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Tuesday 13 September 2016
Cleveland man indicted for selling heroin and fentanylRead the Press Release
A four-count indictment was filed in federal court charging a Cleveland man with distributing heroin and fentanyl, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Gino Martin, 27, possessed with intent to distribute heroin and fentanyl and also distributed heroin and fentanyl. The conduct took place between June and August, according to the indictment.
Prosecutors are also seeking to forfeit nearly $7,800 seized during the investigation.
This case is being prosecuted by Assistant U.S. Attorney Margaret Sweeney following an investigation by the Northern Ohio Law Enforcement Task Force and the Euclid Police Department.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cape Coral Woman Sentenced to Three Years in Prison for Defrauding Her Former Company of $1.1 MillionRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Junipher Sayers, formerly Junipher Layne, (34, Cape Coral) to three years in federal prison for wire fraud. The Court also ordered her to repay $1,132,160.91 in restitution to the victim, Tigrent, Inc., and an additional $1,132,160.91 to the United States in forfeiture, representing the proceeds she obtained as a result of the offenses.
According to the plea agreement, between January 28, 2013, and June 2015, Sayers devised and carried out a sophisticated scheme to defraud Tigrent, Inc. Sayers, formerly an accounts payable clerk, stole money from the company by submitting and processing fraudulent invoices for payment. Sayers then directed those payments to several shell companies that she had created and controlled for the purpose of carrying out her scheme. She spent large amounts of the stolen money on consumer goods and other items.
This case was investigated by the Federal Bureau of Investigation and the Cape Coral Police Department. It was prosecuted by Assistant United States Attorney Charles D. Schmitz.
Bucks County Man Pleads Guilty to Tax ChargesRead the Press Release
Benjamin Lomas, 46, of New Hope, PA, plead guilty today to an Information charging evasion of payment of tax, announced United States Attorney Zane David Memeger. According to the information, Lomas willfully attempted to evade the full amount of income tax he owed for calendar years 2009 through 2012 by filing false information with the IRS and diverting money from his business for personal expenses.
If convicted, the defendant faces a statutory maximum sentence of five years in prison, a fine, a $100 special assessment, and up to three years of supervised release.
The case was investigated by IRS Criminal Investigations and is being prosecuted by Assistant United States Attorney Tomika N.S. Patterson.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
British Man Arrested at Trump Rally in June Pleads GuiltyRead the Press Release
LAS VEGAS, Nev. – The British man who seized the firearm of a Las Vegas Metropolitan Police Department officer at a Donald Trump rally in June, pleaded guilty today to two felony charges and will be sentenced in December, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“It is fortunate that no one was harmed in this incident,” said U.S. Attorney Bogden. “The Las Vegas Metropolitan Police Department officer’s attentiveness and quick action prevented the escalation of this crime. The result was that no one was injured.”
Michael Steven Sandford, 20, of England, pleaded guilty before U.S. District Judge James C. Mahan to one count of illegal alien in possession of a firearm and one count of impeding and disrupting the orderly conduct of government business and official functions. The maximum penalty for each count is 10 years in prison and a $250,000 fine. Sentencing is scheduled for Dec. 13, 2016, at 10 a.m.
According to the plea agreement and other court records, on June 17, 2016, Sandford, who is a British citizen and was unlawfully in the United States because he had overstayed his tourist visa that expired on Aug. 30, 2015, went to a gun range in Las Vegas and took shooting lessons using a rented Glock 9 millimeter handgun. The following day, on June 18, Sandford entered a political rally event for Donald Trump at the Mystere Theatre in the Treasure Island Casino. The entrance to the event was clearly marked with posters designating the grounds as restricted and under the protection of the U.S. Secret Service. Las Vegas Metropolitan Police Department officers were also present at the rally to assist with security. Inside the rally, Sandford approached a uniformed Las Vegas Metropolitan Police Department officer and asked to obtain Trump’s autograph. When the officer gave his verbal reply, Sandford, using both hands, seized the officer’s Glock 9 millimeter handgun and attempted to pull it from the holster. Sandford was immediately arrested and removed from the rally. Sandford’s conduct was disorderly and disruptive and required the U.S. Secret Service, other law enforcement, and security personnel to respond to the threat posed by Sandford. Sandford’s arrest also disrupted the speech given by Trump.
The case is being investigated by the U.S. Secret Service, and prosecuted by Assistant U.S. Attorney Jared L. Grimmer.
Monday 12 September 2016
Wisconsin Man Sentenced for Sex Trafficking of a Minor and Possession and Distribution of HeroinRead the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on September 9, 2016, Tyrice Excell Akins, 29, Milwaukee, Wisconsin, was sentenced before U. S. District Judge Ralph R. Erickson to serve five years and six months in prison followed by five years of supervised release for two counts of sex trafficking of a child and one count of conspiracy to commit sex trafficking. In addition, Akins was sentenced to eighteen months consecutively for one count of possession and distribution of heroin out of Wisconsin. Judge Erickson also ordered Akins to pay a $400 special assessment to the Crime Victims Fund.
The case came to the attention of law enforcement after the North Dakota Highway Patrol pulled over a rental vehicle driven by Kurtis Johnson. Found with Johnson was a woman and a 17-year-old female who Johnson transported from Milwaukee, Wisconsin, to Bismarck, North Dakota, for the purpose of prostitution. A subsequent investigation revealed that Johnson was provided narcotics by Akins in exchange for transporting women and one juvenile to various locations throughout the United States, including Florida, Louisiana, and North Dakota, throughout 2014 and 2015 for the purpose of prostitution.
This case was investigated by the North Dakota Bureau of Criminal Investigations and the Department of Homeland Security - Homeland Security Investigations.
Assistant U. S. Attorney Jennifer Puhl is prosecuting the case.
This case was prosecuted with the assistance of the North Dakota Human Trafficking Task Force (NDHTTF), which includes regional response teams that consists of federal, state, and local law enforcement and victim service providers working together to identify and rescue human trafficking victims as well as investigate and prosecute human trafficking cases. Led by the U.S. Attorney’s Office, BCI, and the North Dakota Counsel on Abused Women Services (CAWS), the NDHTTF is dedicated to addressing the individualized needs of human trafficking victims and the apprehension, investigation, and prosecution of the perpetrators of human trafficking.
The NDHTTF includes representatives from Youthworks, the Children’s Advocacy Center, the Domestic Violence Crisis Center, Lutheran Social Services, the ND Association of Counties, a Force to End hUman Sexual Exploitation (FUSE), a survivor of human trafficking, First Nations Women’s Alliance (FNWA), and the Department of Homeland Security - Homeland Security Investigations (HSI).
Wheeling man sentenced for cocaine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Kenneth Brown, 50, of Wheeling, West Virginia, was sentenced today to 77 months in prison for distributing crack cocaine, United States Attorney William J. Ihlenfeld, II, announced.
Brown admitted to selling crack cocaine out of his residence in Ohio County, West Virginia. He pled guilty in June 2016 to one count of “Possession with Intent to Distribute Cocaine Base.”
Assistant U.S. Attorney Randolph J. Bernard prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Voting Rights Abuse Hotline EstablishedRead the Press Release
PROVIDENCE - United States Attorney Peter F. Neronha announced today that Assistant United States Attorney (AUSA) Terrence P. Donnelly will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for Rhode Island’s Primary on Tuesday, September 13. AUSA Donnelly has been appointed to serve as the District Election Officer for the District of Rhode Island, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Primary Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them.
To report suspected election fraud or voting rights abuses at the polls in Rhode Island, the United States Attorney’s Office can be reached by the public at (401) 709-5068. In addition, the FBI field office in Rhode Island will be prepared to receive allegations of voting fraud and other election abuses at (401) 272-8310.
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Two-Time Felon Convicted of Possessing FirearmsRead the Press Release
MARQUETTE, MICHIGAN — U.S. Attorney Patrick A. Miles, Jr. announced the recent sentencing of Joseph John Holm, Jr., who was convicted of being a convicted felon in possession of firearms.
Agents from the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) assisted by detectives from the Upper Peninsula Substance Enforcement Team (UPSET) and officers from the Forsyth Township Police Department searched Holm’s residence in Gwinn, Michigan last December. They discovered 10 firearms including an Olympic Arms .223 caliber rifle that is similar to the popular AR-15-style assault rifle. They also found four high capacity magazines to go with this rifle. Holm was prohibited from possessing firearms because of his criminal record, specifically his prior felony convictions for criminal sexual conduct in the second degree and failure to register as a sex offender. Holm was arrested the day of the search and later indicted by a federal grand jury.
During the sentencing hearing, U.S. District Court Judge Robert Holmes Bell noted that he was disturbed by the fact that Holm used methamphetamine while released on bond pending trial. Judge Bell sentenced Holm to five years in prison to be followed by three years of supervised release.
ATF Special Agent in Charge Robin Shoemaker thanked the members of the Upper Peninsula Substance Enforcement Team and the Forsyth Township Police Department for their investigative efforts. She noted that the sentence imposed on Holm addresses the seriousness of his conduct and hopefully serves as a deterrent to others that may possess firearms Illegally.
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Troy Man Sentenced to 57 Months for Bank RobberiesRead the Press Release
ALBANY, NEW YORK – Michael C. Matzen, age 36, of Troy, New York, was sentenced today to 57 months in prison for committing 2 bank robberies in 2 days in East Greenbush and Latham.
The announcement was made by U.S. Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation (FBI).
Senior U.S. District Judge Gary L. Sharpe also ordered Matzen to serve a 3-year term of supervised release following his incarceration, and to pay restitution in the amount of $6,250, the total amount that Matzen stole from the two banks.
On March 19, 2015, Matzen entered an East Greenbush TD Bank, approached a teller, and handed the teller a note that read “I HAVE A GUN, GIVE ME The Top & bottom Drawer, NO Dye packs, NO bait money ...” The bank teller gave Matzen $500 and he fled.
On March 20, 2015, Matzen entered a Trustco Bank in Latham, and approached a teller with a note that read “Give me $2,000, No bait money No Dye packs I have a Gun.” The bank teller gave Matzen $5,750 and he fled.
Matzen was arrested the following morning in an Albany motel room. He told police that he had planned to travel to Florida later that day.
This case was investigated by the FBI in coordination with the Colonie Police Department and the East Greenbush Police Department, and was prosecuted by Assistant U.S. Attorney Solomon B. Shinerock.
Tarkio High School Student Pleads Guilty to Possessing Machine GunRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Tarkio R-1 High School student who brought a loaded semi-automatic pistol to school, causing the school to be locked down, pleaded guilty in federal court today to illegally possessing a machine gun that was found at his residence.
Michael T. Knoth, 19, of Tarkio, Mo., pleaded guilty before U.S. Magistrate Judge Robert E. Larsen to the charge contained in a March 9, 2016, federal indictment. Knoth, who has been in custody since his arrest on Feb. 11, 2016, remains in federal custody.
By pleading guilty today, Knoth admitted that he was in possession of an AR-styled .223/.556-caliber pistol (fully automatic machine gun) on Feb. 11, 2016.
According to court documents, Knoth – who came to school on Feb. 11, 2016, wearing military-style clothing, boots and ballistic body armor – displayed a fully loaded magazine to another student that day. That student alerted a teacher, and the school contacted the Tarkio, Mo., Police Department. School officials then discovered a loaded Glock 9mm semi-automatic pistol in Knoth’s backpack, along with four loaded 9mm pistol magazines, three loaded .223- or .556-caliber magazines, a spring-assisted knife, a seatbelt cutter and a window punch.
Knoth was arrested and handcuffed. The school was placed on lockdown.
Investigators searched Knoth’s vehicle, which was parked in the school parking lot. They found two loaded 9mm magazines and 15 loaded .223/.556-caliber magazines.
Investigators also searched Knoth’s residence. During a search of the southwest bedroom, investigators found a loaded machine gun in the closet – an AR-style .223/.556 pistol, containing no visible serial numbers or manufacturer stamp. They found a second machine gun, an UZI-style 9mm firearm (unknown manufacture), in the dresser. Investigators also found numerous rounds of ammunition and numerous loaded .223/.556 and 9mm magazines throughout the residence.
