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Wednesday 10 August 2016
Former Somerset County High School Teacher Admits Enticing Boy to Engage in Criminal Sexual Conduct OnlineRead the Press Release
NEWARK, N.J. – A Branchburg, New Jersey, man who previously worked as a high school music teacher today admitted soliciting a boy to engage in sexually explicit conduct in exchange for money, U.S. Attorney Paul J. Fishman announced.
David M. Adams, 30, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging him with one count of online enticement of a minor to engage in criminal sexual conduct.
According to documents filed in the case and statements made in court:
Adams admitted that, between May 2014 and September 2014, he used the internet, including Skype, to induce a victim who was less than 18-years-old to engage in sexually explicit conduct. In exchange for allowing Adams to view the conduct on Skype, Adams paid the victim using PayPal and other means.
During that time, Adams was a music teacher at Eisenhower Middle School in Roxbury, New Jersey. Subsequently, Adams was a music teacher at Bridgewater-Raritan High School in Somerset County, New Jersey.
The charge to which Adams pleaded guilty carries a maximum penalty of life in prison, a mandatory minimum prison sentence of 10 years in prison and a $250,000 fine. Adams will be required to register as a sex offender. Sentencing is scheduled for Nov. 30, 2016.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge Terence S. Opiola, with the investigation leading to the guilty plea. He also thanked the Branchburg Police Department and the Somerset County Prosecutor’s Office for their assistance in this case.
The government is represented by Assistant U.S. Attorney Svetlana M. Eisenberg of the U.S. Attorney’s Office General Crimes Unit in Newark.
Defense counsel: Michael Baldassare, Esq. and Dillon Malar, Esq., Newark
Former Pitcairn Man Charged with Failing to Register as a Sex OffenderRead the Press Release
PITTSBURGH - A former Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on a charge of failing to register as a sex offender, United States Attorney David J. Hickton announced today.
The one-count indictment, returned yesterday, named Arthur Linsenbigler, 45, who last known addresses were in Pitcairn, Pennsylvania, as the sole defendant.
According to the indictment presented to the court, from Feb. 3, 2015, to June 20, 2016, Linsenbigler, who had been convicted of the felony sex offense of Rape By Forcible Compulsion in 1991, failed, as required, to register and update a registration under the Sex Offender Registration and Notification Act.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The United States Marshals Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Owner of Investment Firms Arrested for $8 Million FraudRead the Press Release
RICHMOND, Va. – Merrill Robertson, Jr., 36, of Chesterfield, former owner of two Richmond area investment firms, was arrested this morning for his role in an investment fraud scheme that caused over $8 million in losses to his clients.
According to the affidavit filed in support of the criminal complaint, in 2009, Robertson and a co-conspirator started Cavalier Union Investments, LLC. Between 2009 and 2015, Cavalier obtained at least $8 million from over 40 investors. During this time, Robertson made material misrepresentations and omissions about the use of investor funds, the assets securing investor funds, and the investment vehicle into which investor funds would be deposited. Robertson also signed promissory notes with many investors that guaranteed a specific rate and return, pledged that investment funds were secured by tangible assets, and provided many investors with annual statements that misrepresented the value of their investment at the time and the account number where investment funds were supposedly located. During a deposition with the U.S. Securities and Exchange Commission (SEC) in October 2015, Robertson acknowledged that Cavalier failed to pay back the approximately $8 million in principal invested with the company and stated that Cavalier currently has no income or assets. Robertson admitted that he often commingled business, personal and investor funds. Robertson stated that he used investor funds to pay for personal expenses such as his mortgage and car payments.
In a parallel action, the SEC today announced civil charges against Robertson.
Robertson faces a maximum penalty of 20 years in prison if convicted of conspiracy to commit wire fraud. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Thomas Jankowski, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after Robertson’s arrest. Assistant U.S. Attorney Katherine Lee Martin is prosecuting the case.
This investigation was initiated based on information received from the U.S. Securities and Exchange Commission (SEC) and is currently being investigated by the FBI's Richmond FIeld Office, IRS-Criminal Investigations, U.S. Postal Inspection Service, and the Virginia State Corporation Commission
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-mj-197.
Former Marine Sentenced for Sexual Exploitation of a ChildRead the Press Release
CORPUS CHRISTI, Texas – A 37-year-old Aransas Pass man has been ordered to prison following his three convictions of sexual exploitation of a child, otherwise known as production of child pornography, announced U.S. Attorney Kenneth Magidson. John Anthony Perez pleaded guilty in May 2016.
After a lengthy hearing that concluded late today, Senior US. District Judge Hayden Head sentenced Perez to 250 months federal prison on each count to run consecutively. The 750-month total sentence will also be followed by 20 years of supervised release during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will also be ordered to register as a sex offender. Judge Head also ordered $150,000 in restitution to be paid to each victim for a total of $450,000.
Perez came to the attention of authorities after authorities learned of the sexual assault of three young children. The children were identified and confirmed the abuse. Perez was identified as the perpetrator and admitted to sexual assaulting the three children and taking sexual explicit photographs and videos of the abuse. Perez admitted his interest in child pornography started when he was deployed overseas with the U.S. Marine Corps.
At today’s hearing, the court heard testimony from a Homeland Security Investigations (HSI) agent. The agent described the additional videos and images of child pornography Perez possessed, many of which depicted the sexual exploitation of infants, bondage and bestiality. A psychologist who evaluated the children also told the court that Perez had first abused the young children when they were toddlers.
