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18 November 2016
Bangor Man Pleads Guilty to Child Pornography ChargesRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Ernest R. Cook, 58, of Bangor, pleaded guilty today in U.S. District Court to possessing child pornography and using the internet intending to view child pornography. Cook was indicted for those crimes in November 2016.
Court records reveal that on December 21, 2014, the Waldo County Sheriff’s Office received information that the defendant had images of child pornography on his computer. The sheriff’s office executed a search warrant and seized the defendant’s computer and a flash drive. A forensic examination by the Maine State Police Computer Crimes Unit (MSPCCU) revealed that the defendant used his computer to search for child pornography on the internet and saved those images to the flash drive.
Cook faces up to 20 years in prison and a $250,000 fine on each of the two counts. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Waldo County Sheriff’s Office, the MSPCCU, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Baltimore Woman Indicted for Fraud Schemes in Which She Allegedly Returns Stolen Merchandise for a RefundRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Marie Joy Tanamor-Steffan, a/k/a Marie Joy Steffan-Tanamor and Marie Joy Acibo Tanamore, age 42, of Baltimore, for wire fraud and false use of a passport in connection with schemes to defraud two retail chains. The indictment was returned on November 16 and unsealed today upon her arrest.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Richard Ingram of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Special Agent in Charge Brian J. Ebert of the United States Secret Service - Washington Field Office.
The eight-count indictment alleges that Tanamor-Steffan defrauded a retail lingerie chain by shoplifting items from stores in Maryland, Virginia, and other states. The indictment alleges that Tanamor-Steffan then exchanged the shoplifted items at another store for items costing slightly more in total. The lingerie store allowed customers who did not have a receipt to exchange or return merchandise for store credit. Customers were required to provide a driver’s license, state identification card, or passport number, which was entered into the store’s computer system. The store limited the amount a customer could receive in non-receipted exchanges/returns in a 90-day period. Tanamor-Steffan presented a Philippine passport as her identification, but allegedly altered the passport number for each exchange to avoid triggering the store limit. Tanamor-Steffan paid the additional amount due with her debit card and received a receipt for the transaction. According to the indictment, Tanamor-Steffan then returned the items, with the refund being credited to the debit card she used during the exchange.
The indictment further alleges that Tanamor-Steffan conducted a similar scheme targeting a home improvement store. According to the indictment, Tanamor-Steffan would go to the home improvement store with a receipt for merchandise, but without the merchandise. The indictment alleges she would select the items on the receipt from inventory in the store, then take those items to customer service and “return” the items she had just selected but not purchased, using the receipt she brought to the store with her. The refund would be credited to Tanamor-Steffan’s bank account.
The indictment seeks the forfeiture of at least $61,322.42, alleged to be the proceeds of the fraud schemes.
If convicted, Tanamor-Steffan faces a maximum sentence of 20 years in prison for each of seven counts of wire fraud, and a maximum of 10 years in prison for passport fraud. Tanamor-Steffan had an initial appearance in U.S. District Court in Baltimore today and was ordered to be detained, pending a detention hearing scheduled for November 21, 2016 at 2:30.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the Department of State’s Diplomatic Security Service, United States Secret Service – Baltimore Field Office and Washington Field Office, and National Capitol Region Fraud Task Force for their work in the investigation and thanked HSI-Baltimore for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine and Special Assistant United States Attorney Brian Fish, on detail from the U.S. Department of Homeland Security, who are prosecuting the case.
Attorney General Loretta E. Lynch Releases Video Statement on Hate Crimes in the United StatesRead the Press Release
Attorney General Loretta E. Lynch released a video statement today on the FBI’s newly announced 2015 hate crime statistics as well as on recent media reports of alleged hate crimes and harassment around the country. The statement reminds individuals to report these incidents to both local law enforcement and the Justice Department in order to ensure that career investigators and prosecutors are able to enforce hate crime statutes at the local, state and federal level.
The video can be viewed at here, and a transcript of the video is below:
“Earlier this week, the FBI released its statistics on hate crimes committed in 2015. These numbers should be deeply sobering for all Americans. Among other alarming trends, the report showed a 67 percent increase in hate crimes committed against Muslim Americans. It also showed increases in the number of hate crimes committed against Jewish people, African Americans, and LGBT individuals. Overall, the number of reported hate crimes increased six percent – a number that does not account for the many hate crimes that may go unreported out of shame or fear.
“Beyond these 2015 statistics, I know that many Americans are concerned by a spate of recent news reports about alleged hate crimes and harassment. Some of these incidents have happened in schools. Others have targeted houses of worship. And some have singled out individuals for attacks and intimidation. The FBI is assessing, in conjunction with federal prosecutors, whether particular incidents constitute violations of federal law. We need you to continue to report these incidents to local law enforcement, as well as the Justice Department, so that our career investigators and prosecutors can take action to defend your rights. You can find information about federal hate crimes laws – and other civil rights laws that the department enforces, including protections for students in schools – on our Civil Rights Division’s website. Our site also contains resources for communities working to prevent and respond to hate crimes, as well.
“Last month marked the seventh anniversary of one of those laws: the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. This landmark statute was named for two men who were killed for the most un-American of reasons – because they were different from their attackers – Matthew Shepard in his sexual orientation, and James Byrd Jr. in his race. The law that bears their names significantly expanded our ability to combat hate crimes by adding new federal protections against crimes based on one’s gender identity, sexual orientation, gender, or disability status – protections that we have worked tirelessly to uphold in the last seven years.
“But despite the tremendous progress we have made, we cannot lose sight of how much remains to be done. Nearly two decades after Matthew Shepard and James Byrd Jr. were brutally murdered simply for being who they were, we still have a long way to go to ensure that every American can live free from the fear of violence or harassment based what they look like, how they worship, or whom they love.
“That work is not just about enforcing the law. It’s about staying true to our highest ideals and most cherished principles. It’s about making sure that all Americans receive the protection of the law. And it’s about giving real meaning to our shared belief that all people are created equal.
“Put simply, this work is the right – and just – thing to do. And I want the American people to know that as long as that work is necessary, the Department of Justice will continue to carry it forward. We will continue to enforce our nation’s hate crimes laws to the fullest extent possible. We will continue to uphold our conviction that all men and women deserve to lead lives of safety and dignity. And we will continue to champion the values of diversity and inclusion that have always been the bedrock of our nation’s progress, and that point the way to a brighter future. Thank you.”
Arlington County Sheriff’s Office Agrees to Settle ADA ClaimRead the Press Release
ALEXANDRIA, Va. – Today the U.S. Attorney’s Office announced a $250,000 settlement agreement under the Americans with Disabilities Act (ADA) with the Arlington County Sheriff’s Office (ACSO) that it failed to provide appropriate auxiliary aids and services to an individual who is deaf.
The U.S. Attorney’s Office’s investigation began when it was made aware of allegations that during a 40-day incarceration at the Arlington County Detention Facility (ACDF), the ACSO, which operates ACDF, violated the ADA by failing to provide appropriate auxiliary aids and services, including sign language interpreter services, to a former detainee who is deaf during complex communications with the ACDF’s staff and its medical contractor. Further, the complainant, who is unable to read and write in English, alleged that the ACDF’s staff failed to furnish him with a telecommunication device that would ensure that he could communicate with individuals outside the detention facility, including his counsel.
“People who are deaf or hard of hearing must be able to communicate clearly with law enforcement officials,” said Tracy Doherty-McCormick, First Assistant U.S. Attorney for the Eastern District of Virginia. “Through this settlement agreement, the Arlington County Sheriff has taken important steps to ensure that the operations of the Arlington County Detention Facility are in compliance with the Americans with Disabilities Act.”
Under the settlement, the ACSO will pay $250,000 to the aggrieved individual. The settlement agreement also requires the ACSO to take remedial steps to bring itself into compliance with the ADA, including the appointment of an ADA Coordinator who is familiar with the ADA’s requirements; providing ADA training to its staff; adopting specific policies and procedures to ensure that auxiliary aids and services are provided promptly to individuals who are deaf or hard of hearing; procuring telecommunication devices usable by individuals who are deaf including videophones; providing hearing aid and cochlear implant processor batteries in the detention facility; ensuring that the ACSO responds promptly to disability related needs of its inmates; and adopting other policies consistent with the ADA. Significantly, the Arlington County Sheriff took several steps that improve the ADA compliance of the ACDF even before finalizing the settlement agreement.
This matter was handled by Assistant U.S. Attorney Steven Gordon, who is the Civil Rights Enforcement Coordinator for the U.S. Attorney’s Office.
The Department of Justice has a number of publications available to assist law enforcement agencies in complying with the ADA on its web site, including “Communicating with People Who Are Deaf or Hard of Hearing: ADA Guide for Law Enforcement Officers,” at http://www.ada.gov/lawenfcomm.pdf. For more information on the ADA and to access this publication, visit http://www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD).
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae.
Alexandria Man Sentenced to 17 Years for Production of Child PornographyRead the Press Release
ALEXANDRIA, Va. – Lucas Aronson, 31, of Alexandria, 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. Aronson was also ordered to serve a lifetime of supervised release, register as a sex offender upon release from prison, and to pay a total of $20,000 in restitution to his victims.
Aronson pleaded guilty on August 23. 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 an adult male engaged in sexually explicit conduct with a toddler-aged female on a chat website.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorney Jay V. Prabhu and Trial Attorney Lauren Britsch of the U.S. Department of Justice’s Child Exploitation and Obscenity Section (CEOS) 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.
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. 1:16-cr-138.
Alaska Inmate Sentenced for Identity Theft and Filing False Income Tax ReturnsRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Earl Worthy, 41, was sentenced to 70 months in prison for his role in a fraudulent tax refund scheme. The court also ordered Worthy to pay $159,628 in restitution to the IRS. Worthy pleaded guilty on May 9, 2016, to conspiracy to defraud the government, mail fraud, and aggravated identity theft. Worthy’s co-defendant, Tammy Jackson, was previously sentenced to five years of probation for her role in the conspiracy.
While an inmate at the Fairbanks Correctional Center, Worthy collected the names and social security numbers of individuals, many of whom were inmates. Between May 4, 2009, and Sept. 21, 2012, Worthy conspired with at least five others, chief among them Tammy Jackson, to use these identities to prepare and file false federal income tax returns with the purpose of obtaining a refund.
In some instances, the names and personal information used to file the false returns was obtained without permission. At other times, Worthy did obtain permission to use an individual’s name and information when he filed for the false tax refunds. Using the names and SSN’s of the various individuals, Worthy and Jackson prepared false individual income tax returns claiming false wages and withholding amounts listed on the tax returns for which there were no Forms W-2 issued. Worthy directed Jackson to use a template that listed amounts for wages, tax withholding, tax refund and other amounts that were essential to complete and file the tax return. Each return claimed that the taxpayer was owed thousands of dollars in refunds to which they were not entitled. In most instances, Worthy and Jackson forged the individuals' signatures on the tax returns.
Worthy and Jackson submitted the false individual income tax returns in paper. The tax returns were submitted using the addresses of the Fairbanks Correctional Center (FCC) and other addresses most of which were associated with Tammy Jackson. Many of the Treasury checks were mailed to the FCC. In other instances, Treasury checks were mailed to addresses associated with Tammy Jackson. Worthy directed Jackson to cash the fraudulent refund checks. Worthy and Jackson obtained signed Powers of Attorney to allow the cashing of the checks. At other times, the refunds for the false returns were deposited directly into a bank account under the control of Worthy or a co-conspirator. Worthy authorized the co-conspirators, including Jackson, to retain a portion of the money from the Treasury checks or direct deposits.
