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Wednesday 26 October 2016
Second Individual Pleads Guilty to Participating in Sophisticated International Cellphone Fraud SchemeRead the Press Release
A West Palm Beach, Florida, resident pleaded guilty today to multiple criminal charges in connection with a sophisticated global cell phone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Jose Santana, aka Octavio Perez, 53, pleaded guilty to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments and the use or possession of hardware or software configured to obtain telecommunications services; one count of wire fraud and one count of aggravated identity theft. Sentencing will be scheduled for a later date before Senior U.S. District Judge Daniel T.K. Hurley of the Southern District of Florida.
According to the plea agreement, Santana and his co-conspirators participated in a scheme to steal access to and fraudulently open new cellphone accounts using the personal information of individuals around the United States.
Santana admitted that his role in the scheme included operating a “call site” from his residence in West Palm Beach using the alias Octavio Perez. He admitted that he would receive telecommunication identifying information associated with customers’ accounts from his co-conspirators and use that data, as well as other software and hardware, to reprogram cellphones that he controlled. According to the plea agreement, Santana’s co-conspirators would then transmit thousands of international calls over the internet to Santana’s residence, where he would route them through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the customers’ compromised accounts, he admitted.
In addition, Santana admitted that from December 2010 through October 2011, co-conspirators sent him more than 1,000 emails containing telecommunications identifying numbers associated with cellphone account holders around the United States. According to the plea agreement, Santana was personally responsible for than $150,000 in loss resulting from the scheme.
Santana is the second defendant to plead guilty in the case. On Aug. 29, 2016, Edwin Fana pleaded guilty to similar charges in this matter, and is scheduled to be sentenced on Dec. 22, 2016.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the bureau’s ongoing effort to combat large-scale telecommunications fraud. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.
Scranton Man Indicted for Sex Trafficking, Drug Trafficking, and Attempted Witness TamperingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that a federal grand jury in Scranton returned an indictment on October 25, 2016, charging a Scranton man with sex trafficking by force, fraud, and coercion, drug trafficking, and attempting to tamper with a witness.
According to United States Attorney Bruce D. Brandler, the indictment alleges that Mark Cook, age 38, who used the street name of “Lucky,” conspired with others to commit sex trafficking by force, fraud or coercion involving three female victims; distributed heroin, cocaine, and “molly”; and attempted to tamper with a witness. It is alleged that all of the offenses occurred between April 2015 and October 2016.
According to the indictment, Cook used a website to post advertisements for prostitution, rented hotel rooms in Scranton, Wilkes-Barre, and the Poconos for prostitution purposes, and used intimidation, threats, physical assaults, and illegal drugs to further the prostitution business.
The charges against Cook resulted from an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and Scranton Police. Assistant United States Attorney Francis P. Sempa is prosecuting the case.
The four sex trafficking offenses each carry a mandatory minimum sentence of 15 years in prison and a potential maximum sentence of life in prison. The drug charge and attempted witness tampering charge each carry a potential maximum sentence of 20 years in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative
launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life in prison, 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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San Angelo Man Who Used His Residence as a Multi-Pound Methamphetamine Stash Site Remains in Federal CustodyRead the Press Release
LUBBOCK, Texas — Benny T. Martinez, 37, of San Angelo, Texas, made his initial appearance today before U.S. Magistrate Judge E. Scott Frost on a complaint, unsealed today, charging possession with intent to distribute 500 grams or more of methamphetamine, announced U.S. Attorney John Parker of the Northern District of Texas.
Judge Frost ordered that Martinez remain in federal custody. A preliminary hearing is set for November 9, 2016.
The investigation began when the Texas Department of Public Safety (DPS) received information that Martinez resided at a location that was being used as a multi-pound methamphetamine stash site, and that Martinez was responsible for the distribution of multiple pounds of methamphetamine, per month, throughout the San Angelo area.
A search warrant was executed at Martinez’s residence on Wilma Lane on October 21, 2016. Martinez was located exiting the west bedroom of the residence. The search of the residence revealed 2,188 gross grams of methamphetamine in the ceiling of the pantry, as well as two .22 caliber rifles, approximately $13,700 in cash, a vacuum sealer and food saver bags, a digital scale, rolls of plastic, and adulterants consistent with those used to dilute controlled substances. The search yielded an additional 6,279 gross grams of methamphetamine buried on the north side of an outbuilding, in a small garden.
A federal criminal complaint is a written statement of the essential facts of the offense charged, and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The U.S. Attorney’s office has 30 days to present the matter to a grand jury for indictment. The penalty for the charged offense is not less than 10 years or up to life in federal prison and a $10 million fine.
The matter is being investigated by Texas DPS, the San Angelo Police Department, the Drug Enforcement Administration, and the Tom Green County Sheriff’s Office. Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
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Sallisaw Man Sentenced to 13 Months for Firearms TheftRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that GREGORY McINTYRE, age 19, of Sallisaw, Oklahoma, was sentenced to 13 months imprisonment for STEALING FIREARMS FROM A FEDERAL FIREARMS LICENSED DEALER, in violation of Title 18, United States Code, Sections 924(m) and 2.
The Indictment alleged that from on or about August 29, 2015, in the Eastern District of Oklahoma, McINTYRE did knowingly steal from Gems Gun & Pawn, a federal licensed firearms dealer, all of which had been shipped and transported in interstate commerce either before or after being stolen.
The charges arose from an investigation by the Sallisaw Police Department and the Bureau of Alcohol, Tobacco and Firearms.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshals Service pending transportation to the designated federal facility at which he will serve his nonparoleable sentence.
Assistant United States Attorney Timothy Hammer represented the United States.
Readout of Attorney General Loretta E. Lynch Meeting with Turkish Minister of Justice Bekir BozdağRead the Press Release
Attorney General Loretta E. Lynch and Turkish Minister of Justice Bekir Bozdağ met today to discuss law enforcement and counterterrorism cooperation between the United States and Turkey, including cooperation on extradition. In particular, the Attorney General and the Minister of Justice discussed that, pursuant to the U.S./Turkey Extradition Treaty, in both countries extraditions are subject to the judicial process, and accordingly must meet the evidentiary standards of the requested country. The Attorney General and the Minister of Justice both pledged that their departments will continue their ongoing close and full cooperation.
Prison inmate indicted for threatening federal judgesRead the Press Release
A five-count Indictment charging Joseph A. Huber, 47, formerly of Cleveland, with threatening to kill two federal judges and to blow up the federal buildings they respectively preside in, said U.S. Attorney Carole S. Rendon and U.S. Marshal Peter J. Elliott.
The indictment alleges that on September 26, 2016, Huber wrote a letter to Cleveland-based U.S. District Court Judge Christopher A. Boyko and threatened to kill him and members of his family. In that same letter, Huber additionally threatened to blow up the “fancy federal building” where Judge Boyko presides and kill a federal prosecutor that previously convicted Huber in 2014.
The Indictment next alleges that on September 26, 2016, Huber wrote a letter to Akron-based U.S. Magistrate Judge Kathleen B. Burke and threatened to kill her for dismissing a civil suit Huber had previously filed. Like the letter to Judge Boyko, Huber threatened to blow up the federal courthouse where Magistrate Judge Burke presides.
Finally, the Indictment alleges that on October 6, 2016, Huber wrote another letter to Magistrate Judge Burke and threatened to kill her.
If convicted, the sentence in this case will be determined by the court after consideration of the federal sentencing guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Benedict S. Gullo. The case was investigated by the United States Marshal’s Service—Office of Protective Intelligence.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Press Release by United States Attorney Relating to November 2016 ElectionsRead the Press Release
United States Attorney Alicia A.G. Limtiaco, Districts of Guam and the Northern Mariana Islands (NMI) announced today that Assistant United States Attorney (AUSA) Marivic David will lead the efforts of her office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016 general elections. AUSA David has been appointed to serve as the District Election Officer (DEO) for the District of Guam and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Limtiaco said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Limtiaco stated that AUSA/DEO Marivic David will be on duty while the polls are open. She can be reached by the public at the following telephone number: 671-479-4120.
In addition, the FBI will have Special Agents available in each Field Office and Resident Agency throughout the country to receive allegations of election fraud and other election abuses on election day. The FBI can be reached by the public by calling 671-688-0373.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Limtiaco said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Press Release by United States Attorney Relating to November 2016 ElectionsRead the Press Release
United States Attorney Deborah R. Gilg announced today that Assistant United States Attorney (AUSA) Laurie Kelly will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Kelly has been appointed to serve as the District Election Officer (DEO) for the District of Nebraska, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Gilg said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. I have every confidence in the integrity of our election process in Nebraska. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Gilg stated that AUSA/DEO Kelly will be on duty in this District while the polls are open. She can be reached by the public at the following telephone number: (402) 661-3700.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (402) 493-8688.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Gilg said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Presque Isle Man Sentenced to Four Years for Bath Salts Distribution ConspiracyRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Andrew Grivois, 32, of Presque Isle, Maine, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to four years in prison and three years of supervised release for conspiring to distribute bath salts. The defendant pled guilty to the charge on March 3, 2016.
According to court records, between about June 2012 and June 2014, Grivois conspired with others in Aroostook County to obtain and distribute bath salts. On multiple occasions, Grivois ordered bath salts over the internet from China for personal use and to sell to other conspirators.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency with assistance from the Aroostook County Sheriff’s Department and the U.S. Postal Inspection Service.
Pennsylvania Man Sentenced Today to 18 Months in Federal Prison for Hacking Apple and Google E-Mail Accounts Belonging to More Than 100 People, Including Many CelebritiesRead the Press Release
LOS ANGELES – A Pennsylvania man was sentenced today on felony computer hacking charges related to his illegal access of over 100 Apple and Google e-mail accounts, including those belonging to members of the entertainment industry in Los Angeles.
Ryan Collins, 36, of Lancaster, Pennsylvania, was sentenced in United States District Court in Harrisburg, Pennsylvania to 18 months in federal prison for a felony violation of the Computer Fraud and Abuse Act. He was taken into custody immediately after sentencing.
Collins pled guilty in May to one count of unauthorized access to a protected computer to obtain information. Collins was originally charged in Los Angeles, but the parties agreed to transfer the case to Harrisburg in the Middle District of Pennsylvania, near Collins’ home, for the entry of his guilty plea and sentencing.
The case against Collins stems from the investigation into the leaks of photographs of numerous female celebrities in September 2014, known as “Celebgate.” Investigators have not uncovered any evidence linking Collins to the actual leaks or that Collins shared or uploaded the information he obtained, however.
