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21 November 2016
Howard County Youth Gymnastics Coach Pleads Guilty in Federal Court to Distribution of Child PornographyRead the Press Release
Baltimore, Maryland – Howard County youth gymnastics coach Paul Daniel Bollinger, age 57, of Windsor Mill, Maryland pleaded guilty today to distribution of child pornography. Bollinger worked as a youth gymnastics coach in Maryland for over 30 years prior to his arrest in this case.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Baltimore County State’s Attorney Scott Shellenberger
According to his plea agreement, on May 15, 2016, Bollinger distributed computer files containing videos of child pornography using a file sharing program. An undercover Baltimore County Police detective downloaded at least 10 movie files containing child pornography that Bollinger distributed.
On May 25, 2016, investigators executed a state search warrant at Bollinger’s residence. During the search, investigators found a desktop computer powered on and running peer-to-peer file sharing software, and numerous files with titles indicative of child pornography were being shared and downloaded through use of the software. The wallpaper image on the computer monitor depicted a naked female child lying on her stomach. Law enforcement seized the desktop computer, hard drives and other digital media which contained over 40,000 image files and over 100 video files of child pornography. Next to Bollinger’s bed, detectives found over 100 pages of handwritten stories about an adult male having sex with young children.
According to his plea agreement, Bollinger was present during the execution of the search warrant and spoke with law enforcement. He characterized his involvement with child pornography as an obsession and stated that he had been viewing child pornography since approximately 1990. Bollinger advised that he prefers female children aged 8 to 12 years, the same age group of girls that he currently coached, but denied any inappropriate contact with children. Bollinger stated that he had sexual thoughts about a girl he coached in gymnastics and that he was attracted to the “body type” of many of the girls he coached.
Bollinger faces a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison for distributing child pornography. U.S. District Judge Marvin J. Garbis has scheduled sentencing for Bollinger on March 3, 2017, at 10:00 a.m. Bollinger remains detained.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, HSI Baltimore, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Matthew J. Maddox, who is prosecuting the federal case.
Holland Resident Receives Two-Year Federal Prison Sentence for Stealing Mail and Cashing Forged ChecksRead the Press Release
Zachary Stephen Thomas Regularly Stole Mail from Residents of West Michigan Between December 2015 and May 2016
GRAND RAPIDS, MICHIGAN — Zachary Stephen Thomas, age 33, from Holland, Michigan, was sentenced today in the United States District Court for the Western District of Michigan, to a mandatory two-year federal prison sentence for his commission of aggravated identity theft. As part of the sentence, Thomas was ordered to pay over $18,000.00 in restitution to several financial institutions and will serve a one-year term of supervised release after his prison term.
"The integrity of the United States’ mail and the security of the personal and financial information of the residents of this district are of utmost importance to this office," said U.S. Attorney Patrick Miles. "The mandatory two-year prison sentence handed down today by U.S. District Judge Paul L. Maloney sends a message that those who seek to take advantage of others by stealing mail and accessing their finances through illegal means will face significant consequences."
Beginning in December 2015, and continuing until May 2016, Defendant stole mail from the mailboxes of hundreds of residents in Holland and surrounding lakeshore communities. Defendant regularly stole bank replacement checks or credit card convenience checks mailed by financial institutions to the residents’ homes. He made the checks payable to himself or to others cooperating with him and he forged the signatures of the true account holders. He then opened bank accounts in his name using the internet and deposited the forged checks into these accounts. He immediately withdrew from the bank’s automated teller machine the maximum amount of cash allowed and waited for the balance of the funds associated with the checks to clear the bank. Once the checks cleared the bank, he typically withdrew the remaining amounts at a casino to avoid being seen at the bank. Over the period of approximately six months, Defendant caused losses totaling over $18,000.00 to several financial institutions.
The investigation of the case was handled by the United States Postal Inspection Service in Grand Rapids and the Ottawa County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Ronald M. Stella.
END
Hartford Man Admits Distributing Heroin and FentanylRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that JOSEMANUEL RIOS, also known as “Jay,” 40, of Hartford, pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on February 25, 2016, a male and female overdosed at a motel in Enfield. The overdoses were not fatal. In the motel room, investigators found five wax folds that contained fentanyl. RIOS was identified as the source of the drugs ingested by the victims. On February 26, 2016, a search of an East Hartford motel room that RIOS was renting revealed approximately 200 bags of fentanyl stamped with the same image found on the bags in the Enfield motel room, and 13 bags of heroin stamped with a different image.
Judge Meyer scheduled sentencing for February 14, 2017, at which time RIOS faces a maximum term of imprisonment of 20 years.
RIOS has been detained since his arrest on February 26, 2016.
This matter has been investigated by the DEA’s New Haven Tactical Diversion Squad and the Enfield Police Department. This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Harrison County man pleads guilty to heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Steven A. Helms, II, 35, of Clarksburg, West Virginia pled guilty to a heroin distribution charge, United States Attorney William J. Ihlenfeld, II, announced.
Helms pled guilty to one count of “Conspiracy to Possess With the Intent to Deliver Heroin.” He faces up to twenty years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Grand Island Man Sentenced to Prison for Drug TraffickingRead the Press Release
United States Attorney Deborah R. Gilg announced that on November 18, 2016, the Honorable John M. Gerrard, U.S. District Court Judge, sentenced Aaron C. Kreifels to 30 months imprisonment, to be followed by 3 years of supervised release, and he was ordered to pay a total of $300 in special assessments, following his convictions for possession with intent to distribute marijuana, possession with intent to distribute psilocybin mushrooms, and felon in possession of a firearm. Defendant also agreed to forfeit $18,880 in United States currency as proceeds of drug trafficking.
On July 8, 2015 a search warrant was executed on Kreifels’ home. The resulting search uncovered distribution quantities of marijuana and psilocybin mushrooms, a 9 mm handgun, and $18,880 in United States currency.
Kreifels was arrested in Grand Island, Nebraska on July 9, 2015, and brought to Lincoln, Nebraska for prosecution. Kreifels pled guilty on August 25, 2016.
The FBI and the Central Nebraska Drug and Safe Streets Task Force were responsible for the investigation of this case.
Four Conspirators Convicted for Defrauding Victims of Millions of DollarsRead the Press Release
Greenbelt, Maryland – A federal jury convicted the following defendants late on November 18, 2016, for conspiracies to commit wire fraud and money laundering arising from a scheme to defraud vulnerable victims of millions of dollars:
Gbenga Benson Ogundele, a/k/a “Benson Ogundele,” age 58, of Laurel, Maryland; Victor Oyewumi Oloyede, age 42, of Laurel; Babtunde Emmanuel Popoola, a/k/a “Emmanuel Popoola” and “Tunde Popoola, age 34, of Bowie, Maryland; and his sister, Mojisola Tinuola Popoola, a/k/a “Mojisola Oluwakemi Tin Popoola” and “Moji T. Popoola,” age 42, of Laurel.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation.
According to evidence presented at the 17-day trial, from January 2011 to May 18, 2015, members of the conspiracy searched online dating websites to initiate romantic relationships with vulnerable male and female individuals. They phoned, emailed, texted and used internet chat messenger services to form romantic relationships with the victims, who lived in Maryland and around the country.
Witnesses testified that members of the conspiracy used false stories and promises to convince the victims to provide money to the conspirators, including fake hospital bills, plane trips to visit the victims, problems with overseas businesses and foreign taxes. Ogundele, Oloyede, the Popoolas and other conspirators opened bank accounts, called “drop accounts,” in order to receive millions of dollars from the victims. Testimony at trial showed that victims provided money to the defendants as a result of the false stories and promises, either depositing money directly into drop accounts controlled by the defendants, or by checks sent to the conspirators. The payments from victims ranged from $1,720 to $50,000.
Ogundele, Oloyede, the Popoolas, and their co-conspirators dispersed money received from the victims by transferring funds to other accounts controlled by the conspirators, by obtaining cashier’s checks, and by writing checks to individuals or entities, in order to conceal the nature, source, and control of those assets.
The defendants face a maximum sentence of 20 years in prison for conspiring to commit wire fraud, and for conspiring to commit money laundering. Additionally, all of the defendants except for Mojisola Popoola face a mandatory minimum sentence of two years in prison to be served consecutive to any other sentence for aggravated identity theft, arising from the use of a victim’s name, bank account number or driver’s license in furtherance of the fraud scheme. U.S. District Judge Paul W. Grimm has scheduled sentencing for Oloyede on January 25, 2017; for the Popoolas on February 22, 2017; and for Ogundele on February 23, 2017.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from 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 for its work in the investigation and thanked Assistant U.S. Attorneys Thomas P. Windom and Leah Jo Bressack, who are prosecuting the case.
Former Opa Locka City Manager Sentenced to 38 months in Prison for Participating in Corruption ConspiracyRead the Press Release
The former Opa Locka City Manager was sentenced to over three years in federal prison for accepting bribes in furtherance of an illegal municipal corruption scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
David Chiverton previously pled guilty to participating in a conspiracy against the laws of the United States, that is, Federal programs bribery and extortion under color of official right, in connection with his official duties as Opa Locka’s Assistant City Manager, and subsequently as City Manager, in violation of Title 18, United States Code, Section 371. U.S. District Court Judge Cecilia M. Altonaga sentenced Chiverton to 38 months’ imprisonment, to be followed by 3 years of supervised release to include 8 months of home detention. Chiverton was also ordered to forfeit $7,600 to the United States.
According to the court record and statements made in open court, between March 2014 and March 2016, Chiverton agreed with an unnamed Opa Locka elected official (“Public Official A”), former Opa Locka Assistant Public Works Director Gregory Harris, and others, to use their official positions and authority with the City of Opa Locka to solicit, demand, and obtain thousands of dollars in illegal cash payments from businesses and individuals in exchange for taking official actions to assist and benefit those businesses and individuals in their dealings with the City of Opa Locka.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force. This case was prosecuted by Senior Litigation Counsel Edward Stamm and Assistant United States Attorney Kimberly Selmore.
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.
Former NFL Player and Former Bank Executive Plead Guilty to Ponzi Scheme and Money LaunderingRead the Press Release
BOSTON – A former bank vice president pleaded guilty today in U.S. District Court in Boston in connection with an investment scheme involving fraudulent loans to professional athletes. Her co-defendant, a former New England Patriots player, pleaded guilty to similar charges last week.
Susan Daub, 56, of Coral Spring, Fla., pleaded guilty to two counts of wire fraud, one count of conspiracy and one count of money laundering. U.S. District Court Judge William G. Young scheduled Daub’s sentencing for Feb. 13, 2017. Will D. Allen, 38, of Davie, Fla., pleaded guilty on Monday, Nov. 14, 2016, to two counts of wire fraud, one count of conspiracy and one count of money laundering. He is scheduled to be sentenced on Feb. 9, 2017.
In June 2015, Allen and Daub were arrested on criminal charges after being sued by the Securities and Exchange Commission in April 2015. Between 2012 and April 2015, Allen and Daub defrauded investors out of millions of dollars by claiming that the funds would be used to back high-interest, short-term loans to professional athletes through Capital Financial Partners (CFP), Allen and Daub’s Massachusetts-based company. While CFP did make some loans to athletes, Allen and Daub also diverted millions of investor dollars to themselves and other business ventures. In total, Allen and Daub took in over $35 million in investments. To date, they have repaid less than $22 million.
As part of the fraud, Allen and Daub collected money from investors to fund fictitious loans, then used the money, in part, to pay themselves. Other times, Allen and Daub told some investors that the loans CFP made to professional athletes were larger than they actually were, allowing Allen and Daub to collect more money from investors than they were lending out to athletes. To keep investors from discovering their fraud, Allen and Daub used newly invested money to make payments to existing investors, which they falsely characterized as interest and principal payments from athlete borrowers.
The charges of wire fraud and conspiracy each provides a sentence of no greater than 20 years in prison, three years of supervised release, a fine of up to $250,000 (or twice the gross gain or loss), and restitution. The charge of money laundering provides a sentence of no greater than 10 years in prison, three years of supervised release, a fine of up to $250,000 (or twice the gross gain or loss), and restitution. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The U.S. Attorney’s Office received valuable assistance from the Securities and Exchange Commission, which previously charged Allen and Daub in a civil complaint. Assistant U.S. Attorneys Seth B. Kosto and Brian A. Pérez-Daple of Ortiz’s Economic Crimes Unit are prosecuting the case.