“Identity theft and tax refund fraud is a top priority for IRS Criminal Investigation. It is particularly disturbing when these crimes are carried out by those serving in a correctional facility,” stated Special Agent in Charge Darrell Waldon of IRS CI. “Alaska has had a recent string of refund schemes perpetrated by prisoners.”
"The Department of Corrections is dedicated to public safety and will always respect the rights and dignity of victims of crime. The successful investigation by DOC staff and our law enforcement partners which led to Mr. Worthy's conviction and sentencing shows our commitment in making sure laws are not broken inside in our institutions," stated Dean Williams, Commissioner, Alaska Department of Corrections.
The case was prosecuted by Assistant U.S. Attorney Steven Skrocki of the District of Alaska. The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI), with the assistance of the State of Alaska Department of Corrections. For more information on ways to protect against identity theft and what to do if victimized by this crime, visit www.irs.gov.
Aiken Man Pleads Guilty to Investor FraudRead the Press Release
Contact Person: Winston Holliday (803) 929-3000
Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Arthur Vann, age 65, of Aiken, South Carolina, has entered a guilty plea in federal court in Columbia to Conspiracy, a violation of 18 U.S.C. § 371. United States District Judge J. Michelle Childs, of Columbia, accepted the guilty plea and will sentence Vann at a later date.
Evidence presented at the change of plea hearing established that Vann had an interest in various offshore bank accounts and companies, primarily located in the Caribbean. As a financial adviser, he directed a number of clients to invest in a particular fund focused on the Cayman Islands. When money was transferred for this purpose, Vann diverted some of it into accounts he controlled and spent it for his own benefit. When confronted by a number of investors, he sent them fake statements purporting to reflect the investments made. The amount of loss was $1.4 million.
Ms. Drake stated the maximum penalty for Conspiracy is imprisonment for five years and/or a fine of $250,000.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney Winston David Holliday, Jr. of the Columbia office is prosecuting the case.
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Accountant Pleads Guilty to Embezzling more than $1 MillionRead the Press Release
DAYTON – Deborah Yosick, 60, currently of Davenport, Florida, pleaded guilty in U.S. District Court to embezzling more than $1 million. She pleaded guilty to one count each of wire fraud and income tax evasion.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division, announced the plea entered into yesterday before U.S. Magistrate Judge Sharon L. Ovington.
According to court documents, Yosick embezzled money from her employer, Donald C. Wright Investments, LLC and its sister company Don Wright Realty, LLC. Don Wright’s businesses are family-owned and are based in Centerville, Ohio. Don Wright provided various commercial, industrial, and residential services in the Dayton, Ohio-area.
Between approximately 1985 and October 2015, Yosick was Don Wright's accountant and was principally responsible for handing its accounts payables and accounts receivables, including making journal entries relating to receivables, crediting tenant accounts as rents were received and preparing deposit slips and making deposits on behalf of Don Wright. Yosick was personally responsible for depositing rental receipts (whether they were cash or check) into the appropriate Don Wright bank account.
Between 2010 and approximately October 2015, Yosick devised a scheme to defraud and embezzle money from Don Wright by using rental payments to pay her personal American Express bill, by initiating ACH transfers from a Don Wright bank account. She used a portion of the cash she embezzled to purchase money orders from supermarkets, Wal-Mart and post offices and use the money orders to pay her personal American Express credit card bills.
Also, between March 2013 and approximately October 2015, Yosick embezzled funds from Don Wright by causing approximately 70 electronic transfers (ACH payments) from a company bank account to American Express in order to pay her personal credit card bill.
In total, between 2010 and approximately October 2015, Yosick embezzled $1,098,778.23 from Don Wright.
Additionally, Yosick committed income tax evasion by filing a false income tax return for the 2014 income tax year by underreporting her taxable income by approximately $303,808, which resulted in tax due and owing of approximately $94,601, which represented the embezzled funds from Don Wright.
In total, Yosick attempted to evade paying $255,571 in federal income taxes to the IRS for the 2010, 2011, 2012, 2013 and 2014 income tax years.
Yosick agreed to pay restitution to Don Wright Realty LLC in the amount of $1,098,778.23 and to the Internal Revenue Service (IRS) in the amount of $255,571.
Wire fraud is punishable by up to 20 years imprisonment, and income tax evasion is punishable by up to 5 years imprisonment.
“Tax evasion and embezzlement schemes of this magnitude and with this degree of trickery, dishonesty and deceit, deserves to be punished,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The IRS, FBI, and U.S. Attorney’s Office remain determined and vigilant in ferreting out such schemes to cheat the honest taxpayers.”
U.S. Attorney Glassman commended the cooperative law enforcement investigation, as well as Assistant United States Attorney Alex R. Sistla, who is prosecuting the case.
17 November 2016
Wasilla Man Indicted by Federal Grand Jury for Threatening Planned ParenthoodRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Wasilla man was indicted by a federal grand jury in Anchorage for using a telephone to make a threat to damage and destroy a building by means of an explosive.
Robert Joseph Klima, 52, of Wasilla, Alaska, is the sole defendant named in the one-count indictment.
According to court documents, on or about Nov. 6, 2016, Klima left three threatening voicemail messages for Planned Parenthood. In the first voicemail message, Klima stated that if Planned Parenthood performed an abortion for another individual, Klima would “treat you just as a murderer who murdered my child.” Klima also stated, “I can guarantee you I know what to do.” In the second voicemail message, Klima instructed Planned Parenthood to call him back to “avoid any kind of unpleasantries” that may result if an abortion was performed for that other individual. In the third voicemail message, Klima told Planned Parenthood “I got a message today and apparently there is an RPG trained on your position. I suggest not being open tomorrow.” On the same day, Klima texted another individual that “I have absolutely no problem killing someone who killed my child,” “I can and will put a bullet right through their forehead and go ahead and have coffee afterwards,” and “I don’t even care if you call the police to try and stop me because it won’t be able to. I’m going to kill the person who murdered my child and that’s that.”
Assistant U.S. Attorney Yvonne Lamoureux, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of up to 10 years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The FBI conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Warrington Man Charged with Illegal ReentryRead the Press Release
Cristhian Guerrero-Alvarez, a/k/a “Raul Hernandez,” of Warrington, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about October 18, 2016, Guerrero-Alvarez, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about August 18, 2008, February 24, 2011, March 28, 2011, April 3, 2011, April 15, 2011, July 8, 2015, January 27, 2016, and June 15, 2016.
If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Sean P. McDonnell.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Wallingford Woman Admits Distributing Heroin to Overdose VictimRead 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 BRITTANY ESPOSITO, 27, of Wallingford, pleaded guilty today before Senior U.S. District Judge Alfred V. Covello in Hartford to one count of distribution of heroin. The charge 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 May 14, 2016, Old Saybrook Police and emergency medical personnel responded to a report of a suspected overdose at an apartment on Main Street in Old Saybrook. The victim, a 26-year-old male, was pronounced deceased at the scene. Investigators seized the victim’s iPhone, one empty wax paper fold and several syringes.
The investigation, which has included the analysis of numerous text messages, revealed that ESPOSITO purchased heroin for the victim on credit and then provided the heroin to the victim on May 13, 2016.
ESPOSITO was arrested on June 16, 2016.
Judge Covello scheduled sentencing for February 9, 2017, at which time ESPOSITO faces a maximum term of imprisonment of 20 years.
ESPOSITO is released on bond pending sentencing.
This matter is being investigated by the DEA’s New Haven Tactical Diversion Squad and the Old Saybrook Police Department, with the support and assistance of the Middlesex State’s Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
Uncasville Man Pleads Guilty to Sex Trafficking of a Minor, Distributing Heroin that Led to Her OverdoseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RAMON GOMEZ, also known as “B.I.,” 40, of Uncasville, pleaded guilty today in New Haven federal court to sex trafficking of a minor and heroin distribution offenses.
According to court documents and statements made in court, in the early morning hours of May 29, 2016, members of the Groton Police Department and emergency services personnel responded to a Groton motel room on the report of a suspected drug overdose. The victim, a 17-year-old female, was administered two doses of Narcan (Naloxone), which were deemed unsuccessful, before she was transported to the hospital and died later that morning.
The investigation revealed that GOMEZ, who knew the victim was under the age of 18, brought the victim to the motel to engage in prostitution. On the morning of May 28, 2016, GOMEZ sold a quantity of heroin to another individual who then distributed the heroin to the victim.
GOMEZ was arrested on state charges on June 1, 2016.
“Two of our office’s highest priorities are aimed at protecting our youth: Rooting out child sex trafficking and stemming the opioid abuse and overdose epidemic,” said U.S. Attorney Daly. “This case tragically and maddeningly combines the two. I thank our federal partners in these efforts, notably the DEA and HSI, and the Groton Police Department and Regional Community Enhancement Task Force for their investigative work in this matter. All are working tirelessly to save the most vulnerable among us from abuse and exploitation.”
GOMEZ pleaded guilty to one count of sex trafficking of a minor, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, and one count of possession with intent to distribute heroin, an offense that carries a maximum term of imprisonment of 20 years.
GOMEZ is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on February 10, 2017. He has been detained since his arrest.
The matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
The investigation is being conducted by the Drug Enforcement Administration, Homeland Security Investigations, the Town of Groton Police Department and the Regional Community Enhancement Task Force. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
U.S. Attorney’s Office Launches Smart on Crime InitiativeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-Acting U.S. Attorney James P. Kennedy, Jr. today officially launched the Western District of New York’s Smart on Crime Initiative.
At the direction of the Attorney General in early 2013, the Justice Department launched a comprehensive review of the criminal justice system in order to identify reforms that would ensure federal laws are enforced more fairly and—in an era of reduced budgets—more efficiently. Five goals were identified as a part of this review:
• To ensure finite resources are devoted to the most important law enforcement priorities; • To promote fairer enforcement of the laws and alleviate disparate impacts of the criminal justice system; • To ensure just punishments for low-level, nonviolent convictions; • To bolster prevention and reentry efforts to deter crime and reduce recidivism; • To strengthen protections for vulnerable populations.
Acting U.S. Attorney Kennedy stated, “To the man who only has a hammer in the toolkit, every problem looks like a nail. To those of us who have spent our legal careers working as prosecutors in the criminal justice system, the hammer, i.e., prosecuting the defendant for the most serious readily provable offense so that the longest term of imprisonment possible may be achieved, remains, in many instances, the appropriate tool of choice. Yet, increasingly, many are coming to the realization that some of the recurring problems we see may be better addressed with tools other than—or in addition to—our hammer.”
In the Buffalo and Rochester areas, Smart on Crime funding is being dedicated to two specific job readiness programs designed to enhance employment opportunities for defendants returning to the community following completion of their prison sentences. Noting that “the inability to find meaningful employment constitutes one of the largest obstacles confronting those who are released from prison,” Kennedy directed that a portion of the Smart on Crime funds be used to provide 10 individuals—five in Buffalo and five Rochester—with training and certification in asbestos removal and remediation. In addition, another 30 individuals are receiving forklift training and certification. Once trained and certified, these individuals will be better positioned to enter the workforce.
Kennedy further stated, “These previously convicted felons are literally and figuratively being given the opportunity to clean-up and raise-up their lives and our community. It’s a win-win in the sense that the individuals are benefitted by gaining skills which will afford them the opportunity to break the cycle of crime and establish themselves as productive members of society, while the community benefits by having a better trained workforce.”
