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Thursday 1 September 2016
Winter Haven Man Pleads Guilty to Making False Statements in Mortgage LoanRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Stevie McDonald (41, Winter Haven) has pleaded guilty to making false statements in a mortgage loan application. He faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.
According to court documents, on November 10, 2007, McDonald entered into a contract to purchase a home in Port Richey. He then applied for a mortgage loan from Washington Mutual Bank. In the loan documents that he signed and submitted to the bank, McDonald made false statements about his income and his employment. In December 2007, during the course of the closing on the property purchase, Washington Mutual paid more than $35,000 to a woman McDonald knew and later married. This payment was purportedly a satisfaction of an existing lien on the sale property. Subsequent investigation revealed that no such lien existed. Washington Mutual Bank suffered a financial loss as a consequence of McDonald’s default on this loan.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Wilmette Investment Advisor Sentenced to More Than Six Years in Prison for Bilking Clients out of Nearly $2 MillionRead the Press Release
CHICAGO — A federal judge sentenced a Wilmette financial advisor to more than six years in prison for pocketing nearly $2 million of his clients’ money after falsely promising substantial returns on investments in Facebook stock and real estate funds.
ALAN H. GOLD, 61, obtained money from more than a dozen investors by falsely representing that their assets would be invested in high-yield stocks, real estate funds, futures contracts and other investment products. Unbeknownst to the clients, Gold never actually invested their money. Instead, he used the funds to gamble at local casinos and to cover his own personal expenses.
Gold concealed the scheme for more than seven years by providing clients with phony account statements and fake stock certificates. Many of Gold’s victims are retirees, and several of them spoke at his sentencing hearing about their financial losses.
Gold pleaded guilty in January to five counts of wire fraud. U.S. District Judge Elaine E. Bucklo imposed the 75-month sentence Wednesday afternoon in federal court in Chicago. Judge Bucklo also ordered Gold to pay restitution of more than $1.8 million.
“Alan Gold betrayed the trust of his clients – people who considered him a friend and adviser,” Assistant U.S. Attorney Sunil R. Harjani argued in the government’s sentencing memorandum. “It is important that the investment adviser community know that a term of imprisonment awaits them if they lie and steal from their clients.”
Gold’s fraud scheme began in approximately January 2008 and continued until his arrest in June 2015. The phony account statements bore the name of Gold’s company, Alan Gold & Associates, which Gold operated out of his residence in Wilmette. The account statements falsely represented that the clients’ funds were invested in such securities as Facebook stock, real estate funds and various alternative investments. When clients questioned the performance of the investments, Gold falsely represented that they were exceeding expectations.
The sentence 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 Chicago office of the U.S. Securities & Exchange Commission, the Arlington Heights Police Department, and the Norridge Police Department assisted with the investigation.
The government is represented by Mr. Harjani.
Venezuelan National Convicted at Trial in Marriage Fraud ConspiracyRead the Press Release
Yesterday, a Venezuelan national was convicted by a federal jury for participating in a marriage fraud conspiracy.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
Elisabet Kerese Alvarez, 39, of Doral was convicted by a federal jury of conspiring to defraud the United States and marriage fraud. Kerese Alvarez faces a statutory maximum sentence of five years in prison as to the conspiracy charge and a statutory maximum of five years in prison as to the marriage fraud conviction.
According to the court record, including evidence presented during the three-week trial, in April 2014, the defendant paid organizers Odalys Marrero and Rolando Mulet of Miami to recruit a Cuban citizen to enter into a fraudulent marriage with her for the purpose of evading the immigration laws of the United States.
The evidence at trial established that Kerese Alvarez paid thousands of dollars in cash for a fraudulent marriage, an agreement which anticipated the completion of an immigration application to be submitted to United States Citizenship and Immigration Services (USCIS) in order for Kerese Alvarez to obtain lawful permanent residency in the United States.
Ten of the co-conspirators in the fourteen-defendant indictment previously pled guilty for their participation in the fraudulent scheme. Those defendants, included Venezuelan and Colombian nationals, Katiusca Aguilar Navarro, Manuel Andres Gomez, Natacha Perera, Marianelly Auxiliado Rodriguez, and Okyvi Yoll Mesa, who each paid tens of thousands of dollars to enter into fraudulent marriages with co-conspirator Cuban nationals, Carlos Alberto Mederos Paule, Virginia De la Caridad Mederos Paule, Osvaldo Lastre Duran, Rafael Abreu Gonzalez, and Salvador Cabanas. Organizers Marrero and Mulet along with Cuban national, Javier Manejias were all convicted by a jury on July 18, 2016 and are scheduled for sentencing on September 26, 2016. Kerese Alvarez is scheduled to be sentenced on November 14, 2016.
Mr. Ferrer commended the investigative efforts of ICE-HSI. Mr. Ferrer also recognized USCIS for the significant and valuable support the agency provided the investigation. This case is being prosecuted by Assistant United States Attorney Anne P. McNamara and Special Assistant United States Attorney Michele Vigilance.
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.
Two Trials End in Guilty VerdictsRead the Press Release
LAREDO, Texas – Two men have been convicted of transporting illegal aliens in two separate, unrelated cases and trials, announced U.S. Attorney Kenneth Magidson. Both verdicts were returned following one-day trials and less than an hour of deliberation.
A federal jury convicted Armando Catalino Escobar-Martinez, 19, of Guatemala, today, while another jury convicted Edgar Mariano Hernandez-Caal, 21, of Nuevo Laredo, Mexico, yesterday. Both men were found guilty of transporting illegal aliens.
According to testimony in the first case, in June 2016 Escobar-Martinez served as a guide leading other undocumented aliens across the Rio Grande River towards Laredo. Witnesses described Escobar-Martinez acting as a guide and leading the group of eight aliens, one of whom was his sister.
The defense argued that Escobar-Martinez would not have been a guide since his sister was part of the group and that they were trying to come into the U.S. together. The defense also attempted to convince the jury that he did not fit the description of a typical guide, simply because he was from Guatemala, not Mexico.
The jury did not believe those claims and found Escobar-Martinez guilty as charged.
In the other separate yet strikingly similar matter, Hernandez-Caal assisted other persons in transporting a different group of undocumented aliens across the Rio Grande River towards Laredo. The jury heard from witnesses who described Hernandez-Caal acting as a guide and leading the group of eight aliens into Texas in July 2016. Border Patrol agents ultimately discovered the eight undocumented aliens who were subsequently detained.
Hernandez-Caal testified at trial and admitted to illegally entering the U.S. However, he denied acting as a guide or having any involvement in the transportation of undocumented aliens into the through the U.S.
The jury was not convinced and found him guilty as charged.
U.S. District Judge Marina Garcia Marmolejo presided over both cases and will set sentencing hearings at a later date. At those times, each defendant will face up to 10 years in federal prison. They will remain in custody pending their hearings.
Border Patrol conducted both investigations. Assistant U.S. Attorneys Sarah Ellison and Christopher dos Santos are prosecuting the cases.
Two California Men Sentenced to Prison for Defrauding Struggling HomeownersRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that two California residents involved in an extensive mortgage loan modification scheme were sentenced today in Bridgeport federal court. U.S. District Judge Stefan R. Underhill sentenced SERJ GEUTSSOYAN, also known as “Anthony Kirk,” 34, of Santa Ana, to 52 months of imprisonment, and DANIEL SHIAU, also known as “Scott Decker,” 30, of Irvine, to 58 months of imprisonment. GEUTSSOYSAN and SHIAU also were ordered to serve three years of supervised release and pay restitution in the amount of $2,390,496.59.
According to court documents and statements made in court, Aria Maleki, GEUTSSOYAN, SHIAU and others jointly operated a series of California-based companies that falsely purported to provide home mortgage loan modifications and other consumer debt relief services to numerous homeowners in Connecticut and across the United States in exchange for upfront fees. The defendants did business, at various times, as “First Choice Financial Group, Inc.,” “First Choice Financial,” “First Choice Debt,” “Legal Modification Firm,” “National Freedom Group,” “Home Care Alliance Group,” “Home Protection Firm,” “Hardship Center,” “Network Solutions Center, Inc.,” “Premiere Financial Center,” “Premiere Financial,” “Rescue Firm,” “International Research Group LLC,” “Hardship Solutions,” “American Loan Center,” “Loan Retention Firm,” “Clear Vision Financial,” “Green Tree Financial Group,” “Green Tree Financial,” “Enigma Fund, Inc.,” “National Aid Group,” “Southern Chapman Group LLC,” “Save Point Financial,” “Best Rate Financial Solutions,” “Best Rate Financial Solution,” “Best Rate Financial,” “Best Rate Finance Group,” “Nation Star Financial,” and “Nation Star Fin Group.”
Maleki presided over the entire structure of this scheme, and GEUTSSOYAN and SHIAU were senior members of the sales team. Acting as representatives of the above-named entities, GEUTSSOYAN, SHIAU and other co-conspirators cold-called homeowners and offered to provide mortgage loan modification services to those who were having difficulty repaying their home mortgage loans. The defendants charged homeowners fees that typically ranged from approximately $2,500 to $4,300 for their services. To induce homeowners to pay these fees, the defendants falsely represented that the homeowners already had been approved for mortgage loan modifications on extremely favorable terms; the mortgage loan modifications already had been negotiated with the homeowners’ lenders; the homeowners qualified for and would receive financial assistance under various government mortgage relief programs, including the Troubled Asset Relief Program and the Home Affordable Modification Program; and if for some reason the mortgage loan modifications fell through, the homeowners would be entitled to a full refund of their fees.
In fact, the homeowners had not been preapproved for mortgage loan modifications with lenders, mortgage loan modifications had not been negotiated with the lenders, homeowners had not qualified for and did not receive any financial assistance through government mortgage relief programs, and homeowners did not receive a refund of their fees upon request. Few homeowners ever received any type of mortgage loan modification through the defendants’ companies, and few homeowners received refunds of their fees.
Participants in the scheme used pseudonyms and periodically changed their business and operating names to evade detection. The defendants also directed homeowners to mail their checks to addresses and mail boxes that the defendants and their co-conspirators had set up in states other than California.
As a result of this scheme, more than 1,000 homeowners suffered losses totaling more than $3 million.
The investigation revealed that the top tier of salesmen, including GEUTSSOYAN and SHIAU, were paid based on commission and typically earned 45 percent to 50 percent of the final fee, after $750 to $1,000 was taken by Maleki for administrative costs.
On January 21, 2016, a grand jury in New Haven returned an indictment charging Maleki, GEUTSSOYAN, SHIAU and four other California residents with conspiracy and fraud offenses related to this scheme. The defendants were arrested on January 26.
Maleki, GEUTSSOYAN and SHIAU each pleaded guilty to one count of conspiracy to commit mail and wire fraud.
On July 18, 2016, Maleki was sentenced to 112 months of imprisonment. He also forfeited approximately $350,000 that investigators seized from various bank accounts, approximately $362,000 sized from a Bitcoin account, a $100,000 cashier’s check, and a 2013 Ferrari 458 Italia.