“Hackers violate federal law whenever they access private information stored online and in digital devices,” said Eileen M. Decker, United States Attorney for the Central District of California. “Today people store important private information online and in their digital devices, which is why my office is deeply committed to holding hackers accountable, even when they do not sell or distribute the stolen data.”
From November 2012 until the beginning of September 2014, Collins engaged in a sophisticated phishing scheme to obtain usernames and passwords for his victims. He sent e-mails to victims that appeared to be from Apple or Google and asked victims to provide their usernames and passwords.
When the victims responded, Collins then had access to the victims’ e-mail accounts. After illegally accessing the e-mail accounts, Collins obtained personal information including nude photographs and videos. In some instances, Collins would use a software program to download the entire contents of the victims’ Apple iCloud backups. In addition, Collins ran a modeling scam in which he tricked his victims into sending him nude photographs.
Investigators identified over 600 victims, many of whom were members of the entertainment industry in Los Angeles. By illegally accessing the e-mail accounts, Collins accessed at least 50 iCloud accounts and 72 Gmail accounts, many of which belonged to female celebrities.
"The defendant intruded into the online accounts of hundreds of victims and in doing so, intruded upon their lives, causing lasting distress," said Deirdre Fike, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "The prison sentence received by Mr. Collins is proof that hacking into the accounts of others and stealing private information or images is a crime with serious consequences."
The case against Ryan Collins was investigated by FBI agents based in Los Angeles, and the plea agreement was negotiated by Assistant United States Attorneys Ryan White and Vicki Chou in the United States Attorney’s Office in Los Angeles. The United States Attorney’s Office for the Middle District of Pennsylvania assisted in the prosecution by handling the guilty plea and sentencing.
Over 20 Individuals Indicted on Heroin Trafficking ChargesRead the Press Release
Concord, New Hampshire – United States Attorney Emily Gray Rice and Michael J. Ferguson, the Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, announced today that over 20 individuals recently were indicted in federal court in Concord in connection with their participation in heroin trafficking activities.
On October 5, 2016, the following individuals were charged by indictment with participating in a conspiracy that distributed over one kilogram of heroin:
- Alberto Guerrero Marte, 33, of Lowell, Mass.;
- Santos Guerrero Morillo, 36, of the Dominican Republic;
- Michell DeJesus, 36, of Lowell, Mass.;
- FNU LNU (FIRST NAME UNKNOWN LAST NAME UNKNOWN), a/k/a Luis Rodriguez Lugo, a/k/a Boss, of Lawrence, Mass.;
- FNU LNU, a/k/a Maribel Santiago-Ramos, a/k/a La Cuna, a/k/a Miguelina, of Lawrence, Mass.;
- Allison DeJesus, 18, of Lawrence, Mass.;
- Jonaly DeJesus, 21, of Lawrence, Mass.;
- Allan Raymond Pimentel, 20, of Lawrence, Mass.;
- Santo Rodolfo Garcia Mendez, 32, of Lawrence, Mass.;
- Wilkin Andre Beltre Arias, 38, of Lawrence, Mass.;
- Heibrahim DelValle Baez, 32, of Salem, Mass.;
- Alfredo Gonzalez, 49, of Manchester, NH;
- Querzon Baez, 34, of Lawrence, Mass.;
- Pedro Carlos Vicente Guerrero a/k/a Omar Camacho, 47, of Lawrence, Mass.;
- FNU LNU, a/k/a Tony, a/k/a Edward Garcia, a/k/a Eric Guerrero, 30, of Lawrence, Mass.; and
- FNU LNU, a/k/a Jose Pimentel, a/k/a Todolindo, a/k/a El Lindon, a/k/a Lindy, 25, of Lawrence, Mass.
On the same day, a second related indictment charged the following individuals with conspiring to distribute heroin:
- Ramon Rodriguez, 70, of Methuen, Mass.;
- Amy Tremblay, 35, of Haverhill, Mass.;
- Judith Ardolino, 53, of Haverhill, Mass.;
- Mary Levis, 59, of Haverhill, Mass.;
- Gayle McNamara, 55, of Lawrence, Mass.;
- Kevin Roche, 49, of Haverhill, Mass.;
- Jessica Sederquest, 37, of Manchester, NH;
- Eric Sederquest, 35, of Manchester, NH; and
- Stephen J. Tolmie, 53, of Raymond, NH.
FNU LNU a/k/a Tony, a/k/a Edward Garcia, a/k/a Eric Guerrero, 30, of Lawrence, Mass., also has been charged in a separate indictment with two counts of distribution of fentanyl and one count of conspiracy to distribute fentanyl.
Between October 12, 2016 and October 25, 2016, almost all of the above individuals have been arrested or were already in custody on other charges. Heibrahim DelValle Baez and Santos Guerrero Morillo remain fugitives.
“Solving the opiate epidemic in New England requires a multi-pronged approach. Part of that solution is to prosecute individuals who are responsible for distributing heroin and who profit on the addiction of others. The U.S. Attorney’s Office will continue to work with our law enforcement partners to identify and prosecute individuals who are responsible for the distribution of heroin, fentanyl, and other opiates. This case is an example of the tremendous partnership among law enforcement agencies. I commend all of the agencies involved in this case for their teamwork and dedication in this investigation,” U.S. Attorney Rice said.
"DEA is addressing the threat of heroin and fentanyl, both internationally and domestically. We prioritize our resources by identifying, targeting and destroying these extremely violent and very organized cartels,” said Special Agent in Charge Michael J. Ferguson. “DEA and its law enforcement partners have effectively dismantled the distribution and facilitation elements of this organization that are responsible for putting this poison on the streets of New Hampshire as well as throughout New England. DEA will aggressively pursue organizations or individuals who facilitate heroin and fentanyl by allowing out of state dealers to utilize their residences and provide customers to the dealers in order to profit and destroy people’s lives, and wreak havoc in the Granite State.”
The indictments are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This investigation was the product of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The case was investigated by the DEA; Homeland Security Investigations; the Massachusetts State Police; the Haverhill Police Department; the United States Marshals Service; the New Hampshire State Police; the Manchester Police Department; the Lawrence Police Department; the Lowell Police Department, the Methuen Police Department, and the Hillsborough County Drug Task Force. The case is being prosecuted by Assistant United States Attorneys Georgiana L. Konesky and Donald Feith.
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November 2016 ElectionsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ------ Acting United States Attorney Beth Drake announced today that Assistant United States Attorneys (AUSA) Barbara M. Bowens and John Potterfield will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Bowens and AUSA Potterfield have been appointed to serve as the District Election Officers (DEO) for the District of South Carolina, and in that capacity are responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
Acting United States Attorney Drake said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to make their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, Acting United States Attorney Drake stated that AUSA Bowens and AUSA Potterfield will be on duty in this District while the polls are open. AUSA Bowens and AUSA Potterfield can be reached by the public at the following telephone numbers: (803) 929-3052 and (803) 929-3092, respectively.
In addition, the FBI will have special agents available in each field office and resident agency offices throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (803) 551-4200.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
Acting United States Attorney Drake said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
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New Orleans Man Sentenced for Drug and Gun ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DARION TINSON, age 34, of New Orleans, was sentenced today after previously pleading guilty to two counts of an Indictment charging violations of the Federal Controlled Substances Act and the Federal Gun Control Act.
U.S. District Judge Kurt D. Engelhardt sentenced TINSON to 90 months imprisonment followed by 5 years of supervised release.
According to court documents, during a search of a residence where TINSON was living, agents located approximately 2 ounces of heroin in a bedroom, as well as a stolen Taurus .45 semi-automatic pistol in close proximity to the suspected heroin. Additionally, agents seized a scale, suspected marijuana, and approximately $2,000 in U.S. currency in the nightstand of the master bedroom. In post arrest interviews, TINSON admitted that the heroin and gun were his. TINSON pled guilty to possession with the intent to distribute a mixture or substance containing a detectable amount of heroin, a Schedule I controlled, and possession a firearm in furtherance of his drug trafficking.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney David Haller was in charge of the prosecution.
November 2016 ElectionsRead the Press Release
United States Attorney Rosa Emilia Rodríguez-Vélez announced today that her office will lead the efforts of an Election Crimes Task Force in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. The task force includes Assistant U.S. Attorneys and special agents from the FBI’s Corruption Squad and Cybercrimes Unit who have been assigned to investigate any violations of federal election laws. The Department of Homeland Security’s Critical Infrastructure team will also collaborate with this group of investigators and prosecutors. The task force will be responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Rodríguez-Vélez said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Rodríguez-Vélez stated that the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at 787-754-6000.
Complaints about ballot access problems or discrimination can be made directly to the Civil Rights Division’s Voting Section in Washington at 1-800-253-3931 or (202) 307-2767 or by TTY (202-305-0082). In addition, individuals may also report complaints, problems or concerns related to voting by fax 202-307-3961, by mail to [email protected] and by complaint forms that may be submitted through a link on the department’s website: https://www.justice.gov/crt/voting-section.
United States Attorney Rodríguez-Vélez said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Morris Man Indicted in Attempted Murders of Two DEA Task Force OfficersRead the Press Release
CHICAGO — A federal grand jury in Chicago has indicted a Morris man on attempted murder charges for allegedly trying to kill two DEA Task Force officers during an undercover drug sting in Joliet.
ADAN GODINEZ, 31, of Morris, tried to kill the officers during an undercover operation in a parking lot of the Louis Joliet Mall on Aug. 30, 2016, according to the indictment. In addition to the attempted murder charge, the indictment charges him with one count of conspiracy to possess with the intent to distribute a controlled substance, one count of possession with the intent to distribute a controlled substance, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of brandishing and discharging a firearm during a crime of violence.
A co-defendant, FERNANDO GODINEZ, 44, of Cicero, was also at the scene of the undercover operation. He is charged in the indictment with one count of conspiracy to possess with the intent to distribute a controlled substance, one count of possession with the intent to distribute a controlled substance, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of being a convicted felon in possession of a firearm.
Arraignments are scheduled for Oct. 27, 2016, at 11:30 a.m., before U.S. Magistrate Judge Susan E. Cox.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Dennis A. Wichern, Special Agent in Charge of the Chicago Field Division of the Drug Enforcement Administration. The Joliet Police Department provided valuable assistance.
The sting operation was arranged after Adan Godinez agreed to sell cocaine to an individual who, unbeknownst to Godinez, was an undercover Task Force officer for the DEA, according to a criminal complaint previously filed in the case. The defendants drove together to meet the undercover, at which point Adan Godinez got out of their car and entered the undercover’s vehicle, the complaint states. After Adan Godinez provided the cocaine to the undercover, other law enforcement personnel approached to arrest him, according to the complaint. Adan Godinez saw law enforcement personnel approaching, got out of the officer’s vehicle, pulled out a firearm and shot at the officers, the complaint states. An exchange of gunfire ensued.