Smart on Crime funding is also being dedicated to Recycle-A-Bicycle, an educational program for at-risk youth at the Matt Urban Hope Centers in Buffalo. As part of the program, students receive a donated bicycle and strip it down part-by-part to the frame. With the help of instructors, students re-assemble the bike, making modifications as they see fit. Students then then learn rules of the road, road safety, riding etiquette, hand signals, and how to plan to travel from place to place on two wheels via bike paths and bicycle infrastructure. Following completion of the course, students receive a set of lights, a lock, and helmet, and they get to keep the bicycle.
“This after-school program promotes the development of hands-on problem-solving skills and teaches kids the fundamental notion that they have the ability to fix things that are broken,” Kennedy said. “It also affords kids with an understanding of how to use tools, while promoting independence, mobility, and a healthy lifestyle.”
The programs receiving Smart on Crime funds will be monitored by Jason Flores, the Smart on Crime Coordinator for the U.S. Attorney’s Office in Buffalo.
U.S. Attorney, Justice Department announce grant awards to Western District of Louisiana agenciesRead the Press Release
SHREVEPORT/ LAFAYETTE/ALEXANDRIA/MONROE/LAKE CHARLES, La. – United States Attorney Stephanie A. Finley and the Department of Justice announced that 14 grants totaling more than $2.3 million have been awarded to agencies within the Western District of Louisiana through the Bureau of Justice Assistance (BJA).
An individual grant of $1 million was awarded to the City of Shreveport through the BJA’s Byrne Criminal Justice Innovation Program. The Planning and Implementation Grant’s goal is to improve community safety as part of a strategy to advance neighborhood revitalization. The city is required to set up a plan to reduce crime in a target neighborhood and then begin implementation during the project period.
Nine other grants totaling $534,516 were awarded to law enforcement through the BJA as part of the Edward Byrne Memorial Justice Assistance Grant. The grant is awarded to local governments to support a broad range of activities to prevent and control crime.
They include:
Alexandria: Rapides Parish Sheriff’s Office: $85,320 to fund the Metro Narcotics Task Force and provide overtime;
Bastrop: Morehouse Parish Sheriff’s Office: $12,780 to update vehicle equipment;
Bossier City: Bossier City government: $29,153 to provide overtime, education and mobile radios;
Franklin: St. Mary Parish Sheriff’s Office: $13,164 to purchase safety and training equipment;
Lafayette: Lafayette Parish Sheriff’s Office: $97,880 to support law enforcement initiatives to purchase servers, laptops and computer workstations;
Lake Charles: Calcasieu Parish Sheriff’s Office: $71,607 to purchase rescue equipment, software, radar equipment and a patrol motorcycle;
Monroe: Ouachita Parish Sheriff’s Office: $90,640 to purchase law enforcement equipment, including vehicle wireless routers and digi-ticket devices;
Natchitoches: City of Natchitoches: $13,548 to purchase surveillance equipment for the drug task force; and
Shreveport: City of Shreveport: $120,424 to purchase police patrol boats and patrol vehicles.
Three crime labs in the District have been awarded a total of $487,989 through the DNA Capacity Enhancement and Backlog Reduction Program.
The labs awarded are:
Lake Charles: Southwest Criminalistics Laboratory: $100,000 to upgrade equipment and for training;
New Iberia: Acadiana Crime Lab: $116,875 to maintain and expand employment; and
Shreveport: North Louisiana Criminalistics Laboratory: $271,114 to increase amount of cases analyzed and for training.
The 14th Judicial District Attorney’s Office in Lake Charles was named the recipient of $350,000 through the Drug Court Discretionary Grant Program. The funds are to be used to build a single jurisdiction drug court. It is also tasked with preventing recidivism through targeted treatment, vocational services and community reintegration programs.
“The coordinated federal support will provide much needed funds for our local law enforcement partners and important initiatives for our communities to develop comprehensive crime strategies,” Finley stated. “I am especially pleased to make this announcement for the Western District of Louisiana. I want to thank the members of our grant committee who spend many hours to make sure that our law enforcement community has a chance to receive these funds.”
The Office of Justice Programs (OJP) provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. The OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART). For more information on grant award programs, visit www.bja.gov.
U.S. Attorney Names New Coordinator to Human Trafficking Task Force for the Northern District of AlabamaRead the Press Release
BIRMINGHAM – The U.S. Attorney’s Office for the Northern District of Alabama has named a new coordinator for its Human Trafficking Task Force, announced U.S. Attorney Joyce White Vance.
Assistant U.S. Attorney Xavier Carter will lead the Northern District’s task force, which works with law enforcement agencies and state and local task forces to combat human trafficking.
“Human trafficking is modern day slavery,” Vance said. “It preys on the world’s most vulnerable people ? abandoned children, runaways, illegal immigrants afraid to speak out ? forcing them into prostitution or physical labor. Mr. Carter will lead our task force as it continues to coordinate with federal and state law enforcement to raise awareness of the problem and focus resources on investigating and prosecuting human trafficking crimes.”
One of the local task forces that the U.S. Attorney’s Office task force works closely with is Cullman County’s. The U.S. Department of Homeland Security, a leading federal agency in the fight against human trafficking, recently announced a partnership with Cullman County in the department’s Blue Campaign, which DHS conducts to raise awareness of human trafficking. Cullman County is only the second county in the state of Alabama to partner with DHS. Jefferson County is also a partner.
Through the partnership, Blue Campaign materials, co-branded for the county and DHS, will be posted throughout the county as part of a public awareness campaign to educate local residents on how to recognize and report potential instances of human trafficking.
“We cannot combat human trafficking alone,” said Blue Campaign Chairwoman Maria Odom, who signed the memorandum of understanding on behalf of DHS with Cullman County Chairman Kenneth Walker. “The Blue Campaign works closely with our partners across the nation to help ensure that our communities know how to recognize and report the signs of human trafficking. We are honored to be working with Cullman County to bring an end to this heinous crime.”
Cullman County Presiding District Court Judge Kim Chaney said he is “extremely pleased and proud that, through the efforts of the Cullman Human Trafficking Task Force, Cullman County has been chosen to partner with the United States Department of Homeland Security, through the Blue Campaign, to bring awareness and education about human trafficking to our county and state.”
“This partnership will allow the Cullman County Human Trafficking Task Force to access world-class resources to inform and educate area law enforcement, medical providers, attorneys, educators, business leaders and the community about human exploitation for profit,” Chaney said.
Earlier this year, the Cullman County Human Trafficking Task Force held a free public training with the DHS Blue Campaign and partnered with the Human Trafficking Task Force for the Northern District of Alabama to provide free internet safety training. This latest partnership will build on previous training in the county by spreading public awareness materials to members of the Cullman County community, to include more targeted materials to attorneys, juveniles, and members of the trucking industry in the county.
The Blue Campaign works in partnership with law enforcement, government, non-governmental and private organizations to protect the basic right of freedom and to bring those who exploit human lives to justice.
For more information, visit https://www.dhs.gov/blue-campaign, or contact Assistant U.S. Attorney Xavier Carter at (205) 244-2001.
Two defendants appear in federal court for gun crimesRead the Press Release
CHARLESTON, W.Va. – Two defendants appeared in federal court today for gun crimes, announced United States Attorney Carol Casto. Lachance D. Woodson, 28, of Charleston, was sentenced to two years and three months in federal prison for being a felon in possession of a firearm. In a separate prosecution, Denver Clifton Julious, 66, of Hilltop, pleaded guilty to being a felon in possession of a firearm.
Woodson admitted that on December 22, 2015, he possessed a Hi-Point .40 caliber pistol in Charleston. Woodson was prohibited from possessing any firearm under federal law because of a 2010 conviction in federal court in the Southern District of West Virginia for possession of a firearm after a misdemeanor conviction for domestic violence.
In a separate prosecution, Fayette County Deputy Sheriffs arrested Julious on May 6, 2016, at his home on an outstanding arrest warrant. During a search of Julious incident to the arrest, officers found a Davis Industries .22 caliber revolver in his pocket. Julious was prohibited under federal law from possessing firearms as a result of a 1988 first-degree sexual assault conviction in Fayette County Circuit Court and a 2006 felon in possession of a firearm conviction in federal court in the Southern District of West Virginia. Julious faces up to 10 years in federal prison when he is sentenced on February 9, 2017.
The Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation of Woodson. Assistant United States Attorney Monica D. Coleman is responsible for Woodson’s prosecution. United States District Judge John T. Copenhaver, Jr., imposed Woodson’s sentence.
The investigation of Julious was conducted by the Fayette County Sheriff’s Department and the West Virginia State Police Explosive Ordinance Disposal Unit. Assistant United States Attorney Joshua Hanks is in charge of the prosecution of Julious. The plea hearing for Julious was held before United States District Judge Joseph R. Goodwin.
These cases were brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
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Two Winner Men Sentenced for Criminal TrespassRead the Press Release
United States Attorney Randolph J. Seiler announced that two Winner, South Dakota, men convicted of Criminal Trespass were sentenced on November 10, 2016, by U.S. Magistrate Judge Mark A. Moreno.
Jeremy Schroeder and Kirby Kartak, both age 37, were sentenced to jointly and severely pay the Rosebud Sioux Tribe $600 in restitution, to each pay a $300 fine, to write letters of apology to the Rosebud Sioux Tribe, and to pay a special assessment to the Federal Crime Victims Fund in the amount of $5.
Schroeder and Kartak were indicted by a federal grand jury on April 13, 2016. Both pled guilty at a joint plea and sentencing hearing on November 10, 2016.
The convictions stem from an incident that occurred on December 2, 2014. Schroeder and Kartak, non-Indians, drove heavy equipment into the Oyate Whacanku Spirit Camp located near Rosebud, South Dakota, and removed approximately 30 large hay bales which were being utilized to form a windbreak at the camp. Schroeder claimed to have an ownership interest in the hay, which was harvested on a separate tract of land owned by the tribe. Schroeder had previously leased the land on which the hay was harvested.
The Spirit Camp was established on land owned in trust by the Rosebud Sioux Tribe. The Spirit Camp was designed as a cultural and spiritual camp for activities associated with tribal opposition to the construction of the TransCanada Keystone XL Pipeline. Several tipis and a sweat lodge were erected at the camp and the camp was blessed by tribal spiritual leaders.
This case was investigated by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Criminal Chief Dennis R. Holmes prosecuted the case.
Two Plead Guilty in Multimillion Dollar Internet Pharmacy CaseRead the Press Release
GAINESVILLE, FLORIDA – Edward Leonforte, 55, of Gainesville, and Larry Burstein, 69, of Alachua, Florida, have pled guilty in a multimillion dollar internet pharmacy case. On September 13, Leonforte pled guilty to conspiracy, distribution of the controlled substance codeine, and money laundering. Burstein pled guilty today to conspiracy. The guilty pleas were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Leonforte and Burstein operated multiple internet pharmacy websites from a Progress Park rental space in Alachua, Florida, and sold substantial quantities of prescription drugs without requiring customers to provide a prescription. Between 2013 and 2015 through freeworldpharmacy.com, Leonforte’s business sold more than $7.5 million in pharmaceuticals, including more than $385,000 in generic codeine in 2015 alone. On several occasions in 2012 and 2013, an undercover DEA law enforcement agent was able to order and receive hundreds of codeine pills from the freeworldpharmacy.com and medsindia.net websites without providing a prescription.
The defendants face a maximum of 20 years in prison. Leonforte’s sentencing hearing is scheduled for January 4, 2017, at 5:30 p.m. at the United States Courthouse in Gainesville. Burstein’s sentencing hearing is scheduled for February 3, 2017, at 1:30 p.m.
