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5 December 2016
Newport News Gangster Convicted of Racketeering and Murder ChargesRead the Press Release
NEWPORT NEWS, Va. – Michael Hopson, 39, of Newport News, was convicted today by a federal jury on charges of racketeering conspiracy, including acts of murder, attempted murder, robbery, obstruction of justice, murder in aid of racketeering, conspiracy and attempted murder in aid of racketeering, and other charges.
According to court records and evidence presented at trial, Hopson, (aka “Hop” aka “Big Homie”) was the founding member and leader of the P-Stones, also referred to as the P-Stone Bloods and Cobra Stones, that operate primarily in the Denbigh area of Newport News. The P-Stones engage in violent crimes including murders, illegal drug trafficking, obstruction of justice and robberies that often target narcotics dealers and use stolen currency and inventory to purchase firearms and fund gang members’ court dues.
According to evidence presented at trial, as the leader, Hopson planned, directed and participated in recruitment of members, including minors; collected monthly gang dues; carried out and ordered violations; ordered and presided over meetings; and organized other firearm and marijuana distribution. Hopson also served as a security officer at Denbigh High School, in which he used his security officer position to further the Black P-Stones gang by recruiting minors and selling narcotics to high school students.
According to evidence presented at trial, Hopson personally ordered multiple shootings and murders between October 2007 and June 2009, including:
- On Oct. 31, 2007, Hopson ordered P-Stone members to murder A.J., a member of the rival Thugs Relations street gang. At Hopson’s direction, the P-Stones members attempted to lure A.J. from the home while armed. A.J. did not come out of the house and the P-Stone members left.
- On Nov. 6, 2007, a P-Stone, acting on Hopson’s orders lured E.S., a 17-year-old P-Stone member, to a location in Newport News to kill him. Hopson had previously given him the “green light” for the killing of E.S. for his relations with Thug Relations. Once E.S. arrived he was shot and killed, and Hopson rewarded the P-Stone member with a promotion.
- On Dec. 10, 2008 Hopson authorized the murder of J.W., a Crip who was disrespectful to members of the P-Stones. Acting on those orders, two P-Stone members went to the home of J.W. and fired multiple rounds into the home. J.W.’s father, who was sitting in the living room when the assault occurred, was hit with debris from the bullet shrapnel and suffered injury to his eye.
- On March 9, 2009, Hopson ordered the murder of two members of 10-1 Mafia Crips, rivals of the P-Stones, for the beating of a P-Stone member. Acting on Hopson’s orders, two P-Stone members shot multiple times into the home of the two 10-1 Mafia Crips.
- On April 17, 2009, Hopson ordered two P-Stones to fire multiple rounds into a home he knew to be occupied because the individuals inside the home were disrespectful to him.
- On June 12, 2009, Hopson ordered the murder of A.J., a Thug Relations member who was responsible for the murder of a P-Stone member. A P-Stone member acting on Hopson’s orders shot and wounded A.J.
Hopson faces a mandatory penalty of life in prison when sentenced on March 3, 2017. The maximum statutory sentence of life 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 statutory penalty, the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and Special Agent in Charge Martin W. Culbreth of the Federal Bureau of Investigation’s Norfolk, Virgina, Field Office made the announcement after the verdict was accepted by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorney Eric M. Hurt and Trial Attorney Marianne Shelvey of the Organized Crime and Gang Section in the Justice Department’s Criminal Division prosecuted the case. FBI’s Safe Streets Peninsula Task Force investigated the case, with the assistance of the Newport News Police Department and the James City County Police Department.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:13-cr-96.
- On Oct. 31, 2007, Hopson ordered P-Stone members to murder A.J., a member of the rival Thugs Relations street gang. At Hopson’s direction, the P-Stones members attempted to lure A.J. from the home while armed. A.J. did not come out of the house and the P-Stone members left.
Newark Man Sentenced to 24 Months Imprisonment in Fraud and Money Laundering CaseRead the Press Release
WILMINGTON, Del. – Charles M. Oberly, III, United States Attorney for the District of Delaware, announced today that Akeem Harris, age 26, of Newark, was sentenced on November 30, 2016, by U. S. District Court Judge Sue L. Robinson to 24 months of imprisonment and three years of supervised release. Mr. Harris was also ordered to pay restitution in the amount of $422,946.04.
The sentencing came after Mr. Harris pleaded guilty on June 2, 2016 to one count of bank fraud, in violation of 18 U.S.C. §1344 and one count of money laundering, in violation of 18 U.S.C. §1957.
Between January and June 2016, Mr. Harris engaged in multiple fraud schemes in and around the Wilmington, Delaware area. Defendant opened multiple bank accounts in the name of fictitious businesses, and received or deposited stolen funds into those accounts. Mr. Harris then liquidated the proceeds of those schemes in a series of transactions including large cash withdrawals before the fraud was detected.
U.S. Attorney Oberly stated, “I am pleased with Mr. Harris’s sentence. Though not at the helm of the schemes, Mr. Harris played a vital role and made the schemes profitable for himself and others involved. I hope that others, when approached about playing a similar role, will understand that they will be held accountable for such conduct.”
"IRS Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes where individuals use deceit and fraud to line their pockets," stated Akeia Conner, Special Agent in Charge, Philadelphia Field Office, IRS Criminal Investigation. "This sentence should serve as a deterrent to those who might contemplate similar fraudulent actions."
The case was investigated by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Lesley Wolf. U.S. Attorney Oberly thanked the investigators for their hard work in pursuing this investigation.
New Haven Man Sentenced to 6 Years in Prison for Role in Heroin Distribution RingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that FRANCISCO RODRIGUEZ, 50, of New Haven, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport, to 72 months of imprisonment, followed by four years of supervised release, for his role in a heroin distribution ring.
This matter stems from a joint investigation headed by the DEA New Haven Task Force, FBI and New Haven Police Department into the distribution of heroin in New Haven. The investigation, which included the use of court-authorized wiretaps, physical surveillance and controlled purchases of heroin, revealed that Wilson Vasquez, also known as “Will” and “Pancho,” obtained bulk quantities of heroin, processed and packaged the drug with several co-conspirators, and then distributed the drug through a network of street-level distributors operating in the area of Ferry Street, Grand Avenue and Blatchley Avenue in New Haven’s Fair Haven neighborhood. RODRIGUEZ served as a lieutenant to Vasquez in the organization.
During the investigation, law enforcement seized approximately 500 grams of raw heroin, three handguns and five vehicles. In addition, bank accounts containing more than $300,000 have been frozen.
Seventeen individuals were charged as a result of this investigation. All 17 pleaded guilty.
RODRIGUEZ has been detained since his arrest on July 15, 2015. On September 12, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.
Vasquez awaits sentencing.
The DEA New Haven Task Force includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden and Derby Police Departments, and the U.S. Marshals Service.
This case is being prosecuted by Assistant U.S. Attorneys H. Gordon Hall and Patrick Caruso.
Montreal Resident Charged with Alien SmugglingRead the Press Release
The United States Attorney for the District of Vermont and the Swanton Sector, United States Border Patrol announce that Daniel Larmand, 52, a Montreal resident, appeared today in United States District Court in Burlington on a charge of alien smuggling. U.S. Magistrate Judge John M. Conroy released Larmand on conditions pending the next court hearing.
According to the criminal complaint that was filed in court today, Border Patrol agents, with assistance from the Royal Canadian Mounted Police, witnessed a green, older model sport utility-type vehicle approach the United States border late in the afternoon on December 2. The vehicle stopped just north of the border and discharged a passenger, who then illegally walked across the border into the United States. Agents from the Champlain and Swanton Border Patrol Stations were dispatched to the area, in Alburgh, and within minutes located the illegal entrant, who turned out to be a Greek national.
Shortly after the alien was apprehended, the defendant Daniel Larmand appeared at the Alburgh Port-of-Entry seeking admission to the United States. Larmand was driving an older model green Chevy Blazer. He said that he was going to Rouses Point to look at a boat. After inspection, Larmand was permitted to enter the U.S.
Instead of going to Rouses Point, however, Larmand drove to the location where Border Patrol agents were still detaining the illegal alien. Agents questioned Larmand about his reasons for being in the area. During this encounter, the alien saw Larmand and identified him as the person who helped smuggle him into the United States. The Greek national reported that other persons had previously paid Larmand $1000 to smuggle him into this country.
The United States Attorney emphasizes that the charge in the complaint is merely an accusation and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Larmand faces up to ten years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
The Swanton Sector Border Patrol is responsible for securing the land border between ports of entry in Vermont as well as New Hampshire and northeastern New York. The assistance of citizens is invaluable in helping the U.S. Border Patrol accomplish their border security mission and they welcome community members to help them keep our nation’s borders safe by reporting suspicious activity at 1-800-689-3362.
For more on CBP’s mission at our nation’s ports of entry with CBP officers and along U.S. borders with Border Patrol agents, please visit the Border Security section of the CBP website.
Larmand is represented by Assistant Federal Defender David McColgin. The prosecutor is Assistant U.S. Attorney Gregory Waples.Mississippi Developers Agree to Settle Housing Discrimination LawsuitRead the Press Release
WASHINGTON – The Justice Department announced today that the developers of six multi-family housing complexes in southern Mississippi have agreed to pay $350,000 to settle claims that they violated the Fair Housing Act and the Americans with Disabilities Act by building apartment complexes that were inaccessible to persons with disabilities. As part of the settlement, the defendants also agreed to make substantial retrofits to remove accessibility barriers at the six complexes, which have nearly 500 covered units.
Under the settlement, which was approved late Friday by the U.S. District Court for the Southern District of Mississippi, Mississippi-based developers Ike W. Thrash, Dawn Properties Inc., Southern Cross Construction Company Inc. and other affiliated companies will pay all costs related to the retrofits, $250,000 to compensate 25 individuals harmed by the inaccessible housing and $100,000 in civil penalties. The defendants will undergo training, ensure that any future construction complies with federal accessibility laws and make periodic reports to the department.
“Housing impacts critical areas of one’s daily life,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “This comprehensive settlement demonstrates the Justice Department’s commitment to protecting the rights of persons with disabilities to reside in and visit the housing of their choice.”
“Barriers created by inaccessible housing and public accommodations deny the fundamental protection afforded by the Fair Housing Act,” said U. S. Attorney Gregory K. Davis of the Southern District of Mississippi. “The retrofits required by this agreement will provide accessible housing to people with disabilities in several key commercial areas of the Southern District of Mississippi.”
“When housing fails to meet the Fair Housing Act’s design and construction requirements it further limits the type of housing persons with disabilities need the most,” said Gustavo Velasquez, Assistant Secretary for Fair Housing and Equal Opportunity at the Department of Housing and Urban Development. “Hopefully today’s action will help developers to better understand the importance of meeting their obligation to comply with the law.”
The department filed the lawsuit in May 2014, after conducting an independent investigation of a referral of complaints from the Department of Housing and Urban Development. Trial was scheduled to begin on Jan. 3, 2017. Under the settlement, the defendants will make retrofits, including eliminating steps; making bathrooms more usable; providing accessible curb ramps and parking; and providing accessible walks to site amenities such as the clubhouses, pools and mailboxes, at the following Mississippi complexes:
- The Beach Club Apartments (Long Beach)
- The Belmont Apartments (Ocean Springs)
- The Grand Biscayne Apartments (Biloxi)
- The Belmont Apartments (Hattiesburg)
- The Lexington Apartments (Ridgeland)
- Inn by the Sea Condominiums (Pass Christian)
The Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. Among other things, the Fair Housing Act requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes without steps to all ground floor units and units accessible to wheelchair users and others with disabilities. The Americans with Disabilities Act requires, among other things, that places of public accommodation, such as rental offices at multifamily housing complexes designed and constructed for first occupancy after Jan. 26, 1993, be accessible to persons with disabilities.
Mississippi Developers Agree to Settle Housing Discrimination LawsuitRead the Press Release
The Justice Department announced today that the developers of six multi-family housing complexes in southern Mississippi have agreed to pay $350,000 to settle claims that they violated the Fair Housing Act and the Americans with Disabilities Act by building apartment complexes that were inaccessible to persons with disabilities. As part of the settlement, the defendants also agreed to make substantial retrofits to remove accessibility barriers at the six complexes, which have nearly 500 covered units.
Under the settlement, which was approved late Friday by the U.S. District Court for the Southern District of Mississippi, Mississippi-based developers Ike W. Thrash, Dawn Properties Inc., Southern Cross Construction Company Inc. and other affiliated companies will pay all costs related to the retrofits, $250,000 to compensate 25 individuals harmed by the inaccessible housing and $100,000 in civil penalties. The defendants will undergo training, ensure that any future construction complies with federal accessibility laws and make periodic reports to the department.
“Housing impacts critical areas of one’s daily life,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “This comprehensive settlement demonstrates the Justice Department’s commitment to protecting the rights of persons with disabilities to reside in and visit the housing of their choice.”
“Barriers created by inaccessible housing and public accommodations deny the fundamental protection afforded by the Fair Housing Act,” said U. S. Attorney Gregory K. Davis of the Southern District of Mississippi. “The retrofits required by this agreement will provide accessible housing to people with disabilities in several key commercial areas of the Southern District of Mississippi.”
“When housing fails to meet the Fair Housing Act’s design and construction requirements it further limits the type of housing persons with disabilities need the most,” said Gustavo Velasquez, Assistant Secretary for Fair Housing and Equal Opportunity at the Department of Housing and Urban Development. “Hopefully today’s action will help developers to better understand the importance of meeting their obligation to comply with the law.”
The department filed the lawsuit in May 2014, after conducting an independent investigation of a referral of complaints from the Department of Housing and Urban Development. Trial was scheduled to begin on Jan. 3, 2017. Under the settlement, the defendants will make retrofits, including eliminating steps; making bathrooms more usable; providing accessible curb ramps and parking; and providing accessible walks to site amenities such as the clubhouses, pools and mailboxes, at the following Mississippi complexes:• The Beach Club Apartments (Long Beach)
• The Belmont Apartments (Ocean Springs)
• The Grand Biscayne Apartments (Biloxi)
• The Belmont Apartments (Hattiesburg)
• The Lexington Apartments (Ridgeland)
• Inn by the Sea Condominiums (Pass Christian)The Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. Among other things, the Fair Housing Act requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes without steps to all ground floor units and units accessible to wheelchair users and others with disabilities. The Americans with Disabilities Act requires, among other things, that places of public accommodation, such as rental offices at multifamily housing complexes designed and constructed for first occupancy after Jan. 26, 1993, be accessible to persons with disabilities.
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact the Department of Housing and Urban Development at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp.