Adan Godinez was wounded but survived. No officers were injured. Both defendants were arrested in the mall parking lot, and they have remained in custody without bond.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines. The charges against Adan Godinez carry a mandatory minimum sentence of 35 years in prison, and a maximum sentence of life in prison. The charges against Fernando Godinez are punishable by a mandatory minimum sentence of 10 years, and a maximum of life in prison.
The government is represented by Assistant U.S. Attorneys Brian S. Wallach and Richard M. Rothblatt.
Montana Couple Plead Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
POCATELLO – David Vance Taylor, 62, and Bambi Sue Tomlin, 54, of Billings, Montana, pleaded guilty yesterday to possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Taylor and Tomlin were indicted by a federal grand jury in Pocatello on July 26, 2016.
According to the plea agreement, on June 7, 2016, Taylor and Tomlin were arrested in Bingham County by the Idaho State Police following a traffic stop. During the stop, the officer smelled marijuana coming from the vehicle and conducted a search, discovering more than 800 grams of actual methamphetamine and 2 grams of marijuana in the vehicle. Taylor and Tomlin admitted that they picked up the methamphetamine in Las Vegas and were transporting it through Idaho along Interstate 15 to be delivered to a third party in Billings, Montana.
As charged, possession with intent to distribute methamphetamine is punishable by at least ten years and up to life in prison, a maximum fine of $10,000,000, and at least five years of supervised release.
Sentencing is set for January 4, 2017, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the Bingham County Prosecutor’s Office and the Idaho State Police. It is being prosecuted by the Special Assistant U.S. Attorney hired by the Eastern Idaho Partnership and the State of Idaho to bolster ongoing efforts to prosecute regional drug trafficking, gun and gang violence, internet based crimes against children, and other serious crimes with a federal nexus. The Eastern Idaho Partnership is a collaboration of elected officials and law enforcement from 12 counties and 18 cities across eastern Idaho, in partnership with the Idaho Department of Correction and the U.S. Attorney’s Office.
Michigan Owners of Sixteen Adult Foster Care Homes Indicted for Failure to Pay Employment TaxesRead the Press Release
A federal grand jury returned an indictment on Oct. 19 and unsealed today, charging the owners of adult foster care homes located throughout Michigan with 60 counts of failing to account for and pay over employment taxes, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
According to the indictment, Jeremiah and Nicolette Cheff of Grand Blanc, Michigan, controlled the financial and business operations of 16 foster care homes, including Hunter’s Home, Nico’s Place, Harmony Manor, Hilltop Estates and Deerwood Manor, which cared for individuals with mental illnesses and developmental and physical disabilities. It is alleged that from September 2010 through September 2014, the Cheffs withheld payroll taxes from their employees’ paychecks, failed to timely file employment tax returns, and failed to pay over the funds they withheld to the Internal Revenue Service (IRS).
If convicted, the Cheffs face a statutory maximum penalty of five years in prison for each count charged in the indictment, as well as a period of supervised release and monetary penalties.
An indictment merely alleges that crimes have been committed and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Ciraolo thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Jeffrey A. McLellan and Carl F. Brooker, IV of the Tax Division, who are prosecuting the case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the Eastern District of Michigan for its substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Maryland Man Admits Stealing Works of Art and Selling Them in Southern New JerseyRead the Press Release
CAMDEN, N.J. - A Rock Hall, Maryland, man today admitted stealing at least 40 pieces of art and bringing them to New Jersey to sell them, U.S. Attorney Paul J. Fishman announced.
William C. Reed III, 42, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of interstate transportation of stolen property.
According to documents filed in this case and statements made in court:
Starting in June 2013, Reed was employed as a caretaker for an individual in Rock Hall. Reed’s client was an art collector and dealer, who collected and maintained an eclectic collection of fine art by American and European artists. The collection included paintings, sculptures and etchings.
Between June 2014 and November 2014, Reed took various works of art from his client’s Rock Hall property without his permission and sold the art at various locations, including a pawn shop in Salem, New Jersey, and to an individual in Chestertown, Maryland.
The interstate transportation of stolen property charge to which Reed pleaded guilty carries a maximum potential penalty of 10 years in prison and $250,000 fine. Reed's sentencing is scheduled for Feb. 3, 2017.
U.S. Attorney Fishman credited special agents of the FBI’s Art Crime Team, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, with the investigation leading to today’s plea. Fishman also thanked the Rock Hall Police Department, under the direction of Chief Steven W. Moore, for its assistance in this case.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: Lisa Lewis Esq., Camden
Lawrence Man Sentenced to over 24 Years in Prison on Charges Related to Distribution of Fentanyl, Heroin and CocaineRead the Press Release
BOSTON – The leader of a Lawrence drug trafficking organization that imported fentanyl, heroin and cocaine from Mexico, the Dominican Republic, and elsewhere, into Massachusetts and the northeast was sentenced on Monday, Oct. 24, 2016.
Jerri Martinez-Tejeda, 32, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 292 months in prison, three years of supervised release and a fine of $400,000. In June 2016, Martinez-Tejeda pleaded guilty to conspiracy to possess with intent to distribute and distribution of fentanyl, heroin and cocaine; conspiracy to launder money; and unlawful reentry of a deported alien.
During the course of a three-day sentencing hearing, evidence showed that Martinez-Tejeda arranged for the transport of nine kilograms of fentanyl from California to Massachusetts. Along the way, federal agents arranged for the Oklahoma Highway Patrol to stop the pickup truck in which the drugs were being transported. After hearing about the police stop, Martinez-Tejeda and his associates initially thought the drug couriers were lying since they were not immediately taken into custody. So Martinez-Tejeda hired an enforcer to go to Oklahoma to kidnap and torture the couriers until they admitted their scheme. Only by taking the couriers into custody was this violent plan thwarted.
The Court also heard testimony that Martinez-Tejeda was responsible for laundering at least $1.1 million over the course of five and one-half months. At the time of Martinez-Tejeda’s arrest on July 12, 2015, there was over $500,000 being counted and prepared for transport at Martinez-Tejeda’s house for payment to his Mexican drug supplier, along with drug trafficking paraphernalia including electronic scales, grinders, a hydraulic kilo press, drug ledgers and two handguns.
United States Attorney Carmen M. Ortiz and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement. Assistant U.S. Attorney Thomas E. Kanwit of Ortiz’s Narcotics and Money Laundering Unit is prosecuting the case.
Knoxville Couple Sentenced for Tax Fraud and Money LaunderingRead the Press Release
KNOXVILLE, Tenn. – Bertha Del Pilar Vargas, 48, and her husband, Martin Ayala, 45, both of Knoxville, Tenn., were sentenced on Oct. 26, 2016, by the Honorable Thomas A. Varlan, Chief U.S. District Court Judge, for their participation in tax fraud and money laundering conspiracies. Vargas was sentenced to serve 34 months in federal prison. Ayala received a prison sentence of 37 months. Both were ordered to forfeit to the United States, more than $40,000 in currency seized by federal investigators and a money judgment of $2.4 million.
In June, 2016, Vargas and Ayala each pleaded guilty to conspiracy to defraud the United States through the submission of fraudulent federal income tax returns and conspiracy to commit money laundering. Their offenses were part of a scheme that involved the use of phony identification documents for the submission of fraudulent federal income tax returns in order to obtain refundable tax credits. The scheme resulted in the theft of more than $10.8 million from the U.S. taxpayers.
Agencies involved in this investigation included the Internal Revenue Service, Homeland Security Investigations, U.S. Postal Inspection Service, and Tennessee Highway Patrol Identity Crimes Unit. Assistant U.S. Attorneys Frank M. Dale, Jr. and Jennifer Kolman represented the United States.
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Kissimmee Resident Sentenced to More than 17 Years for Wire FraudRead the Press Release
Yesterday, a Kissimmee, Florida resident was sentenced to more than seventeen years in prison, after having been convicted at trial of wire fraud.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Michael John Alcocer Roa, 34, of Kissimmee, Florida, was previously convicted at trial by a jury of five counts of wire fraud, in violation of Title 18, United States Code, Section 1343. U.S. District Court Senior Judge Patricia A. Seitz sentenced Alocer to 210 months’ imprisonment, to be followed by 3 years of supervised release. A restitution hearing is scheduled for December 13, 2016 at 10:00 a.m.
According to the court record, including testimony and evidence presented at trial, Alcocer set up a Florida corporation called Inovatrade Inc. (“Inovatrade”) in October 2008. Between 2008 and 2011, Alcocer told people that they could trade foreign currencies at Inovatrade, set up managed accounts in which others could trade foreign currencies on their behalf, or earn guaranteed interest payments of approximately 15% per year or greater. Alcocer also represented that Inovatrade maintained all of its clients’ accounts segregated, safeguarded, and protected in a trust account.
Evidence at trial showed that based on those and other representations, approximately 300 individuals and entities sent Inovatrade over $7 million. Many of those individuals and entities received documents from Inovatrade purporting to show their account balances, as well as trading activity in their accounts or monthly interest and other promotional payments earned. But when individuals requested to withdraw their money from Inovatrade, many were unable to do so. Alcocer and Inovatrade provided various, and often inconsistent, excuses, and after some time, many of the individuals and entities received no more communications, nor did they receive their money.
Financial summaries of bank records associated with Inovatrade and Alcocer introduced at trial showed that little to no actual trading took place in the Inovatrade accounts, the vast majority of the money that entered the Inovatrade accounts came from individuals and entities rather than from business revenue, and Alcocer cashed out and transferred millions of dollars of that money from the Inovatrade accounts to personal accounts in the United States and in Panama.
Mr. Ferrer commends the investigative efforts of the FBI. The case was prosecuted by Assistant U.S. Attorneys John P. Gonsoulin and Vanessa S. Snyder.
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.
Kenner Woman Sentenced for Theft of Public MoneyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that NISIKA WEST, age 36, of Kenner, was sentenced today after previously pleading guilty to a three-count Indictment charging her with theft of public money
U.S. District Judge Kurt D. Engelhardt sentenced WEST to one year imprisonment, followed by three years of supervised release. Additionally, WEST was ordered to pay $177,045.61 in restitution to the Internal Revenue Service.
According to court records, between in or about March 2012 and May 2012, WEST knowingly took money from the United States Department of the Treasury through the filing of fraudulent income tax returns. An investigation by the IRS revealed that the fraudulent tax returns were filed using the defendant’s Electronic Filing Identification Number under the name West Tax Service. Illicit refunds were then deposited into the defendant’s bank accounts and withdrawn by the defendant.