In March 2016, law enforcement executed a search warrant at Perez’s residence and seized various electronic devices. Forensic examination led to the discovery of 37 videos and 189 images of Perez sexual assaulting three children. Authorities also discovered 494 other videos and more than 16,000 other images of child pornography.
Perez was arrested on the federal charges in March 2016 and has been in custody since that time where he will remain pending his transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges were the result of an investigation conducted by Homeland Security Investigations with the assistance of the Corpus Christi Police Department – Internet Crimes Against Children Task Force.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former LCN Boss Arrested in Connection with the Murder of a Federal WitnessRead the Press Release
BOSTON – Frank “Cadillac” Salemme, a former boss of the New England Family of La Cosa Nostra (NELCN), was arrested today and charged with murder of a witness.
Francis P. Salemme, 82, was arrested this morning in Connecticut and is scheduled to appear in U.S. District Court in Boston today at 3:00 p.m.
In the early 1990s, Salemme was the “boss” of the New England La Cosa Nostra until he was indicted on racketeering charges in 1995 and convicted in 1999. He was subsequently convicted of obstruction of justice in 2008 for lying to federal authorities about the murder of Steven A. DiSarro.
The charge of murder of a federal witness provides for a sentence of death or life in prison, five 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 for the District of Massachusetts; United States Attorney Peter F. Neronha for the District of Rhode Island; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; U.S. Marshal John Gibbons of the U.S. Marshals Service; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police made the announcement today. Assistance was provided by the Norfolk County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Fred M. Wyshak, Jr., Chief of Ortiz’s Public Corruption Unit and Assistant U.S. Attorney William Ferland of Neronha’s Office.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former LCN Boss Arrested in Connection with the Murder of a Federal WitnessRead the Press Release
This press release is issued jointly with the U.S. Attorney for the District of Massachusetts
BOSTON – Frank “Cadillac” Salemme, a former boss of the New England Family of La Cosa Nostra (NELCN), was arrested today and charged with murder of a witness.
Francis P. Salemme, 82, was arrested this morning in Connecticut and is scheduled to appear in U.S. District Court in Boston today at 3:00 p.m.
In the early 1990s, Salemme was the “boss” of the New England La Cosa Nostra until he was indicted on racketeering charges in 1995 and convicted in 1999. He was subsequently convicted of obstruction of justice in 2008 for lying to federal authorities about the murder of Steven A. DiSarro.
The charge of murder of a federal witness provides for a sentence of death or life in prison, five 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 for the District of Massachusetts; United States Attorney Peter F. Neronha for the District of Rhode Island; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; U.S. Marshal John Gibbons of the U.S. Marshals Service; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police made the announcement today. Assistance was provided by the Norfolk County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Fred M. Wyshak, Jr., Chief of Ortiz’s Public Corruption Unit and Assistant U.S. Attorney William Ferland of Neronha’s Office.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Indiana man indicted on fraud chargesRead the Press Release
Alleged to have swindled friends and acquaintances out of nearly $1 million
PRESS RELEASE
Indianapolis - United States Attorney Josh J. Minkler, announced today nine fraud-related charges against a former Indiana man who owned a business in Indianapolis. Larry M. Westby, 64, currently residing in Vanderbilt, Michigan, was indicted by a federal grand jury sitting in Indianapolis on five counts of mail fraud, three counts of money laundering and one count of fraud in the offer or sale of securities.
“Perpetrators of fraud crimes not only jeopardize their victims’ financial security, but they also rob their victims of the trust they once had in their own judgment and in others,” said Minkler. “When a person or business intentionally deceives Indiana investors with promises of financial benefits that do not exist, were never intended to be provided, or were misrepresented, they will be prosecuted by this office to the fullest extent of the law.”
Westby was a licensed respiratory therapist and president of LMW, Inc., a company purported to be selling respiratory therapy protocols to doctors. The protocols allowed doctors to perform treatments inside their own offices, rather than in a hospital.
In January 2010, Westby began using the LMW website to communicate with current and potential LMW investors indicating he was exploring selling his company for a substantial profit. In these communications, Westby allegedly made false statements about the nature of LMW, its financial condition, and the risk and status of investments in LMW. For example, Westby allegedly told potential investors that LMW was about to be sold for $36.5 million to a company called Global Spot in an effort to convince investors to buy LMW common stock. Unbeknownst to investors, Global Spot was a non-existent, sham entity. Westby also concealed from his investors that he had not registered LMW with the Indiana Secretary of State as a company properly registered to engage in the issuing of stock certificates. Nor did Westby tell investors that he had failed to properly register LMW common stock certificates with the Secretary of State.
Through these false communications, Westby took in more than $985,000 from his investors, which funds he then used to purchase two vehicles, repay a personal loan, pay personal credit card bills, and buy a vintage basketball court for his home.
IRS Criminal Investigation Special Agent in Charge, James D. Robnett stated, “IRS Criminal Investigation did what we do best…follow the money! IRS CI plays a critical role in locating the money and prosecuting the offenders who steal from honest Indiana investors.”
W. Jay Abbott, Special Agent in Charge of the Indianapolis Office of the Federal Bureau of Investigation, stated, "Today's arrest sends a clear message that illegal business practices will not be tolerated. The Federal Bureau of Investigation and our law enforcement partners will continue to aggressively pursue individuals who steal from honest, hardworking Americans."
This case was jointly investigated by the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Indiana Secretary of State.
According to Assistant United States Attorney Tiffany J. McCormick who is prosecuting this case for the government, Westby faces up to 20 years imprisonment if convicted.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proven guilty in federal court.
Former High School Teacher Sentenced for Distributing Child PornRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former teacher at St. Elizabeth High School in St. Elizabeth, Mo., was sentenced in federal court distributing child pornography.