This case resulted from a joint investigation by the U.S. Drug Enforcement Administration and the Internal Revenue Service—Criminal Investigation, with assistance from the Gainesville Police Department, the Alachua County Sheriff's Office, the Alachua Police Department, the Columbia County Sheriff's Office, the Ocala Police Department, the Florida Department of Health, the U.S. Food and Drug Administration, and the U.S. Postal Inspection Service. Assistant United States Attorney Jason S. Beaton is prosecuting the case.
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Two New York Men Indicted for Transporting Cocaine and HeroinRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jerry Fruit, age 36, and Tykei Garner, age 33, both of New York City, were indicted on November 16, 2016, by a federal grand jury for conspiracy to distribute and possession with the intent to distribute cocaine and over 100 grams of heroin.
According to United States Attorney Bruce D. Brandler, the Pennsylvania State Police conducted a traffic stop on a car traveling on I-81 near Harrisburg on July 5, 2016. During the stop, the Pennsylvania State Police found over 100 grams of heroin, which is the equivalent of approximately 4,000 individual doses, and an unspecified amount of cocaine.
The case was investigated by the Pennsylvania State Police, the Dauphin County District Attorney’s Office and the U.S. Drug Enforcement Administration (DEA). The case is being prosecuted by Assistant United States Attorney Scott Ford.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 40 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Two Men Convicted on 31 Counts of Conspiracy, Computer Access Fraud and Wire FraudRead the Press Release
Chris Suhail Folad, 37, of Franklin, Tenn., and Khaled Nabil Abdel Fattah, 38, of Antioch, Tenn. were convicted today by a federal jury, after a 3-day trial, of conspiracy to commit computer access fraud and wire fraud as well as 19 individual counts of computer access fraud and 11 counts of wire fraud, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
According to the proof at trial, between January 2009 and March 2010, Folad and Fattah used passwords to a local company’s ATM machines to alter the denomination distribution amounts to lead the machines to believe they were dispensing $1 bills, when, in fact, the machines were dispensing $20 bills. The company, Safe Cash Systems, LLC. (Safe Cash) based in Nashville, places machines in convenience stores, bars and restaurants throughout Nashville. Safe Cash’s machines only carry $20 bills. Defendant Folad previously worked at Safe Cash as an ATM technician and knew the passwords needed to change the denomination distribution amounts.
The trial proof showed that after the denomination distribution amounts were changed, the defendants would receive 20 times more cash from the machines than the amount that was debited from their bank accounts. During a 14-month period, Folad and Fattah made over 800 withdrawals from Safe Cash ATMs, making as many as 20 ATM withdrawals in a single day. The defendants used nine bank accounts and 17 bank cards to perpetrate their fraud and stole over $600,000 from Safe Cash.
Folad and Fattah are scheduled to be sentenced on March 6, 2017, and face up to twenty years in prison.
This case was investigated by the United States Secret Service. The case is being prosecuted by Assistant United States Attorneys Henry C. Leventis and Thomas Jaworski.
Traffic Stop Leads to Seizure of $2.1 Million Worth of Narcotics; Vehicle Owner ChargedRead the Press Release
Assistant U. S. Attorney Sherri Walker Hobson (619) 961-0287
NEWS RELEASE SUMMARY – November 17, 2016
SAN DIEGO – San Ysidro resident Ricardo Lujan was charged in federal court today with a drug-related offense after an Oceanside police officer discovered millions of dollars’ worth of methamphetamine and cocaine hidden inside the floorboards, door panels, center console and elsewhere in Lujan’s vehicle.
According to a federal complaint, the Oceanside Police Officer was conducting random vehicle registration checks at 12:40 a.m. on Harbor Drive in Oceanside. While doing this he noticed a car with expired tags. The officer then saw Lujan enter the Mitsubishi Endeavor SUV and attempt to leave the area. The officer stopped the vehicle.
While talking to the officer, Lujan, the registered owner of the vehicle, appeared nervous and agreed to a search of his vehicle. A Border Patrol canine handler responded to the traffic stop to assist Oceanside Police. The dog alerted to the odor of narcotics.
Agents from the Drug Enforcement Administration, San Diego Narcotics Task Force, subsequently searched Lujan’s vehicle and found 99 packages that were vacuum sealed in plastic containers of cocaine and 58 rectangular vacuum sealed in plastic containers of methamphetamine.
The agents seized approximately 89.50 kilograms of cocaine and approximately 68.90 kilograms of methamphetamine.
The estimated wholesale of the cocaine is approximately $1.7 million dollars. The estimated wholesale value of the methamphetamine is approximately $450,000.
Lujan is scheduled to appear in federal court before U.S. Magistrate Judge Barbara Major for arraignment hearing on November 18 at 2 p.m.
DEFENDANT
Ricardo Lujan, age 44
San Ysidro, California
CHARGE
Possession with intent to distribute
Title 21, United States Code, Section 841
AGENCIES
Oceanside Police Department
Drug Enforcement Administration, San Diego Narcotics Task Force
U.S. Border Patrol, San Clemente Station
*The charges and allegations contained in a complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Texas Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a McAllen, Texas, man convicted of Failure to Register as a Sex Offender was sentenced on November 14, 2016, by U.S. District Judge Roberto A. Lange.
Dimas DeLeon, a/k/a Leo Castro, age 30, was sentenced to 23 months in custody, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
DeLeon was indicted by a federal grand jury on July 19, 2016. He pled guilty on August 29, 2016.
The conviction stemmed from an incident wherein DeLeon failed to register as a sex offender from May 1, 2016, to July 1, 2016. DeLeon had initially been convicted in federal court in Texas in 2009 of Sexual Assault of a Child and was sentenced to prison, as well as being required to register as a sex offender.
In May 2016, DeLeon moved from Texas to Pierre, South Dakota, where he resided with his brother and then girlfriend. According to the SD Division of Criminal Investigation Sex Offender Registry, DeLeon never registered either his address or his employment in the state of South Dakota. He also never notified the state of Texas that he was relocating to South Dakota.
The investigation was conducted by the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
DeLeon was immediately turned over to the custody of the U.S. Marshals Service.
Tereso Galindo Sentenced to 33 Months’ ImprisonmentRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Tereso Cazares Galindo, 38, of Michigan City, Indiana was sentenced before South Bend District Court Judge Jon E. DeGuilio for having reentered the United States after having previously been deported following a felony conviction.
Galindo was sentenced to 33 months’ imprisonment and two years of supervised release.
According to documents filed in this case, Galindo was arrested in April 2016. In or around October 2004, Galindo was deported to Mexico following a conviction for armed robbery.
This case was investigated by Homeland Security Investigations and the South Bend Police Department. The case was handled by Assistant United States Attorney Jesse M. Barrett.
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Sumner Man Pleads Guilty to Unlawfully Disposing of the City of New Hampton’s Sewage SludgeRead the Press Release
A northern Iowa man pled guilty yesterday, in federal court in Cedar Rapids, to unlawfully disposing of the City of New Hampton’s sewage sludge.
Donald James Warnke, 64, from Sumner, Iowa, was convicted of one count of unlawfully disposing of sewage sludge from a publically owned treatment works.
At the plea hearing, Warnke admitted that, on June 19, 2015, he knowingly disposed of sewage sludge from a publically owned treatment works. More specifically, Warnke dumped domestic sewage from the City of New Hampton Wastewater Treatment Plant in a field, which violated federal regulations governing the disposal of such sewage sludge.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Warnke remains free on certain conditions of release pending sentencing. Warnke faces up to three years’ imprisonment, a fine of not less than $5,000 but not more than $50,000 per day of violation, a $100 special assessment, and one year of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Tim Vavricek and Matt Cole and was investigated by the Environmental Protection Agency, Criminal Investigations Division.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-2054-LRR.
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Stockton Husband and Wife Indicted on Human Trafficking Charges Related to Forced Labor of Foreign Nationals Primarily from IndiaRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a five-count indictment today against Satish Kartan, 43, and his wife, Sharmistha Barai, 38, of Stockton, charging them with conspiracy to commit forced labor and the commission of forced labor. In addition, Kartan was charged with fraud in foreign labor contracting, and Barai was charged with benefiting from forced labor.
Acting U.S. Attorney Phillip A. Talbert and Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division announced the indictment.
According to court documents, between February 21, 2014, and October 3, 2016, Kartan and Barai hired workers from overseas to perform domestic labor in their homes in Albuquerque, New Mexico; Stockton and elsewhere in the United States. In advertisements seeking workers on the internet and India-based newspapers, the defendants made false claims regarding the wages and the duties of employment. Once the workers arrived at the defendants’ residences, Kartan and Barai forced them to work 18 hours a day with limited rest and nourishment. The defendants did not pay wages and used force, physical restraint and coercive conduct to get the workers to perform the labor and services.
The indictment alleges that Kartan and Barai struck one worker on multiple occasions, including one incident where Kartan grabbed her hands and caused them to be burned over the flames of a gas stove. Moreover, the indictment alleges that the defendants failed to pay another worker and told her that they would call the police if she tried to leave. When she was ultimately able to arrange to be picked up from the defendants’ house, Kartan refused to provide her with the access code to the gated community so that her ride could enter.
On October 21, 2016, the defendants were arrested on a criminal complaint and were released on bond with special conditions that prohibit them from hiring any nonrelatives to perform domestic services or child care work for them, and prohibit them from directly or indirectly contacting any of their prior domestic workers. Kartan and Barai are scheduled to be arraigned on November 21, 2016.
If convicted, each defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the FBI, the State Department’s Diplomatic Security Service, and the Stockton Police Department. Special Assistant U.S. Attorney Josh Sigal and Assistant U.S. Attorney Nirav Desai are prosecuting the case, with the assistance of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Eastern District of California (Sacramento) is one of six districts designated through a competitive, nationwide selection process as a Phase II ACTeam, through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security, and Labor. ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
Statement by Acting U.S. Attorney Bob Troyer Condeming Hate Crimes -- Promising Vigorous Prosecution When AppropriateRead the Press Release
DENVER – Acting U.S. Attorney Bob Troyer released the following statement condemning hate crimes today, promising vigorous prosecution when appropriate:
“Hate crimes are not just crimes perpetrated against an individual victim. They attack our entire community by spreading fear and intimidation. Hate crimes can take many forms: violence, intimidation, harassment, or vandalism of property. These are acts of cowardice, and they are serious federal crimes that we will prosecute to the fullest. The U.S. Attorney’s Office will work closely and constantly with community leaders and local, state and federal law enforcement to protect the civil rights of all individuals, regardless of their citizenship status, actual or perceived race, color, religion, national origin, sex and gender, gender identity, sexual orientation or disability. If an individual’s civil rights are attacked, this office will act.”
Stamford Man Pleads Guilty to Federal Gun ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHARLES BARNES, 34, of Stamford, pleaded guilty today in New Haven federal court to one count of possession of a firearm by a previously convicted felon.
According to court documents and statements made in court, on December 29, 2015, Stamford Police stopped a car BARNES was driving. A subsequent search of the vehicle revealed a Berretta 9 millimeter pistol loaded with 12 rounds of ammunition, which was found in the glove box. The search also revealed 16 bags of marijuana packaged for sale.
Prior to December 2015, BARNES had sustained a felony conviction for possession of marijuana with intent to sell, and two felony convictions for second degree assault. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
BARNES is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on February 10, 2017, at which time he faces a maximum term of imprisonment of 10 years.
