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30 September 2016
Georgetown Woman Charged with Embezzling over $60,000 Dollars from EmployerRead the Press Release
BOSTON – A Georgetown woman was charged in U.S. District Court in Boston with embezzling over $60,000 from her former employer.
Michelle Higson, 41, was indicted on one count of bank fraud and two counts of uttering a forged security. Higson was arrested this morning and is scheduled to appear before U.S. District Court Magistrate Judge Judith Dein this afternoon.
According to the indictment, Higson worked as a part-time bookkeeper at a Rowley-based company. In her position as bookkeeper, Higson was responsible for handling the company’s accounts payable, and used the company’s accounting software program to do so. From December 2013 through January 2015, Higson stole a series of the company’s checks and made them payable to cash. Higson then forged her employer’s signatures on the stolen checks, endorsed them herself, and deposited them for cash, which she used for personal expenses.
To conceal her criminal conduct and avoid detection by company officials, Higson allegedly falsified entries in the company’s general ledger to make it appear as if the stolen checks had been issued to satisfy payment to bona fide vendors. In total, Higson embezzled over $60,000.
The charge of bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of $1 million. The charge of uttering a forged security provides for sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. The case is being prosecuted by Assistant United States Attorney Anne Paruti of Ortiz’s Major Crimes Unit.
Four Sentenced in Lansing Credit Union RobberiesRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick Miles announced the sentence today for the last of four co-defendants, all from Detroit, in a pair of Lansing credit union robberies. U.S. Chief District Judge Robert J. Jonker sentenced Brennen Jackson, age 25, to 92 months in federal prison; Kiarra Pennymon, age 27, to 33 months; and Maurice Clark II, age 25, and Darnell Rowell, age 21, each to 37 months.
On September 3, 2015, Jackson, Pennymon and Clark robbed the DFCU Financial on S. Pennsylvania Avenue in Lansing. Jackson recruited Clark to commit the robbery, and Jackson and Pennymon drove Clark from Detroit to Lansing, stopping at a store along the way to buy makeup to cover Clark’s tattoos and colored contacts to disguise him. Pennymon admitted to assisting by casing the credit union, and she and Jackson waited in the getaway vehicle while Clark went in with a demand note and stole $40,000. Less than a week later, on September 8, 2015, Jackson and Pennymon recruited Darnell Rowell and returned to the same credit union. Jackson and Pennymon waited in the getaway van while Rowell entered the credit union with a demand note and stole $35,000. The three were apprehended by police on the highway fleeing the scene. All but $200 that was stolen in the second robbery was recovered upon their arrest.
Pennymon and Clark pled guilty to the September 3, 2015, robbery, and Jackson and Rowell pled to the September 8th robbery. All four defendants will serve three years of court supervision after they are released from prison and were each ordered to repay the credit union through restitution. The Lansing Police Department, Ingham County Sheriff’s Office, and the FBI investigated the case, which was prosecuted by Assistant U.S. Attorney Tessa K. Hessmiller.
In announcing the sentence, U.S. Attorney Patrick Miles stated, "This case represents another example of local and federal investigators working together to protect our community. The quick work of the Ingham County Sheriff’s Office and Lansing Police Department in apprehending the robbers undoubtedly protected the community from future robberies by this group."
"The sentencing of Brennen Jackson demonstrates the resolve of the FBI and our local law enforcement partners to identify those responsible for robberies of Michigan financial institutions," said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. "As part of that effort, the FBI encourages the public to use a free FBI mobile application called BANK ROBBERS, which allows members of communities to review information about unsolved bank robberies. With the public’s help, we can become even more successful in identifying, arresting, and prosecuting subjects who pose a significant threat to the public."
END
Four Men Sentenced for Drug ConspiracyRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Court Chief Judge Christopher C. Conner in Harrisburg sentenced Felix Rodriguez-Pabon, age 25, Berks County, PA, to 87 months and Yefries Guillan-Herrera, age 24, Berks County, to 57 months in federal prison for conspiracy to possess with intent to distribute heroin and cocaine hydrochloride.
According to United States Attorney Peter Smith, eleven defendants were originally indicted by a federal grand jury in Harrisburg in July 2015 and a Superseding Information was filed in June 2016.
The charges stem from an investigation in which the Department of Homeland Security Investigations (HSI) agents in Lebanon County intercepted packages sent from Santo Domingo, Dominican Republic to the United States between June and October 2014. The packages contained kilogram quantities of heroin and cocaine hydrochloride concealed inside xbox consoles and projectors.
On September 28, 2016, Chief Judge Conner also sentenced Wilson Herrera, age 22, Berks County, to 10 years in federal prison and Wilfreddy Perez, age 24, Lebanon, to 35 months in federal prison and on August 24, 2016, Glauco Kelvin Celedonio-Smith, age 20, of Lebanon, was sentenced to 15 years in prison. The remaining co-defendants are awaiting sentencing.
"This investigation is an excellent example of how federal, state and local law enforcement were able to successfully dismantle a major narcotics smuggling organization," said Brian Michael, acting special agent in charge of HSI Philadelphia. "HSI will continue to utilize its broad authorities to aggressively target and dismantle groups that are dispensing poison within our communities."
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
The investigation was conducted by HSI, the Pennsylvania State Police, the Berks County District Attorney’s Office Detective Unit and the U.S. Customs & Border Protection. The case was prosecuted by Assistant United States Attorney Daryl F. Bloom.
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Former Wireless Phone Company Employees Charged with Selling Customer InformationRead the Press Release
BIRMINGHAM – Federal prosecutors today charged a Birmingham man with selling private customer information, including customer cell phone records, that he obtained from his work computer at AT&T. Prosecutors last week charged a former Verizon employee in a related case, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
“We cannot allow people with access to sensitive personal information abuse that access for personal financial gain,” Vance said. “Anyone with a cell phone could be put at risk of harm if their private call information or tracking data is illegally accessed and used.”
“Computer crimes continue to be a high priority for the FBI,” Stanton said. “Those who engage in the kind of illegal activity Conley and Traeger participated in can expect to be prosecuted.”
In a one-count information filed today in U.S. District Court, the U.S. Attorney’s Office charged ERIC CONLEY, 33, with computer intrusion. The U.S. Attorney’s Office also filed a plea agreement with Conley. According to the agreement, Conley will plead guilty to the charge.
Conley was employed as a retail sales consultant at AT&T in Gardendale in 2011 when a private investigator offered to pay Conley for particular AT&T customer records, according to the plea agreement. Conley accepted the offer and, between 2011 and 2013, sold hundreds of customer records to the private investigator, all of which Conley had obtained from AT&T computer systems without the customers’ permission. In exchange, Conley received thousands of dollars in cash and check payments.
Last week the U.S. Attorney’s Office charged a former Verizon Wireless employee, DANIEL EUGENE TRAEGER, 51, of Bessemer, with computer intrusion for gathering customer records to sell to the same private investigator. Traeger worked for Verizon in Birmingham as a network technician. Traeger is charged in a one-count information and, like Conley, has agreed to plead guilty. Traeger has admitted that he sold the private investigator hundreds of Verizon customer call records and location data records between 2009 and 2014.
The maximum punishment for the computer intrusion offense is five years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorneys Erica W. Barnes and John B. Ward are prosecuting.
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Former Office Manager Sentenced for Wire FraudRead the Press Release
United States Attorney G.F. Peterman, III announces that Maria E. Trenam, age 52, of Cumming, Georgia, previously of Warner Robins, Georgia, was sentenced to serve sixty (60) months imprisonment for one count of wire fraud on September 30, 2016. The sentence was handed down by the Honorable Marc T. Treadwell, U. S. District Court Judge, in Macon, Georgia. As part of the sentence, Ms. Trenam was also ordered to pay restitution in the amount of $1,178,736.90 and was ordered to forfeit certain property obtained through the fraud, including a bank account, a house, an automobile, and a diamond ring. Following imprisonment, she will be required to serve a term of supervised release for three (3) years.
Ms. Trenam was the office manager of Surgical Associates of Warner Robins, P.C., in Warner Robins, Georgia. Surgical Associates is a health care benefit program providing surgical and other medical services to individuals under public and private plans. As office manager of Surgical Associates, Ms. Trenam had access to the banking and financial records of the business.
Beginning about March 31, 2011, through about August 11, 2015, Ms. Trenam used her position to embezzle money from Surgical Associates totaling $1,178,736.90. She embezzled money in several ways, including making unauthorized cash withdrawals at automated teller machines of financial institutions utilizing her business credit card, writing unauthorized checks to herself on business accounts and concealing the unauthorized checks by falsifying bookkeeping ledger entries, increasing her salary without authorization, using her business credit card to make unauthorized purchases of goods and services, using her business credit card for unauthorized travel and entertainment, and using her business credit card to make unauthorized purchases of goods and services on the internet.
Concerning Count One of the indictment, Ms. Trenam used her Surgical Associates business credit card to make a personal and unauthorized purchase of goods in the amount of $2,289.79 by computer on the internet from the Jo-Ann Fabric and Crafts Store in Ohio.
U.S. Attorney Peterman stated, “Ms. Trenam stole a huge sum of money, more than many people would make in their lifetime. Making it even worse, she stole from her employer, who had trusted her with access to and control over its financial assets. The greed and abuse of trust this theft demonstrates certainly called for the sentence imposed on Ms. Trenam today.”
The case was investigated by the Macon Resident Agency of the Federal Bureau of Investigation, and by the Houston County Sheriff’s Office. Assistant United States Attorney Paul C. McCommon III prosecuted the case on behalf of the Government.
Inquiries regarding the case should be directed to Pamela Lightsey at the United States Attorney’s Office at 478-621-2603.
Former NFL Player Sentenced to 15 Years in Federal PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Donald Broomfield (40, Jacksonville) to 15 years in federal prison for his involvement in a conspiracy to distribute 5 kilograms or more of cocaine that spanned 4 years. A federal jury found him guilty on October 6, 2015.
According to court documents, Broomfield began obtaining kilograms of cocaine from a source of supply in Texas in 2010. He then distributed the drugs to individuals in Jacksonville and Orlando. Broomfield, and others at his direction, used various vehicles equipped with hidden compartments to transport the cocaine. As part of an on-going investigation, on August 8, 2014, Broomfield was stopped by the Jacksonville Sheriff’s Office (JSO) while driving his Chrysler 300. A drug detecting canine alerted on the vehicle and a subsequent search revealed 1.6 kilograms of cocaine in a hidden compartment. The same day, JSO officers searched a residence in Jacksonville where Broomfield had been storing cocaine for several years. They seized empty kilogram wrappers, a cocaine press, digital scales, and drug packaging materials. Testimony at trial established that Broomfield was a leader of the conspiracy and was responsible for the distribution of 50 – 150 kilograms of cocaine. This was his first felony conviction.
Broomfield was drafted in 1999 by the Cincinnati Bengals and, in 2000, he signed with the Arizona Cardinals. During the summer of 2001, he participated in the Jacksonville Jaguars training camp.
This case was investigated by the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Julie Hackenberry Duva.
Florida Business Owner Charged in Telemarketing-Related Fraud SchemeRead the Press Release
A Florida business owner was charged in an indictment unsealed today with participating in a scheme that sold the personal information of tens of thousands of individuals to fraudulent telemarketers, who in turn used the information to target potential victims for various fraudulent telemarketing schemes.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Field Office, Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office and Special Agent in Charge Paul Wysopal of the FBI’s Tampa, Florida, Field Office made the announcement.