Stephen Gregory Strobel, 26, of Jefferson City, Mo., was sentenced by U.S. District Judge Brian C. Wimes to 10 years and one month in federal prison without parole. The court also ordered Strobel to serve 15 years on supervised release following his incarceration.
On April 18,2016, Strobel pleaded guilty to distributing child pornography.
In April 2014 a Wooster, Ohio woman discovered that her 13-year-old daughter had engaged in a sexually explicit Internet chat with Strobel. On May 12, 2014, investigators contacted Strobel at St. Elizabeth High School. Strobel admitted he had exchanged pornographic photos with the 13-year-old victim and that she had sent him pornographic photos and a video. According to court documents, Strobel then distributed that video to another person.
Strobel also told investigators that he had traded photos of underage girls with various people online. He never asked the ages of the children depicted, but estimated them to be between the ages of 13 and 15. Strobel estimated that he had received 15 photographs of underage children, the youngest being five or six years old. He stated that he had sent approximately 10 photos of underage children to other people and had also shared videos depicting underage children.
According to court documents, Strobel sent photos depicting child pornography to other individuals throughout the United States, including users who were identified as possible children with whom Strobel was communicating, engaging in sexual role playing and exchanging suspected child pornography images.
Investigators identified a video and approximately 500 images of child pornography on Strobel’s iPhone.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Missouri State Highway Patrol, the FBI, the Ohio Attorney General’s Office and the Wayne County, Ohio, Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Financial Broker Sentenced for Obstructing IRS Laws, Ordered to Pay More Than $848,000 in RestitutionRead the Press Release
Memphis, TN – A Germantown man has been sentenced to federal prison for obstructing IRS laws, and is ordered to pay more than $848,000 in restitution. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, John Ballard, 47, of Germantown, Tennessee, was a former securities/investment broker for NFP Securities. Ballard failed to file and pay income tax returns from 2000 to 2008. Ballard’s delinquency caused him to owe more than $848,000 in back taxes.
By falsely claiming to the Internal Revenue Service (IRS) that he was unemployed and unable to find employment, Ballard was able to avoid satisfying his tax obligations.
Despite owing the government, Ballard was paid approximately $522,140.79 in 2009 alone from his then-employer NFP Securities.
In April 2016, Ballard pleaded guilty before U.S. District Judge Sheryl H. Lipman to one count of obstruction of IRS laws.
On Tuesday, August 9, 2016, Judge Lipman sentenced Ballard to 18 months in federal prison. Following his release, Ballard will be required to serve three months at a halfway house. He has also been ordered to pay more than $848,000 in restitution to the IRS.
This case was investigated by IRS-Criminal Investigation.
Assistant U.S. Attorney Damon K. Griffin prosecuted this case on the government’s behalf.
Former Federal Law Enforcement Agent Agrees to Pay $40,000 to Resolve False Claims Act AllegationsRead the Press Release
Douglas daCosta of Livermore, California, has agreed to pay $40,000 to resolve allegations that he submitted false claims to the government for paid sick leave when he worked as a federal law enforcement agent for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Department of Justice announced today.
“When a law enforcement officer misuses taxpayer funds, he does a disservice to his colleagues who serve with professionalism and distinction,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “This settlement shows that we will not hesitate to hold individuals accountable if they misuse taxpayer funds.”
“Federal agents must be held to answer when they breach the public’s trust,” said Special Agent in Charge Elise Chawaga of the Department of Justice Office of Inspector General’s Fraud Detection Office. “The Office of the Inspector General remains vigilant in its effort to uncover government waste, fraud and abuse and to recover all ill-gotten gains.”
The United States alleged that daCosta submitted the false requests while working as a criminal investigator for the ATF’s San Francisco field division in 2009. From January 2009 until his retirement in June 2009, daCosta claimed more than 80 days of paid sick leave for which he was not eligible, according to the government’s allegations. Specifically, the United States alleged that daCosta falsely represented to his supervisors that he was undergoing extensive treatment for cancer, going so far as to provide a forged letter from a physician to support his claims. The government contends, however, that daCosta did not have cancer and was not undergoing any such treatments. Additionally, at the same time that daCosta was feigning illness to receive paid sick leave from the government, he was working in the private sector, according to the government’s allegations.
This matter was handled by the Civil Division’s Commercial Litigation Branch in conjunction with the Department of Justice’s Office of the Inspector General.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Former Community Health Clinic CFO Involved in Complicated Scheme to Defraud the Government Sentenced to 17 Years in PrisonRead the Press Release
BIRMINGHAM – A federal judge today sentenced the former chief financial officer of an Alabama non-profit health clinic for the poor and homeless to 17 years in prison for a complicated scheme to defraud millions of dollars from two non-profit health clinics and the federal government health agencies that provided most of their funding, and for a separate scheme to defraud a life insurance company that involved identity theft against a physician.
Chief U.S. District Judge Karon O. Bowdre sentenced TERRI McGUIRE MOLLICA, 50, of Birmingham, to 15 years for the $11 million fraud involving the two clinics, Birmingham Health Care and Central Alabama Comprehensive Health in Tuskegee, and for mail fraud connected to the insurance fraud. The fraud against the two clinics also led to money laundering by Mollica and the filing of false tax returns. Those crimes were included in the 15-year sentence. For the aggravated identity theft of a physician on a phony death certificate, Mollica received an additional two years in prison. U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton, Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot, and U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Regional Office Special Agent in Charge Derrick L. Jackson announced today’s sentencing.