U.S. Attorney Polite praised the work of the Internal Revenue Service – Criminal Investigations. Assistant United States Attorney G. Dall Kammer was in charge of the prosecution.
Justice Department Settles Pregnancy and Disability Discrimination Lawsuit Against City of Florence, KentuckyRead the Press Release
The Justice Department filed a proposed consent decree with the city of Florence, Kentucky, to resolve a pregnancy and disability discrimination lawsuit brought by the department under Title VII of the Civil Rights Act of 1964 and Title I of the Americans with Disabilities Act (ADA).
According to the department’s complaint, Florence discriminated against two pregnant police officers by denying both officers’ requests for light duty. The department alleges that Florence previously assigned light duty positions to employees who were temporarily unable to perform their regular job duties, regardless of why the employee needed light duty. In April 2013, within months of a police officer’s pregnancy-related light duty request, Florence limited light duty to employees with on-the-job injuries. Florence also required that employees with non-work-related illnesses, injuries or conditions demonstrate that they had “no restrictions” before they could return to work.
In 2014, according to the department’s complaint, Police Officers Lyndi Trischler and Samantha Riley requested light duty when they were unable to perform their duties as patrol officers due to their pregnancies. Officer Trischler, who was diagnosed with a high-risk pregnancy and suffered complications, also requested light duty as a reasonable accommodation for her pregnancy-related disability. Florence denied the requests and required each to take leave. After placing Officers Trischler and Riley on leave, Florence continued to grant light duty to other employees who were similar in their ability or inability to work.
This is the department’s first lawsuit challenging a discriminatory light duty policy since the U.S. Supreme Court’s ruling regarding light duty policies and pregnant employees in Young v. United Parcel Service. It is also the department’s first lawsuit challenging disability-related “no restrictions” policies in the workplace.
“No woman should ever have to choose between having a family and earning a salary,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Equally important, individuals with disabilities who need reasonable accommodations deserve an opportunity to keep their jobs. The Justice Department will continue working tirelessly to protect pregnant women against unlawful discrimination in the workplace.”
Under the consent decree, which still must be approved by the U.S. District Court for the Eastern District of Kentucky, Florence will adopt new policies that allow accommodations, including light duty, for pregnant employees and employees with disabilities; establish an effective process for receiving and responding to employees’ accommodation requests and discrimination complaints; and ensure the proper maintenance of employee medical records. In addition, Florence will train all supervisors, administrators, officers and employees who participate in making personnel decisions related to light duty and other accommodation requests made pursuant to Title VII and the ADA. Florence has also agreed to pay $135,000 in compensatory damages and attorney’s fees as well as restore the paid leave that Officers Trischler and Riley were forced to use.
“Providing pregnant employees with light duty when appropriate can be a critical reasonable accommodation,” said Chair Jenny R. Yang of the Equal Employment Opportunity Commission (EEOC). “In 2015, the EEOC issued updated pregnancy discrimination guidance explaining that light duty policies that accommodate some workers but refuse to accommodate pregnant women may run afoul of the law. The comprehensive guidance provides information to assist employers in developing, disseminating and enforcing strong policies consistent with the requirements of Title VII and the ADA.”
“We are working closely with our colleagues at the DOJ’s Civil Rights Division and this consent decree is an excellent result of the partnership between the EEOC and the DOJ,” said Director Michelle Eisele of the EEOC’s Indianapolis District Office. “We look forward to future successful collaborations.”
Officers Trischler and Riley are represented by the non-profit advocacy organization, A Better Balance, and the law firm Outten & Golden LLP. They originally filed charges of discrimination with the Equal Employment Opportunity Commission. The EEOC’s Cincinnati Office investigated the charges, determined that there was reasonable cause to believe that discrimination had occurred and referred the charges to the department.
The case is being handled by Trial Attorneys Catherine Sellers of the Civil Rights Division’s Employment Litigation Section and Elaine Grant of the Civil Rights Division’s Disability Rights Section.
The continued enforcement of Title VII and the ADA is a priority of the Civil Rights Division. More information about Title VII, the ADA and other federal employment laws is available at www.justice.gov/crt. Those interested in finding out more about the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Florence Complaint Florence Consent DecreeJustice Department Requires Divestiture of Faiveley Transport’s U.S. Freight Car Brakes Business Before Wabtec AcquisitionRead the Press Release
Divestiture Will Preserve Competition for Railcar Freight Brake Systems and Components in the United States
The Department of Justice announced today that it will require Westinghouse Air Brake Technologies Corporation (Wabtec) to divest Faiveley Transport North America’s (Faiveley) entire U.S. freight car brakes business in order for Wabtec to proceed with its proposed approximately $1.8 billion acquisition of Faiveley Transport S.A. and Faiveley Transport North America.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the department’s competitive concerns.
“The safe and efficient passage of goods throughout the United States freight rail network is crucial to the American economy and depends on sufficient competition for freight car brake systems and components,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division. “The acquisition as originally proposed would have eliminated Faiveley as one of only three major companies that supplies freight car brake components in the U.S. and eliminated Faiveley as a pipeline competitor in the development, manufacture and sale of freight car control valves – essentially freezing a century-old duopoly in that market.”
The proposed settlement includes a divestiture of Faiveley’s entire U.S. freight car brakes business which develops, manufactures and sells freight car brake systems and components including: air brake control valves, hand brakes, slack adjusters, truck-mounted brake assemblies, empty load devices and brake cylinders. The divestiture also includes Faiveley’s FTEN control valve, a freight car brake control valve under development that will be available for full commercialization after approval from the Association of American Railroads.
The department believes the proposed divestiture addresses the competitive concerns raised by this transaction as originally proposed. Under the terms of the proposed consent decree, Wabtec must divest Faiveley’s entire U.S. freight brakes business to a single independent buyer approved by the United States. Wabtec has proposed that the divestiture be sold to Amsted Rail Company Inc. (Amsted Rail). Amsted Rail is a unit of Amsted Industries, a privately held company, based in Chicago. It is a leader in manufacturing railroad freight car undercarriage components and end-of-car systems for the freight rail industry. Amsted Rail’s revenues in 2015 totaled approximately $2 billion.
Wabtec, based in Pennsylvania, is a global rail equipment supplier. Wabtec provides a wide range of equipment used on freight railcars, including components of freight car brake systems used in the U.S. freight rail network, and is a dominant supplier of complete freight brake systems in the United States. In 2015, Wabtec’s worldwide revenues were $3.3 billion, of which revenues from its freight business were approximately $2 billion.
Faiveley Transport North America, headquartered in Greenville, South Carolina, is a wholly-owned subsidiary of Faiveley Transport S.A., a French corporation. Faiveley Transport S.A. makes and sells rail equipment, including braking equipment, for a variety of train applications to customers in 24 countries, including the United States. During the fiscal year ending March 31, 2016, Faiveley had global sales of approximately €1.1 billion with approximately $174 million in revenue in the United States.As required by the Tunney Act, the proposed consent decree, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Maribeth Petrizzi, Chief, Litigation II Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Wabtec-Faiveley CIS
Wabtec-Faiveley Complaint
Wabtec-Faiveley Hold Separate
Wabtec-Faiveley PFJ
Jury Convicts Queens Man of Transporting AliensRead the Press Release
ALBANY, NEW YORK – A jury voted today to convict Harpushpinder Singh, age 46, of Queens, New York, of transporting aliens in the United States.
The announcement was made by U.S. Attorney Richard S. Hartunian and John C. Pfeifer, U.S. Border Patrol’s Chief Patrol Agent for the Swanton Sector.
The jury reached its verdict after a 3-day trial. The evidence at trial demonstrated that Singh transported two Indian nationals, knowing they were in the country illegally. On June 12, 2016, he transported them from Champlain, New York, to North Hudson, New York, where he was detained by Border Patrol at an immigration checkpoint off the New York State Northway.
Singh faces up to 5 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years when he is sentenced on March 14, 2017 by United States District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the United States Border Patrol and was prosecuted by Assistant U.S. Attorney Douglas Collyer.
Johnstown Man Admits Committing Drug and Gun OffensesRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
Tony U. Atwood, 44, of Johnstown, Pa., pleaded guilty to four counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on June 4, 2014, Atwood distributed less than 100 grams of heroin, and he possessed less than 100 grams of heroin with the intent to distribute it on June 4, 2014, and again on January 20, 2016. In addition, also on June 4, 2014, Atwood, who had been convicted in 1995 in Cambria County, Pennsylvania, of Drug Act/Possession with the intent to deliver a controlled substance, unlawfully possessed a Titan semi-automatic pistol. Federal law prohibits persons who have been convicted of a crime punishable by imprisonment for more than one year from possessing ammunition or firearms. Drug Act/Possession with the intent to deliver a controlled substance is such a crime.
Judge Gibson scheduled sentencing for March 2, 2017, at 10 a.m. The law provides for a maximum total sentence of 70 years in prison, a fine of $3,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Atwood.
According to Mr. Hickton, Atwood is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Iowa City Head Shop Owner Pleads Guilty to Conspiring to Distribute Synthetic DrugsRead the Press Release
The former owner of Zombies, a head shop in Iowa City, pled guilty today in federal court in Cedar Rapids.
Hadi Sharairi, age 45, from Coralville, Iowa, was convicted of one count of conspiring to distribute drugs called AB-FUBINACA and THJ-2201 between February and May 2014. AB-FUBINACA was a Schedule I controlled substance and THJ-2201 was a controlled substance analogue during that time period. Under federal law, drugs that are similar to substances listed in the controlled substance schedules are considered “controlled substance analogues,” and it is unlawful to distribute them just as it is illegal to distribute substances on the controlled substance schedules, such as cocaine, heroin, or marijuana.
Testimony at a hearing on June 21, 2016, showed Sharairi was the former owner of Zombies, a head shop located in Iowa City. An officer testified that Sharairi was warned by the Iowa City Police Department in June 2013 not to sell synthetic cannabinoid products (commonly known as “K2,” “Spice,” or “incense”). In May 2014, however, law enforcement searched Zombies and a storage unit associated with the business and found packages labeled “Bizarro,” which contained THJ-2201, and other packages labeled “Super Nova,” which contained AB-FUBINACA.