Dawn Consent OrderMen Found Guilty of Home Invasion Robbery and ShootingRead the Press Release
RALEIGH – The United States Attorney’s Office announced that today, JAMES THORPE, 25 and JOSHUA MELVIN, 23, both of Durham, were found guilty in a jury trial before Chief Judge James C. Dever, III, of conspiracy to commit Hobbs Act robbery, and using, carrying, and discharging a firearm during and in relation to a crime of violence and possessing the firearm in furtherance of the robbery.
THORPE and MELVIN, along with two others, were indicted by a federal grand jury on March 16, 2016.
Evidence presented at trial established that THORPE, MELVIN, and others sought to rob the victim, a co-owner and promoter of the nightclub Vegas Night Life, of proceeds from the business. The defendants affixed a GPS tracking device to the victim’s vehicle in an effort to track his whereabouts and to determine the location of his residence.
On or about March 16, 2015, THORPE, MELVIN, and others traveled to the Morrisville residence and conducted a violent home-invasion robbery. Multiple victims were present during the robbery, including a female child and her mother. The child was pulled from her mother’s arms, forced into a bedroom, and threatened to be drowned as the robbers demanded money from the other victims. When an adult female victim attempted to intervene, she was beaten repeatedly. The intended target of the robbery was shot before jumping to the ground from a second story balcony. The defendants then led police on a car chase as they fled.
The case was investigated by the Federal Bureau of Investigation, the Morrisville Police Department, and the Durham County Sheriff’s Office. Assistant United States Attorney Toby Lathan and Special Assistant United States Attorney Boz Zellinger handled the prosecution.
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News releases are available on the U. S. Attorney’s webpage at www.usdoj.gov/usao/nce within 48 hours of release.
Medical Device Saleswoman Sentenced to Three Years in Prison for Charges Relating to the Transport of Stolen Medical Devices and Money LaunderingRead the Press Release
On December 1, 2016, a medical device saleswoman was sentenced to three years in prison for her involvement in a stolen medical device and money laundering conspiracy.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Justin D. Green, Special Agent in Charge, United States Food and Drug Administration (FDA), Office of Criminal Investigations, Miami Field Office, made the announcement.
Kerri L. Kaley, 50 of Cold Spring Harbor, New York, was sentenced in Miami on eight felony counts in a criminal case arising out of a Miami-based FDA investigation that has led to convictions in over twenty-five cases of medical device theft and has resulted in forfeitures, fines, and restitution totaling over $5 million. U.S. District Court Judge Darrin P. Gayles presided over a trial of seven of Kaley’s charges of conviction in September, for her role in a conspiracy to transport and sell in interstate commerce various stolen prescription medical devices, the actual transport and sale of stolen medical devices, and money laundering associated with that activity. In November 2014, Kaley was tried and convicted on charges of obstructing justice in connection with the same activity. At sentencing, Kaley was ordered to serve a term of thirty-six months in prison, to be followed by a similar term of supervised release. In connection with the criminal trial, Kaley agreed to, and was ordered to forfeit $500,000 to the United States, with the possibility of a further money judgment to be resolved at a later ring.
According to court records and testimony at trial, from approximately 1995 through February 2005, Kaley participated in a conspiracy with a group of individuals based in Long Island, New York. The entire group, including Kaley, were medical device sales representatives for subsidiaries of Johnson & Johnson. While based in Miami, Kaley solicited sales representatives and other employees of medical device manufacturers, seeking to purchase medical devices for re-sale. As part of the conspiracy, Kaley and others working with her would secure possession of significant quantities of prescription medical devices from hospitals they serviced for their employer, which were then forwarded to a conspirator in Delray Beach, Florida. These devices were often state-of-the-art equipment used for minimally invasive surgeries and suture materials used by hospitals. The devices were acquired by theft and fraud from customer medical facilities, New York non-profit hospitals. During the course of the illicit activity Kaley laundered over $2.2 million in payments through two sham construction corporations and used the funds to pay the co-conspirators, their home mortgages, home-renovations, and child care expenses.
Charges remain pending against co-conspirator Brian K. Kaley, but no trial date has been set. An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
Mr. Ferrer commended the investigative efforts of the U.S. Food and Drug Administration in this matter. The current case is being prosecuted by Assistant United States Attorneys Thomas Watts-FitzGerald, Brooke Watson, and Alison Lehr.
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
McAllen Man Convicted of Receiving Child Pornography VideosRead the Press Release
McALLEN, Texas – A 27-year old resident of McAllen has entered a guilty plea to one count of receipt of child pornography, announced U.S. Attorney Kenneth Magidson.
Jesus Salvador Lara-Perez came to the attention of law enforcement following an investigation which began on Nov. 8, 2015, into persons using the Internet to traffic in child pornography. A special agent with Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) was able to locate and identify a computer as offering to participate in the receipt of child pornography videos through the peer-to-peer network on the Internet. Through the investigation, it was determined that the computer was located at a residence in McAllen.
On June 28, 2016, authorities executed a federal search warrant at that residence, during which time they seized a laptop computer. A forensic examination on the computer revealed 198 videos and 109 images of child pornography involving clearly young children engaged in sexually explicit conduct. These videos included children under the age of 12 involved in sadistic conduct, bondage and other depictions of violence. Some of the videos are of known victims as identified through the National Center for Missing and Exploited Children.
Lara-Perez admitted he downloaded and viewed child pornography from the Internet, thereby receiving the child pornography found on his laptop computer. He admitted he had been downloading child pornography for approximately three years.
U.S. District Judge Ricardo Hinojosa, who accepted the guilty plea today, has set sentencing for Feb. 23, 2017. At that time, Lara-Perez faces a minimum of five and up to 20 years in federal prison and a possible $250,000 fine. He will remain in custody pending that hearing.
HSI conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Alex Benavides, 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."
Manchester Man Pleads Guilty to Federal Firearms ChargesRead the Press Release
Concord, N.H.—United States Attorney Emily Gray Rice announced that Marcos Nieves, 40, previously of Manchester, New Hampshire, pleaded guilty to the illegal possession of firearms and ammunition.
According to the indictment and other statements made in court, members of the Manchester Police Department obtained a search warrant for the defendant’s Manchester residence in connection with an investigation into a non-fatal shooting on August 8, 2015. While executing the search warrant, they recovered two stolen AK-47 style weapons, several firearm magazine clips, ammunition, drugs, drug dealing paraphernalia, and personal documents identifying Nieves in a bedroom closet. At the time, Nieves was prohibited from possessing any firearm as a result of at least one prior felony conviction.
NIEVES has been in state custody since August 8, 2015. He previously pleaded guilty to narcotics charges in Hillsborough County in connection with the controlled substances recovered during the execution of the search warrant, and is serving a sentence of 2 to 4 years in New Hampshire State Prison.
A sentencing hearing has been scheduled for March 17, 2017.
This matter was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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Lynn Man Sentenced for Stealing Veteran BenefitsRead the Press Release
BOSTON – A Lynn man was sentenced today in U.S. District Court in Boston in connection with stealing nearly $80,000 in veteran benefits.
John Ladd, 73, was sentenced by U.S. District Court Judge Douglas P. Woodlock to one year of probation with the first six months to be served in home confinement, and ordered to pay $79,958 in restitution to the U.S. Department of Veterans Affairs. In August 2016, Ladd pleaded guilty to stealing public money.
In 2009, Ladd’s neighbor was receiving monthly veteran benefits when she died; however, the U.S. Department of Veterans Affairs was not properly notified of the death therefore, her benefits each month continued to be deposited into her bank account. Ladd had been assisting his neighbor before her death, and this enabled him to access her checkbook. Although Ladd was not entitled to his neighbor’s veteran benefits, he routinely wrote checks to himself from his neighbor’s account after her death, forging her signature on each check. Ladd then deposited the checks into his own bank accounts. Ladd ultimately wrote himself 70 checks totaling $79,958.
United States Attorney Carmen M. Ortiz and Donna Neves, Special Agent in Charge of the Department of Veterans Affairs, Office of the Inspector General, Northeast Field Office, made the announcement today. Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit prosecuted the case.
Leader of Black P-Stones Gang Convicted of Racketeering Conspiracy and Murder ChargesRead the Press Release
A federal jury convicted a Newport News, Virginia, man on numerous charges related to the racketeering enterprise activity of a gang known as the Black P-Stones.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney Dana J. Boente of the Eastern District of Virginia and Special Agent in Charge Martin W. Culbreth of the Federal Bureau of Investigation’s Norfolk, Virgina, Field Office made the announcement.Michael Hopson, aka “Hop” aka “Big Homie,” 39, was convicted today by a federal jury sitting in the Eastern District of Virginia of racketeering conspiracy – including acts of murder, attempted murder, robbery, obstruction of justice – murder in aid of racketeering, conspiracy and attempted murder in aid of racketeering, as well as various narcotics charges.
According to evidence presented at trial, Hopson was the founding member and leader (OG) of the Black P-Stones gang, also referred to as the P-Stone Bloods and Cobra Stones, which operates primarily in the Denbigh area of Newport News. The Black P-Stones engage in violent crimes including murders, illegal drug trafficking, obstruction of justice and robberies that often target narcotics dealers and use stolen currency and inventory to fund gang members’ court dues.
According to the trial evidence, as the OG, Hopson planned, directed and participated in recruiting members, including minors; collected monthly gang dues; carried out and ordered violent crimes; ordered and presided over meetings; and organized the gang’s distribution marijuana. Trial evidence also demonstrated that Hopson used his position as a security officer at Denbigh High School to recruit minors to join the Black P-Stones and sell narcotics to high school students.
Trial evidence showed that Hopson personally ordered multiple shootings and murders between October 2007 and June 2009. On October 31, 2007, Hopson ordered Black P-Stones members to murder A.J., a member of the rival Thugs Relations street gang. At Hopson’s direction, the armed Black P-Stones members attempted to lure him from the home, but were unsuccessful.
On November 6, 2007, a Black P-Stones member, acting on Hopson’s orders, lured E.S., a 17-year-old Black P-Stones member, to a Newport News location and killed him. Hopson had given the “green light” to kill E.S. because of his friendships with Thug Relations members, and rewarded the Black P-Stone member with a promotion.
On December 10, 2008, Hopson authorized the murder of J.W., a Crip who had been disrespectful to members of the Black P-Stones. Acting on those orders, two Black P-Stones members went to the home of J.W. and fired multiple rounds into the home. J.W.’s father, who was sitting in the living room when the assault occurred, was hit with debris from the bullet shrapnel and suffered injury to his eye.
On March 9, 2009, Hopson ordered the murder of two members of 10-1 Mafia Crips, a rival gang of the Black P-Stones, in reponse to the beating of a Black P-Stones member. Acting on Hopson’s orders, two Black P-Stones members shot multiple times into the home of the two 10-1 Mafia Crips.
On April 17, 2009, Hopson ordered two Black P-Stones members to fire multiple rounds into a home he knew to be occupied because the individuals inside the home were disrespectful to him.
On June 12, 2009, Hopson ordered the murder of A.J., a Thug Relations member who was responsible for the murder of a Black P-Stones member. A Black P-Stones member acting on Hopson’s orders shot and wounded A.J.
FBI’s Safe Streets Peninsula Task Force investigated the case, with the assistance of the Newport News Police Department and the James City County Police Department. Trial Attorney Marianne Shelvey of the Organized Crime and Gang Section in the Justice Department’s Criminal Division and Assistant United States Attorney Eric M. Hurt of the Eastern District of Virginia are prosecuting the case.
Leader of Anchorage Drug Conspiracy Sentenced to PrisonRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Toa Danh “Tony” Ly, 45, resident of Anchorage, Alaska, was sentenced on Friday, December 2, by U.S. District Judge Sharon L. Gleason to 60 months in prison, to be followed by a five-year term of supervised release, for conspiring to distribute methamphetamine and heroin, and money laundering conspiracy.
According to court documents and arguments made during Friday’s sentencing hearing, starting in the summer of 2014, law enforcement began investigating several individuals implicated in the distribution of methamphetamine and heroin throughout Southcentral Alaska. As part of that investigation, law enforcement made numerous controlled purchases of methamphetamine and heroin from Ly and his co-conspirators. Between May 2014 and January 2015, Ly accepted delivery of pounds of methamphetamine and heroin, distributing those products directly and through his co-conspirators in Anchorage, the Valley, and the Kenai Peninsula. Proceeds from these drug sales were generally deposited into Wells Fargo bank accounts controlled by Ly. In total, during the seven months that the conspiracy existed, Ly made more than $500,000 from his illegal sale of drugs.
Judge Gleason based her sentence in numerous factors, including the nature and circumstances of the defendant’s conduct. According to Judge Gleason, the defendant’s sentence was appropriate because of the fact that the defendant was “the head guy [of the conspiracy], making tens of tens of thousands of dollars [with] lots of people working for him.” Judge Gleason also noted the powerful impact the defendant’s drug sales had on the community, and discussed how the drugs distributed by the defendant “ruined lives,” and made parents who were addicted want to get high more than they wanted to be with their own children. Judge Gleason stated that, the serious penalties required under the drug laws were in place precisely because of the harm that drugs do to families and communities.
Other defendants indicted as part of this investigation include:
- Renee Marie Davis pleaded guilty to conspiracy to distribute controlled substances. On Jan. 19, 2016, the court sentenced her to 72 months in prison.
- Adam Michael Cornelison pleaded guilty to use of a firearm in furtherance of a drug trafficking offense. On Feb. 9, 2016, the court sentenced him to 60 months in prison.
- Kasey Martinez pleaded guilty to money laundering conspiracy. On July 18, 2016, the court sentenced her to 40 months in prison.
- Pao Lee pleaded guilty to conspiracy to distribute controlled substances and distribution of controlled substances. Sentencing is set for Jan. 11, 2017.
- Robert Lee Rast pleaded guilty to conspiracy to distribute controlled substances. Sentencing is set for Jan. 20, 2017.
- Tracey Trujillo pleaded guilty to money laundering conspiracy. A motion to continue judgment and sentencing to the week of January 10 has been filed.
- On Nov. 1, 2016, a jury found Murville Lampkin guilty of conspiracy to distribute controlled substances, money laundering conspiracy, distribution of controlled substances, and possession of controlled substances with the intent to distribute. Sentencing is set for Feb. 15, 2017.
This case was investigated and prosecuted by the FBI Safe Streets Task Force, the Internal Revenue Service, and Assistant U.S. Attorney Kyle Reardon.