The other four defendants also have pleaded guilty and await sentencing.
This matter is being investigated by the U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Postal Inspection Service, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), U.S. Department of Housing and Urban Development – Office of Inspector General, Federal Housing Finance Agency – Office of Inspector General, and Federal Bureau of Investigation, with assistance from the Oklahoma Attorney General’s Office.
The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Tomball Area Drug Traffickers Indicted for Distributing MethRead the Press Release
HOUSTON – A total of five Houston area drug traffickers are in custody on allegations they were involved in the large-scale distribution of methamphetamine in the Tomball and Pinehurst areas, announced U.S. Attorney Kenneth Magidson.
A federal grand jury returned a sealed indictment Aug. 18, 2016, against Tomball resident German Rodriguez, 24; Mexican national Bernabe Lopez-Olmos, 28, residing in Tomball; Carlos Garcia-Luna, 51, and Julia Cerna-Compean, 50, both legal permanent residents from Mexico residing in Magnolia; and Cristobal Martinez-Chavez, 43, a Mexican national residing in Houston.
The indictment was unsealed as to each defendant upon their arrest. Garcia-Luna and Cerna-Compean were taken into custody today and are expected to make their initial appearances before U.S. Magistrate Judge Stephen Wm. Smith tomorrow at 2:00 p.m. Authorities arrested Rodriguez and Martinez-Chavez yesterday. They appeared in court today, at which time they were ordered into custody pending a detention hearing Sept. 7, 2016, before U.S. Magistrate Judge Nancy Johnson. Lopez-Olmos was already in custody on related charges.
All are charged with conspiracy to possess with intent to distribute methamphetamine as well as with possession with intent to distribute methamphetamine. The indictment alleges that between October 2014 and December 2015 the defendants distributed more than seven kilograms of actual methamphetamine.
If convicted, each faces a mandatory minimum of 10 years and up to life in federal prison and a possible $10 million fine.
The Drug Enforcement Administration – High Intensity Drug Trafficking Area drug squad conducted the investigation along with the Texas Department of Public Safety – Methamphetamine Initiative Group, police departments in Tomball and Houston and the Montgomery County Pct. 5 Constable’s Office.
Assistant U.S. Attorney Anibal J. Alaniz is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless and until convicted through due process of law.
St. Croix Man Sentenced to Probation, Home Detention for Facilitating Drug FelonyRead the Press Release
St. Croix, USVI –District Court Chief Judge Wilma A. Lewis on Wednesday sentenced Carl Hansen, 56, of St., Croix, to four years of probation for using a phone to facilitate a drug felony, United States Attorney Ronald W. Sharpe announced. Chief Judge Lewis also ordered Hansen to serve the first six months of his probation on home detention, pay a $100 special assessment, and perform 200 hours of community service.
On April 14, 2016, Hansen pleaded guilty to using a communication facility to facilitate a drug felony. According to the plea agreement filed with the court, on May 7, 2015, Hansen had a telephone conversation with a co-defendant to set up a purchase of controlled substances for a third party. Although Hansen did not personally sell any controlled substances, his actions facilitated the drug deal.
This case was investigated by the U.S. Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Anna A. Vlasova.
Solon Couple Sentenced to Probation for False Statements to Social Security AdministrationRead the Press Release
DAVENPORT, IA – On August 30, 2016, Donna and Randall Hanson of Solon, Iowa, were sentenced by Chief United States District Court Judge John A. Jarvey to four (4) years of probation for false statements made to the Social Security Administration, announced United States Attorney Kevin E. VanderSchel. Restitution will be determined and ordered at a later date.
On May 26, 2016, Donna and Randall Hanson pleaded guilty to making false statements. Donna Hanson pleaded guilty to an additional count of failure to disclose information to the Social Security Administration. According to the plea agreement, Donna received Social Security Disability Income benefits since January 2000. In 2005, 2010, and on April 4, 2014, when Social Security Administration did a review of her benefits, Donna reported she was not married to Randall. Randall also submitted a signed statement on April 4, 2014, indicating he was not married to Donna. However, Donna and Randall told the Veterans Administration (VA) in 2003 they were married, which impacted the amount of benefits Randall received. On August 13, 2004, the VA issued a ruling that determined Randall and Donna had been married since October 1999. Because of the false statements to Social Security Administration, Donna was overpaid by $24,695.95.
This matter was investigated by the Social Security Administration, Office of Inspector General. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Sixteen People Charged in $175,000,000 Insurance Fraud SchemeRead the Press Release
Sixteen defendants have been charged in federal court with participating in a massive insurance fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Michael J. Satz, Broward State Attorney, announced today the filing of a five-count Information.
A criminal Information charges sixteen defendants for their participation in a complex fraud scheme regarding the manufacture and distribution of compounded medications. The fraud involved material misrepresentations to health insurance providers and illegal payments to coconspirators and medical professionals, including physicians. The fraud generated in excess of $175,000,000 in criminal proceeds for the members of the criminal enterprise.
The defendants are charged with varying offenses in the Information. Clifford Carroll, 36, of Boca Raton, FL, is charged with conspiracy to commit racketeering, in violation of Title 18, United States Code, Section 1962 (Count 1). Todd Stephens, 52, of West Palm Beach, FL, Tim Clinton, 30, of Delray Beach, FL, Joel McDermott, 41, of Boca Raton FL, Michael Kenna, 30, of Delray Beach, FL, Todd Hanson, 47, of Zephyr Cove, NV, and Lisa Goldberg, 51, of Fort Lauderdale, FL, are charged with conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h) (Count 2). Christopher Mucha, 30, of Davie, FL, Ian Flaster, 34, of Delray Beach, FL, Kyle O’Brien, 28, of Boca Raton, FL, Rhett Gordon, 43, of Boca Raton, FL, William Earl, 73, of Boca Raton, FL, Frederick Thomas Giampa, 52, of Sharon, MA, Dr. Peter Williams, 56, of New Port Richey, FL, Dr. John Johnson, 54, of Hollidaysburg, PA, and Dr. Brett Nadel, 48, of Roswell, GA, are charged with conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Section 371 (Count 3). Hanson is also charged with making a materially false statement to federal law enforcement, in violation of Title 18, United States Code, Section 1001 (Count 4). Carroll is also charged with subscribing to a false federal income tax return, in violation of Title 26, United States Code, Section 7206 (Count 5).
According to the Information filed today, the defendants participated in a two-year conspiracy, which used various business entities, including Numed Care, LLC, ClinicalCorp, LLC, RX of Boca, and a compounding pharmacy located in Dallas, Texas (hereinafter referred to as “the Texas Compounding Pharmacy”'), to perpetrate a complex fraud on numerous health care insurance providers. The defendants prepared medications in bulk quantities which were alleged to be compounded medications for specific individualized patient needs. The defendants falsely represented to the health insurance providers that these medications were prepared in limited quantities for individual patients and were exempted from FDA inspection.
The health insurance providers compensated the defendants for the alleged costs of the ingredients for such medications. The defendants concealed from the health insurance providers that the defendants made illegal kickbacks to physicians for the issuance of the compounded medications. The defendants unlawfully provided the physicians with pre-printed prescription pads. In order to facilitate the fraudulent scheme, the defendants used mass marketing techniques and call centers, which made material misrepresentations in order to solicit potential patients. The defendants induced owners of failing pharmacies throughout the United States in order to perpetuate the fraud.
If convicted, the defendants face a range of statutory penalties.Carroll faces a statutory maximum term of imprisonment of 23 years and a fine of up to $500,000. Hanson faces a statutory maximum term of imprisonment of 15 years and a fine of up to the greater of $500,000 or twice the amount of the criminally derived property.Stephens, Clinton, McDermott, Kenna, and Goldberg face a statutory maximum term of imprisonment of 10 years and a fine of up to the greater of $250,000 or twice the amount of the criminally derived property. Mucha, Flaster, O’Brien, Gordon, Earl, Giampa, Williams, Johnson, and Nadel face a statutory maximum term of imprisonment of 5 years and a fine of up to $250,000.
Mr. Ferrer commended the investigative efforts of the DEA, IRS-CI, and the Broward States Attorney’s Office in connection with the investigation of this matter. The case is being prosecuted by Assistant U.S. Attorneys Paul F. Schwartz and Jeffrey N. Kaplan.
An Information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
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.
Salamanca Chiropractor Arrested and Charged with Health Care FraudRead 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 Leo A. Kronert, Jr., aka Lee Kronert, of Frewsburg, NY, was arrested and charged by criminal complaint with health care fraud and false statements relating to health care matters. The charges carry a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Maura K. O’Donnell, who is handling the case, stated that according to the complaint, between January 2011 and December 2015, the defendant, a full time teacher at Salamanca High School and a part time chiropractor in Salamanca, NY, submitted false claims for payment to Medicare and private insurance companies seeking reimbursement for health care services allegedly provided in connection with his chiropractic practice. The claims included services allegedly performed on Kronert’s family members, claims for services the defendant did not provide, and claims for services allegedly provided while the defendant was out of town.
Kronert made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy. The criminal complaint is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge and the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott Lampert.
The fact that the defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Romanian Hacker “Guccifer” Sentenced to PrisonRead the Press Release
ALEXANDRIA, Va. – Marcel Lehel Lazar, aka “Guccifer,” 44, of Arad, Romania, a hacker who unlawfully accessed the private online accounts of at least 100 Americans and caused the public release of this information on the Internet, was sentenced today to a total of 52 months in prison for unauthorized access to a protected computer (28 months) and aggravated identity theft (24 months). Lazar was also ordered to serve three years of supervised release, forfeit online storage accounts that contained victim information, and pay restitution to his victims.
Lazar pleaded guilty on May 25. According to court documents, from at least October 2012 to January 2014, Lazar intentionally gained unauthorized access to email and social media accounts belonging to approximately 100 Americans, and he did so to unlawfully obtain his victims’ personal information and email correspondence. While some of Lazar’s targets were public figures – including a former U.S. Cabinet member and a former member of the U.S. Joint Chiefs of Staff – other targets were private citizens whom Lazar selected because they appeared in the email contact lists of other victims. In some instances, Lazar impersonated his victims online to, among other things, harass and collect information about other victims. In many instances, Lazar publically released his victims’ private email correspondence, medical and financial information, and personal photographs, without their consent. Lazar admitted that to conceal his identity from law enforcement, he used proxy servers to mask his location, and when he believed his identity had been uncovered he used an ax to smash his computer devices and cellphone. Lazar also admitted that he committed his crimes while on probation in Romania for earlier computer hacking offenses.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Bill A. Miller, Director of the U.S. Department of State’s Diplomatic Security Service (DSS); and Brian J. Ebert, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after sentencing today by U.S. District Judge James C. Cacheris.
This case was investigated by the FBI, DSS, and Secret Service, with assistance from the Justice Department’s Office of International Affairs. The case is being prosecuted by Assistant U.S. Attorneys Maya D. Song and Jay V. Prabhu, and Senior Counsel Ryan K. Dickey and Peter V. Roman of the Criminal Division’s Computer Crime and Intellectual Property Section.