BARNES has been detained December 29, 2015.
This matter is being investigated by the Stamford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Springfield Man Pleads Guilty to Producing Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man pleaded guilty in federal court today to producing and distributing child pornography.
Christopher Peck, 40, of Springfield, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charges contained in a Jan. 19, 2016, federal indictment.
By pleading guilty today, Peck admitted that he used two minors, identified in court documents as Jane Doe #1 and John Doe #1, to produce child pornography between Nov. 1, 2014, and Jan. 8, 2016. Peck also pleaded guilty to receiving and distributing child pornography during that time.
Co-defendant Tracy Ann Smith, 42, of Springfield, pleaded guilty on May 10, 2016, to one count of the sexual exploitation of a child and one count of receiving and distributing child pornography. Smith admitted that she used Jane Doe #1 to produce child pornography between Nov. 1, 2014, and Jan. 8, 2016. Smith also admitted that she received and distributed child pornography during that time.
Under federal statutes, Peck and Smith are each subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 50 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings for Peck and Smith have not yet been scheduled.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
South Florida Resident Sentenced to Prison for Stealing Housing and Food Assistance Benefits and Committing Aggravated Identity TheftRead the Press Release
A South Florida resident was sentenced to three years in prison and ordered to pay $187,997 in restitution for stealing housing and food assistance benefits and committing aggravated identity theft.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Nadine Gurley, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of Inspector General (HUD-OIG), Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA-OIG), Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ann Deibert, Chief Executive Officer, Broward County Housing Authority (BCHA), made the announcement.
Jamye Sharne Barnes, a/k/a Jamye Barnes Sawyers, 36, of South Florida, previously pled guilty to two counts of theft of government money for taking HUD funded Section 8 program assistance and USDA Supplemental Nutrition Assistance Program benefits to which she was not entitled, in violation of Title 18, United States Code, Section 641; and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Barnes was sentenced to 36 months in prison, to be followed by two years of supervised release, and was ordered to pay restitution in the amount of $187,997.
According to court documents, on May 17, 2011, Barnes applied to receive Section 8 housing benefits in Broward County, Florida through the Broward County Housing Authority (BCHA), which administers United States Department of Housing & Urban Development (HUD) Section 8 housing benefits. Barnes was approved by BCHA to live at a house in Miramar, Florida, and HUD, through BCHA, paid $1,154 in rent per month from July 26, 2011 through November 8, 2012 for this residence on behalf of Barnes. From May 2012 up to 2016, Barnes received a total of $38,000 in benefits. Throughout that period, Barnes filed annual applications certifying under oath information relating to her income, employment, and bank accounts held, but failed to disclose income that would have disqualified her from receiving HUD Section 8 benefits.
On or about December 16, 2008, Barnes applied to receive United States Department of Agriculture (USDA) Supplemental Nutrition Assistance Program (SNAP) benefits, formerly known as food stamps. Barnes was approved by the USDA, and from May 2012 through 2016, she received benefits ranging from $313 to $526 per month based upon the information she provided to the Florida Department of Children and Families (DCF). Throughout that period, Barnes filed annual applications certifying under oath her income, employment, and bank account records, but failed to disclose income that would have disqualified her from receiving USDA SNAP benefits.
From May 2012 through 2016, Barnes worked at Loyalty Financial, Inc., a tax preparation business in the Southern District of Florida. Barnes was the authorized signee of several bank accounts for Loyalty Financial, and Barnes used the bank accounts to pay the company’s employees and for her personal benefits. In 2012, over 30 fraudulently obtained United States Treasury income tax refund checks were deposited into one of Loyalty Financial's bank accounts. The total amount of the checks deposited was $188,746.70. Barnes personally withdrew at least $127,327 from the account.
Mr. Ferrer commended the investigative efforts of HUD-OIG, USDA-OIG, IRS-CI, and the BCHA. The case was prosecuted by Assistant U.S. Attorney Cary O. Aronovitz.
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.
Socorro Man Pleads Guilty to Federal Meth Trafficking ChargesRead the Press Release
ALBUQUERQUE – Carlos Tafoya, Jr., 35, of Socorro, N.M., pled guilty today in federal court in Las Cruces, N.M., to methamphetamine trafficking charges. Under the terms of his plea agreement, Tafoya will be sentenced within the range of 12 to 13 years in prison followed by a term of supervised release to be determined by the court.
Tafoya was one of 34 individuals charged in December 2015, with federal and tribal drug offenses as the result of an 18-month multi-agency investigation led by the DEA and BIA into methamphetamine trafficking on the Mescalero Apache Reservation. Eighteen defendants, including five members of the Mescalero Apache Tribe and 13 non-Natives were charged in six federal indictments and a federal criminal complaint. Sixteen other members of the Mescalero Apache Tribe were charged in tribal criminal complaints approved by the Mescalero Apache Tribal Court.
The investigation leading to the federal and tribal charges was initiated in May 2014, in response to an increase in violent crime on the Mescalero Apache Reservation perpetrated by methamphetamine users. The investigation initially targeted a drug trafficking organization that was allegedly distributing methamphetamine within the Reservation, and later expanded to include two other drug trafficking organizations in southeastern New Mexico that allegedly served as sources of supply for the methamphetamine distributed within the Reservation. In Aug. 2014, the investigation was designated as part of the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) program, which combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation is one of the first OCDETF investigations to utilize electronic surveillance (wiretaps) in Indian Country. More than ten kilograms of methamphetamine were seized during the course of the investigation.
Tafoya was arrested on Nov. 20, 2015, on an indictment charging him and seven other non-Natives with methamphetamine trafficking and money laundering offenses. The indictment charged Tafoya with participation in a methamphetamine trafficking conspiracy and possession of methamphetamine with intent to distribute.
The indictment against Tafoya was superseded on Sept. 21, 2016, and charged Tafoya with conspiracy to distribute methamphetamine from July 1, 2015 through Nov. 13, 2015; distribution of methamphetamine on Oct. 15, 2015; possession of methamphetamine with intent to distribute on Nov. 13, 2015; and possession of a firearm in relation to a drug trafficking crime on Nov. 13, 2015. According to the superseding indictment, all offenses took place in Socorro County, N.M. The superseding indictment also included forfeiture provisions requiring Tafoya to forfeit $24,500 to the United States.
During today’s proceedings, Tafoya pled guilty to distribution of methamphetamine and possession of methamphetamine. In entering the guilty plea, Tafoya admitted that on Oct. 15, 2016, he sold 364.2 grams of methamphetamine to an undercover law enforcement agent and on Nov. 13, 2015, he possessed approximately 1.2 kilograms of methamphetamine which he intended to sell. Tafoya further admitted that he was on supervised release for a prior conviction when he committed the methamphetamine trafficking offenses on Oct. 15, 2015 and Nov. 13, 2015. Tafoya remains in custody pending a sentencing hearing which has yet to be scheduled.
Sixteen of the 18 federal defendants have entered guilty pleas. The two remaining federal defendants have entered not guilty pleas to the charges against them. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The federal and tribal cases were investigated by the Las Cruces office of the DEA, District IV of the BIA’s Office of Justice Services (Mescalero Agency), BIA’s Division of Drug Enforcement, Mescalero Tribal Police Department, Hatch Police Department, FBI and Lea County Drug Task Force. Assistant U.S. Attorneys Terri J. Abernathy and Clara Cobos of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the federal cases, and Mescalero Tribal Prosecutor Melissa Chavez is prosecuting the tribal cases.
SoCal Woman Who Admitted Kidnapping Her Two Children to Keep Them from Their Father Sentenced to 13 Months in Federal PrisonRead the Press Release
LOS ANGELES – A Los Angeles-area woman who brought her two children to Mexico to keep them from their father was sentenced today to 13 months in prison in a federal kidnapping case.
Faye Hsin-I Ku, 42, of Lakewood, was sentenced this morning by United States District Judge John A. Kronstadt.
Ku pleaded guilty in September to two counts of international parental kidnapping.
When she pleaded guilty, Ku admitted that on August 29, 2015, she took her two children – who were 15 and 9 at the time – into Mexico through the San Ysidro Port of Entry. “At the time, Ms. Ku had the intent to obstruct the lawful exercise of parental rights” of the father, Ku admitted when she pleaded guilty.
After bringing the children to Mexico, Ku brought the children to Sinaloa. The FBI’s Legal Attaché in Mexico City pursued a series of leads to identify their location and passed information to Mexican officials, who took prompt action, assuring the safety of the children. The children were reunited with their father on February 12.
“This defendant sought to deprive her children’s father of his court-sanctioned parental rights by fleeing the United States,” said United States Attorney Eileen M. Decker. “She abducted her children, abused their emotional attachment to her, brought them to a dangerous part of Mexico and had a destructive impact on the entire family.”
FBI officials in Seattle and Mexico City coordinated the deportation of Ku with Mexican authorities. On February 12, Mexican officers accompanied Ku to Los Angeles International Airport, where she was taken into federal custody.
“Bringing the children home safely was only possible due to extraordinary partnerships with law enforcement agencies across multiple states and in Mexico,” said FBI Special Agent in Charge Jay S. Tabb Jr. of the FBI’s Seattle Division. “The children’s well-being was the ultimate triumph after six months of dedicated investigative work, but today’s sentencing provides additional satisfaction by reassuring communities that parental kidnapping will not be tolerated.”
Once she completes her prison sentence, Ku will be on supervised release for one year.
The investigation in this case was conducted by the FBI’s Seattle Division, which received substantial assistance from the FBI’s Legal Attaché in Mexico City, Mexico’s National Institute of Migration, the FBI’s Los Angeles Division, the Bellevue (Washington) Police Department, the Los Angeles County Sheriff’s Department and the National Center for Missing & Exploited Children.”
This case was prosecuted by Assistant United States Attorney Scott Paetty of the Major Frauds Section, who coordinated with the U.S. Attorney’s Office for the Western District of Washington and the King County (Washington) Prosecutor’s Office.
Sex Offender Who Failed to Register Given 10 Years in JailRead the Press Release
OXFORD, Miss. B Felicia C. Adams, United States Attorney for the Northern District of Mississippi, announced that:
John Graham Roberts, 50, of Hardy, Arkansas and Water Valley, Mississippi, was sentenced for failing to register under the Federal Sex Offender Registration and Notification Act, on Tuesday, November 17, 2016, by United States District Judge Michael P. Mills, in Oxford, Mississippi. Judge Mills ordered Roberts to serve the maximum term of 120 months in prison. Roberts was also sentenced to serve a lifetime term of supervised release.
Roberts plead guilty on July 21, 2016, to a one-count Indictment charging him with a violation of Title 18, Section 2250, for knowingly failing to register as a sex offender and keep his registration as a sex offender updated as required by law Mississippi and Arkansas.
The United States Marshal Service (USMS) arrested Roberts on May 4, 2016, after receiving a tip that he was living in Mississippi and had not registered as a sex offender. The USMS investigation revealed that Roberts had lived in at least two different judicial districts without registering. Roberts was originally convicted in 1994 in Sharp County, Arkansas, for rape and sexual abuse in the 1st degree of 6 boys. Subsequently, in 2005, Roberts was convicted of failure to register as a sex offender in Desoto County, Mississippi.
United States Attorney Felicia C. Adams stated: “The federal Sex Offender Registration and Notification Act requires that sex offenders who move must register. It establishes a means for law enforcement to know the whereabouts of known sex offenders and is a means for the public to determine if a sex offender is living nearby. When an offender knowingly ignores the registration requirements, they violate the law. Such blatant disregard of the law which provides for the safety and protection of our children and neighborhoods must not be tolerated. The U.S. Marshals Service is to be commended for their diligent investigation and the arrest of Roberts.”