The investigation of Sharairi and raids of his business, home, and other related locations in May 2014 were a part of a coordinated DEA takedown called Project Synergy Phase II. The second phase of Project Synergy, which began January 2014, culminated on May 7, 2014, in 29 states, and involved more than 45 DEA offices serving nearly 200 search warrants. On that date, authorities seized hundreds of thousands of individually packaged, ready-to-sell synthetic drugs as well as hundreds of kilograms of raw synthetic products to make thousands more. Additionally, more than $20 million in cash and assets were seized.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Sharairi was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Sharairi faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and up to a lifetime of supervised release following any imprisonment.
The case was investigated by the Iowa City Police Department and as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA, the Linn County Sheriff's Office, the Cedar Rapids Police Department, the Marion Police Department, the Iowa Division of Narcotics Enforcement, and the Sixth Judicial District Department of Correctional Services; and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-48-1-LTS.
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Hollister Resident Sentenced to Two and A Half Years in Prison for Being A Felon in Possession of A FirearmRead the Press Release
SAN JOSE – Christian Arballo was sentenced to 30 months’ imprisonment after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Brian J. Stretch and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder. The sentence was handed down yesterday by the Honorable Beth Labson Freeman, United States District Judge, following a guilty plea entered on April 19, 2016.
As part of his plea agreement, Arballo, 41, of Hollister, admitted that he had two previous criminal convictions, each of which prevented him from being entitled to legally possess firearms or ammunition. Nevertheless, on August 10, 2015, Arballo possessed two assault rifles, including a commercial variant of the AK-47, as well as approximately 1,222 rounds of ammunition in four different calibers.
Arballo was indicted on August 20, 2015, and charged with one count of being a felon in possession of firearms and ammunition, in violation of 18 U.S.C. § 922(g)(1), and one count of being a person convicted of a misdemeanor domestic violence offense in possession of firearms and ammunition, in violation of 18 U.S.C. § 922(g)(9). Pursuant to his plea agreement, he pleaded guilty to the first count and admitted the conduct in the second count, which was dismissed.
In addition to the prison term, Judge Freeman sentenced Arballo to a three-year period of supervised release that will commence after he completes his prison sentence. The defendant has been on pretrial release since August 19, 2015, and will begin serving his sentence on January 2, 2017.
Assistant U.S. Attorney Jonas Lerman is prosecuting the case with assistance from Elise Etter. The prosecution is the result of an investigation by the ATF.
Greenville Man Sentenced for Possession of Firearm by A FelonRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court on yesterday, United States District Judge Terrence W. Boyle sentenced DAQUEZ HOWARD, 20, from Greenville, N.C., to 72 months in prison and 3 years of supervised release for possession of a firearm by a convicted felon. HOWARD pled guilty to the charge on July 18, 2016.
The offense occurred at approximately 12:52 a.m. on January 23, 2016, when a female was in her car in the parking lot of the Food Lion store at 250 Easy Street, Greenville, NC, and a dark colored Jeep pulled beside her. The victim saw four black males in the Jeep and that the two males in back had masks on their faces. One of the back passengers pointed a handgun at her. Fearing that she was about to be robbed, the victim drove away and called 911. Within minutes a Greenville Police Officer arrived at the scene and saw a dark colored Jeep occupied by four black males leaving the parking lot. The officer stopped the Jeep and found HOWARD to be a rear passenger. While the officer was walking HOWARD to his patrol vehicle, the officer heard an object hit the pavement. The officer retrieved a loaded FIE Titan .25 caliber pistol by HOWARD’S feet. While the officer was speaking over the phone with the victim, HOWARD spontaneously said that he wasn’t wearing a mask but that he was wearing a hoodie and bandana over his face because it was cold. HOWARD is prohibited from possessing a firearm and ammunition due to his prior convictions for common law robbery, possession with the intent to sell and deliver cocaine and possession with the intent to sell and deliver marijuana.
The case was investigated by the Greenville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office, pursuant to funding provided by the North Carolina Conference of District Attorneys, to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.
Greene County Man Charged with Unlawfully Possessing a RifleRead the Press Release
ALBANY, NEW YORK – Robert Twiss, age 58, of Earlton, New York, was charged yesterday with being a felon in unlawful possession of a firearm.
The announcement was made by U.S. Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation (FBI).
The criminal complaint alleges that on October 24, 2016, Twiss possessed a Plainfield M-1 rifle at his Greene County residence. The charge in the complaint is merely an accusation. The defendant is presumed innocent until proven guilty.
The defendant appeared today in federal court in Albany before United States Magistrate Judge Christian F. Hummel and was ordered detained pending trial.
If convicted, Twiss faces up to 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the United States Sentencing Guidelines and other factors.
This case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
Glen Mills Man Sentenced to 35 Years for Crimes Relating to Child Pornography and Sexual Abuse of A ToddlerRead the Press Release
Jose Gonzalez, age 34, of Glen Mills, Delaware County, Pennsylvania, was sentenced today in federal court on two counts of manufacturing child pornography, one count of distribution of child pornography, and one count of possession of child pornography, announced United States Attorney Zane David Memeger. The Honorable John R. Padova sentenced Gonzalez to 420 months’ incarceration and lifetime supervised release for crimes involving Gonzalez’ sexual abuse of a two-year old toddler. Gonzalez photographed his sexual abuse of this child and distributed the images over the Internet. The investigation also uncovered his collection of more than 19,000 images and videos of infants and toddlers being sexually assaulted that Gonzalez downloaded from the Internet.
The case was investigated by the Federal Bureau of Investigation, assisted by the Delaware County District Attorney’s Office, and was prosecuted by Assistant United States Attorney Michelle Rotella.
Four Quebec Men Charged in Fraud Scheme Involving Burlington Area ATMsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that four Quebec men were arrested on October 24, 2016 in connection with an investigation into their involvement in a fraud scheme in which the men received cash advances on access devices using compromised account information. Mathieu Baaklini, 21, of Laval, Quebec; Safwan Bensalma, 21, of Laval, Quebec; Brandon Lo, 24, of Laval, Quebec; and Nicolau Manfredi, 21, of Montreal were charged by Criminal Complaint with conspiracy to use access devices fraudulently resulting in the receipt of more than $1,000 in cash. The men appeared before U.S. Magistrate Judge John M. Conroy in Burlington on October 25, 2016 for an initial appearance. If convicted, the men face a maximum possible penalty of five years in prison and fines of up to $250,000.
According to court records, at various times between March and October 2016, the four men traveled from Quebec to Burlington, Vermont, where they used NBT Bank ATM machines in Burlington and Essex to obtain cash advances on cards using stolen account information from Canadian accountholders. ATM transaction records and bank surveillance video shows that on May 24, 2016, approximately $8,800 in cash advances were withdrawn using suspected fraudulent credit cards. Records further show that on May 25, 2016, one of the charged conspirators made $11,000 in wire transfers from Chittenden and Franklin Counties, Vermont to locations in Quebec. ATM transaction records and bank surveillance video further shows that between August 22-25, 2016, NBT Bank incurred approximately $54,000 in suspected fraud activity in the form of 500 suspected cash advances on Canadian and European credit and debit cards.
On October 21, 2016, federal agents executed a search warrant on a storage unit in Williston, Vermont, where they recovered approximately $33,000 in cash, a laptop computer, a card-reading device, and approximately 378 gift cards with markings indicating that they contained bank account information on them.
The men were arrested by Department of Homeland Security Agents at the Highgate Springs, Vermont Port of Entry as they attempted to enter the United States.
The Criminal Complaint is an accusation only and the defendants are presumed innocent until and unless proven guilty. In the event of a conviction, their sentences will be advised by the federal Sentencing Guidelines.
Homeland Security Investigations and U.S. Customs and Border Protection are conducting the investigation into this matter. Assistant U.S. Attorney Kevin J. Doyle is handling the prosecution. Baaklini is represented by Maryanne Kampmann, Esq. Bensalma is represented by Craig S. Nolan, Esq. Lo is represented by Chandler W. Matson, Esq. Manfredi is represented by Douglas G. Kallen, Esq.
Fort Myers Man Sentenced to over Eight Years in Federal Prison for Marijuana and Money Laundering ConspiracyRead the Press Release
Fort Myers, Florida– U.S. District Judge Sheri Polster Chappell has sentenced Samer Jamil Rashid (43, Fort Myers) to eight years and one month in federal prison for conspiracy to possess with intent to distribute 100 or more kilograms of marijuana and conspiracy to commit money laundering. He pleaded guilty on June 10, 2016.
According to court documents, from approximately 2010 through July 2013, Rashid and others received high-grade marijuana from sources in California and Colorado, usually via UPS. Co-conspirators Jermaine Lewis, Jr., Karam Mehri, Ian Alters, Davan Nieves, and others then distributed the marijuana in the Fort Myers area and elsewhere. The conspirators used multiple bank accounts in California, in the names of nominee account holders, to make payments to the California suppliers for the marijuana.
Judge Chappell previously sentenced Lewis, Mehri, Alters, and Nieves to 46, 40, 40, and 60 months in federal prison, respectively.
This case was investigated by the Lee County Sheriff's Office, the Internal Revenue Service - Criminal Investigation, and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Robert P. Barclift.
Former Office Manager Pleads Guilty to Federal Charge in Theft of over $100,000 from EmployerRead the Press Release
WASHINGTON – Naimah Sillah, who worked as the office manager for a Washington-based law firm, pled guilty today to a federal charge involving the embezzlement of over $100,000 from the employer, U.S. Attorney Channing D. Phillips announced.
Sillah, 40, of Forestville, Md., pled guilty in the U.S. District Court for the District of Columbia to one count of interstate transportation of stolen property. The Honorable Amy Berman Jackson scheduled sentencing for Feb. 2, 2017. The charge carries a statutory maximum of 10 years in prison and potential financial penalties. Under federal sentencing guidelines, Sillah faces a likely range of 10 to 16 months in prison and a fine of up to $30,000. She also has agreed to pay $103,811 in restitution and an identical amount in a forfeiture money judgment.
According to the government’s evidence, Sillah was hired by the law firm in July 2008. Her responsibilities included processing and managing accounts payables, utilizing accounting software, entering vendor invoices into the software, and drafting the law firm’s checks and mailing them to vendors. From at least March 2009 and through January 2014, Sillah embezzled a total of $103,811 from the law firm’s bank account. She wrote unauthorized checks to herself and steered additional money to two businesses that she created as part of the scheme. One of the businesses she created was almost identical in name to a vendor that the law firm had used on a regular basis for years; the law firm’s owners signed checks unaware that they were not going to the usual vendor. Sillah used the proceeds of her crimes for her own personal use and benefit.