The Department of Justice gratefully acknowledges the Romanian Ministry of Justice for its support in assisting the United States with this 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. 1:14-cr-213.
Romanian Hacker “Guccifer” Sentenced to 52 Months in Prison for Computer Hacking CrimesRead the Press Release
Marcel Lehel Lazar, 44, of Arad, Romania, a hacker who used the online moniker “Guccifer,” was sentenced today to 52 months in prison for unauthorized access to a protected computer and aggravated identity theft.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, Director Bill A. Miller of the U.S. Department of State’s Diplomatic Security Service (DSS) and Special Agent in Charge Brian J. Ebert of the U.S. Secret Service’s Washington Field Office made the announcement.
Lazar pleaded guilty before U.S. District Judge James C. Cacheris of the Eastern District of Virginia on May 25, 2016.
According to admissions made in connection with his plea agreement, from at least October 2012 to January 2014, Lazar intentionally gained unauthorized access to personal email and social media accounts belonging to approximately 100 Americans, and he did so to unlawfully obtain his victims’ personal information and email correspondence. Lazar’s victims included an immediate family member of two former U.S. presidents, a former member of the U.S. Cabinet, a former member of the U.S. Joint Chiefs of Staff and a former presidential advisor, he admitted. In many instances, Lazar publically released his victims’ private email correspondence, medical and financial information and personal photographs, according to the statement of facts filed with his plea agreement.
The FBI, DSS and the Secret Service investigated the case. Senior Counsel Ryan K. Dickey and Peter V. Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Maya D. Song and Jay V. Prabhu of the Eastern District of Virginia are prosecuting the case. The Criminal Division’s Office of International Affairs provided significant assistance. The Justice Department thanks the government of Romania for their assistance in this matter.
Rochester Man Sentenced in Crack Cocaine ConspiracyRead 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 Lorenzo Snow, 43, of Rochester, NY, who was convicted of conspiracy to distribute crack cocaine, was sentenced to 108 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Frank T. Pimentel and George C. Burgasser, who handled the case, stated that from December 2011 until February 17, 2012, Snow, who has two prior felony drug convictions, supplied a co-conspirator, Angelina Evans, with crack cocaine. Evans then sold the cocaine out of a residence at 129 Lock Street in Lockport, NY. On numerous occasions in January and February 2012, Evans sold crack cocaine supplied by Snow from that location to an individual while being monitored by law enforcement officers. On February 17, 2012, officers executed a search warrant at the residence and found an ounce of powder cocaine, and smaller quantities of crack cocaine and marijuana.
Evans was convicted of the same offense for her role in the conspiracy and was sentenced in December 2013 to time-served.
Today’s sentencing is the result of an investigation by the Niagara County Drug Trask Force, under the direction of Niagara County Sheriff James Voutour, and Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Charlie J. Patterson, New York Field Division.
Sentencing is scheduled for September 1, 2016, at 1:00 p.m. before Judge Arcara.
Registered Nurses, Formerly Employed by Hospice Care Provider, Indicted on Federal Prescription Opioid Conspiracy ChargesRead the Press Release
ALBUQUERQUE – Two registered nurses, formerly employed by an Albuquerque-area hospice care provider, have been indicted on federal prescription opioid conspiracy charges, announced U.S. Attorney Damon P. Martinez and Special Agent in Charge Will R. Glaspy of DEA’s El Paso Division.
Desiree Ulibarri, 30, and Annabel Debari, 35, both of Albuquerque, N.M., are charged in a two-count indictment with conspiracy to distribute oxycodone and conspiracy to acquire and obtain oxycodone by fraud and deceit. The indictment alleges that the two women, both of whom are registered nurses, committed the crimes in Bernalillo County, N.M., between April 2016 and July 2016.
Ulibarri, who was arrested on a criminal complaint on July 25, 2016, was arraigned on the indictment in federal court this morning, and entered a not guilty plea. Debari is scheduled for arraignment on Sept. 7, 2016.
According to court filings, the investigation of this case began on July 21, 2016, after Ulibarri’s employer, a hospice care provider, contacted DEA to report suspicions that Ulibarri was engaged in prescription pill diversion. The employer became suspicious because Ulibarri allegedly was documenting patients’ prescriptions in a way that made it difficult to reconcile the medications and because Ulibarri allegedly was picking up patients’ prescription pills at Federal Express instead of having the medication delivered to the patients.
On July 22, 2016, DEA agents allegedly obtained 80 10-mg oxycodone pills from Ulibarri, which she allegedly obtained from packages she retrieved from Federal Express. When DEA agents conducted a consensual search of Ulibarri’s cellular phone, they allegedly found evidence that Ulibarri had been conspiring with a co-worker, who is also a registered nurse, to illegally distribute prescription pills since April 2016. Additionally, a review of records of missing packages allegedly revealed that at least 3,870 pills, an aggregate of 42,150 mgs of oxycodone, had been diverted during the course of the conspiracy.
Ulibarri and Debari each face a statutory maximum penalty of 20 years in federal prison if found guilty of conspiracy to distribute prescription opioids. If convicted of conspiracy to acquire the prescription opioids by fraud or deceit, they each face up to four years in prison. Charges in indictments and criminal complaints are merely accusations, and criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Tactical Diversion Squad of the DEA in Albuquerque. DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
Assistant U.S. Attorneys Joel R. Meyers and Alexander M. Uballez are prosecuting the case pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
RGV Area Doctor Charged in Health Care Fraud and Illegal Kickback SchemeRead the Press Release
McALLEN, Texas ‐ A Rio Grande Valley area doctor has been charged in a federal indictment for his scheme to defraud Medicare and to solicit and obtain illegal kickbacks in exchange for patient referrals, announced U.S. Attorney Kenneth Magidson.
A federal grand jury in McAllen returned the indictment under seal Aug. 30, 2016. It was unsealed today upon the arrest of Dr. Pedro Garcia, 68, of Mission. He is expected to make his initial appearance before U.S. Magistrate Judge Peter Ormsby tomorrow at 10:30 a.m.
According to the charges, Garcia solicited and obtained cash in exchange for referrals of Medicare beneficiaries to prospective home health agencies. Garcia allegedly signed patient forms for patients he did not treat or provide services to and conveyed the forms to home health agencies, claiming he had treated or provided services to the patients. Some of the patients were deceased on the dates Garcia claims to have provided treatment or services, according to the indictment.
The indictment also alleges that from 2014 to 2016, Garcia submitted or caused others to submit claims to Medicare for reimbursement of home health services that were not provided. Garcia allegedly filed or caused others to file claims with Medicare knowing that the claims were false since the services were not provided. According to the indictment, Garcia illegally used the beneficiaries identifying information to perpetrate the fraud.
Garcia is charged with one count of conspiracy to commit health care fraud, four counts of health care fraud, four counts of aggravated identity theft, three counts of illegal remunerations and one count of obstruction of criminal investigations of health care offenses.
Conspiracy to commit health care fraud and each of the four counts of health care fraud carry a maximum punishment of 10 years in federal prison and a $250,000 fine, upon conviction. Illegal remunerations and obstruction of criminal investigations of health care offenses carry a maximum punishment of five years in federal prison and a $25,000 fine. For the aggravated identity theft, Garcia also faces a mandatory two‐year additional prison term which must be served consecutively to any other prison sentence imposed.
The FBI, Department of Health and Human Services‐Office of Inspector General, Texas Attorney General’s Medicaid Fraud Control Unit and the Texas Health and Human Services Commission-Office of the Inspector General conducted the investigation. Assistant U.S. Attorneys Michael Day and Andrew Swartz are prosecuting the case.
An indictment is an accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Preventing Violence in Our Schools and CommunitiesRead the Press Release
Those of us in law enforcement play an important role in reducing crime and protecting our community, and those of us in nonprofit educational work play a similar role in preventing crime by keeping kids on track to graduate. When we combine our efforts, we can make a bigger impact than we can by simply working alone.
In 2011, the U.S. Attorney’s Office for the Southern District of Florida (USAO) created the Violence Reduction Partnership (VRP) to combat violent crime, gang activity and firearms offenses that plague many of our local communities.
For the VRP, the USAO has partnered with federal, state and local law enforcement agencies, nonprofit and private entities, faith-based organizations, community leaders and educational institutions to break the cycle of violence. Now, the USAO is joining forces with City Year Miami, the Miami branch of the national, education-focused nonprofit, to add momentum to the prevention of violence in our schools and community.
Low literacy levels strongly correlate with poverty, crime and unemployment. As part of the VRP’s Pre-K Reading Program, members of the USAO staff, federal and local law enforcement officers/agents, employees of the law firm Jones Day and other community volunteers go to schools in select violence-plagued communities once a month and read to 900 pre-kindergarten and elementary school students.
Following every reading session, volunteers give the children books to take home. Since 2014, the program has given out more than 11,000 books; sadly, for many of the children, this is the first and only book they have ever owned. Now, through this new partnership, City Year Miami will be committing its entire professional staff team to adopting a number of schools for the reading program and sponsoring the books at one school.
The goals of the reading program are to instill in the students excitement for reading, provide mentorship, prevent academic failure and derail the school-to-prison pipeline. The reading program has expanded to 21 schools throughout the Southern District of Florida, including Miami-Dade, Broward, Palm Beach, and St. Lucie counties.
Partnerships such as the VRP generate tremendous power by collectively building safer, stronger, more cohesive communities. While teachers are crucial agents of change, called upon to help mold the minds and lives of our children, the task of educating, protecting and mentoring our youth cannot fall upon the shoulders of one person, organization or entity.
In this regard, partnerships like the one forged between the U.S. Attorney’s Office and City Year Miami are critical in making this a community-wide effort that will continue to have a real impact on our children and the community at large.
Within a landscape far too often riddled with violence, loss and grief, we are compelled to create positive interactions and to become powerful storytellers for a future full of possibility that many of these young children cannot yet see.
We invite you to join forces with the USAO, City Year Miami and other partners on our VRP team, so that together we can have a direct, positive impact on the lives of our local students.
Financial investment matters, but getting involved, reading to children and helping them envision a better tomorrow — that’s transformational and it’s how we begin to chip away, child by child, household by household, community by community, at the stigma of low expectations and the lack of options that often lead to future violence.
Wifredo Ferrer is U.S. Attorney for the Southern District of Florida. Keith "Fletch" Fletcher is executive director and vice president of City Year Miami.
To learn more, contact the U.S. Attorney’s Office Community Outreach Team at (305) 961-9134 [email protected]. To partner with City Year Miami, contact Keith "Fletch" Fletcher at (305) 778-5579 or [email protected]. City Year - Miami Herald - Preventing Violence In Our Schools And Commun...
Pollocksville Man Sentenced to 300 Months for Drugs, FirearmsRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court on August 30, 3016, Chief United States District Judge James C. Dever, III, sentenced JOHN ABNEY SR., 54, of Pollocksville, North Carolina, to a total term of 300 months imprisonment.