Unregistered sex offenders became federal fugitives, and they are a priority for our Deputy U.S. Marshals,” said Dennis Erby, the United States Marshal for the Northern District of Mississippi. “We worked closely with the Deputy United States Marshals from the Eastern District of Arkansas, with assistance from the Arkansas State Police on this case and will continue to work with all of our state and local partners to arrest those sex offenders who lurk in our neighborhoods, and threaten the safety of our children and communities,” added Erby.
The Sex Offender Registration and Notification Act (SORNA), enacted on July 27, 2006, requires a sex offender to register, and keep the registration current, in each jurisdiction where the offender resides, works and goes to school. SORNA is part of the Adam Walsh Child Protection and Safety Act which creates a comprehensive national system and requirements for sex offender registration, and criminal penalties for those who knowingly fail to register or update registration.
This case was investigated by the United States Marshal's Service and prosecuted by Assistant U.S. Attorneys Clay Joyner and J. Wesley Webb.
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Seven Defendants Plead Guilty to Conspiracy Related to Mortgage Fraud SchemeRead the Press Release
In two related cases, seven residents of Miami-Dade County pled guilty to conspiracy charges arising from their involvement in a complex mortgage fraud scheme involving two condominium conversion projects in central Florida.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Timothy Mowery, Special Agent in Charge, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
On November 10, 2016, Orlando Ortiz, 53, Luis Enrique Tur, 47, Jeffrey Todd Canfield, 49, Rafael Amador, 34, and Osvaldo Sanchez, 40, pled guilty to one count of conspiracy to commit bank fraud and wire fraud affecting a financial institution, before U.S. District Judge Federico A. Moreno. The defendants are scheduled to be sentenced on January 19, 2017.
On November 16, 2016, Mirna Pena, 54, and Pedro Reynaldo Allende, 66, pled guilty to one count of conspiracy to commit bank fraud and wire fraud affecting a financial institution, before U.S. District Judge Patricia A. Seitz. The defendants are scheduled to be sentenced on March 28, 2017.
According to court documents, including the agreed upon factual statements:
In 2007 and 2008, Ortiz, Tur, Canfield, Amador, and Sanchez participated in a mortgage fraud scheme involving two condominium projects: “Portofino at Largo,” in Largo, Florida, and “Bayshore Landing,” in Tampa, Florida. Pena and Allende were involved in the same mortgage fraud scheme; however, their involvement was limited to units in the Portofino at Largo project.
During the course of the conspiracy, Pena, Allende, and other individuals recruited straw buyers and unqualified buyers, including Ortiz, Tur, and Canfield, to purchase units in the two condominium projects. Among other things, the recruiters told certain prospective buyers that: buyers did not have to contribute any money to purchase a unit; buyers would receive a cash-back incentive or “kick-back” after closing; and buyers would receive several months’ mortgage payments.
The co-conspirators prepared and submitted false and fraudulent mortgage loan applications and related documents to various lenders including Bank of America, BankUnited, Chase Bank USA, CitiMortgage, First National Bank of Arizona, IndyMac Bank, JPMorgan Chase Bank, and Washington Mutual Bank. Among other things, the loan applications and related documents contained false and fraudulent statements and omissions regarding: the borrower’s intention to reside in the unit; the borrower’s employment and income; the borrower’s assets and liabilities; the borrower’s payment of an earnest money deposit and cash-to-close; and the use of mortgage loan proceeds to pay “marketing fees” to various “marketing companies.” In truth and in fact, the marketing companies were fraudulent businesses that did not provide any marketing services. Instead, the “fraudulently induced marketing fees” were a means of diverting proceeds from the fraud scheme to the marketing companies. The fraudulent marketing companies would then use the fraud proceeds to pay undisclosed kick-backs to the buyers.
Pena and Allende operated two Miami-based businesses, which were used to perpetrate the mortgage fraud scheme: Mortgage Bankers Lenders, Inc., a mortgage broker business, which submitted false and fraudulent loan applications and related documents to the lenders; and United Title Services & Escrow, Inc., which closed mortgage loan transactions even though the buyers had not paid earnest money deposits or cash-to-close, and used loan proceeds to pay “marketing fees” to a marketing company operated by unindicted co-conspirators.
Ortiz, Canfield, and Tur purchased units in Portofino at Largo. Tur also purchased units in Bayshore Landing. Ortiz, Canfield, and Tur engaged a Miami-based mortgage broker business operated by an unindicted co-conspirator to prepare and submit mortgage loan applications for their units. On their behalf, the co-conspirator prepared and submitted fraudulent loan applications and other documents to various lenders. The fraudulent loan documents included fabricated W-2 Wage and Tax Statements and pay stubs. After closing on their units, Ortiz, Canfield, and Tur received substantial undisclosed kick-backs from a marketing company operated by an unindicted co-conspirator. The kick-backs were funded with fraud proceeds, which had been paid to the marketing company as “marketing fees.”
Amador and Sanchez operated Allegiance Title of America, Inc., which served as the closing agent for mortgage loans involving condominium units in Portofino at Largo and Bayshore Landing. Among other things, Amador and Sanchez caused Allegiance Title of America to disburse loan proceeds even though the buyers had not paid the earnest money deposits or cash to close, that was required by their loan applications and settlement statements. Amador and Sanchez also caused Allegiance Title of America to pay fraudulent “marketing fees” to marketing companies.
The defendants face a maximum statutory term of thirty years’ imprisonment for their participation in the mortgage fraud conspiracy.
Mr. Ferrer commended the investigative efforts of the FHFA-OIG, FBI and MDPD. Both cases are being prosecuted by Assistant United States Attorney Dwayne E. Williams.
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.
Sentencings for November 15 - November 17, 2016Read the Press Release
Leonel Gomez-Hernandez, a/k/a Fernando Hernandez, 26, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on November 17, 2016, for illegal re-entry of a previously deported alien into the United States. Gomez-Hernandez was arrested in Casper, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Robert Tyler Watt, 29, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 16, 2016, for conspiracy to distribute methamphetamine and for being a felon in possession of firearms. Watt was arrested in Casper, Wyoming. He received 80 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $200.00 special assessment and $500.00 in restitution. This case was investigated by the Wyoming Highway Patrol, the Wyoming Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Kevin Patrick Michael, 21, of Westminster, Colorado, was sentenced by Federal District Court Judge Scott W. Skavdahl on November 16, 2016, for conspiracy to distribute methamphetamine. Michael was arrested in Cheyenne, Wyoming. He received 35 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and $250.00 in restitution. This case was investigated by the Wyoming Highway Patrol, the Wyoming Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Richard James Clifton, 29, of Evanston, Wyoming, was sentenced by Federal District Court Scott W. Skavdahl on November 15, 2016, for being a felon in possession of a firearm. Clifton was arrested in Cheyenne, Wyoming. He received 28 months of imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
San Antonio Businessman Sentenced to Prison for Estimated $5.3 Million Tax and Wire Fraud SchemeRead the Press Release
A federal judge this morning sentenced a former owner of San Antonio-based Gourmet Express, LLC, a skillet meals manufacturing and distributing business, to 15 years in federal prison for his role in an estimated $5.3 million tax and wire fraud scheme announced United States Attorney Richard L. Durbin, Jr., and Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter.
In addition to the prison term, United States District Judge David A. Ezra ordered that Robert Warren Scully pay $1,206,539.94 restitution to the Internal Revenue Service, plus a $5,000 fine, and be placed on supervised release for a period of three years after completing his prison term. Judge Ezra also ordered that the defendant be taken into custody to begin serving his sentence immediately.
On November 25, 2015, a federal jury in San Antonio convicted Scully of conspiracy to defraud the United States, conspiracy to commit wire fraud, and three substantive wire fraud counts.
Evidence presented in trial revealed that from April 2001 until July 2009, Scully and others conspired to defraud the Internal Revenue Service by hiding earned taxable income generated by his frozen food business. Testimony revealed that Scully and others used intermediary companies in Thailand to provide shrimp and other ingredients at an inflated cost to Gourmet Express, thereby also defrauding his co-owners. Scully and others used the proceeds generated as a result of the inflated costs for personal expenses and failed to disclose that income to the Internal Revenue Service.
“Robert Scully used a tangled web of international entities and foreign bank accounts to divert money from his business and evade income taxes,” said IRS Criminal Investigation Acting Special Agent in Charge Troy Caldron. “Scully must now pay for his attempt to support a lavish lifestyle through fraudulent means. Money laundering and tax evasion are not victimless crimes. They constitute a serious threat to our communities, to the integrity of our financial system, and to our national security.”
The case resulted from an investigation by the Internal Revenue Service Criminal Investigation. Assistant United States Attorneys William R. Harris, Jay Hulings and Mary Nelda Valadez prosecuted this case on behalf of the Government.
Salvadoran Man Sentenced to Eight Months for Unlawfully Re-Entering the United StatesRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Manual Antonio Guerra-Nolasco, 36, of Canton Matelapa, El Salvador, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to eight months in prison for unlawfully re-entering the United States after having been removed from the country. He pled guilty on August 5, 2016.
According to court records, on May 30, 2016, the defendant was arrested after a traffic stop in Orrington, Maine when a Penobscot County Deputy Sherriff learned that the pick-up truck he was driving was not registered and that his California driver’s license had been issued in the name of another person. Immigration records revealed that the defendant had been removed from the United States on August 20, 2007.
The investigation was conducted by the Department of Homeland Security’s U.S. Border Patrol.
Rutherford County Sheriff’s Major Charged with Unlawfully Obtaining U.S. CitizenshipRead the Press Release
Terry McBurney, 47, of Murfreesboro, Tenn., and a Major with the Rutherford County Sheriff’s Department, was indicted by a federal grand jury yesterday, on charges of unlawful procurement of naturalization; making false statements under oath in matters relating to his application for U.S. citizenship and naturalization status; and wire fraud, announced Jack Smith, Acting U.S. Attorney for the administration of this case.
According to the indictment, McBurney was born in Ireland. In September 2010 McBurney submitted an application for employment to the Rutherford County Sherriff’s Office and also submitted a completed Department of Homeland Security Form I-9, Employment Verification Eligibility. Both documents were marked indicating that McBurney was a United States citizen. In December 2010 McBurney submitted an application to the Tennessee Peace Officer Standards and Training (POST) Commission that was also marked indicating that he was a United States citizen. In fact, he was not a United States citizen.
McBurney obtained Tennessee POST certification in May 2011which made him eligible to receive a $600 per year pay supplement and he received supplemental payments of $600 in 2013, 2015, and 2016. In 2013, McBurney was promoted to the position of captain in the Rutherford County Sheriff’s Office and on or about January 18, 2016, McBurney was again promoted, this time to the position of major. Rutherford County required individuals holding the position of captain or major to meet a number of requirements, including being a United States citizen. The indictment alleges that McBurney was not a United States citizen at this time.
The indictment further alleges that McBurney submitted an application for naturalization to seek status of a United States citizen in September 2015 and participated in an interview regarding the application in December 2015. On the application and during an interview with an immigration officer of the U.S. Citizenship and Immigration Services, McBurney denied that he had ever claimed to be a United States citizen in writing or any other way. On February 24, 2016, McBurney took the oath of allegiance and was naturalized as a United States citizen.
