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13 December 2016
10th Street Gang Member Sentenced to Nearly 25 YearsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Tony Peebles, 30, of Buffalo, NY, who was convicted of discharging a firearm in furtherance of a crime of violence, and RICO conspiracy, was sentenced to 295 months imprisonment by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that from in or before 2000, through in or about 2010, Tony Peebles was a member and associate of the 10th Street Gang, that operated within a specifically defined geographic area on the west side of the City of Buffalo, New York. 10th Street Gang members routinely guarded that territory and resorted to acts of violence, if necessary, to insure that no rival gang members or narcotics dealers encroached upon their territory to sell drugs, or for any other reason.
Peebles admitted that he conspired with others to possess with intent to distribute, and to distribute, significant quantities of cocaine base and marijuana, and that he possessed firearms in furtherance of his drug trafficking activity.
Acting U.S. Attorney Kennedy characterized Peebles as extremely violent and a prolific shooter. AUSA Tripi, the lead prosecutor on the case, detailed eight different shootings in which Peebles participated: • On or about June 15, 2007, Peebles, along with other 10th Street Gang members, shot and injured two rival gang members in the City of Buffalo.
• On or about August 11, 2009, Peebles drove another 10th Street Gang member to the vicinity of 102 Pennsylvania, Buffalo, New York, where such individual fired several rounds into an occupied residence.
• On the following day, August 12, 2009, Peebles met with other members of the 10th Street Gang in order plan to retaliate against rival gang members for the murder of Peebles’s younger brother. Peebles and other members of his gang, walked to 211 Bird Avenue, Buffalo, New York, where Peebles and another shot an individual nine times in an attempt to cause the death of such individual. Though the shooting victim did not die, the individual did sustain life-threatening bodily injuries as a result of the shooting.
• One day later, on August 13, 2009, near 893 Prospect Avenue, Buffalo, New York, Peebles shot another individual who was a rival gang member several times with a firearm. Such individual sustained bodily injury as a result of the shooting.
• On the next day, August 14, 2009, in the vicinity of Auburn Avenue and Dewitt, Buffalo, New York, Peebles and another 10th Street Gang member shot and sought to kill two victims.
• On or about August 17, 2009, in the Western District of New York, Peebles, along with two other 10th Street Gang members, drove a stolen car to the vicinity of 82 Virginia, Buffalo, New York, and fired numerous times at a rival gang member in an attempt to kill such rival gang member.
• On or about October 17, 2009, Peebles drove his girlfriend’s car, with several other 10th Street Gang members to the vicinity of Plymouth Street and Pennsylvania Avenue, in Buffalo. Peebles pulled the vehicle alongside an individual and stopped the car while one of his passengers shot the victim until the firearm was out of ammunition. The victim sustained life-threatening bodily injury as a result of the shooting.
• Finally, on or about November 8, 2009, near 29 Ripley in Buffalo, Peebles, along with other 10th Street Gang members, went to a residence where one of the gang members fired out of the passenger side window of the vehicle that Peebles was driving multiple times with an AR-15. An individual, who was shot numerous times, survived despite sustaining life-threatening bodily injuries as a result of the shooting.The sentencing is the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Adam S. Cohen, the New York State Police, under the direction of Major Steven Nigrelli, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
12 December 2016
Wichita Massage Parlor Owner Pleads Guilty in Sex Trafficking CaseRead the Press Release
WICHITA, KAN. – The owner of a Wichita massage parlor was sentenced Monday to two years supervised release for harboring a Chinese woman who worked as a prostitute, U.S. Attorney Tom Beall said.
The defendant agreed to forfeit more than $32,000 in cash and a 2004 Honda Element. In addition, the judge imposed a $52,000 money judgment.
Samir F. Elias, 61, Wichita, Kan., pleaded guilty to one count of harboring an alien for financial gain and one count of importation of an alien for prostitution. In his plea, he admitted the crimes occurred while he was the owner of GiGi’s Elite Massage, which operated at 357 N. Hillside in Wichita after moving from a previous location at 6611 E. Central.
Elias employed a Chinese woman with the initials F.Y. He was aware that the woman, who was not lawfully in the United States, engaged in the sale of sexual relations at the massage parlor. He personally reviewed online forums discussing the sale of sexual relations at his business. He harbored her at his residence near Maple and 119th West in Wichita, driving her to work and home again. He collected money from her he knew to be the proceeds of prostitution.
An undercover vice detective with the Wichita Police Department arrested the woman after she offered to perform sexual services during a massage.
Beall commended the Wichita Police Department, Homeland Security Investigations (HSI) and Assistant U.S. Attorney Jason Hart for their work on the case.
West Haven Woman Pleads Guilty to Fraud and Identity Theft ChargesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JAMILA WILLIAMS-STEVENSON, 36, of West Haven, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of bank fraud and one count of aggravated identity theft.
According to court documents and statements made in court, between 2012 and July 2016, WILLIAMS-STEVENSON and Lorena Coburn worked together to steal personal identifying information from victims and commit fraud using the stolen information. The sources of the personal identifying information included patients at Yale New Haven Hospital, where WILLIAMS-STEVENSON worked as a care companion.
As part of the scheme, WILLIAMS-STEVENSON and Coburn submitted to the U.S. Postal Service change of address applications for their victims so that the victims’ mail, including checks that were intended for the victims, would be diverted from the victims’ true addresses to addresses that were controlled by WILLIAMS-STEVENSON and Coburn. WILLIAMS-STEVENSON and Coburn also stole checks from residential and business mailboxes and then counterfeited the checks so that they were payable to their identity theft victims. They then opened bank accounts in the names of identity theft victims, deposited the stolen and counterfeit checks into those accounts, and then withdrew the funds from those accounts.
More than 20 individuals have been victimized through this scheme, resulting in an attempted loss of more than $150,000 to banks and victims.
WILLIAMS-STEVENSON and Coburn also obtained a life insurance policy in the amount of $75,000 in the name of an identity theft victim, and WILLIAMS-STEVENSON was named as the beneficiary on the policy. Forensic analysis of WILLIAMS-STEVENSON’s iPhone, which was seized at the time of her arrest, revealed a series of text messages between WILLIAMS-STEVENSON and Coburn discussing how they might be able to cause the death of this victim in order to collect on the life insurance policy.
WILLIAMS-STEVENSON was arrested on July 21, 2016. She is detained pending sentencing.
Coburn, 42, of West Haven, was arrested on July 27, 2016. She pleaded guilty to the same charges on November 30, 2016, and is released on a $100,000 bond.
The charge of bank fraud carries a maximum term of imprisonment of 30 years, and the charge of aggravated identity theft carries a mandatory consecutive term of imprisonment of two years. Sentencing dates have not been scheduled.
This matter is being investigated by the U.S. Postal Inspection Service, the Internal Revenue Service – Criminal Investigation Division, the Connecticut Financial Crimes Task Force and the West Haven, New Haven and Orange Police Departments. This case is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala
U.S. Attorney Daly stated that the investigation is ongoing, and encouraged citizens who believe that they have been victimized by this scheme, or who have had a mailing address changed without their consent, to call the U.S. Postal Inspection Service at 203-782-7391.
West Burlington Man Sentenced to 48 Months in Prison for Failure to Register as a Sex OffenderRead the Press Release
DAVENPORT, IA - On December 12, 2016, Aaron Lamonte Miles, age 47, of West Burlington, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 48 months in prison for failure to register under the Sex Offender Registration and Notification Act, announced United States Attorney Kevin E. VanderSchel. Miles also will be required to serve a ten-year term of supervised release following his release from imprisonment.
On June 27, 2016, Miles pleaded guilty to this charge and admitted that he had previously been convicted of three sex offenses and was required to register as a sex offender per the laws of the state in which he resides, which was most recently Iowa. Miles failed to comply with the sex offender registry from August 24, 2015, through November 3, 2015. During that time period, Miles traveled to Ohio without notifying either Iowa or Ohio sex offender registry officials.
The investigation was conducted by the United States Marshals Service. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Media Contact is Rachel J. Scherle at 515-473-9300 or at [email protected]
University Student Indicted for Initiating Distributed Denial-Of-Service Attacks on Bay Area ComputersRead the Press Release
SAN FRANCISCO – Sean Krishanmakoto Sharma, a graduate student in computer science, has been indicted for transmitting a program, information, code, or command causing damage to a protected computer announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The indictment, filed December 1, 2016, and unsealed December 9, 2016, accuses the graduate student of initiating a number of attacks on a local provider of online chat services.
According to the indictment, between November 6, 2014, and January 20, 2015, Sharma, 26, of La Canada, Calif., used a “distributed denial of service” (DDoS) tool to compromise the computers of a San Francisco-based company that provides online chat services to third party web sites. The indictment charges Sharma with one count in violation of 18 U.S.C. §§ 1030(a)(5)(A) & (c)(4)(A)(i)(I).
Sharma was arrested December 9, 2016, in La Canada and made his initial appearance before the Honorable Alka Sagar, U.S. Magistrate Judge, Central District of California. He was released on a $100,000 bond. Sharma is next scheduled to appear on December 16, 2016, before the Honorable Jacqueline Scott Corley, U.S. Magistrate Judge, Northern District of California for arraignment.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Sharma faces a maximum sentence of ten years in prison, three years of supervised release, and/or a fine. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by Assistant United States Attorney Cynthia Frey, a member of the U.S. Attorney’s Computer Hacking/Intellectual Property Unit. The case is being investigated by the FBI.
Union City Tax Return Preparer Found Guilty of FraudRead the Press Release
ATLANTA – Following a three-day jury trial, Frazier B. Todd, Jr. has been found guilty of preparing fraudulent tax returns on behalf of clients. Todd owned and operated Diverse Resource Business and Tax Firm in Union City, Georgia, along with Cozzie Walker and Robert Sheffield. Walker and Sheffield were also charged in the case and previously pleaded guilty.
"Mr. Todd and his co-conspirators compromised the integrity of our tax system by preparing false tax returns and obtaining fraudulent tax refunds for clients," said U.S. Attorney John Horn. "As we approach tax season, the public is cautioned to do their homework and choose their return preparers wisely."
"The verdict exemplifies IRS Criminal Investigation’s intense focus on the rigorous pursuit of tax refund fraud," stated Special Agent in Charge, Veronica F. Hyman-Pillot, IRS Criminal Investigation. "Frazier Todd not only violated the integrity of our tax system, but also placed an unfair burden on the hardworking taxpayers of America. We would like this verdict to serve as a strong message to other return preparers that there are consequences for committing refund fraud."
According to U.S. Attorney Horn, the charges and other information presented in court: Todd conspired with Cozzie Walker and Roberta Sheffield to exploit the American Opportunity Tax Credit (“AOTC”), a refundable tax credit for certain college expenses such as tuition and related costs. Marketing the AOTC as a “stimulus” available to almost anyone, Todd and his business partners prepared false tax returns for thousands of clients, many of whom were disabled, elderly, or low-income.
Todd was also convicted for a much broader fraud scheme in which he exploited not only the AOTC but other tax credits as well to maximize his clients' refunds. For example, he filed dozens of corporate tax returns falsely claiming that the businesses purchased tens of thousands of gallons of gasoline for "off-highway business use," and were entitled to the Fuel Tax Credit. He also falsely claimed that clients had installed solar panels on their homes in order to claim the Residential Energy Credit, which is designed for taxpayers who make green energy upgrades to their homes.The jury found Todd guilty of conspiracy to commit mail and wire fraud, obstructing the internal revenue laws, and ten counts of presenting false claims for refund to the IRS. The Government voluntarily dismissed two additional counts of presenting false claims prior to the trial. Cozzie Walker pleaded guilty on March 2, 2016, to conspiracy to commit mail and wire fraud. Roberta Sheffield pleaded guilty on March 21, 2016, to conspiracy to commit mail and wire fraud, and 14 counts of presenting false claims for refund to the IRS.