Ronald John Mendleski, 72, of Bokeelia, Florida, was charged with one count of conspiring to commit wire fraud and three counts of wire fraud. He self-surrendered to the U.S. Marshals and will make his initial appearance later today before U.S. Magistrate Judge Carol Mirando of the Middle District of Florida. A trial date has not yet been set.
According to the indictment, beginning in approximately 2009, Mendleski operated an enterprise whose principal business was selling personal information—including names, phone numbers and addresses—to telemarketers. Mendleski allegedly specialized in providing in “sweepstakes leads,” which are the phone numbers and personal information of individuals who have responded to mass mailings notifying recipients that they have purportedly won or are about to win, expensive prizes and enormous cash payouts.
The indictment alleges that many of Mendleski’s clients provided information indicating that they intended to use the sweepstakes leads to defraud people; at least one client told Mendleski directly that he intended to engage in fraud. Nonetheless, Mendleski sold the requested personal information to his clients, knowing they would use the information to victimize vulnerable individuals.
Over the course of the scheme, Mendleski allegedly earned approximately $2 million by selling personal information to scammers. Many of the senior citizens identified by Mendleski were in fact subsequently defrauded.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI is investigating this matter. Trial Attorney Timothy A. Duree of the Criminal Division’s Fraud Section is prosecuting the case.
Federal Law Enforcement Officials to Hold Public Community Policing ConversationsRead the Press Release
BIRMINGHAM – The U.S. Attorney’s Office, FBI and U.S. Marshal Service will hold community policing discussion sessions for the public in Birmingham and Huntsville next week as part of the Justice Department’s National Community Policing Week.
First Assistant U.S. Attorney Robert O. Posey, FBI Special Agent in Charge Roger C. Stanton and U.S. Marshal Martin C. Keely will be available Monday night, Oct. 3, in Birmingham, and Thursday night, Oct. 6, in Huntsville, for “A Community Conversation Addressing Police and Community Relations.”
The meetings will provide community members an opportunity to meet the panelists, learn the roles their agencies have in the justice system, and ask them questions on issues of public safety and community policing.
Monday’s Community Conversation will be from 6 p.m. to 8 p.m. in the Arrington Auditorium of the Birmingham Public Library, 2100 Park Place.
Thursday’s meeting will be from 6 p.m. to 8 p.m. in the Student Services Building Welcome Center Theater on the University of Alabama in Huntsville campus, 1201 John Wright Dr.
The meetings are free and open to the public. For more information contact Phillip Howard at [email protected].
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Federal Jury Finds Naples Man Guilty in Connection with “PIP” Scheme to Defraud Automobile Insurance CompaniesRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Nesly Loute (52, Naples) guilty of conspiracy to commit mail fraud. He faces a maximum penalty of 20 years in federal prison. He was ordered detained pending sentencing on January 17, 2017. In addition, Loute must pay restitution to the victim automobile insurance companies and forfeit the proceeds of the offense.
Loute is the sixth individual to be convicted following the culmination of a two-year joint federal and state law enforcement investigation, dubbed Operation Fraudulent Pain. The investigation disrupted five unlicensed chiropractic clinics that had received more than $2 million in ill-gotten Personal Injury Protection (PIP) payments from automobile insurance companies.
According to testimony during the six-day trial, Loute conspired with others to operate unlicensed chiropractic clinics and bill automobile insurance companies for PIP benefits. Members of the conspiracy also paid patients to induce them to seek treatment at the unlicensed clinics so that the automobile insurance companies could be billed for their PIP benefits. In addition, members of the conspiracy participated in staged motor vehicle accidents and then submitted claims to automobile insurance companies for PIP benefits based on those fake accidents. More than $1 million in fraud proceeds were withdrawn from various bank accounts and through the use of a shell corporation.
Five other individuals previously pleaded guilty and are awaiting sentencing as a result of Operation Fraudulent Pain. They are Wisler Cyrius (35, Naples), Anouce Toussaint (33, Naples), Garry Joseph (37, Naples), Maria Victoria Lopez (44, Moore Haven), and David Adamson (47, Bonita Springs). Each faces a maximum penalty of 20 years in federal prison and must make restitution to the automobile insurance companies. In addition, the United States will seek a forfeiture money judgment from each defendant equal to the amount of proceeds obtained as a result of each offense.
This case was investigated by the Fort Myers offices of the Federal Bureau of Investigation, the State of Florida’s Department of Financial Services Division of Insurance Fraud’s, the Internal Revenue Service Criminal Investigation, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Assistance was also provided by the National Insurance Crime Bureau, the Florida Highway Patrol, the Florida Department of Health, Florida’s Agency for Health Care Administration, and the State Attorneys’ Offices for the 13th and 19th Judicial Circuits. The following insurance companies also assisted with the case: Travelers, Nationwide, Bristol West, Esurance, Windhaven, Farmers, Direct General, Allstate, State Farm, Progressive, Geico, Infinity, and Foremost. It is being prosecuted by Assistant United States Attorneys David G. Lazarus and Charles D. Schmitz.
Federal Jury Finds Gainesville Man Guilty of Conspiring to Distribute More Than Five Kilograms of CocaineRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury found Rodane Lamb (26, Gainesville) guilty of conspiring to distribute five kilograms or more of cocaine. He faces a maximum penalty of life in federal prison. His sentencing hearing is scheduled for December 16, 2016.
Lamb was first indicted on November 20, 2015. That indictment was superseded on March 17, 2016.
According to evidence presented at trial, beginning in 2012, Lamb participated in a conspiracy to distribute more than 50 kilograms of cocaine that had been supplied by the Sinaloa Cartel. Lamb and his co-conspirators, each of whom previously pleaded guilty for their role in the conspiracy, used the United States mail to ship boxes containing hundreds of thousands of dollars in cash to California, which was used to purchase cocaine. The conspirators then used various carriers to ship dozens of kilograms of cocaine back to central Florida, where it was further distributed. The United States Postal Inspection Service confiscated more than $700,000 that had been shipped by the conspirators through the mail.
Testimony further showed that in August 2015, Lamb’s California-based source of cocaine traveled to Florida and directed 50 kilograms of cocaine to be delivered by truck to Ocala, intending that the members of the conspiracy would distribute the cocaine from there. The wholesale value of that cocaine was approximately $1.7 million. The conspirators distributed 10 kilograms of that cocaine. The conspiracy ended on August 5, 2015, when Drug Enforcement Administration agents arrested members of the conspiracy and confiscated the remaining 40 kilograms of cocaine, along with approximately $250,000.
This case was investigated by the Drug Enforcement Administration, the United States Postal Inspection Service, the Internal Revenue Service – Criminal Investigation, the Gainesville Alachua County drug task force, the Ocala Police Department, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Jay Taylor and Laura Cofer Taylor.
Federal Indictment Charges Eight with Participating in Doña Ana County Cocaine Trafficking RingRead the Press Release
ALBUQUERQUE – Last week a federal grand jury indicted eight individuals on conspiracy and cocaine trafficking charges based on a DEA-led investigation into a drug trafficking organization that allegedly distributed cocaine in Doña Ana County, N.M. Seven of the eight defendants were arrested today during an early morning law enforcement operation that also included the execution of search warrants at two residences in Las Cruces, N.M., and two residences in Sunland Park, N.M.
The indictment and arrests were announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Will R. Glaspy of DEA’s El Paso Division.
The 18-count indictment is the result of a six-month investigation, which was designated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) program, targeting a drug trafficking organization allegedly led by Joel Ibarra-Torres, 46, a Mexican national, that allegedly distributed cocaine in Doña Ana County. Ibarra-Torres has yet to be arrested and is considered a fugitive.
The indictment alleges that Ibarra-Torres and seven co-conspirators, including several members of Ibarra-Torres’ family, participated in a cocaine trafficking conspiracy that existed from at least March 31, 2016 until Sept. 20, 2016. The indictment also alleges that Ibarra-Torres and two of his co-defendants participated in an international money laundering conspiracy. It also charges certain of the defendants with substantive cocaine trafficking offenses and with using telephones to facilitate their drug trafficking activity. The indictment includes forfeiture provisions that seek the forfeiture of at least $31,620, constituting proceeds of the defendants’ alleged criminal activities, to the United States.
Initial appearances, which will be held at the federal courthouse in Las Cruces, for the seven defendants arrested today have yet to be scheduled.
The investigation leading to the indictment was conducted by the Las Cruces office of the DEA, the U.S. Border Patrol and the FBI. The U.S. Marshals Service, Homeland Security Investigations, National Guard, Sunland Park Police Department, New Mexico State Police and the Las Cruces Police Department participated in today’s law enforcement operation. The case is being prosecuted by Assistant U.S. Attorneys Terri J. Abernathy and Sarah M. Davenport of the U.S. Attorney’s Las Cruces Branch office.
Indictment in United States v. Joel Ibarra-Torres, et al. 16-CR-3796
Summary of the Charges
Count 1 of the Indictment charges the eight defendants with participating in a cocaine trafficking conspiracy in Doña Ana County and elsewhere from at least March 31, 2016 through Sept. 20, 2016. The statutory penalty for a conviction on this count is imprisonment for not less than five years and not more than 40 years.
Count 2 charges three defendants with participating in a money laundering conspiracy in Doña Ana County from at least June 15, 2016 through Sept. 20, 2016. The maximum statutory penalty for a conviction on this count is 20 years.
Count 3, 5 and 8 charge certain defendants with distributing cocaine in Doña Ana County on June 9, 2016, July 14, 2016, and Aug. 25, 2016. The maximum statutory penalty for a conviction on each of these counts is imprisonment for 20 years.
Counts 4, 6, 7 and 9 charge certain defendants with possession of cocaine with intent to distribute in Doña Ana County on July 14, 2016, Aug. 25, 2016 and Aug. 26, 2016. The maximum statutory penalty for a conviction on each of these counts is imprisonment for not less than five years and not more than 40 years.
Counts 10 through 18 charge certain defendants with using a communication facility, a telephone, in furtherance of a drug trafficking crime in Doña Ana County on June 29, 2016, July 13, 2016, July 14, 2016, July 15, 2016, July 25, 2016 and July 31, 2016. The maximum statutory penalty for a conviction on each of these counts is imprisonment for four years.
Defendants Charged in Indictment
- Joel Ibarra-Torres, 46, a Mexican national, is charged in Counts 1, 2, 12, 16, and 18. Ibarra-Torres has yet to be arrested and is considered a fugitive.
- Noemi Ibarra, 23, of Las Cruces, N.M., is charged in Counts 1, 2, 6, 11, 13, 15, 16, and 18.
- Joel Ibarra, Jr., 21, of Sunland Park, N.M., is charged in Counts 1, 2, 6 and 13.
- Juan Velazquez, 26, of Las Cruces, is charged in Counts 1, 3- 5, 7-12, 14, 15 and 17.
- Alejandro Chavez, 27, of Las Cruces, is charged in Counts 1, 9, 10 and 17.
- Rene Cruz-Vargas, 40 a Mexican national, is charged in Counts 1, 4, 7 and 14.
- Denise Duarte, 24, of Sunland Park, is charged in Count 1.
- Gabriela Castro, 24, a legal permanent resident from El Paso, Texas, is charged in Count 1.
Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
Dothan Man Pleads Guilty to Federal Crime Stemming from Involvement in Fraudulent Sales of Iraqi CurrencyRead the Press Release
Montgomery, Ala. – Theodore Stanley Hudson, II, 52, a Dothan, Alabama resident, pleaded guilty Tuesday to a misdemeanor offense resulting from his involvement in a fraudulent scheme to sell Iraqi currency, announced United States Attorney George L. Beck, Jr. and Joseph P. Borg, Director of the Alabama Securities Commission.