If convicted, McBurney faces up to 10 years in prison for unlawful procurement of naturalization or citizenship, up to 5 years for making a false statement under oath in a matter relating to naturalization, and up to 20 years in prison for wire fraud. McBurney also faces a $250,000 fine for each charge and possible revocation of his U.S. citizenship.
This case was investigated by ICE- Homeland Security Investigations and the Tennessee Bureau of Investigation. Assistant U.S. Attorney Amanda J. Klopf is prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Rocklin Man Pleads Guilty to Large-Scale Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. —Aleksandr Kovalev, 53, of Rocklin, pleaded guilty today to wire fraud involving financial institutions in connection with a mortgage fraud scheme involving the purchase of at least 31 properties, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Kovalev was in the business of developing, building and selling property in Sacramento, Fairfield and Stockton. As the real estate market began to weaken, Kovalev offered to make incentive payments to purchasers, through “down payment assistance” or by making other payments to the buyers to be used in whatever manner the buyers wanted. Most of the payments to the buyers were out of escrow and were often paid through intermediaries, originating in Kovalev’s bank account. These payments were not disclosed to the lenders, and had the effect of substantially reducing the actual sales price below that was represented to the lenders. At least 31 properties were involved in Kovalev’s mortgage fraud scheme with substantial losses to the lenders.
This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Todd A. Pickles is prosecuting the case.
To date, five co-defendants have pleaded guilty and have been sentenced: Jannice Riddick, 34, of Sacramento (two years and 11 months in prison); Florence Francisco, 65, of Houston, Texas (one year in prison); Adil Qayyum, 34, of Rosele, Illinois (three years of probation); Elsie Pamela Fuller, 41, of Richmond (one year and nine months in prison); and Leona Yeargin, 49, of San Pablo (18 months in prison). Charges are pending against co-defendant Arthur Menefee, 45, of Stockton.
Two other defendants were charged separately for their involvement in the scheme. Valeriy Vasilevitsky, charged in U.S. v. Vasilevitsky, 2:12-cr-344 KJM, and Ruth Willis, charged in U.S. v. Willis, 2:13-cr-228 MCE, have also pleaded guilty and await sentencing.
Kovalev is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on February 9, 2017. Kovalev faces a maximum statutory penalty of 30 years in prison and a fine of $1 million or twice the gross loss or gain. 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.
Previously Deported Alien Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on November 16, 2016, a federal grand jury in Harrisburg charged Victor Avalos-Trinidad, age 34, with illegal re-entry into the United States by a previously deported alien.
According to United States Attorney Bruce D. Brandler, Avalos-Trinidad was previously deported from the United States in 2009. He is alleged to have illegally reentered the United States sometime after 2009.
This matter was investigated by Homeland Security Investigations. Prosecution has been assigned to Assistant United States Attorney Carlo D. Marchioli.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is two years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Press Conference AdvisoryRead the Press Release
There will be a press conference today to announce charges against Gary Tanner, a former executive at Valeant Pharmaceuticals International, Inc., and Andrew Davenport, the former Chief Executive Officer of Philidor Rx Services LLC, for engaging in a multi-million dollar fraud and kickback scheme.
WHO: Preet Bharara, United States Attorney for the Southern District of New York
William F. Sweeney, Special Agent-in-Charge of the New York Field Office of the Federal Bureau of Investigation
WHAT: Press Conference
WHEN: Thursday, November 17, 2016
12:00 p.m.
WHERE: U.S. Attorney’s Office, Southern District of New York
1 St. Andrew’s Plaza
New York, NY 10007
CONTACT: James Margolin, Dawn Dearden, Nicholas Biase
(212) 637-2600
NOTE: Please silence all cell phones, PDAs, and pagers before start of press conference.
Ponchatoula Woman Sentenced for Theft of MailRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JESSICA HENDERSON BERTHELOT, age 29, of Ponchatoula, was sentenced today after previously pleading guilty to Theft of Mail.
U.S. District Judge Lance M. Africk sentenced BERTHELOT to six (6) months incarceration, restitution in the amount of $2,650.00, as well as three (3) years supervised release.
According to court records, the investigation was initiated in September 2015, by the Tangipahoa Parish Sheriff’s Office and the United States Postal Inspection Service after determining that BERTHELOT was stealing mail from residential mailboxes on the Northshore. Postal inspectors determined BERTHELOT stole approximately 1,428 items of mail.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service and the Tangipahoa Parish Sheriff’s Office. The prosecution of this case was handled by Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba.
Pine Ridge Man Sentenced for Robbery while using a FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pine Ridge, South Dakota, man convicted of Robbery and Use and Brandishing of a Firearm during the Commission of a Crime of Violence was sentenced on November 8, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Charles Colhoff, a/k/a Charles H. Goings, a/k/a Chuckie Colhoff, age 28, was sentenced to 7 years in custody, followed by 3 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Colhoff pleaded guilty to the charges on July 22, 2016. The conviction stems from Colhoff and another individual using a firearm to rob two females of personal items in Pine Ridge on June 4, 2015.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Colhoff was turned over to the custody of the U.S. Marshals Service.
November Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 20 indictments charging 25 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Aurelio Alcaraz-Santana, age 18, is charged with possession with intent to distribute 500 grams or more of a mixture of methamphetamine on or about November 4, 2016. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Fulgencio Betancourt-Labra, age 30, is charged with illegal reentry after deportation following a felony conviction on or about October 31, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Erfren Garcia-Guzman, age 33; Samantha Moore, age 32; and Danielle Barclay, age 39 are charged in a four-count Indictment. Count I of the Indictment charges Garcia-Guzman, Moore and Barclay with conspiracy to distribute and possess with intent to distribute a mixture of methamphetamine beginning on or about July 26, 2016, and continuing to on or about November 3, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Garcia-Guzman and Moore with distribution of a mixture of methamphetamine on or about August 17, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release and a $100 special assessment. Count III of the Indictment charges Barclay with distribution of a mixture of methamphetamine on or about November 3, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release and a $100 special assessment. Count IV of the Indictment charges Garcia-Guzman, Moore and Barclay with possession with intent to distribute a mixture of methamphetamine on or about November 3, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release and a $100 special assessment.
* MaryLou Gruttemeyer and Lafi Jafari are charged in an eight-count Indictment. Count I of the Indictment charges the defendants with conspiracy to commit bribery of the United States Department of Housing and Urban Development from on or about February 24, 2012, through on or about February 11, 2015. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Counts II – VII of the Indictment charge Gruttemeyer and Jafari on various dates with paying a bribe to an agent of the Omaha Housing Authority, an organizing receiving federal funds. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. Count VIII of the Indictment charges Jafari with making false statements to special agents of the Housing and Urban Development Office of Inspector General on or about April 16, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment
* Abel Guerrero Diaz, age 17, of Lincoln, is charged with illegal reentry after deportation on or about October 11, 2016. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Jesus Jimenez Soto, age 36, of Omaha, is charged with illegal reentry after deportation following an aggravated felony conviction on or about October 20, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Paul Jipp, age 57, of Blair, Nebraska is charged in a three-count Indictment. Count 1 of the Indictment charges the defendant with user in possession of a firearm on or about October 31, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Jipp with possession of an unregistered firearm on or about October 31, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment. Count III of the Indictment charges the defendant with possession unregistered silencers on or about October 31, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Coby Johnson, age 19, of Fayetteville, North Carolina, is charged with interstate communications with intent to extort on or about October 25, 2016. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Julio Cesar Lopez Gutierrez, age 32, is charged with false representation of a Social Security Number on or about during and between January 1, 2014, and April 30, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* William Mejia-Rentas, age 45, of Omaha, is charged with illegal reentry after deportation following a felony conviction on or about October 20, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Julian Mix-Perez, age 26; Alisha Trevino, age 26; and Carlos Vidal-Mix, age 20 are charged in a six-count Indictment. Count I of the Indictment charges Mix-Perez, Trevino and Vidal-Mix with conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture of methamphetamine between in or about May 2016 and on or about October 17, 2016. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charge Mix-Perez and Vidal-Mix with possession with intent to distribute 500 grams or more of a mixture of methamphetamine on or about October 17, 2016. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release and a $100 special assessment. Count III, IV and V of the Indictment charge Trevino with distribution and possession with intent to distribute 50 grams or more of a mixture of methamphetamine on or about July 21, August 31, and October 7, 2016. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment for each count. Count VI of the Indictment charges Vidal-Mix with illegal reentry after deportation on or about October 18, 2016. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Emigdio Molina, age 49, of Omaha, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture of methamphetamine beginning on or about January 1, 2009, and continuing to on or about November 1, 2016. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Molina with possession with intent to distribute 50 grams or more of a mixture of methamphetamine on or about November 1, 2016. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release and a $100 special assessment.
* Byron Perez Lopez, age 24, of Omaha, is charged with illegal reentry after deportation on or about October 6, 2016. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Walter Perez-Cruz, age 37, of Grand Island, is charged with illegal reentry after deportation following a felony conviction on or about October 21, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Luis Miguel Rodriguez Vasquez, a/k/a Luis Miguel Rodriguez Vazquez, age 34 of Lincoln, is charged with illegal reentry after deportation on or about August 30, 2016. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Jaeon T. Rogers, age 35, is charged in a two-count Indictment. Count 1 of the Indictment charges the defendant with possession with intent to distribute methamphetamine on or about September 26, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Rogers with use of a firearm during and in relation to a drug trafficking crime on or about September 26, 2016. The maximum possible penalty if convicted is life imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Aurelio Romero-Oregon, age 25, of Omaha, is charged with felon in possession of ammunition on or about October 1, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Juan Manuel Simental-Lopez, a/k/a Manual Encee, a/k/a Juan Manuel Encee, age 44 is charged in a two-count Indictment. Count 1 of the Indictment charges the defendant with possession with intent to distribute 50 grams or more of methamphetamine on or about June 20, 2016. The maximum possible penalty if convicted is life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Simental-Lopez with felon in possession of a firearm on or about June 20, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Bernabe Tercero-Lopez, age 40, of Crete, Nebraska, is charged with illegal reentry after deportation on or about November 2, 2016. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Charmion S. Yellowcloud, age 27, of Niobrara, Nebraska, is charged with tampering with a witness on or about October 17, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
North Miami Check Casher Sentenced to More than 17 Years in Prison for Cashing over $11 Million in Fraudulent Tax Refund ChecksRead the Press Release
A North Miami check casher was sentenced to more than 17 years in prison, after having been convicted by a federal jury, for cashing over $11 million in fraudulent tax refund checks obtained from the filing of stolen identities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
Junior Jean Baptiste, 36 of North Miami, Florida, was convicted on charges of conspiracy to commit money laundering, money laundering, possession of five or more false identification documents, theft of government money, and aggravated identity theft. Baptiste was sentenced to a total of 212 months’ imprisonment, to be followed by three years of supervised release, by United States District Judge Jose E. Martinez.
According to the evidence presented in court, from 2009 to 2011, the defendant operated a check cashing store called Surveillance Masters LLC in North Miami, Florida. During this period, trial evidence demonstrated that the defendant knowingly cashed over $11 million from over 2,000 fraudulent tax refund checks that had been issued in the names of dead people, disabled people, and other people who do not typically file tax returns. Furthermore, trial evidence showed that the defendant typically took a fee of half of the value of the checks and made false identification documents for his files. Trial evidence demonstrated that, in connection with the cashing of these fraudulent checks, the defendant possessed over 900 false driver’s licenses, work permits, and green cards.
Finally, the evidence at trial showed that the defendant used the fraudulently obtained funds for, among other things, a cargo ship, multiple vehicles, and rights to an album of a prominent hip-hop artist.