Under federal statutes, Knoth is subject to a sentence of up to 10 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. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Tarkio, Mo., Police Department, the Atchison County, Mo., Sheriff’s Department, the Missouri State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Tampa Man Sentenced to More Than Eight Years for Tax Fraud and Identity TheftRead the Press Release
Tampa, FL – U.S. District Judge Charlene Edwards Honeywell today sentenced Andre Dwight Stewart to eight years and five months in federal prison for theft of government property and aggravated identity theft related to the filing of false federal income tax returns using stolen identities. The Court also ordered him to pay $230,005 in restitution to the Internal Revenue Service, which are the traceable proceeds to his offenses. Stewart pleaded guilty on June 21, 2016.
According to court documents, on July 11, 2013, officers with the Tampa Police Department searched a vehicle in which Stewart was a passenger. Pursuant to that search, agents recovered a red Swiss Gear laptop bag containing computers and notebooks, all of which belonged to Stewart. During a search of Stewart’s wallet, investigators recovered five reloadable debit cards, three of which were in Stewart’s name, and all of which had been loaded with fraudulently obtained tax refunds. Investigators also recovered ATM images showing Stewart withdrawing cash using these debit cards.
From inside Stewart’s bag, technicians found Stewart’s fingerprints on various pages of a composition notebook that contained 47 pieces of personally identifiable information (PII), including names, DOBs, and SSNs. Of these, at least nine income tax returns using this PII were filed for the 2011 tax year. Stewart’s fingerprints were also found on the inside cover of a Mario Kart/Wii themed notebook recovered from the computer bag. Agents identified approximately 27 pieces of PII contained in that notebook, of which four income tax returns using this PII were filed for the 2012 tax year.
Based on a review of the evidence, investigators determined that Stewart and others filed and caused to be filed fraudulent tax returns claiming over $600,000 in fraudulent refunds.
This case was investigated by the Tampa Police Department and the Internal Revenue Service - Criminal Investigations. It was prosecuted by Assistant United States Attorney Mandy Riedel.
Tampa Man Convicted of Attempted Sex Trafficking of A ChildRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces today that a federal jury found Matheus William Geronasso (23, Tampa) guilty of attempted sex trafficking of a child. He faces a minimum mandatory penalty of 10 years, up to life, in federal prison. His sentencing hearing is scheduled for December 14, 2016. Geronasso was indicted on March 29, 2016.
According to evidence presented at trial, Geronasso responded to an advertisement posted on Backpage.com by a person looking for individuals willing to pay to have sex with his girlfriend’s 14-year-old daughter. Unbeknownst to Geronasso, the ad had been placed by an undercover agent with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Geronasso sent several text messages stating that he wanted to have sex with the 14-year-old girl. After negotiating the price, Geronasso drove to the designated location, met with an undercover agent, and paid to have sex with the child.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorneys Lisa M. Thelwell and Josephine W. Thomas.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
State Primary Election Hotlines to Be Operated by the United States Attorney’s Office and the New Hampshire Attorney General’s OfficeRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice and New Hampshire Attorney General Joseph Foster announced today that both the United States Attorney's Office and the New Hampshire Attorney General’s Office will staff voting inquiry and complaint lines at their respective offices throughout the day and evening on during the State Primary Election on Tuesday, September 13, 2016.
The New Hampshire Attorney General’s toll free election line phone number is:
1-866-868-3703
(1-866-VOTER03)This phone line will be staffed from 6 am to 8 pm during the State Primary Election. Inquiries and complaints may also be submitted via e-mail at [email protected]. Information regarding voting rights may be obtained by visiting the New Hampshire Attorney General's Office website at http://doj.nh.gov/site-map/voters.htm.
The United States Attorney’s election line phone number is:
(603) 230-2503
This phone line will also be staffed from 7 am to 8 pm during the State Primary Election. Inquiries and complaints may also be submitted through the United States Attorney’s Web site at www.usdoj.gov/usao/nh by clicking on the “e-mail us” link. A Federal Election Fraud Fact Sheet that explains what triggers federal criminal jurisdiction in connection with elections and voting rights can also be found on the United States Attorney’s Web site.
The state and federal election lines are available to all individuals who may have questions regarding their voting rights or who want to file complaints with the New Hampshire Attorney General or the United States Attorney regarding their right to vote or any other election law violation.
For further information, please contact Assistant Attorney General Brian Buonamano at (603) 271-3650, or Assistant United States Attorney Mark S. Zuckerman at (603) 230-2579.
Six Bronx Defendants Charged in Manhattan Federal Court with Sex Trafficking OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, the Police Commissioner of the City of New York (“NYPD”), announced the arrests of MARIA SOLY ALMONTE, a/k/a “Soly Almonte,” a/k/a “Soly La Fuerte,” a/k/a “SoSo,” a/k/a “SoSo Wavy,” a/k/a “Soly Montana,” DAWITT DYKES, a/k/a “Daweezy,” a/k/a “Dawezzy,” MARIA MAGDALENA ALMONTE, DARLENE DELEON, and GABRIELY M. JOSE, a/k/a “Gabriela Vuitton,” a/k/a “Gabby,” on charges of sex trafficking of minors, sex trafficking conspiracy, use of interstate commerce to promote illegal activity, enticement of a minor, and receipt and possession of child pornography. The sixth defendant, VETTHYA ALCIUS, a/k/a “Theiya Cole,” remains at large.
All of the defendants arrested today will be presented today in Manhattan federal court before U.S. Magistrate Judge James L. Cott.
Manhattan U.S. Attorney Preet Bharara said: “The defendants allegedly engaged in the sexual exploitation of minors as young as 13 years old. Protecting children from the predatory conduct of adults who would sexually exploit them for profit is a critically important law enforcement mission to which our office and our law enforcement partners at the FBI and NYPD are committed.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Human trafficking of minors can at times be overlooked by our society because some may believe the children involved have a choice. But these children aren’t given a vote while the pimps peddle their bodies for money. It’s a grotesque violation of the law that the FBI and our law enforcement partners won’t stop pursuing until every child is rescued.”
Police Commissioner William J. Bratton said: “The defendants trafficked kids for sex as young as the age of 13. Today, those who, as alleged, took advantage of some of our society's youngest find themselves under arrest. I commend the work of the NYPD investigators, FBI agents and prosecutors involved in this case who continue to work to protect this city’s children and bring to justice those who profit from the abuse of the city’s youngest and most vulnerable victims.”
According to the Complaint unsealed today in Manhattan federal court[1]:
Since at least 2015, MARIA SOLY ALMONTE, ALCIUS, DYKES, DELEON, and JOSE have helped operate a brothel in New York City, which trafficked minors as young as 13 years old. The brothel operated at various locations throughout New York, including apartments in the Bronx and Harlem. Several of the defendants, including MARIA SOLY ALMONTE, MARIA MAGDALENA ALMONTE, and DELEON resided at apartments used for the brothel.
MARIA SOLY ALMONTE served as the brothel’s proprietor. ALCIUS, MARIA MAGDALENA ALMONTE, DELEON, and JOSE all were sex workers at the brothel, and DYKES provided security. The brothel’s sex workers were required to pay MARIA SOLY ALMONTE a fee for prostitution services they rendered at the brothel. The brothel advertised its services on the internet via Backpage.com and communicated with clients by telephone.
The NYPD arrested DYKES and ALCIUS in 2015 at one of the brothel locations at which minor sex trafficking victims had worked. The Complaint refers to five minor victims, all of whom provided prostitution services at one or more of the brothel’s locations. ALCIUS and JOSE communicated with several of the minor victims about the brothel’s activities through social media, including setting up “dates.”
* * *
The charges in the Complaint against MARIA SOLY ALMONTE, 32, ALCIUS, 22, DYKES, 24, MARIA MAGDALENA ALMONTE, 51, DELEON, 29, and JOSE, 20, are included in the chart below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Any individuals who believe they have information that may be relevant to the investigation should contact the Federal Bureau of Investigation at 1-212-384-1000 or https://tips.fbi.gov/.
Mr. Bharara thanked the FBI and NYPD for their outstanding investigative work in this matter.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Dina McLeod and Stephanie Lake are in charge of the prosecution.
The charges and allegations contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
16-244 ###
Count
Defendants
Charge
Mandatory Minimum Prison Term
Maximum Prison Term
One
MARIA SOLY ALMONTE, ALCIUS, DYKES, DELEON, and JOSE
Sex Trafficking Conspiracy
15 years
Life
Two
MARIA SOLY ALMONTE, ALCIUS, DYKES, DELEON, and JOSE
Sex Trafficking of a Minor
15 years
Life
Three
MARIA SOLY ALMONTE, ALCIUS, DYKES, MARIA MAGDALENA ALMONTE, DELEON, and JOSE
Use of Interstate Commerce to Promote Unlawful Activity
5 Years
Four
ALCIUS
Enticement of a Minor
10 years
Life
Five
ALCIUS
Receipt of Child Pornography
5 years
Life
Six
ALCIUS
Possession of Child Pornography
10 years
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
San Antonio Doctor Sentenced to Federal Prison for Failure to Pay Withholding Taxes and Tax EvasionRead the Press Release
In San Antonio this morning, 60-year old Anthony P. Sertich, Jr., was sentenced to 41 months in federal prison and ordered to pay more than $2.9 million in restitution to the Internal Revenue Service announced United States Attorney Richard L. Durbin, Jr., and IRS-Criminal Investigation Special Agent in Charge William Cotter.
On March 2, 2016, a federal jury convicted Sertich of ten counts of failure to truthfully account for and pay withholding taxes and one count of tax evasion. According to court documents, Sertich was a medical doctor who was the Member, Director and President of Advanced Artistic Facial Plastic Surgery of Texas, PA (AAFPST) and South Texas Otorhinolaryngology, PA (STO). During the calendar years 2008 through 2010, Sertich failed to pay over $226,000.78 to the IRS in payroll taxes withheld from AAFPST’s employees’ paychecks.
In addition, Sertich was found guilty of tax evasion. Between 2002 and 2010, Sertich accrued $2,927,366.45 in unpaid payroll taxes penalties and interest for AAFPST and STO. Sertich evaded paying the taxes by withholding and keeping money, which should have been paid to the IRS, and by repeatedly filing bankruptcy to take unfair advantage of the automatic stay of creditors.
Instead of paying the payroll taxes, Sertich paid himself millions of dollars in salary, which in turn paid for personal expenses such as a large mortgage and interest payments, real estate tax payments and alimony payments. Sertich also filed four personal and one corporate bankruptcy petitions, all but one of which was subsequently dismissed by the court.
“Dr. Anthony P. Sertich, Jr., deliberately evaded paying federal payroll taxes for over eight years, cheating the tax system, his employees, and ultimately, all other taxpayers,” stated United States Attorney Richard L. Durbin, Jr. “He withheld money from his employees’ pay, which he applied to his own use. Then, he abused the bankruptcy process to defeat possible collection efforts.”
“IRS-Criminal Investigation realizes the detrimental consequences of employment tax evasion. It results in the loss of tax revenue to the United States government and the potential loss of future social security or Medicare benefits for the employees,” stated Special Agent in Charge William Cotter of IRS-Criminal Investigation, San Antonio. “Employers, such as Dr. Anthony P. Sertich Jr., who do not remit withheld employment taxes to the IRS are not only enriching themselves, they are creating financial problems for their employees.
This case was investigated by IRS-Criminal Investigation and prosecuted by Assistant United States Attorney William R. Harris.
Providence Felon Sentenced for Possessing Six FirearmsRead the Press Release
PROVIDENCE, R.I. – Anthony Jenkins, 52, formerly of Providence, was sentenced today to 5 years in federal prison for being a felon in possession of six firearms, announced United States Attorney Peter F. Neronha and Mickey D. Leadingham, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Jenkins to serve 3 years supervised release upon completion of his prison term. Jenkins pleaded guilty on May 24, 2016, to being a felon in possession of six firearms.
