criminal Investigative Service
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Two NC 18-Year-Olds Federally Indicted in Simpsonville Gun Store RobberyRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
Columbia, South Carolina –-- Acting United States Attorney, Beth Drake, announced today that two individuals from Charlotte, NC, Sahier Lavon Richardson, age 18, and Juran Maghi Witherspoon, age 18, have been charged federally for their roles in the pre-dawn break-in and theft of firearms from The Gun Shop in Simpsonville in October.
On December 13, 2016, a federal grand jury returned a one-count indictment alleging that on October 13, 2016, the defendants, Richardson and Witherspoon, knowingly and unlawfully did take and carry away from the premises of The Gun Shop, 622 NE Main Street, Simpsonville, South Carolina, a licensed firearms dealer, firearms in the licensee’s business inventory that had been shipped and transported in interstate and foreign commerce, and did aid and abet each other in the commission of the aforesaid offense; in violation of Title 18, United States Code, Sections 922(u), 924(i)(1) and 2.
Prior to their indictment, Richardson and Witherspoon were arrested on federal arrest warrants in early November for the offense and have remained in custody, detained without bond, since that date.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with the assistance and cooperation of the Simpsonville Police Department, Charlotte Mecklenburg Police Department and the Lincoln County (North Carolina) Sheriff’s Department. The case has been assigned to Assistant United States Attorney Lance Crick of the Greenville office for prosecution.
The Acting United States Attorney stated that all charges in this indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
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Two Mexican Nationals Plead Guilty in Sinaloa Cartel-Related Drug Trafficking and Money Laundering ProbeRead the Press Release
Assistant U. S. Attorney Larry Casper (619) 546-6734
NEWS RELEASE SUMMARY – December 15, 2016
SAN DIEGO – Osvaldo Contreras-Arriaga of Tijuana pleaded guilty in federal court today to managing and supervising a $20 million drug trafficking conspiracy in which multi-kilo quantities of cocaine were smuggled from Mexico to the United States.
Contreras-Arriaga, a 28-year-old Mexican National who was extradited from Colombia to the United States in June 2016, admitted that he arranged for drug smugglers to bring cocaine into the United States and ensured that smugglers were paid for transporting the cocaine. According to his plea agreement, he also arranged for U.S. bulk currency pickups from drug dealers so that these drug proceeds could be smuggled from the United States to Mexico.
As part of his plea agreement, Contreras-Arriaga agreed to an enhancement under the U.S. Sentencing Guidelines, which will result in him receiving an elevated Guidelines sentencing range. Contreras-Arriaga admitted that, during the period charged, he was responsible for smuggling more than 50 kilograms (110 pounds) but less than 150 kilograms (330 pounds) of cocaine into the United States.
Contreras-Arriaga also admitted to working with co-defendant Omar Ayon-Diaz, 38, also a Mexican National, who owned and operated currency exchange houses in Tijuana and who was also extradited from Colombia in August 2016. On December 6, 2016, Ayon-Diaz pleaded guilty to conspiracy to commit international money laundering and admitted that he and his exchange houses knowingly received $24.5 million in smuggled proceeds from the sale of narcotics trafficking in the United States.
Joel Acedo-Ojeda, a money-laundering co-defendant, was also sentenced this week to 135 months in custody. At that sentencing, the prosecutor told the court that funds were believed to have been laundered for Sinaloa Cartel drug traffickers.
Contreras-Arriaga pleaded guilty before U.S. Magistrate Judge Barbara L. Major and Ayon Diaz pleaded guilty before U.S. Magistrate Judge Bernard G. Skomal. Both Contreras-Arriaga and Ayon-Diaz will be sentenced on March 6, 2017 at 9:00 a.m. before U.S. District Judge Roger T. Benitez.
Contreras-Arriaga faces up to life in prison, a mandatory minimum of ten years in prison, and a $10 million fine. Ayon-Diaz faces up to 20 years in prison, a maximum fine of $49 million (twice the value of the funds involved), and a forfeiture judgment of $24,500,000.
The U.S. Attorney’s Office is working this matter together with the Asset Forfeiture and Money Laundering Section of the Department of Justice in Washington, D.C.
DEFENDANT Case Number 15cr0950-BEN
Osvaldo Contreras-Arraiga Age: 28 Tijuana, Mexico
SUMMARY OF CHARGES
Conspiracy to import cocaine, in violation of Title 21, U.S.C., Secs. 952, 960 and 963.
Maximum Penalties: Life in prison and 10-year mandatory minimum sentence, and $10 million fine.
DEFENDANT
Omar Ayon-Diaz Age: 38 Tijuana, Mexico
SUMMARY OF CHARGES
Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h).
Maximum Penalties: 20 years in prison; $500,000 fine or twice the value of the funds involved.
AGENCY
Homeland Security Investigations
Two Men Indicted for Trafficking Methamphetamine Bound for Utqiaġvik (Formerly Barrow)Read the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that two Anchorage men were indicted by a federal grand jury in Anchorage for trafficking in methamphetamine bound for Utqiaġvik, Alaska (formerly Barrow, Alaska).
The two defendants named in the indictment are Maurice Abad Malabed, aka “Moe,” 47, and David Patrick Christensen, 29, both of Anchorage. According to the indictment, Malabed and Christensen conspired and attempted to distribute and to possess with the intent to distribute 50 grams and more of a mixture or substance containing a detectible amount of methamphetamine.
According to the criminal complaint filed in federal court last week, on Dec. 7, 2016, law enforcement intercepted a parcel addressed to Christensen, which contained approximately four ounces of methamphetamine, and thereafter effected a controlled delivery of the package. Malabed and Christensen were both arrested on Dec. 7, 2016, when they took possession of the parcel outside Christensen’s Anchorage residence. The underlying investigation revealed that, among other things, between approximately Nov. 29 and Dec. 7, 2016, Malabed had arranged for the shipment of roughly 135 grams of methamphetamine from California to Anchorage, with Christensen’s assistance, and that the methamphetamine was ultimately bound for Utqiaġvik.
Assistant U.S. Attorney Andrea Hattan, who presented the case to the grand jury, indicated that the law provides for a minimum of five years and a maximum total sentence of 40 years in prison, a fine of $5,000,000, or both, for each of the two charged offenses. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
The Drug Enforcement Administration (DEA), Alaska State Troopers Statewide Drug Enforcement Unit (AST SDEU), and the North Slope Bureau Police Department (NSBPD) jointly conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Two Men Indicted on Heroin and Crack Cocaine Trafficking ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Henry J. Flemister, age 26, of Steelton, Pennsylvania, and Kevin N. Bilheimer, age 57, of Yeagertown, Pennsylvania, were indicted on December 14, 2016, by a federal grand jury for heroin and crack cocaine trafficking violations.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Flemister and Bilheimer conspired and possessed with the intent to distribute heroin and crack cocaine in August and September 2016, in Mifflin County.
The case was investigated by the Mifflin County Drug Task Force and the Federal Bureau of Investigation. Assistant United States Attorney James T. Clancy is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each of the drug trafficking offenses and conspiracy is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two Glenpool Men Plead Guilty to ArsonRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that GARRETT LEE RAYNOR, age 19, of Bixby, Oklahoma, and JOSHUA SCOTT COPPEDGE, age 19, of Glenpool, Oklahoma, each pled guilty to one count of ARSON, in violation of Title 18, United States Code, Sections 844(f)(1) and 2, punishable by not less than 5 years and not more than 20 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that on or about August 23, 2016, within the Eastern District of Oklahoma, the defendants maliciously damaged, destroyed, and attempted to damage and destroy, by means of fire, a 2010 Bluebird school bus, owned by the Twin Hills School District, an institution receiving Federal financial assistance.