The sentencing of Frazier B. Todd, Jr., 58, of Atlanta, Georgia, is scheduled for March 8, 2017, also before U.S. District Court Judge Cohen.
The sentencings of Cozzie Walker, 42, of Atlanta, Georgia, and Roberta Sheffield, 43, also of Atlanta, Georgia, are scheduled for February 23, 2017, before U.S. District Court Judge Mark H. Cohen.
This case is being investigated by the Internal Revenue Service Criminal Investigation.
Assistant United States Attorneys Lynsey M. Barron and Steven D. Grimberg are prosecuting 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.
U.S. Attorney’s Office welcomes new prosecutorRead the Press Release
MARTINSBURG, WEST VIRGINIA – The newest Assistant United States Attorney in the Northern District of West Virginia was sworn into office today, United States Attorney William J. Ihlenfeld, II, announced.
Lara K. Omps-Botteicher was administered the oath of office this morning by U.S. Attorney Ihlenfeld. Omps-Botteicher has been working in the office since December 2015 as a Special Assistant United States Attorney. She will work in the Criminal Division within the Martinsburg branch office.
“Lara has been a tremendous asset to our office thus far,” said Ihlenfeld. “Her experience and knowledge as a prosecutor will further our efforts to combat crime in Northern West Virginia.”
Omps-Botteicher graduated from West Virginia University in May 2008 with a Bachelor of Arts in English and History. She is a 2012 graduate of the West Virginia University College of Law where she ranked second in her class. She was also a founding member of the West Virginia University Supreme Court and Appellate Advocacy Clinic.
Prior to joining the U.S. Attorney’s Office, she served as an Assistant Attorney General in the West Virginia Attorney General’s Office in Martinsburg. She also worked as a Litigation Associate at Bowles Rice LLP and was a Law Clerk to United States District Judge Gina M. Groh.
U.S. Attorney Glassman Awards Outstanding Performance Recognitions to District EmployeesRead the Press Release
CINCINNATI – U.S. Attorney Benjamin C. Glassman recognized nine employees of the Southern District of Ohio in three categories for their distinguished public service in his first annual United States Attorney’s Awards in Outstanding Performance in three categories.
“These awards give us the opportunity to highlight some of the top-notch work that’s happening every day in our District,” Glassman said. “I commend all of the recipients for their work, which is truly exemplary of what this office does on a daily basis.”
The United States Attorney’s Award for Outstanding Performance in Legal Support is presented to a support staff individual who has executed exemplary support for the District’s attorneys. This year’s recipient, Laura Griffin, has been recognized for creating a model system for appellate sections in U.S. Attorney’s Offices across the country.
Griffin was also recognized for her legal support as this year’s recipient of the Attorney General’s Award for Excellence in Legal Support. She has implemented a system of formal moot courts for every oral argument conducted by Assistant U.S. Attorneys and is in the development of a training program for support staff on appellate rules and procedures. Griffin also assisted in the creation and development of an extensive intranet site for the Appellate Division that was praised by Evaluation and Review Staff evaluators as a model for U.S. Attorney’s Offices throughout the country.
“Laura’s hard work, enthusiasm, and innovation have served to guide the Appellate Division from its infancy into one of the most respected Appellate Divisions in the country, universally praised by members of our office, evaluators, and the Judges of the Sixth Circuit,” Glassman said.
This year’s recipient of the United States Attorney’s Office Award for Outstanding Performance as an Assistant United States Attorney leads the District’s counterterrorism efforts. Not only has Assistant U.S. Attorney Timothy Mangan successfully brought to conclusion two national security cases in recent months, but he did so simultaneously.
Mangan prosecuted Munir Abdulkader, who plotted to attack a military official and then a local police station in Southern Ohio, and Christopher Lee Cornell, who plotted to attack government officials at the State of the Union Address. Through Mangan’s diligent prosecutorial efforts, the two defendants were sentenced to 20 years and 30 years in federal prison, respectively. Mangan has also been nominated by the Department of Justice’s National Security Division for national recognition for his remarkable work.
“Tim is the type of prosecutor that works tirelessly for justice,” Glassman said. “There can be no higher priority for a U.S. Attorney’s Office than our national security, and the Southern District of Ohio is fortunate to have someone as diligent and skilled as Tim leading our efforts in some of the most difficult and important cases.”
The 2016 United States Attorney’s Award for Outstanding Performance as a Litigative Team recognizes those involved in an unprecedented series of investigations and prosecutions in this District. The successful prosecutions of the Short North Posse gang in Columbus represent the largest federal murder investigation and prosecutions in Ohio history.
Assistant United States Attorneys David DeVillers, Kevin Kelley and Brian Martinez; Paralegal Specialists Christin Werner and Emily Sroka; and Victim Witness Coordinators Barbara Vanarsdall and Acquanette Lindsay were recognized for their work on the case.
Twenty individuals were indicted in the racketeering case in October 2014, with charges that included murders, attempted murders, drug trafficking, weapons offenses, extortion and robbery. The prosecutions held the gang accountable for 14 previously unsolved homicides. Six of the defendants were convicted in two separate jury trials, 13 defendants pleaded guilty, and one died awaiting trial. All of the defendants face life in prison.
“Our team held accountable a group of men who had perpetuated a multi-generational tradition of terrorizing Columbus neighborhoods through violence and intimidation,” Glassman said. “This team’s successful prosecutions sent a clear message that the gang’s reign has ended and such behavior will not go unpunished. It is impossible to accomplish something of this magnitude without tremendous teamwork, and the recipients of this award achieved unprecedented victories for justice in the Southern District of Ohio by combining their extraordinary skill and dedication in unprecedented collaboration.”
Two Sentenced for Roles in RICO Conspiracy to Commit Violent Armed RobberiesRead the Press Release
Roanoke, VIRGINIA – A pair of gang members, who were convicted earlier this year of federal racketeering [RICO] charges in relation to a string of violent robberies and the abduction and murder of an off-duty, reserve police captain, were sentenced today in the United States District Court for the Western District of Virginia in Roanoke, United States Attorney John P. Fishwick Jr. announced.
Anthony Darnell Stokes, 34, of Manassas, was sentenced today to 160 months in federal prison, three years of supervised release, a fine of $500 and ordered to pay restitution in the amount of $12,369. Halisi Uhuru was sentenced today to 144 months in federal prison, three years of supervised release, a fine of $500 and ordered to pay $12,369 in restitution. Both defendants were previously convicted of federal RICO and obstruction of justice charges.
“These individuals, along with other members of the 99 Goon Syndikate, terrorized parts of Central Virginia for the better part of a year. They committed armed robberies, assault and ultimately took the life of Officer Kevin Quick,” United States Attorney Fishwick said today. “While I know today’s sentences do not bring back Office Quick to his family, I hope his loved ones know all of the men and women who worked on this case devoted many hours of hard work to bring his killers to justice.”
Others convicted and sentenced as part of the conspiracy include: Daniel Lamont Mathis, 20, of Charlottesville, Va., Shantai Monique Shelton, 26, of Charlottesville, Va., Mersadies Lachelle Shelton, 22, of Charlottesville, Va., and Kweli Uhuru, 25, of Winchester, Va., were each found guilty of multiple federal racketeering counts following a month-long jury trial in February. In September, all four defendants were sentenced to multiple life-terms in federal prison.
At trial, the evidence established that Halisi Uhuru, Anthony Stokes and Kweli Uhuru formed the 99 Goon Syndikate, a set of the Bloods criminal street gang, while in prison. All three were released from prison in 2013. Kweli Uhuru recruited his brothers and the Shelton/Mathis siblings to join the gang in the summer of 2013 by persuading them of the easy money and respect earned as a gang member. By October 2013, this violent criminal street gang began committing criminal acts throughout Central Virginia.
Over the ensuing months, the gang members robbed convenience stores, burglarized or robbed homeowners, sold narcotics and ultimately abducted and murdered Captain Kevin Quick of the Waynesboro Police Department Reserves. Tragically, Captain Quick was in the wrong place at the wrong time on the evening hours of January 31, 2014. Quick was on his way to visit his sick child at the same time the gang wanted to commit a carjacking. When he arrived in the parking lot and exited his vehicle, the gang members abducted the unarmed Captain Quick at gunpoint and drove him to Fluvanna, where they forced him to disclose his ATM PIN code at gunpoint. After obtaining his code, the gang members took him into the woods and shot and killed him.
Two days later, gang members Daniel Mathis and Mersadies Shelton attempted to rob a Louisa homeowner who fought back after Mathis threatened a toddler and pistol whipped a female at the residence. During the melee, Mathis lost the magazine to his .40 caliber pistol and shot one of the residents while he escaped. The gang members then reached out to their leadership in Northern Virginia in an effort to escape to Montana. Halisi Uhuru sent Anthony Stokes from Manassas to Louisa in the middle of the night to bring the fellow gang members away from the scene of their crimes.
While in Northern Virginia, the leadership provided the gang members with food, shelter and helped them destroy evidence associated with the murder of Captain Quick, including the murder weapon. Law enforcement caught up with them the night they planned to escape to Montana on February 4, 2014. Two days later, Captain Quick’s body was found off a remote logging road in Goochland County, Virginia.
The investigation of the case was conducted by the Virginia State Police, the Federal Bureau of Investigation, the Louisa County Sheriff’s Office, the Albemarle County Police Department, the Charlottesville City Police Department, the Waynesboro Police Department, the Henrico County Police Department, the Gordonsville Police Department, the Goochland County Commonwealth’s Attorney’s Office, the Fluvanna County Commonwealth’s Attorney’s Office and the Prince William County Police Department. Assistant United States Attorneys Ronald M. Huber, Christopher Kavanaugh and Louisa County Commonwealth’s Attorney and Special Assistant United States Attorney Rusty E. McGuire prosecuted the case for the United States. Victim and Witness specialists with the United States Attorney’s Office, assisted by Victim and Witness specialists from the FBI, Albemarle County and Louisa County, provided substantial assistance in support of the prosecution.
Two Securities Traders Charged in Scheme That Netted $26 Million in Illicit ProfitsRead the Press Release
Manipulated $10 Billion Worth of Securities in Tens of Thousands of Transactions
NEWARK, N.J. – Two New Jersey-based securities traders were arrested today and charged with orchestrating a massive, long-running market manipulation scheme that netted them more than $26 million in illegal profits between 2014 and 2015, U.S. Attorney Paul J. Fishman announced.
Joseph Taub, 37, of Clifton, New Jersey, and Elazar Shmalo, 21, of Passaic, New Jersey, were each charged by complaint with one count of conspiracy to commit securities fraud. They are scheduled to appear later today before U.S. Magistrate Judge Steven C. Mannion in Newark federal court.
“As outlined in today’s complaint, Taub, Shmalo and others engaged in a scheme to place numerous buy and sell orders for specifically targeted, lightly traded securities in a coordinated fashion that allowed them to manipulate the price to their advantage,” U.S. Attorney Fishman said. “Over a period of years, they manipulated $10 billion worth of securities in this way, pocketing $26 million in illicit profits at the expense of other investors. The charges we filed today are part of our continuing effort to hold accountable those who would try to illegally tilt the playing field in their own favor.”
“The FBI is diligent in ensuring that anyone intent on corrupting the free market will be brought to justice,” Special Agent in Charge Timothy Gallagher of the FBI’s Newark Division said. “This type of behavior cheats the average investor and has a terrible impact on the securities industry.”