According to court documents and information presented to the court, in November 2015, members of an ATF task force became aware of Jenkins plans to steal several firearms with the intent to sell some of them to a person recently released from prison. On November 5, 2015, Jenkins, accompanied by an ATF undercover task force agent, traveled to a storage unit facility in Cranston where Jenkins believed numerous firearms and assorted ammunition were being stored inside a locked unit. Jenkins cut off the lock and removed six firearms and assorted ammunition. Jenkins was detained by members of the task force immediately after he took possession of the firearms and the ammunition.
According to court records and information presented to the court, Jenkins’ previous adult criminal history includes 19 convictions for felony theft offenses.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
The ATF Task Force consists of agents and officers from ATF; Providence, Cranston and Central Falls Police Departments; and the Special Investigations Unit at the Rhode Island Department of Corrections.
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Pittsburgh Felon Admits Illegally Possessing Ruger PistolRead the Press Release
PITTSBURGH - A Pittsburgh resident pleaded guilty in federal court to a charge of being a felon in possession of a firearm, United States Attorney David J. Hickton announced today.
Tyron Harrison, 23, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that on or about May 7, 2012, Harrison was convicted in the Court of Common Pleas of Allegheny County of the offenses of Receiving Stolen Property and Firearms Not to be Carried without a License, which are both crimes punishable by imprisonment for terms exceeding one year. Following that conviction, on or about Jan. 21, 2016, Pittsburgh Police officers patrolling Zone 6 conducted a traffic stop of a car in which the defendant was a passenger. During the stop, officers recovered a loaded, .9 mm Ruger pistol from the defendant’s hoodie pocket.
Judge Bissoon scheduled sentencing for Dec. 19, 2016. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Pending sentencing, the court continued the defendant’s detention.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Pittsburgh Police Department conducted the investigation that led to the prosecution of Harrison.
Pikeville Man Charged with Possessing Explosive Device After Device Failed to Detonate CarRead the Press Release
Mitchell Oakes, 41, of Pikeville, Tenn., was charged Saturday with possessing an explosive device and being a convicted felon in possession of an explosive device, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
Oakes was charged in a federal criminal complaint, after a live explosive device was found Saturday, attached to a vehicle parked at the National Healthcare Corporation (NHC), Cool Springs facility in Franklin, Tenn.
“As with so many cases in this district, anytime an incident requires a coordinated response by local, state and federal law enforcement, our law enforcement partners come together and bring a rapid conclusion to an incident which ensures the safety and security of our communities,” said U.S. Attorney David Rivera. “I commend the agencies involved here for their cooperation and swift action in identifying and arresting the offender.”
According to the complaint, a nurse at the facility arrived at her car in the parking lot, after ending her shift at 7:00 a.m. on Saturday. When she opened the car door, she discovered a device attached to the inside of the driver’s door. She noticed the device had wires attached to it and immediately believed it to be an explosive device.
Subsequent investigation by local, state and federal law enforcement, determined the device was in fact a live explosive. Law enforcement explosive specialists moved the device to a safe area, where it exploded during an attempt to render the device safe.
Further investigation by law enforcement officials determined that the apparent intended victim was estranged from her husband, Mitchell Oakes, and had obtained an Order of Protection against him on June 10, 2016, in Chesapeake City, Virginia. She also told law enforcement officials that Oakes had extensive knowledge and experience in manufacturing and using explosive materials and that she had received a threatening phone call from him earlier in the week.
Law enforcement officials were able to analyze the cell phone GPS data of Oakes’ phone and determined that the phone travelled from the Pikeville, Tenn. area to the immediate area of the NHC facility in Franklin, Tenn. and returned to the Pikeville area during the time period surrounding the incident.
According to the complaint, in January 2007, Mitchell Oakes was previously convicted of solicitation to commit second degree murder in Cumberland County, Tenn. and had been sentenced to four years in prison. Oakes was also convicted of being a felon in possession of a firearm in Bledsoe County, Tenn. in 2014.
If convicted of these offenses, Oakes faces up to 10 years in prison on each charge.
A criminal complaint is merely an accusation and is not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the FBI; the Tennessee Highway Patrol; the Tennessee Bureau of Investigation and the Franklin Police Department. Assistant U.S. Attorney Van Vincent is prosecuting the case.
Pennsylvania Woman Charged with Coercing Members of Church Ministry into Forced Labor and Pocketing Their EarningsRead the Press Release
CHICAGO — A federal grand jury in Chicago has indicted the self-appointed bishop of a Pennsylvania ministry for allegedly collecting bogus travel-agent fees from hotels where her church members worked as desk clerks.
The bishop, TRACIE DICKEY, instructed the church members on how to have the hotels pay reservation-commission fees to a purported travel agency operated by Dickey, according to the indictment. From 2005 to 2013 the hotels paid approximately $130,000 in commissions to a bank account controlled by Dickey, even though her travel agency didn’t exist and couldn’t have booked the reservations on behalf of hotel guests, the indictment states.
It was further part of the scheme that Dickey emotionally and physically abused members of her faith-based organization, Deliverance Tabernacle Ministries, to coerce them into following its rules and remitting their earnings to Dickey or the church, according to the indictment. Dickey’s tactics included starving and humiliating church members, and threatening that God would harm their family members if they didn’t comply, the indictment states.
During the same eight-year period, Dickey collected $280,000 in wages earned at the hotels by four members of her ministry, according to the indictment. At Dickey’s direction, the wages were directly deposited into Dickey’s personal bank account or one of the ministry accounts controlled by Dickey, the indictment states.
Dickey, also known as “Tracie Williams,” 48, of Pittsburgh, Pa., is charged with three counts of wire fraud and one count of labor trafficking. The indictment seeks $410,000 in illegally derived proceeds.
Dickey has been in federal custody since her arrest in Dallas, Texas, in July. She is scheduled to be arraigned in federal court in Chicago on Sept. 13, 2016, at 1:30 p.m., before U.S. District Judge Sara L. Ellis.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The U.S. Attorney’s Office in the Northern District of Texas provided assistance in the case.
The case was investigated by the Cook County Human Trafficking Task Force, a multi-disciplinary unit that brings together law enforcement and social service agencies to combat human trafficking. More information about the Task Force can be found on its website: http://www.cookcountytaskforce.org/
Each count of the indictment is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorney Bethany Biesenthal.
Indictment
Omaha Man Sentenced to Five Years in Prison for Possessing Child PornographyRead the Press Release
Ronald L. Worthington, Jr., 41, was sentenced today in federal court in Omaha, Nebraska, for possessing child pornography. The Honorable Joseph F. Bataillon imposed a sentence of 60 months. There is no parole in the federal system. After his release from prison, Worthington will begin a five-year term of supervised release and will be required to register as a sex offender.
On June 23, 2015, agents of Homeland Security Investigations spoke with Worthington about images uploaded to a child pornography website in 2013. Worthington admitted to accessing the image-sharing site and indicated that he had viewed child pornography the night before the agents came to his house. He consented to a search of his home. Agents recovered multiple CDs containing a total of 3 videos and 422 images of child pornography.
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 United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (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.
This case was investigated by Homeland Security Investigations.
Nevada Stock Promoter Admits Role in $33 Million Microcap Stock Manipulation SchemeRead the Press Release
NEWARK, N.J. – A Henderson, Nevada, man today admitted his role in a stock market manipulation scheme that artificially inflated the stock price of four publicly traded companies through manipulative trading and other fraudulent means, U.S. Attorney Paul J. Fishman announced.
Nathan Montgomery, 35, pleaded guilty today before U.S. District Judge Jose Linares in Newark federal court to an information charging him with conspiracy to commit securities fraud.
According to the documents filed in this case and statements made in court:
From 2008 through 2010, Montgomery, a penny stock promoter, participated in an extensive “pump-and-dump” scheme in which he and others fraudulently inflated the prices of certain shares in order to sell them later at artificially inflated prices. The scheme involved four public companies: BioNeutral Group Inc. (BONU), NXT Nutritionals Holdings Inc. (NXTH), Mesa Energy Holdings Inc. (MSEH), and Clear-Lite Holdings Inc. (CLRH) (collectively, the “Target Companies”).
As part of the scheme, Montgomery and others first obtained control over large blocks of the free trading shares of the Target Companies. Next, Montgomery and others “pumped” the price of those shares by, among other things, engaging in manipulative trading of the stocks of the Target Companies and disseminating promotional materials encouraging others to purchase them. After pumping the stocks, Montgomery and the other conspirators “dumped” them by selling large volumes of the Target Companies’ stock to victim investors. The target companies’ stock price would then drop, resulting in losses to the victims.
In order to fraudulently inflate the price and volume of the Target Companies’ stocks, Montgomery paid cash kickbacks to Donald Toomer, an investment advisor in Las Vegas, so that Toomer would purchase the Target Companies’ stock on behalf of his clients. The purpose of those purchases was to, among other things, create the false appearance of market interest and demand in the stock; build trading volume that would be attractive to potential investors who would later receive promotional materials about the stock; and generate income to fund the promotional campaigns, including email blasts and newsletters, that occurred in the later phases of the scheme. Additionally, Montgomery and other conspirators engaged in coordinated trading of the Target Companies’ stock using various brokerage accounts that they owned or controlled, including the accounts of friends, family and other third parties.
The scheme collectively generated approximately $33 million in illicit trading proceeds, of which Montgomery received approximately $20 million.
The conspiracy charge to which Montgomery pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for Dec. 20, 2016.
On Dec. 15, 2015, Samuel DelPresto of Holmdel, New Jersey, pleaded guilty to one count of conspiracy to commit securities fraud for his role in the scheme. On Dec. 21, 2015, a federal grand jury returned a five-count indictment against Toomer charging him with conspiracy to commit securities fraud and investment adviser fraud and several counts of securities fraud and investment adviser fraud. That matter is currently pending before Judge Linares. A trial date has not yet been set.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, for the investigation leading to Montgomery’s guilty plea. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Andrew Calamari, for its assistance in this matter.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Economic Crimes Unit.
Defense Counsel: Mark Bailus Esq., Las Vegas, Nevada, Marvin G. Pickholz Esq., New York, William B. Pollard III Esq., New York
Mount Dora Woman Charged with TRICARE FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Bobbi Gibson (45, Mount Dora) with 30 counts of wire fraud. If convicted, she faces a maximum penalty of 20 years in federal prison on each count. The indictment also notifies Gibson that the United States is seeking a money judgment in the amount of at least $1.5 million, the proceeds of the wire fraud scheme.
According to the indictment, Gibson, who owned and operated Agency for Behavioral Services, Inc., defrauded the Department of Defense’s TRICARE program by fraudulently certifying that paraprofessional providers she employed had received the required 40 hours of classroom training in Applied Behavior Analysis techniques. Gibson then assigned these unqualified individuals to provide one-on-one autism services to military family members diagnosed with Autism Spectrum Disorders, and caused TRICARE to be billed for these services.
“This indictment is yet another example of the continuing commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the Department of Defense (DoD) health care program,” said Special Agent in Charge John F. Khin, Southeast Field Office. "As one of our top priorities, DCIS aggressively investigates health care fraud that harms the DoD, to ensure the best use of precious taxpayer dollars needed to provide critical care for our Warfighters, their family members, and military retirees."
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Defense Criminal Investigative Service. It will be prosecuted by Assistant United States Attorney Bob Mosakowski.