According to court documents, an Illinois man, Husam Usama Tayeh, operated a website to fraudulently sell dinar, the official currency of Iraq. Hudson assisted Tayeh in the operation of the fraudulent dinar business. To carry out the scheme, the business’s website misused the seal of the United States Treasury. Hudson pleaded guilty to the specific offense of aiding and abetting the unauthorized use of a government seal. In total, the fraudulent dinar business received over $50 million dollars from purchasers all over the country in return for Iraqi currency.
Hudson is scheduled to be sentenced in January of 2017 where he faces a maximum sentence of one year in prison, as well as a fine.
“The perpetrators of this scheme induced individuals from all of the country to give up their hard earned American dollars for nearly worthless Iraqi currency,” stated United States Attorney Beck. “This case demonstrates that my office is committed to prosecuting each and every person responsible for carrying out this fraud.”
“We are proud of the work of the FBI and the United States Attorney for the Middle District of Alabama and honored to once again partner with them to help stop deceptive practices by persons determined to harm capital markets using misleading tactics to lure investors into no- win schemes,” stated Alabama Securities Commission Director Borg.
The case was investigated by the FBI and the Alabama Securities Commission. Assistant U.S. Attorneys Jonathan S. Ross and Kevin P. Davidson are prosecuting the case, along with Steven P. Feaga, Deputy Director of the Alabama Securities Commission for Enforcement and Prosecution, and Amanda W. Senn, General Counsel of the Alabama Securities Commission.
Corpus Christi Resident Sentenced in Laredo for Marijuana DistributionRead the Press Release
LAREDO, Texas – A 47-year-old Corpus Christi man has been sentenced in Laredo federal court following his conviction of possession with the intent to distribute 1,000 kilograms or more of marijuana and possession of a firearm in furtherance of a drug crime, announced U.S. Attorney Kenneth Magidson. A federal Jury convicted Michael Taylor on May 4, 2016, following a three-day trial.
Today, U.S. District Judge George P. Kazen handed Taylor a 180-month sentence to be immediately followed by five years of supervised release. He was further ordered to complete 200 hours of community service in lieu of a fine.
At trial, the government presented evidence that on Aug. 31, 2015, Taylor attempted to smuggle a load of marijuana in a pickup truck through a ranch located east of Laredo near Bruni. After Border Patrol (BP) agents attempted to stop Taylor, he led them on a four-mile high-speed chase along Highway 359 before turning off the highway and into the brush outside of Hebbronville. He travelled approximately 150 yards before abandoning the vehicle and absconding on foot.
Border Patrol reached the truck but it was engulfed in flames within minutes. They contacted the Hebbronville Volunteer Fire Department who extinguished the fire that was beginning to spread into the surrounding brush.
Meanwhile, BP agents tracked Taylor through the brush with the assistance of BP’s Air Operations. They eventually found him approximately 100 yards from the pickup truck hiding in the brush. At the time of his arrest, agents also discovered a loaded Ruger handgun in his back pocket.
Taylor will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
BP and the Drug Enforcement Administration investigated. Assistant U.S. Attorney Christopher S. Coker and Michael Bukiewics prosecuted the case.
Convicted Sex Offender Sentenced to More Than 13 years in Prison for His Role in the Distribution of Images of a Three-Year-Old ChildRead the Press Release
Assistant U.S. Attorney Alessandra Serano (619) 546-8104
NEWS RELEASE SUMMARY – September 30, 2016
SAN DIEGO, CA – Antonio Glen Boleware, a 39-year-old convicted sex offender and former Marine, was sentenced in federal court today to 158 months in prison for child pornography-related offenses.
According to statements made in court, Boleware was communicating with his girlfriend, 44-year-old Joanna Olson, of Washington State, who was taking illicit photos of a three-year old girl and sending them to Boleware. Boleware was distributing those images and other illicit images to other individuals using an online texting application.
Olson, who pleaded guilty to distribution of child pornography, was sentenced in July to five years in prison for her role in the child pornography exchange. The prosecutor in that case in federal court in Washington state wrote in court papers that the abuse has had a devastating impact on the child.
Boleware was previously convicted of lewd and lascivious acts with a minor under 14 years in 2004.
During Boleware’s sentencing hearing, U.S. District Judge Gonzalo P. Curiel stated that Boleware’s distribution of the photos “magnified the seriousness of the offense” because “the material is on the internet forever, available to predators.”
Before the sentence was handed down, Assistant U.S. Attorney Alessandra Serano urged Judge Curiel to impose the maximum 20-year prison term given Boleware’s “continued involvement in the exploitation of minors over several years.”
In this case, Boleware pleaded guilty in October 2015, admitting to possession of child pornography with a prior sex offense conviction.
“This defendant has continually victimized children who are unable to protect themselves,” said U.S. Attorney Laura Duffy. “There is no higher priority than protecting children from predators like Mr. Boleware.”
DEFENDANT Criminal Case No. 15CR2462-GPS
Antonio Glen Boleware Age: 39 San Diego
SUMMARY OF CHARGES
Possession of Child Pornography with a Prior Sex Offense, in violation of 18 U.S.C. §2252(a)(2)
Maximum Penalties: Twenty years in prison, mandatory minimum 10 years
INVESTIGATING AGENCY
Federal Bureau of Investigation
Conspirators Sentenced to Federal Prison for Identity Theft SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Shivani Patel, age 30, of Reisterstown, Maryland, to three years in prison, followed by five years of supervised release, and sentenced co-defendant Eddie Carey, age 32, of Baltimore, and two years in prison, followed by three years of supervised release, for their roles in a bank fraud scheme which used the PII and credit information of over 200 victims to fraudulently obtain credit. Judge Bredar also entered an order requiring Patel and Carey each to pay restitution of $61,030.78.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Chief James Johnson of the Baltimore County Police Department.
According to their plea agreements and court documents, from at least June to December 18, 2013, Patel and her then boyfriend Carey conspired with Tariq Hicks and others to defraud financial institutions by accessing stolen credit card and debit card accounts belonging to real people and using counterfeit cards encoded with the stolen account information to make unauthorized purchases.
Hicks purchased the stolen account information over the internet. Patel and Hicks used a computer and an electronic device to encode the stolen credit and debit card information onto existing credit cards, gift cards, or other similar cards, which were sold or distributed to co-conspirators, such as Carey. The co-conspirators used the cards and provided the bulk of the proceeds to Hicks. Patel often delivered cards to the individuals who were conducting transactions, and recruited workers.
Hicks also purchased or obtained over the internet “credit profiles” containing the identity information of victims, then obtained full credit reports for these victims. Hicks gave this information to Patel, Cary and others, who went into stores where the victims had existing credit accounts, and used the victim’s PII to make purchases on the existing accounts (called “account takeover”). In addition, Hicks used the credit reports to identify stores at which a victim did not have an account, and sent Patel, Carey and others into those stores with the same PII to apply for new credit accounts in the victim’s identity. They then use that “instant credit” to make purchases before the victim learned of the account.
For all of these schemes, Hicks obtained fraudulent drivers’ licenses which bore the information of the victim, but the photograph of a co-conspirator. Patel had many such identifications which bore her photo but the identity information of victims. The co-conspirators could use the counterfeit license and the victims’ PII to establish their identity as the victim. Patel and others instructed those using the cards and information to travel to other states to engage in the fraud. Patel and Carey and other co-conspirators frequently traveled north to Pennsylvania and south as far as Georgia to engage in fraud, as well as the states that lie between Baltimore and Atlanta, including North and South Carolina, West Virginia, and Virginia.
Carey assisted Hicks by conducting wire transfers of money in payment for the stolen credit card numbers and personal profiles. Carey always used a victim identity, provided by Hicks, to wire the money, usually between $2,000 and $3,000, to an individual in the Ukraine. As one of the few men participating in the conspiracy, Carey was often involved in the exploitation of any male victim’s identity and account information. He used the counterfeit cards both to purchase merchandise and to rent cars for use by members of the conspiracy.
On December 18, 2013, a search warrant was executed at Patel, Carey, and Hicks’ residence. A complete set up for the fraud scheme was on the dining table, including a computer with the credit profiles and credit reports, credit cards in various states of manufacture, money gram receipts for payments for the stolen credit card numbers and profiles, lists of personal identity information, dozens of credit cards bearing victims’ names and accounts, as well as dozens of fraudulent identification to match the credit cards, all bearing the information of the victims but the photographs of co-conspirators.
In a basement space shared by Patel and Carey were more lists of victim information and a receipt for a storage locker rented to “Aishwarya Gupta,” a fictitious identity that Patel created as an alter ego and used to obtain a $42,073.22 loan for the purchase of a 2010 BMW 528XI. There was also a small notebook in Patel’s handwriting with the PII of numerous individuals; notations as to money grams which had to be sent to individuals in Kiev and the amounts owed; and other information related to the scheme.
Judge Bredar previously sentenced Tariq Hicks, age 48, of Owings Mills, Maryland, to 65 months in prison, and sentenced co-defendant Ishia Cason, age 36, of Baltimore, to 42 months in prison. Judge Bredar also ordered Hicks to forfeit the credit and identification card counterfeiting equipment seized during the investigation and ordered Hicks and Cason to pay restitution of $61,030.78.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended HSI-Baltimore, the U.S. Secret Service, and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.
Cocoa Man Convicted of Sex Trafficking of A Child and Production of Child PornographyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury found Kennedy Harris, Jr., (23, Cocoa) guilty of sex trafficking of a child, with force, fraud, or coercion, and production of child pornography. He faces a maximum penalty of life in federal prison. His sentencing hearing is scheduled for December 19, 2016. Harris was indicted on May 11, 2016.
According to testimony and evidence presented at trial, in January 2016, Harris took in the victim, a 16-year old girl at the time, after she ran away from home. Harris then took sexually suggestive photographs of the victim and advertised her for sex on Backpage.com. He also enticed the victim to engage in sexually explicit conduct for the purpose of photographing her. Over the course of approximately two weeks, the victim had sex with up to eight individuals per day, and gave the money to Harris. In exchange for her sex acts, Harris gave the victim crack cocaine nearly every day. On February 10, 2016, the victim was recovered by the Cocoa Police Department.
This case was investigated by Federal Bureau of Investigation, the Brevard County Sheriff’s Office, and the Cocoa Police Department. It is being prosecuted by Assistant United States Attorney Tiffany L. Cummins.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Chief Executive Officer of Pharmaceutical Company Charged in $100 Million Fraud SchemeRead the Press Release
Scheme Caused the Collapse and Failure of One of Puerto Rico’s Largest Banks
The former chairman and CEO of a multinational pharmaceutical company was charged in an indictment unsealed today in connection with a fraud scheme that caused over $100 million in losses and led to the collapse and failure of Westernbank Puerto Rico (Westernbank), once one of Puerto Rico’s largest banks.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa Emilia Rodriguez-Vélez of the District of Puerto Rico, Acting Inspector General Fred W. Gibson of the Federal Deposit Insurance Corporation’s Office of Inspector General (FDIC-OIG), Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service-Criminal Investigation (IRS-CI) Miami Field Office, Acting Special Agent in Charge Ricardo Mayoral of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Juan and Special Agent in Charge Douglas A. Leff of the FBI’s San Juan Division made the announcement.
Jack Kachkar, 53, of Key Biscayne, Florida, was charged with eight counts of wire fraud in an indictment filed on Aug. 4, 2016, in the Southern District of Florida. Kachkar was arrested and made his initial appearance today.