The charge arose from an investigation by the Okmulgee County Sherriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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 defendants will remain in custody pending a sentencing hearing.
Assistant United States Attorney Dean Burris represented the United States.
Two Florida Men and a Corporation Indicted in Wire Fraud Case Related to Falsified Water Testing in Dale CountyRead the Press Release
Montgomery, Ala. – Billy Ray Roberson, Sr., 60, of Milton, Florida; Darin Lewis, 46, of Crestview, Florida; and Roberson Excavation, Inc. (Roberson Excavation), a company headquartered in Milton, Florida were indicted and charged with conspiring to commit wire fraud, announced United States Attorney George L. Beck, Jr. The charge in the indictment stemmed from scheme to falsify water samples during the testing of new water lines. Both Roberson and Lewis were arrested today and made their initial appearances in federal court.
According to court documents, in 2014, the Dale County Water Authority hired Roberson Excavation to replace water lines in the Marley Mill neighborhood of Dale County. Mr. Roberson was the owner and president of Roberson Excavation. By February of 2015, Roberson Excavation was three months behind schedule on the job and paying daily penalties of $500 for each day that the project went incomplete. At that time, Mr. Roberson instructed his site supervisor, Darin Lewis, to falsify the testing required before the lines went into operation. Among the tests falsified were the tests used to determine whether harmful bacteria were present in the water.
If convicted of the conspiracy, each individual defendant faces a maximum sentence of 5 years’ imprisonment. Additionally, the corporate defendant faces a maximum fine of $250,000.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
This case was investigated by the Environmental Protection Agency’s Criminal Investigations Division and Office of Inspector General. Assistant United States Attorney Jonathan S. Ross is prosecuting the case.
Towanda Man Sentenced for Armed RobberyRead the Press Release
WICHITA, KAN. - A Towanda man was sentenced Thursday to seven years in federal prison for robbing an Arkansas City business at gunpoint, U.S. Attorney Tom Beall said.
Jason A. Farner, 32, Towanda, Kan., pleaded guilty to one count of brandishing a firearm during a commercial robbery. In his plea, he admitted he brandished a .380 caliber handgun on Feb. 11, 2016, when he robbed Advance America in Arkansas City, Kan. Farner was arrested later that day when a deputy with the Sumner County Sheriff’s Office stopped him for a traffic violation.
Beall commended the Sumner County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Alan Metzger for their work on the case.
ThunderCat Agrees to Civil Settlement for Bid-Rigging and Kickback SchemesRead the Press Release
ALEXANDRIA, Va. – ThunderCat Technology, LLC, located in Reston, has agreed to pay $1 million to settle civil False Claims Act, Anti-Kickback Act, and Procurement Integrity Act claims relating to bid rigging and kickback schemes in connection with six government procurements.
The settlement resolves civil claims against ThunderCat relating to the criminal pleas entered by ThunderCat principal, co-owner, and general manager, Edwin Keith McMeans, and ThunderCat sales representative, Anthony Bilby. From September 2008 to February 2012, ThunderCat solicited or submitted inflated third party bids or “loser bids” during competitions for five government contracts and/or purchase orders awarded by the Department of Homeland Security (DHS) on behalf of the U.S. Customs and Border Protection (CBP) and U.S. Citizenship and Immigration Services and one government contract awarded by the General Services Administration (GSA). In connection with one CBP contract, ThunderCat agreed to pay CPB employees 10 percent of ThunderCat’s profits on the contract in exchange for procurement sensitive independent government cost estimates prior to ThunderCat’s submission of its proposal.
The resolutions obtained in this matter were the result of a coordinated effort between the Civil and Criminal Divisions of the U.S. Attorney's Office for the Eastern District of Virginia, and the Offices of Inspector General for DHS and GSA.
The civil matter was investigated by Assistant U.S. Attorney Christine Roushdy. The civil claims settled by this False Claims Act, Anti-Kickback Act, and Procurement Integrity Act agreement are allegations only; there has been no determination of civil liability. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Criminal Case No. 1:15-cr-264 (Edwin Keith McMeans) and No. 1:13-cr-466 (Anthony Bilby).
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.
Three Real Estate Developers Charged in White Plains Federal Court with Conspiracy to Corrupt the Electoral Process in Bloomingburg, New YorkRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), today announced the unsealing of an Indictment charging SHALOM LAMM, KENNETH NAKDIMEN, and VOLVY SMILOWITZ, a/k/a “Zev Smilowitz,” with conspiracy to corrupt the electoral process, in connection with an election in Bloomingburg, New York. Bharara also today announced the guilty plea of HAROLD BAIRD, a former Town Supervisor of Mamakating, New York, to conspiracy to submit false voter registrations, charged in a one-count Information unsealed today.
Manhattan U.S. Attorney Preet Bharara stated: “In pursuit of millions of dollars in profits from a real estate development project, the defendants allegedly hatched a cynical ploy to corrupt the electoral process in Bloomingburg. As alleged, to get public officials supportive of their development project elected to local government, the defendants concocted a scheme to falsely register voters who did not live in Bloomingburg, including some who had never even set foot there. And to cover up their voter fraud scheme, the defendants allegedly back-dated fake leases and even placed toothpaste and toothbrushes in empty apartments to make them appear occupied by the falsely registered voters. Profit-driven corruption of democracy cannot be allowed to stand no matter who does it or where it happens.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. stated: “Today’s charges allege the defendants corruptly advanced their own personal real estate projects in Bloomingburg, New York, at the expense of honest citizens who expect and deserve a fair election system. In their scheme to promote their own real estate development projects, the defendants violated federal law as they schemed to put themselves first. This type of behavior simply won’t be tolerated.”
As alleged in the Indictment unsealed today in White Plains federal court[1]:
SHALOM LAMM, KENNETH NAKDIMEN, and VOLVY SMILOWITZ, a/k/a “Zev Smilowitz,” the defendants, were real estate developers who, starting in or about 2006, sought to build and sell real estate in Bloomingburg, New York. From these real estate development projects, the defendants hoped for and anticipated making hundreds of millions of dollars. But by late 2013, the first of their real estate developments had met local opposition, and still remained under construction and uninhabitable. When met with resistance, rather than seek to advance their real estate development project through legitimate means, the defendants instead decided to corrupt the democratic electoral process in Bloomingburg by falsely registering voters and paying bribes for voters who would help elect public officials favorable to their project.
Specifically, in advance of an election in March 2014 for Mayor of Bloomingburg and other local officials, LAMM, NAKDIMEN, and SMILOWITZ, the defendants, and others working on their behalf, developed and worked on a plan to falsely register numerous people who were not entitled to register and vote in Bloomingburg, because they actually lived elsewhere. People the defendants falsely sought to register to vote in Bloomingburg included those who never intended to live in Bloomingburg, those who had never kept a home in Bloomingburg, and indeed, some who had never even set foot in Bloomingburg in their lives. The defendants took steps to cover up their scheme to register voters who did not actually live in Bloomingburg by, among other things, creating and back-dating false leases and placing items like toothbrushes and toothpaste in unoccupied apartments to make it seem as if the falsely registered voters lived there.
LAMM, NAKDIMEN, and SMILOWITZ, the defendants, also bribed potential voters by offering payments, subsidies, and other items of value to get non-residents of Bloomingburg to unlawfully register and vote there. LAMM, for example, agreed to pay an individual $500 for every voter that the individual procured, and LAMM and NAKDIMEN’s real estate company ultimately paid the individual more than $30,000 per month for his efforts.