Euclid man sentenced to 10 years in prison for 900 pills of fentanylRead the Press Release
A Euclid man was sentenced to 10 years in prison for having more than 900 pills of fentanyl, crack cocaine and a firearm, said Acting U.S. Attorney Carole Rendon.
Ryan Gaston, 30, was previously found guilty to possession with intent to distribute fentanyl, possession with intent to distribute crack cocaine, and possession of a firearm in furtherance of drug trafficking.
Gaston was arrested on Feb. 3 in Cleveland Heights. A search of his car, and subsequent search of his apartment, revealed rocks of crack cocaine, a 9 mm High Point rifle and approximately 925 round blue pills believed to be Oxycodone 30 mg pills.
A test revealed the pills were not Oxycodone, but instead fentanyl, according to court documents.
Fentanyl is a very potent synthetic opiate used to treat pain and as a surgical anesthetic. While heroin is approximately three times as potent as morphine, fentanyl is approximately 80-100 times more powerful than morphine, according to court documents.
“Each one of these pills is an overdose waiting to happen,” said Acting U.S. Attorney Carole Rendon. “This sentence demonstrates the seriousness of dealing these drugs. We will continue to attack the opioid problem from all sides – prevention, education, treatment and enforcement.”
This case is being prosecuted by Assistant U.S. Attorney Michelle Baeppler following an investigation by the Drug Enforcement Administration, the Cleveland Heights Police Department, the Cuyahoga County Sheriff’s Office and the Euclid Police Department.
Eastern Idaho Partnership Announces Special AUSA Program StatisticsRead the Press Release
POCATELLO – United States Attorney Wendy J. Olson and Bingham County Prosecuting Attorney Cleve B. Colson announced today that from January 2016 through October 31, 2016, the U.S. Attorney’s Office prosecuted an additional 38 offenders for gun and drug-related crimes committed in eastern Idaho through the new Special Assistant United States Attorney program (SAUSA program) in eastern Idaho.
“Prosecution of these 38 offenders was made possible through the collaborative vision of the Eastern Idaho Partnership, the State of Idaho, the Bingham County Prosecuting Attorney’s Office and this office,” said Olson. “We are working cooperatively to make our eastern Idaho communities safer and stronger. The success of this program demonstrates that we can do more when we do it together. We are maximizing public safety and efficiently using taxpayer resources. The first ten months of this program have been a clear success.”
The eastern Idaho SAUSA program is sponsored by the Eastern Idaho Partnership (EIP), a coalition of local city and county officials in eastern Idaho. The EIP provides approximately 30 percent of the SAUSA’s salary and benefits; the State of Idaho through the Idaho Department of Correction contributes the remaining 70 percent.
James R. Dalton, the current eastern Idaho SAUSA, was hired in January 2016. He is a Bingham County deputy prosecutor who works in the U.S. Attorney’s Office in Pocatello full-time and focuses on internet based crimes against children, gun and gang violence, drug trafficking, fraud and other white collar crime, terrorism, identity theft, and immigration offenses affecting eastern Idaho. The U.S. Attorney’s Office lends its prosecution authority to the SAUSA and provides office and related overhead expenses, as well as training and mentoring. After the defendants are convicted in federal court, they are sentenced to federal prisons throughout the country, far from their criminal associates. Thus far, three of the 38 charged have been sentenced to a total of 355 months in federal prison and many more will be sentenced in the coming months.
Special AUSA Dalton works with a wide variety of state, county and city law enforcement agencies in eastern Idaho. Through the eastern SAUSA program, these agencies have developed a model of cooperative law enforcement, where federal, state, county and city law enforcement agencies work side-by-side investigating specific crimes in eastern Idaho. The regional approach allows officers, prosecutors and federal, state, county, and city officials to focus limited resources and leverage federal sentencing to disrupt area criminal activity that often spans multiple counties in eastern Idaho. One of the goals of the program is to disrupt local criminal networks by sending offenders to federal prison, out-of-state, and reduce local criminal activity.
Bingham County Prosecutor Cleve Colson also touted the program as, “an effective partnership between law enforcement agencies and the community to stop the flow of illegal drugs, reduce the number of guns in the hands of criminals, and eradicate the criminal gang activity that can be so destructive in our communities.”
Blackfoot Police Department Chief of Police Kurt Asmus expressed, “The partnership between local agencies and the USAO has been very beneficial. Not only does this remove the offender from this area, but there are cost savings for local and state budgets.”
Brandon Wilkinson, American Falls Police Chief, stated, “The partnership has assisted our community in providing federal resources that we have never had in a specific case for a crime against a local child. This new partnership has become very valuable in providing safety to our community.”
American Falls Mayor Marc Beitia added, “The partnership and SAUSA are collectively making our community safer for all of us, especially our children.”
The EIP sponsored Special Assistant U.S. Attorney in eastern Idaho marks the first expansion of the regional SAUSA program in Idaho. The regional SAUSA program was started in 2007 by the U.S. Attorney’s Office, and by state and local leaders to address increasing gang activity and violence in southwest Idaho. The U.S. Attorney’s Office, together with the Treasure Valley Partnership, the State of Idaho, and later, the Canyon County Prosecutor’s Office, came together to fund and support the creation of a deputy prosecuting attorney position, whose sole focus would be to investigate and prosecute gang-related offenses in federal court. The expansion of the regional SAUSA program in Idaho is reflective of the positive changes that take place throughout our communities when local, state and federal agencies are able to work together.
Downtown Newark Heroin and Oxycodone Dealer Sentenced to 40 Months in Prison for Drug Distribution ConspiracyRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 40 months in prison for distributing large quantities of heroin in and around downtown Newark, U.S. Attorney Paul J. Fishman announced today.
Jarez Baron a/k/a “Little Bro,” 28, of Newark, pleaded guilty before U.S. District Judge Jose L. Linares to a superseding information charging him with conspiracy to distribute 100 grams or more of heroin. Judge Linares imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Between February 2013 and Aug. 7, 2013, Baron conspired with others to distribute large quantities of heroin and oxycodone out of a downtown Newark clothing store called Ballas Boutique. Baron and others sold drugs out of this location to a confidential source more than 35 times. The majority of the sales were audio and video recorded.
Law enforcement intercepted conversations of Baron and his conspirators pursuant to court orders. The intercepted conversations revealed that Baron and other employees sold drugs for Lamont Vaughn, 33, of Newark, at Ballas Boutique.
On Aug. 7, 2013, law enforcement officers executed arrest and search warrants at Ballas Boutique and at Vaughn and Baron’s home in Newark. Among the items recovered were dozens of oxycodone pills, two firearms, and a large amount of cash.
In addition to the prison term, Judge Linares sentenced Baron to three years of supervised release.
Vaughn pleaded guilty on June 22, 2016, to conspiracy to distribute 100 grams or more of heroin and oxycodone and to being a felon in possession of two firearms. He was sentenced Oct. 5, 2016, to 65 months in prison.
Another co-defendant, Felicia Holt, 30, of Newark, pleaded guilty on March 11, 2014, to an information charging her with one count of conspiracy to distribute heroin and was sentenced Nov. 17, 2016, to 45 months in prison.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, as well as the N.J. State Police Street Gangs North Unit with the investigation leading to today’s sentencing.
The government is represented by Special Litigation Counsel Margaret Ann Mahoney and Assistant U.S. Attorney Francisco J. Navarro of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel:
Baron: Frank P. Arleo Esq., West Orange, New Jersey
Vaughn: pro se
Holt: Joseph Rubino Esq., Union, New Jersey
Departamento de Justicia Resuelve Reclamación por Discriminación Relacionada con Inmigración en Contra del Departamento del Sheriff de DenverRead the Press Release
WASHINGTON – El Departamento de Justicia llegó hoy a un acuerdo para resolver una reclamación alegando que el Departamento del Sheriff de Denver discriminaba en contra de los inmigrantes con autorización para trabajar, en contravención de la Ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés). El Departamento del Sheriff de Denver es el departamento de sheriff más grande del Estado de Colorado.
La investigación que llevó a cabo el Departamento de Justicia encontró que desde aproximadamente el 1 de enero de 2015 hasta aproximadamente el 23 de marzo de 2016, el Departamento del Sheriff de Denver discriminaba por causa del estatus de ciudadanía al exigir que los postulantes a puestos de sheriff adjunto fueran ciudadanos de EE.UU. y al publicar anuncios de trabajo que reflejaban requisitos de ciudadanía de EE.UU., en contravención de la INA. La disposición antidiscriminatoria de la INA prohíbe a los empleadores restringir sus puestos de trabajo a los ciudadanos de EE.UU. a menos que sea un requisito establecido por ley, reglamento, decreto ejecutivo o contrato gubernamental. El Departamento del Sheriff de Denver no estaba sujeto a ningunas de las excepciones bajo la INA.
Bajo los términos del acuerdo de resolución, el Departamento del Sheriff de Denver pagará $10,000 en sanciones civiles; identificará a los postulantes a puestos de trabajo que pudieron haber sido inhabilitados de consideración para conseguir puestos de trabajo en calidad de sheriff adjunto debido al requisito de ciudadanía y considerará las calificaciones de estos postulantes sin importar su ciudadanía; capacitará a su personal de recursos humanos sobre la disposición antidiscriminatoria de la INA; y estudiará y revisará sus políticas y procedimientos para cumplir con los requisitos de la disposición antidiscriminatoria de la INA
“Agradecemos al Departamento del Sheriff de Denver por su colaboración y compromiso para levantar las barreras innecesarias e ilícitas al empleo,” dijo la Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta, encargada de la División de Derechos Civiles del Departamento de Justicia. “La eliminación de este requisito ilícito de ciudadanía ayudará a asegurar que el Departamento del Sheriff de Denver contrate a las personas más idóneas y aptas para proteger y servir. La comunidad entera beneficiará de estas reformas.”
La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración (OSC, por sus siglas en inglés) es responsable de hacer cumplir la disposición antidiscriminatoria de INA. Entre otras cosas, la ley prohíbe la discriminación por motivos de ciudadanía, estatus migratorio y origen nacional en la contratación, despido o reclutamiento o en la recomendación de empleo por comisión; prácticas documentales injustas en la verificación de la elegibilidad para trabajar; las represalias y la intimidación.
Para mayor información sobre las protecciones contra la discriminación en el empleo conforme a las leyes de inmigración, llame a la línea directa de la OSC para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para las personas con dificultades auditivas); llame a la línea directa de la OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para las personas con dificultades auditivas); inscríbase en un seminario gratis en línea al www.justice.gov/crt/about/osc/webinars.php; envíe un correo electrónico al [email protected] o visite el sitio web de la OSC en www.justice.gov/crt/about/osc.
Los postulantes o empleados que crean que les han obligado a cumplir con requisitos documentales diferentes por causa de su ciudadanía, estatus migratorio u origen nacional; o que hayan sufrido discriminación por motivos de su ciudadanía, estatus migratorio u origen nacional en la contratación, despido o reclutamiento o en la recomendación de empleo por comisión; deben comunicarse con la línea directa para trabajadores de OSC para solicitar ayuda.
Danny Heinrich Sentenced to 20 Years in PrisonRead the Press Release
DANNY JAMES HEINRICH, 53, was sentenced today to 20 years in prison after pleading guilty in September to federal child pornography charges. As part of his plea allocution, HEINRICH admitted in court that on October 22, 1989, he abducted, sexually assaulted and murdered 11-year-old Jacob Wetterling. HEINRICH also admitted that, in January 1989, he abducted and sexually assaulted 12-year-old J.S.
The announcement was made today by United States Attorney Andrew M. Luger, FBI Special Agent in Charge for the Minneapolis Division Richard T. Thornton, Stearns County Attorney Janelle P. Kendall, Stearns County Sheriff John Sanner and Minnesota Bureau of Criminal Apprehension (BCA) Superintendent Drew Evans.
“Today’s sentencing marks the close of a sad chapter in Minnesota history,” said U.S. Attorney Luger. “Danny Heinrich hurt countless lives, none more tragic than Jacob Wetterling. I encourage all Minnesotans to draw on the example of Patty and Jerry Wetterling, who transformed their grief into hope. Patty and Jerry have dedicated their lives to helping other parents bring their kids home. We can all help. The National Center for Missing and Exploited Children received more than 4 million online tips last year of suspected child sexual exploitation. No concern is too small, no observation too unimportant to call 1-800-THE-LOST or go online to www.missingkids.com. Every child matters. Every second counts.”