According to the indictment, from 2005 to 2007, Kachkar served as chairman and CEO of Inyx Inc., which was publicly traded on the Nasdaq Over-the-Counter Bulletin Board. Beginning in early 2005, Kachkar and others allegedly caused Westernbank to enter into a series of agreements to provide loans and lines of credit to Inyx and its subsidiaries in exchange for a security interest in the assets of Inyx and its subsidiaries.
The indictment alleges that Kachkar caused false and fraudulent customer invoices to be submitted as collateral for loans from Westernbank; made false and fraudulent representations to Westernbank executives about purported imminent repayments of the Inyx loans and the value of assets he pledged as a guarantee for these loans; and misappropriated and embezzled the fraud proceeds for his personal use and benefit. During the course of the scheme, Kachkar allegedly misappropriated approximately $25 million in fraudulent proceeds to his personal bank accounts and also misappropriated an additional $9.6 million in fraudulent proceeds to a bank account in the name of his associate. Kachkar also allegedly used the proceeds from the scheme to pay for, among other things, multiple high-end real estate properties in Miami, luxury vehicles and a private jet.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FDIC-OIG, IRS-CI, HSI and FBI investigated the case. Trial Attorney Michael N. Berger and Senior Litigation Counsel John Michelich of the Criminal Division’s Fraud Section are prosecuting the case.
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.
Chief Executive Officer of Pharmaceutical Company Charged in $100 Million Fraud SchemeRead the Press Release
Scheme Caused the Collapse and Failure of One of Puerto Rico’s Largest Banks
The former chairman and CEO of a multinational pharmaceutical company was charged in an indictment unsealed today in connection with a fraud scheme that caused over $100 million in losses and led to the collapse and failure of Westernbank Puerto Rico (Westernbank), once one of Puerto Rico’s largest banks.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, U.S. Attorney Rosa Emilia Rodriguez-Vélez of the District of Puerto Rico, Acting Inspector General Fred W. Gibson of the Federal Deposit Insurance Corporation’s Office of Inspector General (FDIC-OIG), Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service-Criminal Investigation (IRS-CI) Miami Field Office, Acting Special Agent in Charge Ricardo Mayoral of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Juan and Special Agent in Charge Douglas A. Leff of the FBI’s San Juan Division made the announcement.
Jack Kachkar, 53, of Key Biscayne, Florida, was charged with eight counts of wire fraud in an indictment filed on Aug. 4, 2016, in the Southern District of Florida. Kachkar was arrested and made his initial appearance today.
According to the indictment, from 2005 to 2007, Kachkar served as chairman and CEO of Inyx Inc., which was publicly traded on the Nasdaq Over-the-Counter Bulletin Board. Beginning in early 2005, Kachkar and others allegedly caused Westernbank to enter into a series of agreements to provide loans and lines of credit to Inyx and its subsidiaries in exchange for a security interest in the assets of Inyx and its subsidiaries.
The indictment alleges that Kachkar caused false and fraudulent customer invoices to be submitted as collateral for loans from Westernbank; made false and fraudulent representations to Westernbank executives about purported imminent repayments of the Inyx loans and the value of assets he pledged as a guarantee for these loans; and misappropriated and embezzled the fraud proceeds for his personal use and benefit. During the course of the scheme, Kachkar allegedly misappropriated approximately $25 million in fraudulent proceeds to his personal bank accounts and also misappropriated an additional $9.6 million in fraudulent proceeds to a bank account in the name of his associate. Kachkar also allegedly used the proceeds from the scheme to pay for, among other things, multiple high-end real estate properties in Miami, luxury vehicles and a private jet.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FDIC-OIG, IRS-CI, HSI and FBI investigated the case. Trial Attorney Michael N. Berger and Senior Litigation Counsel John Michelich of the Criminal Division’s Fraud Section are prosecuting the case.
Bureau of Prisons inmate convicted, sentenced on assault chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Isaac Pettiford, 40, formerly incarcerated at the United States Penitentiary Hazelton, was convicted and sentenced to 10 months today for assaulting a registered nurse, U.S. Attorney William J. Ihlenfeld, II, announced.
In December 2015, Pettiford forcibly assaulted a registered nurse while she was engaged in her official duties at United States Penitentiary Hazelton. He pled guilty today to one count of “Assault of a Federal Employee.”
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Federal Bureau of Prisons Special Investigations Services Unit investigated.
U.S. District Judge Irene M. Keeley presided.
Buffalo Man Pleads Guilty to Gun ChargeRead 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 Darryl Bagby, 33, of Buffalo, NY, pleaded guilty before Chief U.S. District Court Judge Frank P. Geraci to being a felon in possession of ammunition. The conviction carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that on November 25, 2015, the Erie County Sheriff’s Office executed a search warrant at the defendant’s residence at 116 Bidwell Parkway in Buffalo. Deputies recovered two rounds of ammunition, more than $19,000 in cash, cocaine, a digital scale, and other drug paraphernalia. Further investigation determined that the ammunition was manufactured in Russia and Minnesota. As a prior convicted felon, Babgby is prohibited from legally possessing ammunition.
The plea is the culmination of an investigation by the Erie County Sheriff’s Department, under the direction of Timothy Howard, and 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 January 26, 2017 before Judge Geraci.
Broker-Dealer Gets Three Years in Prison for Trading on Inside Information Stolen from Prominent Law FirmRead the Press Release
TRENTON, N.J. – A broker-dealer was sentenced today to 36 months in prison for participating in a five-year insider trading scheme that relied on information stolen from an international law firm and yielded net profits of more than $5.6 million, U.S. Attorney Paul J. Fishman announced.
Vladimir Eydelman, 44, formerly of Colts Neck, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of conspiracy to commit securities and tender offer fraud, one count of securities fraud, and one count of tender offer fraud. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
From 2009 to 2013, Eydelman, a broker-dealer employed first by Oppenheimer & Co. and most recently by Morgan Stanley, repeatedly traded on material nonpublic information provided to him by his brokerage client, Frank Tamayo, 43, of Brooklyn, New York, who, in turn, had obtained the inside information from his friend and former law school classmate, Steven Metro, 42, of Katonah, New York. Metro was the managing clerk of the New York office of Simpson Thacher & Bartlett LLP, one of the nation’s premier mergers and acquisitions firms.
The inside information divulged by Metro to Tamayo and, in turn, by Tamayo to Eydelman, related to corporate transactions, such as mergers and acquisitions or tender offers, in which the law firm represented a party or financial advisor to the transaction. As the law firm’s managing clerk, a litigation-related function, Metro did not personally work on most of the corporate transactions at issue. In most instances, Metro stole the inside information from the firm by scouring its computer system using search terms such as “merger agreement,” “bid letter,” “engagement letter,” “due diligence,” as well as client names and client-matter numbers.
After obtaining the information, Metro divulged it to Tamayo in person, usually meeting at a bar, coffee shop, or other location near their respective workplaces in midtown Manhattan. During such meetings, Metro provided Tamayo inside information pertaining to, among other things, the names and/or ticker symbols of the companies whose securities should be purchased, the general timing of the planned deals, and information related to how the deals would affect the issuers’ stock price once announced. Tamayo generally would write the security’s ticker symbol on a small piece of paper or napkin and commit to memory any pricing or timing information provided by Metro.
After Tamayo received the inside information from Metro, Tamayo would meet with Eydelman, usually at a location near Eydelman’s workplace, such as under the large clock in New York City’s Grand Central Terminal, where Tamayo would pass it on to Eydelman. Tamayo would show Eydelman the paper or napkin on which Tamayo had written the ticker symbol of the company whose securities should be purchased. After Eydelman memorized the ticker symbol, Tamayo then would place the paper or napkin into his mouth and chew it until it was destroyed.
After receiving the inside information provided by Metro, whom Eydelman knew as Tamayo’s source at a law firm, Eydelman purchased securities for himself, family members, friends, and clients, including Tamayo. Eydelman quickly sold the shares and covered any positions once the relevant deal was publicly announced and the stock price rose.
Throughout the course of the five-year scheme, Tamayo reinvested the approximately $7,000 in profits that Metro made on the first deal and updated Metro on the running balance of his profits from the insider trading scheme. As of October 2013, by which time the conspirators had traded ahead of at least 13 planned corporate transactions, Metro’s share of the profits had reached approximately $168,000. Metro sought to cash out his share of the accrued profits from the insider trading scheme, pressing Tamayo to “liberate some cash” during a meeting in January 2014. Eydelman paid approximately $7,000 in cash to Tamayo in February 2014, with the expectation that Tamayo would use the cash to compensate Metro for providing them inside information.
By exploiting the information that Metro had stolen from the law firm, Eydelman and conspirators Metro and Tamayo netted more than $5.6 million in illicit profits.
In addition to the prison term, Judge Shipp sentenced Eydelman to three years of supervised release, fined him $15,000, and ordered him to forfeit $1,236,657.13.
Metro and Tamayo have both pleaded guilty to their roles in the scheme. On Sept. 14, 2016 Metro was sentenced to 46 months in prison. On Sept. 21, 2016, Tamayo was sentenced to 12 months in prison.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, for the investigation leading to today’s sentencing. He also thanked the U.S. Securities and Exchange Commission’s Market Abuse Unit, under the direction of Robert Cohen and Joseph Sansone.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu of the Special Prosecutions Division of the U.S. Attorney’s Office in Newark, and R. Joseph Gribko of the U.S. Attorney’s Office in Trenton, as well as Unit Acting Chief Barbara Ward and Assistant U.S. Attorney Jafer Aftab of the Office’s Asset Forfeiture and Money Laundering Unit.
These charges are part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.Defense counsel: Walter F. Timpone Esq. and John P. Leonard Esq., Morristown, New Jersey
Bossier City, Louisiana, Housing Authority Agrees to Pay $120,000 and Implement Reforms to Settle Justice Department LawsuitRead the Press Release
The Justice Department announced today that the Bossier City, Louisiana, Housing Authority (BCHA) has agreed to pay $120,000 and adopt new policies and practices to settle a lawsuit alleging that it discriminated on the basis of race and disability, in violation of the Fair Housing Act. The settlement must still be approved by the U.S. District Court for the Western District of Louisiana.
The complaint alleges that from 2007 to 2014, BCHA assigned elderly residents to housing on the basis of race, rather than by their place on the waiting list, and restricted residents with disabilities primarily to one of BCHA’s seven apartment complexes. Specifically, the Justice Department alleges that BCHA assigned white elderly residents to Patricia Plaza I or Patricia Plaza II, the two complexes that it had reserved for elderly persons. By contrast, the complaint alleges that BCHA assigned African-American elderly residents to one of its other five complexes, all of which were at least 90 percent African-American. The complaint further alleges that BCHA primarily assigned residents with disabilities to Patricia Plaza II and did not consider such residents for vacancies at BCHA’s six other properties.
“Denying housing or dictating where someone can live based on their race or disability perpetuates residential segregation and violates federal law,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This settlement ensures equal access to federally-subsidized housing in Bossier City, and the department will continue to confront discriminatory policies or practices in the housing market throughout the country.”
“All of the residents of our district deserve to live in housing managed with policies that are free of discrimination,” said U.S. Attorney Stephanie A. Finley of the Western District of Louisiana. “In some cases, these federally-subsidized housing units are the last resort for those seeking a place to live. Their situations should not be further complicated or burdened by illegal actions taken by those tasked with meeting their needs.”
If approved by the district court, the settlement will require BCHA to implement non-discriminatory policies and procedures to ensure compliance with the Fair Housing Act and to ensure that BCHA housing units are made available for rent based on an applicant’s position on its waiting list, irrespective of race or disability. In addition, BCHA employees who are responsible for making housing decisions will receive training on the new non-discriminatory policies and procedures, the consent decree and the Fair Housing Act.