As alleged in a separate Information unsealed today in White Plains federal court:
From in or about January 2014 through in or about March 2014, BAIRD conspired with others to submit false voter registrations so that he could run for political office and vote in Bloomingburg. In fact, however, BAIRD did not live in Bloomingburg, and his voter registrations were false.
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LAMM, NAKDIMEN, and SMILOWITZ were arrested this morning and will be arraigned today on the charges in the Indictment before United States Magistrate Judge Judith C. McCarthy in the White Plains federal courthouse.
LAMM, 57, of Bloomingburg, NAKDIMEN, 64, of Monsey, New York, and SMILOWITZ, 28, of Monroe, New York, are each charged with one count of conspiracy to commit an offense against the United States, in particular to corrupt the electoral process by submitting false voter registrations, buying voter registrations, and offering bribes for voter registrations and votes. The offense carries a maximum penalty of five years in prison and a $250,000 fine.
BAIRD, 60, of Sullivan County, New York, pled guilty to one count of conspiracy to submit false voter registrations, which carries a maximum sentence of five years in prison and a $250,000 fine. The defendant will be sentenced at a future date. The case is assigned to United States District Judge Cathy Seibel.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI-Hudson Valley White Collar Crime Task Force, the Sullivan County District Attorney’s Office, the Sullivan County Sherriff’s Office, the Orange County Sheriff’s Office, the Orange County District Attorney’s Office, the Internal Revenue Service, and the United States Postal Inspection Service. Mr. Bharara also thanked the Department of Justice’s Public Integrity Section, Election Crimes Branch, for its assistance in the case.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Kathryn Martin, Benjamin Allee, and Perry Carbone are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Three More Individuals Indicted for Their Roles in Capacitors Price-Fixing ConspiracyRead the Press Release
Grand Jury Has Now Indicted Total of Nine Individuals in Long-Running Conspiracy
A federal grand jury returned a second superseding indictment today charging three more executives from two different companies for conspiring to fix prices of electrolytic capacitors sold to customers in the United States and elsewhere, the Department of Justice announced today. This indictment supersedes a previous superseding indictment returned on Nov. 2, 2016, in which six individuals from four different companies were charged with price fixing.
The indictment, filed in the U.S. District Court of the Northern District of California in San Francisco, charges the following individuals for conspiring to suppress and eliminate competition by fixing the prices of electrolytic capacitors:
• Takeshi Matsuzaka, an executive of Company A, who is charged with conspiring from approximately January 2003 until January 2014;
• Kaname Takahashi, also an executive of Company A, who is charged with conspiring from approximately July 2003 until April 2013; and
• Takuo Tatai, an executive of Company D, who is charged with conspiring from approximately January 2009 until January 2012.
“The executives charged today fixed the prices of an electronic component relied upon by American consumers to power devices that are central to our day-to-day life,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “The Antitrust Division will continue to pursue executives and companies who conspire to cheat consumers.”
Electrolytic capacitors store and regulate electrical current in a variety of electronic products, including computers, televisions, car engine and airbag systems, home appliances and office equipment.
Today’s charges are the result of an ongoing federal antitrust investigation into anticompetitive conduct in the electrolytic capacitor industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. A total of five companies and nine individuals have been charged in the division’s ongoing investigation.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The charges today result from an ongoing federal antitrust investigation being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office into price fixing, bid rigging and other anticompetitive conduct in the capacitors industry. Anyone with information related to anticompetitive conduct in the capacitors industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI tip line at 415-553-7400.
Matsuzaka Second Superseding IndictmentThree Men Sentenced for Sex Trafficking of a MinorRead the Press Release
BOSTON – Three men were sentenced yesterday in U.S. District Court in Boston in connection with the sex trafficking of a minor.
“Sex traffickers routinely target the young and most vulnerable in our communities,” said Carmen M. Ortiz, U.S. Attorney for the District of Massachusetts. “I hope that these sentences send a strong message that the federal government will use all of the tools at its disposal to investigate and prosecute these predators.”
“These individuals preyed on a child with the intent of forcing the victim into a life of prostitution,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “They sought to victimize society’s most vulnerable for their own financial gain. The FBI, together with our law enforcement partners, is committed to identifying predators like these to disrupt and dismantle sex trafficking organizations impacting our communities.”
Tyrell Gorham, a/k/a Sheek, 31, of Lewiston, Maine, was sentenced by U.S. District Judge Allison D. Burroughs to 12 years in prison for one count of sex trafficking a minor. Lee Young, a/k/a Chop, 34, of Dorchester, Mass., and Chelanjei Greene, a/k/a Young, 34, of Brockton, Mass., were sentenced to eight years and six years, respectively, for one count each of conspiring to sex traffic a minor. Each defendant was also sentenced to five years of supervised release. On Sept. 21, 2016, Gorham, Young and Greene pleaded guilty.
An undercover law enforcement operation conducted in February 2015 identified a minor woman as a victim of a sex trafficking ring. Gorham recruited the minor from the Portland, Maine area, and Gorham and Young transported her and a friend to the Greater Boston area to work as prostitutes. With assistance from Greene, the minor and her friend posted an advertisement on Backpage.com, which was used to offer the sexual services of the women for a fee. The minor victim and her friend traveled to a motel in Woburn to meet a prospective client, however, the client was actually an undercover law enforcement officer.
The case was investigated by the Federal Bureau of Investigation’s Boston Child Exploitation Task Force (CETF). In addition to the FBI, significant investigative assistance was provided by; the Boston Police Department Child Abuse and Human Trafficking Units; the Arlington, Malden, Norwood, Revere, Saugus, Woburn, and Brockton Police Departments; and the Massachusetts State Police Human Trafficking Unit of the Massachusetts Attorney General’s Office.
U.S. Attorney Ortiz and FBI SAC Shaw made the announcement. Assistant U.S. Attorneys Timothy Moran and Emily Cummings of Ortiz’s Civil Rights Enforcement Team prosecuted the case.
Three Charged in Identity Theft SchemeRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced a 13 count indictment against Gregory Brown, 36, and Shakyia Bunch, 30, of Chicago, Illinois along with Jeneva Sutton, 31, of Michigan City, Indiana for wire fraud, aggravated identity theft and unauthorized access device fraud.
Brown and Bunch were charged in all 13 counts of the indictment whereas Sutton was charged with 7 counts of wire fraud, 2 counts of aggravated identity theft and 1 count of unauthorized access device fraud.
According to documents filed in this case, from April through July of 2016, Gregory Brown was an inmate at the La Porte County Jail while Shakyia Bunch was employed at a hotel in the Northern District of Illinois and Jeneva Sutton maintained a residence in the Northern District of Indiana. It is alleged that Brown proposed to other inmates in the La Porte County Jail that he would secure their release through payment of their respective bond amounts if those inmates would repay him. Bunch allegedly stole credit card account numbers from the hotel where she was employed from individuals who had provided credit card information in order to book stays at the hotel. Sutton allegedly obtained stolen credit card account numbers from Bunch. Bunch and Sutton were alleged to have used the internet to effect wire transfers of money using the stolen credit card account numbers to pay for various inmates’ bonds. Eight wire transactions were effected using four different account holders’ credit card account information. Sutton was to receive payment via money or property from inmates who had been released from the La Porte County Jail or from individuals associated with inmates who had been released or were seeking release. Through this scheme and through use of the stolen credit card account numbers, the defendants obtained a Chrysler 300 vehicle.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until, and unless, proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
This case was investigated as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; La Porte County Sheriff’s Office; and Michigan City Police Department. This case is being handled by Assistant United States Attorney Molly E. Donnelly.