Modesto Man Pleads Guilty to Staging Car Accidents in a Scheme to Defraud Insurance CompaniesRead the Press Release
FRESNO, Calif. — Alfonso Apu, 48, of Modesto, pleaded guilty today to conspiracy to commit mail fraud and admitted that he staged car accidents in a scheme to defraud insurance companies, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, from at least October 2011 until August 2014, Apu conspired with at least six other individuals to stage dozens of car accidents and submit false claims to insurance companies seeking compensation. Apu and other defendants staged accidents with two or three vehicles that caused $5,000 to $10,000 in damage to each vehicle. After the staged collision, the defendants submitted a cover story to an insurer that concealed the true cause of the accident. The cover story used aliases, false identities, and false addresses for the defendants. The defendants used many different vehicles in the staged collisions by using false identities to register the vehicles and obtain insurance policies. They also recruited other individuals to allow their cars to be used in a staged accident and to make false claims under their insurance policies.
According to the plea agreement, as part of the scheme, the defendants offered to repair the recruited individual’s vehicle at automobile repair shops that they had access to or that were owned by co-defendants, usually performing cosmetic repair or none at all. It allowed them to repair damaged vehicles for an amount significantly less than the payment from an insurance company. In all, Apu caused at least $115,000 in false insurance claims.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Department of Insurance, Fraud Division. Assistant United States Attorneys Patrick R. Delahunty and Henry Z. Carbajal III are prosecuting the case.
Apu is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on December 12, 2016. On September 6, 2016, Cristopher Santiago Sanchez-Becerra, 32, of Stockton, pleaded guilty to the scheme and is scheduled to be sentenced on November 28, 2016. Apu and Sanchez-Becerra each face a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentences, 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.
Charges are pending against co-defendants Juan Ortiz Rivas, 39, of Ceres; Oscar Diaz Landa, 46, of San Jose; Victor Hugo Soriano-Villafan, 26, of Modesto; Liobigildo Vargas, 46, of Turlock; Juan Marquez Cadenas, 30, of Patterson. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Massachusetts Man Sentenced to 15¾ Years on Cocaine Conspiracy ChargeRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Richard W. Szpyt, a/k/a “Zip,” 57, of Haverhill, Massachusetts, was sentenced today in U.S. District Court by Judge George Z. Singal to 15¾ years in prison and five years of supervised release for conspiracy to possess with the intent to distribute and to distribute more than five kilograms of cocaine. Szpyt pled guilty to the charge on June 2, 2016.
According to court records, from 2006 through about December 2007, co-conspirator Ramon Dellosantos supplied cocaine to Szpyt on numerous occasions. Szpyt distributed it to dealers operating in Maine who sold it to customers in Maine. Dellosantos pled guilty to the same charge on May 24, 2016 and awaits sentencing.
Szpyt and Dellosantos were arrested in 2008 along with 18 other people and charged with selling marijuana and cocaine to customers in Maine. According to evidence introduced at that trial, Szpyt was president of the Iron Horsemen Motorcycle Club and he used other members of the club to distribute the drugs. A jury convicted Szpyt and Dellosantos in May 2009 on charges of conspiracy to distribute marijuana and more than five kilograms of cocaine. In August 2011, their convictions were overturned by the U.S. Circuit Court of Appeals for the 1st Circuit. They were re-indicted on December 14, 2011. To date, 12 other conspirators have been sentenced.
The case was investigated by the U.S. Drug Enforcement Administration and the York County Sheriff’s Office.
Man Sentenced to 40 Years in Prison for Kidnapping Teenagers in Sacramento and Transporting Them to Reno for Sex WorkRead the Press Release
RENO, Nev. – A Reno man who kidnapped a teenage boy and girl in Sacramento, Calif., in July 2012, and repeatedly raped the girl in both Sacramento and later in Reno, was sentenced today to 40 years in prison and lifetime supervised release, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
John Thomas Abrams, aka Buck, aka David George Garnett, aka John McDonald, aka David Blackwell, 50, was sentenced by U.S. District Judge Miranda M. Du. Abrams was convicted by a jury in February of two counts of kidnapping and one count of transportation of a minor for illegal sexual activity. There is no parole in the federal system.
“We have dedicated more resources than ever to catching and prosecuting these predators,” said U.S. Attorney Bogden. “We are working with local, state and federal partners in Nevada and other states to make sure they face the criminal justice system.”
Between about July 12 and July 22, 2012, Abrams kidnapped the 15-year-old girl and boy in the Sacramento area, and held them. While in Sacramento, Abrams repeatedly sexually assaulted the girl. After several days in Sacramento, Abrams then transported them to Reno with the intent that the girl engage in illegal sexual activity, where he again raped the girl before they were able to escape.
The investigation was conducted by the FBI in Sacramento and Reno and the Sacramento Police Department. The case was prosecuted by Assistant United States Attorneys Carla Higginbotham and Sue Fahami.
The case was brought as part of Project Safe Childhood (PSC), 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 U.S. Attorneys' Offices and the Child Exploitation and Obscenity Section, PSC 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."
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Man Convicted at Trial on Offenses Related to a Stolen Identity Refund Scheme is Sentenced to 57 Months in Federal PrisonRead the Press Release
DALLAS — Angelbert Evoulou was sentenced today by U.S. District Judge Sam A. Lindsay to 57 months in federal prison following his conviction at trial in May 2016 on several offenses related to a stolen identity refund scheme, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, the jury convicted Evoulou of Conspiracy, Theft of Public Funds, Interstate Transportation of a Stolen Security, and Aggravated Identity Theft.
The government presented evidence at trial that during the investigation of a stolen refund ring, an individual advised an undercover special agent with Internal Revenue Service (IRS) Criminal Investigation that he could sell him an IRS refund check of approximately $595,000. After confirming the refund check was genuine and then arranging the purchase, two undercover agents met with Evoulou and three coconspirators at an IHOP restaurant in Dallas at 1:00 in the morning on May 16, 2013. Evoulou and the coconspirators had flown in from Atlanta several hours earlier with the check. At the restaurant, Evoulou pulled out a magazine in which he had concealed the check. To prove legitimacy of the refund check, he gave the undercover agent screen shots from an internal IRS data base showing details about the victim taxpayer. When two of the conspirators stepped outside to retrieve the purchase money to pay the undercover agents, IRS agents converged to arrest the participants. Evoulou managed to elude arrest by exiting the restaurant with a group patrons of the restaurant.
The other conspirators were arrested and charged with federal offenses to which they pleaded guilty and were sentenced. Evoulou was subsequently identified, indicted, and arrested in March 2015.
IRS Criminal Investigation investigated the case. Assistant U.S. Attorneys Christopher Stokes and Camille Sparks prosecuted.
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Man Arrested at Motel 6 in Addison is Sentenced to 110 Months in Federal Prison and Ordered to pay More Than $3.5 Million Restitution in Stolen Tax Refund SchemeRead the Press Release
DALLAS — Farai Marunda was sentenced today by U.S. District Judge David C. Godbey to 110 months in federal prison and ordered to pay $3,519,925 in restitution to the Internal Revenue Service (IRS) following his guilty plea last year to one count of access device fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
According to the factual resume filed in the case, when officers with the Addison Police Department detected the odor of marijuana coming from a particular room at the Motel 6 on Belt Line Drive in Addison, Texas, Marunda spoke with the officers and gave them consent to search the room for marijuana. While the officers spoke with others who were in the room, Marunda removed two debit cards from his wallet and hid them under a folded mat by the edge of the bath tub. Marunda, according to the factual resume, also had a briefcase in the room, and in it officers found a small zippered case containing five thumb drives, two HP laptop computers, a T-Mobile hotspot device, six Visa debit cards in the names of six people, two blank Western Union Visa debit cards, a Wal-Mart receipt listing the purchase of a green dot moneypak prepaid card, and a listing that contained handwritten names, Social Security numbers, dates of birth, addresses, email addresses, and credit card account numbers.
Pursuant to a federal search warrant for Marunda’s computers and hard drives, special agents with IRS Criminal Investigation found hundreds of computer files containing thousands of items of personal identifying information. The devices also contained tax filing software with tax return filing information for tax years 2010, 2011 and 2012.
IRS Criminal Investigation and the Addison Police Department investigated the case. Assistant U.S. Attorney Christopher Stokes was in charge of the prosecution.
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Lemoore Man Sentenced to 20 Years in Prison for Receipt and Distribution of Child PornographyRead the Press Release
FRESNO, Calif. — Robert Wallace Smith, 39, of Lemoore, was sentenced today by United States District Judge Dale A. Drozd to 20 years in prison, to be followed by 20 years of supervised release for receipt and distribution of child pornography, Acting United States Attorney Phillip A. Talbert announced.
On May 27, 2016, a federal jury found Smith guilty after a four-day trial. According to evidence presented at trial, Smith first came to the attention of law enforcement after he made child pornography available for distribution online using a file-sharing program. On December 23, 2011, agents executed a federal search warrant at Smith’s residence and seized his laptop computer, which contained a collection of 388 videos and pictures of children being sexually abused.
At trial, Smith took the stand, denying that he had any knowledge of the content on the computer. At the sentencing hearing, Judge Drozd found that Smith had obstructed justice by offering false testimony at his trial.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorneys Megan A. S. Richards and John R. Edwards are prosecuting the case.
Smith has been in custody since his trial in May 2016.
LRGP Gang Member Sentenced on Rico and Crack Cocaine ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Dayshawn Brazier, 25, of Buffalo, NY, who was convicted of RICO conspiracy and conspiracy to possess with intent to distribute and to distribute 280 grams or more of crack cocaine, was sentenced to 140 months in prison by U.S. District Judge Richard J. Arcara.
According to Assistant U.S. Attorneys Thomas S. Duszkiewicz and Joel L. Violanti, who handled the case, Brazier was a member of L.R.G.P., a violent street gang named after the East Side streets of Lombard, Rother, Gibson and Playter. The defendant sold crack cocaine from a “trap house” on Sobieski Street in Buffalo utilized by gang members. The house was run by Brazier’s cousin and L.R.G.P. leader Dewayne Gray who was sentenced to 188 months in prison on September 9, 2016.
The defendant is one of 19 L.R.G.P. members and associates indicted and convicted in this case. On May 8, 2015, another 11 L.R.G.P. members and associates were also indicted on crack cocaine charges. The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.
Today’s sentencing is the culmination of an investigation by Federal Bureau of Investigation’s Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The Task force includes the Amherst Police Department; Buffalo Police Department; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Cheektowaga Police Department; Erie County Sheriff’s Office; Hamburg Police Department; Lancaster Police Department; Niagara Frontier Transportation Authority; New York State Department of Correctional Services; New York State Police; U.S. Border Patrol; and U.S. Immigration and Customs Enforcement–Homeland Security Investigations.
LRGP Gang Member Sentenced on Rico AndRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Dayshawn Brazier, 25, of Buffalo, NY, who was convicted of RICO conspiracy and conspiracy to possess with intent to distribute and to distribute 280 grams or more of crack cocaine, was sentenced to 140 months in prison by U.S. District Judge Richard J. Arcara.
According to Assistant U.S. Attorneys Thomas S. Duszkiewicz and Joel L. Violanti, who handled the case, Brazier was a member of L.R.G.P., a violent street gang named after the East Side streets of Lombard, Rother, Gibson and Playter. The defendant sold crack cocaine from a “trap house” on Sobieski Street in Buffalo utilized by gang members. The house was run by Brazier’s cousin and L.R.G.P. leader Dewayne Gray who was sentenced to 188 months in prison on September 9, 2016.
The defendant is one of 19 L.R.G.P. members and associates indicted and convicted in this case. On May 8, 2015, another 11 L.R.G.P. members and associates were also indicted on crack cocaine charges. The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.
Today’s sentencing is the culmination of an investigation by Federal Bureau of Investigation’s Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen. The Task force includes the Amherst Police Department; Buffalo Police Department; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Cheektowaga Police Department; Erie County Sheriff’s Office; Hamburg Police Department; Lancaster Police Department; Niagara Frontier Transportation Authority; New York State Department of Correctional Services; New York State Police; U.S. Border Patrol; and U.S. Immigration and Customs Enforcement–Homeland Security Investigations.