ABNEY was indicted by a federal grand jury on October 15, 2015. ABNEY pleaded guilty on May 19, 2016, to one count of distributing more than 5 kilograms of cocaine, 280 grams of crack, and a quantity of oxycodone, and one count of possessing a firearm in furtherance of drug trafficking activity.
ABNEY’s charges arose out of an investigation by federal and state law enforcement agencies. Their investigation revealed that ABNEY had been involved in narcotics trafficking going back as far as 2009. Agents followed up on recent reports of illegal narcotic sales and an “open air drug market” taking place at several residences associated with ABNEY in Pollocksville and Maysville, North Carolina. Agents also utilized confidential informants to make several controlled buys of drugs from those locations. On May 29, 2015, with the assistance of local law enforcement, agents and officers executed three search warrants simultaneously at the residences where they had previously purchased drugs from ABNEY or his associates. As a result of their search warrants, agents recovered over $187,000 in drug proceeds and two firearms (a shotgun and a semi-automatic pistol), as well as varying quantities of cocaine, crack, marijuana, and methadone.
At his sentencing hearing, Judge Dever determined that ABNEY was responsible for distributing more than 15.8 kilograms of crack cocaine from 2009 through 2015. He was sentenced to a term of 240 months imprisonment for drug distribution, and a consecutive term of 60 months for his firearm offense, resulting in a total term of imprisonment of 300 months.
The investigation of this case was conducted by the Onslow County Sheriff’s Office, Jones County Sheriff’s Office, Jacksonville Police Department, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Leslie Cooley, and Special Assistant U.S. Attorney Jonathan Holbrook represented the government. Mr. Holbrook is a prosecutor with the Wake County District Attorney’s Office, and Wake County District Attorney Lorrin Freeman has assigned him to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Holbrook’s assignment to the United States Attorney’s Office is made possible by grants funded by the North Carolina Conference of District Attorneys.
Pakistani National Extradited and Sentenced for Attempting to Export Sensitive Technology for Pakistani MilitaryRead the Press Release
Syed Vaqar Ashraf, 71, of Lahore, Pakistan, was sentenced today to 33 months in prison by U.S. District Judge Rosemary Marquez of the District of Arizona. Ashraf previously pleaded guilty to conspiracy to export defense controlled items without a license.
Assistant Attorney General for National Security John P. Carlin and U.S. Attorney John S. Leonardo of the District of Arizona made the announcement.
Ashraf attempted to procure gyroscopes and illegally ship them to Pakistan so they could be used by the Pakistani military. In an effort to evade detection, Ashraf arranged for the gyroscopes to be purchased in the name of a shell company and caused the gyroscopes to be transshipped to Belgium. Ashraf then traveled to Belgium to inspect the gyroscopes and arrange for their final transport to Pakistan.
On Aug. 26, 2014, Ashraf was arrested by the Belgium Federal Police at the request of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) agents, who had been conducting an undercover investigation of Ashraf’s activities.
HSI and Belgium Federal Police investigated the case. Trial Attorney Elizabeth Cannon of the National Security Division and Assistant U.S. Attorneys Kristen Brook and Beverly Anderson of the District of Arizona prosecuted the case.
Painesville man indicted on child pornography chargesRead the Press Release
A Painesville man was indicted on child pornography charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Lauden A. Sullivan, 21, was charged with receiving, distributing, and possessing visual depictions of minors engaged in sexually explicit conduct. From January 4, 2015, through on or about January 21, 2016, Sullivan knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. It is further alleged that on or about January 22, 2016, Sullivan possessed a CM Storm Tower computer that contained child pornography, to include at least one image involving a prepubescent minor or a minor who had not attained 12 years of age, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of 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.
This case is being prosecuted by Assistant United States Attorney Benedict S. Gullo. The case was investigated by the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
New York Man Sentenced 135 Months in Federal Prison for Child Sex TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 29-year-old Brooklyn, New York man was sentenced to 135 months (11 ½ years) in federal prison on August 31 by U.S. District Court Judge Malachy E. Mannion in Scranton, for sex trafficking of a minor.
According to United States Attorney Peter Smith, the defendant, Clinton Hayden a/k/a “Showtime,” previously pleaded guilty in March 2016, to recruiting, enticing, and transporting two minor females from Luzerne County to Brooklyn to engage in commercial sex acts.
Hayden was charged in an Information filed in December 2015, as a result of an investigation by Homeland Security Investigations and the Pennsylvania State Police.
Hayden admitted that between May 2015 and November 2015, he recruited the minor females, posted photographs of them in advertisements on a website, and transported them from Luzerne County to Brooklyn, where they engaged in prostitution at Hayden’s direction.
Judge Mannion also ordered that Hayden be placed on supervised release for 10 years following his prison sentence. Hayden must also register as a sex offender, receive sex offender treatment, and comply with the provisions of the Sex Offender Registration and Notification Act.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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New York Man Admits Role in Conspiracy to Distribute 22 Kilograms of HeroinRead the Press Release
TRENTON, N.J. – A Bronx, New York, man today admitted driving to Clifton, New Jersey, to pick up a suitcase filled with 22 kilograms of heroin, U.S. Attorney Paul J. Fishman announced.
Emmanuel Gonzalez, 32, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with conspiracy to distribute and possess with intent to distribute a kilogram or more of heroin.
According to the documents filed in this case and statements made in court:
On Feb. 5, 2016, law enforcement observed a tractor trailer, driven by Sauro D. Estevez Figueredo, 48, of Miami, and Alberto Mora, 52, of Morriston, Florida, parked at an intersection near a store in Clifton. That afternoon, Gonzalez and Edwin Alamo Jr., 21, of Bronx, drove to the tractor trailer and left with a suitcase given to them by Mora.
Subsequent traffic stops later revealed 22 kilograms of heroin in Gonzalez and Alamo’s possession. Law enforcement also found 10 kilograms of cocaine and 10 kilograms of fentanyl still remaining at the tractor trailer.
The drug distribution conspiracy charge to which Gonzalez pleaded guilty carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison and a $10 million fine. Sentencing is set for Dec. 15, 2016. The charges against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Meredith Williams of the OCDETF/Narcotics Unit of the Criminal Division in Newark.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Carl J. Kotowski in Newark, with the investigation leading to today’s guilty plea.
Defense Counsel: James Murphy Esq., Princeton, New Jersey
New Orleans Woman Sentenced for Conspiracy, Theft of Federal Funds, Aggravated Identity TheftRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DOMINIEL TRINETTE JONES, age 26, of New Orleans, was sentenced today after previously pleading guilty to conspiracy to steal federal funds, theft of federal funds, and aggravated identity theft.
United States District Court Judge Eldon E. Fallon sentenced JONES to 30 months in prison, 3 years of supervised release, and a $500.00 special assessment. The court also ordered JONES to pay restitution of approximately $20,000 to Woodforest National Bank.
According to court documents, in September 2014, JONES conspired with others to unlawfully acquire two United States Treasury checks that did not belong to her. The refund checks were the property of the United States and payable to two actual taxpayers who were owed tax refunds. JONES also obtained two false Georgia driver’s licenses in the names of S.H., and J.V., the two taxpayers who were payees on the refund checks. She obtained these fake licenses for the purpose of opening bank accounts to deposit and steal the Treasury funds. Using the fake driver’s license bearing the name S.H., JONES opened a bank account at Woodforest National Bank in Covington, LA, in S.H.’s name, but deposited the check later that day at a different branch in Gulfport, MS. JONES then traveled to the Woodforest National Bank in New Orleans, LA and withdrew $10,000 from the account bearing the name S.H. using the fake driver’s license.
Additionally, JONES and a coconspirator opened an account in the names of S.V. and J.V. at Woodforest National Bank located in La Place, LA. JONES and the coconspirator presented fraudulent Georgia driver’s licenses in the names of S.V. and J.V. to open the account. The same day, JONES, and the co-conspirator used the Treasury check, payable to S.V. and J.V., as the initial deposit to open the account at Woodforest National Bank in Laplace.
U.S. Attorney Polite praised the work of the Internal Revenue Service, Criminal Investigation in investigating this matter. Assistant U. S. Attorney Sharan E. Lieberman was in charge of the prosecution.
Navajo Man from Arizona Pleads Guilty to Federal Assault ChargesRead the Press Release
ALBUQUERQUE – Charleston Wauneka, 30, an enrolled member of the Navajo Nation who resides in St. Michaels, Ariz., pled guilty today in federal court in Albuquerque, N.M., to an assault charge. Under the terms of his plea agreement, Wauneka will be sentenced to 21 months in prison followed by a term of supervised release to be determined by the court.
Wauneka was arrested in Aug. 2016, on an indictment charging him with assault resulting in serious bodily injury. The indictment alleged that Wauneka committed the crime on Aug. 15, 2013, on the Navajo Reservation in McKinley County, N.M.
During today’s proceedings, Wauneka pled guilty to the indictment and admitted that on Aug. 15, 2013, he assaulted the victim by striking and kicking her, causing her to suffer serious bodily injury. More specifically, Wauneka admitted that his criminal conduct caused the victim to suffer fractured orbital bones around her left eye and hearing loss in her left ear. A sentencing hearing has yet to be scheduled.
This case was investigated by the Window Rock office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Sarah Mease.
This case was brought as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico, which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Navajo Man Arraigned on Indictment Charging him with Assaulting a Federally Commissioned Tribal OfficerRead the Press Release
ALBUQUERQUE – Abner Joe, 54, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was arraigned today in federal court in Albuquerque, N.M., on an indictment charging him with assaulting a federal officer. Joe entered a not guilty plea to the indictment and was released pending trial to a halfway house and will be under pretrial supervision and other conditions of release.
Joe was arrested on Aug. 10, 2016, on a criminal complaint charging him with assaulting a federal officer. According to the complaint, Joe allegedly assaulted an officer of the Navajo Nation Division of Public Safety on Aug. 4, 2016, by spitting on her and threatening her with a hammer and a wooden board. At the time of the alleged assault, the tribal officer was commissioned as a Special Law Enforcement Officer by the BIA’s Office of Justice Services.
Joe was indicted on Aug. 23, 2016, and charged with assault on a federal officer with a dangerous weapon and assault involving physical contact. The indictment alleged that Joe committed the crimes on Aug. 4, 2016, on the Navajo Indian Reservation in San Juan County, N.M.
If convicted of the crimes charged in the indictment, Joe faces a maximum penalty of 20 years in federal prison. Charges in complaints and indictments are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Michael Murphy is prosecuting the case.
Monroe, N.C. Man Sentenced to 17 1/2 Years on Drug Trafficking ChargesRead the Press Release
CHARLOTTE, N.C. –U.S. District Judge Robert J. Conrad, Jr. sentenced today James Ronald Helms, Jr., 49, of Monroe, N.C., to 210 months in prison, followed by four years of supervised release on drug conspiracy charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Helms was also ordered to forfeit $47,813 in drug proceeds.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Sheriff Eddie Cathey of the Union County Sheriff’s Office and Chief J. Bryan Gilliard of the Monroe Police Department join U.S. Attorney Rose in making today’s announcement.