According to documents filed in this case and statements made in court:
From December 2013 to December 2016, Taub, Shmalo, and other conspirators allegedly orchestrated a sophisticated scheme to manipulate the prices of securities of numerous public companies by coordinating trading in dozens of brokerage accounts that the conspirators controlled. The defendants and their conspirators looked for companies whose securities had low trading volumes because it was easier to manipulate their prices. In this way, they injected false information into the market about the supply and demand of these securities, artificially inflating their prices. They then profited by selling at the artificially inflated prices the shares they had accumulated at lower prices.
In 2014 and 2015 alone, Taub, Shmalo and their conspirators engaged in more than 23,000 instances of manipulative trading, buying and selling $10 billion worth of securities and making more than $26 million in illegal profits.
The defendants and their conspirators relied on pre-arranged and coordinated trading among dozens of brokerage accounts they controlled. These accounts were held in the conspirators’ own names, the names of their family members, and the names of entities the conspirators controlled. Many of the accounts were opened in the names of individuals who neither controlled the accounts nor traded the securities held in the accounts (straw account holders). Taub funded many of the accounts that were not in his name and used the straw account holders to conceal the scheme from regulators and law enforcement.
The manipulative trading generally involved two or more trading accounts that bought and sold the same lightly traded stock on the same day during the same period of time. At least one account was primarily used to place multiple smaller orders to create upward or downward price pressure (the “helper account”) and at least one other account was primarily used to buy and sell larger quantities of stock (the “winner account”). The winner accounts profited by buying and selling at prices affected by the manipulative orders in the helper accounts. The helper and winner accounts were almost always held at different brokerage firms. The helper accounts frequently broke even or lost money, but in conjunction with the winner accounts, the conspirators profited overall.
The trading manipulations usually lasted just a few minutes each, during which time the conspirators sometimes controlled at least 80 percent of the volume of a targeted stock and traded in several accounts simultaneously. Most of the coordinated trading events involved dozens of orders and the purchase and sale of thousands of shares of targeted stocks. The defendants and their conspirators generated a net profit from these events more than 80 percent of the time.
The count of conspiracy to commit securities fraud with which the defendants are charged carries a maximum potential penalty of five years in prison and a fine the greater of $250,000 or twice the gain derived from the offense or twice the loss caused by the offense.
The U.S. Attorney’s Office is also planning to file a separate civil action seeking forfeiture of brokerage accounts in which the manipulative trades were executed, bank and brokerage accounts funded with proceeds of the scheme, and Taub’s interest in companies in which he invested the proceeds of the scheme. Civil forfeiture cases are “in rem” proceedings – proceedings against things. The forfeiture claims in this case are based on allegations that the forfeitable property is proceeds of the securities fraud scheme or is property involved in laundering the proceeds of the scheme.
In a separate civil action, the Securities and Exchange commission today filed a complaint in Newark federal court charging Taub and Shmalo with violating and aiding and abetting violations of the antifraud provisions of the securities laws. The complaint seeks a permanent injunction as well as the return of ill-gotten gains plus interest and penalties.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Gallagher, with the investigation which led to today=s charges. He also thanked special agents of IRS-Criminal Investigations, the SEC and investigators from the U.S. Attorney’s Office – District of New Jersey, for their roles in the investigation.
The government is represented by Assistant U.S. Attorneys Daniel Shapiro and Zach Intrater of the U.S. Attorney’s Office Economic Crimes Unit in Newark; and Assistant U.S. Attorneys Sarah Devlin and Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
The charge and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Troy Felon Sentenced to 57 Months for Possessing a Firearm and AmmunitionRead the Press Release
ALBANY, NEW YORK – Gregory L. Clark, age 26, of Troy, New York, was sentenced today to 57 months in prison for unlawfully possessing a firearm and ammunition.
The announcement was made by U.S. Attorney Richard S. Hartunian, Troy Police Chief John F. Tedesco, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
As part of his August 30 guilty plea, Clark admitted that on April 2, 2016, he possessed a Ruger .357 caliber revolver and .357 caliber ammunition. After receiving information that a man had a gun, Troy Police Officers found Clark hiding in a closet in a Lansingburgh apartment where he also had the revolver and ammunition. He could not possess a firearm or ammunition because he had three prior felony convictions.
Senior U.S. District Judge Gary L. Sharpe also ordered Clark to serve 3 years of supervised release following his release from prison.
This case was investigated by the Troy Police Department and ATF, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
Toledo man sentenced to 30 years in prison for having a kilogram of heroin and a firearmRead the Press Release
A Toledo man was sentenced to 30 years in prison for his involvement in conspiracy to possess with intent to distribute a kilogram of heroin, said U.S. Attorney Carole S. Rendon.
Lee T. Turner, 31, was found guilty earlier this year of one count of conspiracy to possess with intent to distribute at least one kilogram of heroin and one count of being a felon in possession of a firearm.
U.S. District Judge James Carr also fined Turner $200,000 and ordered him to forfeit a house, firearms, cash, jewelry and other items.
“We will continue to aggressively go after those who bring heroin into our community and who are forbidden from carrying firearms but do so anyway,” Rendon said. “Our state is in the midst of an opioid epidemic and we all must work together – through prevention, treatment, education and yes, enforcement, to turn the tide.”
Turner conspired to with others from November 2013 through Nov. 20, 2014 to possess heroin. Turner used 2830 Powhattan Parkway and 707 Phillips Avenue, both in Toledo, for the unlawful purpose of storing and distributing heroin, according court documents.
On Nov. 20, 2014, Turner possessed approximately 1,077 grams of heroin and a 9 mm pistol, despite previous convictions for bank robbery, robbery, kidnapping and other felony convictions, according to court documents.
The case was being prosecuted by Assistant U.S. Attorneys Alyssa Sterling and James Morford following an investigation by the Toledo Metro Drug Task Force, which is made up of representatives from the Toledo Police Department, Federal Bureau of Investigation, Lucas County Sheriff’s Office and other law enforcement agencies.
Stratos Sentenced to over 21 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Troy David Stratos, 50, formerly of Los Angeles, was sentenced today by United States District Judge Troy L. Nunley to 21 years and 10 months in prison for multiple counts of mail fraud, wire fraud, money laundering and obstruction of justice, United States Attorney Phillip A. Talbert announced.
U.S. Attorney Talbert stated, “The fraudulent schemes devised and orchestrated by Stratos were staggering in their scope and audacity. Stratos crafted multiple layers of lies and worked to obstruct his victims’ and the authorities’ ability to discover the truth. He preyed upon his victims to satisfy his own voracious greed and desire for a lavish lifestyle. The sentence today reflects the seriousness of his crimes and the harm done to his victims.”
“Despite the complexity of his lies to conceal his schemes, Troy Stratos is, quite simply, a common con artist. He exploited a life-long friendship to live luxuriously while draining the friend’s financial accounts. He also misrepresented himself to others to glean funds for stock shares that never existed to support his fraudulent lifestyle,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation’s Sacramento field office. “The FBI will identify and investigate individuals who perpetrate such large-scale fraud to ensure they face justice for their crimes.”
According to court documents and evidence presented during the course of the case, between August 2005 and September 2007, Stratos devised and executed a scheme to defraud his targeted victim of money and property. He told her that he was wealthy and successful, and that, among other things, he had made substantial money from oil investments. Stratos promised that he would help manage the victim’s portion of the proceeds from her recent divorce, including real property in her name and cash assets. Stratos told her that she needed to create a trust allowing Stratos to have access and control over her assets and the trust.
Stratos falsely represented that he would invest the divorce proceeds overseas, including in Dubai and in the United Arab Emirates, where the proceeds would earn a high rate of return. Stratos also falsely represented that he would pay for her expenses from his own money because her money was purportedly invested overseas.
Stratos never invested any money overseas as he promised. Instead, he diverted substantial sums of money from the trust for his own personal use. He also used portions of the money to pay the victim=s expenses, misrepresenting to her that he was spending his own money to pay those expenses.
Further, between February 2007 and April 2007, Stratos was informed of a grand jury subpoena that his bookkeeper had received requiring the production of various financial records relating to Stratos, including documents relating to Stratos’ spending the victim’s money in casinos in Las Vegas. Stratos instructed the bookkeeper to not provide some of the records. In April 2010, the FBI executed a search warrant for a storage locker maintained by Stratos and located the records covered by the grand jury subpoena that were withheld at the direction of Stratos.
Thereafter, beginning in December 2010 and continuing through February 2012, Stratos engaged in a new scheme to defraud Tim Burns, a financial manager in Pennsylvania, of approximately $11,250,000 of investors’ money. Burns was in the market to buy Facebook stock, pre-IPO (initial public offering), for some of his clients in 2011. Stratos, who used the alias “Ken Dennis,” because his own name had numerous negative postings on the internet, told Burns that he represented Carlos Slim, one of the wealthiest individuals in the world. Stratos claimed that Carlos Slim was in the process of purchasing a large block of Facebook shares, and Stratos offered to sell to Burns favorably priced Facebook shares that were in excess of what Carlos Slim was purchasing. Stratos also claimed to be connected with insiders at Facebook, including Mark Zuckerberg, and Facebook’s CFO. Stratos promised increasingly larger amounts of Facebook stock starting at approximately two million shares and up to 40 million shares. Based on the representations by Stratos, Burns sent three wire transfers totaling $11,250,000 to purchase the Facebook stock. The first wire transfer was sent to the client-trust account at Venable LLP, which was the law firm that Stratos had retained. The subsequent wire transfers were sent to bank accounts that Stratos controlled.
Throughout the scheme, Stratos assured Burns that the deal would close at any moment, often promising that the “papers” were about to be signed. Alternatively, Stratos offered to refund to Burns his deposit, even within a few days, but warned Burns that he would regret missing the opportunity to make money.
On December 20, 2011, the Federal Bureau of Investigation arrested Stratos in Los Angeles for the earlier fraud scheme. Stratos, through text messages and a telephone call, continued to tell Burns that the deal was real and that he could refund Burns’ money. By this time, Stratos had spent nearly all of the $11.25 million.
At sentencing, the court found that Stratos also engaged in other fraudulent conduct. The United States has estimated that Stratos obtained in excess of $43 million in fraudulent proceeds between in 1996 and his arrest in 2011.
A hearing was held to determine restitution. The court took it under submission and will issue a written order.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Todd Pickles and Jared Dolan prosecuted the case.
Stratos has remained in custody since his in arrest in 2011.
Steuben Man Sentenced to a Year and a Day for Illegally Possessing a FirearmRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Aaron C. Robinson, 51, of Steuben, Maine was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to a year and a day in prison to be followed by three years of supervised release for being a felon in possession of a firearm. Robinson pleaded guilty to the charge on June 22, 2016.
Court records show that on November 16, 2015, the Maine Warden Service (MWS) found the defendant with a Savage .308 rifle hunting deer with bait from a tree stand in Steuben. The defendant had prior Maine state court felony convictions for terrorizing, violations of conditions of release, possession of a firearm by a felon, burglary and aggravated criminal mischief.
The investigation was conducted by the MWS and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Southwest Kansas Couple Plead Guilty to Money LaunderingRead the Press Release
WICHITA, KAN. – A couple from southwest Kansas pleaded guilty Monday to a federal money laundering charge, U.S. Attorney Tom Beall said.
George Enns, 70, and his wife, Agatha Enns, 68, both of Meade, Kan., pleaded guilty to one count of money laundering conspiracy.