As part of Mollica’s sentence, she must forfeit $1,961,397 to the government as proceeds of illegal activity,.
Mollica pleaded guilty last year to 19 counts related to the fraud against the government -- six counts of wire fraud affecting a financial institution, eight counts of mail fraud affecting a financial institution and five counts of money laundering. She also pleaded guilty to four counts of filing false tax returns, and to one count of mail fraud and one count of aggravated identity theft related to the life insurance fraud.
In June, a federal jury convicted Jonathan Dunning for his role in the scheme against the health clinics and the federal funding agency. His sentencing is set for Oct. 14.
Mollica's fraud against the government, as outlined in court records, is as follows:
She was the chief financial officer of the non-profit BHC clinic from April 2005 through November 2008. She also performed fiscal duties for CACH, the Tuskegee non-profit clinic intended to provide primary and preventative health care to people in east Alabama, regardless of their ability to pay. BHC's chief executive officer served for a time as the chief executive officer of the Tuskegee clinic and, in 2008, BHC took over fiscal responsibility of CACH.
Between January 2008 and March 2012, Mollica aided others in diverting about $11 million in federal grant money and assets and property of BHC and CACH to numerous private entities using "Synergy" in the name. Mollica and others retained authority over the affairs of BHC and CACH as they operated the Synergy entities. Mollica then conducted financial transactions to transfer money from the private entities to herself and others, illegally receiving about $1.7 million through the scheme.
BHC began receiving grants from the Health Resources and Human Services Administration, an arm of the U.S. Department of Health and Human Services, more than 20 years ago. Federal grants administered by HRSA and HHS constituted the overwhelming majority of BHC and CACH funding during the relevant time.
Mollica and others misrepresented and concealed information from HRSA to ensure the agency would continue to grant money to the Birmingham and Tuskegee community health clinics.
The FBI, IRS and HHS-OIG investigated the case. Assistant U.S. Attorneys Melissa Kay Atwood, Tamarra Matthews-Johnson and John B. Ward prosecuted the case.
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Former Chief Financial Officer Sentenced to 20 Months’ for Role in $30 Million Bank Fraud SchemeRead the Press Release
Earlier today, Thomas Torre, the former Chief Financial Officer of Metro Fuel Oil Corp., was sentenced to 20 months’ imprisonment, three years of supervised release, and ordered to forfeit $800,000 in criminal proceeds. On May 20, 2015, Torre pled guilty to conspiring to commit bank fraud by overstating Metro Fuel’s accounts receivable in order to draw from a revolving line of credit issued by New York Commercial Bank (NYCB). The fuel company later filed for bankruptcy after fraudulently obtaining over $30 million from NYCB. The sentencing proceeding was held before United States District Judge Pamela K. Chen.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York. Mr. Capers expressed his grateful appreciation to the Federal Bureau of Investigation, New York Field Office, the agency responsible for leading the government’s investigation in this case.
For sixty consecutive months, from 2007 to July 2012, Torre submitted false certificates to NYCB that falsely overstated the company’s accounts receivables. The bank used the information in the certificates to determine the amount Metro Fuel could borrow on its revolving line of credit. Torre misrepresented the true accounts receivable by deliberately failing to account for the cash payments received from customers and by creating fictitious invoice amounts. By September 2012, the fuel company could no longer pay its bills and filed a voluntary petition for bankruptcy. At the time of the bankruptcy, the company owed NYCB more than $30 million.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney William P. Campos is in charge of the prosecution, with assistance provided by Assistant United States Attorney Brian Morris of the Office’s Civil Division, which is responsible for the forfeiture of assets.
The charges were brought 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.
The Defendant:
Thomas Torre
Age: 63
Albertson, New YorkE.D.N.Y. Docket No. 14 - CR - 514 (PKC)
Five Individuals Indicted in August Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the August 2016 Federal Grand Jury.
"The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
WILLIAM HENRY CRAIG, age 26, of Wagoner, Oklahoma
Possession Of An Unregistered Firearm (Destructive Device)
Possession Of An Unregistered Firearm
Possession Of A Firearm With An Obliterated Serial NumberThe Indictment alleges that on or about April 5, 2016, within the Eastern District of Oklahoma, the defendant did knowingly possess a destructive device, which is a firearm, a CBC (Companhia Brasileira de Cartuchos), Model 151, 20 gauge shotgun, with a barrel of less than 18 inches in length and an overall length of less than 26 inches, not registered to him and from which the manufacturer's serial number had been removed, altered and obliterated, which had been shipped and transported in interstate or foreign commerce.
The charges arose from an investigation by the Wagoner Police Department, the Oklahoma Highway Patrol and the Bureau of Alcohol, Tobacco and Firearms. The charges are in violation of Title 26, United States Code, Sections 5861(d), 5841 and 5871, punishable by no more than 10 years imprisonment, a fine up to $10,000.00 or both and Title 18, United States Code, Sections 922(k) and 924(a)(1)(B), punishable by not more than 5 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Kristin Harrington
THOMAS ZACHARY PETERS, age 32, of Lansing, Michigan
Failure To Register As Sex Offender
Felon In Possession Of Firearm And AmmunitionThe Superseding Indictment alleges that from in or about November 2015, the exact date being unknown, until on or about June 1, 2016, in the Eastern District of Oklahoma, and elsewhere, the defendant, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of Michigan, in Eaton County, on or about April 7, 2005, for the offense of Criminal Sexual Conduct-2nd Degree, traveled in interstate and foreign commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act and having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition.