Kern County Man Sentenced for Illegally Possessing Firearms, Explosives and a Destructive DeviceRead the Press Release
FRESNO, Calif. — Kenneth William Kirkland, 48, of California City, was sentenced today by U.S. District Judge Dale A. Drozd to four years and nine months in prison for being a felon in possession of firearms, being a felon in possession of a destructive device, being a felon in possession of explosives, and possession of a destructive device not registered in the National Firearms Registry, U.S. Attorney Phillip A. Talbert announced.
Kirkland was convicted of these offenses in September 2016 after a three-day trial. According to court documents and evidence produced at trial, on October 11, 2015, officers from the California City Police Department executed a search warrant at Kirkland’s house and found a 5.56-caliber assault rifle that was loaded with a high-capacity magazine and one round in the chamber and a 7.62 x 54R-caliber rifle. When officers discovered detonators in a yellow metal container, they requested the assistance of the Kern County Sheriff’s bomb squad.
In addition to the detonators, several sticks of dynamite were found and a partially constructed improvised explosive device (IED) was found in a shoebox under Kirkland’s bed. Electrical components in a separate shoebox were also found. It was later determined that with either the insertion of batteries into a battery pack or the connecting of its wires directly to a battery, the partially constructed improvised explosive device could be readily assembled into a fully functional IED.
According to the indictment, on June 17, 1993, Kirkland was convicted in Kern County of burglary and was prohibited from possessing firearms or ammunition.
This case was the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the California City Police Department, and the Kern County Sheriff’s Office. Assistant U.S. Attorneys Angela L. Scott and Christopher Baker prosecuted the case.
Justice Department Reaches Agreement with Watson Chapel, Arkansas, School District to Prevent Discrimination and Reform Discipline PracticesRead the Press Release
The Justice Department reached an agreement with the Watson Chapel, Arkansas, School District to ensure that the district does not discriminate on the basis of race in its administration of school discipline. The consent order, approved today by the District Court for the Eastern District of Arkansas, will replace the use of punitive discipline with more positive approaches as part of an overall focus on improving student achievement and school climate.
The consent order is intended to address the remaining issues in the school desegregation case in Watson Chapel, and when fully implemented, will lead to the closing of that case. As part of the consent order, the district will be required to:
• implement a classroom management system that focuses on interventions and supports; • eliminate out-of-school suspensions for offenses that do not involve or threaten safety; • stop the use of corporal punishment, which has been disproportionately applied against black students and undermined the creation of a positive school climate; • assess the district’s support services for students with disabilities to ensure that students, particularly students of color, are not disciplined for their disabilities; • enter into an agreement with the law enforcement agencies that provide School Resource Officers (SROs) to the district that makes clear that SROs will not become involved in enforcing school discipline rules and prevents students from being arrested for minor misconduct; and
• conduct outreach to students, parents and community members to explain and solicit feedback on the district’s disciplinary policies and procedures.“For far too long, some school districts have used overly punitive and ineffective discipline practices that prevent students of color from reaching their full potential,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division. “We commend the Watson Chapel School District for committing to create an equal, supportive and inclusive learning environment for all.”
The court will retain jurisdiction over the consent order during its implementation, and the Justice Department will monitor the district’s compliance. The consent order is expected to take three years to implement.
The enforcement of Title IV of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color, national origin, sex and religion in public schools, is a top priority of the Civil Rights Division. Additional information about the Justice Department’s Civil Rights Division is available at www.justice.gov/crt.
Watson Chapel Consent OrderJury Finds Bakersfield Man Guilty of Hate CrimeRead the Press Release
BAKERSFIELD, Calif. — After a five-day trial, a federal jury in Fresno found Justin Cole Whittington, 25, of Bakersfield, guilty of federal hate crimes for firing a shotgun while yelling racist slurs at a Latino man, Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Phillip A. Talbert announced.
Whittington was convicted today of interfering with a person’s housing rights because of his race, color, or national origin by use of force or threat of force; use of a firearm during a crime of violence; and making a false statement to a special agent of the FBI. Whittington had earlier pleaded guilty to unlawful possession of a prohibited firearm in connection to the same crime.
According to court documents, on December 19, 2012, the victim, a Latino man, was standing in his front yard with his wife and son when a dark-colored PT Cruiser drove past slowly and came to a stop in front of his neighbor’s house. The victim thought this was unusual and paid close attention the car. Whittington, whom the victim had never seen before, got out of the front passenger seat of the car holding a sawed-off shotgun. Whittington used profanity and shouted a racial epithet as he fired one round toward the victim from about 15 yards away, and yelled that the victim should move out of Oildale. Whittington got back into the car and it drove away. Shortly thereafter, the shotgun was fired from the PT Cruiser at a nearby convenience store owned by a man of Middle Eastern descent. The blast left a large hole in the store’s glass door, and circles of missing paint on the metal gate in front of the store.
According to evidence presented at trial, the victim was able to describe Whittington and the car to Kern County Sheriff’s deputies, and they found Whittington nearby standing outside the PT Cruiser. The deputies recovered a sawed-off shotgun in the trunk of Whittington’s Crown Victoria, which was parked near the PT Cruiser.
Whittington was also found guilty of making false statements to an FBI agent when he falsely claimed that on the evening of the incident, he had been paid by someone to keep the sawed-off shotgun in the trunk of his car.
According to court documents and evidence presented at trial, the victim and his family no longer felt safe in their home, and as soon as they had the financial means to do so, they moved from the neighborhood.
“Whittington used violence to terrorize an innocent man and his family,” said Principal Deputy Assistant Attorney General Gupta. “The harm from hate crimes like this one extends beyond individuals and threatens the security, freedom and well-being of entire communities. No conviction can reverse that harm, but this verdict does provide a measure of justice for the victim, his family and his community.”
U.S. Attorney Talbert stated: “The Eastern District of California is a community of different races, ethnicities, and backgrounds. This defendant tried to strike at the diversity that enriches us by making a cowardly and unprovoked attack on a man who was simply standing in his front yard with his family. Hate crimes like this have profound effects not only on the victims, but on those in the victims’ communities, making them feel vulnerable and unsafe. Our office is committed to investigating and prosecuting those who violate the civil rights of others, and enforcing laws against hate crimes will remain one of the core missions of this office.”
This case is the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Office. Assistant U.S. Attorney Brian K. Delaney is prosecuting the case with the assistance of Trial Attorney Samantha Trepel of the Justice Department’s Civil Rights Division.
Whittington is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on February 27, 2017. Whittington faces a maximum statutory penalty of life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Irfan Amanat Charged in Manhattan Federal Court with Schemes to Defraud Auditors and Investors in KIT digital and Maiden CapitalRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced the unsealing of charges today against IRFAN AMANAT for his schemes to defraud the auditors and investors of KIT digital (“KITD”), a publicly traded technology start-up company based in New York and Prague, Czech Republic, and the investors of Maiden Capital LLC (“Maiden Capital”), an investment advisory firm based in North Carolina.
U.S. Attorney Preet Bharara said: “As alleged, Irfan Amanat lied to auditors, investors, and the SEC about millions of dollars of KIT digital and Maiden Capital funds that were lost and misappropriated. For his alleged deception, Irfan Amanat now faces multiple counts of federal fraud charges.”
FBI Assistant Director-in-Charge William F. Sweeney, Jr. said: “Amanat allegedly engaged in a systematic scheme to scam investors and auditors alike. He played cat and mouse with shareholders’ money, but couldn’t escape the final pursuit. The FBI has dedicated a significant amount of resources to uncovering financial crimes targeted against individuals, businesses, and industries, and securities and commodities fraud remains at the top of our list of priorities.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Mr. Amanat allegedly participated in a scheme to mislead investors, while knowing the company Enable was totally insolvent. He continued to solicit and receive investor funds and then lied on annual reports in an effort to conceal the misappropriation of funds from investors. Postal Inspectors have no tolerance for these types of fraud schemes and will continue to dedicate resources to investigate and bring to justice those who participate in securities fraud.”
IRFAN AMANAT – the brother of Omar Amanat and an associate of Kaleil Isaza Tuzman (“Tuzman”), the former Chairman and CEO of KITD – was charged with securities fraud and conspiring to commit securities fraud, make false statements in annual and quarterly SEC reports filed by KITD, and make false statements to KITD’s auditors. These charges relate to IRFAN AMANAT’s participation in a scheme to mislead KITD’s auditors and investors regarding KITD’s investment with Enable, an investment vehicle he at times controlled. Instead of informing KITD’s auditors and investors that more than $2 million that KITD invested with Enable had been lost or fraudulently misappropriated, IRFAN AMANAT falsely represented that KITD’s investment with Enable was sound and earning steady interest. IRFAN AMANAT was also charged with conspiracy to commit wire fraud, wire fraud, and aiding and abetting investment adviser fraud for participating in a scheme, along with Stephen Maiden (“Maiden”), to defraud investors in Maiden Capital, also regarding investments in Enable. IRFAN AMANAT was arrested in Pine Brook, New Jersey, this morning and is expected to be presented today in federal court in Manhattan before a United States Magistrate Judge.
Maiden previously pled guilty to charges relating to his own involvement in manipulating the market in KITD shares, defrauding KITD shareholders concerning KITD’s investment in Maiden Capital, and defrauding Maiden’s investors concerning the Enable investment. Maiden is cooperating with the Government in this investigation.
Tuzman was arrested in Colombia in September 2015 on market manipulation, accounting, and wire fraud charges and extradited to the United States in July 2016. Omar Amanat was arrested in July 2016 on market manipulation and wire fraud charges, and for aiding and abetting Maiden’s fraud against his investment advisory clients. Both Tuzman and Omar Amanat have been released on bail pending an October 2017 trial before the Honorable Paul G. Gardephe.
According to the Complaint[1] unsealed today in Manhattan federal court:
Fraudulent Schemes Involving Enable
As alleged in the Complaint, between 2009 and 2012, IRFAN AMANAT engaged in two interrelated fraudulent schemes in which he falsely represented to auditors and investors that Enable maintained millions of dollars in accounts held for the benefit of KITD and Maiden Capital. In truth, as IRFAN AMANAT well knew, KITD’s and Maiden Capital’s investments in Enable had long been lost, including through poor trading and misappropriations.
In 2008 and 2009, IRFAN AMANAT and Omar Amanat raised more than $10 million for a series of Amanat investment vehicles, including Enable, from more than 10 investors. These funds included investments made by Tuzman, on behalf of KITD, and by Maiden, on behalf of Maiden Capital. Of this money, IRFAN AMANAT lost more than $5.5 million through poor trading. Omar Amanat, with the knowledge of IRFAN AMANAT, improperly diverted more than $3 million for his personal use.
The Scheme to Defraud KITD’s Auditors and Investors
Between 2008 and 2012, KITD, a now-defunct but once publicly traded software company, was obligated to accurately report the nature of its purported assets, including whether assets were held in cash or otherwise. As of on or about September 30, 2008, over 70% of KITD’s cash was invested with Enable. By at least February 2009, however, Enable was insolvent.
Between 2009 until at least April 2012, IRFAN AMANAT, with the knowledge of Tuzman, Omar Amanat, and others, deceived KITD’s auditors and investors about KITD’s true financial health by misrepresenting that Enable maintained more than $2 million in liquid assets in an asset management account on behalf of KITD when, as IRFAN AMANAT well knew, the money had been lost or misappropriated. In particular, IRFAN AMANAT misled KITD’s auditors by sending, or causing to be sent, balance confirmations, for the benefit of KITD’s auditors, falsely claiming that Enable maintained more than $2 million of KITD’s funds in an asset management account earning a steady interest rate. IRFAN AMANAT made these misrepresentations knowing that they were material to the audit of KITD’s financial statements and, ultimately, to the investing public. As a result of IRFAN AMANAT’s misrepresentations, various KITD annual financial filings were materially false.
The Scheme to Defraud Maiden Capital Investors
Maiden was the managing member of Maiden Capital, an unregistered investment advisory firm that managed portfolios of securities. Clients empowered Maiden Capital and Maiden to make investment decisions on their behalf. Maiden, in turn, was obligated to make such decisions based on the best interests of his clients. In 2008, Maiden made a series of investments in Enable, for a total investment of more than $2 million. In or about March 2009, Maiden learned that Enable was insolvent.
Between March 2009 until at least June 2012, IRFAN AMANAT, working with Maiden, Omar Amanat, and others, devised and carried out a scheme to hide the fact that Maiden Capital’s investment in Enable had been lost. Rather than disclose the Enable losses to Maiden Capital’s investors, as he was legally obligated to do, Maiden concealed the Enable losses, thereby acting in his own self-interest and the interests of IRFAN AMANAT, his close associate, who did not want the Enable losses to be exposed. IRFAN AMANAT aided and abetted Maiden’s investment advisory fraud by providing Maiden with fictitious account statements reflecting a positive Enable balance, knowing that the information in these statements would be provided to Maiden’s investors. IRFAN AMANAT’s fraudulent assistance helped Maiden cover up the Enable losses for over three years.
IRFAN AMANAT, 45, is charged with one count of conspiracy to commit securities fraud, make false statements in annual and quarterly SEC reports, and make false statements to auditors, one count of securities fraud, one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of aiding and abetting investment adviser fraud. Counts Two, Three, and Four each carry a maximum sentence of 20 years in prison. Counts One and Five each carry a maximum sentence of five years in prison. Count Two carries a maximum fine of $5 million, or twice the gross gain or loss from the offense. Counts One, Three, and Four each carry a maximum fine of $250,000 or twice the gross gain or loss from the offense. Count Five carries a maximum fine of $10,000, or twice the gross gain or loss from the offense.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
* * *
Mr. Bharara praised the work of the FBI and the U.S. Postal Inspection Service, and thanked the Securities and Exchange Commission for their assistance. He added that the investigation is continuing.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Damian Williams and Andrea M. Griswold are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is
US v. Irfan Amanat complaint.pdf presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Iowa Woman Sentenced for Mortgage FraudRead the Press Release
COUNCIL BLUFFS, IA - On December 2, 2016, Mandy Lea Whipple, formerly Mandy Lea Johnson, a 34 year-old resident of Page County, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose, to 18 months in prison followed by five years of Supervised Release for Mortgage Fraud, announced United States Attorney Kevin E. VanderSchel.
Whipple entered a guilty plea on June 9, 2016, to Mortgage Fraud for falsifying mortgage loan papers to purchase a house in Fremont County, Iowa. The investigation began with a report of delinquent payments on the purchased Fremont County residence, leading to the discovery that Whipple had falsely obtained a Veteran Administration’s loan to purchase the home, using the name and identifiers of a military veteran that employed her.
As part of the sentence, the Court ordered Whipple to make restitution to the Veteran’s Administration in the amount of $41,675.00; to J.G. Wentworth Mortgage Home Lending, LLC, in the amount of $28,904.27; and to Discover Financial Services in the amount of $5,780.04.