In their plea, the defendants admitted:
- At least $1.6 million in cash and $5.2 million in third-party checks was deposited into a joint account the defendants held at Plains State Bank in Plains, Kan.
- The defendants knew the funds in the account were the proceeds of unlawful activity although they did not know -- or do business with -- the individuals whose names were on the third-party checks
- The defendants did not use the account at Plains State Bank for their own business and personal transactions. They had accounts at other banks.
- The account at Plains State Bank was used for the deposit of cash and checks that George Enns received during his trips to Mexico. He carried the money into the United States without reporting the funds at the border.
- Funds in the account at Plains State Bank were transferred out of state to purchase genetically modified corn seed. The seed was shipped to the border where the corn was transported into Mexico at the direction of George Enns.
- This process is called trade based money laundering.
Sentencing is set for Feb. 27. The government is recommending three years on probation and a money judgment in an amount to be set by the judge.
Beall commended the Drug Enforcement Administration, the Federal Deposit Insurance Corporation, the Internal Revenue Service and Assistant U.S. Attorney Debra Barnett for their work on the case.
Somerset County Men Sentenced for Conspiring to Obstruct the IRSRead the Press Release
JOHNSTOWN, Pa. - Three residents of Rockwood, Pa., were sentenced in federal court in Pittsburgh to a charge of conspiracy, Acting United States Attorney Soo C. Song announced. George R. Beener; Kerry Beener and Kevin Beener each were sentenced to five years’ probation, the first three months of which must be served as home confinement. After completing home confinement, each was ordered to serve a term of nine months’ home detention. George R. Beener was ordered to pay a fine of $50,000, and Kerry and Kevin Beener were ordered to pay fines of $10,000 each.
United States District Judge Arthur J. Schwab imposed the sentences on George R. Beener, Kerry Beener, and Kevin Beener.
According to information presented to the court, between March 2010 and February 2016, George R. Beener, Kerry Beener and Kevin Beener engaged in a conspiracy to impair, impede, and obstruct the functions of the Internal Revenue Service in the computation, assessment, and collection of income tax.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
Acting United States Attorney Soo C. Song commended the Internal Revenue Service/Criminal Investigation for the investigation leading to the successful prosecution of the Beeners.
Seven Defendants Sentenced Federally for Their Role in a $36 Million Fraud Scheme Involving Low-Income Housing DevelopmentsRead the Press Release
Between November 30 and December 7, 2016, seven defendants were sentenced for their role in a scheme to steal $36 million of federal funds intended for low-income housing.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Nadine Gurley, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of Inspector General (HUD-OIG), and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Seven defendants previously pled guilty for their involvement in a $36 million housing fraud scheme and were sentenced as follows:
- Lloyd Boggio, 70, of Coconut Grove, was sentenced to 57 months in prison and ordered to forfeit approximately $7.1 million to the United States.
- Matthew Greer, 38, of Miami Beach, was sentenced to 36 months in prison and ordered to forfeit approximately $16 million to the United States.
- Gonzalo DeRamon, of Coral Gables, was sentenced to 18 months in prison and ordered to forfeit approximately $4.4 million to the United States.
- Michael Cox, 48, of Miami, was sentenced to six months’ home confinement and ordered to forfeit approximately $4.4 million to the United States.
- Michael Runyan, 67, of Lighthouse Point, was sentenced to six months’ home confinement and ordered to forfeit approximately $1.1 million to the United States.
- Rene Sierra, 58 of Southwest Ranches, was sentenced to six months’ home confinement and ordered to forfeit approximately $1.2 million to the United States.
- Arturo Hevia, 64, of Miramar, was sentenced to three years of probation and ordered to forfeit approximately $20,000 to the United States.
According to court documents, including the factual proffers in support of the defendants’ guilty pleas, Matthew Greer and Lloyd Boggio served, at alternating times, as CEO of Carlisle Development Group (CDG), a low-income housing developer in Miami, Florida. CDG applied for federal tax credits and federal grant monies to build low-income housing developments through a program administered by the Florida Housing Finance Corporation (FHFC). To obtain these federal funds, FHFC required developers to submit proposed development costs, including a construction contract signed by the developer and contractor.
The court records further indicate that Greer and Boggio conspired with contractor Michael Runyan to unjustly enrich themselves by submitting fraudulently inflated low-income housing construction contracts to FHFC’s representatives to obtain excess federal tax credits and grant monies to which they were not entitled, and then to use the proceeds for their personal use and benefit. From 2006 to 2012, Greer, Boggio, and Runyan caused the submission of fraudulently inflated construction contracts on at least eight different low-income housing developments, which resulted in the allocation of at least $26 million in excess federal tax credits and grant monies. Similarly, during the course of the scheme, the conspirators made kickback payments for the benefit of Greer and others totaling at least $26 million.
According to court documents, Gonzalo DeRamon and Michael Cox of Biscayne Housing Group (“BHG”) employed the same contract inflation scheme of submitting fraudulently inflated contracts to FHFC for the receipt of excess federal tax credits and grant monies. CDG and BHG had a joint venture for two developments. From 2009 to 2012, Cox and DeRamon conspired with contractors Rene Sierra and Arturo Hevia to unjustly enrich themselves by submitting fraudulently inflated construction contracts to FHFC’s representatives to receive excess tax credits and grants. As a result of the fraudulent inflation scheme, there were more than $6.2 million in kickbacks from Sierra for the benefit of DeRamon, Cox, Greer, and Boggio; and more than $1 million in kickbacks from Hevia for the benefit of DeRamon and Cox.
During the course of this investigation, through seizure warrants and voluntary payments by the defendants, the United States has collected over $22 million in proceeds connected to the thefts of government funds.
Mr. Ferrer thanked the FBI, HUD-OIG, and IRS-CI for their work on this case. This and all related cases are being prosecuted by Assistant U.S. Attorneys Michael R. Sherwin, Michael N. Berger, Karen Rochlin, Evelyn Sheehan, and Eloisa Fernandez.
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.
Scottsbluff, Nebraska Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Scottsbluff, Nebraska, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on November 28, 2016, by U.S. District Judge Roberto A. Lange.
Rogelio (Roy) Guel, Jr., age 41, was sentenced to 63 months in custody, followed by 3 years of supervised release, a $1,000 fine, and a $100 special assessment to the Federal Crime Victims Fund.
Guel was indicted by a federal grand jury on March 15, 2016, for Conspiracy to Distribute a Controlled Substance, Possession with Intent to Distribute a Controlled Substance, and Possession of a Firearm by a Prohibited Person. He pled guilty to Conspiracy to Distribute a Controlled Substance on September 14, 2016.
Between January of 2015 and March of 2016, Guel and others conspired and agreed to knowingly and intentionally distribute methamphetamine, a Schedule II Controlled Substance, in South Dakota. Guel received distributable quantities of methamphetamine from individuals who knew that he intended to engage in further distribution of the methamphetamine. He also provided methamphetamine to others knowing that they intended to engage in further distribution of the methamphetamine within the District of South Dakota. It was reasonably foreseeable to Guel that at least 350 grams of methamphetamine would be distributed during the course of the conspiracy.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services, and the Northern Plains Safe Trials Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Guel was immediately turned over to the custody of the U.S. Marshals Service.
Pueblo Woman Indicted for Wire and Tax FraudRead the Press Release
DENVER – Kimberly Pitts, age 46, of Pueblo, Colorado was arrested last week on charges of wire fraud and filing a false tax return, Acting United States Attorney Bob Troyer, IRS Criminal Investigation Special Agent in Charge Steven Osborne, and FBI Special Agent in Charge Calvin A. Shivers announced. Pitts was indicted by a federal grand jury on November 30, 2016, which remained sealed until her arrest. Pitts appeared before a U.S. Magistrate Judge this afternoon where she was advised of her rights and the charges pending against her.
According to the indictment, Pitts was hired as the office manager for Associates of Gastroenterology, Professional Corporation (AG) in February 2011. Her duties included being entrusted with AG’s bank accounts, credit cards, and maintaining AG’s accounting ledgers. Pitts was authorized to use AG’s credit cards and funds for business purposes.
Beginning in February 2011 and continuing through May 2015, Pitts devised a scheme in which she used AG funds for her own personal use. This included using AG credit cards to make personal purchases, writing checks from AG’s bank accounts for personal use and wiring funds from AG bank accounts to various financial institutions where Pitts held personal bank accounts.
Pitts disguised many of the fraudulent transactions in AG’s accounting ledgers. On several occasions, Pitts wrote fraudulent business expenses into the accounting ledgers to conceal her use of AG funds. In January 2015, Pitts listed in the accounting ledgers that AG paid $10,000 to Colorado Springs Utilities when in fact she had wired the $10,000 to her TD Ameritrade account. In total, Pitts converted approximately $792,474 of AG’s money for her own personal use.
Additionally, in April 2015, Pitts filed a U.S. Individual Income Tax Return for the 2014 tax year with a written declaration that the return was made under the penalties of perjury, that her total income for 2014 was $88,473. When filed, Pitts knew her total income was greater than the amount she listed on the tax return.
Pitts is charged with eight counts of wire fraud and one count of false tax statement. Wire fraud carries a penalty of not more than 20 years in federal prison, and a fine of up to $250,000 per count. False tax statement carries a penalty of not more than 3 years in prison and a fine of up to $100,000.
This case is being investigated by Internal Revenue Service – Criminal Investigation (IRS CI) and the Federal Bureau of Investigation (FBI). This case is being prosecuted by Assistant U.S. Attorney Jeremy Sibert.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
Property Manager and Firm Charged with Defrauding Homeowners’ Association of $247,000Read the Press Release
NEWS RELEASE SUMMARY – December 12, 2016
SAN DIEGO – Property manager Robert Walsh and his firm, Cornerstone Management Professionals, were charged with four counts of wire fraud in connection with a scheme to defraud a homeowners’ association of $247,000. Walsh made his first appearance in court today.
The indictment alleges that Cornerstone and Walsh falsely represented that Cornerstone could properly submit bids to the homeowners’ association for construction projects, and in submitting such bids, the defendants concealed the lower bids to make it appear as if Cornerstone was the low bidder in order to be awarded the projects. The indictment seeks forfeiture of $247,000 of illegal proceeds.
The indictment further alleges that on March 26, 2015, the defendants sent an email, seeking a change order from the homeowner’s association to cover the cost of asbestos removal. According to the indictment, the defendants then sent an email to the contractor working on the project on April 28, 2015, falsely representing that there was no asbestos present in order to induce the contractor to conclude the demolition project without involving an asbestos abatement firm so that the defendants could retain the entire value of the change order.
“The public health dangers of asbestos exposure are well known,” said Jay M. Green, Special Agent in Charge of EPA’s criminal enforcement program in California. “Materials containing asbestos must be handled safely – and legally. EPA and its law enforcement partners are committed to protecting the health and safety of workers and the communities in which they live.”
“The FBI remains committed to rooting out fraud that affects homeowners in San Diego,” stated FBI Special Agent in Charge Eric S. Birnbaum. “This indictment is a stark reminder to those who reside in communities governed by Home Owners Associations (HOAs) to remain vigilant and engaged in the financial affairs of your communities.”
After his arraignment today, Robert Walsh was ordered to appear before U.S. District Judge Barry Ted Moskowitz on January 27, 2017 at 2:00 pm for a hearing on all motions. A hearing for the arraignment and status of counsel for the corporate defendant was set for December 22, 2016, at 2:00 pm before U.S. Magistrate Judge Andrew G. Schopler.