Kanawha County man pleads guilty for role in California-to-West Virginia drug conspiracyRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man pleaded guilty today for his role in a California-to-West Virginia methamphetamine conspiracy, announced United States Attorney Carol Casto. Brian Ashby, 38, entered his guilty plea to conspiracy to distribute 50 grams or more of methamphetamine.
Ashby admitted that in December 2015, he received approximately five pounds of crystal methamphetamine that he acquired from a source in California. Ashby further admitted that he distributed the methamphetamine in the Charleston area. On January 11, 2016, law enforcement executed a search warrant on Ashby’s property and located over 15 grams of crystal methamphetamine. Ashby also admitted that near the end of February 2016, he traveled to Louisville to obtain 10 pounds of crystal methamphetamine and paid approximately $40,000 to an individual for the drugs. Ashby additionally admitted that he attempted to obtain another 10 pounds of crystal methamphetamine in March 2016. Law enforcement later seized $70,000 in cash from Ashby that he intended to use in that drug deal.
Ashby faces at least five and up to 40 years in federal prison when he is sentenced on December 13, 2016.
This prosecution is the result of a multi-agency investigation that led to an eight-count indictment implicating 14 defendants, including Ashby. All of Ashby’s codefendants are presumed innocent unless and until proven guilty in a court of law. As part of this conspiracy, Rafael Garcia Serrato, of Los Angeles, Cesar Garcia, also of Los Angeles, Daniel Ortiz-Rivera, a Mexican national, Velarian Sylvester Carter, of Beckley, and Miguel Tafolla-Montoya, a Mexican national, previously pleaded guilty to conspiring to distribute more than 50 grams of methamphetamine. Serrato and Garcia are scheduled to be sentenced on December 6, 2016. Ortiz-Rivera is scheduled to be sentenced on October 11, 2016. Carter is scheduled to be sentenced on October 13, 2016. Tafolla-Montoya is scheduled to be sentenced on December 8, 2016. Also, as part of this conspiracy, Marco Antonio Bojorquez-Rojas, a Mexican national, pleaded guilty to interstate travel in furtherance of a drug crime, and is scheduled to be sentenced on December 7, 2016. Additionally, three women who were used as mules to transport methamphetamine, Danielle Dessaray Estrada, of Los Angeles, Kelly Newcomb, of Nevada, and Cara Linn Monasmith, also of Nevada, pleaded guilty to interstate travel in furtherance of a drug crime. Estrada and Newcomb are scheduled to be sentenced on October 6, 2016. Monasmith is scheduled to be sentenced on November 8, 2016.
The FBI, Homeland Security Investigations, the United States Postal Inspection Service, the Charleston Police Department, and the Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of these prosecutions. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Justice Department Announces New Steps to Advance and Strengthen Forensic ScienceRead the Press Release
Changes Include New Code of Professional Responsibility for Practice of Forensic Science
The Department of Justice announced new steps today as part of its ongoing commitment to strengthening and advancing forensic science. The department will implement a number of steps that will promote professional responsibility among forensics practitioners, institute best practices and advance the relationship between the academic research of forensic science and implementation in the field.
“Today’s announcement marks yet another step forward in the department’s efforts to strengthen the practice of forensic science in our nation’s laboratories and courtrooms,” said Deputy Attorney General Sally Q. Yates. “We are continually looking at ways to ensure that forensic evidence is collected, analyzed and presented in a responsible and scientifically rigorous manner.”
The new policies include adopting a new code of professional responsibility that builds upon existing policies and accreditation requirements for departmental forensic examiners and laboratories. The department believes the code will improve education and guidance on professional responsibility while establishing a process for identifying and addressing violations of professional conduct.
Department forensic laboratories will also review their policies and procedures to ensure that forensic examiners are not using the expressions “reasonable scientific certainty” or “reasonable (forensic discipline) certainty” in their reports or testimony. Department prosecutors will also abstain from using these expressions when presenting forensic reports or questioning forensic experts in court unless required by a judge or applicable law. This decision complements the department’s efforts, announced earlier this year, to provide better guidance to forensic examiners and federal prosecutors on how to properly characterize the strength of forensic evidence in the courtroom.
The department also announced policies to implement greater transparency and access to forensic laboratory quality assurance documents and a plan to explore a grant funding of multiyear post-doctoral fellowships at federal, state and local forensic science service providers and forensic medicine service providers.
The new policies arose out of recommendations made by the National Commission of Forensic Science, which was established to advance the field of forensic science and make suggestions to the Attorney General on how to ensure that reliable and scientifically valid evidence is used when solving crimes. The Attorney General’s decision to implement several of the commission’s recommendations was announced at a meeting of the commission today. A memo was also sent to all department component heads directing the implementation of the recommendations. Additional information on the department’s ongoing work to strengthen forensic science can be found at www.justice.gov/forensics.
Judge Sentences Pittsburgh Felon to 16 Years in Prison for Illegally Possessing PistolRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 192 months imprisonment, to be followed by five years of supervised release on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Atiba Warren, 36, of Pittsburgh, Pennsylvania.
According to information presented during the trial of this case, on or about October 23, 2012, Warren, being a convicted felon, illegally possessed a Taurus, model “The Judge”, .45LC/.410 caliber pistol. The firearm’s serial numbers were obliterated at the time Mr. Warren possessed it. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year to possess a firearm.
Assistant United States Attorney Katherine A. King prosecuted this case on behalf of the government. This case was prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Police Department for the investigation leading to the successful prosecution of Warren.
Huntington man and woman plead guilty for roles in drug ringRead the Press Release
HUNTINGTON, W.Va. – A Huntington man and woman who participated in a multistate drug ring pleaded guilty today to federal crimes, announced United States Attorney Carol Casto. Parker Wyatt Mays, 27, entered his guilty plea to conspiracy to distribute marijuana. Tanisha Lynette Wooding, 37, entered her guilty plea to possession with intent to distribute crack.
Mays admitted that from the summer of 2014 to May 2016, he conspired with others to distribute marijuana in the Huntington area. Mays and others regularly acquired large quantities of marijuana from a source in California. The marijuana was transported to Huntington using vehicles and through the mail. Once in Huntington, Mays and others distributed the marijuana to customers and pooled the proceeds to acquire additional marijuana. Mays admitted that the group distributed up to 400 kilograms of marijuana during the conspiracy.
Wooding admitted that she was in possession of crack on May 18, 2016, when agents executed a search warrant at her residence located on the 1800 block of 9th Avenue in Huntington. During the search, Wooding told agents that she had approximately two ounces of crack stored in the residence and then provided the drugs to the agents. Wooding further admitted to conspiring with others to distribute crack in Huntington for approximately one year. During this period, Wooding was regularly provided crack from a source. After Wooding sold the crack, she returned the proceeds to the source and received additional quantities of crack. Wooding also admitted that she was responsible for the distribution of at least 840 grams of crack during the conspiracy.
Wooding faces up to 20 years in federal prison when she is sentenced on January 3, 2017. Mays faces up to 5 years in federal prison when he is sentenced on January 3, 2017.
These prosecutions arose out of a long-term investigation led by the Drug Enforcement Administration, with assistance from the West Virginia State Police, the Putnam County Sheriff’s Department, the Huntington Police Department, the Huntington FBI Drug Task Force, the Ohio Highway Patrol, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Postal Inspection Service, which resulted in charging 12 defendants for offenses related to the distribution of heroin, crack, marijuana and alprazolam in Huntington.
Two defendants have previously pleaded guilty for their roles in this drug ring. Matthew Michael Meadows and Arthur James Canada pleaded guilty to federal drug charges and are scheduled to be sentenced on September 26, 2016. All of the other defendants charged in the prosecution of this drug ring are presumed innocent unless and until proven guilty in a court of law.
Assistant United States Attorney Joseph F. Adams is in charge of the prosecutions. The plea hearings were held before Chief United States District Judge Robert C. Chambers.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Hudson County, New Jersey, Man Sentenced to 22 Years in Prison for Production and Distribution of Child PornographyRead the Press Release
TRENTON, N.J. – A Hudson County, New Jersey, man was sentenced today to 264 months in prison for posing as a teenage boy, and at times a teenage girl, to solicit underage females online to produce images of themselves engaged in sexually explicit conduct, possessing, and distributing those images to others, U.S. Attorney Paul J. Fishman announced.
Erik Vanderbeck, 49, of Bayonne, New Jersey, was previously convicted of two counts of production of child pornography, one count of distribution of child pornography and one count of possession of child pornography. The jury deliberated approximately one hour following a one-week trial before U.S. District Judge Freda L. Wolfson in Trenton federal court. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and the evidence at trial:
Vanderbeck allegedly met various underage girls in Internet chat rooms while pretending to be a teenage boy, and at times, a teenage girl. Over the course of their correspondence, Vanderbeck would ask them to send him nude images of themselves. Once Vanderbeck received nude images, he would threaten to post the victim’s nude images online unless she sent more. In some cases, Vanderbeck would send nude images that he had received from certain of his victims to other minors to induce them to self-produce child pornography. When one of the victims threatened to report Vanderbeck to the authorities, he replied, “The cops will never catch me.”
Law enforcement officers executed a search warrant at Vanderbeck’s home in Bayonne on July 22, 2014. They recovered computer equipment belonging to Vanderbeck containing images appearing to be of child pornography. Several of his victims said they produced images of child sexual abuse out of fear and in response to his threats.
In addition to the prison term, Judge Wolfson sentenced Vanderbeck to 10 years of supervised release.
U.S. Attorney Fishman credited postal inspectors with the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge James Ball in Newark, and the Bayonne Police Department, under the direction of Chief Drew Niekrasz, with the investigation leading to the today’s sentencing. He also thanked the Missouri Internet Crimes Against Children Task Force for its role in the investigation.
The government is represented by Assistant U.S. Attorneys Danielle Alfonzo Walsman and Danielle Corcione of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Joshua Markowitz Esq., Lawrenceville
Heroin and Opioid Awareness Week September 19-23, 2016Read the Press Release
On Wednesday, September 21, 2016, the United States Attorney’s Office will host a community forum designed to highlight a unique, realistic perspective on the impact of prescription drug and opioid abuse. The event will be held from 6:00-8:00PM, at the Elks Theater, located at 512 6th Street in downtown Rapid City, South Dakota.
The event will feature a screening of “Chasing the Dragon: The Life of an Opiate Addict” - a documentary film collaboratively produced by the Federal Bureau of Investigation and the Drug Enforcement Administration in response to increasing prescription painkiller and opioid drug abuse across the nation. The film, which is designed to better educate students and young adults about the dangers of these drugs and the tragic consequences that often accompany addiction, debuted nationally in February 2016. According to data in the film, nearly 46,000 people die from drug use annually in the United States, and about half of those deaths are related to opiate drug abuse. At least 78 Americans die every day from an opioid overdose – it affects all ages, all socio-economic groups, all over the country, including Rapid City.
The movie screening will begin at 6:00PM on September 21, in the Elk’s main theater. The documentary is approximately one-hour long, and will be followed by an interactive panel discussion with representatives from law enforcement, medical response, and mental health.
- Drug Enforcement Administration
- Pennington County State’s Attorney
- Psychologist/Counselor
- Rapid City Fire Department/EMS
Individuals and community groups are encouraged to attend. The event is free and open to the public.
For further information and resources, visit DEA’s website: https://getsmartaboutdrugs.com
Hartford Man Pleads Guilty to Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that KUWAN RUSS, 37, of Hartford, pleaded guilty today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven to possession of a firearm by a convicted felon.
According to court documents and statements made in court, on July 25, 2015, RUSS was stopped by Hartford Police as he operated a vehicle in Hartford. During a pat-down, an officer located a firearm in RUSS’s front right pants pocket. The firearm was a Glock, Model 26, 9 millimeter pistol with a magazine that contained 10 rounds.
Prior to September 2015, RUSS had sustained felony convictions for offenses including robbery in the first degree, criminal attempt to commit assault in the first degree, strangulation in the second degree, and weapons offenses.
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.
RUSS is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on December 5, 2016, at which time he faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. This case is being prosecuted by Assistant U.S. Attorneys Brian Leaming and Jennifer Laraia.