The investigation was conducted by the Fremont County Sheriff’s Office, Fremont County Attorney’s Office, Department of Veteran Affairs-Office of Inspector General, and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Houston Man Sentenced in Stolen Identity Refund Fraud SchemeRead the Press Release
HOUSTON – A 35-year-old Houston resident has been ordered to federal prison for his role in a sophisticated tax fraud/identity theft scheme involving more than 800 victims, announced U.S. Attorney Kenneth Magidson. Antolin Julio Nazario, 35, pleaded guilty April 27, 2015, to conspiracy to commit mail fraud and aggravated identity theft. His wife - Thalia Diaz Camareno, 30 - was also convicted in the case, pleading guilty Oct. 5, 2015, to conspiracy to commit mail fraud.
Today, U.S. District Judge Kenneth Hoyt handed Nazario a total sentence of 92 months in prison to be immediately followed by three years of supervised release. He was further ordered to pay a $807,096 in restitution.
Camareno is set for sentencing next week.
Both admitted that from approximately June 2010 to January 2012, they engaged in a scheme that involved the filing of hundreds of fraudulent tax returns, commonly referred to as Stolen Identity Refund Fraud. The Houston couple used stolen and unlawfully obtained personal identity information, including the names and Social Security numbers, of true persons to prepare fraudulent U.S. income tax returns.
Nazario aka Robinson Gomez Churon and Camareno aka Irene Carrero Echevarria mailed the fraudulent federal income tax returns through the U.S. Postal Service in order to generate and obtain tax refunds from the IRS to which they were not entitled and directed the fraudulently obtained tax refunds be disbursed as U.S. Treasury checks. The refunds were then used to obtain cash and goods for their own benefit.
The current fraudulent tax refund filings attributed to this couple have resulted in $4,095,959 potential loss, an excess of $800,000 paid out by the IRS and involves more than 800 victims whose identities were stolen to conduct the scheme.
Nazario will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. His wife is on bond pending her sentencing hearing.
IRS-Criminal Investigation, U.S. Postal Inspection Service and the Secret Service conducted the investigation. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case.
Harrison County man sentenced for unlawful possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Andrew N. Debolt, 33, of Shinnston, West Virginia, was sentenced to 30 months in prison for illegally possessing a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Debolt, who has prior felony convictions for “Sexual Abuse in the First Degree” and “Domestic Violence, Third Offense” in Harrison County, West Virginia, is prohibited from possessing a firearm. He was discovered in possession of a .22 caliber rifle in July 2015 and pled guilty to the offense in August 2016.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Virginia State Police, and the Clarksburg Police Department investigated.
U.S. District Judge Irene M. Keeley presided.
Former Somerset County High School Teacher Sentenced to 127 Months in Prison for Enticing Boy to Engage in Criminal Sexual Conduct OnlineRead the Press Release
NEWARK, N.J. – A Branchburg, New Jersey, man who previously worked as a high school music teacher was sentenced today to 127 months in prison for soliciting a boy to engage in sexually explicit conduct in exchange for money, U.S. Attorney Paul J. Fishman announced.
David M. Adams, 30, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of online enticement of a minor to engage in criminal sexual conduct. Judge Walls imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Adams admitted that, between May 2014 and September 2014, he used the internet, including Skype, to induce a victim who was less than 18-years-old to engage in sexually explicit conduct. In exchange for allowing Adams to view the conduct on Skype, Adams paid the victim using PayPal and other means.
During that time, Adams was a music teacher at Eisenhower Middle School in Roxbury, New Jersey. Subsequently, Adams was a music teacher at Bridgewater-Raritan High School in Somerset County, New Jersey.
In addition to the prison term, Judge Walls sentenced Adams to lifetime supervised release.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Terence S. Opiola, with the investigation leading to today’s sentencing. He also thanked the Branchburg Police Department and the Somerset County Prosecutor’s Office for their assistance in this case.
The government is represented by Assistant U.S. Attorney Svetlana M. Eisenberg of the U.S. Attorney’s Office General Crimes Unit in Newark.
Defense counsel: Michael Baldassare Esq. and Dillon Malar Esq., Newark
Former Pearland Physician Sentenced on Child Pornography ChargesRead the Press Release
GALVESTON, Texas – A former pediatric oncologist at The University of Texas M.D. Anderson Cancer Center has been ordered to federal prison following his conviction of receipt, access with intent to view and possession of child pornography charges, announced U.S. Attorney Kenneth Magidson. Dennis Patrick Meehan Hughes, 50, of Pearland, pleaded guilty March 22, 2016.
At the time of his arrest in June 2015, Hughes worked at M.D. Anderson, but he is no longer employed there.
Today, U.S. District Judge George C. Hanks Jr. handed Hughes a sentence of 84 months in federal prison on each count of conviction. The sentences will run concurrently. In handing down the sentence, the court noted the horrific nature of the crimes and that they facilitated the abuse of children. Hughes must register as a sex offender and was further ordered to serve 10 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. The court also imposed a $5,000 special assessment under the Justice for Victims Trafficking Act of 2015.
This case was initiated pursuant to a nationwide investigation which targeted users of a TOR network child pornography website whose primary purpose was to advertise and distribute child pornography. Following the February 2015 arrest of the primary site administrator, law enforcement was able to identify more than 1,000 U.S.-based user IP addresses. One of those addresses resolved back to the residence of Hughes.
Law enforcement executed a federal search warrant at his residence on June 5, 2015, at which time they arrested Hughes and seized his computers and other items.
Hughes admitted he received and possessed numerous images of child pornography, to include prepubescent girls with their genitals lasciviously displayed. Some of the images also depicted young girls being penetrated, both orally and vaginally. The government also offered evidence that images of child pornography were found on his work computer as well.
In total, law enforcement discovered 329 videos and 2,693 unique images attributable to Hughes.
Hughes was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation along with the Pearland Police Department, Texas Department of Public Safety and the University of Texas Police Department.
This case, prosecuted by Assistant U.S. Attorney Sherri Zack, 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."
Former Payroll Specialist at Brentwood-Based Human Resources Company Charged with Wire Fraud and Identity TheftRead the Press Release
Kristen Morrison, 44, of Lascassas, Tennessee, was indicted Ton November 30, 2016, by a federal grand jury and charged with eight counts of wire fraud and two counts of aggravated identity theft, in relation to her role as a payroll specialist with Century II, a personnel and human resources company based in Brentwood, Tennessee, announced David Rivera, United States Attorney for the Middle District of Tennessee.
The indictment alleges that between March of 2014 and May of 2016, Morrison created new direct deposit accounts and pay cards for former and nonexistent employees of Century II’s customer, Absolute Wireless. The indictment further alleges that Morrison caused payroll payments to be made from Absolute Wireless to the pay cards that she created and then used those pay cards for her personal benefit.
If convicted, Morrison faces up to 20 years in prison and a fine of up to $250,000. The indictment also seeks forfeiture of $213,449.91
An indictment is merely an accusation and is not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Henry Leventis.
Former Marriott employee sentenced to federal prison for embezzling nearly $1 millionRead the Press Release
CHARLESTON, W.Va. – A former employee of the Charleston Marriott Town Center who defrauded the hotel out of close to a million dollars was sentenced today to two and a half years in federal prison, announced United States Attorney Carol Casto. Mark Kuhn, 53, of Milton in Cabell County, previously pleaded guilty to wire fraud for his embezzlement from the hotel. He was also ordered to pay $955,317.17 in restitution.
Kuhn worked for the Marriott as an accountant and general cashier. His duties included collecting cash from the various departments of the hotel, including the gift shop, the front desk, and the restaurant and bar. Kuhn admitted that beginning in November 2005 and continuing through February 2016, he embezzled over $955,000 from the hotel. He covered up his embezzlement by regularly posting false entries in the hotel’s accounting system to make it appear as if the hotel had paid out cash for various goods or services. Typically, the false entries reflected fictitious payments for commissions or fees owed to a travel agency or online travel company. The false entries for any particular day would match the amount of cash that Kuhn had embezzled from the cash receipts for that day.
Over the course of his fraudulent scheme, Kuhn used the embezzled funds for personal expenses. He admitted that he took vacations to Hawaii, the Bahamas, Myrtle Beach, and Disney World. He also admitted that he went on a cruise to Cozumel, Mexico. He additionally admitted to using the money to buy cars, a truck, and a recreational vehicle. Furthermore, he admitted that he used the embezzled funds to make payments on Chase MasterCard accounts, Sears credit card accounts, and a revolving credit account at Home Depot.
The United States Secret Service conducted the investigation. First Assistant United States Attorney Philip H. Wright is in charge of the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
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Former Fort Bragg Army Sergeant and Owner of California Telemarketing Company Plead Guilty to Gratuity and Bribery ChargesRead the Press Release
GREENVILLE –The United States Attorney’s Office announced that today in federal court, ANTONELLE ANN SANCHEZ, 35, pled guilty to two counts of Accepting and Receiving a Gratuity. As part of her plea, SANCHEZ agreed to pay $95,610 in forfeiture. She faces a maximum of four years’ imprisonment. GEORGE SZEKERES, 67, pled guilty to one count of Bribery. As part of his plea, SZEKERES agreed to pay $95,610 in forfeiture, which he has already done. He faces a maximum of fifteen years’ imprisonment.
According to the Government’s recitation of the facts at the plea hearings, SANCHEZ was a supply sergeant with the United States Army stationed at Fort Bragg, North Carolina. She began accepting gift cards and later money orders from Advance Imaging Supply, Inc., a telemarketer that supplied printer cartridges. GEORGE SZEKERES was the owner of Advance Imaging. From May 13, 2011 to September 11, 2012, SANCHEZ received over $95,000 in postal money orders from Advance Imaging Supply, Inc. During this same time period, SANCHEZ, as Supply Sergeant, purchased more than $1,000,000 in printer cartridges from Advance Imaging. These cartridges were sent both to Fort Bragg and around the country. In early 2012, SANCHEZ reached an agreement with Advance Imaging, approved by SZEKERES, to receive 10% of the purchase price of the cartridges in money orders because she was sending them so much business.
“Our office was pleased to partner with DCIS and the FBI on this significant case. Fraud in government procurement is a serious matter and we will continue to prosecute it vigorously,” stated United States Attorney John Stuart Bruce.
"DCIS will pursue and expose corrupt contractors and government officials who abuse their positions of trust to line their own pockets with illegal kickbacks and gratuities," stated Special Agent in Charge John F. Khin, Southeast Field Office, Defense Criminal Investigative Service (DCIS). "Effective joint law enforcement efforts resulted in these defendants pleading guilty and forfeiting substantial monetary assets, demonstrating
once again that fraud schemes rarely go undetected, and once they unravel, those involved must pay the price for their crimes."
“These defendants made a deal with each other to defraud the government. Instead of conducting business in the best interest of the American public, they chose to line their own pockets. These type of crimes are at the center of the fight against public corruption," said John Strong, Special Agent in Charge of the FBI in North Carolina.
The criminal investigation of this case was conducted by Defense Criminal Investigative Service, the FBI, and U.S. Army Criminal Investigation Command-Major Procurement Fraud Unit. Assistant United States Attorney David Bragdon is handling the case on behalf of the government.
Former Expedia IT Support Worker Pleads Guilty to Insider TradingRead the Press Release
A computer support technician formerly employed at Expedia offices in San Francisco pleaded guilty today in U.S. District Court in Seattle to securities fraud, announced U.S. Attorney Annette L. Hayes. JONATHAN LY, 28, of San Francisco, admitted he used his position in tech support at Expedia to access emails of Expedia executives so that he could trade in Expedia stock and illegally profit from non-public information. LY faces a separate Securities and Exchange Commission action requiring him to pay back the more than $331,000 in profits he made in the scheme. Sentencing in the criminal case is scheduled for February 28, 2017, in front of U.S. District Judge John C. Coughenour.
“The irony of our increasingly digital world is that the greatest threat to our networks is a human one,” said U.S. Attorney Annette L. Hayes. “In this case, an IT professional used his employer’s networks to facilitate a get-rich-quick scheme. I commend Expedia for quickly contacting law enforcement when they identified the computer intrusion. Their willingness to do the right thing made it possible to effectively investigate and prosecute the matter – protecting our financial markets from unfair manipulation.”
According to records filed in the case, between 2013 and 2015, LY was employed by Bellevue based Expedia as a Senior IT Technician in the San Francisco office of subsidiary Hotwire.com. In order to provide IT support, LY had network privileges that allowed him to remotely access the electronic devices of Expedia executives. Using those privileges LY accessed documents and emails containing non- public information on the devices of both the Chief Financial Officer and the Head of Investor Relations. Using the non-public information LY executed a series of well-timed trades in Expedia stock options.
Even after he left the company in 2015, LY kept an Expedia laptop, and without the knowledge of the company, continued to access the electronic devices and email accounts of Expedia executives. LY used his know-how to make it appear that other Expedia employees were actually the ones accessing the devices. Shortly after discovering the computer intrusion, Expedia reported it to the FBI and undertook its own forensic investigation. Because of the quick reporting, the FBI was able to trace the computer intrusion to LY. As part of his plea agreement LY will repay Expedia the $81,592 it spent investigating the computer intrusion.
“Insider trading erodes the public’s trust in the financial markets. Reassuringly, most employees never exploit their unique knowledge for unfair investment advantages,” said FBI Special Agent in Charge Jay S. Tabb, Jr. of the FBI Seattle field division. “However, our FBI office is particularly attentive to uncovering when and where this type of fraud occurs, given this state’s high density of publicly traded companies. This case was particularly egregious because Mr. Ly abused his special access privileges as an IT administrator. On top of violating the trust of the public and his company, he violated the privacy of fellow employees by surreptitiously accessing their files.”
Securities fraud is punishable by up to 25 years in prison and a $250,000 fine. This is the maximum penalty allowed by law. The actual sentence imposed in any case will reflect the specific facts of the crime, including the impact on any victims and the defendant.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Kathryn Kim Frierson.
Former Counselor at Federal Prison Pleads Guilty to Bribery ChargeRead the Press Release
LEXINGTON, Ky. – A former counselor at the federal prison in Lexington has pleaded guilty to smuggling tobacco into the prison in exchange for payments from inmates.
On Friday, 43 year-old Elianna D. Gill, formerly employed as a counselor at the Federal Medical Center in Lexington, pleaded guilty to receiving a bribe as a public official. Gill waived her right to be indicted by a grand jury and pleaded guilty to the charges brought by Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky.