*The charges and allegations contained in the Indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Criminal Case Number 16cr2872-BTM
DEFENDANTS
Cornerstone Management Professionals, Inc. Incorporated: 2012 San Diego, California
Robert Walsh Age: 37 Ramona, California
SUMMARY OF CHARGES
Counts 1-4
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: Twenty years in prison and $250,000 fine
AGENCIES
U.S. Environmental Protection Agency, Criminal Investigation Division;
Federal Bureau of Investigation
Pocasset Man Pleads Guilty to Theft in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that NAAMAN JOE MCCOY, age 27, of Pocasset, Oklahoma, pled guilty to THEFT IN INDIAN COUNTRY, in violation of Title 18, United States Code, Sections 661 and 1152, punishable by not more than 5 years imprisonment, and up to a $250,000.00 fine or both.
The Indictment alleged that on or about September 13, 2016, in the Eastern District of Oklahoma, within Indian country, as defined in 18 U.S.C. § 1151, the defendant, an Indian, did take and carry away, with the intent to steal and purloin, the personal property of a non-Indian, with a value exceeding $1,000.00.
The charge arose from an investigation by the Choctaw Tribal police, and the Federal Bureau of Investigation.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report. The defendant will remain in custody pending a sentencing hearing.
Special Assistant United States Attorney Shelly Harrison represented the United States.
Pittsburgh Man Sentenced to Time-Served for Defrauding BanksRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to time served on his conviction of bank fraud, Acting United States Attorney Soo C. Song announced today.
United States District Judge Donetta W. Ambrose imposed the sentence on Alvin R. Simmons, 56.
According to the information presented to the court, Simmons used fraudulent personal checks to buy postage stamps at Post Offices in western Pennsylvania, and committed bank fraud upon Citizens and First Niagara banks.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
Acting United States Attorney Soo C. Song commended the U.S. Postal Inspection Service for the investigation leading to the successful prosecution of Alvin R. Simmons.
O’Kreek Woman Sentenced for Possession of MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that an O’Kreek, South Dakota, woman convicted of Possession of Methamphetamine was sentenced on November 28, 2016, by U.S. District Judge Roberto A. Lange.
Corrine Ford, age 25, was sentenced to 3 years of probation, a $1,000 fine, a special assessment of $25 to the Federal Crime Victims Fund, and the forfeiture of a pistol firearm.
Ford was indicted by a federal grand jury on September 9, 2015, for Possession of a Firearm by a Prohibited Person. She pled guilty to Possession of a Controlled Substance, charged in a Superseding Information, on September 14, 2016.
On or about July 11, 2015, Ford knowingly and intentionally possessed methamphetamine, a Schedule II Controlled Substance, in Todd County, South Dakota. On July 14, 2015, a search warrant was executed at Ford’s residence. Authorities found and seized from Ford’s vehicle a pistol firearm and ammunition. Ford denied ownership of the firearm and ammunition, and denied knowing that they were in her vehicle. Ford admitted to using methamphetamine, and other individuals confirmed that she has used methamphetamine.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services, the Federal Bureau of Investigation, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Ford was released after sentencing.
Owner of Saga Restaurants Charged with Harboring and Transporting Illegal AliensRead the Press Release
PITTSBURGH – A local restaurateur has been indicted by a federal grand jury in Pittsburgh on charges of harboring and transporting illegal aliens, Acting United States Attorney Soo C. Song announced today.
The two-count indictment, returned on Dec. 6, and unsealed today, named Xing Zheng Lin, aka Steve Lin, age 44, of McKees Rocks, Pa., as the sole defendant.
According to the indictment presented to the Court, from in and around 2009, until on or about Jan. 10, 2014, Lin harbored and transported illegal aliens who were employed at Saga Restaurant in Monroeville, Robinson, and Bethel Park, all of which were owned by Lin.
The law provides for a maximum total sentence at each count of not more than 10 years in prison for each alien, a fine of $250,000 for each alien or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
Homeland Security Investigations and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New York City Resident Pleads Guilty to Participating in Sophisticated International Cellphone Fraud SchemeRead the Press Release
A New York City resident pleaded guilty today in connection with a sophisticated global cellphone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Farintong Calderon, 37, 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. Sentencing was set for Feb. 21, 2017, before Senior U.S. District Judge Daniel T.K. Hurley of the Southern District of Florida.
According to the plea agreement, Calderon 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. Calderon formerly worked for Verizon Wireless installing cellphone towers and equipment and, after leaving his employer, moved to New York City and became involved in the fraud scheme as a “line” supplier. Specifically, Calderon provided his co-conspirators with telecommunications identifying information associated with the accounts of customers of Verizon and other wireless companies. His co-conspirators used that data—as well as other software and hardware—to reprogram cellphones that they controlled. Calderon’s co-conspirators would then transmit thousands of international calls over the Internet 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.
In addition, Calderon admitted that, from approximately 2010 to 2013, he sent or received emails to co-conspirators with at least 1,408 combinations of telecommunication identifying information for specific cellphone devices or accounts belonging to persons around the United States, and was personally responsible for at least $250,000 in loss resulting from the scheme.
Calderon is the third defendant to plead guilty in the case. Edwin Fana and Jose Santana previously pleaded guilty to similar charges in this matter. Fana is scheduled to be sentenced on Dec. 22, 2016, and Santana is scheduled to be sentenced on Jan. 4, 2017.
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.
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.
New York City Resident Pleads Guilty to Participating in Sophisticated International Cellphone Fraud SchemeRead the Press Release
A New York City resident pleaded guilty today in connection with a sophisticated global cellphone 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.
Farintong Calderon, 37, 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. Sentencing was set for Feb. 21, 2017, before Senior U.S. District Judge Daniel T.K. Hurley of the Southern District of Florida.
According to the plea agreement, Calderon 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. Calderon formerly worked for Verizon Wireless installing cellphone towers and equipment and, after leaving his employer, moved to New York City and became involved in the fraud scheme as a “line” supplier. Specifically, Calderon provided his co-conspirators with telecommunications identifying information associated with the accounts of customers of Verizon and other wireless companies. His co-conspirators used that data—as well as other software and hardware—to reprogram cellphones that they controlled. Calderon’s co-conspirators would then transmit thousands of international calls over the Internet 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.
In addition, Calderon admitted that, from approximately 2010 to 2013, he sent or received emails to co-conspirators with at least 1,408 combinations of telecommunication identifying information for specific cellphone devices or accounts belonging to persons around the United States, and was personally responsible for at least $250,000 in loss resulting from the scheme.
Calderon is the third defendant to plead guilty in the case. Edwin Fana and Jose Santana previously pleaded guilty to similar charges in this matter. Fana is scheduled to be sentenced on Dec. 22, 2016, and Santana is scheduled to be sentenced on Jan. 4, 2017.
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.
New Century Coal Fraud Ends in Lengthy Prison Sentences for Ten IndividualsRead the Press Release
GREENEVILLE, Tenn. – U.S. District Judge J. Ronnie Greer has sentenced 10 men to a collective total of 284 months in federal prison for their roles in the operation of a fraudulent investor scheme which defrauded 168 investors of more than $14 million dollars. The judge also ordered terms of supervised release by the U.S. Probation office, special assessments and $14,092,205 in restitution to the victims of the scheme.
The 10 men and their prison sentences include: Brian C. Rose, 37, Piney Flats, Tenn., 108 months; Hugh Sackett, 86, Anderson, S.C., 12 months; Robert McGregor, 38, Bowling Green, Ky., 12 months; Johnny D. Phillips, 35, Bowling Green, Ky., 30 months; Dallas McRae, 46, Orlando, Fla., 24 months; Thomas Berry, 36, Bowling Green, Ky., 27 months; Jason Smith, 41, Franklin, Ky., 27 months; David Rose, 66, Louisville, Ky., 18 months; Jim Robinson, 57, New Albany, Ind., two months; and Brent Loveall, 33, Louisville, Ky., 24 months.
Brian Rose led New Century Coal, which advertised that it developed Blue Gem coal, a special type of coal used in the manufacture of computer electronics. New Century Coal staff sold shares in nine different limited partnerships and falsely represented the existence of coal reserves, profitability, and ownership of the coal mines. No coal was ever developed and 90 percent of the investor funds was diverted to support the extravagant lifestyles of the men referenced above, including thoroughbred horses, multiple homes, ARCA Truck Racing, and extensive travel.
U.S. Attorney Nancy Stallard Harr said, “As a result of the investigation efforts and joint aggressive collection by the federal agencies involved with this case, the Department of Justice expects to be able to return some of what they lost to the victims of this fraud.” U.S. Attorney Harr added that federal agents seized homes, cars, horses, cash, and personal property which was purchased with investor funds.
Agencies involved in this investigation included the U.S. Secret Service, Federal Bureau of Investigation, Internal Revenue Service - Criminal Investigations, and Securities & Exchange Commission Enforcement Division. Assistant U.S. Attorneys Helen Smith, Corey Shipley, and Anne-Marie Svolto represented the United States.
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Morgantown man sentenced for synthetic marijuana distribution, money launderingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Daniel Kocan, 59, of Morgantown, West Virginia, was sentenced in federal court today to 108 months in prison for synthetic marijuana distribution and money laundering charges, United States Attorney William J. Ihlenfeld, II, announced.
Kocan was the owner of Mid Nite Adult in Morgantown, West Virginia where he sold synthetic cannabinoids, commonly referred to as “spice”, “K2”, “incense”, or “fake weed” for nearly two years. Synthetic cannabinoids are designer drugs that resemble a controlled substance in molecular structure and actual or intended physiological effect.
He pled guilty in July 2016 to one count of “Conspiracy to Distribute Synthetic Cannabinoids and Schedule I Controlled Substance Analogue,” and one count of “Engaging in a Monetary Transaction with Cash Derived from Specified Unlawful Activity.”
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force, a HIDTA-funded initiative, and the Three Rivers Drug Task Force investigated.
U.S. District Judge John Preston Bailey presided.
Mission Man Sentenced for Possession with Intent to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on December 6, 2016, by U.S. District Judge Roberto A. Lange.
Robert Chauncey, age 66, was sentenced to 25 months in custody, followed by 6 years of supervised release, a $1,000 fine, forfeiture of $1,701.63, and a special assessment of $100 to the Federal Crime Victims Fund.
Chauncey was indicted by a federal grand jury on November 10, 2015. He pled guilty to Possession with Intent to Distribute a Controlled Substance (methamphetamine), on September 14, 2016.
The conviction stemmed from a traffic stop on December 2, 2014, in which the Rosebud Sioux Tribe Law Enforcement Services stopped a vehicle owned and driven by Chauncey. Marijuana, methamphetamine, drug paraphernalia and digital scales, as well as $1,701.63 in United States currency, was found on Chauncey’s person. Chauncey admitted that he intended to distribute the 11.89 grams of methamphetamine, a Schedule II Controlled Substance, within the State of South Dakota.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Chauncey was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Sentenced for Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Domestic Assault by an Habitual Offender was sentenced on December 5, 2016, by U.S. District Judge Roberto A. Lange.
Thomas Small Bear, age 42, was sentenced to 33 months in custody, followed by 3 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Small Bear was indicted by a federal grand jury on December 8, 2015. He pled guilty on September 8, 2016.
The conviction stemmed from an incident that occurred on November 17, 2015. Small Bear had been drinking with his girlfriend and some friends at his residence in the Ring Thunder Community. At one point, Small Bear and his girlfriend gave a ride to another friend. While still in the vehicle, Small Bear’s girlfriend confronted him about sending text messages to other women. Small Bear got angry, grabbed her and started punching her in the face and kicking her. As a result of the incident, Small Bear’s girlfriend suffered a cut, bruising, and a bump on the left side of her face. At the time of this incident, Small Bear had three prior convictions in Rosebud Sioux Tribal Court for Domestic Abuse. He also had a prior conviction in federal court for Domestic Assault by an Habitual Offender, and was on federal probation when he committed the offense on November 17, 2015.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Small Bear was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Sentenced for Domestic Assault by an Habitual OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Domestic Assault by an Habitual Offender was sentenced on December 6, 2016, by U.S. District Judge Roberto A. Lange.