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The District of South Carolina U.S. Attorney’s Office Collects $65,905,918.40 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina --- Acting U.S. Attorney Beth Drake announced today that the District of South Carolina collected $65,905,918.40 in criminal and civil actions in Fiscal Year 2016. Of this amount, $7,112,893.48 was collected in criminal actions and $58,793,024.92 as collected in civil actions.
Additionally, the District of South Carolina worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $78,957,002.59 in cases pursued jointly with these offices. Of this amount, $200.00 was collected in criminal actions and $78,956.802.59 was collected in civil actions.
Attorney General Loretta E. Lynch announced on December 14, 2016 that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year’s collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
“This office has made a substantial commitment to combating fraud,” said Acting U.S. Attorney Beth Drake. "The District of South Carolina US Attorney's Office has devoted six (6) lawyers supported by a terrific team of investigators and paralegals to pursue fraud against government agencies. As the Attorney General has noted, year in and year out, our ACE Unit diligently pursues unscrupulous individuals who seek to line their pockets with tax dollars at the expense of programs destined to support and protect the people of the United States. Whether the targeted funds are designed for Medicare, disaster relief, or a military contract, we give this work the top priority it deserves."
This past March, the District of South Carolina, in cooperation with the Civil Division’s Commercial Litigation Branch, the HHS Office of Counsel to the Inspector General and Office of Investigations, and the National Association of Medicaid Fraud Control Units entered a settlement with Respironics Inc., based in Murrysville, Pennsylvania for $34.8 million to resolve alleged False Claims Act violations for paying kickbacks in the form of free call center services to durable medical equipment (DME) suppliers that bought its masks for patients with sleep apnea.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in South Carolina, working with partner agencies and divisions, collected $2,235,503 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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Teamster Sentenced for Attempted Extortion of Reality Television Production CompanyRead the Press Release
BOSTON – A member of Teamsters Local 25 was sentenced today in U.S. District Court in Boston in connection with his attempted extortion of a reality television production company in June of 2014.
Mark Harrington, 62, of Andover, was sentenced by U.S. District Court Judge Douglas P. Woodlock to two years of probation with six months of home confinement, and ordered to pay a fine of $10,000 and restitution of $24,023. In November 2016, Harrington pleaded guilty to one count of attempted extortion.
In October 2015, Harrington was indicted along with John Fidler, Daniel Redmond, Robert Cafarelli, and Michael Ross for conspiring to extort and attempted extortion of money to be paid as wages for imposed, unwanted, and unnecessary and superfluous services from a reality television production company.
Beginning in spring 2014, a non-union production company began scouting locations to film a reality television show in Boston. A stage location was set up in Woburn, and a number of filming locations were chosen in and around the Boston area. In order to film in the City of Boston, permits must be approved by the City of Boston with the assistance of the Boston Film Bureau. In May 2014, with the necessary permits from the City of Boston, the company commenced filming at various locations in Boston. The company was scheduled to conduct further filming in the City of Boston, including at a hotel, a restaurant, and a college, in June 2014.
The company was not a signatory to any collective bargaining agreement with Local 25, and hired its own employees, including drivers, to produce and participate in the filming of the show.
On or about June 5, 2014, Redmond allegedly approached the production crew as they were filming at a Boston hotel and demanded that members of Local 25 be hired as drivers. Redmond insisted that one of the producers on set speak with Harrington, the secretary-treasurer of Local 25. Harrington advised the producer that he did not care about the company and that all he cared about was that some of his guys get hired on the show. The producer explained that all of the drivers had been hired and there was no work for Local 25 to perform. Redmond allegedly demanded to know where else the crew would be filming and threatened to shut the production down that night. During several subsequent telephone calls that same day, Harrington and another union official warned the producer that if the company did not make a deal with Local 25, they would start to follow them and picket.
On or about June 9, 2014, a representative from the City of Boston allegedly called a second Boston hotel to inform them that Local 25 was planning to picket the company’s filming at the hotel the following day. In turn, the hotel notified the company that, despite their prior agreement, it would no longer permit the filming because it did not want to be associated with a Local 25 picket. As a result, the company found a new location for filming outside the City of Boston. The City of Boston representative made similar calls to other locations the company planned to film at in June 2014.
In the early morning hours on June 10, 2014, a Local 25 official told a producer that Local 25 was aware that the company was preparing to film at a Milton restaurant, and Local 25 would be sending 50 men to picket. As a result of that conversation, the company hired a police detail for the filming. At 9:00 a.m. on June 10, 2014, defendants Harrington, Redmond, Fidler, Cafarelli and Ross showed up at the Milton restaurant. Two or three of the Local 25 defendants entered the production area and began walking in lockstep toward the doors of the restaurant where they chest-bumped and allegedly stomach-bumped production crew members in an attempt to forcibly enter the restaurant.
Throughout the morning, the Local 25 defendants allegedly continued to use and threaten to use physical violence against members of the crew and others; yelled profanities and racial and homophobic slurs at the crew and others; blocked vehicles from the entryway to the set and used actual physical violence and threats of physical violence to try and prevent people from entering the set. On one occasion, the Local 25 defendants prevented a food delivery truck from delivering food. The Local 25 defendants were also observed by the crew standing in close proximity to cars belonging to the crew, nine of which were later found to have had their tires slashed.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Cheryl Garcia, Special Agent in Charge of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigation, New York Regional Office; and Nikitas Splagounias, Assistant Special Agent in Charge of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigation, made the announcement today. Assistant U.S. Attorneys Laura J. Kaplan and Kristina E. Barclay of Ortiz’s Criminal Division are prosecuting the case.
Stilwell Man, Woman Plead Guilty to Embezzlement and Theft from Tribal OrganizationRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that MICHAEL HILARIO MARTINEZ, age 40, and JEANA MARIE MARTINEZ, age 33, of Stilwell, Oklahoma, each pled guilty to one count of EMBEZZLEMENT AND THEFT FROM INDIAN TRIBAL ORGANIZATION, in violation of Title 18, United States Code, Sections 1163 and 2, punishable by not more than 5 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that from in or about January 2012 to on or about July 3, 2014, in the Eastern District of Oklahoma, the defendants, did embezzle, steal, knowingly and willfully convert to their own use, willfully misapply, and willfully permitted to be misapplied, monies, funds, credits, assets, and property, with a value in excess of $1,000.00, which had been entrusted to the custody and care of MICHAEL HILARIO MARTINEZ as an employee of the Cherokee Nation, an Indian tribal organization.
The charges arose from an investigation by the Cherokee Nation Marshal Service and the Federal Bureau of Investigation.
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 custody pending a sentencing hearing.
Assistant United States Attorney Edward Snow represented the United States.
Statement of U.S. Attorney Preet Bharara on the Conviction of Former Rikers Island Correction Officer Brian CollRead the Press Release
“Today, a unanimous jury in Manhattan federal court affirmed that the protections of the U.S. Constitution extend into the walls of our prisons, including Rikers Island. For his brutal and heartless beating of 52-year-old Ronald Spear, a sickly Rikers inmate, and his lies to cover it up, Brian Coll now stands convicted of serious federal crimes. As the evidence at trial established, Coll killed Spear by repeatedly kicking him in the head as he lay restrained on the ground, telling him before he died not to forget who did this to him. The FBI investigators and career prosecutors on this case did not forget. And today, neither did the jury.”