Halfway Man Sentenced to 15 Years for Meth Conspiracy, FirearmsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Halfway, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine in Greene, Polk, Christian, Jasper, Laclede and Webster counties and for illegally possessing firearms.
Joseph R. Allen, 42, of Halfway, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole. Allen also has forfeited a 2005 Mazda 6 and eight firearms, all of which were seized by law enforcement officers and had been used to commit the offenses.
On May 16, 2016, Allen pleaded guilty to participating in a conspiracy to distribute methamphetamine and to possessing firearms in furtherance of a drug-trafficking crime.
Beginning in 2012, the Drug Enforcement Administration, assisted by other agencies, began investigating a large-scale methamphetamine distribution network in southwest Missouri involving several sources of supply both inside and outside of the state. Co-defendant Kenna Harmon, 37, of Republic, Mo., has pleaded guilty to being the leader of the drug-trafficking conspiracy along with her husband, Daniel Harmon. Daniel Harmon was indicted in the Eastern District of Missouri and pleaded guilty to possessing methamphetamine with the intent to distribute and to being a felon in possession of a firearm.
In total, the Harmon drug-trafficking organization was responsible for the distribution of over 45 kilograms of methamphetamine from June 1, 2013, through Nov. 29, 2014. The Harmons obtained pound amounts of methamphetamine from sources in Kansas City and St. Louis, Mo., and in Oklahoma for distribution in the Springfield, Mo., area.
Allen is the brother of Kenna Harmon. Allen admitted that he accompanied Kenna Harmon when she distributed methamphetamine and that he protected the property in Polk County that was used to store methamphetamine. Allen possessed several firearms while providing protection to the property.
On Nov. 28, 2014, federal agents executed a federal search warrant at a property in Halfway. Kenna Harmon owns the property, where she has built two residences – one for herself and one where Allen resided. Inside Allen’s residence, agents discovered five handguns, four of which were located inside Allen’s vehicle in the garage and one on the kitchen table. Agents also discovered three rifles in a spare bedroom.
Agents discovered a false return vent inside the master bedroom, which contained a suitcase. Agents opened the suitcase and discovered inside two bundles, each containing approximately one pound of methamphetamine, a total of 900 grams. Also inside the suitcase, agents discovered approximately four pounds of high-grade marijuana.
This case is being prosecuted by Assistant U.S. Attorneys Randall D. Eggert, Nhan D. Nguyen and Cynthia J. Hyde. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Springfield, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Four Gang Members Sentenced for 2015 Hampton ShootingRead the Press Release
NEWPORT NEWS, Va. – Raquille Jackson, 22, and Eric Edmunds, II, 20, both of Newport News, were sentenced today to 220 months and 240 months, respectively, on charges of attempted murder in aid of racketeering and discharge of a firearm in commission of a violent crime. Co-defendants, Raiquan Turner, 20, and Quantavius Durham, 19, also of Newport News, were previously sentenced (see chart below).
“Violent gangs have no place in this community,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “These sentences send a clear message to any other gang members considering committing violent crimes here in the Tidewater: You will be caught and you will be prosecuted. Together with our local law enforcement partners we will continue to aggressively pursue and prosecute these cases at every opportunity.”
According to the statement of facts filed with the plea agreement, the defendants were all members or associates of the 36th Street Bang Squad, a hybrid criminal street gang. On June 5, 2015, the men followed a Hampton Public School bus looking for a rival gang member. After not locating the rival, whom they suspected of killing a 36th Street Bang Squad member a few days earlier, the men returned to their vehicle which was parked at the Sonic Restaurant on Floyd Thompson Boulevard. After entering the vehicle, the men observed rival gang members walking toward the restaurant. As the rivals approached, Jackson and Edmunds opened fire. Edmunds used a firearm provided to him by Durham. Hampton Police quickly stopped the fleeing vehicle only miles from the location. All four defendants were removed from the vehicle. Ballistic tests of the firearms recovered from the vehicle matched casings left at the scene of the shooting, and all four men were positive for gunshot residue.
All four defendants have pleaded guilty and have been sentenced.
Name
Date of Sentencing
Sentence
Raiquan Turner
June 6
240 months
Quantavius Durham
July 19
210 months
Eric Edmunds, II
September 12
240 months
Raquille Jackson
September 12
220 months
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Terry L. Sult, Chief of Hampton Police Division, made the announcement after Edmunds and Jackson were sentenced by U.S. District Judge Robert G. Doumar. Managing Assistant U.S. Attorney Howard Zlotnick and Special Assistant U.S. Attorney Amy E. Cross are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15-cr-80.
Former State Assemblyman Tom Calderon Sentenced to Federal Prison for Laundering Bribe Payments Made to His BrotherRead the Press Release
LOS ANGELES – Thomas M. Calderon, a former member of the California State Assembly who became a political consultant, was sentenced this afternoon to one year and one day of incarceration after he pleaded guilty to money laundering for allowing bribe money to be funneled through his firm.
Tom Calderon was sentenced today by United States District Judge Christina A. Snyder, who ordered that the sentence be served half in federal prison and half in home detention. In addition to the period of incarceration, Judge Snyder ordered Tom Calderon to serve 100 hours of community service.
Tom Calderon, 62, of Montebello, pleaded guilty on June 6 to one count of money laundering and admitted that he agreed to conceal bribe payments coming from two undercover FBI agents by having the money go through his political consulting company, the Calderon Group.
The bribes were made to Tom Calderon’s brother, Ronald S. Calderon, who at the time was a California State Senator. Ron Calderon pleaded guilty on June 21 and admitted accepting bribes from the undercover agents and a businessman in exchange for performing official acts as a legislator. Ron Calderon, 59, also of Montebello, is scheduled to be sentenced by Judge Snyder next Monday, although he has asked to continue his sentencing date.
When he pleaded guilty, Tom Calderon specifically admitted that in 2013 he deposited a $30,000 bribe payment from an undercover agent into the Calderon Group’s bank account and then wrote a $9,000 check to Ron Calderon’s daughter.
“Tom Calderon was all too aware of the bribe payments to his brother and that his brother had agreed to a quid pro quo with the undercover agents,” said United States Attorney Eileen M. Decker. “Tom Calderon facilitated these bribe payments by helping to conceal his brother’s corrupt activities from the public.”
“Today's sentencing sends a message to those interested in using access to public office in order to reap personal benefits that they will be held responsible for their actions,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Mr. Calderon used his family ties to benefit personally at the expense of the constituents represented by his brother’s office.”
Tom Calderon and his brother were both indicted by a federal grand jury in 2014. Tom Calderon was charged with conspiring with his brother to commit money laundering and seven substantive counts of money laundering. The money laundering charge that Tom Calderon pleaded guilty to was count 22 in the indictment.
“IRS Criminal Investigation tirelessly untangled the web of illicit transactions that lead to Thomas Calderon being held accountable for his role in this scheme,” stated IRS Criminal Investigation’s Acting Special Agent in Charge, Anthony J. Orlando. “IRS CI remains committed to investigating those who engage in political corruption and tarnish our democratic system.”
The investigation into the Calderons was conducted by the Federal Bureau of Investigation and IRS Criminal Investigation.
This case is being prosecuted by Assistant United States Attorney Mack E. Jenkins of the Public Corruption and Civil Rights Section.
Former Opa Locka City Manager Pleads Guilty to Accepting BribesRead the Press Release
The former Opa Locka City Manager pled guilty this morning to accepting bribes in furtherance of an illegal municipal corruption scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
David Chiverton pled guilty to participating in a conspiracy against the laws of the United States, that is, Federal programs bribery and extortion under color of official right, in connection with his official duties as Opa Locka’s Assistant City Manager, and subsequently as City Manager, in violation of Title 18, United States Code, Section 371.
“In open court today, a former Opa Locka City Manager admitted under oath that he sold away his commitment to fairly administer the city’s services - for a personal profit,” stated U.S. Attorney Wifredo Ferrer. “It is imperative that public officials abide by the rules, policies and legal practices that are in place to prohibit any abuse of the public’s trust. Otherwise, corrupt officials will continue to find themselves the target of law enforcement prosecutions that seek federal penalties for their misconduct.”
“Corrupt officials – either elected or appointed - are on notice; if they breach the public’s trust through stealing or accepting bribes in the course of their official duties, they will be vigorously investigated,” said William J. Maddalena, Assistant Special Agent in Charge, FBI Miami. “The FBI will continue to investigate and hold accountable any public official who utilizes their position for personal again. We encourage anyone who may have information about corruption to come forward and report it. This information is vital to our work.”
According to the court record and statements made in open court, between March 2014 and March 2016, Chiverton agreed with an unnamed Opa Locka elected official (“Public Official A”), former Opa Locka Assistant Public Works Director Gregory Harris, and others, to use their official positions and authority with the City of Opa Locka to solicit, demand, and obtain thousands of dollars in illegal cash payments from businesses and individuals in exchange for taking official actions to assist and benefit those businesses and individuals in their dealings with the City of Opa Locka.
As explained in open court at the guilty plea, Public Official A would direct Chiverton, Harris, and other City of Opa Locka employees to assist the paying businesses and individuals by issuing occupational licenses; waiving, removing, and settling code enforcement matters and liens; initiating, restoring and continuing water service; and assisting with zoning issues. Public Official A would pay Chiverton, and also would tell the paying businesses and individuals to pay Chiverton directly in exchange for these official actions. Chiverton also directly and indirectly solicited and obtained illegal cash payments in exchange for official actions assisting businesses and individuals with the same types of issues as described above.
As admitted in open court at the guilty plea, over the course of a number of months, Chiverton, in conjunction with Public Official A and another co-conspirator, accepted over $5,000 in illegal cash payments from one Opa Locka business owner in connection with the issuance of an occupational license and the resolution of three code enforcement fines and $63,000 in liens that had been placed on the business owner’s property. In addition, Chiverton, at the direction and on behalf of Public Official A, accepted an illegal $2,500 cash payment from another Opa Locka businessman as partial payment for resolving the licensing and zoning issues connected with that individual’s business.
Chiverton is scheduled to be sentenced on November 21, 2016, in front of U.S. District Court Judge Cecilia M. Altonaga. He faces a maximum sentence of 5 years’ imprisonment and 3 years’ supervised release. The court may also impose a maximum fine of $250,000.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force. This case is being prosecuted by Senior Litigation Counsel Edward Stamm and Assistant United States Attorney Kimberly Selmore.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Manager at QVC Pleads Guilty to Wire Fraud, Mail Fraud and Money LaunderingRead the Press Release
PHILADELPHIA- Douglas Rae, 59, plead guilty today to wire fraud, mail fraud and money laundering for defrauding his employer, QVC, a television based retail company, announced United States Attorney Zane David Memeger.
Rae, while employed as a manager in the Lighting Department at QVC, concocted multiple schemes to falsely invoice his employer of approximately $1.8 million.
Rae faces a statutory maximum of 130 years’ imprisonment, a fine of $1.75 million, supervised release and a $700 special assessment. The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Denise S. Wolf
Former Judge-Disbarred Lawyer Sentenced to Prison for Federal Fraud ConvictionRead the Press Release
ALBUQUERQUE – A former New Mexico Workers’ Compensation Administrative Law Judge (ALJ) and disbarred lawyer was sentenced to federal prison today for her conviction on Social Security fraud and wire fraud charges, announced U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and Special Agent in Charge Robert Feldt of the Social Security Administration, Office of the Inspector General.
Juanita Roibal-Bradley, 61, of Albuquerque, N.M., was sentenced in U.S. District Court to 37 months in prison followed by three years of supervised release for defrauding the Social Security Administration (SSA) of more than $40,000.00 and an estate and its beneficiaries of almost $572,000.00. Roibal-Bradley was ordered to pay $17,863.40 in restitution to the SSA; the amount of restitution Roibal-Bradley will pay to the estate heirs will be determined by the court at a later time. Roibal-Bradley also was ordered to perform 40 hours of community service.