The charges arose from an investigation by the Pittsburg County Sheriff’s Department and the United States Marshals Service. The charges are in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3), and Title 18, United States Code, Section 922(g)(1), each charge is punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Edward Snow
BRADLEY DEWAYNE BAILEY, age 39, of Messer, Oklahoma
Felon In Possession Of Firearm
The Indictment alleges that on or about May 17, 2016, July 6, 2016 and July 18, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Choctaw County Sheriff’s Office, the Hugo Police Department and the Federal Bureau of Investigation. The charges are in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Dean Burris
MICHAEL FERRARIE EUBANKS, age 57, of Atoka, Oklahoma
HYDIE ROYLENE EUBANKS, age 58, of Atoka, Oklahoma
Theft Of Government Funds
Concealment Of A Material Fact
False Statements
Forfeiture AllegationThe Indictment alleges that from in or about September 2010, and continuing through March 10, 2016, within the Eastern District of Oklahoma, defendants did knowingly and willfully embezzle, steal, and convert to their own use, money and things of value from the Social Security Administration (“SSA”), a department or agency of the United States, which money had been paid to the defendants as Social Security disability payments for the benefit of MICHAEL FERRARIE EUBANKS to which the defendants knew MICHAEL FERRARIE EUBANKS was not entitled, having a value in excess of $1,000.00 and in a matter within the jurisdiction of Social Security Administration, having knowledge of the occurrence of an event affecting the right to receive or continue to receive Social Security Disability Income payments, concealed and failed to disclose such events with the intent to fraudulently secure payment when no payment was authorized. Specifically, defendants MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS intentionally concealed that MICHAEL FERRARIE EUBANKS secured gainful employment in order to receive and continue to receive and spend Disability Income payments made by the Social Security Administration to them. By such action, defendants MICHAEL FERRARIE EUBANKS and HYDIE ROYLENE EUBANKS took approximately $67,633.00 in Social Security Disability Income payments to which they were not entitled.
The Indictment further alleges that on or about June 10, 2015 and again on or about December 21, 2015, in the Eastern District of Oklahoma, the defendants did knowingly make or cause to be made any false statement or representation of a material fact to the Social Security Administration in any application for any payment or for a disability determination.
The charges arose from an investigation by the Social Security Administration, Office of Inspector General. The charges are in violation of Title 18, United States Code, Sections 641 & 2, punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both; Title 42, United States Code, Section 408(a)(4) and Title 18, United States Code, Section 2; Title 18, United States Code, Section 1001, all punishable by not more than 5 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Rob Wallace
Fifteen Methamphetamine Traffickers Sentenced to PrisonRead the Press Release
STATESVILLE, N.C. – U.S. District Judge Richard L. Voorhees handed down prison terms ranging from as much 235 to 51 months to 15 methamphetamine traffickers, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
The 15 defendants sentenced today and yesterday in U.S. District Court in Statesville are:
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Gregory Ryan Ellis, 39, of Jefferson, N.C. was sentenced to 235 months, followed by 5 years of supervised release. (5:15-cr-68)
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Todd Phillip Radar, 39, of Tonawanda, New York, was sentenced to 235 months, followed by 5 years of supervised release. (5:15-cr-45)
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Teofilo Salinas Cervin, 44, of Mexico, was sentenced to 210 months, followed by 5 years of supervised release. (5:16-cr-20)
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William Mitchell Lee Pope, 36, of Connelly Springs, N.C., was sentenced to 146 months, followed by 5 years of supervised release. (5:15-cr-44)
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Donald Ray Newton, 34, of Byron, Georgia, was sentenced to 131 months, followed by 5 years of supervised release. (5:15-cr-57)
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Eric Germaine Summers, 29, of Statesville, was sentenced to 121 months, followed by 5 years of supervised release. (5:15-cr-73)
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Adam Houston Stokes, 29, of Sherman Oaks, California, was sentenced to 120 months, followed by 5 years of supervised release. (5:15-cr-78)
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Codey Wayne Michaels, 25, of Valdese, N.C., was sentenced to 120 months, followed by 5 years of supervised release. (5:15-cr-76)
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Anthony Gwyn Lackey, 39, of North Wilkesboro, N.C., was sentenced to 92 months, followed by 5 years of supervised release. (5:15-cr-68)
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Ryan Lewis Craig, 33, of Conover, N.C., was sentenced to 83 months, followed by 4 years of supervised release. (5:15-cr-46)
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Blake Adam Masters, 27, of Clarkesville, Georgia, was sentenced to 78 months, followed by 4 years of supervised release. (5:15-cr-50)
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Lindsey Jordan Price, 22, of Taylorsville, N.C., was sentenced to 63 months, followed by 3 years of supervised release. (5:15-cr-44)
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Jennifer Irene Brown, 35, of Mooresville, N.C., was sentenced to 63 months, followed by 3 years of supervised release. (5:15-cr-50)
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Xavier Watson, 25, of Virginia Beach, Virginia, was sentenced to 51 months, followed by 3 years of supervised release. (5:13-cr-25
These prosecutions stem from an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by ICE’s Homeland Security Investigations (HSI), and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the assistance of the North Carolina State Bureau of Investigation, North Carolina State Highway Patrol, Alexander County Sheriff’s Office, Alleghany County Sheriff’s Office, Ashe County Sheriff’s Office, Boone Police Department, Caldwell County Sheriff’s Office, Catawba County Sheriff’s Office, Hickory Police Department, Iredell County Sheriff’s Office, Lenoir Police Department, Lincoln County Sheriff’s Office, Mooresville Police Department, Pineville Police Department, Statesville Police Department, Burke County Task Force, and a host of law enforcement agencies throughout North Carolina, Texas, Georgia, and Tennessee.