Singapore Man Pleads Guilty to Plot Involving Illegal Exports of Radio Frequency Modules from the U.S. to IranRead the Press Release
Lim Yong Nam, aka Steven Lim, 42, a citizen of Singapore, pleaded guilty today to a federal charge stemming from his role in a conspiracy that allegedly caused thousands of radio frequency modules to be illegally exported from the U.S. to Iran. At least 16 of the components were later found in unexploded improvised explosive devices (IEDs) in Iraq.
The guilty plea was announced by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Channing D. Phillips of the District of Columbia, Director Sarah Saldaña of U.S. Immigration and Customs Enforcement (ICE), Executive Assistant Director Michael Steinbach of the FBI’s National Security Branch and Under Secretary Eric L. Hirschhorn of the U.S. Department of Commerce.
Lim was extradited earlier this year from Indonesia, where he had been detained since October 2014 in connection with the U.S. request for extradition. He pleaded guilty to a charge of conspiracy to defraud the U.S. by dishonest means. The charge carries a statutory maximum of five years in prison and potential financial penalties. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. Under federal sentencing guidelines, the parties have agreed that Lim faces a range of 46 to 57 months in prison and a fine of up to $100,000. Lim remains in custody pending his sentencing, which was scheduled for XX before the Honorable Emmet G. Sullivan.
Lim and others were indicted in the District of Columbia in June of 2010 on charges involving the shipment of radio frequency modules made by a Minnesota-based company. The modules have several commercial applications, including in wireless local area networks connecting printers and computers in office settings. These modules include encryption capabilities and have a range allowing them to transmit data wirelessly as far as 40 miles when configured with a high-gain antenna. These same modules also have potentially lethal applications. Notably, during 2008 and 2009, coalition forces in Iraq recovered numerous modules made by the Minnesota firm that had been utilized as part of the remote detonation system for IEDs. According to the plea documents filed today, between 2001 and 2007, IEDs were the major source of American combat casualties in Iraq.
In his guilty plea, Lim admitted that between August 2007 and February 2008, he and others caused 6,000 modules to be purchased and illegally exported from the Minnesota-based company through Singapore, and later to Iran, in five shipments, knowing that the export of U.S.-origin goods to Iran was a violation of U.S. law. In each transaction, Lim and others made misrepresentations and false statements to the Minnesota firm that Singapore was the final destination of the goods. At no point in the series of transactions did Lim or any of his co-conspirators inform the company that the modules were destined for Iran. Similarly, according to the statement of offense, Lim and others caused false documents to be filed with the U.S. government, in which they claimed that Singapore was the ultimate destination of the modules. Lim and his co-conspirators were directly aware of the restrictions on sending U.S.-origin goods to Iran.
Shortly after the modules arrived in Singapore, they were kept in storage at a freight forwarding company until being aggregated with other electronic components and shipped to Iran. There is no indication that Lim or any of his co-conspirators ever took physical possession of these modules before they reached Iran or that they were incorporated into another product before being re-exported to Iran.
According to the statement of offense, 14 of the 6,000 modules the defendants routed from Minnesota to Iran were later recovered in Iraq, where the modules were being used as part of IED remote detonation systems.
This investigation was jointly conducted by ICE Homeland Security Investigations (HSI) Special Agents in Boston and Los Angeles; FBI agents in Minneapolis; and Department of Commerce, Bureau of Industry and Security agents in Chicago and Boston. Substantial assistance was provided by the U.S. Department of Defense, U.S. Customs and Border Protection, the State Department’s Directorate of Defense Trade Controls, the Treasury Department’s Office of Foreign Assets Control, and the Office of International Affairs in the Justice Department’s Criminal Division, the Justice Department Attaché in the Philippines and the FBI and HSI Attachés in Singapore and Jakarta.
U.S. law enforcement authorities thanked the governments of Singapore and Indonesia for the substantial assistance that was provided in the investigation of this matter.
The prosecution is being handled by Assistant U.S. Attorney Ari Redbord of the District of Columbia and Trial Attorney Julie Edelstein of the National Security Division’s Counterintelligence and Export Control Section.
Singapore Man Pleads Guilty to Federal Charge in Plot Involving Exports to Iran of U.S. ComponentsRead the Press Release
WASHINGTON – Lim Yong Nam, aka Steven Lim, 42, a citizen of Singapore, pled guilty today to a federal charge stemming from his role in a conspiracy that allegedly caused thousands of radio frequency modules to be illegally exported from the United States to Iran, at least 16 of which were later found in unexploded improvised explosive devices (IEDs) in Iraq.
The guilty plea was announced by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Channing D. Phillips of the District of Columbia, Director Sarah Saldaña of U.S. Immigration and Customs Enforcement (ICE), Executive Assistant Director Michael Steinbach of the FBI’s National Security Branch, and Under Secretary of Commerce Eric L. Hirschhorn.
Lim was extradited earlier this year from Indonesia, where he had been detained since October 2014 in connection with the U.S. request for extradition. He pled guilty to a charge of conspiracy to defraud the United States by dishonest means. The charge carries a statutory maximum of five years in prison and potential financial penalties. Under federal sentencing guidelines, the parties have agreed that Lim faces a range of 46 to 57 months in prison and a fine of up to $100,000. Lim remains in custody pending his sentencing, which was scheduled for March 9, 2017, before the Honorable Emmet G. Sullivan.
Lim and others were indicted in the District of Columbia in June of 2010 on charges involving the shipment of radio frequency modules made by a Minnesota-based company. The modules have several commercial applications, including in wireless local area networks connecting printers and computers in office settings. These modules include encryption capabilities and have a range allowing them to transmit data wirelessly as far as 40 miles when configured with a high-gain antenna. These same modules also have potentially lethal applications. Notably, during 2008 and 2009, coalition forces in Iraq recovered numerous modules made by the Minnesota firm that had been utilized as part of the remote detonation system for IEDs. According to the plea documents filed today, between 2001 and 2007, IEDs were the major source of American combat casualties in Iraq.
In his guilty plea, Lim admitted that between August 2007 and February 2008, he and others caused 6,000 modules to be purchased and illegally exported from the Minnesota-based company through Singapore, and later to Iran, in five shipments, knowing that the export of U.S.-origin goods to Iran was a violation of U.S. law. In each transaction, Lim and others made misrepresentations and false statements to the Minnesota firm that Singapore was the final destination of the goods; at no point in the series of transactions did Lim or any of his co-conspirators inform the company that the modules were destined for Iran. Similarly, according to the statement of offense, Lim and others caused false documents to be filed with the U.S. government, in which they claimed that Singapore was the ultimate destination of the modules. Lim and his co-conspirators were directly aware of the restrictions on sending U.S.-origin goods to Iran.
Shortly after the modules arrived in Singapore, they were kept in storage at a freight forwarding company until being aggregated with other electronic components and shipped to Iran. There is no indication that Lim or any of his co-conspirators ever took physical possession of these modules before they reached Iran or that they were incorporated into another product before being re-exported to Iran.
According to the statement of offense, 14 of the 6,000 modules the defendants routed from Minnesota to Iran were later recovered in Iraq, where the modules were being used as part of IED remote detonation systems.
This investigation was jointly conducted by ICE Homeland Security Investigations (HSI) special agents in Boston and Los Angeles; FBI agents in Minneapolis, and Department of Commerce, Bureau of Industry and Security agents in Chicago and Boston. Substantial assistance was provided by the U.S. Department of Defense, U.S. Customs and Border Protection, the State Department’s Directorate of Defense Trade Controls, the Treasury Department’s Office of Foreign Assets Control, and the Office of International Affairs in the Justice Department’s Criminal Division, particularly the Justice Department Attaché in the Philippines, as well as the FBI and HSI Attachés in Singapore and Jakarta.