Jodie Brave, age 46, was sentenced to 27 months in custody, followed by 2 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Brave was indicted by a federal grand jury on January 21, 2016. He pled guilty on September 14, 2016.
The conviction stemmed from an incident that occurred on December 1, 2015, wherein Brave assaulted his son at their home in Mission. Brave had been drinking and got in an argument with his domestic partner. At some point Brave began assaulting his domestic partner, and Brave’s son tried to intervene and stop the assault. Brave retaliated by pushing his son to the floor. At the time of this incident, Brave had two prior convictions in Rosebud Sioux Tribal Court for Domestic Abuse, and was on federal supervised release.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Brave was immediately turned over to the custody of the U.S. Marshals Service.
Milford Realtor Sentenced to 97 Months for Fraudulant Investment SchemeRead the Press Release
CINCINNATI – Brenda Ashcraft, 46, of Milford, Ohio was sentenced to 97 months in prison and ordered to pay restitution to 34 victims of a fraudulent investment scheme she operated between 2009 and 2013. The victims lost more than $4.2 million according to government calculations.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio; Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI); Mark Porter, Special Agent in Charge, U.S. Secret Service and Jacqueline T. Williams, Director of the Ohio Department of Commerce, announced the sentence imposed today by Senior U.S. District Judge Sandra S. Beckwith.
According to court documents, Ashcraft operated a “Ponzi scheme” through her real estate company called French Manor Properties. Ashcraft would tell prospective investors that she had relationships with various banks which provided her with exclusive access to properties in foreclosure.
Ashcraft said she identified properties that she could purchase for a small amount from the bank, and also had a buyer for a much higher price, allowing for a quick and sizable profit. Ashcraft asked investors to contribute funds towards the initial purchase of the property, and the funds plus a large profit would be returned in approximately 2-3 months. These representations were false.
Bank records show that Ashcraft did not use investment funds to buy any properties. Ashcraft used the money to pay back earlier investors who were seeking the return of their money. Ashcraft also used the stolen funds to pay for personal expenses, including numerous trips to Cancun and Diamond Seat tickets to the Cincinnati Reds.
Ashcraft created a fake employee for her company to handle investor complaints and sent emails to investors and to herself under the fake name. Ashcraft also remotely “wiped” the contents of a cell phone FBI agents seized during the investigation in an attempt to hide the fraud.
“This case is an example of the harm that financial fraud causes,” U.S. Attorney Glassman said. “She preyed on friends, family, and the relationships she developed with other parents at her kids’ school. It's important to punish crimes like this with significant sentences, not only to achieve some measure of justice for the victims, but also to deter others who might be tempted to commit similar crimes.”
Ashcraft pleaded guilty in April 2015 to one count of wire fraud, one count of securities fraud one count of destruction of evidence, and one count of money laundering.
Glassman commended the cooperative investigation of this case by FBI and Secret Service agents, Ohio Department of Commerce, Division of Securities staff, and Assistant U.S. Attorney Timothy Mangan and Deputy Criminal Chief Emily Glatfelter, who prosecuted the case.
Mexican National Sentenced to 135 Months in Prison for Conspiring to Launder $20 Million in Drug Trafficking ProceedsRead the Press Release
Assistant U. S. Attorney Larry Casper (619) 546-6734
NEWS RELEASE SUMMARY – December 12, 2016
SAN DIEGO –A Culiacan, Mexico, man was sentenced today to 135 months in prison for conspiring to launder $20 million worth of drug trafficking proceeds.
Joel Acedo-Ojeda, 32, was sentenced today by U.S. District Judge Roger T. Benitez, who also ordered Acedo-Ojeda to forfeit $20 million and to pay a fine of $20,000. Acedo-Ojeda pleaded guilty to conspiracy to commit international money laundering on June 23, 2015.
According to admissions made in connection with his guilty plea, between approximately April 2013 and April 2015, Acedo-Ojeda and his co-conspirators coordinated the smuggling of $20 million in bulk U.S. currency, which he knew to be the proceeds of drug trafficking, from the United States to Mexico. Upon arrival in Mexico, the bulk currency was transferred to the drug smugglers who were supplying the narcotics either directly or by being smuggled back into the United States, placed into the financial system and then wired back into Mexico.
At sentencing, Assistant U.S. Attorney Larry Casper told the court that Acedo-Ojeda is believed to have laundered funds for Sinaloa Cartel drug traffickers. The Sinaloa Cartel is one of the most notorious drug trafficking organizations operating in Mexico and imports and distributes hundreds of tons of cocaine, methamphetamine and marijuana into the United States each year. Casper also noted that the investigation of this matter resulted in the seizure by U.S. law enforcement of more than $5 million dollars in United States currency as well as several hundred pounds each of cocaine and methamphetamine.
“Those who launder drug monies to further the flow of narcotics that have a devastating impact on our communities and citizens should pay a stiff price” said U.S. Attorney Laura Duffy. “We will continue to aggressively pursue those individuals, wherever they may be located, who attempt to employ any means, financial or otherwise, in aid of efforts to move narcotics through our Southwestern border.”
“HSI is committed to stopping the flow of illicit drug proceeds across our borders that fill the coffers of the world’s most violent drug trafficking organizations,” said Michael Carney, acting special agent in charge of ICE Homeland Security Investigations (HSI) in San Diego. “Today’s sentencing highlights the commitment of HSI and our agents to bring these international money launderers to justice.”
HSI investigated the case. Assistant U.S. Attorney Larry Casper of the Southern District of California and Senior Trial Counsel Mark Irish of the Criminal Division’s Asset Forfeiture and Money Laundering Section.
DEFENDANTS Case Number 15cr0950-BEN
Joel Acedo-Ojeda Age: 32 Culiacan, Mexico
SUMMARY OF CHARGES
Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h).
Maximum Penalties: 20 years in prison; $500,000 fine or twice the value of the funds involved in the offense.
AGENCY
Homeland Security Investigations
Mexican National Sentenced to 135 Months in Prison for Conspiring to Launder $20 Million in Drug Trafficking ProceedsRead the Press Release
A Culiacan, Mexico, man was sentenced today to 135 months in prison for conspiring to launder $20 million worth of drug trafficking proceeds.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura Duffy of the Southern District of California and Acting Special Agent in Charge Michael Carney of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) made the announcement.
Joel Acedo-Ojeda, 32, was sentenced today by U.S. District Judge Roger T. Benitez of the Southern District of California, who also ordered Acedo-Ojeda to forfeit $20 million and to pay a fine of $20,000. Acedo-Ojeda pleaded guilty to conspiracy to commit international money laundering on June 23, 2015.
According to admissions made in connection with his guilty plea, between approximately April 2013 and April 2015, Acedo-Ojeda and his co-conspirators coordinated the smuggling of $20 million in bulk U.S. currency, which he knew to be the proceeds of drug trafficking, from the United States to Mexico. Upon arrival in Mexico, the bulk currency was transferred to the drug smugglers who were supplying the narcotics either directly or by being smuggled back into the United States, placed into the financial system and then wired back into Mexico.
At sentencing, the government told the court that Acedo-Ojeda laundered funds for drug traffickers associated with the Sinaloa Cartel, one of the most notorious drug trafficking organizations operating in Mexico that imports and distributes hundreds of tons of cocaine, methamphetamine and marijuana into the United States each year. As a result of the investigation, law enforcement seized more than $5 million dollars in U.S. currency as well as several hundred pounds each of cocaine and methamphetamine.HSI investigated the case. Senior Trial Counsel Mark Irish of the Criminal Division’s Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorney Larry Casper of the Southern District of California prosecuted the case.
McLaughlin Man Charged with First Degree Murder, Second Degree Murder, Assault Resulting in Serious Bodily Injury to a Child, and Child AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that a McLaughlin, South Dakota, man has been charged with the federal offenses of First Degree Murder, Second Degree Murder, Assault Resulting in Serious Bodily Injury to a Child, and Child Abuse by a Superseding Indictment filed October 18, 2016.
Matthew St. Pierre, appeared before U.S. Magistrate Judge William D. Gerdes on December 6, 2016, and pled not guilty to the Superseding Indictment.
The maximum penalty upon conviction is a mandatory sentence of life imprisonment and/or a $1,000,000 fine, 5 years of supervised release, and $400 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Superseding Indictment alleges that on or about between October 11th and October 12th, 2016, St. Pierre repeatedly struck a child, causing injuries which led to the child’s death. It is further alleged that such acts resulted in serious bodily injury to the child and were committed while St. Pierre was committing the act of Felony Child Abuse.
The charges are merely accusations and St. Pierre is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs – Standing Rock Agency and the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
St. Pierre was remanded to the custody of the U.S. Marshals Service pending trial, which is set for February 6, 2017.
Maryland Man Indicted for Conspiracy to File False Claims, Wire Fraud, Aggravated Identity Theft and False PersonationRead the Press Release
A federal grand jury sitting in Washington D.C. returned an indictment on Dec. 7, which was unsealed today, charging a Maryland resident with conspiracy to file false claims, wire fraud, aggravated identity theft, and false personation, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
Anthony Ferguson of Temple Hills, Maryland, was arrested on the charges Dec. 8 and had his initial court appearance today before U.S. District Court Judge Royce C. Lamberth, who ordered him held without bond. According to the indictment, from January 2012 through May 2016, Ferguson participated in a stolen identity refund fraud conspiracy. Ferguson and his co-conspirators obtained personal identifying information from several sources and used those identities to file fraudulent tax returns and obtain false refunds from the Internal Revenue Service (IRS). The indictment also alleges that in 2016, Ferguson pretended to be a Treasury Department employee and sent text messages to a witness in an attempt to obtain the details of an ongoing criminal investigation into his conduct.
If convicted, Ferguson faces a statutory maximum sentence of 10 years in prison for conspiring to file false claims for refund, a maximum sentence of 20 years in prison for each count of wire fraud, a mandatory sentence of two years in prison for each count of aggravated identity theft and a maximum sentence of three years in prison for false personation. In addition, Ferguson faces a term of supervised release, restitution and monetary penalties.
An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Ciraolo thanked agents of IRS-Criminal Investigation and Treasury Inspector General for Tax Administration (TIGTA), who conducted the investigation, and Trial Attorneys Mark McDonald and Sean Green of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Lake Mary Man Pleads Guilty to Investment FraudRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Irwin Charles Ager (84, Lake Mary) has pleaded guilty to conspiracy to commit mail fraud and wire fraud. He faces a maximum penalty of 20 years in federal prison. Ager has agreed to pay more than $10.3 million in restitution to his victims. His sentencing hearing has been set for February 17, 2017.
According to court documents, Ager and his conspirators defrauded over 200 victims out of more than $10.3 million through investments offered in connection with a company called Tri-Med Corporation. Ager was one of the Marketing Directors for Tri-Med Associates, the “marketing arm” of Tri-Med. He was responsible for soliciting investors, as well as recruiting and managing many of the sales people who sold investments in Tri-Med.