According to filed court documents and today’s sentencing hearing, on or about April 2015, law enforcement became aware that Helms was selling methamphetamine and cocaine from his residence located in Monroe. In or about June 2015, law enforcement executed a search warrant, seizing from Helms’ residence more than two (2) kilograms of methamphetamine with over 95% purity, over half a kilogram of cocaine, $47,813 in cash and a vehicle which contained narcotics. Court records show that law enforcement also seized from Helms’ residence 13 firearms, including two SKS assault rifles and ammunition.
In March 2016, Helms pleaded guilty to two counts of conspiracy to distribute and to possess with intent to distribute methamphetamine and cocaine. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In announcing today’s sentence, Judge Conrad stated, “The time has come to protect the community. Defendant’s drug trafficking life has caught up with him. He has done too much evil.”
The FBI, the Union County Sheriff’s Office and the Monroe Police Department handled the investigation. Assistant U.S. Attorney Sanjeev Bhasker of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Mexican National Sentenced for RacketeeringRead the Press Release
BEAUMONT, Texas – A 44-year-old Nuevo Laredo, Mexico man has been sentenced to federal prison for drug trafficking related violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Hugo Alberto Macias-Garcia pleaded guilty on May 23, 2016, to interstate transportation in aid of racketeering and was sentenced to 24 months in federal prison today by U.S. District Judge Ron Clark. Garcia was also ordered to submit to forfeiture of approximately $47,000 cash.
According to information presented in court, on July 12, 2015, Garcia was stopped by patrol officers for traffic violations while traveling westbound on IH-10 in Beaumont. A search of the vehicle revealed approximately $52,000 is cash hidden inside a tool box. The cash was separated into bundles and stored in plastic bags consistent with methods used in drug trafficking organizations. Garcia was indicted by a federal grand jury in January 2016 and charged with drug trafficking violations.
Garcia was ordered to be deported upon release from federal prison.
This case was investigated by the Beaumont Police Department and Homeland Security Investigations and was prosecuted by Assistant U.S. Attorney Robert L. Rawls.
Mesquite Man Sentenced to Statutory Maximum 10 Years in Federal Prison for Possessing Child PornographyRead the Press Release
DALLAS — A 47-year-old man from Mesquite, Texas, Jesus Paramo, was sentenced today by U.S. District Judge Jane J. Boyle to the statutory maximum of 10 years in federal prison, following his guilty plea in March 2016 to an Information charging one count of possession of child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.
Paramo, who has been on bond since his arrest in August 2014, was remanded into custody following the sentencing hearing.
The investigation began when a detective with the Sherman Police Department, working in an undercover capacity, noticed that a particular computer with a specific IP address was making files of child pornography, many with Spanish names, available for sharing. The Sherman Police Department contacted U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) who learned that a detective in the Mesquite Police Department had downloaded files containing child pornography from the same IP address.
Law enforcement executed a search warrant at a residence in Mesquite in February 2014, however no evidence of any file-sharing computer program or child pornography was found. In fact, no one at the residence spoke Spanish.
Further investigation revealed, however, that a neighbor, Paramo, had been using this neighbor’s non-password-protected wireless router to download child pornography onto his computers. Paramo, who speaks both Spanish and English, admitted downloading at least 82 videos and 10 images of child pornography, including images and videos of prepubescent children, including infants and toddlers.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
ICE HSI, the Mesquite Police Department and the Sherman Police Department investigated the case. Assistant U.S. Attorney Lori Walker was in charge of the prosecution.
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Meridian Man Sentenced to 12 Months in Prison for Oxycodone DistributionRead the Press Release
BOISE - Theodore Pena, 66, of Meridian, Idaho, was sentenced today in United States District Court to 12 months in prison and three years of supervised release for distributing oxycodone, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered that Pena forfeit $3,200 in drug proceeds. Pena pleaded guilty on November 25, 2015.
According to evidence presented at the entry of plea and at his sentencing hearing, officers learned that Pena, who was living in Meridian, was selling his prescribed oxycodone pills to others for profit. Officers investigated that on two separate occasions, Pena sold a large portion of his prescribed oxycodone to an undercover officer.
The case was investigated by the Drug Enforcement Administration and Boise City Police. The case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
Medical Doctor Pleads Guilty to Health Care Fraud, Illegally Distributing DrugsRead the Press Release
PITTSBURGH - A resident of Hermitage, Pennsylvania pleaded guilty in federal court to charges of possession with intent to distribute and distribution of Tramadol, a Schedule IV controlled substance, and health care fraud, United States Attorney David J. Hickton announced today.
Dr. Anthony Rossi, 66, of Hermitage, Pennsylvania pleaded guilty to the two felony counts before United States District Judge Nora Barry Fischer.
According to information presented to the Court at the guilty plea, Dr. Rossi, a medical doctor, illegally distributed a controlled substance, Tramadol, for cash. Further, Dr. Rossi submitted false claims to Medicaid for health care services, including injections, which were never provided.
Judge Fischer scheduled sentencing for Jan. 6, 2017 at 9 a.m. The law provides for a maximum total sentence of 15 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Dr. Rossi on bond.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Drug Enforcement Administration and the United States Department of Health and Human Services – Office of Inspector General conducted the investigation leading to the Information in this case.
Manhattan Man Arrested for Sales of Synthetic Cannabinoids and Snap FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William G. Squires Jr., Special Agent-in-Charge, United States Department of Agriculture (“USDA”), Office of Inspector General, and Angel M. Melendez, the Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), New York (“HSI”), announced the arrest today of YOUSIF MOSLEH, an individual associated with two retail food stores in Manhattan, New York, who engaged in sales of synthetic cannabinoids in exchange for benefits issued by the Supplemental Nutrition Assistance Program (“SNAP”), and who conspired with others to sell other items not eligible for sale under SNAP in exchange for SNAP benefits. MOSLEH was arrested this afternoon and is expected to be presented before Magistrate Judge James C. Francis IV this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “Yousif Mosleh is charged with peddling dangerous synthetic drugs in New York City neighborhoods and funding his drug sales by abusing a system created to assist the most vulnerable in our society. Thanks to the dedicated agents of the USDA and HSI, Mosleh can no longer profit from this illegal scheme.”
Special Agent-in-Charge William G. Squires Jr. stated: “The Supplemental Nutrition Assistance Program was created to provide food and nutrition to those who truly need this assistance. Those who are involved in fraud and abuse of SNAP and other USDA programs will be aggressively pursued by our office. Our joint investigation with the U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and the New York City Sheriff’s Office has brought to justice an individual who sought to profit from the SNAP program through illegal schemes. The USDA Office of Inspector General will continue to dedicate resources and work with our law enforcement partners in order to protect the integrity of these programs and to prosecute those who commit fraud.”
Special Agent in Charge Angel M. Melendez said: “SNAP was created to help low income families put food on their tables. Instead, Mosleh allegedly used SNAP to feed drug addicts a hazardous synthetic narcotic. K2 poses a public safety risk, especially for our teens and young adults. Mosleh’s arrest is a testament to HSI’s commitment to keep illegal drugs off our streets.”
The following allegations are based on the unsealed Complaint filed today in Manhattan federal court[1]:
Congress established the Federal Food Stamp Program in 1977 for the purpose of alleviating hunger and malnutrition. In 2008, the program was renamed the Supplemental Nutrition Assistance Program (“SNAP” or “the Program”). The Program uses tax dollars to subsidize low-income households, helping low-income individuals and families to maintain more nutritious diets by increasing the food purchasing power of eligible households. According to USDA regulations, items such as cigarettes, hot foods for immediate consumption, and controlled substances, among other items, are ineligible for purchase with SNAP benefits (“Ineligible Items”).
MOSLEH’s Knowledge of and Participation in the SNAP Program
According to USDA records, a deli located on Lexington Avenue East 124th Street and East 125th Street in Manhattan, New York (“Deli-1”), received a license to accept and redeem SNAP benefits in December 2007. MOSLEH, the defendant, frequently works behind the counter at Deli-1, operating the cash register and the electronic benefits transfer (EBT) terminal.
In the immediate vicinity of Deli-1 is another deli (“Deli-2”), owned and operated by MOSLEH. According to USDA records, MOSLEH submitted an application for a license for Deli-2 to accept and redeem SNAP benefits in December 2013, and Deli-2 received such license in June 2014.
MOSLEH’s Sales of K2 for SNAP Benefits
“K2” is a street name applied to a synthetic cannabinoid, in green leafy form, that is intended to mimic the effects of marijuana. K2 frequently contains synthetic cannabinoids AB-CHMINACA and XLR-11. XLR-11 was classified as a Schedule I controlled substance on May 16, 2013, and AB-CHMINACA was classified as a Schedule I controlled substance on January 30, 2015.
As part of this investigation, the USDA has worked with two cooperating sources (“CS-1” and “CS-2”), who assisted the USDA in making controlled purchases of K2 and other Ineligible Items, which were video recorded covertly. Between June 29, 2015, and July 30, 2015, CS-1, at the direction of law enforcement, used SNAP benefits at Deli-1 to purchase multiple packages of synthetic cannabinoids directly from MOSLEH. These packages contained XLR-11 and AB-CHMINACA, based on laboratory testing.
Additionally, between July 23, 2015, and July 30, 2015, law enforcement recovered more than 2,000 packages of what appeared to be K2 from Deli-1.
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MOSLEH, 26, of Manhattan, is charged with two counts of distribution and possession with intent to distribute a controlled substance, each carrying a maximum sentence of 20 years in prison; and one count of conspiracy to violate the statutes and regulations governing the Supplemental Nutrition Assistance Program, which carries a maximum sentence of 5 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the USDA and HSI. Mr. Bharara also thanked the New York City Sheriff’s Office, U.S. Immigration and Customs Enforcement, and the New York City Police Department, for their critical support and cooperation throughout the investigation.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorney Amanda L. Houle is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[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.
Man Pleads Guilty to Armed Bank Robberies in Columbus and SpringfieldRead the Press Release
COLUMBUS, Ohio – Lawrence W. Bell, Jr., 30, of Columbus, pleaded guilty in U.S. District Court here today to robbing two financial institutions two weeks apart in 2015 and brandishing a pistol during each robbery.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Brad Earman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, Reynoldsburg Police Chief Jim O’Neill, and Springfield Police Chief Stephen P. Moody, announced the guilty pleas entered today before Chief U.S. District Judge Edmund A. Sargus, Jr.
Bell pleaded guilty to two counts of bank robbery and two counts of brandishing a firearm in relation to a crime of violence. The plea agreement includes a recommended sentence of 288 months in prison. Judge Sargus will schedule a date for sentencing.
Testimony presented during the plea hearing attested that Bell robbed the First Service Credit Union on East Main Street in Reynoldsburg on June 17, 2015 and brandished a pistol at tellers. On June 30, 2015, Bell robbed the Fifth Third Bank on South Tuttle Road in Springfield.