U.S. law enforcement authorities thanked the governments of Singapore and Indonesia for the substantial assistance that was provided in the investigation of this matter.
The prosecution is being handled by Assistant U.S. Attorney Ari Redbord of the District of Columbia and Trial Attorney Julie Edelstein of the National Security Division’s Counterintelligence and Export Control Section.
Shiprock Man Sentenced to Prison for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Henderson Shorty, 53, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced this morning in federal court in Albuquerque, N.M., to 30 months in prison followed by five years of supervised release for his conviction on an abusive sexual contact charge. Shorty also will be required to register as a sex offender after he completes his prison sentence.
Shorty was arrested in Feb. 2016, on an indictment charging him with abusive sexual contact. The indictment charged Shorty with sexually abusing a child under the age of 12 years on Jan. 24, 2013, in Indian Country in McKinley County, N.M.
On July 1, 2016, Shorty pled guilty to an abusive sexual contact charge in a felony information. In entering the guilty plea, Shorty admitted that from Jan. 1, 2013 through March 31, 2013, he had sexual contact with a child under the age of 12. Shorty admitted committing the crime on the Navajo Indian Reservation.
This case was investigated by the Farmington office of the FBI. The case was prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Shillington Man Charged with Aggravated Identity TheftRead the Press Release
Mark Vega, 34, of Shillington, Pennsylvania was charged today by Indictment1 with Mail Fraud and Aggravated Identity Theft, announced United States Attorney Zane David Memeger. According to the indictment, Vega obtained stolen identities and used the names, dates of birth, and social security numbers of these victims to apply for credit cards with Discover Financial Services and American Express Company. According to the indictment, Vega also had himself added as an authorized user on these credit card accounts.
If convicted the defendant faces a maximum possible sentence of 84 years in prison, with a two year mandatory minimum, a $1,500,000 fine, three years of supervised release, and a $600 special assesment
The case was investigated by the United States Postal Inspection Service, the Internal Revenue Service-Criminal Investigation Division, the Federal Bureau of Investigation, and the Cumru Township Police Department and is being prosecuted by Assistant United States Attorney David J. Ignall.
1 An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Sex Offender Indicted for Failure to RegisterRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Joseph Wayne Acevedo, age 31, of Harrisburg, Pennsylvania, was indicted on December 14, 2016, by a federal grand jury for failure to register as a sex offender.
According to United States Attorney Bruce D. Brandler, Acevedo was convicted of the offense of indecent assault on a six-year-old child in York County in 2006. That conviction required Acevedo to register as a sex offender in any place he lived, worked, or attended school, and to update his registration on a quarterly basis. Acevedo is charged with failing to update his registration as a convicted sex offender as required by law.
The case was investigated by the Pennsylvania State Police and the United States Marshals Service. Prosecution is assigned to Assistant U.S. Attorney James T. Clancy
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Salem Man Indicted on Federal Gun ChargesRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
Columbia, South Carolina – Acting United States Attorney, Beth Drake, announced today that Justin David Crenshaw, age 31, of Salem, was indicted earlier this week for illegally possessing ammunition as a felon.
On December 13, 2016, a federal grand jury returned an indictment alleging that on October 25, 2016, in the District of South Carolina, the Defendant, Justin David Crenshaw, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly did possess in and affecting commerce, ammunition, that is, 9mm ammunition, which had been shipped and transported in interstate and foreign commerce; in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2), and 924(e).
Prior to his indictment, Crenshaw was arrested on federal arrest warrants in early December for the offense and has remained in custody, detained without bond, since that date. The investigation was conducted by the Oconee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case has been assigned to Assistant United States Attorney Lance Crick of the Greenville office for prosecution.
The Acting United States Attorney stated that all charges in this indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
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Real Estate Brokers and Client Charged with Defrauding Banks in ‘Shotgun’ Loan SchemeRead the Press Release
NEWARK, N.J. – Two real estate brokers and a client were arrested today and charged in connection with a scheme to use bogus information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit, a practice known as “shotgunning,” U.S. Attorney Paul J. Fishman announced.
Simon Curanaj (a/k/a Simone Curanaj, Simon Curanovic, and Simone Curanay) 62, of Yonkers, New York; Michael Arroyo, 58, of Bronx, New York; and Rafael Popoteur, 65, of Ridgefield Park, New Jersey, are charged by complaint with one count each of conspiracy to commit bank fraud. They are expected to appear later today before U.S. Magistrate Judge Steven C. Mannion.
According to the complaint:
Curanaj and Arroyo are real estate brokers and Popoteur was one of Curanaj’s clients. From 2012 through January 2014, the three defendants and others allegedly conspired to fraudulently obtain multiple home equity lines of credit (HELOCs) from banks on multiple residential properties located in New Jersey and New York.
To get the banks to extend lines of credit they would not have otherwise approved, Curanaj and his conspirators allegedly used the names and personal information of homeowners or straw borrowers, sometimes without their knowledge, to apply for the HELOCs. They made various false representations on loan documents. They then applied for several home equity lines of credit with multiple banks at the same time using the same residential property as collateral. They hid from the lenders the fact that the properties offered as collateral were either already subject to senior liens that had not yet been recorded, or that the same property was offered as collateral for a line of credit from another lender.
The two representative HELOC shotgun schemes highlighted in the complaint caused a loss of more than $1 million dollars. After receiving the fraudulently obtained home equity lines of credit, Curanaj and his conspirators shared in the illicit proceeds obtained from the banks.
The conspiracy to commit bank fraud count carries a maximum potential penalty of 30 years in prison, a fine of $1 million or twice the gross pecuniary gain to the defendants or twice the gross pecuniary loss to others, whichever is greater.
U.S. Attorney Fishman credited special agents of the U.S. Federal Finance Housing Agency, Office of Inspector General, under the direction of Special Agent in Charge Steven Perez; and special agents of the FBI, under the direction Special Agent in Charge Timothy Gallagher of the Newark office, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney’s General Crimes Unit in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA, Office of the Inspector General.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Public and Environment to Benefit from $50 Million Proposed Settlement for Natural Resources Harmed by Virginia Dupont FacilityRead the Press Release
The Departments of Justice and the Interior joined with the Commonwealth of Virginia today to announce a proposed settlement with DuPont valued at approximately $50 million to resolve claims stemming from the release of mercury from the former E.I. du Pont de Nemours and Company (DuPont) facility in Waynesboro, Virginia. Over 100 miles of river and associated floodplain have been contaminated by mercury in the South River and South Fork Shenandoah River watershed.
In addition to a cash payment of just over $42 million, DuPont will fund the design and implementation of significant renovations at the Front Royal Fish Hatchery, estimated to cost up to $10 million. The settlement terms are outlined in a proposed consent decree filed in federal court in Harrisonburg, Virginia, today.
DuPont will provide the funds to government natural resource trustees, who will oversee the implementation of projects compensating the public for the natural resource injuries and associated losses in ecological and recreational services, such as fishing access.
The trustees, through U.S. Fish and Wildlife Service and Commonwealth of Virginia, invite feedback on actions to restore the river and wildlife habitat and improve public lands and recreational resources. A draft restoration plan and environmental assessment (RP/EA) was also released today for a 45-day public comment period. The plan results from stakeholder meetings beginning in 2008 to determine how best to compensate the public for the injured natural resources and their uses.