The investment fraud scheme involved the alleged purchase of medical receivables by Tri-Med related to services provided to accident victims represented by personal injury attorneys. Payment of those medical receivables was supposed to be made from the proceeds of litigation or an insurance claim made against a general liability or automobile insurance policy. Each of the medical receivables was supposed to be secured by a “letter of protection,” provided by a patient’s personal injury attorney to a medical services professional as an incentive to provide services to a patient. A letter of protection is a contract involving a patient, the patient's attorney, and the medical services provider where the patient and attorney agree to pay all or part of the total billed by the medical services provider from the proceeds of any pre-suit settlement, lawsuit settlement, or judgment that the patient may obtain.
To fund Tri-Med’s alleged purchases of medical receivables, Ager and his conspirators solicited individuals to participate in an “investment program” where investors’ money would be used by Tri-Med to buy medical receivables “backed” by letters of protection. As part of their solicitations, Ager and his conspirators represented to investors that that their investments were safe and that investor funds would be held in a trust account that was controlled by an attorney. To assure investors that their investments were secure, Tri-Med claimed that it would transfer its interest in the letter of protection to the investor in a document called an “Assignment of Interest Certificate.”
Those representations were false. Of the more than $17 million raised from over 200 investors, only approximately $2.7 million was ever transferred from Tri-Med to the attorney’s trust account. The majority of the funds raised from investors never made it to that account. Over $6.5 million was paid to the sales people and the operators of Tri-Med or was used by them to benefit themselves or pay business expenses. Approximately $2.3 million was paid as distributions to investors to make them believe that their investments were profitable. In fact, Tri-Med did not purchase enough medical receivables to secure the incoming investments, so it fabricated “Assignment of Interest Certificates.”
Ager’s brother, Eric Leon Ager (78, Stuart) has also been charged with conspiracy. If convicted, he faces a maximum penalty of 20 years in federal prison. His trial is set for February 2017.
This case was investigated by the United States Secret Service and the State of Florida’s Office of Financial Regulation. It is being prosecuted by Assistant United States Attorneys Shawn P. Napier and Roger B. Handberg.
KCK Man Pleads Guilty to Enticing a Minor for Sex, Faces at Least 10 Years in PrisonRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Kan., man pleaded guilty in federal court today to enticing a child victim, whom he met online, into engaging is illegal sexual activity.
Nathan R. Caylor, 42, of Kansas City, pleaded guilty before U.S. District Judge Gary A. Fenner to one count of enticing a minor to engage in illegal sexual activity and one count of receiving child pornography.
By pleading guilty today, Caylor admitted that he communicated online with a 14-year-old victim, identified in court documents at “Jane Doe,” and traveled to her home to engage in sexual intercourse on at least eight separate occasions.
Caylor initially contacted Jane Doe in May 2013. He used the false name “Justin” and told her he was 17 years old. They exchanged photos of each other electronically and communicated via Skype. Caylor told Jane Doe that he had been diagnosed with cancer when he was 14 years old and that the chemotherapy and radiation he had to undergo for cancer made him look older. In reality, Caylor had never been diagnosed with cancer.
Caylor eventually turned the topic of their communications to graphic conversations of a sexual nature and made arrangements to meet Jane Doe in person. Caylor traveled to her home for the first time in November 2013 when her parents were not home. Between May 2013 and July 2014 Caylor also electronically sent pornographic photos of himself to Jane Doe.
In July 2014 the Blue Springs, Mo., Police Department was notified about Caylor’s contact with Jane Doe. A Blue Springs detective assumed Jane Doe’s identity on Facebook and began communicating with Caylor. Caylor asked if he could visit, and was told that her parents were not home. Caylor told Jane Doe that he would see her that same day. He traveled by bus from Kansas City, Kan., to Independence, Mo., then walked several miles to her home. Caylor was arrested while he was walking to the victim’s home.
Investigators also found images of child pornography on Caylor’s computer, including images of a 3-to-4-year-old victim and a 10-to-12-year-old victim.
Under federal statutes, Caylor is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the Blue Springs, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
KC Woman Sentenced for Pharmacy Robberies, Fake Oxycodone PrescriptionsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was sentenced in federal court today for her role in conspiracies to pass fraudulent prescriptions and to steal thousands of oxycodone pills in a series of pharmacy robberies.
Danielle Bradbury, 27, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to five years and 10 months in federal prison without parole.
On May 23, 2016, Bradbury pleaded guilty to participating in a conspiracy to distribute Oxycodone and to participating in a conspiracy to commit robbery. Bradbury admitted that she was involved with others in passing numerous fraudulent prescriptions for oxycodone from May 1, 2013, to July 16, 2015, and either using or distributing those pills for money. Once it became more difficult to fill those fraudulent prescriptions, Bradbury agreed with others to begin robbing pharmacies in the metro area for oxycodone.
Bradbury specifically admitted that she participated in the robbery of a Walgreens pharmacy at 1191 W. Kansas St., Liberty, Mo., on June 9, 2015. In that robbery, a female conspirator loitered briefly in the store, asked where the tampons were located, and then left the store without making a purchase. At approximately 3:49 a.m., Bradbury and a co-conspirator entered the store wearing hooded sweatshirts and hospital surgical-style masks and gloves. They made their way directly to the pharmacy, where they jumped over the pharmacy counter, grabbed the pharmacist by the shirt, and forced him to identify where the oxycodone was stored and unlock the shelf. During this time the pharmacist reported that the male suspect held him by the shirt collar from behind and was holding something in the small of the victim’s back that the victim perceived to be a gun. The pharmacist did not actually see a weapon. The suspects then removed approximately 2,911 oxycodone pills of various strengths from the shelves and placed them into plastic Walgreens shopping bags that they removed from the counter. The suspects then fled the store through a rear exit.
According to court documents, conspirators were also responsible for robing the Walgreens at 2630 N.E. Vivion Rd., Kansas City, Mo., on May 5, 2015, and a Walgreens at 3915 S. Noland Rd., Independence, Mo., on May 16, 2015. Conspirators attempted to rob the Independence Walgreens again on Sept. 9, 2015, but were detained by store personnel until officers arrived and arrested co-defendants Melinda Backhus, 24, of Gladstone, Mo., and Julian King, 22, of Kansas City, Mo. The getaway driver, Aaron Anderson, 26, of Kansas City, Mo., fled the scene before officers arrived.
Bradbury is the third defendant to plead guilty and be sentenced in this case. Anderson was sentenced to four years and three months in federal prison without parole. Backhus was sentenced to three years in federal prison without parole. Co-defendants Austin T. Bradbury (Danielle Bradbury’s husband), 27, Christa M. O’Dell, 21, and Matthew Larson, 25, all of Kansas City, Mo., and Michael C. Bellinghausen, 33, and Tara D Childress, 31, both of Gladstone, have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Kansas City, Mo., Police Department and the FBI.
KC Woman Sentenced for Her Role in $1.2 Million Oxycodone ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was sentenced in federal court today for her role in a $1.2 million conspiracy to distribute oxycodone that was obtained by using forged and fraudulent prescriptions.
Michelle C. Newton, 46, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays to three years and 10 months in federal prison without parole.
On June 23, 2016, Newton pleaded guilty to participating in a conspiracy from Dec. 6, 2013, to January 2016 to distribute, and to possess with the intent to distribute, oxycodone. Conspirators obtained prescription-quality paper commonly used by authorized health care providers to write prescriptions. They also obtained the DEA registration numbers of health care providers, which they used to prepare fraudulent prescriptions for oxycodone.
Conspirators took the false prescriptions to pharmacies in Kansas City, Drexel, Riverside, Independence, Lee’s Summit, Blue Springs, Kearney, Butler, Odessa, Higginsville and Nevada, Mo. Conspirators commonly sold the oxycodone 30mg pills for between $15 to $25 per pill.
According to court documents, Newton’s role in the conspiracy was primarily as a “runner” – she was responsible for taking the false prescriptions for oxycodone to a pharmacy, attempting to pass the false prescriptions and obtain oxycodone. Newton then returned some or all of the oxycodone to others in the conspiracy; in exchange, she received either cash and/or a portion of the oxycodone pills.
Newton was arrested when she attempted to pass a false prescription at a Walgreens at 3845 Broadway, Kansas City, Mo., on Dec. 20, 2013.
Newton is the first defendant to be sentenced in this case. Four co-defendants have pleaded guilty so far, including Katherine E. Beaven, 33, Felicita A. San Miguel, also known as “Cassandra Jasso,” “Susan Hernandez,” and “Sarah Buckner,” 38, and Jermaine C. Brooks, 29, all of Kansas City, Mo., and Christopher J. Neale, 27, of Harrisonville, Mo.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by the Kansas City, Mo., Police Department, the Drug Enforcement Administration, the Missouri State Highway Patrol, and the police departments of Riverside, Blue Springs, Independence, Kearney, Odessa, Nevada, Higginsville, Drexel Lee’s Summit and Butler.
Justice Department Wins Breach of Contract Lawsuit Against Nebraska-Based Meat Packing CompanyRead the Press Release
The Justice Department announced today that on Dec. 9, 2016, the U.S. District Court for the District of Nebraska ruled in the department’s favor in its breach of contract claim against Nebraska Beef Ltd., a meat packing company based in Omaha.
In October 2015, the department filed a lawsuit against Nebraska Beef claiming that the company had refused to comply with several terms of the parties’ settlement agreement. In August 2015, the parties had entered into an agreement to resolve the department’s investigation into whether Nebraska Beef was discriminating against work-authorized immigrants. When Nebraska Beef refused to pay the agreed-upon $200,000 civil penalty and initiate the required backpay claims process, the United States filed suit to enforce the agreement. On Friday, the court ordered the company to pay the $200,000 it owed and comply with all of the terms of the agreement.
“The department looks forward to working with Nebraska Beef to ensure that it complies with all of the provisions of the settlement agreement,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The court’s ruling, and the underlying agreement, further our efforts to protect the federal employment rights of individuals with legal authorization to work in the United States.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices in employment eligibility verification; retaliation and intimidation.To learn more about the protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected] or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to: different documentary requirements based on their citizenship, immigration status or national origin; or discrimination based on their citizenship, immigration status or national origin in hiring, firing or recruitment or referral, should contact the OSC worker hotline for assistance.
Justice Department Opens Investigation into Hampton Roads Regional Jail in Portsmouth, VirginiaRead the Press Release
The Justice Department announced today that it has opened an investigation into the conditions at the Hampton Roads Regional Jail in Portsmouth, Virginia.
The investigation will focus on whether the jail violates the constitutional rights of inmates to adequate medical and mental health care; violates the constitutional rights of inmates who have mental illness by secluding them in isolation for prolonged time periods; and violates the rights of inmates who have mental illness by denying them access to services, programs and activities because of their disability.
“All prisoners, including those with mental illness, have a constitutional right to receive necessary medical care, treatment and services,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The Justice Department will conduct a thorough investigation, led by the facts and the law, to review conditions in the jail.”
“We are committed to protecting the civil rights of all citizens, including those who are incarcerated,” said U.S. Attorney Dana J. Boente of the Eastern District of Virginia. “Prisoners with mental illness are a particularly vulnerable population, and their rights must be safeguarded. We look forward to conducting a full and fair investigation of this matter in partnership with the Civil Rights Division.”
The department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA) and under Title II of the Americans with Disabilities Act (ADA). Under CRIPA, the department has the authority to investigate violations of prisoners’ constitutional rights that result from a “pattern or practice of resistance to the full enjoyment of such rights.” The department has conducted CRIPA investigations of many correctional systems, and where violations have been found, the resulting settlement agreements have led to important reforms.
The Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office of the Eastern District of Virginia are conducting this investigation. Individuals with relevant information are encouraged to contact the department via phone at 844-664-0225 or by email at [email protected].