Bell was arrested in South Carolina on January 7, 2016 and has been in custody since his arrest.
Acting U.S. Attorney Glassman commended the investigation of this case by law enforcement, and Assistant U.S. Attorneys Timothy Prichard and David Bosley, who are representing the U.S. in this case.
Luling Woman Sentenced to Three Years of Probation for Filing False Tax ReturnRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KALI IRONS, age 39, of Luling, LA, was sentenced today by United States District Court Judge Eldon Fallon to three years of probation, which is to include six months of home confinement, after she pled guilty to one count of filing a false tax return.
According to court records, IRONS, a self-employed tax preparer, under-reported her taxable income for 2009 and 2010 to the IRS. This resulted in a tax loss to the United States in the amount of $88,203.00. In addition to probation and home confinement, IRONS was ordered to pay a $100 mandatory special assessment and full restitution to the Internal Revenue Service.
Jerome R. McDuffie, Special Agent in Charge of Internal Revenue Service Criminal Investigation, stated: "Special Agents of IRS Criminal Investigation will continue to aggressively work with the United States Attorney's Office to protect taxpayers’ interests and thoroughly investigate allegations of tax fraud. Today’s sentence of Ms. Irons is a reminder that those who file false tax returns will be investigated and prosecuted."
U.S. Attorney Polite praised the work of the Department of the Treasury/Internal Revenue Service Criminal Investigation team. Assistant United States Attorney Edward J. Rivera was in charge of the prosecution.
Leader of the Black P Stone Nation Gang Sentenced to over Twelve Years in Prison for Heroin TraffickingRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick A. Miles, Jr. announced today that Kenton Maurice Taylor, age 46, of Lansing, Michigan, was sentenced by U.S. District Judge Janet T. Neff to 151 months in prison for running a heroin distribution conspiracy that began operating in and around Lansing in October 2012. In addition to his prison term, Taylor was sentenced to eight years of supervised release and ordered to pay a money judgment of $50,400.
Taylor is the leader of the Lansing branch of the Black P Stone Nation gang. As its "Prince," Taylor is the highest ranking member of the gang in the State of Michigan. The Black P Stone Nation is a street gang based in Chicago, which is estimated to have more than 30,000 members across the United States. The gang was originally formed in the 1950s and 1960s by Jeff Fort. Fort is currently serving a sentence of more than 150 years for convictions in 1987 and 1988, which stemmed from conspiring with Libya to perform acts of domestic terrorism and ordering the murder of a rival gang leader. The Black P Stone Nation imbues itself in religion to provide a gloss over its criminal activities and finances itself primarily through narcotics and firearms trafficking.
Taylor and three other gang members – Karl Alphonso Lockridge, Maurice Ray, Jr., and Eric Darnell Cooper were indicted in August 2015 for conspiracy to distribute in excess of 100 grams of heroin and for other heroin distribution and firearms possession charges. Taylor’s co-defendants all pled guilty. Taylor elected to go to trial and a jury convicted Taylor in November 2015 on the conspiracy charge and a heroin distribution charge.
The conspiracy began after Taylor was released from the Michigan Department of Corrections in late 2012, after serving a five-year prison term for cocaine distribution. Taylor returned home to Lansing, resumed leadership of the gang’s Lansing branch, and turned the gang’s focus towards heroin trafficking. Taylor, his co-defendants, and other gang members thereafter traveled to Chicago on a monthly basis to obtain heroin from Taylor’s supply sources for further distribution in Lansing. Gang members armed themselves while on trips to Chicago and in and around Lansing to protect their drugs and their drug proceeds. As the Lansing branch’s leader, Taylor ordered physical beatings of gang members that did not adhere to the gang’s code of conduct.
U.S. Attorney Miles stated: "Street gangs that traffick drugs, carry firearms, and operate through violence and intimidation are a plague on the communities in which they exist. The Black P Stone Nation is no exception. Mr. Taylor is a rampant recidivist drug dealer who, despite a lengthy criminal history and run ins with the law for over two decades, has still not learned his lesson. He is going where he belongs – behind bars."
Bureau of Alcohol, Tobacco, Firearms, and Explosives Assistant Special Agent in Charge Nicholas Starcevic commented: "The significant sentence of Kenton Maurice Taylor helps protect our community from a dangerous man and a violent gang that was delivering drugs into Lansing and beyond. Heroin and firearms violence has a devastating ripple effect; it ruins lives, families and communities. This case represents a great collaboration between federal, state, and local law enforcement and the United States Attorney’s Office."
"It is through united vigilance and unyielding determination that the law enforcement community in Michigan was able to significantly disrupt the Black P Stone Nation gang, which was engaged in the distribution of heroin in the Lansing area," stated David P. Gelios, Special Agent in Charge of the FBI Detroit Field Office. "Today’s sentencing further demonstrates the collective resolve of federal, state, and local law enforcement partners to address the growing and deadly epidemic of heroin and opioid abuse."
"The Lansing Police Special Operations Section, under the leadership of Sgt. Daniel Zolnai, was grateful to assist the FBI and ATF with this successful and worthwhile collaborative investigation of a prominent gang," stated Lansing Police Chief Michael Yankowski. "Also contributing to the effort was the Michigan Department of Corrections, the Michigan State Police, and the Capital Area Violent Crime Initiative. All of the groups worked seamlessly together to make this case a success."
The case was prosecuted by Assistant U.S. Attorneys Joel S. Fauson and Mark V. Courtade.
END
Las Cruces Man Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Benjamin David Romero, 38, of Las Cruces, N.M., pled guilty today in federal court to methamphetamine trafficking charges.
Romero and co-defendant Roque Henry Atencio, 42, also of Las Cruces, were arrested on Feb. 6, 2016, on a criminal complaint charging them with methamphetamine trafficking charges. According to the complaint, Romero and Atencio sold two bags containing an aggregate of 47.35 grams of pure methamphetamine to undercover law enforcement agents in Doña Ana County, N.M., on April 2, 2015.
Romero and Atencio were indicted on April 21, 2016, and charged with participating in a conspiracy to distribute methamphetamine and distributing methamphetamine on April 2, 2015. The indictment included forfeiture allegations requiring Romero and Atencio to forfeit $2,000 to the United States.
During today’s proceedings, Romero pled guilty to the indictment without the benefit of a plea agreement. At sentencing, Romero faces a statutory minimum penalty of five years and a maximum of 40 years in prison. Romero remains in custody pending a sentencing hearing, which has yet to be scheduled.
Atencio has entered a not guilty plea, and is awaiting trial. Charges in complaints and indictments are only accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Anna R. Wright of the U.S. Attorney’s Las Cruces Branch Office.
Kenner Man Pleads Guilty to Mail TheftRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ARTHUR RESPERT, age 25, of Kenner, pled guilty today to one-count of theft of mail.
According to court documents, RESPERT was employed at Air General, Inc. and worked at the New Orleans International Airport. From on or about October 24, 2014 to September 3, 2015, RESPERT stole letters and other packages addressed to individuals across the United States.
RESPERT faces a maximum term of imprisonment of five years, a maximum fine of $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment. U.S. District Judge Jane Triche Milazzo set sentencing for December, 1, 2016.
U.S. Attorney Polite praised the work of United States Postal Service, Office of Inspector General, in investigating this matter. Assistant U.S. Attorney Sharan E. Lieberman is in charge of the prosecution.
Justice Department Partners with Mexico to Combat Employment DiscriminationRead the Press Release
The Justice Department and the Ministry for Foreign Affairs of the United Mexican States established a formal partnership today to protect workers from discrimination based on citizenship, immigration status and national origin. Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and Mexican Ambassador Carlos Sada signed a memorandum of understanding (MOU) between the embassy and its consulates, and the division’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC).
As part of the MOU, OSC and the Mexican government will collaborate to educate workers about their employment rights and provide them with the resources needed to protect those rights. The MOU also seeks to promote training for employers on their obligations under the anti-discrimination provision of the Immigration and Nationality Act (INA), which prohibits employment discrimination based on citizenship, immigration status and national origin. Specifically, the MOU provides that:
- OSC will train Mexican consular staff on the anti-discrimination provision of the INA, participate in events organized by Mexican consulates to educate workers and employers and distribute educational materials to the embassy and its consulates.
- The embassy will establish a system for referring discrimination claims from the embassy and consulates to OSC.
“The Mexican government plays a vital role in helping the Justice Department ensure workers know about their rights and the protections the law provides,” said Principal Deputy Assistant Attorney General Gupta. “Mexico has taken a leading role in Labor Rights Week, ensuring that workers in Mexico and throughout the world know about their rights in the workplace and where to access help and support. I thank our Mexican counterparts for their collaborative partnership in our shared mission to empower workers and combat discrimination.”
In the last year, the department has also established formal partnerships with Ecuador and El Salvador to empower and educate work-authorized individuals from those nations.
OSC is responsible for enforcing the anti-discrimination provision of the INA. Among other things, this law prohibits citizenship, immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; discrimination in the employment eligibility verification process; retaliation and intimidation. In addition to its enforcement work, OSC educates the public on its rights and responsibilities under the INA’s anti-discrimination provision.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit OSC’s website.
Mexico MOU
Judge Sentences Man to 21 months for Role in Drug Trafficking TransactionRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez today sentenced Marco Asala-Belgar, 35, of the Dominican Republic, to 21 months’ imprisonment, followed by one year of supervised release for misprision of a felony. Judge Gomez also ordered Asala-Belgar to pay a $100 special assessment and perform 200 hours of community service.
During his trial in April, Asala-Belgar pleaded guilty to misprision of a felony. Two of his co-defendants, Alexandro Gerandino-Aracena, 39, of the Dominican Republic, and Ricardo Cardona, 35, of Puerto Rico, were found guilty of conspiracy to possess with intent to distribute cocaine, and various firearms possession charges.
According to Asala-Belgar’s plea agreement and evidence presented at trial, on September 3, 2015, Gerandino-Aracena, Cardona, and another co-defendant, Pedro Guzman, 35, of the Dominican Republic, traveled in a private vessel from Fajardo, Puerto Rico to the Marine Center Dock at the University of the Virgin Islands on St. Thomas to purchase 100 kilograms of cocaine. Upon arrival in St. Thomas, they met with other conspirators to collect the cocaine in exchange for $250,000 and three assault rifles. Asala-Belgar drove the green Ford Explorer that delivered the money for the cocaine. When Asala-Belgar was interviewed by U.S. Drug Enforcement Administration agents, he did not tell the agents that his co-defendants had arranged to deliver the money in exchange for cocaine.
This case was investigated by the DEA, FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, and U.S. Customs and Border Protection. It was prosecuted by Assistant United States Attorneys Sigrid M. Tejo-Sprotte and Delia Smith.
Jerome Man Sentenced for Possession of Child PornographyRead the Press Release
BOISE – Patrick Lee Jewell, 34, of Jerome, Idaho was sentenced today in United States District Court to 63 months in prison followed by 5 years of supervised release, for possession of child pornography, U.S. Attorney Wendy J. Olson announced. Jewell pleaded guilty on April 7, 2016.