In addition, BCHA will pay $120,000 to compensate elderly persons or persons with disabilities who were passed over on the waiting list or otherwise denied the right to move into the apartment of their choice because of race or disability. Such persons who are current tenants will also be allowed to request a transfer on a priority basis. The settlement establishes a process for identifying people who are entitled to share in the settlement fund. Persons who believe they were subjected to unlawful discrimination at one of BCHA properties and may be entitled to receive compensation should contact the Justice Department toll-free at 1-800-896-7743, Mailbox 9993, or email the department at [email protected]. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Bossier Complaint Bossier Consent DecreeBossier City Housing Authority agrees to pay $120,000 and implement reforms as a result of Justice Department lawsuitRead the Press Release
WASHINGTON – The Justice Department and U.S. Attorney Stephanie A. Finley announced today that the Bossier City Housing Authority (BCHA) has agreed to pay $120,000 and adopt new policies and practices to settle a lawsuit alleging that it discriminated on the basis of race and disability in violation of the Fair Housing Act. The settlement must still be approved by the U.S. District Court for the Western District of Louisiana.
The complaint alleges that from 2007 to 2014, BCHA assigned its elderly residents to housing in their seven complexes on the basis of race, rather than by their place on waiting lists. BCHS also restricted residents with disabilities primarily to one of BCHA’s seven apartment complexes. Specifically, the Justice Department alleges that BCHA assigned white elderly residents to Patricia Plaza I or Patricia Plaza II, the two complexes that it had reserved for elderly persons. By contrast, the complaint alleges that BCHA assigned African-American elderly residents to one of its other five complexes, all of which were at least 90 percent African-American. The complaint further alleges that BCHA primarily assigned residents with disabilities to Patricia Plaza II and did not consider such residents for vacancies at BCHA’s six other properties.
“Denying housing or dictating where someone can live based on their race or disability perpetuates residential segregation and violates federal law,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This settlement ensures equal access to federally-subsidized housing in Bossier City, and the department will continue to confront discriminatory policies or practices in the housing market throughout the country.”
“All of the residents of our district deserve to live in housing managed with policies that are free of discrimination,” said U.S. Attorney Stephanie A. Finley of the Western District of Louisiana. “In some cases, these federally-subsidized housing units are the last resort for those seeking a place to live. Their situations should not be further complicated or burdened by illegal actions taken by those tasked with meeting their needs.”
If approved by the district court, the settlement will require BCHA to implement non-discriminatory policies and procedures to ensure compliance with the Fair Housing Act and to ensure that BCHA housing units are made available for rent based on an applicant’s position on its waiting list, irrespective of race or disability. In addition, BCHA employees who are responsible for making housing decisions will receive training on the new non-discriminatory policies and procedures, the consent decree and the Fair Housing Act.
In addition, BCHA will pay $120,000 to compensate elderly persons or persons with disabilities who were passed over on the waiting list or otherwise denied the right to move into the apartment of their choice because of race or disability. Such persons who are current tenants will also be allowed to request a transfer on a priority basis. The settlement establishes a process for identifying people who are entitled to share in the settlement fund. Persons who believe they were subjected to unlawful discrimination at one of BCHA properties and may be entitled to receive compensation should contact the Justice Department toll-free at 1-800-896-7743, Mailbox 9993, or email the department at [email protected]. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Biopharmaceutical Company Executive Arrested and Charged with Insider TradingRead the Press Release
BOSTON – An executive of a California-based biopharmaceutical company was arrested yesterday and charged in U.S. District Court in Boston in connection with trading on insider information and profiting nearly $1 million.
Robert Gadimian, 46, of Burbank, Calif., was indicted on seven counts of securities fraud and insider trading.
According to the indictment, from November 2011 to October 2014, Gadimian was the Senior Director of Regulatory Affairs at Puma Technology, Inc., a biopharmaceutical company based in California whose principal focus was the development of a breast cancer drug called “neratinib.” Puma was involved in several ongoing drug trials for neratinib including one that a Massachusetts-based consulting firm was conducting for Puma.
The indictment further alleges that by virtue of his position at Puma, including his attendance at steering committee meetings and project team meetings related to ongoing drug trials, Gadimian learned sensitive, non-public information about the ongoing trials and made significant profits from trading on the inside information. Gadimian also did so in violation of Puma’s insider trading policy. Specifically, Gadimian allegedly profited approximately $95,000 in 2013 and approximately $1,060,000 in 2014.
Specifically, the indictment alleges that in July 2014, Gadimian purchased a series of short-term Puma call options in advance of a July 22, 2014 public announcement that Puma achieved positive results during one of the trials. The following day, Puma’s stock price jumped approximately 295 percent, and Gadimian then allegedly sold all the call options he purchased and profited $910,000 from his illegal trades.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
The Securities and Exchange Commission, which conducted a parallel civil investigation, cooperated with criminal authorities in bringing this case.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Neil J. Gallagher, Jr. of Ortiz’s Economic Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Baltimore Drug Dealer Sentenced to 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced James Webb, Jr. age 42, of Perry Hall, Maryland today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with the intent to distribute cocaine and heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Commissioner Kevin Davis of the Baltimore Police Department; and Chief James W. Johnson of the Baltimore County Police Department.
According to information presented to the court at Webb’s plea and sentencing hearings, from May through November 2015, Webb distributed cocaine and heroin which he obtained from co-conspirators in Houston, Texas. The co-conspirators made regular trips from Houston to Baltimore, bringing with them kilograms of cocaine and heroin, and then returning to Houston with the cash proceeds of those sales.
As a result of the DEA investigation, which included a court-ordered wiretap on Webb’s cellphone, on November 8, 2015, Webb was arrested and a search warrant was executed at Webb’s stash house in Parkville, Maryland. From that location, investigators recovered a hydraulic press intended for the repackaging of narcotics, packaging material, and other paraphernalia associated with drug distribution. From a storage unit in the basement of this apartment building, investigators seized more than five kilograms of cocaine and more than one kilogram of heroin. The co-conspirators had brought these drugs to Webb from Houston and they had left the stash house to return to Houston just prior to the searches conducted by police.
At today’s hearing, the government argued that during the course of the conspiracy, Webb obtained more than 15 kilograms but less than 50 kilograms of cocaine (including its equivalent in heroin) which was intended for distribution.
United States Attorney Rod J. Rosenstein praised the DEA, Baltimore Police Department and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys James G. Warwick and Joshua T. Ferrentino, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Albion Man Sentenced to 240 Years in Prison for Sexually Exploiting ChildrenRead the Press Release
GRAND RAPIDS, MICHIGAN – Jeffrey Duane Cox, 44, of Albion, Michigan was sentenced to 240 years in federal prison for sexual exploitation of children and possession of child pornography, U.S. Attorney Patrick A. Miles, Jr. announced today. In addition to the prison term, Chief U.S. District Judge Robert J. Jonker ordered Cox to pay $4,916 in restitution. Cox must also register as a sex offender, and, if he is ever released from prison, he will be subject to a lifetime term of supervised release.
Earlier this year, a jury convicted Cox of seven counts of Sexual Exploitation of a Child and two counts of Possession of Child Pornography, after hearing testimony and reviewing evidence during a six-day trial. The evidence presented at trial showed that Cox sexually abused and exploited seven children during 2012, 2013, and 2014. He lured the children into his home, convinced them to trust him, and then sexually abused and exploited them. Cox photographed and videotaped the children engaged in sexually explicit conduct in his home, personally taking photographs and setting up video cameras to record the exploitation, and sometimes using another person to take the photographs. Cox stored the images and video on multiple devices in his home in Albion.
In its sentencing memorandum, the U.S. Attorney’s Office noted that the seriousness of Cox’s crimes could not be overstated. "Children are amongst the most vulnerable of victims, and the children in this case were particularly vulnerable to the defendant for a host of reasons." These children "will bear the emotional and psychological scars from his abuse their entire lives." The sentencing memorandum further noted that Cox remains unrepentant and will continue to pose a risk to children unless he remains incarcerated.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
This case was investigated by a consortium of law enforcement agencies and departments, including the Department of Homeland Security, Homeland Security Investigations (HSI), Albion Department of Public Safety, Emmett Township Department of Public Safety, Battle Creek Police Department, and Calhoun County Sheriff’s Office. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
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ATF and Pueblo Police Department Arrest Two Following Jail Murder-for-Hire PlotRead the Press Release
DENVER – Reina Ashley Gonzales, age 28, of Pueblo, and Ricardo Estevan Suazo, age 26, who was is in the Pueblo County Detention Facility, have been charged by Criminal Complaint with Conspiracy to Commit a Murder-for-Hire facilitated by interstate commerce (land line phones and cell phones), the U.S. Attorney’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Pueblo Police Department announced. Both defendants appeared before a Magistrate Judge in U.S. District Court in Denver this afternoon, where they were advised of their rights as well as the charges pending against them. They are due back in federal court in Denver for a preliminary hearing and a detention hearing on October 5, 2016. Pending that hearing, both will remain in federal custody.
According to the affidavit in support of the Criminal Complaint, on September 9, 2016, an ATF Task Force Officer and Pueblo Police Department Detective learned from a former confidential informant that an inmate in the Pueblo County Detention Facility planned to hire an individual to kill a witness in his state criminal case. That inmate was later identified as Ricardo Estevan Suazo. Suazo had previously shot the murder target in the stomach, and was being held in custody for that crime. Suazo had unsuccessfully tried to hire another individual named “Crazy” to commit the murder.
The ATF Task Force Officer, working in an undercover capacity, talked by phone with Suazo, who instructed the agent to contact “his girl” on the outside for instructions on a job (the murder for hire). The undercover task force officer made contact with “the girl,” who turned out to be Reina Gonzales, who talked about hiring the undercover officer to kill the witness scheduled to testify against Suazo. Gonzales said they would pay the undercover $10,000 to pull off the job. Later, the offered amount changed a number of times to carry out the murder.
Eventually Gonzales disengaged the undercover officer, only to later to be directed by Suazo to help bond out another individual incarcerated in the Detention Center who would carry out the murder-for-hire. That individual did not bond out of the facility. Both Suazo and Gonzales were then charged with the murder-for-hire plot.
This case is being investigated by the ATF and the Pueblo Police Department. The defendants are being prosecuted by Assistant U.S. Attorneys Rebecca Weber and Caroline Friedman.
Anyone accused of committing a felony federal offense has a Constitutional right to be indicted by a grand jury. The charged contained in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty
29 September 2016
Williamsville Man Charged with Possession of Child PornographyRead 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 Troy Malecki, 48, of Williamsville, NY, was charged by criminal complaint with possession of child pornography depicting minors less than 12 years of age. The charge carries a maximum penalty of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that according to the complaint, Malecki was part of an online community dedicated to the exchange and discussion of child pornography. On September 18, 2015, Special Agents from the Federal Bureau of Investigation executed a search warrant at the defendant’s residence and seized his cellular phone. A forensic examination revealed Malecki was in possession of more than 850 images of child pornography, some of which depicted prepubescent children less than 12 years of age.
Malecki made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and was ordered to abide by the conditions of the Home Confinement Program, which requires that he be electronically monitored.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, Violent Crimes Against Children Program, under the direction of Special Agent in Charge Adam S. Cohen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Wheeling Island man pleads guilty to heroin distributionRead the Press Release
WHEELING, WEST VIRGINIA – Justin Thomas Mann, 28, of Wheeling Island, pled guilty to heroin distribution in federal court in Wheeling today, United States Attorney William J. Ihlenfeld, II, announced.