To date, more than 90 individuals have been convicted as a result of the long term investigation. Court records show that the drug trafficking organizations involved have trafficked methamphetamine worth millions of dollars. Over the course of the investigation, law enforcement seized multiple kilograms of crystal methamphetamine, $100,000 in U.S. currency, and dozens of firearms.
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement U.S. Attorney Rose thanked all the law enforcement agencies involved for their investigative efforts. Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
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Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
Acting United States Attorney Beth Drake stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictments against the following:
Greenville Man Indicated on Threatening to Bomb Social Security Administration Building
Ronnie Vaughn, age 69, of Greenville, South Carolina, was charged in a 1-count indictment. Ronnie Vaughn was charged with Willfully Making a Threat – Explosive Materials, in violation of Title 18, United States Code, Section 844(e), which carries a maximum penalty of 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Federal Protective Service and is assigned to Assistant United States Attorney D. Josev Brewer of the Greenville office for prosecution.Georgia Man Indicated on Aggravated Identity Theft in Connection with the Use of Mail and the Filing of Federal Tax Returns
Cristobal Guevara Castelan, age 30, of Palmetto, Georgia was charged in a 4-count indictment. Cristobal Guevara Castelan was charged with Fraud in Connection with Identification Information, in violation of Title 18, United States Code, Section 1028, which carries a maximum penalty of 15 years imprisonment and a maximum fine of $250,000; Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A, which carries a 2-year term of imprisonment consecutive to any other term of imprisonment imposed and a maximum fine of $250,000; and 2 counts of Mail Fraud, in violation of Title 18, United States Code, Section 1341, which carry a maximum penalty of 20 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Internal Revenue Service and is assigned to Assistant United States Attorney D. Josev Brewer, of the Greenville office for prosecution.The Acting United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Fargo Resident Pleads Guilty to Tax EvasionRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on August 9, 2016, Gary Spencer Smith, 61, Fargo, ND, pled guilty before US District Judge Ralph R. Erickson to an Information charging him with Attempt to Evade and Defeat the Payment of Tax.
"Gary Spencer Smith’s attempt to evade tax by failing to report his income, failing to file tax returns for 13 years, and failing to pay his taxes was a theft from the American taxpayers. It is a felony offense that carries severe consequences," said Shea Jones, Special Agent in Charge, IRS Criminal Investigation, St. Paul Field Office. "The IRS and U.S. Attorney’s Office remain determined and vigilant in uncovering such schemes to cheat the honest taxpayers."
Beginning in 1999 through 2010, Smith concealed and attempted to conceal a large part of income from the Internal Revenue Service (IRS). Although he earned substantial income between 1999 and 2010 as an independent contractor selling steel buildings for another corporation, he failed to timely file returns with the IRS and evaded payment of most of his income taxes, which totaled approximately $243,488 during that period. In an effort to evade paying taxes, Smith created his own corporation, Strong Steel Buildings Inc., and requested that income and paychecks be made payable to his corporation rather than to him in order to avoid the filing of 1099s with the IRS.
Judge Erickson has set sentencing for Oct. 31, 2016, at 10:00 AM, at the US District Court, Fargo, ND.
Smith faces a maximum penalty of 5 years’ imprisonment, a $250,000 fine, 3 years supervised release, and a $100 special assessment.
This case is being investigated by the Internal Revenue Service - Criminal Investigation Division.
Assistant US Attorney Scott Schneider is prosecuting the case.
El Paso, Texas, Man Facing Federal Drug Trafficking Charge in New Mexico Following Seizure of 41 Pounds of CocaineRead the Press Release
ALBUQUERQUE – This morning a U.S. Magistrate Judge sitting in Las Cruces, N.M., found probable cause to support a criminal complaint charging Gerry Billy Olivas, 39, of El Paso, Texas, with a cocaine trafficking offense after Olivas waived a preliminary hearing. Olivas was remanded into custody pending trial.
Olivas was arrested on Aug. 3, 2016, on a criminal complaint alleging that he possessed approximately 18.8 kilograms (41.44 pounds) of cocaine in Otero County, N.M. According to the complaint, Olivas was arrested on Aug. 3, 2016, after U.S. Border Patrol agents at the U.S. Border Patrol checkpoint south of Alamogordo, N.M., allegedly seized approximately 16.2 kilograms (35.71 pounds) of cocaine from Olivas’ vehicle. The agents also seized approximately 2.6 kilograms (5.73 pounds) of cocaine from a storage unit located in El Paso that was allegedly owned by Olivas.
If convicted of the charge in the criminal complaint, Olivas faces a statutory minimum of ten years and a maximum of life in federal prison. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Alamogordo station of the U.S. Border Patrol and the Las Cruces office of the DEA. Assistant U.S. Attorney Brock Taylor of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Defendants Who Conspired with Others to Traffic in Analogue Substance SentencedRead the Press Release
ABINGDON, VIRGINIA – United States Attorney John P. Fishwick Jr. announced an additional two sentencings today in the ongoing prosecution of a 22-member conspiracy that brought a controlled substance analogue to Southwest Virginia from as far away as China.
Brian Junior Ramey, 24, previously pled guilty to one count of conspiracy to distribute and possess with the intent to distribute 50 grams of alpha-PVP, a controlled substance analogue. Today in District Court, Ramey was sentenced to 15 months in federal prison.
In a separate hearing, Lakyn Jade Wells, 28, who previously pled guilty to one count of conspiracy to distribute and possess with the intent to distribute 10 kilograms of alpha-PVP, was sentenced to 60 months in federal prison.