According to the plea agreement, Jewell admitted using his e-mail account to communicate with an individual on Craigslist regarding the exchange of images of child pornography in November and December of 2013. In February of 2014, agents with the Department of Homeland Security executed search warrants at Jewell's residence in Jerome, Idaho, and for his e-mail accounts. In his plea agreement, Jewell admitted possessing 61 images of child pornography in his e-mail account, and five images of child pornography on his iPhone.
As part of his plea, Jewell also agreed to forfeit an iPhone and a Samsung laptop computer used in the commission of the charged offense. As a result of his conviction, Jewell will be required to register as a sex offender.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, the Jerome County Sheriff's Office, and the Jerome Police Department, and was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Iowa City Men Sentenced for Heroin Distribution ConspiracyRead the Press Release
DAVENPORT, IA – On August 29, 2016, Alfred Latrell Jackson, 26, Jason Rahaman Dawson, 45, and Curtis Lee Kemp, 49, all of Iowa City, Iowa, were sentenced by United States District Court Judge Stephanie M. Rose for their role in a heroin distribution ring in Iowa City, announced United States Attorney Kevin E. VanderSchel.
Dawson’s sentence follows his February 24, 2016, guilty plea to conspiracy to distribute 100 grams or more of heroin. Dawson was sentenced to 144 months in prison and ordered to serve four (4) years of supervised release following his prison term.
Kemp and Jackson’s sentences follow April 12, 2016, jury verdicts that found Jackson guilty of conspiracy to distribute at least 100 grams of heroin, and Kemp guilty of conspiracy to distribute heroin and three counts of distribution of heroin. Jackson was sentenced to 188 months in prison and ordered to serve four (4) years of supervised release following his prison term. Kemp was sentenced to 84 months in prison and three (3) years of supervised release to follow his prison terms.
According to Dawson’s plea agreement and trial testimony, from December 2013 to approximately May 7, 2015, Alfred Jackson gave Jason Dawson large sums of heroin to sell in the Iowa City area. Dawson then gave most of the proceeds back to Jackson, owing Jackson up to $14,000 at a time. Dawson had approximately twenty heroin customers and used others to distribute heroin on his behalf, including Curtis Kemp. Between February 2015 and May 2015, both Kemp and Dawson sold heroin to an undercover officer on three separate occasions. This drug conspiracy involved more than 3,300 grams of heroin.
This matter was investigated by the Johnson County Drug Task Force, Iowa Division of Narcotics Enforcement, Muscatine County Drug Task Force, Drug Enforcement Administration and Iowa City Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Hyattsville Man Facing Federal Indictment Related to a Firebombing on March 4, 2016Read the Press Release
Greenbelt, Maryland – A federal grand jury charged Richard Butler III, age 34, of Hyattsville, Maryland, with being a felon in possession of an explosive, transportation of explosive materials with intent to injure, and use of a destructive device during a crime of violence, in connection with a firebombing on March 4, 2016. The indictment was returned on August 31, 2016.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Prince George’s County Fire/EMS Chief Marc S. Bashoor.
According to the three count indictment, on March 4, 2016, Butler manufactured one or more improvised incendiary bombs at a gas station on Landover Road in Hyattsville, then used those bombs to set fire to a victim’s apartment in Hyattsville. The indictment alleges that Butler used the improvised incendiary bombs with the intent to kill or injure the victim and to destroy the building and property of the victim. Butler had previously been convicted of a felony and was therefore prohibited from possessing explosives.
Butler faces a maximum sentence of 10 years in prison for being a felon in possession of an explosive; 10 years in prison for transportation of explosive materials with intent to injure; and a mandatory minimum sentence of 30 years and up to life in prison for using an explosive device during a crime of violence. An initial appearance has not yet been scheduled for Butler in U.S. District Court in Greenbelt. Butler is currently detained on unrelated state charges in the District of Columbia.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the ATF and Prince George’s County Fire/EMS for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Jennifer R. Sykes, who is prosecuting the case.
Guatemalan Man Sentenced for Illegal Reentry After DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE – United States Attorney Emily Gray Rice announced today that Christopher Orozco-Amores, of Guatemala, was sentenced today after pleading guilty to illegally reentering the United States after having been previously deported.
Orozco-Amores was identified during a traffic stop in Greenland, New Hampshire on June 14, 2016. A Deportation Officer later determined that he was a citizen of Guatemala who previously had been deported from the United States. Orozco-Amores, who was arrested on July 7, 2016, and has been in custody since that time, was sentenced to time served. He faces likely deportation.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and prosecuted by Assistant U.S. Attorney Alfred Rubega.
Fresno County Felon Indicted for Growing Marijuana in National ForestRead the Press Release
FRESNO, Calif. — A federal grand jury returned a seven-count indictment today against Gary Lee Ortiz, 41, of Auberry, charging him in connection with a large-scale marijuana cultivation operation located near Mill Creek in Fresno County in the Sierra National Forest Acting United States Attorney Phillip A. Talbert announced.
Ortiz was charged with conspiring to manufacture, distribute and possess with the intent to distribute marijuana, with manufacture of marijuana, possession of marijuana with intent to distribute, maintaining a drug-involved premises, with damaging public land and natural resources, being a felon in possession of a firearm, and possessing a firearm with an obliterated serial number.
According to court documents, Ortiz oversaw a large marijuana cultivation operation on property where he resided in Auberry and also on public land nearby in the Sierra National Forest. The cultivation sites contained over 12,746 marijuana plants and were in close proximity to Shaver Lake and other recreational areas. Law enforcement officers eradicated the plants and seized four firearms from the property where Ortiz resided. At the time, Ortiz was prohibited from possessing a firearm.
The marijuana cultivation operation caused extensive damage to the land and natural resources. The marijuana plants were irrigated by water that had been diverted from Mill Creek. Mill Creek flows into the San Joaquin River above Millerton Lake’s Friant Dam, which is a major water supply for the San Joaquin Valley. In addition to the marijuana, law enforcement officers removed over 2,000 pounds of irrigation hose, fertilizers, and trash from the cultivation sites.
This case is the product of an investigation by the U.S. Forest Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the California Department of Fish and Wildlife, the Fresno County Sheriff’s Office, and Fresno County Probation. Assistant United States Attorney Karen Escobar is prosecuting the case.
Ortiz was ordered detained and is scheduled for arraignment on September 9, 2016, in federal court in Fresno. If convicted of the drug offenses as charged in counts one through three, Ortiz faces a mandatory minimum statutory penalty of 10 years and a maximum statutory penalty of life in prison and a $10 million fine as to each count. If convicted of the environmental crime, Ortiz faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. If convicted of being a felon in possession of a firearm, Ortiz faces a maximum statutory penalty of 10 years in prison. If convicted of possessing a firearm with an obliterated serial number, Ortiz faces a maximum statutory penalty of five years in prison. As to both firearms offenses, he also faces a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fraudsters used Nationwide Mortgage Scam to Victimize over 400 Homeowners and FamiliesRead the Press Release
ALEXANDRIA, Va. – Five California men have been sentenced for their roles in a nationwide home loan modification scam that victimized over 400 homeowners and families, resulting in a total loss of over $3.8 million.
Roscoe Umali, 38, of Santa Ana, California, was sentenced on August 18 to 220 months in prison for leading the multi-state conspiracy. Umali was also ordered to forfeit $3.8 million and to make approximately $1.2 million in restitution payments to the victims of his scam.
Umali pleaded guilty to conspiracy to commit wire fraud on March 22. According to court documents, from at least October 2012 through September 2014, Umali and his co-conspirators targeted struggling homeowners and made a series of misrepresentations to induce them to make payments of thousands of dollars each in exchange for supposed mortgage modification assistance. The conspirators falsely held themselves out as a non-profit organization or as affiliated with a real government program, the “Home Affordable Modification Program” (HAMP), designed to help homeowners at risk of foreclosure. In reality, however, they did nothing to help modify any mortgages. Instead, they used the victims’ payments for their own personal benefit and to further the fraud scheme. Many of the victims subsequently lost their homes, declared bankruptcy, and otherwise suffered serious financial and emotional consequences as a result of the scheme.
The four other defendants sentenced in connection with this same scam include:
Name
Age
Hometown
Sentencing Details
Isaac Perez
33
Los Angeles, California
Sentenced to 130 months today
Joshua Johnson
36
Huntington Beach, California
Sentenced to 121 months on July 7
Jefferson Maniscan
34
Los Angeles, California
Sentenced to 120 months on August 18
Raymund Dacanay
47
Newport Beach, California
Sentenced to 60 months on July 21
Five additional defendants from the greater Los Angeles area were also arraigned today on a superseding indictment in this same case. Those defendants include Sammy Araya, 41, Nicholas Estilow, 34, Sabrina Rafo, 23, Michael Henderson, 49, and Jen Seko, 36. They were each charged with mail fraud, wire fraud, and conspiracy to commit mail fraud and wire fraud, for a similar scheme that allegedly resulted in at least $11.5 million in losses to victims and homeowners. If convicted, they face a maximum penalty of 20 years in prison on each count. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Robert Wemyss, Inspector in Charge of the Los Angeles Division of the U.S. Postal Inspection Service; James Todak, Special Agent in Charge, U.S. Housing and Urban Development, Office of Inspector General, Los Angeles Field Office; and Rene Febles, Deputy Inspector General for Investigations, Federal Housing Finance Agency-OIG, made the announcement after the sentencing of Umali and his co-defendants by U.S. District Judge James C. Cacheris. Assistant U.S. Attorneys Samantha Bateman and Ryan Faulconer are prosecuting the case. The case was formerly prosecuted by Assistant U.S. Attorneys Zach Terwilliger and James P. Gillis.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-301.
Fraudster Sentenced for “Force Posting” SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Kareem Patrick Campbell (19) to time served (approximately 13 months in prison) for conspiracy to commit wire fraud. As part of his sentence, the Court entered a money judgment in the amount of $227,375.85, the proceeds of the wire fraud conspiracy. Campbell was also ordered to pay restitution to the victims of his offense. Campbell pleaded guilty on May 4, 2016. He has been incarcerated since his arrest on related state charges on August 13, 2015.
According to court documents, between April 2015 and August 2015, Campbell and others conspired to commit and committed wire fraud by providing fake bank authorization codes to merchants throughout Florida and elsewhere, including North Carolina, as part of a scheme commonly known as “force posting.” Campbell and his co-conspirators targeted jewelry stores, car accessory retailers, and hotels. As part of the scheme, Campbell would present a canceled debit card that lacked sufficient funds to pay for his purchases. When the card was declined, Campbell would then call a co-conspirator, who would pretend to be a bank customer service employee and would provide a fake authorization code to the merchant, along with instructions on how to key the code into the merchant’s point of sale machine. These fake codes caused merchants to override their credit card processing machines’ denials of the debit card. As a result of the scheme, the conspirators were able to successfully purchase jewelry and other items worth at least $227,375.85.