Mann pled guilty to one count of “Distribution of Heroin.” He admitted to selling heroin in Ohio County during February 2016. He faces up to twenty years in prison and a fine up to $1,000,000.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Randy J. Bernard and Special Assistant U.S. Attorney Anthony Martin, also of the West Virginia Attorney General’s Office, prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Virginia Man Convicted Following A Jury Trial of International Parental KidnappingRead 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 a federal jury has found Philip Zodhiates, 61, of Waynesboro, Virginia, guilty of international parental kidnapping and conspiracy to commit international parental kidnapping. The charges carry a maximum sentence of eight years in prison and a $500,000 fine.
Assistant U.S. Attorneys Paul Van de Graaf and Michael DiGiacomo, who handled the prosecution of the case, stated that beginning in 2009, the defendant conspired with Lisa Miller to take Miller’s then seven year old daughter from Virginia to Nicaragua. Zodhiates transported Miller and the child to the Buffalo area where the two crossed over the Rainbow Bridge Port of Entry into Canada. Miller and the child then flew from Toronto, Ontario to Nicaragua. After arriving in Nicaragua, Miller was sheltered and assisted by others who were recruited by Zodhiates. Miller and the child have not been seen since.
According to evidence presented by the Government, the kidnapping was an attempt to obstruct the parental rights of Miller’s former partner from a civil union that took place in the State of Vermont. The child was born during the period of the civil union and the State of Vermont accordingly governed the parental rights of both Miller and her former partner.
Lisa Miller is also charged with international parental kidnapping and conspiracy to commit international parental kidnapping but remains a fugitive. Also charged in this case is Timothy Miller (no relation) from Nicaragua. He was recently arrested after being deported by Nicaragua and is due to appear in the Western District of New York at a later date.
A fourth defendant, Kenneth Miller (also not related) from Virginia, was charged and convicted of international parental kidnapping in the District of Vermont in 2012. Kenneth Miller is currently serving a 27 month prison sentence.
The verdict is the culmination of an investigation by the Vermont Office of the United States Marshal’s Service, under the direction of David Damag, and the Vermont Office of the Federal Bureau of Investigation, under the direction of Andrew Vale, Special Agent in Charge.
Sentencing is scheduled for January 30, 2017 at 1:00 p.m. before U.S District Judge Richard J. Arcara who presided over the trial of the case.Vibra Healthcare to Pay $32.7 Million to Resolve Claims for Medically Unnecessary ServicesRead the Press Release
Allegations included admitting patients to Southern Kentucky Rehabilitation Hospital, located in Bowling Green, who did not qualify for admission
WASHINGTON - Vibra Healthcare LLC (Vibra), a national hospital chain headquartered in Mechanicsburg, Pennsylvania, has agreed to $32.7 million, plus interest, to resolve claims that Vibra violated the False Claims Act by billing Medicare for medically unnecessary services, the Department of Justice announced today.
“Medicare beneficiaries are entitled to receive care that is determined by their clinical needs and not the financial interests of healthcare providers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “All providers of taxpayer-funded federal healthcare services, whether contractors or direct billers, will be held accountable when their actions cause false claims for medically unnecessary services to be submitted.”
“Pursuing and recovering fraudulent billing for unnecessary services is a priority of my office,” stated U.S. Attorney John E. Kuhn Jr. for the Western District of Kentucky. “This significant case against Vibra Healthcare is but one example of the vigorous work against healthcare fraud taking place in the Western District of Kentucky and across the nation.”
Vibra operates approximately 36 freestanding long term care hospitals (LTCHs) and inpatient rehabilitation facilities (IRFs) in 18 states, including Southern Kentucky Rehabilitation Hospital (SKY), located in Bowling Green, Kentucky. LTCHs provide inpatient hospital services for patients whose medically complex conditions require long hospital stays and programs of care. IRFs are intended for patients needing rehabilitative services that require hospital-level care.
The government alleged that between 2006 and 2013, Vibra admitted numerous patients to five of its LTCHs and to one of its IRFs (SKY) who did not demonstrate signs or symptoms that would qualify them for admission. Moreover, Vibra allegedly extended the stays of its LTCH patients without regard to medical necessity, qualification and/or quality of care. In some instances, Vibra allegedly ignored the recommendations of its own clinicians, who deemed these patients ready for discharge.
As part of the settlement, Vibra also agreed to enter into a chain-wide corporate integrity agreement with the Inspector General of the U.S. Department of Health and Human Services.
“Medical necessity is fundamental if health providers wish to claim taxpayer funds for medical care,” said Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “OIG is committed to protecting precious Medicare dollars and ensuring that beneficiaries receive quality, necessary long term care.”
Part of the allegations resolved by this settlement were originally filed under the qui tam or whistleblower provisions of the False Claims Act by Sylvia Daniel, a former health information coder at Vibra Hospital of Southeastern Michigan. Daniel filed her suit in the Southern District of Texas, where one of Vibra’s LTCHs was located. Under the False Claims Act, a private party, known as a relator, can file an action on behalf of the United States and receive a portion of the recovery. Daniel will receive at least $4 million.
This settlement illustrates the government’s emphasis on combating healthcare fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $30.7 billion through False Claims Act cases, with more than $18.5 billion of that amount recovered in cases involving fraud against federal healthcare programs.
This matter was handled by the Civil Division’s Commercial Litigation Branch; the U.S. Attorneys’ Offices for the Southern District of Texas in Houston and for the Western District of Kentucky; and the HHS-OIG. The qui tam case is captioned United States ex rel. Daniel v. Vibra Healthcare, LLC, Civil Action No. 10-5099 (S.D. Tex.).
The claims resolved by the settlements are allegations only and there has been no determination of liability.
Vallejo Kidnapping Defendant Pleads GuiltyRead the Press Release
SACRAMENTO, Calif. — Matthew Muller, 39, of South Lake Tahoe, pleaded guilty today to one count of kidnapping, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, on March 23, 2015, between 3:00 a.m. and 5:00 a.m., Muller broke into a home on Mare Island in Vallejo and using a stun gun and a simulated firearm, ordered the occupants, Aaron Quinn and Denise Huskins, to lie still while he bound them, blindfolded them, and had them drink a sleep-inducing liquid. Muller played a prerecorded message to the victims that threatened that any noncompliance would be punished by face cutting or electric shock. Muller then placed Huskins in the trunk of a car and drove her to his residence in South Lake Tahoe where he kept her under his control for two days, at times bound and blindfolded. Muller sent Quinn emails demanding ransom amounts totaling $17,000, but ultimately released Huskins in Huntington Beach on March 25, 2015, with no ransom ever being paid.
During and after the kidnapping, Muller sent emails to a reporter in San Francisco, that claimed, among other things, that the kidnapping had been carried out by a group of elite criminals who were perfecting their kidnapping-for-ransom tactics.
Muller was identified as a suspect in the Vallejo kidnapping following an investigation into a home-invasion burglary that occurred in Alameda County on June 5, 2015. Dublin Police Services of the Alameda County Sheriff’s Department arrested Muller and searched his South Lake Tahoe residence. They located and seized evidence from the Vallejo kidnapping. An officer of the Vallejo Police Department located Muller’s Vallejo storage locker and a search revealed aerial drones that Muller referred to in his emails to the reporter.
FBI analysis of Muller’s computers uncovered a sound recording that simulated people whispering to each other, a sound recording consistent with the instructions given to Aaron Quinn and Denise Huskins, and a video recording of Muller together with Huskins in Muller’s residence. She was blindfolded and fully under Muller’s control.
This case is the product of an investigation by the FBI, the Dublin Police Services of the Alameda County Sheriff’s Office, and the Vallejo Police Department. Assistant United States Attorneys Matthew D. Segal and Heiko P. Coppola are prosecuting the case.
Acting U.S. Attorney Phillip A. Talbert said, “Muller committed a serious and violent crime that terrorized the victims in this case. He violated the sanctity of their home and caused fear and panic for all those affected by the kidnapping. My office is grateful that Alameda County authorities responded so effectively to the Alameda County break-in and then provided the information that led to the investigation and charges in this case. The high quality of the work by the Alameda County Sheriff’s Office, the Alameda County District Attorney, the Vallejo Police Department, and the FBI is reflected in the two guilty pleas Muller has entered, first in Alameda County and now in the Eastern District of California. We are committed to continuing to seek justice in this case as it continues to sentencing.”
Muller is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on January 19, 2017 at 1:30 p.m. Muller faces a maximum statutory penalty of life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
As long as Muller accepts responsibility and adheres to his promises in the plea agreement, the plea agreement provides that the Government will recommend a sentence of no more than forty years of imprisonment. There is no parole in the federal system. Under the plea agreement, upon release, Muller should be subject to the most intensive supervision, surveillance, and monitoring that is technologically available at the time of his release. The plea binds only the United States Attorney’s Office for the Eastern District of California and cannot bind any other federal, state, or local prosecuting, administrative, or regulatory authorities.
U.S. Attorney Announces More Than $800,000 in DOJ Grants to TBI and MPDRead the Press Release
Memphis, TN – Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced today that the Tennessee Bureau of Investigation (TBI) and the Memphis Police Department (MPD) have both received Department of Justice (DOJ) grants that collectively amount to more than $800,000.
The TBI is one of eight agencies nationwide selected to receive funding from the DOJ’s Community Oriented Policing Services’ (COPS) Anti-Methamphetamine Program. Under the program, the TBI received $446,802 to investigate illicit activities related to the manufacture and distribution of methamphetamine.
Additionally, the MPD is among multiple law enforcement agencies selected to receive funding from the DOJ’s Office of Justice Programs. The MPD has been awarded $401,193 as part of the Department’s Technology Innovation for Public Safety (TIPS) Program. The TIPS funding will enable the MPD to reduce violent crime, enhance mobile operation and increase community participation in its crime-reduction efforts. The proposed intervention will expand information sharing and analysis through license-plate recognition, and also expand MPD Real Time Crime Center (RTCC) assistance.
"The DOJ funding allotted to both the TBI and MPD will enable them to further their unwavering efforts in crime and drug prevention," said U.S. Attorney Stanton. "Totaling more than $800,000 collectively, these grants underscore the DOJ’s commitment to keeping our citizens and communities safe."
Two Sentenced to Federal Prison for Defrauding El Paso Federal Credit Union Leading to its FailureRead the Press Release
In El Paso, a former El Paso Federal Credit Union (EPFCU) manager and an assistant manager have been sentenced to federal prison for their roles in a scheme to steal millions of dollars from the financial institution which lead to the credit union’s failure announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Douglas Lindquist, El Paso Division.
This morning, United States District Court Judge Philip Martinez sentenced 53-year-old former EPFCU assistant manager Hilda Simental Mendoza of El Paso to 121 months in federal prison followed by five years of supervised release. In addition to the prison term, Judge Martinez ordered that Mendoza perform 100 hours of community service.
On September 21, 2016, Judge Martinez sentenced 59–year-old former EPFCU manager Maria Guadalupe Hernandez to 188 months in federal prison followed by five years of supervised release. In addition to the prison term, Judge Martinez ordered Hernandez to pay a $10,000 fine.
At sentencing, Judge Martinez ordered both defendants to pay $18,376,542 in restitution to the National Credit Union Administration (NCUA) representing the loss generated by their scheme.
On May 24, 2016, the defendants pleaded guilty to an eleven-count indictment which included charges of bank fraud, wire fraud and conspiracies to commit both bank and wire fraud.