Roibal-Bradley was charged in a 23-count indictment on Sept. 10, 2015, with one count of defrauding the SSA, twelve counts of wire fraud and ten counts of money laundering. According to the indictment, between Sept. 2007 and March 2011, Roibal-Bradley defrauded the SSA of more than $40,000.00 in disability benefits by failing to disclose that she was employed as a mediator and supervising attorney by the New Mexico Workers’ Compensation Administration and thus not entitled to disability benefits. Roibal-Bradley previously had served as an ALJ at the New Mexico Workers’ Compensation Administration from 2003 to 2007.
The indictment’s wire fraud counts alleged that between March 2012 and June 2013, Roibal-Bradley devised and executed a scheme to defraud an estate and its beneficiaries of almost $571,948.98. In furtherance of the scheme, Roibal-Bradley falsely represented herself to be an attorney authorized to practice law and agreed to provide legal services in administering an estate at a time when New Mexico Supreme Court had prohibited her from the private practice of law. The Court subsequently disbarred Roibal-Bradley in March 2014. As part of the scheme, Roibal-Bradley falsely promised to distribute the estate’s funds to its beneficiaries but instead transferred the funds into her personal bank account and used wire transfers to facilitate the transfer of funds. The indictment alleges that, between April 2012 and Aug. 2012, Roibal-Bradley facilitated eleven wire transfers ranging in amounts of $5,000.00 to $389,503.33 from the estate’s bank account to her personal bank account.
The indictment also charged Roibal-Bradley with laundering the proceeds she derived from her wire fraud activity by transferring those assets to others, including members of her family. The indictment alleges that Roibal-Bradley facilitated eleven transfers of proceeds from her wire fraud activities ranging in amounts of $12,000.00 to $131,492.77 between May 2012 and July 2012.
On Feb. 2, 2016, Roibal-Bradley pled guilty to defrauding the SSA and to the twelve wire fraud charges. In her plea agreement, Roibal-Bradley admitted she applied for SSA disability benefit payments in Sept. 2011, and claimed that she had a disability that prevented her from working. The SSA continued to pay Roibal-Bradley disability benefits between March 2008 and March 2011, even though she was working full-time as a mediator and supervising attorney for the New Mexico Workers’ Compensation Administration. In entering her guilty plea, Roibal-Bradley admitted that she failed to notify the SSA that she was capable of full-time gainful employment.
Roibal-Bradley’s plea agreement also details the scheme by which she defrauded an estate and its heirs of almost $572,000.00. In the plea agreement, Roibal-Bradley admitted that she did not tell the administrator of the estate that she was prohibited from engaging in the private practice of law. She also admitted fraudulently transferring $571,948.98 from the estate’s bank accounts into her own bank account between April 2012 and Aug. 2012.
The case was investigated by the Albuquerque office of the FBI and the Social Security Administration’s Office of Inspector General based on a referral from the Disciplinary Board of the New Mexico Supreme Court. Assistant U.S. Attorneys Holland S. Kastrin and Kristopher N. Houghton prosecuted the case.
Former Fugitive Handed Three Life Sentences for Kidnapping and Alien Smuggling, Both Resulting in DeathRead the Press Release
VICTORIA, Texas – A former fugitive who was illegally residing in Houston has been sentenced to life in prison after pleading guilty to engaging in an alien smuggling conspiracy that resulted in two deaths and kidnapping two women, one of whom was killed. One of the life sentences was ordered to run consecutively to the other two life terms imposed.
U.S. Attorney Kenneth Magidson of the Southern District of Texas and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division made the announcement
Noe Aranda-Soto, aka Diablo, 36, of San Carlos, Michoacan, Mexico, pleaded guilty May 31, 2016, to kidnapping resulting in death, use of a firearm during and in relation to a crime of violence resulting in death and conspiracy to transport aliens for private financial gain resulting in death.
Today, U.S. District Judge John D. Rainey ordered that Aranda-Soto spend the rest of his life in federal prison. More than 20 victims and family members of victims traveled from Mexico and from various places all over the U.S. to attend the sentencing hearing, one of whom was the 18-year-old son of one of a deceased female victim who described the impact of the crime on their family. The woman's father also addressed Aranda-Soto and said, "I pray God forgives you, because we never will."
Fourteen victims addressed the court, most of whom have sustained some type of permanent injuries as a result of the defendant’s criminal conduct. Additionally, family members of two of the three victims who were killed as a result of the offenses also gave emotional testimony describing the impact of the loss of their family member on their family.
Another victim, who was shot three times but survived after jumping out of moving vehicle, was the only eyewitness to one of the brutal crimes and provided powerful testimony. She testified that she and the other woman were making plans to attempt to escape from the defendant the day he forced them into a car at gunpoint. She told the court that the woman's last words were "tell my children I love them with all of my heart.”
After all the victims spoke, Judge Rainey asked the defendant if he wished to make a statement. Aranda-Soto did not apologize nor make any comments to the court or the victims.
In his plea agreement, Aranda-Soto admitted that from 2010 until his arrest in 2012, he led an alien-smuggling and hostage-taking organization that transported aliens from areas near the south-Texas checkpoints to local stash houses in Houston and to points north. On Aug. 1, 2010, his brother was driving a vehicle loaded with illegal aliens when it rolled over near Victoria. One victim died as a result of the accident, while another had been left behind in the brush and died of exposure and dehydration. A third victim was in a coma for nearly a year and now suffers from permanent injuries, according to the plea.
Law enforcement stopped Aranda-Soto a few days later, but he fled. Aranda-Soto admitted he returned to Houston in 2012 and began to hold aliens hostage in Houston-area stash houses. According to admissions made in connection with the plea, Aranda-Soto planned to escape from Houston with two female employees after law enforcement rescued a group of aliens being held hostage and arrested several of Aranda-Soto’s employees in October 2012.
According to the plea agreement, while on Interstate 10 near Katy, Aranda-Soto became agitated and shot both the driver and the other female passenger multiple times. The injured driver jumped from the moving car and survived. Aranda-Soto then purposefully drove the car erratically, causing the other woman to be ejected from the moving vehicle onto the highway where she was subsequently run over by multiple other vehicles and killed, according to admissions in the plea agreement.
Law enforcement arrested Aranda-Soto a week later at yet another stash house, which was full of illegal aliens whom Aranda-Soto and his co-conspirators were holding hostage.
With Aranda-Soto’s plea, all of those charged in relation to the 2010 and 2012 criminal activity have now been convicted.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Border Patrol agents with the South Texas Campaign and South Texas Border Intelligence Center, Houston Police Department, Harris County Sheriff’s Office and the U.S. Marshals Service investigated the case. Assistant U.S. Attorneys Patti Hubert Booth and Casey N. MacDonald are prosecuting the case along with Trial Attorney Jeffrey Zick of the Criminal Division’s Capital Case Section.
Former Fugitive Handed Three Life Sentences for Kidnapping and Alien Smuggling, Both Resulting in DeathRead the Press Release
A former fugitive who was illegally residing in Houston has been sentenced to three terms of life in prison after pleading guilty to engaging in an alien smuggling conspiracy that resulted in two deaths and kidnapping two women, one of whom was killed. One of the life sentences was ordered to run consecutively to the other two life terms imposed.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
Noe Aranda-Soto, aka Diablo, 36, of San Carlos, Michoacan, Mexico, pleaded guilty on May 31, 2016, to kidnapping resulting in death, use of a firearm during and in relation to a crime of violence resulting in death and conspiracy to transport aliens for private financial gain resulting in death.
Today, U.S. District Judge John D. Rainey of the Southern District of Texas ordered that Aranda-Soto spend the rest of his life in federal prison. More than 20 victims and family members of victims traveled from Mexico and from various places all over the United States to attend the sentencing hearing, one of whom was the 18-year-old son of one of the deceased female victims, who described the impact of the crime on their family. The woman’s father also addressed Aranda-Soto and said, “I pray God forgives you, because we never will.”
Fourteen victims addressed the court, most of whom have sustained some type of permanent injuries as a result of the defendant’s criminal conduct. Additionally, family members of two of the three victims who were killed as a result of the offenses gave emotional testimony describing the impact of the loss on their family.
Another victim, who was shot three times but survived after jumping out of a moving vehicle, was the only eyewitness to one of the brutal crimes and provided powerful testimony. She testified that she and the other woman were making plans to attempt to escape from the defendant the day he forced them into a car at gunpoint, and told the court that the woman’s last words were “tell my children I love them with all of my heart.”
After all of the victims spoke, Judge Rainey asked the defendant if he wished to make a statement. Aranda-Soto did not apologize nor make any comments to the court or the victims.
In his plea agreement, Aranda-Soto admitted that from 2010 until his arrest in 2012, he led an alien-smuggling and hostage-taking organization that transported aliens from areas near the south-Texas checkpoints to local stash houses in Houston and to points north. On Aug. 1, 2010, his brother was driving a vehicle loaded with illegal aliens when it rolled over near Victoria, Texas. One victim died as a result of the accident, while another had been left behind in the brush and died of exposure and dehydration. A third victim was in a coma for nearly a year and now suffers from permanent injuries, according to the plea.
Law enforcement stopped Aranda-Soto a few days later, but he fled. Aranda-Soto admitted that he returned to Houston in 2012 and began to hold aliens hostage in Houston-area stash houses. According to admissions made in connection with the plea, Aranda-Soto planned to escape from Houston with two female employees after law enforcement rescued a group of aliens being held hostage and arrested several of Aranda-Soto’s employees in October 2012.
According to the plea agreement, while fleeing by car on Interstate 10 near Katy, Texas, Aranda-Soto became agitated and shot both the driver and the other female passenger multiple times. The injured driver jumped from the moving car and survived. Aranda-Soto then purposefully drove the car erratically, causing the other woman to be ejected from the moving vehicle onto the highway where she was subsequently run over by multiple other vehicles and killed, according to admissions in the plea agreement.
Law enforcement arrested Aranda-Soto a week later at yet another stash house, which was full of illegal aliens whom Aranda-Soto and his co-conspirators were holding hostage.
With Aranda-Soto’s plea, all of those charged in relation to the 2010 and 2012 criminal activity have now been convicted.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Border Patrol agents with the South Texas Campaign and South Texas Border Intelligence Center, Houston Police Department, Harris County Sheriff’s Office and the U.S. Marshals Service investigated the case. Assistant U.S. Attorneys Patti Hubert Booth and Casey N. MacDonald are prosecuting the case along with Trial Attorney Jeffrey Zick of the Criminal Division’s Capital Case Section.
Former Carlisle CEO and Consultant Pleads Guilty in Fraud Scheme Involving Low-Income Housing DevelopmentsRead the Press Release
Seventh and Final Defendant Pled Guilty to Participating in a $36 Million Fraud Scheme Involving Fourteen Low-Income Housing Developments
The last of seven defendants pled guilty today to participating in a scheme to defraud the United States government of $36 million in funding intended for the construction of low-income housing developments.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Nadine Gurley, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of Inspector General (HUD-OIG), and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
“The defendant and his co-conspirators stole $36 million dollars in federal monies that would otherwise have been used to provide affordable housing to hundreds of needy residents throughout the State of Florida,” stated U.S. Attorney Ferrer. “As a result of a steadfast commitment to justice, forged between the U.S. Attorney’s Office and our law enforcement partners, to date we have recovered over $20 million of these stolen funds and will continue to prosecute those who compromise a public service program designed to aid the poor, elderly and homeless.”
“Stealing money from the federal government is not a victimless crime. In this case, 36 million in taxpayer dollars intended for low-income housing developments never reached the needy but instead lined the pockets of Lloyd Boggio and his co-conspirators,” said William J. Maddalena, Assistant Special Agent in Charge, FBI Miami. “The FBI is committed to rooting out this type of fraud and reclaiming money that was dishonestly obtained.”