In announcing the plea, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the efforts of those who worked on the matter for the U.S. Attorney’s Office, including Assistant U.S. Attorney Diane Lucas, who handled forfeiture issues, Paralegal Specialists Kaitlyn Krueger and Jessica Mundi and Assistant U.S. Attorney Teresa A. Howie, who prosecuted the case.
Former Charleston Job Corps Center employee pleads guilty to misappropriating government fundsRead the Press Release
CHARLESTON, W.Va. – A Texas man, formerly of Charleston, pleaded guilty Monday to a federal financial crime, announced United States Attorney Carol Casto, General Services Administration Inspector General Carol Fortine Ochoa, and Department of Labor, Office of Inspector General, Special Agent-in-Charge of the Philadelphia Regional Office Richard Deer. Kevin Mabone, 56, entered his guilty plea to misappropriating government funds while he was working at the Charleston Job Corps Center.
Mabone admitted that in 2014 and 2015, while he was the director of social development at the Charleston Job Corps Center, he used government credit cards to fuel his personal vehicle, rather than using the credit cards for legitimate work-related purchases. He further admitted that from 2007 through 2012, while he was employed at the Miami Job Corps Center in Florida, he stole from the government in the same manner—by misusing government credit cards for personal fuel purchases. Mabone admitted that the total amount stolen from both locations was at least $6,684.40, and he has agreed to pay this amount in restitution.
“Stealing from the government is a serious crime that carries major consequences,” said United States Attorney Carol Casto. “I commend the work of the investigators to uncover this fraud and we will continue working with our law enforcement partners to prosecute these important cases.”
"I appreciate the skilled work of the special agents who brought this gas card thief to justice,” said General Services Administration Inspector General Carol Fortine Ochoa.
“Mabone’s fraudulent abuse of Job Corps credit cards for personal purposes improperly took needed funds away from valuable youth programs at these centers. Our agents will continue to investigate fraud schemes that pose a risk to the integrity of programs designed to help eligible youth develop job skills,” said Richard Deer, Special Agent-in-Charge of the Philadelphia Regional Office of the Department of Labor, Office of Inspector General.
Mabone faces up to 10 years in federal prison and a fine of up to $250,000 when he is sentenced on January 24, 2017.
The General Services Administration Office of Inspector General and the Department of Labor Office of Inspector General conducted the investigation. Assistant United States Attorney Gabriele Wohl is handling the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
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Former Carlisle Attorney Sentenced on Tax Evasion ChargeRead the Press Release
HARRISBURG - The United States Attorney's Office for the Middle District of Pennsylvania announced today that Karl E. Rominger, age 43, of Carlisle, Pennsylvania, was sentenced yesterday by the United States District Court Judge Sylvia H. Rambo in Harrisburg to twenty months' incarceration in connection with evading taxes and failing to file tax returns.
According to United States Attorney Bruce D. Brandler, on July 7, 2016, Rominger, a former attorney practicing in Carlisle, pleaded guilty to one count of tax evasion and one count of failure to file a tax return.
Judge Rambo ordered Rominger to pay restitution in the amount of $317,803. Judge Rambo further ordered that Rominger begin to serve his federal sentence after completing his undischarged state prison term for misappropriating client funds.
The case was investigated by the Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant United States Attorney Joseph J. Terz.
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Former CEO of Hollywood Payroll Company Convicted for Tax Fraud ConspiracyRead the Press Release
RIVERSIDE, California – The former CEO of Axium International, Inc., a leading Hollywood payroll services company until its 2008 collapse, was convicted late yesterday afternoon of tax evasion, conspiracy to defraud the IRS, and filing a false tax return.
John Visconti, 74, of Beverly Hills, was convicted by a federal jury following a one-week trial. United States District Judge Jesus G. Bernal, who presided over Visconti’s trial, set sentencing for Visconti on January 23, 2017.
Axium was one of the largest payroll services companies serving the entertainment industry, and its clients included a list of high profile studios, Fortune 500 companies, television and cable companies, and media outlets. At its height, Axium’s gross revenues were well over $1 billion per year.
As the payroll services provider and employer of record for its client entities, Axium regularly submitted payroll tax returns to the IRS and to the taxing authorities of several states. In several instances, those tax returns generated refunds in six-figure dollar amounts. Axium collapsed in 2008, after revelations that its tax delinquencies exceeded $100 million and that, as a result, Axium’s lender foreclosed on its bank accounts. Axium’s tax delinquencies resulted in the IRS assessing a recovery penalty against Visconti of $15 million.
According to the evidence at trial, Visconti and Axium’s former chief operating officer, Ronald Garber, 62, of Santa Monica, used a variety of elaborate mechanisms to divert approximately $5.1 million from Axium during the period 2005-2007, and Visconti took an additional $1.9 million in corporate loans that he did not repay. In one of the schemes, Visconti diverted tax refund checks payable to Axium and its subsidiaries into “shadow bank accounts,” accounts that were in the names of Axium companies but controlled by Visconti and Garber, off the corporate books and records, and not disclosed to the Axium accounting department. Garber and Visconti also diverted over half a million from Axium through a scheme involving a sham construction company that invoiced Axium for purported services. The two men also conspired to have thousands of dollars in cash from Axium delivered to them on a weekly basis.
The various schemes presented during the trial resulted in the diversion of millions of dollars from Axium, and Visconti reported none of the funds pocketed by him on his federal income tax returns. Visconti in several instances arranged for his “cut” to be paid to bank accounts held in the names of entities that Visconti controlled.
“This defendant and his co-conspirator stole millions from Axium over the course of many years and failed to pay taxes on those amounts,” said United States Attorney Eileen M. Decker. “His conduct victimized not only the employees of Axium who lost their livelihoods when the business collapsed, but all American taxpayers who are paying their fair share.”
At the time of sentencing, Visconti faces a maximum sentence of 13 years of imprisonment and a maximum fine of $750,000.
Ronald Garber pled guilty previously to two counts of subscription to a false tax return and is scheduled to be sentenced by Judge Bernal on January 23, 2017. Another former Axium associate, Christina Futak, 60, of Orange, California, pled guilty to tax evasion and is scheduled to be sentenced on December 19, 2016. Futak, a former tax professional, also stipulated to the entry of a civil order enjoining her from engaging in the business of tax preparation.
“Axium was a prominent payroll services business that had millions of dollars of client funds under its control. But instead of safeguarding that money and meeting their legal obligations to their clients and the IRS, Visconti and Garber put their energy into siphoning money from the company for their own personal use,” stated Acting Special Agent in Charge Anthony J. Orlando of IRS Criminal Investigation. “Taxpayers and businesses can be assured that IRS Criminal Investigation will vigorously pursue anyone who collects taxes and fails to timely remit those taxes.”
The Chapter 11 bankruptcy case for Axium, initially filed in January 2008, remains an active case proceeding in which thousands of documents have been filed.
The investigation into Axium was conducted by IRS Criminal Investigation, and the case is being prosecuted by Assistant United States Attorney Angela J. Davis of the Major Frauds Section.
Final Defendant in $3.1 Million Credit Card Fraud Scheme SentencedRead the Press Release
COLUMBUS, Ohio – The last of nine people who conspired to use stolen credit card numbers to commit $3,179,329.06 in fraud was sentenced in U.S. District Court today.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Mark Porter, Special Agent in Charge, U.S. Secret Service, and Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), announced that Joey Westbrook, 21, of Columbus was sentenced by U.S. District Judge Michael H. Watson today to serve 36 months in prison, followed by three years of supervised release.
According to court documents, Reynoldsburg resident Francois Toure, 26, obtained more than 4,700 stolen credit card numbers over the Internet between April 2012 and March 2015. He then re-encoded the magnetic strips of genuine prepaid or gift cards to reflect the stolen credit card numbers. Shoppers used the re-encoded cards to buy genuine gift cards, cigarettes, and other merchandise. Mohamed Mobarak, 27, and Ahmad Mobarak, 22, who operated Beechcroft Newsstand, used the Newsstand’s point-of-sale terminal to fraudulently redeem genuine gift cards purchased by the shoppers. Finally, Mohamed Mobarak filled privately owned ATMs with funds that were in part the proceeds of credit card fraud.
Investigators determined that the intended loss of the fraud scheme was $3,179,329.06. Judge Watson ordered restitution of $928,008.92 to be paid to victims. Investigators seized 46 ATMs, two vehicles, firearms and ammunition, electronic equipment and $599,962.82 in currency during the investigation.
All nine defendants pleaded guilty to conspiracy to commit wire fraud and received sentences ranging from 33 to 60 months. The others who pleaded guilty are Robert A. Kamara, 27, of Canal Winchester, Enouch J. Kermue, 27, of Columbus, Asher Merritt, 28, of Columbus, Diddier Mami, 28, of Inkster, Michigan, and Destani T. Cable, 28, of Columbus.
U.S. Attorney Glassman commended the Secret Service, the IRS, and agencies participating in the 65-member Southern District of Ohio Task Force on electronic crimes created in 2012 for their cooperative investigation, as well as Assistant U.S. Attorneys David J. Bosley and Peter K. Glenn-Applegate, who prosecuted the case.
Federal inmate pleads guilty to escapeRead the Press Release
BECKLEY, W.Va. – A federal inmate who was caught approximately a mile from Raleigh General Hospital pleaded guilty today, announced United States Attorney Carol Casto. Jody Ladd Dellenback, 30, entered his guilty plea to escape.
Dellenback admitted that on August 25, 2016, he ran away from his Bureau of Prisons escort after the completion of his medical examination at Raleigh General Hospital. Law enforcement authorities searched the area and found him about two hours later, slightly over a mile from the hospital. Dellenback was serving an 18-month sentence at the Federal Correctional Institution at Beckley for unauthorized use of a credit card.
Dellenback faces up to an additional five years in federal prison when he is sentenced on February 8, 2017.
This case was investigated by the Federal Bureau of Prisons with assistance from the Beckley Police Department, the Raleigh County Sheriff’s Office, and the West Virginia State Police. Assistant United States Attorney John File is handling the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.
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Federal Jury Finds Bradenton Man Guilty of Armed Robbery and Firearm ChargesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found Troy Markeith Griffin (38, Bradenton) guilty of conspiring to commit armed robbery, armed robbery, and brandishing a firearm in furtherance of an armed robbery. He faces a maximum penalty of life in federal prison. His sentencing hearing is scheduled for February 7, 2017.
Griffin was indicted on November 4, 2015, along with four co-conspirators, including his son and nephew.