“This remarkable settlement will help restore the precious natural resources of the South Fork Shenandoah watershed, bringing lasting benefits for future generations of Virginians to enjoy,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “This joint action with the Department of the Interior and the Commonwealth of Virginia is yet another testament to the value and effectiveness of cooperative federalism in action and I am grateful to all of our partners for the efforts that brought us to this resolution.”
“Today’s settlement, the largest of its kind in Virginia history, is the culmination of a coordinated effort by countless partners at both the state and federal level,” said Governor Terry McAuliffe. “Thanks to their hard work, Virginians and the environment will benefit from unprecedented investments in land conservation and habitat restoration. I applaud and appreciate the meticulous monitoring by our state agencies, the thorough analysis of the scientific advisory committee, and DuPont’s willingness to come to the table and make this happen.”
Since 2005, DuPont and the trustees have worked cooperatively to assess and identify potential restoration projects to benefit natural resources affected by mercury releases from the DuPont facility. Over 100 miles of river and thousands of acres of floodplain and riparian habitat were impacted from the mercury. Some of the assessed and impacted natural resources include fish, migratory songbirds, reptiles, amphibians and mammals. Recreational fishing opportunities were also impacted from the mercury.
“Years of input from community leaders, and partnership with the Commonwealth of Virginia, have led us to propose over $50 million worth of restoration that will be at no cost to taxpayers,” said Northeast Regional Director Wendi Weber of the U.S. Fish and Wildlife Service. “Fish, wildlife, land and waters, as well as the city of Waynesboro and other communities affected by decades of mercury release, will benefit from natural resource projects improving water and stream quality, protecting and restoring wildlife habitat and increasing river access for recreation.”
“Clean air, water and land are environmental priorities and economic assets that make Virginia a great place to live, work and raise a family,” said Attorney General Mark Herring of the Commonwealth of Virginia. “We have an obligation to protect these assets for future generations and this record-setting settlement shows that we take our responsibilities seriously. This settlement will allow us to protect and enhance lands throughout the Shenandoah Valley and improve the quality of water for wildlife, anglers, paddlers and others who use these waterways for recreation. I really appreciate the hard work that my team, Governor Terry McAuliffe, Secretary Molly Ward, DEQ and our federal partners put into making this historic settlement a reality.”
Mercury released into the South River from the DuPont facility in the 1930s and 1940s continues to persist in the environment. Monitoring data collected over the last 20 years indicates that mercury levels remain stable, with no clear decreases over time. Federal law seeks to make the environment and public whole for injuries to natural resources and ecological and recreational services resulting from a release of hazardous substances to the environment.
The trustees evaluated a range of restoration alternatives and have ultimately proposed a preferred restoration alternative that includes projects that best meet the requirement that restoration efforts specifically focus on the injured resources. Proposed projects include:
- land protection, property acquisition, improvements to recreational opportunities and wildlife habitat restoration
- improvements to water quality and fish habitat through activities such as streamside plantings and erosion control, as well as stormwater pond improvements
- mussel propagation and restoration to improve water quality, stabilize sediment and enhance stream bottom structure
- Front Royal Fish Hatchery renovations to improve production of warm-water fish such as smallmouth bass
- recreational fishing access creation or improvement
- migratory songbird habitat restoration and protection
The draft RP/EA outlines these proposed projects, as well as other restoration alternatives and an evaluation of injuries to the natural resources. It is available online, along with other information on the process, at www.fws.gov/northeast/virginiafield/news/news.html.
The trustees will host a public meeting to summarize key components of the draft restoration plan and answer questions. The public meeting will be held on Jan. 10, 2017, at the Waynesboro Public Library lower level meeting room from 6:00 PM to 8:30 PM. The library is located at 600 S. Wayne Avenue, Waynesboro, Virginia, 22980. Following the comment period, the trustees will review and consider comments and prepare the final RP/EA. Ultimately, the trustees will work with project partners such as local, state, and federal agencies; nonprofit organizations; and landowners to implement the projects.
Today’s settlement, lodged with the U.S. District Court for the Western District of Virginia, is subject to a 45-day public comment period to begin following notification in the Federal Register. The settlement is subject to final approval by the court. To view the consent decree, visit the department’s website: www.justice.gov/enrd/consent-decrees.
Prince George’s County Rapper Pleads Guilty to Federal Gun and Drug OffensesRead the Press Release
Greenbelt, Maryland – Charles Ulysses Bowman-Bey, a/k/a Big Flock, age 24, of Upper Marlboro, Maryland, pleaded guilty today to being a felon in possession of a firearm and to possession with intent to distribute Alprazolam, a controlled substance.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Henry P. Stawinski of the Prince George’s County Police Department.
According to his plea agreement, on October 19, 2016, law enforcement executed a search warrant at Bowman-Bey’s residence. During the search of Bowman-Bey’s bedroom, law enforcement officers found, among other things, firearms, ammunition, narcotics, and narcotics paraphernalia belonging to Bowman-Bey, including: a loaded 5.7x28mm semiautomatic handgun, equipped with a laser sight; a .40 caliber semiautomatic handgun; a .380 caliber semiautomatic handgun; rounds of ammunition of various calibers; a loaded drum-style extended magazine; a .40 caliber extended magazine; $5,561 in cash, which were drug proceeds; approximately 94 tablets of Alprazolam, as well as a quantity of ground-up Alprazolam, which constitutes 95 total units of Alprazolam; and a digital scale, used to weigh narcotics.
Bowman-Bey possessed the firearms in furtherance of his drug trafficking, to protect, among other things, his drugs and his drug-trafficking proceeds. As a result of a previous felony conviction, federal law prohibited Bowman-Bey from possessing the guns and ammunition.
Bowman-Bey faces a maximum sentence of 10 years in prison for illegal possession of a firearm by a previously convicted felon, and a maximum of five years in prison for possession with intent to distribute Alprazolam. U.S. District Judge Theodore D. Chuang has scheduled sentencing for March 30, 2017 at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Michael T. Packard and Thomas J. Sullivan, who are prosecuting the case.
Northern District of California U.S. Attorney’s Office Collects $46,085,348.08 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
SAN FRANCISCO – U.S. Attorney Brian J. Stretch announced today that the Northern District of California collected $46,085,348.08 in criminal and civil actions in Fiscal Year 2016. Of this amount, $29,720,757.86 was collected in criminal actions and $16,364,590.22 was collected in civil actions.
Additionally, the Northern District of California worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $3,895,072,010.24 in cases pursued jointly with these offices. Of this amount, $3,895,067,047.02 was collected in civil actions.
Attorney General Loretta E. Lynch announced on December 14, 2016, that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
“The recovery of tens of millions of dollars from criminal and civil defendants by this Office is a testament to the hard work of our Financial Litigation Unit,” said U.S. Attorney Brian J. Stretch. "Our Office will continue to work relentlessly to recoup victims' losses and to disgorge profits from those who enrich themselves through crime and other violations of federal law.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
North Miami Resident Sentenced for Possessing 2,434 Stolen IdentitiesRead the Press Release
A North Miami resident was sentenced to 47 months in prison, to be followed by three years of supervised release, for possessing 2,434 stolen identities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and William Hernandez, Chief, North Miami Beach Police Department (NMBPD), made the announcement.
Camelin Junior Desrosiers, 28, previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, on February 25, 2015, law enforcement initiated a traffic stop on a rental car leased by Desrosiers. The defendant, the driver, and a passenger were ordered to exit the vehicle. Because the vehicle contained after-market tinted windows, and because the tinted windows violated the rental car contract, law enforcement initiated a tow of the vehicle to return it to the rental car company.