“The FBI, along with our law enforcement partners, never wavered in the effort to solve this heinous crime,” said Special Agent in Charge of the FBI Minneapolis Division Richard T. Thornton. “Although solving this crime took decades, justice has been delivered to both the Wetterling family and to the citizens of Minnesota. This sentencing should serve as a reminder to those who perpetrate crimes against children: Law enforcement will never give up in its hunt to find you and bring you to justice no matter how long it may take.”
“The victims today spoke eloquently of the real effect of these crimes, for not only themselves but also on behalf of other victims both present and represented in the videos and in the vast amount of child pornography Heinrich possessed,” said Stearns County Attorney Janelle Kendall. “Their accounts of the pain compounded by Heinrich's years of silence during their pleas for answers was heart rending. I must agree with the US Attorney that Heinrich's regret only caused him to act when he'd been cornered. That said, I was also struck by the resilience, strength, and insight of these victims brought together by evil, but now joined by Jacob's Hope. It has been an honor and privilege to know them through this experience. Thanks again to our federal and state partners for getting us all to today.”
According to HEINRICH’s guilty plea, on October 22, 1989, he abducted, sexually assaulted, and murdered Jacob Wetterling.
According to HEINRICH’s guilty plea, on January 13, 1989, he abducted and sexually assaulted J.S., a 12-year-old boy.
According to HEINRICH’s guilty plea, he possessed between 10 and 150 child pornography images, including images of prepubescent minors under the age of 12. The pornographic material portrays sadistic or masochistic conduct, and images of morphed child pornography.
This case is the result of an investigation conducted by the FBI, Minnesota Bureau of Criminal Apprehension and the Stearns County Sheriff’s Office.
This case was prosecuted by Assistant United States Attorneys Steven L. Schleicher and Julie Allyn of the U.S. Attorney’s Office’s Special Prosecutions Unit. Assistance was provided by the Stearns County Attorney’s Office and the Department of Justice Child Exploitation and Obscenity Section.
Defendant Information:
DANNY JAMES HEINRICH, 53
Annandale, Minn.
Convicted:
- Receipt of child pornography, 1 count
Sentenced:
- 20 years in prison
- Supervised release for a term of life
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Consultant to Iranian Mission to the United Nations Pleads Guilty to Filing False Income Tax Return and Conspiring to Violate Sanctions LawsRead the Press Release
Ahmad Sheikhzadeh, 60, a U.S. citizen and resident of New York City, New York, pleaded guilty to filing a false income tax return that substantially understated the amount of cash salary the defendant received from Iran’s Permanent Mission to the United Nations (IMUN) and conspiring to facilitate the transfer of funds to Iran without the required license from the Treasury Department in violation of the International Emergency Economic Powers Act (IEEPA).
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Robert L. Capers for the Eastern District of New York, Assistant Director in Charge William F. Sweeney, Jr. for the FBI’s New York Field Office and Special Agent in Charge Shantelle Kitchen for the IRS Criminal Investigation Division in New York. The plea proceeding took place before U.S. District Judge Pamela K. Chen in federal court in Brooklyn.
According to court filings and facts presented during the plea proceeding, beginning in January 2008, Sheikhzadeh was employed as a consultant to the IMUN and received a regular salary, in cash, approximately once per month, through an intermediary who was an official at the IMUN. Sheikhzadeh was not a declared IMUN official. From 2008 through 2012, Sheikhzadeh filed personal income tax returns that substantially understated the amount of income he received from his work for the IMUN. In addition, distinct from his work for the IMUN, Sheikhzadeh provided money remitting (“hawala”) services to co-conspirators in the U.S. to facilitate investments in Iran and to direct disbursements from Iranian bank accounts. Sheikhzadeh engaged in these money transfers without a license from the Treasury Department’s Office of Foreign Assets Control in violation of IEEPA.
Sheikhzadeh will be sentenced on March 30, 2017. When sentenced, the defendant faces up to 23 years in prison. The defendant has agreed to pay over $147,000 in restitution and forfeiture. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case is being prosecuted by Assistant U.S. Attorneys Tali Farhadian and Peter Baldwin from the Office’s Public Integrity and National Security and Cybercrime Sections, and Brian Morris from the Asset Forfeiture Section. Assistance was also provided by Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section.
Consultant to Iranian Mission to the United Nations Pleads Guilty to Filing False Income Tax Return and Conspiring to Violate Sanctions LawsRead the Press Release
BROOKLYN, NY – Earlier today in federal court in Brooklyn, Ahmad Sheikhzadeh, a United States citizen and resident of New York City, pled guilty to filing a false income tax return that substantially understated the amount of cash salary he received from Iran’s Permanent Mission to the United Nations (IMUN) and conspiring to facilitate the transfer of funds to Iran without the required license from the Treasury Department in violation of the International Emergency Economic Powers Act (IEEPA). Today’s plea proceeding took place before United States District Judge Pamela K. Chen.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Acting Assistant Attorney General for National Security Mary B. McCord, William F. Sweeney, Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (FBI), and Shantelle Kitchen, Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
According to court filings and facts presented during the plea proceeding, beginning in January 2008, Sheikhzadeh was employed as a consultant to the IMUN and received a regular salary, in cash, approximately once per month through an intermediary who was an official at the IMUN. Sheikhzadeh was not a declared IMUN official. From 2008 through 2012, Sheikhzadeh filed personal income tax returns that substantially understated the amount of income he received from his work for the IMUN. In addition, distinct from his work for the IMUN, Sheikhzadeh provided money remitting (“hawala”) services to co-conspirators in the United States to facilitate investments in Iran and to direct disbursements from Iranian bank accounts. Sheikhzadeh engaged in these money transfers without a license from the Treasury Department’s Office of Foreign Assets Control (OFAC) in violation of IEEPA.
When sentenced, Sheikhzadeh faces up to 23 years in prison. He has agreed to pay over $147,000 in restitution and forfeiture.
The government’s case is being prosecuted by Assistant United States Attorneys Tali Farhadian and Peter Baldwin from the Office’s Public Integrity and National Security and Cybercrime Sections, and Brian Morris from the Asset Forfeiture Section. Assistance was also provided by Trial Attorney David Recker of the Justice Department’s Counterintelligence and Export Control Section.
The Defendant:
AHMAD SHEIKHZADEH
Age: 60
New York, New YorkE.D.N.Y. Docket No. 15-182 (PKC)
Colorado Man Pleads Guilty to Transporting Child PornographyRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Anthony Derrico, 36, of Grand Junction, Colorado, pled guilty today in U.S. District Court to transporting child pornography. He was indicted on June 22, 2016.
According to court records, in May 2016, a federal agent in Maine investigating the online exchange of child pornography saw that an individual, later identified as the defendant, posted child pornography images to an online chat group. In a later private chat session with the agent, Derrico expressed an interest in child pornography, and sent the agent three child pornography images. The agent learned that Derrico, who was a truck driver, was driving from Idaho to Texas. Derrico was found in Laredo, Texas and arrested in his truck. Memory cards seized at the time of his arrest contained numerous child pornography images.
Derrico faces between five and 20 years in prison, between five years and life on supervised release and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Career Criminal Sentenced for Possession of a FirearmRead the Press Release
NORFOLK, Va. – Norman Baynard, Jr., 54, of Norfolk, was sentenced today to 235 months in prison for being a convicted felon in possession of a firearm.
Baynard pleaded guilty on May 11. According to court documents, Norfolk Police conducted a series of undercover purchases of heroin from Baynard. On the last scheduled controlled purchase, officers attempted to arrest Baynard and it resulted in a high speed chase. During the chase Baynard drove through a number of red-lights and almost hit a small child. After throwing a loaded handgun and drugs out of the car window, Baynard eventually pulled over and was arrested. Baynard’s criminal record consists of 43 convictions for various crimes, including drug dealing, voluntary manslaughter, arson, assaults and various firearm convictions.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Davis. Assistant U.S. Attorney Bill Muhr prosecuted the case.
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. 2:15-cr-136.
Broward County Resident Sentenced to Three Years in Prison for Stolen Identity Tax Fraud SchemeRead the Press Release
A Broward County resident was sentenced to 36 months in prison, to be followed by three years of supervised release, for his participation in a stolen identity tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Clifford Blain, 28, was previously convicted of one count of uttering a forged United States Treasury check, in violation of Title 18, United States Code, Section 510(a)(2), one count of bank fraud, in violation of Title 18, United States Code, Section 1344, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to evidence presented at trial, Blain deposited a United States Treasury check containing a forged endorsement and signature of another individual into a bank account he controlled. An image of the defendant making the deposit was captured by ATM cameras and introduced during the trial proceedings.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case was prosecuted by Assistant U.S. Attorney Russell Killinger.
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.
Brooklyn Man Arrested for Attempting to Provide Material Support to ISILRead the Press Release
A criminal complaint was unsealed today in federal court in the Eastern District of New York charging Mohamed Rafik Naji with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization. Naji was arrested earlier today at his home in Brooklyn, New York, and his initial appearance is scheduled for this afternoon before U.S. Magistrate Judge Robert M. Levy at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by U.S. Attorney Robert L. Capers of the Eastern District of New York, Acting Assistant Attorney General for National Security Mary B. McCord, Assistant Director in Charge William F. Sweeney of the New York Field Office of the Federal Bureau of Investigation (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD).
As set forth in court documents, Naji is a 37-year-old legal permanent resident of the United States. Beginning in December 2014, through social media posts, Naji expressed his support of ISIL by, among other posts, sharing a video of an ISIL leader advocating violence against civilian targets. According to the complaint, in March 2015, Naji travelled from New York to Yemen in an effort to join ISIL’s ranks. While in Yemen, Naji persistently tried to travel to areas controlled by ISIL. In emails to an associate in the United States, Naji explained that he was on his fifth try to reach ISIL controlled territory. He also sent his associate media files with sounds of gunfire and claimed to have been almost killed by the “army.” Following these email exchanges, Naji instructed his associate to “erase all ur messages,” “even from your trash.”
While in Yemen, Naji engaged in online conversations with a confidential source. During those conversations, Naji instructed the confidential source that in order to join “dawlat islam” he should travel to Hadramout, an area in southern Yemen. In one of the online conversations with the confidential source Naji proclaimed his allegiance to ISIL stating, “I belong to Islamic state only,” according to the complaint.
Naji returned to the United States in September 2015. Since his return, he has continued to express his support for ISIL and violent jihad. Following the deadly attack in Nice, France in July 2016, Naji expressed support for a similar attack in Times Square.
“As alleged, the defendant was persistent in his efforts to join ISIL and support its terrorist objectives,” stated U.S. Attorney Capers. “We will continue to identify and prosecute individuals like Naji who seek to empower our nation’s enemies and endanger our citizens and partners around the world.” Mr. Capers extended his grateful appreciation to the FBI’s Joint Terrorism Task Force, which comprises a number of federal, state and local agencies from the region.
“As we alleged in our complaint today, Naji has shown continued support to ISIL, beginning in 2014 with social media posts and ultimately traveling to Yemen in March 2015 where he claimed his allegiance to ISIL stating, ‘I belong to Islamic state only.’ He continued to express support for ISIL and violent jihad upon his return in the US months later. Terrorism threats, like Naji, are only mitigated through the joint efforts of law enforcement to protect our communities,” said FBI Assistant Director in Charge Sweeney.
“As alleged, the defendant expressed a devotion to join ISIL through both conversation and social media, traveling to Yemen in an effort to join their ranks,” said Police Commissioner O’Neill. “Detectives and agents on the Joint Terrorism Task Force uncovered the alleged terrorist objectives of the defendant. I want to commend their work in continually protecting New York City, and our nation, from those who seek to harm us.”
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant U.S. Attorneys Melody Wells and Ian Richardson of the National Security & Cybercrime Section of the U.S Attorney’s Office, with assistance from Brian Morgan of the National Security Division’s Counterterrorism Section.
The Defendant:
MOHAMED RAFIK NAJI
Age: 37
Brooklyn, New YorkE.D.N.Y. Docket No. 16-M-1049
Assisted Living Chain “Emeritus” Settles Allegations of Overbilling Government ProgramsRead the Press Release
The United States Department of Justice and Emeritus Corporation, dba Emeritus Senior Living, today settled claims that Emeritus had failed to refund to the U.S. overpayments for Medicaid services, announced U.S. Attorney Annette L. Hayes. Under the terms of the settlement, Emeritus admits no wrongdoing, but makes payments to the U.S. and various states totaling $979,000. Emeritus was headquartered in Seattle and had senior living facilities throughout the United States. In 2014 Emeritus was purchased by Brookdale Senior Living, Inc., of Brentwood, Tennessee.