“This prosecution has put an end to a trafficking operation that was bringing large amounts of these dangerous substances into Southwest Virginia,” United States Attorney Fishwick said today. “The sentences receives by these defendants should serve as an example that the Department of Justice takes the trafficking of these analogue substances just as seriously as other illegally drugs and will be treated as such.”
According to evidence presented at previous hearings by Assistant United States Attorney Erin M. Kulpa, Ramey, and others members of the conspiracy, disturbed alpha-PVP, a controlled substance analogue, in Southwest Virginia between 2012 and 2015. Members of the conspiracy placed orders of the powder form of alpha-PVP from distributors based in Florida and China and had these items shipped to residential addresses in Wise, Virginia. The conspirators would retrieve the packages and distribute the contents to mid-and-low level dealers in and around Wise, Virginia for distribution to alpha-PVP users.
Members of the conspiracy also regularly transported the hard form of alpha-PVP, commonly known as “Gravel” from suppliers in North Carolina and Tennessee to Wise, Virginia for distribution. As part of the conspiracy, members would break the larger quantities of “Gravel” into smaller amounts for sale to drug users, typically .5 to 1 gram amounts.
The investigation of the case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service, the Southwest Virginia Drug Task Force, the Virginia State Police, the Big Stone Gap Police Department, the Wise County Sheriff’s Office, the City of Norton Police Department, the Dickenson County Sheriff’s Office, the Sullivan County, Tennessee, Sheriff’s Office, the Coeburn Police Department, the Clintwood Police Department and the Wise Police Department. Assistant United States Attorney Erin M. Kulpa prosecuted the case for the United States.
Customs Officer Arrested in Bank Fraud Case that Alleges He Stole Mail Containing Checks from International Mail Facility in TorranceRead the Press Release
LOS ANGELES – A longtime U.S. Customs and Border Protection (CBP) officer has been arrested on federal charges that allege that he stole mail from the International Mail Facility (IMF) in Torrance and arranged to have an accomplice deposit checks obtained from the stolen mail.
Carlos Canjura, 54, of Van Nuys, was arrested yesterday without incident by special agents with the FBI. The arrest came after Canjura, who has been a CBP officer since 2008, was named in an eight-count indictment that was returned by a federal grand jury on August 4.
At an arraignment yesterday afternoon in United States District Court, Canjura pleaded not guilty to the charges in the indictment and was released on his own recognizance.
According to the indictment, Canjura was a CBP Officer assigned to the IMF, where his duties included examining mail and parcels coming into the United States for contraband, counterfeit goods, and possible fraudulent financial checks or credit cards. The IMF is operated by the United States Postal Service and serves as a location where international mail is processed by CBP officers and other personnel to ensure compliance with federal law before being delivered to addresses in the United States.
"The public should be able to use the mail without fear that officials charged with safeguarding the system are not abusing it for their own benefit," said United States Attorney Eileen M. Decker. "Mr. Canjura not only abused his position as a federal officer by stealing international mail, he also sought to use the stolen mail in an elaborate scheme to defraud banks and line his own pockets. In so doing, he violated the public trust he swore to uphold."
According to the indictment, while working at the IMF, Canjura stole mail that contained traveler’s checks and third-party checks. Canjura allegedly provided the stolen checks to other people, who altered the checks and deposited them into bank accounts at Bank of America.
The indictment specifically alleges that Canjura stole four checks with a cumulative value of more than $15,000.
“Americans must be able to trust officials handling their mail which conveys highly valuable information, to include our identification and financial data,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI is committed to holding accountable those, like Mr. Canjura, who abuse their positions of trust and threaten our security for personal gain.”
The indictment against Canjura charges him with four counts of bank fraud and four counts of possession of stolen mail. The case has been assigned to United States District Judge Beverly Reid O’Connell, who has ordered the parties to appear on August 15 for a trial setting conference.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Each charge of bank fraud carries a statutory maximum penalty of 30 years in prison, and each charge of possession of stolen mail carries a maximum sentence of five years in prison.
The investigation of this case was conducted by the Federal Bureau of Investigation, which received assistance from U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility and CBP’s Office of Professional Responsibility.
Cheektowaga Woman Sentenced for Money Laundering ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Nannette Brown, 47, of Cheektowaga, N.Y., who was convicted of conspiracy to commit money laundering, was sentenced to two years probation and a $500.00 fine by Chief U.S. District Judge William M. Skretny.
"It is often said that those who assist criminals are every bit as guilty as those who commit the initial offense,” said U.S. Attorney Hochul. “This case is an example of that principle."
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that the defendant conspired with her son, Tyshawn Bradley, to use the proceeds of Tyshawn Bradley’s cocaine distribution network to purchase real estate located in Buffalo. Brown admitted that her son asked her to purchase the following properties in her name in order to conceal Tyshawn Bradley as being the true owner of the properties: 8 Norway Park; 16 Cornwall Avenue; 514 Dodge Street; and 33 Gerhardt Street.
Brown, Tyshawn Bradley and nine others were arrested in April 2013 and charged with conspiracy to traffic 280 grams or more of crack cocaine and 500 grams or more of cocaine within the Perry Housing Projects. All 11 defendants have been convicted.
This case resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation conducted by the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Delano A. Reid. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for this nation's illegal drug supply.
Canadian Resident Sentenced in Sextortion CaseRead the Press Release
An Ontario man was sentenced today to 30 years in federal prison after having pleaded guilty to charges related to the sexual exploitation of two minor girls, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation, Detroit Field Office, and Chief Michael Patton of the West Bloomfield Police Department.