According to court records, beginning in August 2007, the defendants sold more than 100 EPFCU share certificates to other credit unions. The defendants did not record the sale of these share certificates in the credit union records, but kept a log of them is a secret ledger. Monies generated by the unrecorded sales of EPFCU share certificates were placed into accounts created and controlled by the defendants using relatives accounts, dormant customer accounts, and even active accounts belonging to deceased individuals. The defendants used the generated funds from newly sold EPFCU share certificates to pay out dividends to investors and principal payments to prior purchasers of EPFCU share certificates. Hernandez used the monies generated by the EPFCU share certificate sales for personal benefit to included travel, purchase real estate and vacations.
The defendants created fraudulent EPFCU records to conceal their scheme from auditors, but were unsuccessful. In September 2011, an examiner from the NCUA discovered accounting irregularities in the amount of EPFCU’s undivided earnings in that month’s Call Reports. In June 2012, examiners performed a detailed audit of EPFCU records and discovered additional accounting irregularities. During an audit follow-up, examiners discovered a hidden binder inside the credit union which contained an accounting of all of the unrecorded EPFCU share certificates sold by the defendants. On September 28, 2012, the NCUA delivered the liquidation order to EPFCU’s Board of Directors and thereafter, liquidated EPFCU.
This investigation was conducted by the FBI with assistance from the NCUA. Assistant United States Attorney Chris Skillern prosecuted this case on behalf of the Government.
Two Newark Men Plead Guilty to Two Armed Carjackings and One Attempted Armed CarjackingRead the Press Release
NEWARK, N.J. – Two Newark men admitted today that they carried out two armed carjackings and one attempted carjacking during a five-day span in September 2013, U.S. Attorney Paul J. Fishman announced.
Dion Hines, 23, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to a four-count information charging him with attempted carjacking, carjacking (two counts), and using a firearm during a crime of violence. Roosevelt Robinson, 25, pleaded guilty to a three-count information charging him with attempted carjacking, carjacking, and using a firearm during a crime of violence.
According to documents filed in this case and statements made in court:
At 10:30 p.m. on Sept. 22, 2013, Hines, Robinson, and another male conspirator approached a Mercedes Benz sedan that was parked in a residential driveway in Newark. Hines brandished a silver revolver and ordered the driver to get out of the vehicle. Hines, Robinson, and the other conspirator pulled on the driver’s side door, but the victim resisted. Robinson said: “Shoot that [expletive].” The victim eventually got out of the Mercedes Benz and Robinson sat in the driver’s seat.
After Hines and the other conspirator fled on foot, the victim pulled Robinson from the Mercedes Benz, got back into the vehicle and reversed the car. Hines returned and fired two shots at the Mercedes Benz, striking the rear driver side door. Hines, Robinson, and the other conspirator then ran down the block and jumped into a car waiting nearby. The victim pursued them in the Mercedes Benz, striking both the getaway car and Robinson before Robinson entered the vehicle. A car chase ensued, during which Hines fired two additional shots at the Mercedes Benz.
At 9:25 p.m. on Sept. 26, 2013, Hines approached a vehicle parked in a lot near a Newark residence. After the driver exited the vehicle, Hines pointed a black revolver and stated: “Give me your car keys or I’ll shoot.” Around this time, another victim, who had just parked a late-model Acura sedan in the parking lot, walked over to where Hines and the other victim were standing. Hines then pointed the revolver at owner of the Acura and demanded the car keys. The owner of the Acura complied and Hines got into the car and fled.
At 4:45 a.m. on Sept. 27, 2013, a dark-colored SUV driven by an unknown person pulled in front of a Range Rover stopped at an intersection in Belleville, New Jersey, blocking the Range Rover’s path. Hines jumped out of the passenger side of the dark-colored SUV and pointed a black handgun at the victim. Robinson, who followed the dark-colored SUV in a separate vehicle, pulled over and stood watch. Hines approached the driver’s door, pulled the victim out of the vehicle, and demanded the car keys. The victim complied, and Hines then got into the Range Rover and fled, followed by the dark-colored SUV and Robinson’s vehicle.At 2:20 p.m. that day, law enforcement located the Range Rover in Newark. A brief car chase ensued, during which the Range Rover rammed multiple police vehicles before getting trapped and stopping. Law enforcement officers surrounded the Range Rover with their guns drawn. Hines and Robinson both exited the Range Rover and ran. Law enforcement officers arrested them shortly thereafter. The third occupant was taken into custody immediately. After arresting the three men, law enforcement officers searched the Range Rover and discovered a loaded black revolver in the vehicle.
The carjacking and attempted carjacking counts to which Hines and Robinson pleaded guilty each carry a maximum penalty of 15 years’ imprisonment and a fine of $250,000. The count of using a firearm during a crime of violence to which they pleaded guilty carries a mandatory minimum sentence of seven years in prison, a maximum sentence of life imprisonment, and a fine of $250,000. Sentencing for Hines is scheduled for Jan. 11, 2017, and for Robinson, Jan. 12, 2017.
U.S. Attorney Fishman credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola in Newark; and the Newark, Elizabeth, and Belleville police departments with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney J. Jamari Buxton of the U.S. Attorney’s Office Organized Crime/Gangs in Newark.
Two Georgia Men Indicted for Access-Device Fraud and Identity TheftRead the Press Release
BIRMINGHAM – A federal grand jury today indicted two Georgia men for access-device fraud and aggravated identity theft, announced U.S. Attorney Joyce White Vance and U.S. Secret Service Special Agent in Charge Craig Caldwell.
An indictment filed in U.S. District Court charges GREGORY SIMEON and CLAUDELL RALPH PETIT, both 29, with possessing 15 or more unauthorized access devices – credit and bank debit cards – and aggravated identity theft in Jefferson County in August 2015. SIMEON is charged alone with one count of each crime, and the men are charged jointly with another count of fraud and identity theft.
Upon conviction, access-device fraud carries a maximum sentence of 10 years in prison and a $250,000 fine for each count, and aggravated identity theft carries a two-year prison term and $250,000 fine for each count.
The U.S. Secret Service, Birmingham Police Department and Jefferson County District Attorney’s Office investigated the case, which Assistant U.S. Attorney Melissa K. Atwood is prosecuting.
Members of the public are reminded that the indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Two Charged with Conspiracy to Distribute Methamphetamine and Possession of FirearmRead the Press Release
United States Attorney Randolph J. Seiler announced that two men have been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance. One of the men was also indicted for Possession of a Firearm by a Prohibited Person.
Indicted on August 16, 2016, were: Monte Dinehdeal, a/k/a Monte Dineh Deal, age 41, from Tuba City, Arizona, and Louis Anthony Good Shield, age 27, from Winner, South Dakota. Good Shield appeared before U.S. Magistrate Judge Mark A. Moreno on August 24, 2016. Dinehdeal appeared before U.S. Magistrate Judge Daneta Wollmann on September 27, 2016. Both have pled not guilty to the Indictment.
The maximum penalty upon conviction for the charges against Dinehdeal is up to life in custody, a $10,000,000 fine, or both, at least 5 years and up to life of supervised release, $100 to the Federal Crime Victims Fund, and restitution. The maximum penalty upon conviction for the charges against Good Shield is 20 years in custody, a $1,000,000 fine, or both, at least 3 years and up to life of supervised release; and $100 to the Federal Crime Victims Fund, and restitution.
Dinehdeal stands to forfeit the weapon and ammunition seized during the investigation.
The charges are merely an accusation and Dinehdeal and Good Shield are presumed innocent until and unless proven guilty.
The indictment alleges that between January 1, 2013, and September 17, 2015, Dinehdeal and Good Shield knowingly and intentionally combined, conspired, confederated and agreed with other persons to knowingly and intentionally distribute and to possess with intent to distribute methamphetamine in South Dakota. The indictment specifically alleges that Dinehdeal knowingly and intentionally possessed with the intent to distribute 500 grams or more of methamphetamine in South Dakota. The indictment further alleges that on or about September 17, 2015, Dinehdeal knowingly possessed a firearm, even though he was prohibited from doing so because he had previously been convicted of a felony and was an unlawful user of and addicted to a controlled substance.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Dinehdeal was remanded to the custody of the U.S. Marshals Service pending trial. Good Shield was released on bond pending trial. A jury trial has been set for November 1, 2016.
Tulsa Probate Attorney Charged for Embezzling $587,000 from Multiple Estate AccountsRead the Press Release
TULSA, Okla.—A Tulsa County probate attorney made his initial appearance today in U.S. District Court on charges stemming from his embezzling $587,000 from probate estate accounts he controlled. United States Attorney Danny C. Williams Sr. of the Northern District of Oklahoma and Special Agent in Charge R. Damon Rowe of the IRS-CI’s Dallas Office announced the criminal charges at a news conference held this morning.
Christopher Ivor Mansfield, 38, was charged with one count each of bank fraud and money laundering before United States District Magistrate Judge Paul Cleary.
“Mr. Mansfield chose to violate and abuse his position of trust as a probate attorney. As a result, he embezzled $587,030 from eleven probate estates or guardianships,” said U.S. Attorney Williams.
At the time of the alleged crimes, Mansfield was a licensed attorney in the State of Oklahoma who was court-appointed in probate cases. He served as a personal representative in probate cases and was responsible for overseeing the financial affairs of multiple probate estates.
According to court documents, it is alleged that, from August 2012 to October 2015, Mansfield knowingly executed and attempted to execute a scheme to obtain money or property entrusted to the Bank of Oklahoma by means of fraudulent pretenses. It is further alleged that Mansfield fraudulently diverted estate assets from various estate accounts using unauthorized checks made payable to himself; unauthorized transfers of funds from the estates; and the unauthorized depositing of checks into his business and personal accounts.
Mansfield used the stolen money on personal expenses, mainly American Express credit card purchases and to support his drug habit.
At the time of sentencing, Mansfield will face a maximum penalty of 30 years in prison and a $1,000,000 fine for the bank fraud charge and a maximum penalty of 10 years in prison and a $250,000 fine for the unlawful monetary transaction charge. In addition, he will face a restitution order and a criminal forfeiture money judgment in the amount of $587,030.
The case is being investigated by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation; and prosecuted by Assistant United States Attorney Charles McLoughlin and Catherine Depew.
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Tomball Business Executive Convicted in $13 Million False Invoicing SchemeRead the Press Release
HOUSTON – The owner of Tinkle Management Inc. (TMI) has entered a guilty plea to charges of wire fraud and money laundering, announced U.S. Attorney Kenneth Magidson.
John Blake Tinkle, 60, of Tomball, admitted today that from 2008 through 2015, he falsely invoiced Houston-based Westlake Chemical Corporation for approximately $13 million in shipping supplies that TMI never delivered.
“For seven years, this defendant cheated local companies out of millions of dollars, using false invoices and fraudulent financing,” said Magidson. “Thanks to the hard work of the FBI and IRS-Criminal Investigation, his scheme was detected and ended. We will continue to aggressively investigate and prosecute corporate fraud, both in the energy industry and across our community.”
TMI was Westlake’s supplier of plastic shipping bags that Westlake used to ship its chemical products internationally. TMI delivered the shipping bags to Packwell Inc., a packaging and logistics company in La Porte. Packwell then used the bags to package Westlake’s chemical products and ship those products through the Houston ship channel. In addition to invoicing Westlake for bags that had actually been delivered, Tinkle submitted false invoices to Westlake for deliveries of bags to Packwell that, in reality, had not occurred.