“These defendants took advantage of a tax credit intended to help Florida residents in need of affordable housing,” stated Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI). “IRS-CI will continue to commit resources to hold individuals accountable who create false tax returns in order to steal from the government.”
Lloyd Boggio, 70, of Coconut Grove, pled guilty before U.S. District Judge Ursula Ungaro to one count of money laundering, in violation of Title 18, United States Code, Section 1957. Boggio is scheduled to be sentenced on December 9, 2016 at 1:30 p.m. before United States Ursula Ungaro. As part of the plea agreement, Boggio agreed to forfeit to the United States approximately $2 million in seven frozen bank accounts. In addition, Boggio agreed to forfeit a multi-million dollar luxury home in Coconut Grove and to the entry of a forfeiture money judgment of $7,174,357. The defendant faces a maximum statutory sentence of 10 years’ imprisonment.
In addition to Boggio, the following individuals were charged criminally and previously pled guilty for their participation in these and other fraudulent schemes to steal funds intended for the construction of low-incomes housing. These individuals are:
- Matthew Greer, 38 of Miami Beach, a former CEO of Carlisle Development Group (“CDG”), a former low-income housing developer in Miami, Florida;
- Michael Runyan, 67 of Lighthouse Point, the CEO of BJ&K Construction, Inc. (“BJ&K Construction”), a general contractor in Fort Lauderdale, Florida;
- Gonzalo DeRamon, 52 of Coral Gables, a co-founder of Biscayne Housing Group (“BHG”), a former low-income housing developer in Miami, Florida;
- Michael Cox, 48 of Miami, a co-founder of BHG;
- Rene Sierra, 58 of Southwest Ranches, a founder of Siltek Affordable Housing LLC, a former general contractor in Planation; and
- Arturo Hevia, 64 of Miramar, a founder of Design Management and Builders Construction, a general contractor in Doral.
According to court records, including the agreed upon factual proffers in support of the defendants’ pleas, from 2006 to 2012, Boggio and Greer served, at alternating times, as the Chief Executive Officer of CDG. During this period, CDG applied for federal tax credits and federal grant monies to build low-income housing developments through a program administered by the Florida Housing Finance Corporation (“FHFC”). To obtain these federal funds, FHFC required developers to submit proposed development costs, including a construction contract signed by the developer and contractor.
The court record, including the defendants’ factual proffers, indicates that Boggio and Greer, of CDG, conspired with Runyan of BJ&K Construction to unjustly enrich themselves by submitting fraudulently inflated low-income housing construction contracts to FHFC’s representatives in order to obtain excess federal tax credits and grant monies to which they were not entitled, and then to use the proceeds for their personal use and benefit. Boggio, Greer, and Runyan caused the submission of fraudulently inflated construction contracts on at least eight different low-income housing developments, which resulted in the allocation of at least $26 million in excess federal tax credits and grant monies. With these excess federal funds, Runyan made kickback payments for the benefit of Boggio and Greer, including an $8.7 million wire transfer to Boggio’s bank account in the name of Caesar and Cleopatra on March 23, 2011.
According to the factual proffers, Boggio and Greer also conspired with Cox and DeRamon of BHG to steal government money intended to build low-income housing developments. BHG employed the same contract inflation scheme of submitting fraudulently inflated contracts to FHFC for the receipt of excess federal tax credits and grant monies on two low-income housing developments jointly developed by CDG and BHG. In or around May 2010, Boggio and Greer agreed with Cox and DeRamon to share approximately $3.7 million in excess government funds for these two joint venture developments.
Court documents further indicate that as a result of the defendants’ fraudulent schemes to inflate low-income housing construction contracts, FHFC allocated more than $36 million in excess tax credits and grant monies for fourteen low-income housing developments. Both during and after construction of the developments, the contractors made periodic kickback payments of the fraudulent contract inflation monies for the benefit of the CDG and BHG principals, including more than $26 million in kickbacks from Runyan for the benefit of Greer and Boggio; more than $6.2 million in kickbacks from Sierra for the benefit of DeRamon, Cox, Greer, and Boggio; and more than $1 million in kickbacks from Hevia for the benefit of DeRamon and Cox.
During the course of this investigation, through seizure warrants and voluntary payments by the defendants, the United States has collected over $20 million in proceeds connected to the thefts of government funds.
Mr. Ferrer thanked the FBI, HUD-OIG, and IRS-CI for their work on this case. This and all related cases are being prosecuted by Assistant U.S. Attorneys Michael R. Sherwin, Michael N. Berger, Karen Rochlin, Evelyn Sheehan, and Eloisa Fernandez.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fifth and Final Defendant in the Taco John’s Robbery and Shooting Sentenced to Federal PrisonRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on September 12, 2016, Tommy Trent, 29, Fargo, North Dakota, was sentenced before US District Judge Ralph R. Erickson to serve two (2) years in prison followed by three (3) years of supervised release for Interference with Commerce by Threats or Violence- Hobbs Act Robbery. Judge Erickson also ordered Trent to pay a $100 special assessment to the Crime Victims’ Fund.
On or about September 3, 2015, Trent and other co-conspirators were involved in robbing the Taco John’s restaurant located at 2601 32nd Ave. S., Fargo, as the restaurant was beginning to close. During the robbery co-conspirator Smith fired two shots, with one of the shots hitting an employee in the leg, causing injury that required medical treatment. Trent acted as a getaway driver and a lookout.
The other four men involved in the Taco John’s robbery have already been sentenced:
• Rico Jamal Brown, 27, three (3) years and six (6) months in prison
• Calvin Michael Frederick Brown, 25, five (5) years in prison
• Kadeem Malik Muhammed, 25, seven (7) years in federal prison
• Carl Eugene Smith, 24, twelve (12) years in federal prison
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATFE), as well as the Fargo Police Department.
U. S. Attorney Christopher C. Myers prosecuted the case.
Federal Grand Jury Indicts Three in $6.5 Million Diamond Investment Fraud SchemeRead the Press Release
DALLAS — A federal grand jury in Dallas has indicted three Texas residents on various charges stemming from their involvement in a diamond investment scheme they ran from approximately March 2011 to November 2013, announced U.S. Attorney John Parker of the Northern District of Texas.
Defendants Craig Allen Otteson, 64, of McKinney, Jay Bruce Heimburger, 58, of Dallas, and Christopher Arnold Jiongo, 55, of Houston, surrendered to federal authorities on Friday morning, September 9, 2016, and made their initial appearances that afternoon before U.S. Magistrate Judge David L. Horan. Each was released on bond.
Specifically, the 10-count indictment charges each defendant with one count of conspiracy to commit wire fraud and three counts of wire fraud. In addition, Otteson and Heimburger are each charged with six counts of mail fraud.
According to the indictment, Otteson acted as the Managing Member and Chief Compliance Officer of Stonebridge Advisors, LLC, located on Belt Line road in Dallas. Stonebridge Advisors was involved as the Managing Partner of Worldwide Diamond Ventures, L.P., located at 6029 Belt Line in Dallas, and it acted as the General Partner of Worldwide Diamond. Heimburger acted as a Principal Partner of Worldwide Diamond, and he was also listed as the registered agent and Director of JBH Securities, Inc. located on San Rafael in Dallas. JBH Securities was primarily involved in the business of providing investment advice. Worldwide Diamond was primarily involved in the business of buying and reselling diamonds on the international market. On October 1, 2013, Worldwide Diamond filed for bankruptcy in the Northern District of Texas.
According to the indictment, the defendants initially attempted to raise funds for their new business of purchasing and reselling diamonds by offering the sale of additional limited partnerships, in the minimum amount of $100,000, in Worldwide Diamond, but were unable to raise sufficient capital funds in this manner. Then, in March 2011, defendants attempted to raise additional needed start-up funds by offering “Non-Recourse Promissory Notes” (diamond notes). The defendants hired three outside companies to market and sell the diamond notes to investors in Texas, Pennsylvania and California. Each $50,000 diamond note had a nine-month maturity date and an 8% rate of return.
The indictment alleges that from approximately March 2011 through November 2011, Otteson, Heimburger and Jiongo defrauded their first round of investors when they fraudulently concealed material information from them, including how they used investor funds, and other information, which caused 57 investors to invest a total of $5,141,699 with Worldwide Diamond Ventures.
The indictment further alleges that from February 2012 through May 2013, Otteson and Heimburger defrauded the second round of investors when they fraudulently concealed material information from investors, including how they used investor funds and other information, which caused 20 new investors to invest a total of $1,333,000 with Worldwide Diamond Ventures.
Defendants promised investors that all investor funds would only be used to purchase and resell diamonds. However, as part of the fraudulent scheme, the defendants concealed from investors that defendants used nearly $2.5 million of investor funds to make unauthorized loans to third parties. As a result of the defendants’ investor fraud scheme, these 77 investors sustained a total loss of at least $4,922,811.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted, the maximum statutory penalty for each of the counts charged in the indictment is 20 years in federal prison and a $250,000 fine. The indictment also includes a forfeiture allegation that would require the defendants, upon conviction, to forfeit the proceeds obtained as a result of the offense. Restitution could also be ordered.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. Twenty defendants have been charged as part of that initiative; 16 were convicted, one resulted in a mistrial and three are pending trial.
The U.S. Postal Inspection Service is conducting the investigation. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Federal Grand Jury Indicts Ethel Businessman for Investor Fraud Scheme Worth over $3.5 MillionRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the unsealing of an Indictment against BRYAN LEE ADDINGTON, age 55, of Ethel, Louisiana. The Indictment charges the defendant with five counts of mail fraud, in violation of Title 18, United States Code, Section 1341, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. The Indictment also includes a forfeiture allegation that will require the defendant to forfeit the proceeds of his fraud if convicted.
The Indictment alleges that the defendant engaged in a scheme to defraud numerous victim investors from January 2010 through at least April 2016. According to the Indictment, the defendant solicited and obtained over $3.5 million from his victims. To induce the victims into investing with him, ADDINGTON falsely represented to his victims that their money would be invested in real estate and land, insurance products, and stock, and would be used to purchase insurance policies. He allegedly represented that such investments were safe and would yield good returns, and that they would, in some cases, bring guaranteed returns. Meanwhile, according to the Indictment, ADDINGTON allegedly hid from his victims that the Financial Industry Regulatory Authority had permanently barred him from acting as a broker or otherwise associating with firms that sell securities to the public.
According to the Indictment, once ADDINGTON was in control of the victim investors’ funds, he diverted a substantial portion of the funds to his own personal use, the use of others, and to make payments to other victim investors. Examples of his personal use including spending at Ruth’s Chris Steak House, Galatoire’s Bistro, Victoria’s Secret, Disney Resort, various casinos, and thousands of dollars in purchases of Louisiana State University athletic tickets.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, and the Louisiana Office of Financial Institutions, in coordination with the Louisiana Department of Insurance and Louisiana State Police. It is being prosecuted by Assistant United States Attorneys Ryan Rezaei and Ryan Crosswell.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Eufaula Woman Sentenced to 24 Months Probation, $500 Fine for DUIRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that FELICIA ANN BREEDLOVE, age 45, of Eufaula, Oklahoma, was sentenced to 2 years of probation and a $500.00 fine for OPERATING A MOTOR VEHICLE UNDER THE INFLUENCE OF ALCOHOL, a Misdemeanor, in violation of Title 47, Section 11-902(A)(1) of the Oklahoma Statutes, and Title 18, United States Code, Sections 7(3) and 13.
The Information alleged that on or about October 16, 2015, within the Eastern District of Oklahoma the defendant, FELICIA ANN BREEDLOVE, at the McAlester Army Ammunition Plant, at or near the Main Gate on C-Tree Road, on land acquired for the use of the United States and under the exclusive jurisdiction thereof, did drive and operate a silver 2006 Nissan Altima motor vehicle while under the influence of alcohol, as evidenced by a properly administered breath test which measured a .13 breath alcohol content.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing.
The charges are a result of an investigation by the Department of the Army Civilian Police.
Assistant United States Attorney Timothy Hammer represented the United States.