An inventory search of the car was conducted prior to it being towed. In the trunk of the car, law enforcement found a laptop computer owned by Desrosiers. A forensic analysis of the computer revealed 2,434 pieces of personal identifying information (PII), including names, dates of birth and social security numbers.
Law enforcement spoke with one individual whose name, date of birth, and social security number were in the computer, and confirmed that he/she did not authorize Desrosiers to be in possession of the PII. Desrosiers knew that the names, dates of birth, and social security numbers belonged to real persons.
Mr. Ferrer commended the investigative efforts of ICE-HSI, DOL-OIG, IRS-CI, and the NMBPD. The case was prosecuted by Assistant U.S. Attorney Joshua S. Rothstein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
North Alabama U.S. Attorney’s Office Collects $5.09 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
BIRMINGHAM -- U.S. Attorney Joyce White Vance announced today that the Northern District of Alabama collected $5.09 million in criminal and civil actions in Fiscal Year 2016. Of this amount, about $3.7 million was collected in criminal actions and $1.4 million in civil actions.
Additionally, the U.S. Attorney’s Office for north Alabama worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1.1 million in civil actions pursued jointly.
“Seeking justice is the primary objective of the U.S. Attorney's Office," Vance said. "The people in my office pursue that goal every day, working to put criminals behind bars and to ensure that money taken through wrongful action is returned to the federal government and to victims of crime. In addition, we are dedicated to being good stewards of the public trust and the funding our office is given to do our work.”
Attorney General Loretta E. Lynch announced on Wednesday that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30. The FY 2016 collections represent more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ Offices and the main litigating divisions of the Justice Department combined for the fiscal year.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” Lynch said. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
One of the largest single collections by the Northern District of Alabama U.S. Attorney’s Office this past year was $1.5 million received as part of the $5.9 million court-ordered restitution in the case of William Maurice Campbell Jr. and three co-defendants. Campbell, at the time of the crime, was state director of a college consortium of business development centers. A federal jury convicted him in 2011 on 96 counts related to his scheme to defraud the State of Alabama of more than $7 million. In 2012, a federal judge sentenced Campbell to more than 15 years in prison and ordered the restitution. Campbell appealed the conviction and sentence, which were upheld by the 11th U.S. Circuit Court of Appeals in September 2014.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s Office for north Alabama, working with partner agencies and divisions, collected $934,607 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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Niagara Falls Police Officer, Two Others Charged with Selling CocaineRead 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 Raymond C. Hopson, Lindsay R. Carrier, Jr., and Stephanie A. Costanzo, a Niagara Falls Police Officer, who has since resigned, were charged by criminal complaint with conspiracy to possess with intent to distribute, and to distribute cocaine and maintaining a premises for manufacturing, distributing and using cocaine, and marijuana. The charges carry a mandatory minimum penalty of five years in prison and a maximum of 40 years.
Assistant U.S. Attorney Joel Violanti, who is handling the case, stated that according to the complaint, the defendants were involved in a cocaine conspiracy between July 27, 2016, and November 9, 2016. During that time, defendant Hopson sold cocaine to an undercover police officer on multiple occasions.
On November 9, 2016, a search warrant was executed at 2930 Grand Avenue in Niagara Falls, the residence of defendant Hopson and Stephanie Costanzo. Costanzo was at home during the search. During the search, officers observed a bedroom on the second floor that was locked. Costanzo was asked why the bedroom was locked, and she gave officers a key for the door. Inside the bedroom, officers found a plastic sandwich bag containing a gram of marijuana, a second plastic bag containing over five grams of cocaine, a small black digital scale next to plastic bags, an open container of creatine which is used as a cutting agent for cocaine, and cash. In the master bedroom, where Costanzo and Hopson slept, officers found a small orange plastic container containing more than five grams of suspected cocaine, scattered marijuana, a marijuana grinder shaped like a pistol cylinder, several sandwich bags, and an empty gun magazine.
Also on November 9, 2016, officers searched 2407 Willow Avenue in Niagara Falls, the residence of Lindsay’s Carrier’s mother. During that search, police found cash, a black digital scale, four clear plastic bags containing nearly 80 grams of crack cocaine, two clear plastic bags containing nearly 61 grams of cocaine, a clear bag containing hydrocodone pills, and two clear glass jars containing 10 grams of marijuana.
The defendants made an initial appearance before U.S. Magistrate Judge Michael Roemer on December 13, 2016. Costanzo was released, Hopson and Carrier remain in custody.
“The vast majority of those of us involved in law enforcement take seriously our obligation to uphold our oath of office,” said Acting U.S. Attorney Kennedy. “This case shows how those that do will take action to remove those that don’t.”
DEA Special Agent-in-Charge James J. Hunt stated, “There is no excuse for a law enforcement officer to tarnish their badge in exchange for profit. While the good men and women in law enforcement conducted this investigation with integrity and diligence, they dismantled a major cocaine trafficking organization in Niagara County and arrested a dirty cop. By being a watchdog in our communities, we will continue to weed out drug trafficking organizations and those involved, at all levels.”
The complaint is the result of an investigation by the Niagara Falls Police department, under the direction of Superintendent Bryan Dalporto, and the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
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.
Niagara Falls Man Pleads Guilty to Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - Acting U.S. Attorney James P. Kennedy, Jr. announced today that Daniel Krull, 44, of Niagara Falls, NY, pleaded guilty, before U.S. District Judge Lawrence J. Vilardo, to distribution of child pornography following a prior conviction under New York law for possessing a sexual performance by a child. The charge carries a mandatory minimum penalty of 15 years and maximum of 40 years in prison, and a fine of $250,000.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that the between November 6, 2015, and November 8, 2015, the defendant, using the Facebook profile “Danny Blaze,” distributed 11 images of child pornography to other individuals via a private group on Facebook. As a result, Facebook shut down the private group used by Krull and submitted a CyberTipline report to the National Center for Missing and Exploited Children on February 28, 2016.
On August 23, 2016, the defendant’s cellular telephone was seized by the Niagara County Probation Department. A forensic examination revealed approximately 2,026 images and 20 videos of child pornography depicting minors engaging in sexually explicit conduct. Some of the images depicted prepubescent minors or minors less than 12 years of age and depictions of violence. Krull also had sexual contact with a 10-year old girl on approximately five occasions.
In March 2007, the defendant was convicted in state court of possessing a sexual performance by a child less than 16 years of age.
The plea is the result of an investigation by Special Agents of the Federal Bureau of Investigation at the direction of Adam S. Cohen, Special Agent-In-Charge, and Probation Officers of the Niagara County Probation Department.
Sentencing is scheduled for March 23, 2017, at 10:00 a.m. before Judge Vilardo.
News AdvisoryRead the Press Release
ALBANY, NEW YORK – United States Attorney Richard S. Hartunian, joined by FBI Special Agent in Charge Andrew W. Vale, will hold a news conference at noon on December 19, 2016 to discuss the sentencing of Glendon Scott Crawford.
Crawford was convicted in August 2015 of attempting to acquire and use a radiological dispersal device, conspiring to use a weapon of mass destruction, and distributing information relating to weapons of mass destruction. He is scheduled to be sentenced on December 19 at 10:30 a.m. by Senior United States District Judge Gary L. Sharpe.
Members of the media will be permitted to bring cameras and phones into the U.S. Attorney’s Office; cameras and phones will not be permitted in the courtroom.
What: News Conference to Discuss the Sentencing of Glendon Scott Crawford
When: Monday, December 19, 2016 @ Noon
Where: U.S. Attorney’s Office, 445 Broadway, Room 218, Albany