According to the settlement agreement, Emeritus will pay the federal government $587,400 for payments it should have refunded to the federal Medicaid program. An additional $391,600 will be divided between eighteen states where Emeritus had facilities. The dollar amounts are estimates of overpayments Emeritus failed to refund to state and federal programs between 2008 and 2014. The investigation began with an online hotline report from a former employee of Emeritus alleging that Emeritus systematically “wrote-off” credit balances as a result of limitations in the company’s accounting software.
The accounting software has been replaced with one that can better track overpayment.
The U.S. Health and Human Services Office of Inspector General (HHS-OIG) led the investigation. The settlement was negotiated by Assistant United States Attorney Kayla Stahman with the U.S. Attorney’s Office for the Western District of Washington. A National Association of Medicaid Fraud Control Units (NAMFCU) Team participated in the investigation and conducted the settlement negotiations with Emeritus on behalf of the states and included representatives from the Offices of the Attorneys General for the states of Washington, Oregon, Colorado, Texas and Florida.
Ally Financial Agrees to Pay $52 Million to Resolve Investigation into Improper Conduct Related to Issuance of Mortgage-Backed SecuritiesRead the Press Release
LOS ANGELES – Ally Financial Inc. has agreed to pay the United States $52 million to settle allegations that its subsidiaries acted improperly in relation to 10 subprime residential mortgage backed securities (RMBS) in 2006 and 2007.
A settlement agreementannounced today resolves an investigation into alleged violations of the Financial Institutions Reform Recovery and Enforcement Act (FIRREA), specifically conduct related to the packaging, securitization, marketing, sale and issuance of the RMBS.
Under the settlement agreement, Ally is required to pay a $52 million civil penalty and to immediately discontinue operations of its registered broker-dealer, Ally Securities, LLC, which served as the lead underwriter on the subprime RMBS at issue in this matter.
The subsidiary will be wound-down immediately and de-registered as a broker-dealer as acknowledgment of the improper conduct. The broker-dealer served as the lead underwriter on the 10 subprime RMBS offerings issued in the RASC-EMX series between 2006 and 2007. Ally Securities dedicated a specialized marketing effort to create the RASC-EMX brand, securing investors for the RMBS offerings, and directing third-party due diligence on samples of the mortgage loan pools underlying the RMBS to test whether the loans comply with disclosures made to investors in the public offering documents.
As the lead underwriter, Ally Securities recognized in 2006 and 2007 that there was a consistent trend of deterioration in the quality of the mortgage loan pools underlying the RASC-EMX Securities that stemmed, at least in part, from deficiencies in the subprime mortgage loan underwriting guidelines and diligence applied to the collateral prior to securitization. All the RASC-EMX Securities sustained losses as a result of underlying mortgage loans falling delinquent.
“These securities were marketed to investors with the knowledge that a significant percentage of the pooled subprime mortgages were toxic, meaning that they were underwritten to risky guidelines likely to result in the loans falling delinquent,” said United States Attorney Eileen M. Decker. “Nevertheless, Ally Securities continued to market the RMBS, and investors lost millions of dollars as the value of the securities plummeted. Today's settlement demonstrates that financial institutions are responsible, and therefore will be held accountable, for products they sell to the public."
FIRREA authorizes the federal government to impose civil penalties against financial institutions that violate various criminal offenses, including wire and mail fraud. The settlement expressly preserves the government’s ability to bring criminal charges against Ally, and does not release any individuals from potential criminal or civil liability.
Under the settlement agreement, Ally is required to pay the entirety of the $52 million settlement in the coming weeks.
The investigation into the securitization of subprime mortgages by Ally’s subsidiaries was led by Assistant United States Attorney Indira Cameron-Banks, who worked with special agents with the Federal Housing Finance Agency’s Office of the Inspector General (FHFA-OIG) and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
“The sale of toxic mortgage backed securities crushed the housing market and the economy, leading to years of uncertainty and hardship for many,” said Leslie P. DeMarco, Special Agent in Charge of the Federal Housing Finance Agency-Office of Inspector General’s Western Region. “Today Ally Securities is being held accountable for the role it played. As we move forward, FHFA-OIG will continue to hold entities responsible and work toward building a healthier housing market.”
“Ally received substantial TARP bailout funds. With this agreement, Ally acknowledges that the underwriting and diligence process was deficient in connection with the securitization of 40,000 toxic subprime mortgage loans by its subsidiaries – exactly the type of abuse that contributed to the financial crisis,” said Christy Goldsmith Romero, the Special Inspector General for the Troubled Asset Relief Program. “SIGTARP is committed to working with our law enforcement partners to protect taxpayers and hold those responsible for the financial crisis accountable.”
Ally was cooperative in resolving this matter.
This settlement is part of the Financial Fraud Enforcement Task Force’s RMBS Working Group, which has made recoveries on behalf of American consumers and investors for claims against large financial institutions arising from misconduct related to the financial crises. The RMBS Working Group has brought together attorneys, investigators, analysts and staff from multiple state and federal agencies, including the Department of Justice, U.S. Attorneys’ Offices, the FBI, the U.S. Securities and Exchange Commission (SEC), the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the FHFA-OIG, SIGTARP, the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network and multiple state Attorneys General offices around the country. Learn more about the RMBS Working Group and the Financial Fraud Enforcement Task Force at www.stopfraud.gov.
20 November 2016
Defendant Who Spent Six Years on the Run Finally Sentenced to 27 Years in Federal PrisonRead the Press Release
KANSAS CITY, KAN. – A drug trafficker who was a fugitive from justice for six years was sentenced Friday to 27 years in federal prison, U.S. Attorney Tom Beall said. The defendant also was ordered to forfeit more $13 million in proceeds from his crimes.
Yehia Hassen, 36, formerly of Richmond, Va., pleaded guilty to one count of conspiracy to distribute cocaine and marijuana, and one count of attempted money laundering. In his plea, he admitted he was part of a large drug trafficking organization that operated in Kansas City, Kan. Drugs smuggled from Mexico were transported to Kansas City and then to Hassen in Richmond.
In all, Hassen received more than 100 kilograms of cocaine shipped to him from Kansas City. The organization used commercial and personal vehicles to ship drugs to Kansas City and transport cash to Mexico to pay for drugs.
While Hassen was on release pending sentencing, he absconded. He used false identities to remain free until he was arrested in the Republic of Cyprus on April 28, 2016.
Beall commended the agencies and individuals who took part in Operation Load Runner, including the Drug Enforcement Administration, the U.S. Marshals Service, Assistant U.S. Attorney David Zabel and Assistant U.S. Attorney Tris Hunt.
18 November 2016
“Real Time”: Two Men Sentenced in Federal Court on Gun Charges, Six Others Enter Guilty Pleas over Two Days of Hearings in Federal CourtRead the Press Release
COLUMBIA, South Carolina ---- Acting United States Attorney Beth Drake stated today that multiple individuals entered guilty pleas this week on federal gun charges while others were sentenced for firearms violations. Guilty pleas and sentencing hearings are bifurcated in the federal system and United States District Court Judge Bruce H. Hendricks presided over all of the hearings this week.
These cases represent a small snapshot of “Real Time,” an ongoing local, state, and federal initiative that expedites the identification, arrest, detention, and federal prosecution of repeat offenders arrested with firearms. The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the Greenville community.
In addition to Greenville Police Department (GPD), the Greenville County Sheriff’s Office (GCSO), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Real Time’s core partners include the South Carolina Department of Probation, Parole, and Pardon Services, the South Carolina Highway Patrol, the Department of Homeland Security, the Federal Bureau of Investigation, the Drug Enforcement Administration, the 13th Circuit Solicitor’s Office, and the United States Attorney’s Office.
Greenville Police Chief Ken Miller and his department were one of the first partners on board for this initiative. Chief Miller stated that “This multi-agency partnership endeavors to keep our communities safe and reduce firearms violence through ‘real time’ identification of dangerous individuals who seek to disrupt our streets and communities with firearms-driven violence.”
Acting U.S. Attorney Beth Drake commended the partnership between the state and federal agencies that led to the ATF and the U.S. Attorney’s Office prosecuting the cases federally, “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”
Since its launch in August of 2015, the initiative has resulted in the expedited federal prosecution of some 78 defendants and seizure of over 110 firearms as well as assorted ammunition from prohibited persons.
Sentencing Hearings: November 15, 2016
United States of America v. Julian Rashad Sawyer: Julian Rashad Sawyer, age 28, of Greenville, was sentenced to 46 months in federal prison followed by a three-year term of supervised release, after previously entering a guilty plea in July to felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1). After Sawyer’s initial arrest on state firearms charges, ATF adopted the case for federal prosecution. Sawyer was then arrested on a federal warrant for this conduct, was detained without a bond, and will remain in federal custody until he is designated and transported to the Bureau of Prisons.Evidence presented by the government during both the guilty plea hearing and the sentencing hearing established that on April 25, 2016, officers with the Mauldin Police Department conducted a traffic stop on a vehicle in which Sawyer was a passenger. Sawyer was found to be in possession of a Smith and Wesson 9mm pistol with a loaded 9mm magazine nearby.
The case was investigated by the Mauldin Police Department and the ATF, and was prosecuted by Assistant United States Attorney Max Cauthen in the Greenville office.
United States v. James Robert Hutson: James Robert Hutson, age 26, of Simpsonville, was sentenced to 51 months in federal prison followed by a three-year term of supervised release, after previously entering a guilty plea in July to felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1). After Hutson’s initial arrest on state firearms charges, ATF adopted the case for federal prosecution. Hutson was then arrested on federal warrants for this conduct, was detained without a bond, and will remain in federal custody until he is designated and transported to the Bureau of Prisons.
Evidence presented by the government during both the guilty plea hearing and the sentencing hearing established that on November 27, 2015, officers with the GPD conducted a traffic stop on a vehicle driven by Hutson. When Hutson exited the car, an officer observed his pocket swing as if there was something heavy in it. The officer then conducted a pat-down of Hutson’s outer clothing and recognized what he immediately knew to be loose rounds of ammunition in one of Hutson’s pockets and secured the rounds.
A subsequent search of the vehicle revealed a loaded Lorcin .25 caliber pistol, located between the driver’s seat and the center console. Hutson was sentenced to 51 months in federal prison followed by a three-year term of supervised release. Investigated by the GPD and ATF, the case was prosecuted by Assistant United States Attorney Max Cauthen in the Greenville office.
Guilty Pleas: November 16, 2016
United States v. Ashley Ann Chapman: Ashley Ann Chapman, age 32, of Piedmont, South Carolina, entered a guilty plea to one count of Possession of a Firearm by a Convicted Felon, in violation of Title 18, United States Code, Section 922(g)(1). The Government presented evidence at the guilty plea hearing that on August 26, 2016, Chapman was stopped in Pickens County for a traffic violation. During the stop, while checking her license, Chapman, who is prohibited from possessing firearms or ammunition based on her prior criminal history, informed officers that she was in possession of a pistol. Officers then located a loaded North American Arms .22 caliber pistol in her clothing.Chapman remains in custody awaiting a sentencing hearing which will be calendared after a presentence investigation report is prepared by the United States Probation Office. The maximum penalty for this offense is ten-years imprisonment, followed a three-year term of supervised release, and/or a fine of $250,000.
The South Carolina Highway Patrol along with agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case. It is assigned to Assistant United States Attorney Max Cauthen in the Greenville office.
United States v. Treasure Anderson: Treasure Anderson, age 28, of Anderson, South Carolina, entered a guilty plea to one count Possession of a Firearm by a Convicted Felon, in violation of Title 18, United States Code, Section 922(g)(1). The Government presented evidence at the guilty plea hearing that on March 8, 2016, Gaffney Police Department attempted to pull over a black mustang. The vehicle fled from law enforcement, and a car chase ensued. The black mustang eventually wrecked, and the occupants of the vehicle were arrested.
Law enforcement searched the mustang and recovered a loaded Jimenez Arms, Inc., model J.A. 22, .22 caliber pistol from the passenger seat where Anderson had been sitting. They also recovered a quantity of methamphetamine. When Anderson observed the officers taking the gun and drugs out of the car, she yelled that the items belonged to her. Anderson has previously been convicted of a felony and is not permitted to carry firearms.