According to testimony presented at trial, Griffin and his co-conspirators, all of whom previously pleaded guilty, committed at least four armed robberies before they were apprehended. Three of the robberies occurred at bars in Manatee County, including the Oasis Bar, Bubbas Too, and the Three Oaks Bar. The fourth robbery occurred at the Twin Horse Saloon in Pinellas County, during which the defendants repeatedly held a firearm to the head of the bartender, and beat the patrons with a pool stick. Following that robbery, Griffin led police on a high-speed chase for several miles in St. Petersburg before the officers disabled Griffin’s vehicle and, with canine assistance, ultimately apprehended all five individuals.
Troy Markeith Griffin, Jr., Tevin Jamar Marketh Major, Craig Demetrio Koonce, and Juwaan Roberts previously pleaded guilty for their roles in this case and are currently awaiting sentencing.
This case was investigated by the Federal Bureau of Investigation, the Pinellas County Sheriff’s Office, and the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Natalie Adams and Carlton Gammons.
Federal Jury Convicts Jerome Man for Unlawfully Possessing FirearmsRead the Press Release
BOISE – Daniel Andrew Mills, 41, of Jerome, Idaho, was convicted today by a federal jury in Boise for unlawful possession of firearms, U.S. Attorney Wendy J. Olson announced. Mills was indicted on February 9, 2016.
During the two-day trial, the jury heard evidence that Mills, a convicted felon who was wanted by the U.S. Marshals on a federal warrant for a supervised release violation, was driving through Jerome at 2:15 a.m. on January 11, 2016, when a Jerome County Sheriff’s Office deputy attempted to stop him for a broken taillight. Mills fled in his car, reaching speeds of more than 100 miles per hour. Mills’ car became disabled after he crashed through a fence and hit a parked vehicle. Mills refused all commands to exit the vehicle and repeatedly stuck the barrel of a shotgun outside of the driver’s window. The armed stand-off lasted several hours before a Twin Falls Sheriff’s Office hostage negotiator talked Mills out of the car and he was arrested without incident. Inside of the car, deputies found a loaded shotgun and a loaded .25 pistol. At the time Mills was in possession of the firearms, he was on supervised release for a prior federal conviction for unlawfully possessing a firearm. Mills has previously been convicted of assault with intent to commit a serious felony, aiding and abetting delivery of controlled substance, escape, forgery, and possession of controlled substance.
"I want to thank all the law enforcement officers involved for their efforts and willingness to put themselves in harm’s way in order to bring Mr. Mills to justice,” said Olson. “Their restraint and professionalism in peacefully resolving this armed stand-off is but one example of Idaho law enforcement protecting the community as a whole, to include individuals like Mr. Mills who seek to do them harm.”
Mills faces up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release for unlawful possession of firearms.
Sentencing is set for January 12, 2017, at 9:30 a.m. before Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was investigated by the Jerome County Sheriff’s Office, the Jerome City Police Department, the Twin Falls County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Federal Indictment Charges Suitland Man in Fatal Shooting at the U.S. Census BureauRead the Press Release
Greenbelt, Maryland – A federal grand jury today returned an indictment charging Ronald Anderson, age 48, of Suitland, Maryland, with kidnapping, murder of a federal officer, attempted murder of a federal officer, using and discharging a firearm during a crime of violence, causing death by use of a firearm during a crime of violence, and being a felon in possession of a firearm.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation; Chief Hank Stawinski of the Prince George’s County Police Department; Interim Chief Peter Newsham of the Metropolitan Police Department; and Director Eric Patterson of the Federal Protective Service, Department of Homeland Security.
The indictment alleges that on April 9, 2015, Anderson abducted Victim One from Washington, D.C. and drove Victim One to Maryland. According to court documents, once in Maryland Victim One got out of Anderson’s vehicle and into a Honda CRV driven by an acquaintance of Anderson’s and they sped away. Anderson pursued the CRV at a high rate of speed.
According to court documents, the acquaintance drove to the U.S. Census Bureau building at 4600 Silver Hill Road in Suitland, with Anderson continuing to pursue the CRV. The Honda CRV crashed into a light pole near two armed security officers. Anderson stopped his vehicle behind the Honda CRV and exchanged gunfire with the two security officers. The indictment alleges that Anderson shot and killed one of the officers and attempted to murder the second officer.
Anderson was subsequently arrested in Washington, D.C. by Metropolitan Police Department (MPD) officers after a vehicle pursuit and gunfight, with Anderson firing numerous times at MPD officers. Anderson was shot multiple times and an MPD officer was struck in the leg. According to court documents, a .45 caliber pistol was recovered from Anderson’s vehicle. The indictment alleges that Anderson has a previous felony conviction and is prohibited from possessing a firearm.
If convicted, Anderson faces a maximum sentence of life in prison. An initial appearance has not been scheduled. Anderson continues to undergo medical treatment and remains detained on related charges filed in the Superior Court for the District of Columbia.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, Prince George’s County Police Department, Metropolitan Police Department, and the Federal Protective Service of the National Protection and Programs Directorate, Department of Homeland Security for their work in the investigation and thanked the U.S. Attorney’s Office for the District of Columbia for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Thomas M. Sullivan and Bryan E. Foreman, who are prosecuting the case.
Ellicott City Man Indicted in $3 Million Insurance Fraud SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Glenn R. Fischer, age 69, of Ellicott City, Maryland, on charges of wire fraud and aggravated identity theft arising from a scheme to defraud businesses seeking insurance. The indictment alleges that as a result of the scheme, Fischer fraudulently collected more than $3 million in insurance premiums. The indictment was returned on September 22, 2016 and unsealed today.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the five-count indictment, Fischer was a partner at TriArc Financial Services, Inc., (TriArc Services) which provided automotive and mortgage insurance products, including residual value insurance. Residual Value Insurance (“RVI”) helped companies leasing vehicles to consumers to manage the risk from decreases in the value of the vehicle during the term of an auto lease. RVI typically provided for payments to the owner of a leased vehicle if the value of the vehicle at the end of the lease was less than a certain amount specified in the terms of the insurance coverage when the lease began. In the early 2000s, RVI policies were widely issued by insurance companies and TriArc Services generated substantial revenue for the company and its partners, including Fischer, who served as insurance brokers for RVI products. In 2008 and 2009, in conjunction with the financial recession and changes in consumers’ desires for used automobiles, many insureds suffered substantial losses in conjunction with previously issued RVI insurance policies.
The indictment alleges that from 2009 until 2014, Fischer persuaded victim businesses to purchase RVI insurance coverage, which Fischer knew did not exist, so that Fischer could use a substantial portion of the victims’ insurance premiums for his personal benefit. Specifically, in the summer of 2009, Fischer created a Nevada corporation called TriArc Marketing Solutions (TriArc Solutions) and opened bank accounts for TriArc Solutions. According to the indictment, during the course of the scheme Fischer caused prospective insureds to believe that he was acting on behalf of TriArc Services. Fischer concealed the creation and use of TriArc Solutions from his partners at TriArc Services.
Fischer allegedly created and sent false insurance coverage documents, fraudulent emails, premium invoices, lists of covered vehicles, and other documents to victim companies, causing them to falsely believe that they had purchased RVI insurance through Fischer. Fischer used the identity of an employee of a multinational property and casualty insurance company in furtherance of the fraud, including his name, title and purported signature on the declaration pages of the fake insurance policies. Fischer concealed from the employee and the company that Fischer was pretending to issue RVI insurance policies on behalf of the company.
The indictment alleges that Fischer collected millions in RVI insurance premiums from the victims, which he deposited into the TriArc Solutions bank accounts. According to the indictment, Fischer and his relatives used the proceeds of the insurance premium payments for their personal benefit.
The indictment seeks the forfeiture of all property which constitutes or is derived from the proceeds of the fraud, including: a money judgment of $3 million, six bank accounts, coins, precious metals, a Nitro Z-8 boating vessel, and two vehicles.
If convicted, Fischer faces a maximum sentence of 20 years in prison for each of the four counts of wire fraud, and a mandatory minimum of two years in prison, consecutive to any other sentence imposed, for aggravated identity theft.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Harry M. Gruber and David Metcalf, who are prosecuting the case.
Eight-Time Convicted Felon Sentenced to over 9 Years in Prison for Gun PossessionRead the Press Release
ATLANTA - Daniel Allen Days has been sentenced to nine years, seven months in prison for possession of five firearms as an eight-time convicted felon. Days used a straw purchaser to obtain firearms, which he then planned to sell in New Jersey.
“Despite his eight prior felony convictions, Days was in possession of multiple firearms in order to illegally traffic the weapons to New Jersey,” said U. S. Attorney John Horn. “This case shows both the dangers of having a repeat felon like Days in illegal possession of a firearm, and also how the use of straw purchasers contributes to the illegal trafficking of guns that head north from Georgia.”
“Days is the poster child for tough federal sentencing for gun possession by convicted felons,” said George Crouch, Acting Special Agent in Charge (A/SAC), FBI Atlanta. “While serving this lengthy sentence, he will no longer pose a threat to anyone.”
According to U.S. Attorney Horn, the charges and other information presented in court: On February 11, 2015, Days was pulled over in a vehicle carrying five firearms, including an assault rifle with a high-capacity magazine in the trunk. Days was transporting the firearms to New Jersey for sale. Days had trafficked firearms to New Jersey on two prior occasions, but was thwarted on his third attempt after FBI surveillance exposed that he used a straw purchaser to obtain firearms earlier that day. Text messages on Days’ cell phone showed he sent photos of numerous firearms, including multiple rifles with high-capacity magazines, to potential buyers.
Daniel Allen Days, 39, of Atlanta, Georgia, was sentenced by U.S. District Judge Amy Totenberg to nine years, seven months in prison to be followed by three years of supervised release. Days was convicted of these charges on July 27, 2016, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Jolee Porter prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Eight Men Charged for Their Involvement in the Theft of over 23,000 iPhones from Miami International AirportRead the Press Release
Eight men have been arrested and charged by indictment with two separate conspiracies involving the April 2, 2016 theft of over 23,000 Apple iPhones valued at approximately $6,791,636.81 from the Miami International Airport, LAN Storage facility.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) made the announcement.
Yoan Perez, 34, of Miami, Leonel Padron Bello, 35, of Miami, Emilio Herrera, 41, of Miami, Ricardo Gonzalez, 52, of Miami, Rasiel Perez, 45, of Miami, Eloy Garcia, 42, of Miami Springs, Misael Cabrera Ruiz, 37, of Miami, and Rodolfo Urra, 36, of Cutler Bay, were indicted on charges related to their involvement in a conspiracy to steal and unlawfully sell Apple iPhones.