Justice Department Files Suit Against Culpeper County, Virginia, for Blocking Mosque ConstructionRead the Press Release
The Justice Department filed a lawsuit today against Culpeper County, Virginia, alleging that the county violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it denied a sewage permit application to the Islamic Center of Culpeper (ICC), effectively preventing the ICC from building a small mosque on land that it had purchased in the county. The land is located in a zoning district where religious land use is permitted by right.
The complaint, filed in the U.S. District Court for the Western District of Virginia, alleges that the county imposed a substantial burden on the Muslim congregation’s exercise of religion and discriminated against the ICC based on religion when it refused to grant a “pump and haul” permit to allow the ICC to transport sewage from the ICC’s property to a point of disposal. The county had told the ICC that such a permit was necessary because its soil, like much soil in the area, could not support a septic system. The complaint alleges that since 1992, the county has considered 26 applications and never denied a pump and haul permit to a commercial or religious use prior to the ICC.
“The Constitution and federal law specifically protect the freedom of religious communities to establish houses of worship,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The Justice Department will continue to work tirelessly to protect every person’s right to assemble for religious exercise.”
“Religious liberty is a fundamental right in our country and this case seeks to uphold that right,” United States Attorney John P. Fishwick Jr. of the Western District of Virginia said today. “We will continue to work with the experienced lawyers with the Civil Rights Division of the Department of Justice to protect the residents of the Western District of Virginia from unlawful discrimination.”RLUIPA, enacted in 2000, contains multiple provisions prohibiting religious discrimination and protecting against unjustified burdens on religion exercise. Persons who believe that they been subjected to religious discrimination in land use or zoning may contact the Housing and Civil Enforcement Section of the Justice Department’s Civil Rights Division at 1-800-896-7743.
More information about RLUIPA, including a 2016 report on the Department of Justice’s enforcement of this important law, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Justice Department Files Suit Against Culpeper County, Virginia, for Blocking Mosque ConstructionRead the Press Release
The Justice Department filed a lawsuit today against Culpeper County, Virginia, alleging that the county violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it denied a sewage permit application to the Islamic Center of Culpeper (ICC), effectively preventing the ICC from building a small mosque on land that it had purchased in the county. The land is located in a zoning district where religious land use is permitted by right.
The complaint, filed in the U.S. District Court for the Western District of Virginia, alleges that the county imposed a substantial burden on the Muslim congregation’s exercise of religion and discriminated against the ICC based on religion when it refused to grant a “pump and haul” permit to allow the ICC to transport sewage from the ICC’s property to a point of disposal. The county had told the ICC that such a permit was necessary because its soil, like much soil in the area, could not support a septic system. The complaint alleges that since 1992, the county has considered 26 applications and never denied a pump and haul permit to a commercial or religious use prior to the ICC.
“The Constitution and federal law specifically protect the freedom of religious communities to establish houses of worship,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “The Justice Department will continue to work tirelessly to protect every person’s right to assemble for religious exercise.”
“Religious liberty is a fundamental right in our country and this case seeks to uphold that right,” United States Attorney John P. Fishwick Jr. of the Western District of Virginia said today. “We will continue to work with the experienced lawyers with the Civil Rights Division of the Department of Justice to protect the residents of the Western District of Virginia from unlawful discrimination.”RLUIPA, enacted in 2000, contains multiple provisions prohibiting religious discrimination and protecting against unjustified burdens on religion exercise. Persons who believe that they been subjected to religious discrimination in land use or zoning may contact the Housing and Civil Enforcement Section of the Justice Department’s Civil Rights Division at 1-800-896-7743.
More information about RLUIPA, including a 2016 report on the Department of Justice’s enforcement of this important law, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Culpeper ComplaintInmate at USP Pleads Guilty to Possessing MethamphetamineRead the Press Release
ABINGDON, VIRGINIA – A federal inmate at United States Penitentiary at Lee County, Virginia, pled guilty today to illegal possessing of a prohibited item, United States Attorney John P. Fishwick Jr. announced.
Antonio Stitt, 37, waived his right to be indicted and pled guilty to a one count Information charging him with knowingly possessing a prohibited object, methamphetamine.
“Methamphetamine is a dangerous and addictive substance that ruins the lives of users,” United States Attorney Fishwick said today. “This sort of drug has absolutely no place inside the walls of a prison and anyone who brings meth, or other illegal substances inside prison walls, will be held accountable.”
At sentencing, Gillom faces up to twenty years in prison and a fine of $250,000.
The investigation of the case was conducted by the United States Bureau of Prisons and the Bristol office of the Federal Bureau of Investigations. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Gulf Breeze Attorney Pleads Guilty to Bank Fraud, Embezzlement, and Money Laundering ChargesRead the Press Release
PENSACOLA, FLORIDA – Richard Michael Colbert, 55, of Pensacola Beach, pled guilty last week to 13 felony counts, including one count of conspiracy to commit bank fraud and/or mail fraud affecting a financial institution, one count of false statement to a federally insured financial institution, nine counts of money laundering, and two counts of theft, embezzlement or misapplication by a person connected with a financial institution. The guilty plea was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Colbert pled guilty surrounding conduct he committed while he was the manager of Beach Title Services, a subsidiary of Beach Community Bank. That is, Colbert participated in a scheme to defraud and obtain money and/or property by fraudulent means from the federally insured financial institutions Bank of America, Beach Community Bank, and, the now defunct, Premier Community Bank. As a part of the scheme, Colbert signed and submitted false HUD-1s to Bank of America and Beach Community Bank. Colbert also signed and submitted a false HUD-1 to the now defunct GulfSouth Private Bank so former builder Lawrence Wright could obtain a loan. Additionally, while acting as an escrow agent for Beach Community Bank, Colbert embezzled and misapplied funds being held at Beach Community Bank. Thereafter, Colbert conducted a series of financial transactions, thereby laundering the funds he had embezzled.
For each of the conspiracy, false statement, and theft/embezzlement/misapplication of funds charges, Colbert faces a maximum of 30 years in prison. For each of the money laundering charges, Colbert faces a maximum of 10 years in prison.
Colbert is scheduled to be sentenced on March 2, 2017, at the U.S. Courthouse in Pensacola.
The case was investigated by Internal Revenue Service-Criminal Investigation with assistance from the Federal Bureau of Investigation, Federal Deposit Insurance Corporation-Office of Inspector General, and the Okaloosa County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney Tiffany H. Eggers.
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Fort Thompson Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on November 28, 2016, by U.S. District Judge Roberto A. Lange.
Jordan Traversie, age 26, was sentenced to 12 months and a day in custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Traversie was indicted by a federal grand jury on July 19, 2016. He pled guilty on September 14, 2016.
The conviction stemmed from an incident wherein Traversie failed to register as a sex offender from June 1, 2016, and June 14, 2016. Traversie was initially convicted in federal court in 2014 for Sexual Abuse of a Minor and was sentenced to 18 months of custody, as well as being required to register as a sex offender. After being released from prison, he updated his registration several time as required. But on Mother’s Day weekend 2016, he went to Sioux Falls to visit his mother, and was told by his probation officer that if he planned on staying in Sioux Falls, he would need to register an address. Traversie understood his requirement, stayed in Sioux Falls but did not register.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Traversie was immediately turned over to the custody of the U.S. Marshals Service.
Former President of St. Louis Law Enforcement Officer Association Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – Darren Randal Wilson was sentenced to 12 months and one day in federal prison, and a three-year term of supervised release, for his misappropriation of over $80,000 from the Ethical Society of Police.
As part of the guilty plea in September, Wilson acknowledged that he abused his position of public and private trust. He agreed to a money judgment against him of $80,934, to account for the losses to ESOP associated with the fraud scheme. He also agreed to surrender his law enforcement certification and to no longer work or seek employment as a law enforcement officer.
According to court documents, Wilson was president of the Ethical Society of Police (ESOP) in 2013 and 2014. As president of ESOP, Wilson had access to funds in the ESOP bank account, which consisted primarily of the monthly dues contributed by the police officer members of ESOP.
Between July 2013 and December 2014, Wilson engaged in a fraud scheme to misappropriate money from the ESOP bank account and to use the money for his own purposes, including funding his business promoting comedy shows featuring nationally known comedians at local night clubs. To further the fraud scheme, Wilson transmitted some of the misappropriated money by Fed Wire, PayPal and Western Union wire transfers. To conceal his fraudulent activity, Wilson presented false information to ESOP officers and members.
Wilson, St. Louis, Missouri, pled guilty to all nine counts of wire fraud in September. He appeared today for sentencing before United States District Judge Henry Autrey.
This case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department. Assistant United States Attorney Cristian M. Stevens handled the case for the U.S. Attorney’s Office.
Former Labor Union Officer Pleads GuiltyRead the Press Release
ABINGDON, VIRGINIA – A former officer in a local labor union pled guilty today to federal embezzlement charges, United States Attorney John P. Fishwick Jr. announced.
William Dixon, 41, of Castlewood, Virginia, waived his right to be indicted and pled guilty today to a one count Information charging him with embezzling funds from a labor organization.
“Labor unions have been in place for centuries to ensure fair working conditions for employees, not to line the pockets of union officers,” United States Attorney Fishwick said today.
Dixon admitted today that from October 2015 through April 2016, while serving as the secretary/treasurer for a labor union in Lebanon, Virginia, of which he was a member of, he embezzled $4,338.
At sentencing, Dixon faces a maximum sentence of imprisonment for a term of five years and a fine of $250,000.
The investigation of the case was conducted by the United States Department of Labor, Office of Labor-Management Standards. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Former Head of Non-Profit Organization Pleads Guilty in Theft of More Than $250,000Read the Press Release
WASHINGTON – Blair Wynkoop, 58, the former executive director of a non-profit organization, pled guilty today to a charge stemming from the theft of at least $250,000 from the charity, announced U.S. Attorney Channing D. Phillips and Norbert E. Vint, Deputy Inspector General for the U.S. Office of Personnel Management (OPM).
Wynkoop, of Portland, Oregon, pled guilty in the U.S. District Court for the District of Columbia to a charge of interstate transportation of stolen property. The Honorable Reggie B. Walton scheduled sentencing for March 17, 2017. Under federal sentencing guidelines, Wynkoop faces a likely range of 24 to 46 months in prison and potential financial penalties. He has agreed to pay $425,249 in restitution to a number of charitable organizations and must pay a forfeiture money judgment.
According to a statement of offense, signed by the defendant as well as the government, Wynkoop became executive director of the charity, identified in court documents as “Company A,” in 2008. The non-profit sought to address the needs of people with HIV or AIDS. It operated as a consortium of independent charities and received charitable donations itself and functioned as a pass-through for donations to its member charities.
At the outset of his tenure as executive director, Wynkoop caused “Company A” to make many of the required distributions of contributions to the member charities. However, from 2010 through 2012, he did not distribute all of the money and used funds for his own benefit.
While he was executive director, Wynkoop wrote checks and made wire transfers from the bank accounts of “Company A” to himself. For some, but not all, of these payments, he provided the non-profit’s part-time bookkeeper with justifications for expenses; many of these justifications were fabricated and designed to conceal the fraud. In the course of the scheme, Wynkoop defrauded the non-profit of more than $250,000.
In announcing the plea, U.S. Attorney Phillips and Deputy Inspector General Vint expressed appreciation for the work of Special Agent Christopher Sulhoff and others who assisted with investigating the case from the OPM Inspector General’s Office. They also commended the efforts of those who handled the case for the U.S. Attorney’s Office, including former Document Management Analyst John Lowell and Assistant U.S. Attorney Thomas Swanton, who is handling forfeiture issues. Finally, they acknowledged the work of Peter C. Lallas, who is prosecuting the case.