Anderson remains in custody, awaiting a sentencing hearing which will be calendared after a presentence investigation report is prepared by United States Probation. The maximum penalty for this offense is ten-years imprisonment and/or a fine of $250,000. The case was investigated by the Gaffney Police Department and ATF and is assigned to Assistant United States Attorney Jamie Schoen in the Greenville office.
United States v. Nakeo Vance: Nakeo Vance, age 41, of Greenville, South Carolina, entered a guilty plea to one count of Possession of a Firearm by a Convicted Felon and Domestic Violence Offender, in violation of Title 18, United States Code, Section 922(g)(1) and (g)(9), and two counts Possession of Counterfeit Currency, in violation of Title 18, United States Code, Section 472.The Government presented evidence at the guilty plea that on May 16, 2015, GCSO conducted a traffic stop on a car in which Vance was a passenger. Vance was wanted on outstanding warrants, and law enforcement eventually searched the car. Officers located a wallet in the vehicle with Vance’s ID and 98 counterfeit federal reserve notes. Vance admitted that he had received the counterfeit from a drug deal, and had already used approximately $600.00 in counterfeit to pay off drug debts.
A year later, Vance was again arrested, but this time, by GPD. On May 13, 2016, GPD received a call from a hotel regarding possible drug activity and additional concerning information. Officers arrived and observed Vance standing outside of a Chrysler, acting suspiciously. Once Vance observed law enforcement, Vance shoved an item into a backpack he was holding and threw the backpack into the car. Officers patted down Vance due to safety concerns and found that he was carrying a loaded Butler Associate, .22 caliber handgun. Vance then ran from the police.
Officers eventually apprehended Vance and found that he was carrying more counterfeit bills. Law enforcement searched the Chrysler and found a loaded General Precision Corporation .22 caliber revolver in the backpack Vance had been holding. Vance has previous felony convictions and a conviction for misdemeanor domestic violence.
Vance remains in custody, awaiting a sentencing hearing which will be calendared after a presentence investigation report is prepared by United States Probation. The maximum penalty for this offense is ten-years imprisonment and/or a fine of $250,000. The maximum penalty for the counterfeit charges is twenty-years imprisonment and/or a fine of $250,000.
The case was investigated by the Secret Service, GPD, GCSO, and ATF and is assigned to Assistant United States Attorney Jamie Schoen in the Greenville office.United States v. Norman Jefferson: Norman Jefferson, age 51, of Greenville, South Carolina, pled guilty to one count Carrying a Firearm in Furtherance of a Drug Trafficking Crime, in violation of Title 18, United States Code, Section 924(c) and one count Conspiracy to Distribute Crack Cocaine, in violation of Title 21, United States Code, Section 846.
The Government presented evidence at the guilty plea that in January and February of 2016, Jefferson sold crack cocaine on multiple occasions from his residence. In March of 2016, GPD conducted a search of the residence, and upon entering, found Jefferson near crack cocaine and cocaine powder. Jefferson was also carrying a loaded Ruger .380 caliber pistol at the time. Drug distribution materials were located throughout the house. Jefferson stated that he had the gun for protection because people who come to his house to get high are unpredictable.
Jefferson remains in custody, awaiting a sentencing hearing which will be calendared after a presentence investigation report is prepared by United States Probation. This offense calls for a mandatory minimum sentence of five-years and a maximum penalty of life imprisonment, as well a fine of $250,000 and a term of supervised release of five-years.
The case was investigated by the Gaffney Police Department and ATF and is assigned to Assistant United States Attorney Jamie Schoen in the Greenville office.
United States of America v. Jomokayatta Walter Dennis Cook: Jomokayatta Walter Dennis Cook, age 36, of Greenville, South Carolina, pled guilty to Possession of a Firearm by a Convicted Felon, in violation of Title 18, United States Code, Section 922(g)(1).The Government presented evidence at the guilty plea that on September 16, 2016, Cook, a security staff employee at a Greenville restaurant, possessed a loaded Sturm 9mm pistol during a verbal altercation with a fellow employee while in an employee break area at the restaurant. Cook’s possession of the pistol was captured on surveillance video at the location. Cook has previous felony convictions that prohibit him from possessing firearms or ammunitions.
Cook was arrested on federal warrants that same evening and has been detained with no bond since his arrest. Cook remains in custody on a $250,000 secured bond, awaiting a sentencing hearing which will be calendared after a presentence investigation report is prepared by United States Probation. The maximum penalty for this offense is ten-years imprisonment and/or a fine of $250,000.
The case was investigated by GPD and ATF and is assigned to Supervisory Assistant United States Attorney Lance Crick in the Greenville office.
United States of America v. Xavier Javaris Dawkins: Xavier Javaris Dawkins, age 27, of Greenville, South Carolina, pled guilty to Possession of a Firearm by a Convicted Felon, in violation of Title 18, United States Code, Section 922(g)(1).The Government presented evidence at the guilty plea that on March 27, 2016, GCSO deputies responded to a Greenville nightclub in reference to a disturbance in the parking lot. While en route to the incident location, deputies were advised that a suspect (identified upon arrival as Dawkins), was being detained by the club’s security staff.
Upon arrival, club security relayed to GCSO that security had removed four individuals from the night club due to their involvement in a fight. After the individuals were removed, security observed Dawkins walk to his vehicle and remove a handgun and chamber a round in the handgun. After security commanded that Dawkins drop the weapon, Dawkins complied and placed the handgun back into the vehicle. Dawkins was detained by club security until GCSO arrived.
The seized handgun was loaded with fourteen rounds of ammunition. At the time of this offense, Dawkins was on active state probation following a previous conviction for unlawful carrying of a firearm.
Dawkins was arrested on federal warrants and has been detained with no bond since his arrest. Dawkins remains in custody, awaiting a sentencing hearing which will be calendared after a presentence investigation report is prepared by United States Probation. The maximum penalty for this offense is ten-years imprisonment and/or a fine of $250,000.
The case was investigated by GPD and ATF and is assigned to Supervisory Assistant United States Attorney Lance Crick in the Greenville office.
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“Dino the Casino” of Los Angeles Indicted for Statewide Illegal Gambling Business, Money Laundering, and Cocaine DistributionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 12-count indictment Thursday against Nive Hagay, 31, of Los Angeles, charging him with operating an illegal gambling business, money laundering, and cocaine distribution, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, between approximately July 2011 and November 2016, Hagay, who also went by the name “Dino the Casino,” placed video slot machines in small businesses from Bakersfield to Sacramento. These machines allegedly generated an estimated $1.9 million in cash per year, in violation of California state law. Hagay then laundered proceeds from the illegal gambling business through clothing companies in Los Angeles, as well as by making large purchases with the cash proceeds, such as a $202,000 cash transaction for a 2014 Audi R8. Finally, Hagay is charged with distributing a substance testing positive for cocaine.
This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice – Bureau of Gambling Control. Assistant United States Attorney Matthew M. Yelovich is prosecuting the case.
If convicted, Hagay faces a maximum statutory penalty of five years in prison and a $250,000 fine for the gambling charge; 10 years in prison and a $250,000 fine or fine of twice the value of the property involved in the transaction for one of the money laundering charges; 20 years in prison and a $500,000 fine or a fine of twice the value of the property involved in the transaction for the remaining money laundering charges; and 20 years in prison and a $1 million fine for the cocaine distribution charge. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Willianson County Man Charged with Cocaine OffenseRead the Press Release
Leon S. Johnson, 40, of Herrin, was indicted on November 8, 2016, in a one-count indictment charging possession with intent to distribute more than 500 grams of cocaine, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
The indictment alleges the offense occurred on November 4, 2016, in Williamson County. Johnson made his initial appearance in federal court on November 15, 2016. He was ordered held without bond, pending a January 17, 2017, jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The cocaine offense carries a maximum penalty of 5-40 years imprisonment, to be followed by 4 years supervised release, and a $5,000,000 fine.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Herrin Police Department, Williamson County Sheriff’s Office, and Drug Enforcement Administration. The Williamson County States Attorney’s Office and Illinois National Guard also assisted in the investigation.
Williamson County Man Charged with Methamphetamine OffensesRead the Press Release
Otis R. Elion, 48, of Marion was indicted on November 8, 2016, in a three-count indictment charging distribution of methamphetamine, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
The indictment alleges the offenses occurred on October 17-18, 2016, in Williamson County. Elion made his initial appearance in federal court on November 15, 2016. He was ordered held without bond, pending a January 23, 2017, jury trial.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The methamphetamine offenses carry a penalty of up to 20 years imprisonment, to be followed by 3 years supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Southern Illinois Enforcement and Drug Enforcement Administration. The Marion Police Department Emergency Response Team, Illinois State Police, and Williamson County States Attorney’s Office assisted in the investigation.
West Palm Beach Resident is Convicted of Attempting to Conceal Money Subject to SeizureRead the Press Release
Doraisy Martinez, 39, of West Palm Beach, pled guilty to one count of attempted removal of property to prevent seizure.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), made the announcement.
According to the court record, including facts admitted at the plea hearing, in March 2016, Martinez was living with her boyfriend, Osvaldo Rizo Santana, in Boynton Beach. On March 16, 2016, DEA agents executed a search warrant at the house, seized almost a kilogram of cocaine, and arrested Santana. On March 17 and 18, 2016, Santana called Martinez several times from jail. In the recorded calls, Santana and Martinez discussed an item that was buried in their yard. On March 18, 2016, DEA agents went to Santana and Martinez’s house. There they observed Martinez digging a hole in the ground and new holes on the property. Agents then obtained a search warrant for the premises. There they discovered, buried at the location where Ms. Martinez had been digging when the agents arrived, $20,000 in a vacuum sealed package. Martinez had attempted to remove the money to prevent it from being seized by law enforcement.
In a separate case, Santana pled guilty to conspiracy to possess with the intent to distribute cocaine and was sentenced to 37 months’ incarceration.
Martinez faces a maximum possible statutory sentence of five years in prison.
Mr. Ferrer and Mr. Wright commended the investigative efforts of the DEA. This case is being prosecuted by Assistant U.S. Attorney Marc Osborne.
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.
Virginia Man Sentenced to 17 Years in Prison for Production of Child PornographyRead the Press Release
A Virginia man was sentenced today to 204 months in prison for production of child pornography, enticing minors to engage in sexually-explicit conduct online and recording the acts.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney Dana J. Boente of the Eastern District of Virginia; Colonel Edwin C. Roessler Jr., Chief of the Fairfax County, Virginia, Police Department; and Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C., made the announcement.
Lucas Aronson, 31, of Alexandria, pleaded guilty on Aug. 23, 2016, and was sentenced today by U.S. District Judge Anthony J. Trenga of the Eastern District of Virginia, who also ordered Aronson to serve a lifetime of supervised release.
According to admissions made in connection with his plea, Aronson posed as a minor girl while using video and text chat websites to chat with minor girls online. Aronson engaged in sexually explicit chats and enticed some of the minors to engage in sexually explicit activity on web camera and recorded the videos, which he maintained on a thumb drive that was found in his residence. In January 2015, Aronson was arrested after streaming a video of a toddler-aged female engaged in sexually explicit conduct with an adult male on a chat website.
The Fairfax County Police and HSI investigated the case. Trial Attorney Lauren Britsch of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jay V. Prabhu of the Eastern District of Virginia prosecuted the case.
This investigation was a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, 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.justice.gov/psc.
Undercover Operation by Coast Guard Investigators Leads to Dismantling of 5 ‘Document Mills’ that Produced Bogus ID DocumentsRead the Press Release
LOS ANGELES – As part of an ongoing undercover operation by Special Agents with the Coast Guard Investigative Service (CGIS), five fraudulent “documents mills” have been dismantled in recent months, and the investigation has now resulted in charges against 13 defendants who allegedly produced bogus identity documents.
Two of those defendants pleaded guilty today in United States District Court, each admitting that they sold undercover agents and confidential informants counterfeit Legal Permanent Resident cards (also known as “Green Cards”) and Social Security cards.
Today’s guilty pleas are the latest convictions stemming from Operation “Buzzkill,” a CGIS investigation that shut down three fraudulent “document mills” near MacArthur Park in September. Two other document mills were closed in June.
Operation Buzzkill identified the manufacturers of bogus documents, as well as the sellers and “runners” who facilitate their sale. As a result of the investigation, over the past year, federal prosecutors have filed a series of cases that charge 13 defendants with participating in a black market for counterfeit documents.