Tinkle supported his false invoices to Westlake by attaching Packwell receiving reports Tinkle doctored to purportedly show the undelivered bags had actually been received by Packwell. To obtain financing, Tinkle then caused the fraudulent invoices to be presented to Charter Capital, a Houston factoring company, that relied on the invoices in providing funding to TMI. Westlake and Charter Capital paid TMI millions of dollars based on deliveries that never occurred.
U.S. District Judge Alfred Bennett accepted the plea today and has set sentencing for Dec. 8, 2016. At that time, Tinkle faces up to 20 years in federal prison for the wire fraud and 10 years for money laundering. He could also be ordered to pay a $250,000 fine. He was permitted to remain on bond pending that hearing.
The FBI and IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Robert S. Johnson is prosecuting the case.
Three Florida Men Charged in Mortgage Fraud SchemeRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Marek Harrison (53, Plant City), Brian Allard (45, Seminole), and Scot Rounds (44, Winter Garden) with bank fraud and conspiracy to commit bank fraud. If convicted, each faces a maximum penalty of 30 years in federal prison on each count. The indictment also notifies the defendants that the United States is seeking a forfeiture money judgment in the amount of the proceeds of the charged criminal conduct.
According to the indictment, Harrison and Allard created and executed a mortgage fraud scheme involving Saratoga Resort Villas, a condo conversion of a former hotel located in Kissimmee. The scheme involved kickbacks of mortgage proceeds to buyers and co-conspirators and misrepresentations regarding the source of down payment funds. None of the incentives and kickbacks were disclosed to the mortgage lenders. Harrison and Allard recruited the buyers and found individuals to front down payment money for those buyers. Rounds, a mortgage broker, brokered the loans for the transactions, recruited straw purchasers, and distributed kickbacks to buyers.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General. It will be prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Vincent Chiu.
Suspect Sentenced for Starting Cedar Fire in Sequoia National ForestRead the Press Release
BAKERSFIELD, Calif. — A defendant pleaded guilty to misdemeanor charges brought earlier today in a criminal complaint and was immediately sentenced to a total of 13 months in prison, Acting United States Attorney Phillip A. Talbert announced.
U.S. Magistrate Judge Jennifer L. Thurston sentenced Angel Gilberto Garcia-Avalos, (Garcia), 29, of Michoacán, Mexico, to six months in prison for causing a fire on federal land that resulted in the Cedar Fire that has been burning in Kern and Tulare Counties. Judge Thurston also sentenced him to seven months in prison for two separate counts of making false statements to U.S. Forest Service law enforcement officers. The sentences are to be served consecutively for a total of 13 months. The maximum possible sentence for each of the three charges was six months in prison. Garcia was also ordered to pay $61 million in restitution.
In sentencing Garcia, Judge Thurston noted that Garcia demonstrated “significant negligence” and took no action to get help after the fire started.
According to the complaint, the Cedar Fire started on August 16, 2016, when Garcia was driving off-road in the Sequoia National Forest. Garcia falsely represented to a Forest Service law enforcement officer on the day the fire started that his vehicle had been stolen after he parked it on the side of California Highway 155. Two weeks later, Garcia falsely represented to a special agent of the Forest Service that his vehicle was taken when he parked it on the paved road and that he had not driven his vehicle off the highway onto a dirt road.
According to the complaint, the Cedar Fire started in the area of the Cedar Creek Campground in the Sequoia National Forest in Kern County and spread to Tulare County. Garcia drove his vehicle off of Highway 155 onto an unimproved, rough dirt road in the forest. As he was driving on the dirt road, his car got stuck while attempting to drive over a berm and rolled back hitting a tree. The muffler and catalytic converter of the vehicle were in direct contact with dead grass and sparked the Cedar Fire. To date, the Cedar Fire has destroyed approximately 29,332 acres of National Forest land, including at least six residences.
This case was the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Enforcement and Removal Operations (ERO), the Kern County Fire Department, and the Kern County Probation Department. Assistant United States Attorney Karen A. Escobar prosecuted the case.
St. Louis County Man Sentenced to 14 Years on Child Enticement ChargesRead the Press Release
St. Louis, MO – Ian Mackie was sentenced to 14 years in prison on multiple child enticement charges.
According to court documents filed at the time of the plea, Mackie used several social media sites, email and text messages to communicate and entice two males, 13 and 15 years old, respectively, to engage in sex acts with him.
Mackie, Ballwin, MO, pled guilty in June to one felony count each of attempted receipt of child pornography; online enticement of a minor; receipt of child pornography and attempted online enticement of a minor. He appeared today for sentencing before United States District Judge Rodney W. Sippel.
This case was investigated by the St. Louis County Police Department, the Missouri Internet Crimes Against Children Task Force and the Federal Bureau of Investigation. Assistant United States Attorney Colleen Lang handled the case for the U.S. Attorney's Office.
Six Men, Including Three Local Law Enforcement Officers, Charged with Trafficking in Contraband CigarettesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JADALLAH SAED, age 30; ANWAR ABDELMAJID-AHMAD, a/k/a Tony, age 29, both of Gretna; ATALLA ATALLA, a/k/a Tommy, age 38, of Wilmington, North Carolina; JUSTIN BROWN, age 29; JOSHUA CARTHON, age 32, and GARRETT PARTMAN, age 31, all of New Orleans, were arrested yesterday in connection with the unsealing of an Indictment charging them with conspiring to traffic in contraband cigarettes and evading the federal excise tax imposed on tobacco; trafficking in contraband cigarettes, and interstate transportation in aid of racketeering enterprises, in Title 18, United States Code, Sections 371 and 1952(a)(3), respectively.
According to previously filed court documents, defendants would illegally receive, possess, and purchase contraband cigarettes and cigars in order to evade applicable taxes and receive higher profits for the retail sale of the tobacco products. New Orleans Police Officers JUSTIN BROWN and JOSHUA CARTHON and Orleans Parish Sheriff’s deputy GARRETT PARTMAN, were utilized to protect and transport the shipment of contraband cigarettes across state lines. The defendants would then distribute and sell the contraband cigarettes in North Carolina and other states where the cigarette taxes are higher than Louisiana, resulting in a substantial total tax loss to both federal and state governments.
The maximum penalties are as follows: as to Count 1, Conspiracy To Traffic In Contraband Cigarettes and Evade the Federal Excise Tax Imposed on Tobacco (18 U.S.C. § 371), 5 years imprisonment, $250,000 fine, 3 years supervised release. As to Counts 2, 4, 6, and 7, Trafficking in Contraband Cigarettes (18 U.S.C. § 2342(a)), 5 years imprisonment, $250,000 fine, 3 years supervised release for each count. As to Counts 3 and 5, Interstate Transportation in Aid of Racketeering Enterprises (18 U.S.C. § 1952(a)(3)), 5 years imprisonment, $250,000 fine, 3 years supervised release for each count.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation New Orleans Division, Immigration and Customs Enforcement, Homeland Security Investigations, the New Orleans Police Department’s Public Integrity Bureau, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Department of Defense, Defense Criminal Investigative Service. Assistant United States Attorneys Tracey N. Knight and Irene Gonzalez are in charge of the prosecution.
Sanford Man Sentenced to 46 Months for Possession with IntentRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced Joshua Warner (26, Sanford) to 46 months in federal prison for possession with intent to distribute ethylone, commonly marketed as the street drug “Molly,” and Alpha-PVP, commonly marketed as the street drug “Flaka.” Warner pleaded guilty on May 19, 2016.
According to court documents and testimony presented at sentencing, in late December 2014, U.S. Customs and Border Protection agents intercepted two packages with Warner as the named addressee. One package contained approximately 500 grams of ethylone, and was addressed to Warner’s residence in Sanford. A second package contained 497 grams of Alpha-PVP and was addressed to the home of Warner’s friend, also in Sanford. On January 7, 2015, agents conducted controlled deliveries of both packages to the respective addresses. Immediately after the deliveries, agents executed search warrants at both residences. At Warner’s home, agents found additional amounts of ethylone and a handgun inside Warner’s car located in the garage. During an interview with agents, Warner admitted that he was receiving the ethylone and the Alpha-PVP to sell to customers.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Vincent S. Chiu.
Reading Man Charged with Illegal ReentryRead the Press Release
Salvador Ortiz-Uresti, 41 of Reading, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about November 13, 2015, Ortiz-Uresti, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about April 26, 2001.
If convicted the defendant faces a maximum possible sentence of twenty years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”) and is being prosecuted by Assistant United States Attorney Jonathan B. Ortiz.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Rapid City Woman Indicted in Death of ChildRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, woman has been indicted by a federal grand jury for Tampering with Evidence, Accessory to First Degree Murder, False Statement, and Misprision of a Felony.
Sonya Dubray, age 47, was indicted on September 20, 2016. She appeared before U.S. Magistrate Judge Daneta Wollmann on September 28, 2016, and pleaded not guilty to the Indictment. The maximum penalty upon conviction is 20 years of imprisonment. 3 years of supervised release, and/or a $250,000 fine and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Dubray’s involvement in covering up the death of a two-and-a-half-year-old child at Porcupine. The charges are merely an accusation and Dubray is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Sarah B. Collins and Megan J. Poppen are prosecuting the case.
Dubray was remanded to the custody of the U.S. Marshals Service pending trial.
Pine Ridge Woman Indicted for TheftRead the Press Release
United States Attorney Randolph J. Seiler announced that a Martin, South Dakota, woman has been indicted by a federal grand jury for Larceny and Theft of Government Property.
Amy N. Garcia, age 32, was indicted on July 26, 2016, and appeared before U.S. Magistrate Judge Daneta Wollmann on September 28, 2016. She pleaded not guilty to the Indictment.
The maximum penalty upon conviction is ten years of imprisonment, a $250,000 fine, or both, three years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Garcia altering and cashing payroll checks belonging to Dakota Plains Legal Services in Mission. The charges are merely an accusation and Garcia is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Legal Services Corporation -Office of Inspector General. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Garcia was released pending trial. A trial date has not been set.
Philadelphia Man Charged with Passport FraudRead the Press Release
Alcides Rosario-Betances, 56, of Philadelphia, Pennsylvania was charged today by Indictment with three counts of passport fraud, announced United States Attorney Zane David Memeger.
If convicted the defendant Alcides Rosario-Betances faces a maximum possible sentence of 30 years imprisonment, three years supervised release, a $750,000 fine, and $300 special assessment.
The case was investigated by the Diplomatic Security Service and Immigration and Customs Enforcement and is being prosecuted by Assistant United States Attorney Christopher Diviny.
Philadelphia Man Charged with Illegal Reentry After DeportationRead the Press Release
Gerson Joel Rivera-Suchite, a/k/a “Jerson Suchite,” 22, of Philadelphia, Pennsylvania, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about April 5, 2016, Rivera-Suchite, an alien, and native and citizen of Guatemala, was found in the United States after having been deported from the United States on or about July 5, 2012.
If convicted the defendant faces a maximum possible sentence of two years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Robert E. Eckert.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of Buffalo Deli Sentenced for Food Stamp 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 Samir Hassan, 36, of Buffalo, NY, who was convicted of food stamp fraud, was sentenced to 12 months in prison by U.S. District Judge Frank P. Geraci. The defendant was also ordered to pay restitution totaling $192,447.00.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that Hassan was the owner and operator of City Market & Deli and City Market in Buffalo. Between November 1, 2010 and August 31, 2012, the defendant directed his employees to purchase food stamp benefits for less than their full value in exchange for cash from eligible beneficiaries.
The sentencing is the result of an investigation by the United States Department of Agriculture, Office of Inspector General, under the direction of Special Agent in Charge William Squires.