According to her plea agreement, from February 2014 to August 2015, Gill smuggled tobacco into the prison facility for multiple inmates who paid her a total of $5,500 in return. Prisoners incarcerated in federal correctional facilities, including FMC Lexington, are prohibited from possessing tobacco.
U.S. Attorney Harvey; John F. Oleskowicz, Special Agent in Charge, Department of Justice, Office of the Inspector General, Chicago Field Office; and Amy Hess, Special Agent in Charge, Federal Bureau of Investigation, jointly made the announcement.
The investigation was conducted by the Department of Justice, Office of the Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Andrew E. Smith prosecuted this case on behalf of the federal government.
Gill is scheduled to appear before U.S. District Judge Danny C. Reeves for sentencing on March 24, 2017. She faces a maximum sentence of 15 years of imprisonment, a $250,000 fine, and three years of supervised release. As a condition of her plea agreement, Gill must also repay all of the money she received from the offense.
Five Plead Guilty to Drug Charges in Relation to Operation Leaving Las VegasRead the Press Release
ABINGDON, VIRGINIA – Five individuals associated with a larger conspiracy charged with distributing methamphetamine and oxycodone in Southwest Virginia, Las Vegas, Eastern Kentucky and elsewhere, pled guilty today to Federal drug charges in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr. announced.
Today in District Court, Justin Michael Lowe, 24, Brandon Cody Trivett, 23, Lamar Allen Skipper, 27, Tanner Morris Curd, 23 and Gary Brandon Childress, 25, each pled guilty to a one count Information charging each with one count of conspiring to distribute methamphetamine and/or oxycodone. In addition, Skipper pled guilty to one count of conspiring to commit money laundering.
The charges were brought as part of an investigation conducted by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and others. Thirty-two individuals were indicted and arrested last month as part of that investigation.
“These five individuals were part of a larger drug conspiracy that brought methamphetamine, and other dangerous drugs into Virginia,” United States Attorney Fishwick said today. “These drugs ruin lives and communities and we will continue to be vigilant in taking down large scale conspiracies like this one.”
According to evidence presented at previous hearings by Assistant United States Attorney Zachary T. Lee, in 2014 law enforcement targeted a drug trafficking organization responsible for the transportation and distribution of crystal methamphetamine between Law Vegas and Abingdon, Virginia. The Investigation revealed that members of the organization were sending crystal methamphetamine and oxycodone via FedEx and the United States Parcel Service from Las Vegas to many people in Abingdon and Eastern Kentucky. Investigators were able to determine the identity not only of the local distributors of the crystal methamphetamine, but also the suppliers located in Las Vegas.
The investigation has found that at least $1,000,000 in drug proceeds were generated by this drug trafficking conspiracy. These proceeds were routinely transferred from Abingdon to Las Vegas utilizing bank accounts in the names of drug suppliers located in Law Vegas. Funds were also transferred between Abingdon and Las Vegas using Western Union and Moneygram services.
The investigation of the case was conducted by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Internal Revenue Service Criminal Investigations, United States Marshals Service, Virginia State Police, Washington County, Virginia Sheriff’s Office, Abingdon Police Department, Marion Police Department, and Smyth County, Virginia Sheriff’s Office. Assistant United States Attorney Zachary T. Lee will prosecute the case for the United States.
Federal Jury Convicts Englewood Man for Possessing A Firearm as A FelonRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Ernest L. Chambliss (45, Englewood) guilty of possessing a firearm as a convicted felon. He faces a minimum mandatory penalty of 15 years, up to life, in federal prison. His sentencing hearing is scheduled for March 17, 2017.
Chambliss was indicted on November 19, 2015.
According to testimony presented at trial, on April 16, 2015, Chambliss sold a firearm to a confidential informant. As a previously convicted felon, he was prohibited from possessing a firearm or ammunition under federal law. His prior criminal record also qualifies him for enhanced sentencing as an Armed Career Criminal under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sarasota County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Gregory T. Nolan and Christopher Murray.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Federal Jury Convicts California Man of Hate CrimeRead the Press Release
Defendant Fired Shotgun Round Toward Victim and Shouted, “Move … Out of Oildale”
After a five-day trial, a federal jury found Justin Cole Whittington, 25, of Bakersfield, California, guilty of federal hate crimes for firing a shotgun while yelling racist slurs at a Latino man.
The conviction was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Phillip A. Talbert of the Eastern District of California.
Whittington was convicted today of interfering with a person’s housing rights because of his race, color or national origin by use of force or threat of force; use of a firearm during a crime of violence; and making a false statement to a special agent of the FBI. Whittington had earlier pleaded guilty to unlawful possession of a prohibited firearm in connection to the same crime.
“Whittington used violence to terrorize an innocent man and his family,” said Principal Deputy Assistant Attorney General Gupta. “The harm from hate crimes like this one extends beyond individuals and threatens the security, freedom and well-being of entire communities. No conviction can reverse that harm but this verdict does provide a measure of justice for the victim, his family and his community.”
“The Eastern District of California is a community of different races, ethnicities and backgrounds,” said U.S. Attorney Talbert. “This defendant tried to strike at the diversity that enriches us by making a cowardly and unprovoked attack on a man who was simply standing in his front yard with his family. Hate crimes like this have profound effects not only on the victims, but on those in the victims’ communities, making them feel vulnerable and unsafe. Our office is committed to investigating and prosecuting those who violate the civil rights of others and enforcing laws against hate crimes will remain one of the core missions of this office.”
According to court documents, on Dec. 19, 2012, the victim, a Latino man, was standing in his front yard with his wife and son when a dark-colored PT Cruiser drove past slowly and came to a stop in front of his neighbor’s house. Whittington, whom the victim had never seen before, got out of the front passenger seat of the car holding a sawed-off shotgun. Whittington used profanity and shouted a racial epithet as he fired one round toward the victim from about 15 yards away, and yelled that the victim should move out of Oildale, California. Whittington got back into the vehicle and drove off. Shortly thereafter, the shotgun was fired from the car at a nearby convenience store owned by a man of Middle Eastern descent. The blast left a large hole in the store’s glass door and circles of missing paint on the metal gate in front of the store.
According to evidence presented at trial, the victim was able to describe Whittington and the car to Kern County, California, Sheriff’s deputies, and they found Whittington nearby standing outside the PT Cruiser. The deputies recovered a sawed-off shotgun in the trunk of Whittington’s Crown Victoria, which was parked near the PT Cruiser.
Whittington was also found guilty of making false statements to an FBI agent when he claimed that on the evening of the incident, he had been paid by someone to keep the sawed-off shotgun in the trunk of his car.
According to court documents and evidence presented at trial, the victim and his family no longer felt safe in their home and, as soon as they had the financial means to do so, they moved from the neighborhood.
Whittington is scheduled to be sentenced by U.S. District Judge Dale A. Drozd of the Eastern District of California on Feb. 27, 2017. Whittington faces a maximum sentence of life in prison and a $250,000 fine.
This case was investigated by the FBI and the Kern County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Brian K. Delaney of the Eastern District of California and Trial Attorney Samantha Trepel of the Civil Rights Division’s Criminal Section.
El Salvadoran Man Pleads Guilty to Illegally Reentering the United States After Having Been Previously DeportedRead the Press Release
CONCORD, N.H. –United States Attorney Emily Gray Rice announced today that Wilfredo Cuellar-Mejia, of El Salvador, has pleaded guilty to reentering the United States after having been deported previously.
According to court filings and statements in Court, on May 1, 2016, the defendant was arrested by a Manchester police officer for Driving While Intoxicated. A Deportation Officer with Immigration and Customs Enforcement - Enforcement and Removal Operations in Manchester was then contacted for assistance in positively identifying the defendant. A subsequent records check ultimately confirmed that the defendant had in fact been deported previously to El Salvador.
Cuellar-Mejia will be sentenced at 10:00 AM on March 16, 2017, and faces likely deportation after serving his sentence.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement. Assistant U.S. Attorney Alfred Rubega is prosecuting this case.
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Dunbar heroin dealer sentenced to federal prison for drug crimeRead the Press Release
CHARLESTON, W.Va. – A Dunbar man was sentenced today to a year and a half in federal prison for a heroin crime, announced United States Attorney Carol Casto. Christian Bowles, 25, previously pleaded guilty to distribution of heroin.
Bowles admitted that on March 24, 2015, he sold over four grams of heroin to a confidential informant working with law enforcement in exchange for $1,000. Bowles made the drug deal outside of his Dunbar residence. He further admitted that he was involved in the distribution of up to 20 grams of heroin.
The Charleston Police Department’s Special Enforcement Unit conducted the investigation. Assistant United States Attorney John J. Frail is handling the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Delhi man sentenced to 10 years in prison for receiving child pornographyRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that a Delhi man was sentenced to 120 months in federal prison for receiving child pornography.
Daniel Lee Brown, 28, of Delhi, La., was sentenced by U.S. District Judge Robert G. James on one count of receiving child pornography. He was also ordered to serve 10 years of supervised release and must register as a sex offender for the rest of his life. According to the September 12, 2016 guilty plea, Brown used the internet and Facebook, pretended to be a female teenager and directed an out-of-state 12-year-old to produce and send him child pornography. Brown received this child pornography using his computer in Delhi on October 28, 2014.
The U.S. Department of Homeland Security/Homeland Security Investigations, the Louisiana State Police, the Ouachita Parish Sheriff’s Office and the Bossier City Marshal’s Office investigated the case. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
Delaware Woman Sentenced to One Year in Prison for $145,000+ Embezzlement from Disabled SisterRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Rachel Woodall, age 40, of Wilmington, Delaware, was sentenced today by the Honorable Richard G. Andrews, United States District Judge for the District of Delaware, to twelve months and one day in prison, and full restitution. The defendant pleaded guilty to conversion of Social Security benefits in January.
According to court filings and statements made at the sentencing hearing, the defendant was the representative payee—responsible for caring for finances—for her intellectually disabled sister. In November, 2014, when her sister received large sums in back Social Security benefits, the defendant began embezzling from her sister. The defendant abused her position of trust to spend money on herself: she bought two Mercedes vehicles, wrote a $25,000 check to her own business, and made a number of withdrawals that she ultimately deposited in her own bank account—one as large as $51,000. In one 48-hour span in 2014, the defendant managed to spend or transfer almost $100,000 of her sister’s benefits. The defendant continued to make withdrawals on her sister’s bank account after pleading guilty in January.
U.S. Attorney Oberly stated, “This was an ongoing abuse of trust, in which Ms. Woodall took advantage of her position of power over her disabled sister. We take crimes victimizing the disabled very seriously, and they should be punished accordingly.”
“The Social Security Administration Office of the Inspector General (SSA OIG) is committed to investigating and pursuing individuals suspected of representative payee fraud,” said Michael McGill, Special Agent-in-Charge of the SSA OIG, Office of Investigations, Philadelphia Field Division. “Representative payee fraud is an egregious offense, not only because it involves the misuse of government benefits and other funds, but because it can cause severe harm and distress to some of the most vulnerable members of society, including the disabled and the elderly.”
This case was investigated by the Social Security Administration Office of the Inspector General, and was prosecuted by Assistant United States Attorneys Alexander Mackler and Jennifer Hall.
Citrus Heights Woman Convicted of Mortgage FraudRead the Press Release
SACRAMENTO, Calif. — After a four–day trial, a federal jury found Dianna F. Woods, 59, of Citrus Heights, guilty today of four counts of making false statements on loan applications, United States Attorney Phillip A. Talbert announced.
According to evidence presented at trial, Woods was a licensed real estate salesperson who worked at a company called VLD Realty, doing business as Trade House USA, in the Sacramento area. VLD built and sold houses in residential developments in Sacramento, Carmichael, and Copperopolis. As the housing market began to weaken from 2006 through 2008, VLD sought to sell the houses by offering incentives to buyers. VLD offered to pay the down payment or offered to give the buyers money after the sale, neither of which was disclosed to the lenders. For her part, Woods purchased two houses based on the undisclosed kickbacks. Further, for the purpose of obtaining loans to purchase the properties, Woods signed and submitted loan applications and other documents that contained false statements as to Woods’s income, employment, assets, the purpose of the property, the sales price, and whether the down payment was borrowed. Woods also assisted another buyer in making false statements to the lenders to get loans for the purchase of two properties in the housing developments and falsely verified his employment.
This case is the product of an investigation by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys Shelley Weger and Todd Pickles are prosecuting the case.
To date, six other defendants have been found guilty or have pleaded guilty in three related cases.
Woods is scheduled to be sentenced by United States District Judge William B. Shubb on February 27, 2017. Woods faces a maximum statutory penalty of 30 years in prison and a $1 million fine on each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Citizen of Cuba Sentenced to 7 Years in Prison for Eli Lilly Theft, Additional Multimillion Dollar BurglariesRead the Press Release
AMED VILLA, 51, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 84 months of imprisonment, followed by five years of supervised release, for his role in the theft of pharmaceuticals from an Eli Lilly Company warehouse and storage facility in Enfield, Conn., and similar warehouse burglaries in Illinois, Virginia, Florida and Kentucky.
According to court documents and statements made in court, in early 2010, Amaury Villa, Amed Villa, Yosmany Nunez and Alexander Marquez planned to steal pharmaceuticals from the Eli Lilly Company warehouse and storage facility in Enfield. The investigation revealed that, prior to the theft, Amaury Villa and Nunez traveled from the Miami area to Connecticut to gather information about the warehouse facility and the surrounding area. Shortly before the theft, Amed Villa and Rafael Lopez traveled to Flushing, N.Y., where they purchased tools needed to break into the warehouse facility, and then traveled to Connecticut.
In the evening of March 13, 2010, individuals involved in the theft dropped off a ladder in the rear parking lot of the warehouse facility and left. That same night, Marquez drove a tractor trailer to the facility. Thereafter, Amed Villa and Amaury Villa carried the ladder to the building, checked for security in the front area, climbed onto the roof, used the tools Amed Villa and Lopez had purchased to cut a hole in the facility roof, dropped down into the facility and disabled the alarm system. Amaury Villa, Amed Villa and Nunez then loaded more than 40 pallets of pharmaceuticals into the tractor trailer, which had been backed up to the loading dock of the warehouse.
The pallets of pharmaceuticals included thousands of boxes Zyprexa, Cymbalta, Prozac, Gemzar and other medicines, valued at approximately $60 million.
The individuals who participated in the theft split up in Connecticut. Marquez then drove the tractor trailer to Florida, where he subsequently reunited with Amaury Villa, Amed Villa and Nunez so the pharmaceuticals could be transferred from the tractor trailer into self-storage units in the Miami area.
On October 14, 2011, law enforcement authorities searched a storage facility in Florida and recovered pharmaceuticals that had been stolen from the Enfield warehouse.