The document mills allegedly produced a range of counterfeit identity documents, including driver’s licenses, Social Security cards, United States passports, military identification cards, and highly regulated Transportation Worker Identification Credentials (TWICs), which enable unrestricted access to secure facilities within the ports and waterways of Los Angeles. TWICs are issued by the Transportation Security Administration (TSA) and enforced by the United States Coast Guard (USCG) for the purpose of restricting individuals with significant criminal records, non-United States citizens and members of terrorist organizations from gaining access to the sensitive infrastructures surrounding our nation’s trade routes.
“Our national security and the integrity of many government programs rests on our ability to ascertain the true identity of individuals,” said United States Attorney Eileen M. Decker. “False identification documents – even if they can be easily recognized by knowledgeable individuals – may allow unauthorized individuals to access controlled areas or to fraudulently receive benefits.”
“Proper identification and background checks of transportation workers are an important aspect of our multi-agency, multi-layered port security system,” said Rear Admiral Todd Sokalzuk, commander of the 11th Coast Guard District, which includes the Los Angeles/Long Beach region. “I applaud the skill and tenacity of our Coast Guard Investigative Service agents and partner agencies who shut down these counterfeit ID operations, and appreciate the help of a vigilant maritime community in keeping our ports safe and secure.”
The two defendants who pleaded guilty today are:
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Gustavo Nunez Garcia, also known as Gustavo Garcia Nunuz and “Octavio,” 34, of the Westlake District of Los Angeles, who pleaded guilty this morning before United States District Judge S. James Otero; and
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Miguel Rueda, also known as “El Pelon,” 44, of Paramount, who pleaded guilty before United States District Judge Otis D. Wright II.
Both defendants pleaded guilty to one count of production of false identity documents, a felony offense that carries a statutory maximum penalty of 15 years in federal prison. Garcia and Rueda are both scheduled to be sentenced on February 27.
Garcia was one of five Westlake District residents who were arrested by CGIS special agents on October 3. The other defendants arrested last month on charges of producing false identity documents are:
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Argenis Capistran, also known as “Pac Man,” 23, who allegedly worked with Garcia;
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Ivonne Adriana Sanchez Hernandez, 49, who allegedly helped produce counterfeit TWICs and Green Cards in relation to a Westlake business called Galaxi Photo;
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Fernando Hernandez, also known as “Tio,” 59, who was also associated with Galaxi Photo; and
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Jose Manuel Perez Cruz, 31, another person associated with Galaxi Photo, who allegedly sold and/or produced Green Cards, Social Security cards, driver’s licenses from multiple states, United States Passports, United States military identification documents and TWICs.
These four defendants are currently scheduled to go on trial within the next month, but it is anticipated that all four trials will be delayed until next year.
An indictment or criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
Miguel Rueda was one of five people arrested in June in relation to a document mill run out of a Huntington Park storefront called Pacific Mill that produced Green Cards, Social Security cards, driver’s licenses and TWICs. Previously in this case, Rueda’s brother, Francisco Casteneda Rueda, 48; Alejandro Gabriel Rivera, 34; and Armando Guerrero Vasquez, 47, previously pleaded guilty. A fifth defendant charged in relation to this case – Laura Balcazar, 38, of Lynwood – is a fugitive who absconded after being freed on bond in this case.
Operation Buzzkill is a CGIS-led project designed to dismantle document mills producing counterfeit TWICs and other bogus credentials. In this investigation, CGIS has joined with the Transportation Security Administration, the Los Angeles Police Department, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the State Department’s Diplomatic Security Services, the United States Secret Service and LA CLEAR.
Earlier this year, as part of the investigation, a San Fernando Valley man who operated a document mill in Sylmar pleaded guilty to unlawful possession and production of authentication features and admitted being a felon in possession of firearms and ammunition. Brian Alan Dunmore, 51, of Porter Ranch, is scheduled to be sentenced on December 19, at which time he faces up to 25 years in federal prison.
A South Los Angeles resident arrested in February has agreed to plead guilty to producing false identity documents. Ricardo Gama-Diaz, also known as “Ricardo Rios-Gama” and “Coy,” 51 is expected to enter his plea in December.
A Monterey Park man who was charged in April has also pleaded guilty. Hector Hugo Aquino, 46, who admitted producing Social Security cards and Green Cards, was sentenced in September to serve four months in federal prison, to be followed by three years of supervised release.
The criminal cases stemming from Operation Buzzkill are being prosecuted by Assistant United States Attorney Amanda M. Bettinelli of the Environmental and Community Safety Crimes Section.
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Two Hampton Roads Residents Indicted for Heroin Related DeathRead the Press Release
NEWPORT NEWS, Va. – Robert Alan Durkee, 58, of Hampton, and Julie Rae Rock, 38, of Newport News, have been indicted by a federal grand jury on charges of distribution of heroin and fentanyl resulting in death.
According to the indictment, on or about Nov. 17, 2015, Durkee and Rock distributed heroin and fentanyl to E.H. in Newport News, and E.H. died as a result of using the heroin.
Durkee and Rock each face a maximum penalty of life in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Richard W. Myers, Chief of Newport News Police, made the announcement after initial appearances before U.S. Magistrate Judge Douglas E. Miller. Assistant U.S. Attorneys Lisa R. McKeel and Megan M. Cowles are prosecuting the case.
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. 4:16-cr-84.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Two Defendants Arrested on Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. announced today that Tyrone Pennick, 40, of Amherst, NY, and Geneva Smith, 30, of Buffalo, NY, were arrested and charged by criminal complaint with conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine. The charge carries a minimum penalty of five years in prison and a maximum of 40 years.
Defendant Pennick is currently charged in a federal indictment for his role as the leader of a large-scale cocaine trafficking organization. In June 2014, Pennick was released under the condition of home incarceration.
Assistant U.S. Attorneys Timothy C. Lynch and Laura A. Higgins, who are handling the case, stated that according to the complaint, on November 17, 2016, the Erie County Sheriff’s Office conducted surveillance in the area of Pennick’s residence at 489 Emerson Drive in Amherst. Investigators observed a female, later identified as defendant Smith, leaving the residence carrying an open-top, tote style bag and entering a bronze colored Ford Flex.
Investigators continued to monitor the vehicle and noted that Smith began watching the surveillance vehicle closely in the rearview mirror. Smith subsequently began driving in an erratic manor at which point the defendant was observed reaching to the backseat area and moving the tote bag to the front seat. Investigators activated their emergency lights and conducted a traffic stop of the vehicle. Smith was detained and investigators removed what appeared to be two containers containing suspected cocaine from the tote bag.
A search warrant was then executed at Pennick’s residence at 489 Emerson Drive. Investigators recovered a metal press, digital scale, packaging material, a box of rubber gloves, a plastic bag containing disposable dust masks, a vacuum sealer, a vacuum sealed bag containing $49,990 in U.S. currency concealed in the dishwasher and a plastic bag containing suspected cocaine weighing approximately one ounce concealed in a box of oatmeal. Pennick was then arrested.
The complaint is the result of an investigation by the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
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.
Tulsa County Physician Paid $50,000 to Resolve Comprehensive Drug Abuse Prevention Act Allegations Related to Prescribing Controlled SubstancesRead the Press Release
United States Attorney Danny C. Williams, Sr. announced today that a Tulsa, Oklahoma, physician, Dr. Anoop Sangha, entered into a settlement agreement to pay $50,000 to resolve civil allegations that he violated the Comprehensive Drug Abuse Prevention Act of 1970, which regulates the manufacture and distribution of controlled substances.
According to the settlement agreement, the violations of the Act occurred between September 4, 2011 and February 16, 2012. The settlement resolves an action filed by the United States in Federal District Court on September 2, 2016, wherein Dr. Sangha was accused of forging numerous prescriptions for his personal use.
This case was handled by Assistant United States Attorney Marianne Hardcastle following an investigation by the Drug Diversion Unit of the United States Drug Enforcement Administration. If you are aware of any illegal prescription drug sales and distribution, contact the Drug Enforcement Administration at 1-877-792-2873.
The claims asserted by the government are allegations only, and there has not been any determination of liability.
Texas Man Pleads Guilty to Running Fraudulent Investment Companies and Obstructing Securities and Exchange Commission InvestigationRead the Press Release
A San Angelo, Texas, man pleaded guilty today to fraud and obstruction of justice charges in connection with two investment companies he ran that defrauded investors out of approximately $900,000 over a four-year period.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John R. Parker of the Northern District of Texas and Special Agent in Charge Thomas M. Class Sr. of the FBI’s Dallas Office made the announcement.
Stanley Jonathan Fortenberry, 50, pleaded guilty to two counts of mail fraud and one count of obstructing an official proceeding before U.S. Magistrate Judge D. Gordon Bryant Jr. of the Northern District of Texas. Sentencing will be scheduled at a later date.
As part of his guilty plea, Fortenberry admitted that he ran an investment company called Premier Investment Fund (Premier), which raised funds from investors for social media projects run by another company with ties to the country music industry. Fortenberry misled investors about the profitability of the company and about the destination of the investors’ funds. Fortenberry admitted that he diverted approximately half of investors’ funds into his own pocket and to pay the expenses of his fundraising operation.
Fortenberry also admitted that, from 2013 to 2014, he ran Wattenberg Energy Partners (Wattenberg), which raised funds for oil and gas drilling projects in northern Colorado. Fortenberry admitted that he set up the company in his son’s name because he was then under investigation by the Securities and Exchange Commission (SEC) for misusing the Premier investors’ funds. He used a network of salespeople to solicit individuals over the phone to invest in drilling projects. Fortenberry admitted that he spent the vast majority of the funds on himself and the company’s fundraising operation. In October 2014, at an administrative hearing with the SEC, Fortenberry falsely denied having control of or working for Wattenberg.
Fortenberry admitted that the total loss to victims of both schemes was $887,311.
As part of the department’s investigation into Wattenberg, Peter Szondy, 70, and Stanley Stephen Fortenberry, 24, both pleaded guilty and admitted to committing fraud while working for Wattenberg.
The FBI’s Dallas Office investigated the case. Trial Attorney William E. Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Sean Long of the Northern District of Texas are prosecuting the case. The SEC has provided substantial assistance in this case and referred this matter to the department.
The Fraud Section plays a pivotal role in the department’s fight against white collar crime around the country. Today’s guilty plea is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 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. Over the past three fiscal years, the department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Tampa Man Sentenced in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Cedric Clark to eight years and six months in federal prison for his role in a stolen identity refund fraud scheme in the Tampa Bay area. As part of his sentence, the Court ordered him to pay restitution to the Internal Revenue Service in the amount of $1,933.862.37. Clark pleaded guilty on June 21, 2016.
According to court documents, between October 2010 and June 2013, Clark engaged in a fraud scheme involving the filing of false and fraudulent income tax returns in the names of living and deceased individuals. Clark and his co-conspirators received approximately $1.9 million in tax refund checks from the IRS. They had filed returns requesting refunds of almost $6 million.
This case was investigated by the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Stockton Loan Officer Sentenced for Mortgage FraudRead the Press Release
SACRAMENTO, Calif. —Mark F. Friend, 62, of Stockton, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to two years and four months in prison and ordered to pay $1,889,379 in restitution for conspiracy to commit bank fraud in relation to a mortgage fraud scheme, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between September 2006 and March 2007, while working for National City Mortgage, then a division of National City Bank, in Stockton, Friend arranged loans for borrowers that contained numerous falsehoods. He submitted false loan applications and other documents, and he made down payments on behalf of borrowers who did not have enough money, and then was repaid out of escrow after the loans were funded. The borrowers eventually stopped making payments on the loans, and National City Bank and other entities sustained losses amounting to $1,889,379.
Judge Burrell ordered Friend to self-surrender and begin his incarceration on January 13, 2017.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney John K. Vincent prosecuted the case.
Statement by Deputy Attorney General Sally Q. Yates on the Passing of U.S. Marshals Service Deputy Commander Patrick CarothersRead the Press Release
Deputy Attorney General Sally Q. Yates today released the following statement on the passing of U.S. Marshals Service Deputy Commander Patrick Carothers:
“Today the Marshal Service lost one of its best. I had the privilege of working with Deputy Commander Carothers in Atlanta for many years and he more than lived up to his reputation for being an inspiring leader and an exemplary public servant. Deputy Commander Carothers was dedicated to his mission, devoted to his team and heroic to his core. For those of us lucky enough to see him in action, he set an extraordinary example of valor and decency in service to the American people. Losing him today is a blow to our law enforcement family in Atlanta and across the country and it underscores the grave risks that law enforcement officers assume every day in order to keep us safe. Deputy Commander Carothers was a hero not only to his colleagues, but also to the family he cherished and adored. His wife and children, and all of his loved ones will be central to my thoughts and prayers during this difficult time. All of us at the U.S. Department of Justice owe it to them – and to the memory of Deputy Commander Carothers – to keep his spirit alive by continuing to fight for the values of security, peace and justice that animated his life and that will endure with his legacy."