Mr. Ferrer commended the investigative efforts of IRS-CI and ICE-HSI. This was prosecuted by Assistant U.S. Attorneys Michael N. Berger and Michael B. Nadler.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
North Canton man sentenced to more than three years in prison for $1.5 million fraudRead the Press Release
A North Canton was sentenced to more than three years in prison for his role in a $1.5 million fraud scheme, said U.S. Attorney Carole S. Rendon and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office.
James W. Wallace was found guilty earlier this year of conspiracy to commit wire fraud and bankruptcy fraud. U.S. District Judge Benita Pearson sentenced Wallace to 41 months in prison and ordered him to pay approximately $900,000 in restitution.
Wallace, acting with others, engaged in a scheme to defraud at least 15 small business owners of at least $1.5 million through an investment and loan scam. This took place between 2009 and 2012, according to court documents.
Wallace, acting through his companies Wallace Financial and Washington Integrity, fraudulently induced individuals to purchase “aged shelf corporations,” which served no legitimate business purpose other than to funnel money back to Wallace for his personal use. Wallace told potential buyers, who were individuals who often could not get funding from traditional financial institutions, that they could get them loans substantially greater than any available to them from commercial institutions through the purchase of an “aged shelf corporation” through Wallace Financial and Washington Integrity.
Aged shelf corporations were corporations that had been created some years before, but had never engaged in any business and were corporations on paper only. Wallace induced the would-be borrowers to believe that with the purchase of these previously created but dormant corporations they would qualify for private loans, credit cards with high credit limits, and other credit opportunities in amounts greater than were otherwise available to them from financial institutions. Wallace misinformed buyers by telling them that they had private lenders waiting to lend money to the owners of these aged shelf corporations when he knew that no such private lenders existed. Wallace also falsely told would-be borrowers that other individuals had successfully obtained funding, but shrouded the details of their prior "successes” as well as the identities of their “private lenders” under a veil of mystery, citing proprietary and trade secrets, when no customers in fact received any private funding, according to court documents.
Wallace also fraudulently misrepresented that the money customers paid to Wallace Financial and Washington Integrity for aged shelf corporations was used to obtain trade references, gain high PAYDEX scores (credit scores for corporations), and effect private placement of the loans. Wallace falsely told customers that their profit in the transaction would come later, after loans had been funded, from a percentage of the loans they succeeded in acquiring. Instead, Wallace used a substantial share of the money to pay for personal expenses including strip clubs, jewelry, tattoo salons, meals at restaurants and bars, vacations and resort hotels, testosterone supplements, luxury products, sports equipment, tanning salons, payments on personal loans and mortgages, cash withdrawals, and transfers to personal accounts, according to court documents.
Wallace also filed a false bankruptcy petition in the Northern District of Ohio. This took place after FBI agents executed a search warrant related to the case, and after former Wallace Financial and Washington Integrity customers filed lawsuits against him. Wallace falsely withheld information regarding his involvement with Washington Integrity; the number and amounts of creditors and debts owed by Wallace and his companies, bank accounts he possessed, his interests in executory contracts in the forms of the aged shelf corporation agreements he held with customers of Wallace Financial and Washington Integrity, and by falsely claiming a negative gross income for the two years preceding his bankruptcy filing, according to court documents
This case is being prosecuted by Assistant U.S. Attorney Om Kakani, following an investigation by the Federal Bureau of Investigation.
New Orleans Man Sentenced to 20 Years Imprisonment for Home Invasion RobberiesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CLARENCE R. SINGLETON, age 30, of New Orleans, was sentenced today after previously pleading guilty to conspiracy to commit Hobbs Act Robbery and use of firearms in furtherance of drug trafficking crimes.
U.S. District Judge Carl J. Barbier sentenced SINGLETON to 240 months imprisonment, to be followed by 3 years of supervised release and a $200 special assessment.
According to court documents, SINGLETON participated in home invasion robberies of drug dealers in an effort to make money and/or obtain illegal drugs for later retail sale. He also conspired to use, possess and discharge firearms to further their drug trafficking activity, and crimes of violence during the robberies of these drug dealers to obtain drugs and drug proceeds.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the New Orleans Police Department led Multi-Agency Gang Unit in investigating this matter. Assistant United States Attorneys Michael M. Simpson and Michael E. McMahon were in charge of the prosecution.
Nevada Man Sentenced to 30 Years in Federal Prison for Interstate Travel with Intent to Engage in Sexual Act with Child Under 12Read the Press Release
Fort Smith, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that David Harper, age 50 of Henderson, Nevada, was sentenced today to 360 months in federal prison followed by five (5) years of supervised release on one count of Knowingly Crossing State Lines with Intent to Engage in Sexual Act with Person Under 12 Years Old. The sentencing hearing took place before the Honorable Chief Judge P. K. Holmes, III in the United States District Court in Fort Smith.
Court records reflect that in August 2015, David Harper began chatting online with an undercover detective working with the Fort Smith Police Department. On January 25, Harper traveled from Las Vegas to Fort Smith and was taken into custody when he arrived at the Fort Smith airport. When interviewed, Harper admitted that he traveled to Arkansas with the intent to engage in sex acts with a minor under 12 years of age. He was indicted by federal grand jury in January 2016 and pleaded guilty in June 2016.
This case was investigated by the Fort Smith Police Department and the Federal Bureau of Investigation (FBI). Assistant United States Attorney Ashleigh Buckley prosecuted the case for the United States.
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 their Criminal Division Child Exploitation and Obscenity Sections (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.projectsafechildhood.gov.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Nebraska Man Sentenced for Attempted Sex TraffickingRead the Press Release
United States Attorney Randolph J. Seiler announced that a Loup City, Nebraska, man convicted of Attempted Trafficking with Respect to Involuntary Servitude and Forced Labor was sentenced on November 10, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Marcus Lee Dorsey, age 36, was sentenced to 4 years of imprisonment, followed by 2 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Dorsey was one of four men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2015 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with underage girls obtained through the Internet.
The conviction stemmed from Dorsey responding to an online advertisement posted by Division of Criminal Investigation undercover agents, which purported to offer young girls for sex. Following several messages with a person Dorsey believed to be associated with a 15-year old girl, but who was in fact an undercover agent, he proceeded to negotiate the time and place they would meet, along with the price he would pay, which was $70.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Dorsey was immediately turned over to the custody of the U.S. Marshal's Service.
Monroe County Man Guilty of Selling ExplosivesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Ronald J. Scheu, age 48, of Kunkletown, Pennsylvania, pleaded guilty before Magistrate Judge Karoline Mehalchick in Scranton on November 16, 2016, to distributing explosives.
According to United States Attorney Bruce D. Brandler, Scheu distributed 119 M-class devices, 26 class 1.3 mortars, and one aerial shell on or about April 28, 2016, without the appropriate license or permit. During the hearing, Scheu admitted to maintaining a storage locker filled with hundreds of pounds of explosives, and to selling professional grade explosives without an appropriate license. He also admitted to manufacturing flash powder and explosives at his residence.
The plea remains subject to approval by United States District Court Judge Richard P. Conaboy. As a condition of his pre-sentencing release, Judge Mehalchick ordered Scheu to dispose of all firearms in his possession.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Carbon County District Attorney’s Office. Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the charge is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Minnesota Couple Sentenced for Multi-Million-Dollar Income Tax Refund Fraud SchemeRead the Press Release
United States Attorney Andrew M. Luger announced the sentencing of MARK ARLIN HAMMERSCHMIDT, 49, and ORNELLA ANGELINA HAMMERSCHMIDT, 37, for orchestrating a multi-million-dollar tax fraud scheme. The defendants, who pleaded guilty on November 16, 2015, were sentenced today before U.S. District Judge David S. Doty in U.S. District Court in Minneapolis, Minn.
“The Hammerschmidts stole nearly $2 million from the U.S. Treasury and exploited hundreds of vulnerable victims for their own financial gain, causing those victims immeasurable harm,” said Assistant United States Attorney Michelle Jones. “The U.S. Attorney’s Office and the IRS will continue to vigorously investigate and prosecute those who seek to victimize others and enrich themselves through tax refund schemes.”
“Most tax return preparers provide excellent service to their clients, however a few unscrupulous tax preparers file false and fraudulent returns. Knowingly and intentionally falsifying documents filed with the IRS is a federal crime,” stated IRS Criminal Investigation Special Agent in Charge Shea Jones. Our Special Agents play a valuable role in protecting tax revenue by identifying, investigating and recommending prosecution of abusive return preparers such as Mark Hammerschmidt and Ornella Hammerschmidt.”
According to the defendants’ guilty pleas, from January 2011 through February 2013, MARK and ORNELLA HAMMERSCHMIDT operated an immigration and tax preparation business, called American Group, located in Shakopee, Minn. and Winter Garden, Fla., which they utilized to prepare and file more than 1,000 fraudulent federal income tax returns. The defendants attracted customers to American Group by misrepresenting their professional credentials and certifications. Most notably, ORNELLA HAMMERSCHMIDT falsely represented herself as a licensed immigration attorney.
As part of the scheme, MARK and ORNELLA HAMMERSCHMIDT filed hundreds of federal and state tax returns for Minnesota and Florida clients of American Group and Liberty Tax, another tax preparation business they owned, reporting incorrect filing statuses, false household help income, fictitious businesses and business losses, along with fraudulent child care credits and education credits, in order to obtain unwarranted income tax refunds. The defendants attempted to conceal their involvement as fraudulent return preparers by intentionally not signing the tax returns on the part of the form meant to be signed by paid preparers. The defendants also falsely reported their business addresses and bank accounts controlled by them as the addresses and bank accounts of their taxpayer clients. In connection with this part of the scheme, the defendants sought approximately $200,000 in fraudulent tax refund payments. Many of the defendants’ clients were non-or-limited English speakers, who relied on the defendants to properly and legally prepare their taxes. The false returns filed on behalf of the taxpayer clients caused substantial harm to them, both in terms of problems with the IRS and problems with immigration status.
According to his guilty plea, from 2010 until 2012, MARK HAMMERSCHMIDT obtained personal identification information (“PII”) of hundreds of Guatemalan citizens, including birth certificates and copies of passports. MARK HAMMERSCHMIDT then prepared and filed with the IRS applications for Individual Taxpayer Identification Numbers (“ITINs”) in the names of the Guatemalan citizens. Once he obtained the ITINs, MARK HAMMERSCHMIDT filed multiple years’ worth of false tax returns in the Guatemalan citizens’ names, seeking refunds based on false information including false household help income, false dependents, and false education credits. MARK HAMMERSCHMIDT also used the PII of the Guatemalan citizens to file false Minnesota state income tax returns. In connection with this part of the scheme, the defendant sought approximately $1.8 million in tax refunds based on the fraudulent tax returns he filed.
This case was prosecuted by Assistant U.S. Attorneys Michelle E. Jones and Timothy C. Rank.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS, Homeland Security Investigations, with substantial assistance from the Minnesota Department of Revenue.
Defendant Information:
MARK ARLIN HAMMERSCHMIDT, 49
Prior Lake, Minn.
Convicted:
- Conspiracy to Defraud the United States, 2 counts
Sentenced:
- 135 months in prison
- $1,832,986 in restitution
ORNELLA ANGELINA HAMMERSCHMIDT, 37
Prior Lake, Minn.
Convicted:
- False Claims for Refunds, 1 count
Sentenced:
- 48 months in prison
- $45,365 in restitution
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United States Attorney’s Office, District of Minnesota: (612) 664-5600