Subsequent investigation revealed that Amed Villa and others also stole more than $13.3 million in pharmaceuticals from the GlaxoSmithKline warehouse in Colonial Heights, Virginia, in August 2009; more than $8 million in cigarettes and a cargo trailer from a warehouse in East Peoria, Illinois, in January 2010; approximately $7.8 million in cellular telephones and multimedia tablets from the Quality One Wireless warehouse in Orlando, Florida, in January 2011, and more than $1.5 million in cigarettes from the Coremark Cigarette Warehouse in Leitchfield, Kentucky, in March 2011.
During each of the thefts, Amed Villa and his co-conspirators gained entry into the warehouse through the roof, disabled the alarm system and loaded the stolen goods into tractor trailers. Amed Villa’s DNA was identified on items discarded during the thefts in Connecticut, Illinois, Florida and Virginia.
Amed Villa was charged with the additional thefts in the Eastern District of Virginia, Central District of Illinois, Middle District of Florida and Western District of Kentucky, respectively, and the cases were transferred to the District of Connecticut for further prosecution.
Amed Villa, a citizen of Cuba who last resided in Miami, has been detained since his arrest on May 3, 2012. He subsequently pleaded guilty to two counts of conspiracy to commit theft from an interstate shipment and five counts of theft from an interstate shipment.
Amaury Villa, Nunez, Marquez and Lopez also pleaded guilty to charges stemming from the Eli Lilly warehouse theft and have been sentenced.
The loss attributed to Amed Villa is approximately $90 million. The exact amount of restitution to be ordered will be determined after further submissions by the parties.
The investigation of the Connecticut warehouse theft has been led by the FBI in New Haven and the Enfield Police Department, the investigation of the Illinois theft has been led by ATF and the East Peoria Police Department, the investigation of the Virginia theft has been led by the FBI, the investigation of the Florida theft has been led by the FBI and the Orlando Police Department, and the investigation of the Kentucky theft has been led by ATF.
This matter is being prosecuted in the District of Connecticut by Assistant U.S. Attorneys Anastasia E. King and Douglas P. Morabito, with the valuable assistance of members of the U.S. Attorney’s Offices for the Central District of Illinois, Eastern District of Virginia, Middle District of Florida and Western District of Kentucky.
Cincinnati-Area Man Sentenced to 30 Years in Prison for Attempting Terrorism Plot to Kill Government EmployeesRead the Press Release
Christopher Lee Cornell, 22, of Green Township, Ohio, was sentenced today to 30 years in prison for plotting, planning and attempting an attack on government officials during the State of the Union Address in 2015 in the name of the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
Acting Assistant Attorney General for National Security Mary McCord, U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division made the announcement. Cornell pleaded guilty on Aug. 1 and was sentenced by Senior U.S. District Judge Sandra Beckwith of the Southern District of Ohio, who also ordered Cornell to serve a lifetime term of supervised release.
“With this sentence, Christopher Lee Cornell is being held accountable for plotting to kill federal officials in the name of ISIL,” said Acting Assistant Attorney General McCord. “Counterterrorism remains our highest priority and we will continue to identify and hold accountable those who seek to commit acts of terrorism within our borders.”
“The seriousness of this crime is apparent,” said U.S. Attorney Glassman. “Cornell plotted to commit violence as a symbolic attack on the United States as a whole. An attempt to murder another individual is horrific enough and justifies a significant sentence. But this was more than that. Cornell wanted to inflict pain on the spirit of the entire country, and terrorize its leadership. Today’s sentence appropriately holds him accountable for that.”
According to the plea agreement, from on or about August 2014 through January 2015, Cornell plotted, planned and attempted to travel to Washington, D.C., in order to attack the U.S. Capitol during the State of the Union Address on Jan. 20, 2015.
Cornell admitted that he conducted online research of weapons, the construction of bombs, the U.S. Capitol and other potential targets in the Washington, D.C., area. He intended to kill officers and employees of the United States, and possessed two semi-automatic rifles and approximately 600 rounds of ammunition.
In addition, Cornell admitted that his planned attack on the U.S. Capitol was an attempt to provide material support and resources – both personnel and services – to ISIL.
Cornell was arrested on Jan. 14, 2015, by the FBI’s Joint Terrorism Task Force (JTTF). After his arrest, he posted statements online that included a call for others to join him in violent jihad against the United States and its citizens on behalf of ISIL, according to admissions made in connection with the plea agreement.
The JTTF is made up of officers and agents from the Cincinnati Police Department; Colerain, Ohio, Police Department; Dayton Ohio, Police Department; Ohio State Highway Patrol; University of Cincinnati Police Department; U.S. Air Force Office of Special Investigations; FBI; U.S. Immigrations and Customs Enforcement; U.S. Internal Revenue Service; U.S. Secret Service; U.S. Postal Inspection Service; West Chester, Ohio, Police Department; and Xenia, Ohio, Police Department.
Acting Assistant Attorney General McCord and U.S. Attorney Glassman commended the JTTF for its investigation of this case. The case is being prosecuted by Trial Attorney Michael Dittoe of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Tim Mangan of the Southern District of Ohio.
Cincinnati-Area Man Sentenced to 30 Years for Attempting Terrorism Plot to Kill Government EmployeesRead the Press Release
CINCINNATI – Christopher Lee Cornell, 22, of Green Township, Ohio, was sentenced in U.S. District Court today to 30 years in prison and lifetime supervised release for plotting, planning and attempting an attack on government officials during the State of the Union Address in 2015 in the name of ISIL.
Acting Assistant Attorney General for National Security Mary McCord, U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division announced the sentence handed down today by Senior U.S. District Judge Sandra Beckwith.
According to court documents, from on or about August 2014 through January 2015, Cornell plotted, planned and attempted to travel to Washington, D.C., in order to attack the U.S. Capitol during the State of the Union Address on January 20, 2015.
Cornell conducted online research of weapons, the construction of bombs, the U.S. Capitol and other potential targets in the Washington, D.C., area. He intended to kill officers and employees of the United States, and possessed two semi-automatic rifles and approximately 600 rounds of ammunition.
The defendant admitted that his planned attack on the U.S. Capitol was an attempt to provide material support and resources – both personnel and services – to the Islamic State of Iraq and the Levant (ISIL).
Cornell was arrested on Jan. 14, 2015, by the FBI’s Joint Terrorism Task Force (JTTF). After his arrest, he posted statements online that included a call for others to join him in violent jihad against the United States and its citizens on behalf of ISIL.
“One would think that the shock of being arrested for these offenses would have an immediate and sobering effect on a young man’s psyche. But that is not what happened,” Assistant U.S. Attorney Tim Mangan wrote in this case’s sentencing memorandum. “Cornell became even more proud of and obstinate regarding his attack plans and allegiance to ISIL, calling himself a prisoner of war. He remained determined to cause harm and tried (in multiple ways) to rally others to violence…instead of recognizing his own fault.”
Cornell was originally charged by an indictment returned by a federal grand jury on Jan. 21, 2015. On May 7, 2015, Cornell was additionally charged by superseding indictment. He pleaded guilty on August 1 to one count of attempting to kill government employees, one count of possession of a firearm in furtherance of a crime of violence and one count of attempting to provide material support to a designated foreign terrorist organization.
“The seriousness of this crime is apparent,” U.S. Attorney Glassman said. “Cornell plotted to commit violence as a symbolic attack on the United States as a whole. An attempt to murder another individual is horrific enough and justifies a significant sentence. But this was more than that. Cornell wanted to inflict pain on the spirit of the entire country, and terrorize its leadership. Today’s sentence appropriately holds him accountable for that.”
The JTTF is made up of officers and agents from the Cincinnati Police Department, Colerain, Police Department, Dayton Police Department, Ohio State Highway Patrol, University of Cincinnati Police Department, U.S. Air Force Office of Special Investigations, FBI, U.S. Immigrations and Customs Enforcement, U.S. Internal Revenue Service, U.S. Secret Service, U.S. Postal Inspection Service, West Chester Police Department and Xenia Police Department.
Acting Assistant Attorney General McCord and U.S. Attorney Glassman commended the JTTF for its investigation of this case. The case is being prosecuted by Assistant U.S. Attorney Tim Mangan and Trial Attorney Michael Dittoe of the National Security Division’s Counterterrorism Section.
Chinese National Sentenced for Lead Role in Test Taking ConspiracyRead the Press Release
PITTSBURGH - A Chinese national has been sentenced in federal court to 3 years’ probation on his conviction of conspiracy, manufacturing of fraudulent passports, and mail and wire fraud in relation to a scheme involving the fraudulent taking of college entrance exams, Acting United States Attorney Soo C. Song announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Han Tong.
According to information presented to the court, Han Tong acted as a facilitator for Chinese nationals to have the SAT and TOEFL examinations taken on their behalf by himself and others. Using counterfeit passports that contained identifying information of the Chinese nationals and the impostors’ photographs, Tong and his associates earned scores on college entrance examinations which were then used to earn admission to universities within the United States. Those who had the tests taken for them were also able to obtain F-1 Visas to enter the United States as students on the basis of that fraudulent admission.
“Conspiracy and fraud schemes like the one perpetrated by Mr. Tong for monetary gain undermine the integrity of the educational system in this country. The defendant’s actions also pose a very real threat to national security,” said Marlon V. Miller, special agent in charge of HSI in Pennsylvania.
Prior to imposing sentence, Judge Conti stated that her sentence reflected the seriousness of the offense in that it allowed people who otherwise would not have been eligible to enter the U.S. to enter and also brought unfairness to the American education system. Tong has been turned over to Immigration authorities for processing.
Assistant United States Attorney James T. Kitchen prosecuted this case on behalf of the government.
Acting U.S. Attorney Song commended the Department of Homeland Security, Homeland Security Investigations and the Department of State for the investigation leading to the successful prosecution of Tong.
Carbondale Man Sentenced for Tax EvasionRead the Press Release
SCRANTON-The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Thomas Rice, age 65, of Carbondale, Pennsylvania was sentenced by United States District Court Judge Malachy Mannion on December 2, 2016, to 10 months’ home confinement and three years’ probation for evading his mother’s income taxes.
Pursuant to a plea agreement, Rice paid $56,424 in restitution prior to sentencing.
According to United States Attorney Bruce D. Brandler, Rice had power of attorney for his mother and evaded paying approximately $65,000 in taxes from 2004-2008.
The case was investigated by the Internal Revenue Service. Assistant United States Attorney Evan Gotlob prosecuted the case.
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CEO of publicly traded company along with two others sent to federal prisonRead the Press Release
Defrauded biodiesel purchasers and shareholders
Press Release
INDIANAPOLIS - United States Attorney Josh Minkler and Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division announced today the sentencing of two individuals who defrauded investors and biodiesel purchasers of millions of dollars.
“Indiana is not the place to try to fool the investing public,” said U.S. Attorney Minkler, “Here, we expect executives to care about shareholders and to be upfront and honest about what the companies they manage are doing. They are simply thieves with fancy titles and they will now spend time in a federal prison.”
Jeffrey Wilson and Craig Ducey were sentenced to serve prison terms of 120 months and 74 months, respectively, for their roles in multi-million-dollar fraud schemes involving: biodiesel tax credits, renewable fuel credits and shares of Imperial Petroleum Inc. Yesterday, Chad Ducey was sentenced to an 84-month prison term for his role in the same schemes. These defendants were the last to be sentenced from a gaggle of seven charged co-conspirators. The others, Joseph Furando, Katirina Tracy, Brian Carmichael and Chris Ducey were sentenced at prior hearings. Although charged in three separate cases, all the defendants were involved in fraud involving federal incentives to produce renewable fuels, specifically biodiesel.
Today’s sentences were the first to address securities fraud charges leveled against Wilson and Craig Ducey. That fraud stemmed from lies those defendants told in the course of their dealings with investors, auditors and the Securities and Exchange Commission, while representing Imperial Petroleum. Wilson, the President and Chief Executive Officer of Imperial Petroleum, was the person who drafted and certified the accuracy of Imperial’s quarterly and annual reports and made those reports available to the investing public through filings with the Securities and Exchange Commission (SEC). He also lied to the company’s outside auditor to keep him from learning of the scheme. At a jury trial in July 2016, he was convicted for his role in the fraud. In April 2015, Craig Ducey admitted to related crimes and began cooperating with the United States; he testified at Wilson’s at trial and the court recognized his substantial assistance in giving him a lower sentence than Wilson.
“Biodiesel has the potential to make the nation’s transportation sector more sustainable, while decreasing our dependence on foreign energy sources, but only if done right,” said Assistant Attorney General Cruden. “The defendants’ fraud in these cases not only cheated customers, investors and taxpayers, it set renewable fuel efforts back for the entire nation. At a time when Americans should have been working together to have clean, sustainable and safe energy, the defendants chose to line their own pockets. Prison is the appropriate consequence.”
“Today’s sentencing is the final chapter in a complex scheme involving phony renewable fuel credits,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “The Renewable Fuel Standard is designed to reduce greenhouse gases, fight climate change and reduce our dependence on foreign oil. EPA and its partners are committed to protecting the integrity of this important program and to ensuring a level playing field for honest companies.”
As shown at Wilson’s trial, the securities fraud began when Wilson learned that e-biofuels LLC—a business that Wilson arranged for Imperial Petroleum to buy—was faking paperwork to claim incentives for biodiesel it had not manufactured. Put another way, Wilson learned that the e-biofuels managers fraudulently claimed millions in federal tax rebates and other incentives that had no basis in real manufacturing. Knowing that it was much more profitable for e-biofuels to fraudulently claim government incentives on biodiesel that had been made by somebody else, Wilson directed the e‑biofuels managers to move more and more gallons of such fuel rather than incur the cost associated with legitimate biodiesel production. Despite their knowledge that the e-biofuels facility was dormant, Wilson and Craig Ducey told investors, auditors and SEC that it made millions of gallons a month from raw materials like chicken fat. This defrauded biodiesel buyers—who were duped into taking bad tax credits and renewable fuel credits—and also defrauded investors, who would never have invested in Imperial Petroleum had they known its profits were based on sham manufacturing.
On Thursday, Chad Ducey was sentenced for his role in the underlying wire, tax fraud and environmental crime that were hidden by the securities fraud (he was not charged with securities fraud). Chad Ducey owned e-biofuels, together with his brother Craig Ducey, until they sold it to Imperial Petroleum in a deal that Wilson organized. Chad Ducey was intimately familiar with how the e-biofuels facility worked and knew that it was not manufacturing biodiesel between July 2010 and June 2011. Nevertheless, he twice persuaded an outside engineer that the facility was a biodiesel producer as essential steps to registering and claiming renewable fuel incentives.