Statement by Attorney General Loretta E. Lynch on the Passing of U.S. Marshals Service Deputy Commander Patrick CarothersRead the Press Release
Attorney General Loretta E. Lynch today released the following statement on the passing of U.S. Marshals Service Deputy Commander Patrick Carothers:
“I am deeply saddened by the tragic loss of U.S. Marshals Service Deputy Commander Patrick Carothers -- a devoted husband, a loving father and an outstanding public servant. Deputy Commander Carothers served the American people with fidelity and courage throughout his distinguished career. He stayed true to his oath to the last, laying down his life to keep his community safe and his neighbors secure. I know that his legacy will live on in the proud annals of the U.S. Marshals Service and in the memory of his fellow law enforcement officers from coast to coast. I join all the men and women of the U.S. Department of Justice in extending my thoughts and prayers to Deputy Commander Carothers’s wife, children and loved ones. We will honor his heroic sacrifice by continuing the work for which he so valiantly gave his life: the work of building a stronger, safer and more just United States.”
St. Francis Woman Sentenced for Child AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, woman convicted of Child Abuse was sentenced on November 7, 2016, by U.S. District Judge Roberto A. Lange.
Leonna Lynn Poorman, a/k/a Leona Lynn Poorman, age 29, was sentenced to 5 months in custody, followed by 2 years of supervised release with 5 months of home confinement, and a $100 special assessment to the Federal Crime Victims Fund.
Poorman was indicted by a federal grand jury on February 17, 2016. She pled guilty on August 16, 2016.
The conviction stemmed from an incident that occurred on February 8, 2015. On February 6, 2015, Poorman began drinking alcohol at a home near St. Francis, and she brought her five children, all under age seven, with her to the home. Poorman drank alcohol and partied at the home from February 6, 2015, to the morning of February 8, 2015. The children stayed in a back bedroom of the home and no adult remained sober to help care for them.
In the early morning of February 8, 2015, Poorman was intoxicated and went to sleep in the same bed with her three-month-old child. Her other four children were on the bed or on the floor sleeping. At approximately 9:00 A.M., Poorman found the three-month-old child deceased in the bed she was sharing with her. The Defendant had a blood alcohol content of .107% at approximately 10:00 A.M. that day.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Poorman was immediately turned over to the custody of the U.S. Marshals Service.
Southern Illinois Residents Charged with Methamphetamine OffensesRead the Press Release
Kiristien M. Joyner, 27, of Carbondale, and Marshall W. Duty, 58, of Dongola, were indicted on November 8, 2016, in a three-count superseding indictment charging methamphetamine violations, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. Joyner and Duty are each charged with conspiracy to distribute methamphetamine. Joyner and Duty are each also charged with one count of unlawful distribution of methamphetamine.
The indictment alleges the offenses occurred between 2013 and October 3, 2016, in Union, Jackson and Williamson Counties. Joyner made her initial appearance in federal court on November 10, 2016. At a November 15, 2015, detention hearing, she was ordered held without bond pending a January 9, 2017, jury trial. Duty previously made his appearance in federal court.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The methamphetamine offenses carry a maximum penalty of up to 20 years imprisonment, to be followed by 3 years supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group and Drug Enforcement Administration. The Williamson County States Attorney’s Office and Illinois National Guard also assisted in the investigation.
Six Beaufort Men Indicted on Drug and Gun Trafficking ChargesRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
Columbia, South Carolina--------Acting United States Attorney Beth Drake, announced today that Brandon Singleton, age 32, Frank Clemons, age 36, Tyrone Williams, age 57, Naji Osborne, age 27, Mark Delaney, age 28, and Torrion Cooper, age 35 have been indicted for their roles in a drug and gun trafficking conspiracy operating in and around Beaufort, South Carolina. The indictment further charges that Brandon Singleton possessed firearms in furtherance of the drug trafficking. Additionally, Brandon Singleton and Tyrone Williams are charged with being felons in possession of firearms, given their previous convictions for crimes punishable by at least a year imprisonment. The government moved for detention of all six defendants pending trial pursuant to the Bail Reform Act. As of the date of the indictment, this investigation has resulted in the seizure of thirteen firearms, some of which were used in furtherance of drug trafficking, and over 500 grams of cocaine. On the conspiracy charges, Singleton faces a maximum possible sentence of 40 years incarceration and the other defendants face maximum possible sentences of up to 20 years incarceration. Defendants who are charged with being a felon in possession of firearms face a maximum possible sentence of 10 years incarceration. Defendants who are charged with using or carrying firearms in furtherance of drug trafficking activities face sentences of a minimum of 5 years incarceration up to a maximum of lifetime incarceration.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance and cooperation of the Beaufort County Sheriff’s Office and the 14th Circuit Solicitor’s Office in an effort to target the sale of cocaine and firearms. Assistant United States Attorney Emily Limehouse of the Charleston office is prosecuting the case.
The Acting United States Attorney stated that all charges in this indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.
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Sioux Falls Man Sentenced for Assault Resulting in Substantial Bodily InjuryRead the Press Release
United States Attorney Randolph J. Seiler announced that a Sioux Falls, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury was sentenced on November 14, 2016, by U.S. District Judge Roberto A. Lange.
Justin Stone Arrow, age 37, was sentenced to 15 months in custody, followed by 2 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Stone Arrow was indicted by a federal grand jury on April 13, 2016, for Assault with a Dangerous Weapon, Assault Resulting in Substantial Bodily Injury, and Child Abuse. He plead guilty to Assault Resulting in Substantial Bodily Injury on August 24, 2016.
In the early morning of March 10, 2016, Stone Arrow was drinking alcoholic beverages with his adult sister and a minor, age 13, at a home in the Milk’s Camp Community, Gregory County, South Dakota. An argument ensued between Stone Arrow and the minor, and Stone Arrow struck the minor in the face with his fists. Stone Arrow’s sister interrupted the altercation and began caring for the minor. The minor was taken to the Gregory County hospital, where he received four sutures for a laceration under his right eye.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Stone Arrow was immediately turned over to the custody of the U.S. Marshals Service.
Sandra Marks Sentenced on Mail Fraud, Money LaunderingRead the Press Release
CHARLOTTESVILLE, VIRGINIA – The former owner of a fortune-teller business located on Seminole Trail in Charlottesville was sentenced today in Federal court on charges that she committed mail fraud and laundered more than $1 million in money stolen from her victims, United States Attorney John P. Fishwick Jr. said today. In a separate hearing, the defendant’s husband pled guilty to similar charges today.
Sandra Stevenson Marks, a.k.a. “Catherine Marks,” 42, of Charlottesville, previously pled guilty to one count of mail fraud and one count of money laundering. Today in District Court, Sandra Marks was sentenced to 30 months in federal prison.
In a separate hearing today in Federal Court, Donnie Stephen Marks, 43, formerly of Charlottesville, pled guilty to an Information, charging him with one count of mail fraud and one count of money laundering. Both defendants have agreed to repay at least $1.2 million in restitution to the victims of the scheme.
“These defendants found victims who were at some of the lowest points of their lives and took advantage of that grief for their own financial gain,” United States Attorney Fishwick said today. “Today’s sentence shows the seriousness of the nature of this crime and I hope it brings some level of closure to the victims of this scheme.”
According to evidence presented at previous hearings by Assistant United States Attorney Ronald M. Huber, Sandra Marks and Donnie Marks operated the business “Readings by Catherine” on Seminole Trail in Charlottesville, which offered services such as palm readings, candle readings, tarot card readings, astrological readings and spiritual readings to clients. Sandra Marks provided direct customer services while Donnie Marks managed the affairs of the business.
Sandra Marks has admitted, through a statement of facts submitted to the court and signed by the defendant, that she enriched herself by telling her clients she was clairvoyant and able to see into the past and the future. Marks also said she told her clients she had a “gift from god” and was able to communicate with spirits and guides from god, including the “Prince of Illusion,” who relayed information to her about clients.
Sandra Marks further admitted that she would tell clients that she had learned from the spirits and guides that the client, and/or the client’s family, was suffering from a “curse” and a “dark cloud” that occurred in the past. Marks would tell clients they would need to make a sacrifice of large amounts of money and valuables, whereby she would bury the money and items in a box to be “cleansed.” Marks explained to her clients that the money and property would be returned once the “work” was complete. Additionally, Marks would tell the clients that the money and property would not be used for Marks’ own personal benefit.
Contrary to her representations to clients, Donnie Marks and Sandra Marks kept and used money and other valuables provided by their clients for their own personal use and enjoyment and that of their family. When Sandra and Donnie Marks had used all of a client’s money, Sandra and Donnie Marks would find new clients to fund the scheme, or tell old clients that additional money was required to continue her “work.”
The investigation of the case was conducted by U.S. Immigration and Custom Enforcement’s Homeland Security Investigations, the United States Postal Inspection Service, the United States Secret Service, the Virginia Attorney General’s Office, the Albemarle County Commonwealth’s Attorney’s Office and the Albemarle County Police Department. Assistant United States Attorney Ronald M. Huber prosecuted the case for the United States.
Sacramento Man Pleads Guilty to Sex Trafficking a MinorRead the Press Release
SACRAMENTO, Calif. — Zargham Bukhari, 22, of Sacramento, pleaded guilty today to sex trafficking of children, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, between February and April of 2014, Bukhari transported a 14-year-old victim to various motels and other locations in and around Sacramento to have sex with men for money. Bukhari would then take the money from the victim. Bukhari also gave the victim methamphetamine while he trafficked her.
This case is the product of an investigation by the Federal Bureau of Investigation Child Exploitation Task Force, a multijurisdictional task force composed of representatives from the FBI and the Sacramento Police Department. Assistant United States Attorney Michele Beckwith is prosecuting the case.
Bukhari is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on February 10, 2017. Bukhari faces a maximum statutory penalty of life years 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Scam Targeting Local ResidentsRead the Press Release
United States Attorney Randolph J. Seiler reported today that local law enforcement authorities have been receiving reports of residents being targeted in a telephonic scam.
Unsuspecting citizens have been receiving telephone calls from persons claiming to be a police officer, clerk of courts personnel, and even a federal district court judge. The caller claims the citizen was supposed to report for jury duty in federal or state court, and failed to report as directed. The citizen is being told by the bogus caller that they must send money to a specified account or person in order to avoid being arrested.
U.S. Attorney Seiler wants citizens to know the claims being made in these calls are totally false and, if contacted, citizens should not send money to anyone as instructed in the fraudulent call.
If you feel you have been a target of this scam you should immediately contact the Rapid City Police Department at 605.394.4131 or the United States Marshal’s Service in Rapid City at 605.342.6331.
Rockdale Woman Sentenced to Fifty Years in Federal Prison for Sexual Exploitation of a ChildRead the Press Release
Today in Waco, 39-year-old Charlotte Horelica of Rockdale, TX, was sentenced to a total of 600 months in federal prison for sexual exploitation of a child and for distribution of child pornography announced United States Attorney Richard L. Durbin, Jr., and Texas Attorney General Ken Paxton.
During today’s sentencing hearing, United States District Judge Robert Pitman sentenced Horelica to 360 months in prison for the sexual exploitation of a child and 240 months in prison for distributing child pornography. Both sentences are to run consecutively. Judge Pitman also ordered that Horelica pay $10,000 to the Victims of Trafficking Fund and be placed on supervised release for a period of five years after completing her prison term.
On August 30, 2016, Horelica pleaded guilty to one count of sexual exploitation of a child and one count of distributing child pornography. By pleading guilty, Horelica admitted that beginning in March 2016, she permitted a minor to engage in sexually explicit conduct for the purpose of producing visual depictions of the conduct, knowing the depictions would be transported in interstate and foreign commerce. Horelica also admitted that she knowingly distributed images and videos depicting child pornography.
In May 2016, Rockdale authorities arrested Horelica after child pornography images were found on a phone in Horelica’s possession. A subsequent forensics examination of seized materials, including several cell phones belonging to the defendant, revealed the presence of child pornography. Horelica has remained in custody since her arrest.