On May 11, 2016, a grand jury in the Middle District of Florida returned an 11-count indictment charging one of Campbell’s co-conspirators, Rajiv Edwards, with conspiracy to commit wire fraud and wire fraud. Edwards remains at large.
This case is being investigated by the United States Secret Service and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Megan K. Kistler.
Four from Northeast Ohio indicted for trafficking heroin and fentanylRead the Press Release
Four people from Northeast Ohio were named in 23-count federal indictment, charged with conspiring the distribute more than a kilogram of heroin as well as fentanyl, law enforcement officials said.
Indicted are: Kevin Adkins, 41, of Maple Heights; Darrell Massingille, 36, of Cleveland; Tammy Parsons, 29, of North Ridgeville, and Jack Morgan, 50, of Cleveland.
The conspiracy took place between July 2015 and March 2016. Adkins supplied heroin to Massingille. He also relied on Massengille and Parsons to arrange meetings with other people to whom they could sell them heroin and fentanyl, according to the indictment.
Adkins also supplied heroin to Morgan, who in turn sold it to other people. Both Adkins and Morgan possessed firearms and ammunition in furtherance of the conspiracy, according to the indictment.
“We will continue to work to disrupt the supply of heroin and fentanyl coming into our community while also focusing on prevention, treatment and education in an effort to reduce demand for these deadly drugs,” said U.S. Attorney Carole S. Rendon.
This case is being prosecuted by Assistant U.S. Attorneys Christian M. Stickan and Duncan Brown following an investigation by the Drug Enforcement Administration and the U.S. Marshals Service.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Fort Washakie Man Sentenced to Life Imprisonment for First Degree MurderRead the Press Release
Koby Dean Johnson, 52, of Fort Washakie, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on August 26, 2016, for first degree murder and for causing death through the use of a firearm. Johnson was arrested in Fort Washakie, Wyoming. He received life terms of imprisonment on both counts, to be served consecutively. He was also ordered to pay a $500.00 fine and a $200.00 special assessment. After custody, Johnson will be placed on supervised release for five years. This case was investigated by the Federal Bureau of Investigation.
Former Winnetka Resident Sentenced to More Than Four Years for Failing to Pay Taxes on More Than $2.5 Million in Earnings from Illegal Gambling OperationRead the Press Release
CHICAGO — A former Winnetka resident who operated an illegal gambling enterprise before fleeing to the Middle East was sentenced today to more than four years in federal prison for failing to pay taxes on at least $2.5 million in unlawful earnings.
ALBER NAJJAR, also known as Alber Yakoub, failed to pay taxes on income he earned from a gambling operation in Illinois and Indiana from 1997 to 2001. Najjar filed an individual federal tax return for each of those years, but he failed to report the income he earned from the gambling business.
Najjar, 62, pleaded guilty earlier this year to two counts of filing a false tax return. In addition to the 57-month prison term, U.S. District Judge Ronald A. Guzman fined Najjar $5,000 and ordered him to pay back taxes to both the Unites States and the state of Illinois.
“Taxes are how governments pay for needed services,” Assistant U.S. Attorney Patrick King argued in the government’s sentencing memorandum. “Evasion robs governments and the people they serve of needed revenue.”
Shortly before being indicted in April 2004, Najjar fled to Lebanon and was considered a fugitive for more than eleven years. During that time, Najjar used a Syrian passport – issued in the name of Alber Yakoub – to travel to Europe, Asia and other parts of the Middle East. He was arrested in November 2015 on the island of Cyprus and extradited to the United States shortly thereafter.
Najjar, who resided in Winnetka prior to fleeing the country, generated large sums from his illegal bookmaking business, and utilized the services of offshore accounts to transact his business. He concealed from his accountant both the gambling enterprise and the income he earned from it. Najjar’s illegal conduct resulted in a total state and federal tax loss of more than $1.07 million.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and James D. Robnett, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago. The officials praised the efforts of the U.S. Marshals Service and the U.S. Department of State Diplomatic Security Service, which were instrumental in securing Najjar’s arrest and extradition.
Former Seattle Resident Sentenced to Ten Years in Prison for Traveling to have Sex with Teen and Possession of Images of Child RapeRead the Press Release
A 38-year-old Seattle man who traveled to Colorado to groom and sexually molest a teenager he met on the internet was sentenced today in U.S. District Court in Seattle to ten years in prison and lifetime supervised release, announced U.S. Attorney Annette L. Hayes. GREGORY LYLE BRIDGES was residing in Seattle and working as a Senior Program Manager for Amazon.com when he first came to the attention of law enforcement for possession of thousands of images of child sexual abuse. Further investigation revealed that for more than ten years BRIDGES had preyed on teen boys he met via social media. At sentencing U.S. District Judge Marsha J. Pechman said BRIDGES was “leading a double life.” Judge Pechman noted BRIDGES had “no understanding of the depth of harm” he had caused to the minor victim.
“I commend the good work of Homeland Security Investigations and the Seattle Police Department in uncovering the full extent of the criminal conduct in this case,” said U.S. Attorney Annette L. Hayes. “They looked beyond the voluminous amounts of child pornography to uncover all the other victims impacted by this defendant.”
According to records filed in the case, BRIDGES came to the attention of law enforcement in December 2013, when Dropbox reported BRIDGES had uploaded images of child sexual abuse to his account. In August 2014 BRIDGES was charged in King County Superior Court with possession of nearly 3,000 images of child pornography and more than 1700 videos of child pornography. As investigators worked on the case, they identified various young men who, over the last ten years, had been approached by BRIDGES over social media. The men had been teenagers at the time BRIDGES had sought them out and sexually abused them. One of the victims was just 14 years old when BRIDGES contacted him and began grooming him for sex. In April 2013, BRIDGES traveled to the boy’s home state of Colorado twice to engage in sexual contact. BRIDGES took advantage of the boy’s difficult childhood and home life, buying him gifts and paying for hotel stays and meals. Despite knowing the boy’s young age and his history of prior sexual abuse, BRIDGES pursued the sexual contact.
“The collaborative efforts between the Seattle Police Department and HSI resulted in a unique investigation spanning four states,” said Steve Cagen, acting special agent in charge of HSI Seattle. “Our nation-wide investigative ability allowed for a successful prosecution. Through interviews conducted by multiple HSI offices, another sexual predator has been brought to justice for violating the innocence of children.”
BRIDGES is required to register as a sex offender following his release from prison. He was also ordered to pay $10,000 in restitution to some of the victims depicted in his child pornography collection. These victims have been identified by the National Center for Missing and Exploited Children and those who possess or trade these pictures of their sexual abuse are subject to court ordered restitution.
BRIDGES was charged in federal court in May 2015, and pleaded guilty in June 2016 to possession of child pornography and traveling with intent to engage in sexual acts with a minor.
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 Attorney’s 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.justice.gov/psc.
The case was investigated by the Internet Crimes Against Children (ICAC) task force including agents and officers from the Seattle Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
The case is being prosecuted by Special Assistant United States Attorney Cecelia Gregson and Assistant United States Attorney J. Tate London. Ms. Gregson is a Senior King County Deputy Prosecutor specially designated to prosecute child exploitation cases in federal court.
Former Pastor of St. Mary’s County Church Indicted on Federal Bank Fraud ChargesRead the Press Release
Greenbelt, Maryland – A federal grand jury has charged John S. Mattingly, age 70, of Charlotte Hall, Maryland, today for bank fraud in connection with a scheme to steal funds from St. Francis Xavier Catholic Church, while he was the pastor. The indictment was returned on August 29, 2016, and unsealed today after Mattingly’s arrest.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, St. Mary’s County Sheriff Tim Cameron, and St. Mary’s County State’s Attorney Richard Fritz.
According to the 20-count indictment, Mattingly was ordained as a Roman Catholic priest in 1972 and was the pastor of St. Francis Xavier Catholic Church (St. Francis), in Leonardtown, Maryland, from 1994 until September 1, 2010, when he resigned. While serving as a parish priest, Mattingly was paid a salary and stipend by St. Francis.
The indictment alleges that from September 2006 through September 2010, Mattingly fraudulently deposited checks from parishioners made payable to St. Francis and to the St. Vincent de Paul Society, which were intended by the St. Francis parishioners to be charitable donations, into a bank account he controlled. In order to conceal the scheme, Mattingly allegedly falsely represented that that the checks he deposited into his bank account would be used for charitable purposes and/or church maintenance and renovations. According to the indictment, Mattingly did not use the charitable contributions from the St. Francis parishioners for their intended purposes, but instead transferred the fraudulently obtained funds from his bank account to Mattingly’s personal individual retirement account. The indictment further alleges that Mattingly also wrote unauthorized checks from the St. Francis bank account payable to himself and deposited those checks into his personal individual retirement account.
The indictment alleges that over the course of the scheme Mattingly fraudulently deposited more than 500 checks, totaling at least $76,000, written by more than 135 parishioners and made payable to St. Francis or the St. Vincent de Paul Society, and not to Mattingly.
Mattingly faces a maximum sentence of 30 years in prison for each of the 20 counts of bank fraud. An initial appearance was held today in U.S. District Court in Greenbelt. Mattingly is released under the supervision of U.S. Pretrial Services
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI, St. Mary’s County Sheriff’s Office, and St. Mary’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Bryan E. Foreman, who is prosecuting the case.
Florida Computer Programmer Arrested for HackingRead the Press Release
SAN FRANCISCO – A South Florida-based computer programmer made an appearance in the Southern District of Florida today after being arrested Sunday on charges of hacking into computers operated by the Linux Kernel Organization and the Linux Foundation, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
The Linux Kernel Organization operates the www.kernel.org website from which it distributes the Linux kernel software. The Linux Foundation is a separate nonprofit foundation that supports the www.kernel.org website.
Donald Ryan Austin, 27, of El Portal, Fla., was arrested during a traffic stop on August 28, 2016, by officers of the Miami Shores Police Department. Austin was arrested pursuant to a four-count indictment returned by a federal grand jury in the Northern District of California on June 23, 2016, and unsealed Tuesday.
Austin is charged with causing damage to four servers located in the Bay Area by installing malicious software. Specifically, he is alleged to have gained unauthorized access to the four servers by using the credentials of an individual associated with the Linux Kernel Organization. According to the indictment, Austin used that access to install rootkit and trojan software, as well as to make other changes to the servers. Austin is charged with four counts of intentional transmission causing damage to a protected computer, in violation of 18 U.S.C. § 1030(a)(5)(A).
Austin made his initial appearance in federal court in Miami, Fla., on August 29, 2016. He was released on bond today. Bail was set at $50,000. Austin’s next scheduled appearance is in San Francisco at 9:30 a.m. on September 21, 2016, before the Honorable Sallie Kim, United States Magistrate Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of ten years of imprisonment, and a fine of $250,000, plus restitution, for each violation of 18 U.S.C. § 1030(a)(5)(A). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The prosecution is the result of an investigation by the Federal Bureau of Investigation.