In addition, as shown during Wilson’s trial, Chad Ducey worked with Wilson and others to try to establish “beachheads” in Texas. A beachhead would have been a fuel transload facility used to disguise the transfer of biodiesel to an e-biofuels customer from a Texas fuel terminal where it was purchased. Essentially, a brief stop at the beachhead would have stood in for actual biodiesel production. Chad Ducey traveled to Texas in order to scout sites for the transload facility. Workers at e-biofuels called these remote, no-production transfers “ghost loads” and the transload facility was planned to hide those loads. Ghost loads occurred in Texas and between fuel terminals and e-biofuels customers in Illinois, Indiana and Pennsylvania.
“Today’s sentencing represents the culmination of a five-year investigation of the largest tax and securities fraud scheme in Indiana history,” said Special Agent in Charge W. Jay Abbott of the Indianapolis Office of the Federal Bureau of Investigation (FBI). “The FBI collaborated with our partner agencies from the beginning to uncover the significant and widespread fraudulent activity. The complexity and magnitude of this scheme required extensive forensic accounting and computer forensic work. The FBI will continue to thoroughly investigate individuals that commit illegal acts by stealing money from individuals, businesses, and government programs.”
“Imperial Petroleum’s top executive played a key role in this massive scheme to deceive investors,” said Regional Director David Glockner of the SEC Chicago Regional Office. “The SEC was pleased to participate in a multi-agency effort to hold him accountable.”
“The sentencings handed down send a loud message that IRS Criminal Investigation operates year round to protect the integrity of our tax system and today is a victory for the American people” said Special Agent in Charge James Robnett for the Internal Revenue Service-Criminal Investigation (IRS-CI). “The object of the defendant’s schemes was to defraud the government, the IRS and the taxpaying public. IRS-CI together with the cooperative efforts of our law enforcement partners, identified and vigorously investigated and put a stop to the fraud and those involved in this scheme.”
The wire fraud, tax fraud, securities fraud and environmental crime investigation that culminated in this week’s sentencing hearings began in January 2012, when investigators from the FBI, the Environmental Protection Agency’s (EPA) Criminal Investigation Division, IRS-CI and the SEC began meeting with a whistleblower whose statements were corroborated by government agency data. That led the investigative team to conclude that e-biofuels had engaged in sham manufacturing and tax fraud. Based on intense work at the beginning of the investigation, the team obtained a multi-state search warrant in May 2012, which yielded substantial additional evidence and witness accounts. For over a year, prosecutors and attorneys from the U.S. Attorney’s Office for the Southern District of Indiana, the Environmental Crimes Section of the Department of Justice and SEC pursued the investigation of this matter with special agents of the FBI, EPA, and IRS. Their work involved nearly 100 witness interviews and the review of millions of documents.
The United States approached targets of the investigation and sought pre-indictment plea agreements with them. Ultimately, one defendant, Brian Carmichael, entered into a plea agreement before indictment. The others were indicted in September of 2013. After multiple continuances sought by the defendants and one additional plea, the first case, involving tax fraud, wire fraud and false statements under the Clean Air Act, was set for a final trial date of May 2015. Ultimately, all of the defendants in that case pleaded guilty before trial. The second case, which was the case against Jeffrey Wilson for securities fraud, was scheduled for trial and then continued at the defendant’s request. It was continued and ultimately set for a final trial date of July 2016. In a two-week trial, the United States presented evidence that Wilson had lied to investors in person, through filings he created for his publicly traded company and indirectly through company auditors. Wilson was convicted of fraud in the offer and sale of securities, falsely certifying annual and quarterly reports filed with SEC, lying to a public company’s outside auditor and making false statements to investigators. Today’s sentencing hearing establishes Wilson’s punishment for those convictions.
According to Steven DeBrota, Senior Litigation Counsel for the Southern District of Indiana, Thomas Ballantine, Assistant Section Chief of the Environmental Crimes Section for the DOJ and Jake Schmidt, SEC Senior Attorney, all who prosecuted this case for the government, Wilson must also make $16 million in restitution.
Buffalo Man Sentenced in Deadly Martin Luther King Park ShootingRead 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 Tariq Brown, 23, of Buffalo, NY, who was convicted of RICO Conspiracy in connection with the May 12, 2012 shooting at Martin Luther King Park that left Marquay Lee dead and four other individuals wounded, was sentenced to 22 years in prison by Senior U.S. District Judge William M. Skretny. Two of the injured persons suffered permanent injuries, one victim is now a paraplegic and another was blinded in one eye.
According to Assistant U.S. Attorneys Meghan A. Tokash and Michael Felicetta, who handled the prosecution of this case, Brown is alleged to be a member of the Bailey Boys Gang, a violent criminal gang which operates in an area of the City of Buffalo bounded by Winspear Avenue, the Kensington Expressway, Eggert Road and Main Street. The defendant Brown already stands accused of three other attempted murders which injured two people.
As a result of the ongoing investigation into the Bailey Boys Gang, members now stand accused of four murders, 14 attempted murders, including four drive-by shootings. The attempted murders include a shooting that occurred during a neighborhood party with numerous children present and a shooting that occurred during a robbery. A total of 11 were arrested and to date, seven defendants have been convicted. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the result of an ongoing investigation on the part of the United States Attorney’s Office in close cooperation with the Erie County District Attorney’s Office, under the direction of Acting District Attorney Michael Flaherty, the Buffalo Police Department, under direction of Police Commissioner Daniel Derenda, the Federal Bureau of Investigation’s Safe Streets Task Force, under the Direction of Special Agent in Charge Adam S. Cohen, the Erie County Sheriff’s Office, under the direction of Sheriff Timothy B. Howard, the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Ashan Benedict, New York Field Division.Bettendorf Man Sentenced to 120 Months in Prison for Child Pornography ChargesRead the Press Release
Davenport, IA- On December 1, 2016, Andrew Thomas Zinngrabe, 37, of Bettendorf, Iowa, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 120 months in prison for receiving and distributing child pornography, announced United States Attorney Kevin E. VanderSchel. Zinngrabe was ordered to serve ten years of supervised release following his release from prison.
On July 26, 2016, Zinngrabe pleaded guilty to the charges and admitted he received and distributed child pornography in the Southern District of Iowa between April 1 and April 6, 2015. The charges were the result of a peer-to-peer file sharing investigation by the Iowa Division of Criminal Investigation Internet Crimes Against Children Task Force. Investigators downloaded a file supplied by Zinngrabe that contained over 100 images of child pornography. A search of Zinngrabe’s computer revealed he possessed 1,680 pictures and six videos containing child pornography.
This investigation was conducted by the Scott County Sheriff’s Department, Bettendorf Police Department, Davenport Police Department and the Iowa Division of Criminal Investigation Internet Crimes Against Children Task Force. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Avalanche Network Dismantled in International Cyber OperationRead the Press Release
WASHINGTON – The Justice Department today announced a multinational operation involving arrests and searches in four countries to dismantle a complex and sophisticated network of computer servers known as “Avalanche.” The Avalanche network allegedly hosted more than two dozen of the world’s most pernicious types of malicious software and several money laundering campaigns.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Soo C. Song of the Western District of Pennsylvania and Special Agent in Charge Robert Johnson of the FBI’s Pittsburgh Division made the announcement.
“For years, sophisticated cyber criminals have used our own technology against us—but as their networks have grown more complex and widespread, criminals increasingly rely on an international infrastructure as well,” said Assistant Attorney General Caldwell. “Avalanche is just one example of a criminal infrastructure dedicated to facilitating privacy invasions and financial crimes on a global scale. And now a multinational law enforcement coalition has turned the tables on the criminals, by targeting not just individual actors, but the entire Avalanche infrastructure. Successful operations like this one can disrupt an entire criminal ecosystem in one strike.”
“The takedown of Avalanche was unprecedented in its scope, scale, reach and cooperation among 40 countries,” said Acting U.S. Attorney Song. “This is the first time that we have aimed to and achieved the destruction of a criminal cyber infrastructure while disrupting all of the malware systems that relied upon it to do harm.”
“Cyber criminals operate without regard for national borders, and they pose a serious and growing threat to all of us,” said Special Agent in Charge Johnson. “This investigation highlights, once again, that the only way to effectively combat cyber crime is with a coordinated international law enforcement approach. Together with our law enforcement partners across the globe, the FBI is as comfortable chasing criminals in cyberspace as we are on the streets of our communtites here at home.”
The Avalanche network offered cybercriminals a secure infrastructure, designed to thwart detection by law enforcement and cyber security experts, over which the criminals conducted malware campaigns as well as money laundering schemes known as “money mule” schemes. Online banking passwords and other sensitive information stolen from victims’ malware-infected computers was redirected through the intricate network of Avalanche servers and ultimately to backend servers controlled by the cybercriminals. Access to the Avalanche network was offered to the cybercriminals through postings on exclusive, underground online criminal forums.
The operation also involved an unprecedented effort to seize, block and sinkhole – meaning, redirect traffic from infected victim computers to servers controlled by law enforcement instead of the servers controlled by cybercriminals – more than 800,000 malicious domains associated with the Avalanche network. Such domains are needed to funnel information, such as sensitive banking credentials, from the victims’ malware-infected computers, through the layers of Avalanche servers and ultimately back to the cybercriminals. This was accomplished, in part, through a temporary restraining order obtained by the United States in the Western District of Pennsylvania.
The types of malware and money mule schemes operating over the Avalanche network varied. Ransomware such as Nymain, for example, encrypted victims’ computer files until the victim paid a ransom (typically in a form of electronic currency) to the cybercriminal. Other malware, such as GozNym, was designed to steal victims’ sensitive banking credentials and use those credentials to intiate fraudulent wire transfers. The money mule schemes operating over Avalanche involved highly organized networks of “mules” who purchased goods with stolen funds, enabling cybercriminals to launder the money they acquired through the malware attacks or other illegal means.
The Avalanche network, which has been operating since at least 2010, was estimated to serve clients operating as many as 500,000 infected computers worldwide on a daily basis. The monetary losses associated with malware attacks conducted over the Avalanche network are estimated to be in the hundreds of millions of dollars worldwide, although exact calculations are difficult due to the high number of malware families present on the network.
Several victims of Avalanche-based malware attacks are located in the Western District of Pennsylvania. A local governmental office was the victim of a Nymain malware attack in which computer files were encrypted until the victims paid a Bitcoin ransom in exchange for decrypting the files. Two companies, based in New Castle and Carnegie, Pennsylvania, and their respective banks were victims of GozNym malware attacks. In both attacks, employees received phishing emails containing attachments designed to look like legitimate business invoices. After clicking on the links, GozNym malware was installed on the victims’ computers. The malware stole the employees’ banking credentials which were used to initiate unauthorized wire transfers from the victims’ online bank accounts.
The U.S. Attorney’s Office of the Western District of Pennsylvania, the FBI and the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) conducted the operation in close cooperation with the Public Prosecutor’s Office Verden; the Luneburg Police of Germany; Europol; and Eurojust, located in The Hague, Netherlands; and investigators and prosecutors from more than 40 jurisdictions, including India, Singapore, Taiwan and Ukraine.
Other agencies and organizations partnering in this effort include the Department of Homeland Security’s U.S.-Computer Emergency Readiness Team (US-CERT), the Shadowserver Foundation, Fraunhofer Institute for Communication, Registry of Last Resort, ICANN and domain registries from around the world. The Criminal Division’s Office of International Affairs also provided significant assistance.
Assistant U.S. Attorney Charles Eberle of the Western District of Pennsylvania and CCIPS Senior Trial Attorney Richard D. Green are prosecuting the case. Assistant U.S. Attorney Michael A. Comber of the Western District of Pennsylvania and CCIPS Senior Trial Attorney Green are handling the civil action to disrupt the malware operating over the Avalanche network.
Individuals who believe that they may have been victims of malware operating over the Avalanche network may use the following webpage created by US-CERT for assistance in removing the malware: www.us-cert.gov/avalanche.
Anyone claiming an interest in any of the property seized or actions enjoined pursuant to the court orders described in this release is advised to visit the following website for notice of the full contents of the orders: https://www.justice.gov/opa/documents-and-resources-december-5-2016-announcement-takedown-international-cybercriminal.
Avalanche Network Dismantled in International Cyber OperationRead the Press Release
The Justice Department today announced a multinational operation involving arrests and searches in four countries to dismantle a complex and sophisticated network of computer servers known as “Avalanche.” The Avalanche network allegedly hosted more than two dozen of the world’s most pernicious types of malicious software and several money laundering campaigns.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Soo C. Song of the Western District of Pennsylvania and Assistant Director Scott S. Smith of the FBI’s Cyber Division made the announcement.
“For years, sophisticated cyber criminals have used our own technology against us—but as their networks have grown more complex and widespread, criminals increasingly rely on an international infrastructure as well,” said Assistant Attorney General Caldwell. “Avalanche is just one example of a criminal infrastructure dedicated to facilitating privacy invasions and financial crimes on a global scale. And now a multinational law enforcement coalition has turned the tables on the criminals, by targeting not just individual actors, but the entire Avalanche infrastructure. Successful operations like this one can disrupt an entire criminal ecosystem in one strike.”
“The takedown of Avalanche was unprecedented in its scope, scale, reach and cooperation among 40 countries,” said Acting U.S. Attorney Song. “This is the first time that we have aimed to and achieved the destruction of a criminal cyber infrastructure while disrupting all of the malware systems that relied upon it to do harm.”
“We are committed to halting cybercriminal activity against the United States,” said Assistant Director Smith. “Cybercriminals can victimize millions of users in a moment from anywhere in the world. This takedown highlights the importance of collaborating with our international law enforcement partners against this evolution of organized crime in the virtual.”
The Avalanche network offered cybercriminals a secure infrastructure, designed to thwart detection by law enforcement and cyber security experts, over which the criminals conducted malware campaigns as well as money laundering schemes known as “money mule” schemes. Online banking passwords and other sensitive information stolen from victims’ malware-infected computers was redirected through the intricate network of Avalanche servers and ultimately to backend servers controlled by the cybercriminals. Access to the Avalanche network was offered to the cybercriminals through postings on exclusive, underground online criminal forums.
The operation also involved an unprecedented effort to seize, block and sinkhole – meaning, redirect traffic from infected victim computers to servers controlled by law enforcement instead of the servers controlled by cybercriminals – more than 800,000 malicious domains associated with the Avalanche network. Such domains are needed to funnel information, such as sensitive banking credentials, from the victims’ malware-infected computers, through the layers of Avalanche servers and ultimately back to the cybercriminals. This was accomplished, in part, through a temporary restraining order obtained by the United States in the Western District of Pennsylvania.