This investigation was conducted by the Texas Attorney General’s Office – Child Exploitation Unit with the assistance of the Rockdale Police Department. Assistant United States Attorney Greg Gloff prosecuted this case on behalf of the Government.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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.
Ringleader of Bank Fraud Organization Sentenced to 12 Years in PrisonRead the Press Release
PHILADELPHIA – Shawn Hilliard, 30, of the Bronx, New York, was sentenced today to 12 years in prison for his role as a ringleader of a nationwide bank fraud organization which stole more than $1.3 million from customers’ accounts. In addition to the prison term, U.S. District Court Judge C. Darnell Jones, II, ordered 3 years of supervised release, $1.3 million in restitution, and an $800 special assessment.
“Hilliard and his co-conspirators created a nationwide bank fraud organization which corrupted numerous bank employees and convinced them to provide confidential customer account information, including bank account numbers, answers to security questions, and photos of signature cards. The impact of Hilliard’s crimes on his victims is profound and far reaching, as the victims may suffer long lasting consequences of this organization’s criminal activity,” said U.S. Attorney Zane David Memeger. “Today's sentence sends a clear message to those who might commit financial fraud that it will not be tolerated, and to those in positions of trust at our financial institutions, that they must do everything in their power to protect the security of their client’s confidential information."
“HSI aggressively pursues scam artists who defraud unsuspecting victims by stealing sensitive banking information for their own financial gain. Let this case serve as a reminder to all of the importance of closely monitoring their bank accounts and reporting any unauthorized or suspicious activity within those accounts to their banks as soon as they are detected,” said Marlon Miller, special agent in charge of HSI Philadelphia. “HSI remains committed to investigating criminals who perpetrate financial crimes like Mr. Hilliard, who, in this case, defrauded hundreds of victims across the United States. Today, Mr. Hilliard has been held accountable for his actions.”
Hilliard and his co-conspirators used a network of dozens of imposters to take over the compromised bank accounts and withdraw thousands of dollars in cash. Hilliard used the information provided by the corrupt bank employees to defeat the banks’ security measures. Hilliard and others then took road trips around the country to Chicago, Dallas, Miami, and elsewhere withdrawing funds from the compromised accounts. Hilliard and his co-conspirators employed drivers and handlers to transport the imposters from bank to bank and collect the stolen funds.
To date, ten members of the organization including two bank employees have pleaded guilty in federal court. Numerous other members of the organization have pleaded guilty in state court around the country.
The case was investigated jointly by the Department of Homeland Security, Homeland Security Investigations, the United States Secret Service, and the New Jersey Attorney General’s Office with assistance from the Philadelphia Police. It is being prosecuted by Assistant United States Attorney Robert Livermore.
Randolph Man Convicted by Jury of Defrauding DreamWorks by Falsely Claiming he Created Kung Fu PandaRead the Press Release
BOSTON – A Randolph man was convicted late today of wire fraud and perjury charges in connection with a scheme to defraud DreamWorks Animation SKG, Inc., by falsely claiming that the company stole from him the characters and story for its animated movie, Kung Fu Panda.
Jayme Gordon, 51, was convicted today by a federal juryon four counts of wire fraud and three counts of perjury. U.S. District Court Chief Judge Patti B. Saris scheduled sentencing for March 30, 2017.
Gordon filed a lawsuit as part of a fraud scheme designed to obtain a multi-million-dollar settlement from DreamWorks. To further his fraud and persuade DreamWorks to agree to a settlement, Gordon fabricated and backdated drawings of characters similar to those in Kung Fu Panda, lied repeatedly during his deposition and destroyed computer evidence.
Beyond the superficial similarities, the panda characters (pictured below) and story that Gordon created during the 1990s has very little in common with DreamWorks’ movie, Kung Fu Panda.
Gordon's Characters
DreamWorks' Po and Master Shifu
In early 2008, several months before the movie’s June 2008 release, Gordon saw a trailer for Kung Fu Panda. After seeing that trailer, Gordon revised his “Panda Power” drawings and story, which he renamed “Kung Fu Panda Power.” He made these revisions as part of his scheme, so that his work would appear to be more similar to the DreamWorks pandas he had seen in the trailer. In February 2011, Gordon filed a copyright infringement suit against DreamWorks in U.S. District Court inMassachusetts, and later that year, he proposed that DreamWorks agree to settle the suit by paying him $12 million. DreamWorks rejected that proposal, and the litigation continued for another two years.
During the course of the civil litigation, Gordon intentionally deleted relevant evidence on his computer that he was required to produce in discovery and lied during his civil deposition. Furthermore, Gordon fabricated and backdated sketches that served as support for his suit. The full nature of Gordon’s scheme came to light when DreamWorks discovered that Gordon had traced some of his panda drawings from a Disney Lion King coloring book (shown below).
1996 Disney Coloring Book
Gordon's 2000 Registration
Gordon’s other sketches, which were dated 1992 or 1993, were copied from this coloring book, which was not published until 1996, therefore demonstrating that Gordon drew these sketches after 1996 and backdated them. After DreamWorks discovered the tracing from the coloring book, Gordon agreed to dismiss his suit. By this point, however, DreamWorks had spent more than two years defending the fraudulent suit, at a cost of approximately $3 million.
At trial, Gordon testified that he had not traced his drawings from the coloring book. Instead, he claimed, Disney had copied his drawings and appeared to have based the character Timon, from the Lion King, on Gordon’s drawings.
The charge of wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and restitution. The charge of perjury provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Adam Bookbinder and Amy Harman Burkart of Ortiz’s Cybercrime Unit. The U.S. Attorney’s Office and FBI would like to thank DreamWorks for its assistance during the investigation of this case.
Prince George’s County Felon Pleads Guilty to Federal Robbery and Firearms ChargesRead the Press Release
Greenbelt, Maryland – Derrick Rondell Battle, age 43, of Bladensburg, Maryland, pleaded guilty today to armed commercial robbery, using and brandishing a firearm during a crime of violence and being a felon in possession of a firearm, related to three robberies he committed in September 2015.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Henry P. Stawinski of the Prince George’s County Police Department.
According to his plea agreement, Battle committed three armed robberies between September 21 and September 25, 2015. In each robbery Battle wore a mask and was armed with a black semi-automatic handgun, which he brandished at store employees.
Specifically, Battle robbed: a pharmacy in the 6400 block of Landover Road in Landover, Maryland on September 21, 2015, stealing $200; a discount store in the 6500 block of Annapolis Road in Landover Hills, Maryland on September 24, 2015, stealing $1,200; and a gas station in the 5800 block of Annapolis Road in Cheverly, Maryland, stealing $200.
As Battle fled the gas station, a strong wind blew the stolen money out of the bag and Battle stopped to collect the money. Responding police officers saw Battle in a nearby ravine and he was apprehended after a brief chase. Police officers recovered cash from Battle and within feet of where he was apprehended recovered the gun used in the robbery, additional cash and the jacket Battle wore during the robbery.
The gun was a .45 caliber semi-automatic handgun loaded with six .45 caliber rounds of ammunition. The total cash recovered was approximately $1,200.
Battle was prohibited from possessing a firearm or ammunition as a result of previous felony convictions.
Battle and the government have agreed that if the Court accepts the plea agreement Battle will be sentenced to 198 months in prison. U.S. District Judge Theodore D. Chuang has scheduled sentencing for January 19, 2017 at 2:00 p.m.
United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Menaka Kalaskar and Bryan E. Foreman, who are prosecuting the case.
President of Florida-Based Financial Firm Guilty of Money Laundering in $179 Million Sham Loan SchemeRead the Press Release
CHICAGO — The president of a Florida-based financial firm has pleaded guilty to a money laundering charge in connection with the sale of $179 million in sham loans to a Milwaukee investment company.
TIMOTHY G. FISHER was the president and chief operating officer of First Farmers Financial LLC when the company sold 26 non-existent loans to a Milwaukee investment firm for $179 million. The company submitted documents to the Milwaukee investment firm that falsely created the appearance that the loans had been issued to borrowers in Florida and Georgia and were guaranteed in part by the federal government. In fact, the sham loans, which purportedly had principal amounts ranging from $2.5 million to $10 million, did not exist. The Milwaukee firm, which purchased the loans as an investment vehicle for its clients, which included community banks, retirement plans, municipalities, and subdivisions in Illinois and elsewhere, suffered a loss of $179 million.
Fisher, 39, of Pasadena, Calif., pleaded guilty on Thursday to one count of money laundering. The conviction carries a maximum sentence of ten years in prison and a maximum fine of $900,000. U.S. District Judge Charles P. Kocoras set sentencing for May 4, 2017, at 9:45 a.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Jeffrey A. Monhart, Regional Director of the Chicago Regional Office of the U.S. Department of Labor, Employee Benefits Security Administration.
According to his plea agreement, Fisher created fictitious financial statements that were sent to the Milwaukee company. After receiving money from the Milwaukee firm, Fisher unlawfully engaged in monetary transactions with a portion of the fraudulently obtained funds, including a wire transfer of $450,000 of scheme proceeds. Fisher caused these proceeds to be transferred from First Farmers’ account in Florida to his personal bank account in California. He then transferred these funds to the bank account belonging to a business in Nevada in connection with an investment in that business.
First Farmers’ chief executive officer, NIKESH A. PATEL, has also been charged in connection with the fraud on the Milwaukee investment business. Patel allegedly submitted false statements to the U.S. Department of Agriculture to obtain certification in a USDA program that guarantees a percentage of loans issued to borrowers who improve the economic and environmental climate in rural communities. First Farmers, which has offices in Florida, Georgia and California, obtained USDA certification after Patel submitted the false statements about the company’s assets and officers, according to his indictment returned last year.
Patel, of Windermere, Fla., has pleaded not guilty to five counts of wire fraud. His next court appearance before Judge Kocoras is set for Dec. 6, 2016, at 9:45 a.m.
The government is represented by Assistant U.S. Attorneys Patrick King and Rick Young.
Palm Harbor Oncologist Convicted of Buying Unapproved Cancer Medications from Foreign Sources and Defrauding MedicareRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury today found D. Anda Norbergs (61, Palm Harbor) guilty of 17 counts of receipt and delivery of misbranded drugs, 12 counts of smuggling goods into the United States, 11 counts of health care fraud, and 5 counts of mail fraud. She faces a maximum penalty of 20 years in federal prison for each mail fraud and smuggling offense, 10 years’ imprisonment for each health care fraud count, and 3 years for each count of receipt and delivery of misbranded drugs. Her sentencing hearing is scheduled for February 16, 2017.
Norbergs was originally indicted on May 28, 2015. A second superseding indictment was returned on July 21, 2016.
According to testimony and evidence presented at trial, Norbergs, a licensed physician in Florida, was the head doctor, owner, and operator of East Lake Oncology (“ELO”), a cancer treatment clinic located in Palm Harbor. Beginning in at least May 2009, she ordered, and directed others at ELO to order, drugs from foreign, unlicensed distributors, including Quality Specialty Products (“QSP”). The drugs sold to ELO by QSP and other foreign, unlicensed distributors were not FDA-approved. In fact, QSP had reportedly sold counterfeit versions of a chemotherapy medication that did not have the key ingredient in the drug. Norbergs learned of this news from other sources yet continued to have QSP drugs administered to patients. When QSP shut down, Norbergs switched to buying drugs from another foreign, unlicensed distributor. Many of the drugs were shipped directly to ELO from a location outside the United States, usually from the United Kingdom. The packaging and documents shipped with the drugs showed that they were manufactured and packaged for distribution in foreign countries, such as Turkey, India, and Germany. Additionally, some of the packaging for the drugs was in foreign languages, without any English translation.
Unbeknownst to patients, these misbranded drugs were then administered at ELO. After administering these drugs to patients, ELO submitted claims for reimbursement to Medicare. In submitting those claims, Norbergs falsely represented that the FDA-approved versions of the drugs had been administered, when she knew that unapproved and misbranded versions had been given to patients. In so doing, Norbergs intended to generate profits from the difference between the Medicare reimbursement rates for the FDA-approved drugs and the discounted prices of the misbranded versions of those drugs purchased from foreign distributors.
This case was investigated by U.S. Department of Health and Human Services – Office of Inspector General and the U.S. Food and Drug Administration. It is being prosecuted by Assistant United States Attorneys Adam M. Saltzman and Jay Trezevant.