According to court records, on April 2, 2016, Yoan Perez and Leonel Padron Bello, took part in a conspiracy and stole over 23,000 Apple iPhones valued at approximately $6,791,636.81 from the Miami International Airport, LAN Cargo storage facility. According to the indictment, an unknown co-conspirator drove a tractor and trailer to the LAN Cargo facility and purported to be a driver from a shipping company, used fictitious documents, and left the airport with the stolen iPhones. The indictment further charges that on various dates from May 2016 through September 2016, Yoan Perez, Leonel Padron Bello, Emilio Herrera, Ricardo Gonzalez, Rasiel Perez, Eloy Garcia, Misael Cabrera Ruiz, and Rodolfo Urra conspired together and orchestrated a series of sales of the stolen Apple iPhone 5S and 6S devices.
The United States Attorney’s Office warns all consumers to be cautious when purchasing Apple iPhones from unauthorized individuals, as such individuals may be selling stolen iPhones. If members of the community have additional information related to the crimes charged in this indictment, they are encouraged to contact the FBI.
Mr. Ferrer commended the investigative efforts of the FBI, ICE-HSI, and the Miami Dade Police Department Airport Investigative Unit. The case is being prosecuted by Assistant U.S. Attorney Cary O. Aronovitz.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
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.
Danbury Man Sentenced to 3 Years in Federal Prison for Defrauding InvestorsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced IAN PARKER BICK, 21, of Danbury, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 36 months of imprisonment, followed by three years of supervised release, for defrauding investors of approximately $480,000. Judge Meyer ordered BICK to serve the first one year of his supervised release in home confinement.
On November 25, 2015 a jury found BICK guilty on six counts of wire fraud and one count of money laundering.
According to the evidence at trial, BICK was a principal and/or managing member of various Danbury-based entities, including This Is Where It’s At Entertainment, LLC, Planet Youth Entertainment, W&B Wholesale, LLC, and W&B Investments, LLC. Using these entities, BICK solicited investment funds from his friends, former classmates, acquaintances, and their parents by promising high investment returns over relatively short periods of time. BICK falsely represented to victim-investors that he could generate the high investment returns by using their funds to purchase electronics and electronic devices, such as iPhones, tablets and head phones, and by reselling the items for a substantial profit via the Internet. However, the electronic resale business never actually began in earnest and did not return any meaningful profit. BICK also falsely represented to certain victim-investors that he could generate high investment returns by using their funds to organize and promote concerts at various venues in Connecticut and Rhode Island. BICK falsely represented that he had made significant profits organizing and promoting concerts in the past.
BICK failed to invest the funds he received as he had represented and instead used invested funds for unrelated and unsuccessful businesses, and to pay personal expenses, including hotel stays and to purchase jet skis. BICK also used invested funds to issue payments, purportedly as “interest payments” and as “return of principal,” to certain victim-investors.
Through this scheme, BICK defrauded more than 15 investors out of a total of $480,635. Judge Meyer ordered BICK to make full restitution to his victims.
BICK has been detained since October 4, 2016, when his bond was revoked.
This matter was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Postal Inspection Service, with the assistance of the Connecticut Department of Banking, Danbury Police Department and Hartford Police Department. The case was prosecuted by Assistant U.S. Attorneys Michael S. McGarry and Christopher W. Schmeisser.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
Dallas County Community Action Committee, Inc. Vice President Indicted on 31 Counts of Mail Fraud, Wire Fraud, Bank Fraud and Aggravated ID TheftRead the Press Release
DALLAS — Special agents with the U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Finance Agency (FHFA), along with postal inspectors with the U.S. Postal Inspection Service (USPIS), arrested Francisco Javier Gonzalez, a/k/a “Javier Gonzalez,” Monday morning at his home in Duncanville, Texas, on a federal indictment, returned last week by a grand jury in Dallas, and just unsealed, which charges Gonzalez with 21 counts of mail, wire and bank fraud and aggravated identity theft stemming from his work at the Dallas County Community Action Committee, Inc. (DCCAC). The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Gonzalez, 44, made his initial appearance in federal court yesterday afternoon before U.S. Magistrate Judge Paul D. Stickney, who ordered him detained pending trial.
Specifically, the indictment charges Gonzalez with five counts of mail fraud, six counts of wire fraud, eight counts of bank fraud and two counts of aggravated identity theft.
The DCCAC was a non-profit entity, accredited by HUD between October 1990 and mid- February 2016, to provide housing counseling. It was created in 1965 by the Dallas Commissioners Court to support the efforts of the Johnson administration to combat poverty. DCCAC was located on East Jefferson Boulevard in the Oak Cliff area of Dallas. Gonzalez served as DCCAC’s Vice President and one of the directors. Gonzalez also leased space in the DCCAC offices for another entity, known as Residential Counseling FJ LLC.
The indictment alleges that through his work at DCCAC, Gonzalez defrauded numerous homeowners under the guise that he was assisting them with mortgage assistance. Instead, Gonzalez falsified paperwork, stole these homeowners’ mortgage payments, and extracted large payments from these homeowners in a claimed, but untrue, effort to unsuccessfully save their homes from foreclosure. As a result of his fraud, these homeowners were defrauded of tens of thousands of dollars and many lost their homes; HUD also suffered a loss of approximately $659,859.00
Gonzalez, according to the indictment, specifically sought out victims who were facing financial difficulty and who had contacted the DCCAC seeking mortgage loan and foreclosure prevention assistance. He also identified victims facing such financial distress by subscribing to the Foreclosure Listing Service, a/k/a Roddy List, which offers listings of foreclosure and pre-foreclosure homes, by county, through a review of public records. Once identified, Gonzalez would meet with these victims in the DCCAC offices and in the victims’ homes. He would explain a plan to reduce the victim’s mortgage payment and to prevent foreclosure; the plan often included a loan modification application.
In many instances, Gonzalez would prepare and submit a Making Home Affordable Request for Mortgage Assistance modification application, pay stubs, Hardship Affidavits, and verifications of employment in an attempt to obtain the loan modification for these victims. These documents often contained information that had been falsified by Gonzalez and were otherwise incomplete. Banks would often deny these applications because they were incomplete.
On some occasions, the indictment alleges, Gonzales told victims to not communicate with the banks as that would prevent him from effectively obtaining the loan modification. He would tell these victims to stop making their mortgage payments to the bank and instead make the payments directly to him so that he could forward the funds to the bank. Sometimes, he instructed the victim to make a large lump sum payment directly to him to stave off foreclosure, and he also often required a lump sum payment for his own services. On almost all occasions, Gonzalez did not submit this money paid to him by the victims to the banks as he had promised, but instead used the money for his own personal expenses.
As a result of the failure to make mortgage payments and incomplete applications submitted to modify loans, banks would often begin the foreclosure process. In some instances, Gonzalez would then mail a Real Estate Settlement Procedure Act (RESPA) Qualified Written Request to the bank in an effort to delay the foreclosure and extract additional funds from the victim. Gonzalez also instructed some victims to file for bankruptcy in an effort to avoid foreclosure.
On some occasions, when a victim provided Gonzalez with a money order already made out to the bank, Gonzalez would alter it to make it payable to himself.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each mail fraud count carries a maximum statutory penalty of 20 years and a $250,000 fine. Each wire fraud count and each bank fraud count carries a maximum statutory penalty of 30 years and a $1 million fine. Each aggravated identify theft count carries a mandatory two years and a $250,000 fine.
HUD Office of Inspector General, FHFA Office of Inspector General, and the USPIS are investigating the case. Assistant U.S. Attorney P.J. Meitl is in charge of the prosecution.
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Cushing Man Sentenced to 265 Months for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that BOB GENE HALL, a/k/a Robert Glen Hensley, age 35, of Cushing, Oklahoma, was sentenced to 265 months imprisonment for DRUG CONSPIRACY, in violation of Title 21, United States Code, Sections 846(a)(1) and 841(b)(1)(A).
The Indictment alleged that beginning in or about February 2015, the exact date being unknown to the Grand Jury, and continuing until on or about September 1, 2015, within the Eastern District of Oklahoma and elsewhere, the defendant did knowingly and intentionally combine, conspire, confederate and agree with others, both known and unknown to the Grand Jury, to commit offenses against the United States in violation of Title 21, United States Code, Section 846, as follows: to possess with intent to distribute and to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II Controlled Substance.
The charges arose from an investigation by the McAlester Police Department, District 18 District Attorney’s Drug Task Force, Seminole Nation Lighthorse Police, Oklahoma Highway Patrol, Seminole County Sheriff’s Office, Seminole Police Department, Oklahoma Bureau of Narcotics, United States Marshal Service and the Drug Enforcement Administration.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshals Service pending transportation to the designated federal facility at which he will serve his nonparoleable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Convicted Felon Charged with 3 Counts in Effort to Further Drug TraffickingRead the Press Release
Sharif Gray, 25 of Easton, Pennsylvania, was charged today by Indictment with one count of possession with intent to distribute controlled substances, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of convicted felon in possession of a firearm, in violation, announced United States Attorney Zane David Memeger and Northampton County District Attorney John M. Morganelli.
Gray is alleged to have knowingly possessed a loaded Bersa .380 caliber semi-automatic pistol and 30 grams of methamphetamine with intent to distribute on March 1, 2016, in the City of Easton. Gray also possessed the loaded Bersa .380 caliber semi-automatic pistol after having previously been convicted in a court of the Commonwealth of Pennsylvania of a crime punishable by imprisonment for a term exceeding one year.
If convicted, defendant faces a total maximum penalty of life imprisonment, with a mandatory minimum of 10 years’ imprisonment consecutive to any other sentence imposed and up to a lifetime of supervised release, with a mandatory minimum of 4 years’ of supervised release, a $4,500,000 fine, and a $300 special assessment.
The case was investigated by the Federal Bureau of Investigation, Allentown Division, the Northampton County District Attorney’s Office, and the City of Easton Police Department, and is being prosecuted by Special Assistant United States Attorney Kelly Lewis Fallenstein and Assistant United States Attorney Kishan Nair.
Columbus, Ohio residents plead guilty to transporting stolen items across state linesRead the Press Release
WHEELING, WEST VIRGINIA – Kionte K. Whatley, 19, and Kasie A. Morgan, 24, both of Columbus, Ohio pled guilty to transporting stolen goods across state lines, United States Attorney William J. Ihlenfeld, II, announced.
Whatley and Morgan each pled guilty to one count of “Conspiracy to Transport Stolen in Interstate Commerce.” They admitted to conspiring to steal primarily smart phones, tablets, head phones, games stations, and computers from Walmart, Target, and Meijer stores in eight different states, including West Virginia and Ohio. The value of the stolen goods are estimated to be in excess of $500,000.
They face up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Columbus, Ohio Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.