The types of malware and money mule schemes operating over the Avalanche network varied. Ransomware such as Nymain, for example, encrypted victims’ computer files until the victim paid a ransom (typically in a form of electronic currency) to the cybercriminal. Other malware, such as GozNym, was designed to steal victims’ sensitive banking credentials and use those credentials to initiate fraudulent wire transfers. The money mule schemes operating over Avalanche involved highly organized networks of “mules” who purchased goods with stolen funds, enabling cybercriminals to launder the money they acquired through the malware attacks or other illegal means.
The Avalanche network, which has been operating since at least 2010, was estimated to serve clients operating as many as 500,000 infected computers worldwide on a daily basis. The monetary losses associated with malware attacks conducted over the Avalanche network are estimated to be in the hundreds of millions of dollars worldwide, although exact calculations are difficult due to the high number of malware families present on the network.
Several victims of Avalanche-based malware attacks are located in the Western District of Pennsylvania. A local governmental office was the victim of a Nymain malware attack in which computer files were encrypted until the victims paid a Bitcoin ransom in exchange for decrypting the files. Two companies, based in New Castle and Carnegie, Pennsylvania, and their respective banks were victims of GozNym malware attacks. In both attacks, employees received phishing emails containing attachments designed to look like legitimate business invoices. After clicking on the links, GozNym malware was installed on the victims’ computers. The malware stole the employees’ banking credentials which were used to initiate unauthorized wire transfers from the victims’ online bank accounts.
The U.S. Attorney’s Office of the Western District of Pennsylvania, the FBI and the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) conducted the operation in close cooperation with the Public Prosecutor’s Office Verden; the Luneburg Police of Germany; Europol; and Eurojust, located in The Hague, Netherlands; and investigators and prosecutors from more than 40 jurisdictions, including India, Singapore, Taiwan and Ukraine.
Other agencies and organizations partnering in this effort include the Department of Homeland Security’s U.S.-Computer Emergency Readiness Team (US-CERT), the Shadowserver Foundation, Fraunhofer Institute for Communication, Registry of Last Resort, ICANN and domain registries from around the world. The Criminal Division’s Office of International Affairs also provided significant assistance.
Assistant U.S. Attorney Charles Eberle of the Western District of Pennsylvania and CCIPS Senior Trial Attorney Richard D. Green are prosecuting the case. Assistant U.S. Attorney Michael A. Comber of the Western District of Pennsylvania and CCIPS Senior Trial Attorney Green are handling the civil action to disrupt the malware operating over the Avalanche network.
Individuals who believe that they may have been victims of malware operating over the Avalanche network may use the following webpage created by US-CERT for assistance in removing the malware: www.us-cert.gov/avalanche.
Anyone claiming an interest in any of the property seized or actions enjoined pursuant to the court orders described in this release is advised to visit the following website for notice of the full contents of the orders: https://www.justice.gov/opa/documents-and-resources-december-5-2016-announcement-takedown-international-cybercriminal.
Albuquerque Man Pleads Guilty to Federal Heroin Trafficking ChargeRead the Press Release
ALBUQUERQUE – Phillip Larry Gonzales, 28, of Albuquerque, N.M., pled guilty today in federal court to a heroin trafficking charge. Under the terms of his plea agreement, Gonzales will be sentenced within the range of 36 to 48 months in prison followed by a term of supervised release to be determined by the court.
Gonzales was arrested during an ATF-led investigation that resulted in the filing of 59 federal indictments and one federal criminal complaint charging 104 Bernalillo County residents with federal firearms and narcotics trafficking offenses. The investigation began in mid-April 2016, when ATF personnel from throughout the country joined forces with federal, state, county and local law enforcement agencies in New Mexico to combat the high rate of violent crime in the Albuquerque metropolitan area. The investigators utilized a number of investigative techniques, including undercover operations, historical investigation and targeting of multi-convicted felons in possession of firearms.
The investigation was undertaken in support of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies collaborate with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Gonzales was arrested on Aug. 10, 2016, on an indictment charging him with distribution of heroin on July 27, 2016, in Bernalillo County, N.M. The indictment included forfeiture provisions requiring Gonzales to forfeit $1,100 to the United States.
During today’s change of plea hearing, Gonzales pled guilty to the indictment. In entering his guilty plea, Gonzales admitted that On July 27, 2016, he sold approximately 26.7 grams of heroin to an undercover law enforcement agent. He remains in custody pending a sentencing hearing which has yet to be scheduled.
To date, 14 of the 104 defendants charged as a result of the ATF investigation have entered guilty pleas. The remaining defendants have entered not guilty pleas. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The case was investigated by the Albuquerque offices of ATF and DEA, and is being prosecuted by Assistant U.S. Attorney Rumaldo R. Armijo as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Accountant Sentenced to Federal Prison for $1.4 Million Mortgage Fraud Scheme Involving Baltimore City PropertiesRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Cecil Sylvester Chester, age 70, of Mitchellville, Maryland today to two years in prison, followed by three years of supervised release, for a mortgage fraud scheme involving the fraudulent purchase of seven properties in Baltimore, using fraudulent loan documentation and straw purchasers, resulting in losses of over $1.4 million. Judge Bredar also ordered Chester to pay restitution of at least $1.483 million, with the exact amount to be determined by the Court.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation; Special Agent in Charge Bertrand Nelson of the U.S. Department of Housing and Urban Development Office of Inspector General; and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
Chester worked as an accountant from an office located on New Hampshire Avenue in Hyattsville, Maryland. Co-conspirator Andreas Tamaris purchased, renovated, and then resold distressed row houses in Baltimore City, primarily in the Highlandtown area. Co-conspirators Michael Camphor was a real estate agent and Christopher A. Kwegan was a real estate agent and general contractor.
According to his guilty plea, from February 2008 to July 2009, Chester and his co-conspirators, found buyers for Tamaris’ properties and for other property owners. Chester persuaded individuals, who were inexperienced with residential real estate transactions and who lacked the funds needed to pay the down payment and closing costs, to purchase Baltimore row houses owned by Tamaris or otherwise located by the conspirators. Chester advised these “straw purchasers” that they didn’t need to contribute funds for the down payment or closing costs to buy these properties. Chester also advised that he would place tenants in the properties whose rent payments would cover the monthly mortgage payments after the transactions closed, and that Chester would collect the rent and make the mortgage payments.
Chester and his co-conspirators set the purchase price for the properties to exceed their actual fair market value, thereby generating excess proceeds from the transactions from which they could profit. For example, when Kwegan located a house he wanted to sell, he sought assistance from Chester and real estate agent/consultant Michael Camphor, who were already operating a mortgage fraud scheme. Chester, Kwegan and Camphor set the price of a row house in Baltimore at $250,000, rather than the actual market price of approximately $75,000. Kwegan derived over $100,000 in proceeds from the sale of this home to a straw purchaser and paid another $40,000 to Chester for his assistance.
Chester, Camphor, and others recruited buyers to purchase houses, knowing that they did not qualify for the home mortgages. The conspirators provided false information about the straw purchasers’ employment, income and financial assets, as well as fraudulent supporting documentation to the mortgage loan brokers to enable the straw purchasers to qualify for home mortgage loans. The conspirators falsely indicated to the mortgage loan brokers that the straw purchasers each intended to use the property as their primary residence following the purchase. Tamaris and other individuals supplied the funds needed for the down payment and closing costs on each of the transactions, and were in turn reimbursed from the loan proceeds at settlement.
Chester brought the straw purchasers to the closing, and then caused the straw purchasers to falsely sign certifications in the closing documents affirming that they intended to use the properties as their primary residence and that no portion of the down payment and closing costs were borrowed. Following the settlement on each transaction in which they participated, Chester and the other conspirators received substantial payments drawn from the proceeds of the loan.
Few, if any, payments were made towards the mortgages. The seven properties in which Chester was involved all went into foreclosure, resulting in a loss of at least $1.483 million.
In related proceedings, Andreas E. Tamaris, age 46, of Bel Air, Maryland, Christopher A. Kwegan, age 59, of Randallstown, Maryland, Michael Gerard Camphor, age 60, of Baltimore, and Alexander Sivels, II, age 32, of Baltimore, previously pleaded guilty to their roles in this, or related mortgage fraud schemes. Tamaris was sentenced to 15 months in prison and was ordered to pay $1,229,206.28 in restitution. Sivels and Kwegan were each sentenced to 27 months in prison. Judge Bredar ordered Sivels to pay restitution of $1,317,314.35, and ordered Kwegan to pay restitution of $530,641.27. Camphor is scheduled to be sentenced on December 19, 2016.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available at http://www.justice.gov/usao-md/financial-fraud-and-identity-theft .
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI, HUD OIG - Office of Investigations and the U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who is prosecuting the case.
4 December 2016
Statement by Attorney General Loretta E. Lynch Regarding the Army’s Decision on the Dakota Access PipelineRead the Press Release
Attorney General Loretta E. Lynch today released the following statement regarding the decision by the Department of the Army in the Dakota Access Pipeline matter:
“In light of today's decision by the Department of the Army regarding the Dakota Access Pipeline, the Department of Justice will continue to monitor the situation in North Dakota in the days ahead and we stand ready to provide resources to help all those who can play a constructive role in easing tensions.
“The department remains committed to supporting local law enforcement, defending protestors’ constitutional right to free speech and fostering thoughtful dialogue on the matter. We recognize the strong feelings that exist in connection with this issue, but it is imperative that all parties express their views peacefully and join us in support of a deliberate and reasonable process for de-escalation and healing.
“The safety of everyone in the area – law enforcement officers, residents and protesters alike – continues to be our foremost concern.”
3 December 2016
Peila Sentenced to 144 Months in Federal Prison for Conspiracy to Distribute Oxycodone, Money LaunderingRead the Press Release
SALT LAKE CITY – Aaron Peila, age 33, of Utah and Nevada, will serve 144 months in federal prison after pleading guilty to a conspiracy to distribute oxycodone and conspiracy to commit money laundering. U.S. District Judge David Nuffer imposed the sentence Wednesday afternoon in federal court.
For five years, from approximately 2007 through 2012, Peila engaged with other co-conspirators in a large-scale effort to distribute oxycodone in Utah and surrounding areas, federal prosecutors wrote in a sentencing memorandum filed with the court. Through a significant investigation, agents believe Peila and his co-conspirators distributed approximately 89,000 oxycodone 80 mg tablets and 22,000 oxycodone 30 mg tablets. They also engaged in laundering about $3.8 million in drug proceeds. As a part of his plea agreement with federal prosecutors, Peila admitted traveling from Utah to Las Vegas to pick up the oxycodone pills for distribution in Utah.
“Peila clearly engaged in distributor activity throughout the Salt Lake Valley and elsewhere. He engaged persons inside and outside the state to receive large amounts of oxycodone pills and shipped/transferred money in exchange for those pills. While Peila should not be held responsible for the oxycodone epidemic at large, he should be held responsible for his substantial piece of it,” prosecutors wrote in the sentencing memorandum.
Several co-conspirators involved in the case have pleaded guilty and are serving sentences ranging from 72 months to probation. Sentencing is pending for three individuals.
“The far-reaching impact generated by this law enforcement operation was made possible through the joint investigative partnership between DEA and IRS-Criminal Investigation. This criminal organization was at the very forefront of the local opioid epidemic and its profit-driven enterprise serves as a relevant and timely example of the scope of the problem that is killing Utah’s citizen at an alarming rate of 24 per month,” DEA Assistant Special Agent in Charge Brian Besser said today.
“Today’s sentencing is a direct result of the hard work done by the DEA Metro Narcotics Task Force here in Salt Lake City. IRS-Criminal Investigation is proud to be a part of this team and is committed to assisting our law enforcement partners in battling narcotics traffickers here in Utah and across America. We will continue to use our unique expertise in financial investigations and following the money trail,” IRS-Criminal Investigation Special Agent in Charge Tara Sullivan said today.
2 December 2016
Woman Arrested for Injecting Adultered Liquid SiliconeRead the Press Release
San Juan, Puerto Rico– Today, U.S. Magistrate Judge Silvia Carreño-Coll authorized a complaint charging Rosa Betancourt-Farfán, with the injection of a device into a human body, after shipment in interstate commerce, having the device been adulterated or misbranded, all in violation of Title 21, United States Code, Sections 331 (k), 333(a)(1), and 351(f)(1)(B), announced U.S. Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. The Food and Drug Administration (FDA) is in charge of the investigation.
According to the information gathered during the investigation, liquid silicone is sometimes injected into the body to “augment” tissues, such as the buttocks or breasts. When intended for tissue augmentation, liquid silicone is a “device” under the FDCA, and is subject to FDA approval before it can legally be distributed and used for such use in the United States. FDA has not approved any liquid silicone products for injection to augment tissues anywhere in the body. In addition, the injection of liquid silicone into the body for tissue augmentation can result in serious adverse health consequences, including hardening of tissue at the injection site, embolization, and even death.
On or about May 23, 2016, Puerto Rico Board of Health, Legal Division, contacted the FDA, San Juan Resident Office, to advise of a complainant who received medical procedures from a female individual who claimed to be a nurse. It was further indicated that the complainant received treatment to enlarge his/her buttocks and that the female individual was identified as “Rosa from Venezuela” (later identified as Rosa Betancourt-Farfán).
The complainant was interviewed by FDA agents and indicated that she/he had been injected on both glutes one (1) vial by Betancourt-Farfán, for which he/she paid twelve hundred dollars ($1,200.00) in cash, but was having health problems during the summer of 2013. These problems consisted first with trouble breathing and back pain. His/her health condition worsened on or about 2015, when he/she was hospitalized with tendonitis and back spasms.
A second victim indicated that he/she received treatment for butt augmentation with Betancourt-Farfán who had injected him/her with stem cells. According to the second victim, the first time he/she received the cosmetic treatment by the defendants, there were more than ten (10) individuals at a residence in Bayamón waiting to receive treatment. This second victim is presenting serious health issues and is receiving medical treatment with a doctor outside of Puerto Rico.
“If you or a person you know have been treated by the defendant, please call the Junta de Licenciamiento y Disciplina Médica y Oficina de Reglamentación y Certificación de los Profesionales de la Salud al 787-765-2929, ext. 6589. Your life is in danger if you have received any of these adulterated treatments,” stated Rosa Emilia Rodríguez-Vélez, US Attorney for the District of Puerto Rico.
This case is being prosecuted by Assistant U.S. Attorney Myriam Fernández. The case was investigated by the FDA.
A criminal complaint is an accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until proven guilty.