According to court records, from October through December 2013, Antonio P. Fontana, 59, coerced and enticed a 15-year-old girl (“Victim 1”) residing in the Eastern District of Michigan into performing various sexual acts for him in front of an Internet webcam on an almost daily basis. Fontana first began communicating with the victim on an Internet website, where he was posing as a 16-year-old boy. Fontana recorded many, if not all, of the sexual acts he forced Victim 1 to perform. Fontana threatened to post the recordings of Victim 1 on the Internet and to send them to her friends and family if she did not continue to perform sexual acts for him. When Victim 1 ultimately attempted to stop speaking to Fontana in late December 2013, Fontana continued to communicate with Victim 1 and her mother in an attempt to coerce Victim 1 into continuing to communicate. At various times in January and February, 2014, Fontana followed through with his threats, and sent sexually explicit images of Victim 1 to Victim 1’s email contacts and her mother.
Fontana committed similar conduct from November to December 2014 with a second minor victim (“Victim 2”), a 14-year-old girl in the Eastern District of Michigan. Further investigation revealed that Fontana had similarly exploited children from all over the world, including several in the United States, Finland and England
“This defendant used the internet to exploit and extort innocent children in the most humiliating way. The bravery of the child in this case to come forward and report the perpetrator's conduct certainly prevented other children from being exploited this way.”
"Mr. Fontana hid behind the anonymity of the Internet to target and sexually exploit children in the most reprehensible of ways," stated David P. Gelios, Special Agent in Charge of the FBI Detroit Field Office. "This investigation proves the reach of the FBI, along with its local, state and federal partners, is a long one; in this case even across international borders. The protection of our children from depraved predators and online threats will remain a priority as long as there are those who would sexually exploit our children."
“Predators that target children via the Internet are not limited by state or national jurisdictional boundaries,” said Chief Patton. “The entire West Bloomfield community is thankful for the efforts and cooperation of the local, federal, and international law enforcement partners which led to this indictment.”
Fontana was extradited to the United States from Canada last year.
McQuade praised the work of the Special Agents of the FBI, the officers from the West Bloomfield Police Department and the detectives from the major crime unit of the Durham Regional Police Service, Ontario, Canada. The case is being prosecuted by Assistant United States Attorneys Douglas Salzenstein and Matthew Roth.
California Man Sentenced to 7 Years in Federal Prison for Trafficking HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LUIS CEDILLO, 33, last residing in Los Angeles, Calif., was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 84 months of imprisonment, followed by four years of supervised release, for trafficking heroin.
According to court documents and statements made in court, on November 14, 2013, members of the Drug Enforcement Administration’s New Haven Task Force followed a white Cadillac Escalade that CEDILLO was driving to a store where CEDILLO purchased items used to process and package illegal drugs. After the Escalade traveled to a garage in Wolcott, agents approached CEDILLO, secured him in handcuffs and received consent from the owner of the property to search the garage. Agents observed that the vehicle, which was raised on a lift, had sheet-rock screws coming through the metal of the bottom of the car. After a canine alert, agents located and opened a trap in the rear of the vehicle and retrieved approximately six kilograms of heroin. CEDILLO was arrested at the time.
A subsequent search of a residence in Danbury connected to CEDILLO revealed approximately $400,000 in cash.
CEDILLO has been detained since his arrest. On May 19, 2016, he pleaded guilty to one count of possession with intent to distribute one kilogram or more of heroin.
This matter was investigated by the DEA’s New Haven Task Force, which includes participants from the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Derby and Meriden Police Departments, and the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorney S. Dave Vatti.
Caledonia Investments to Pay $480,000 Civil Penalty for Violating Antitrust Premerger Notification RequirementsRead the Press Release
The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission, filed a civil antitrust lawsuit today in U.S. District Court in Washington, D.C. against Caledonia Investments plc for violating the premerger notification and waiting period requirements of the Hart-Scott-Rodino (HSR) Act of 1976 when it acquired voting securities of Bristow Group Inc. in February 2014. At the same time, the department filed a proposed settlement, subject to approval by the court, under which Caledonia Investments has agreed to pay a $480,000 civil penalty to resolve the lawsuit.
The HSR Act imposes notification and waiting period requirements for transactions meeting certain size thresholds so that they can undergo premerger antitrust review. Federal courts can assess civil penalties for premerger notification violations under the HSR Act in lawsuits brought by the department. The maximum civil penalty for an HSR violation increased from $16,000 per day to $40,000 per day effective Aug. 1.
Further details about this matter are described in the FTC’s press release issued today, and in the attached complaint and competitive impact statement.
Consistent with the requirements of the Tunney Act, the proposed settlement, along with the competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Daniel P. Ducore, Assistant Director for Compliance, Bureau of Competition, c/o Federal Trade Commission, 600 Pennsylvania Avenue, NW, CC-8416, Washington, D.C. 20580. E-mailed comments should be sent to: [email protected]. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may approve the proposed settlement upon finding that it is in the public interest.
Caledonia CIS
Caledonia Complaint
Caledonia Explanation
Caledonia PFJ
Caledonia Stipulation
CEO of Steel Contractor on World Trade Center Site Convicted at Trial of Fraud in Connection with Program Designed to Encourage Participation of Minority and Women-Owned BusinessesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that LARRY DAVIS, President and Chief Executive Officer of DCM Erectors, Inc. (“DCM”), and DCM itself, were convicted of engaging in a fraudulent scheme to violate the Port Authority’s Minority and Women-Owned Business Enterprise Program (“M/WBE Program”), which is designed to increase the role of minority and women-owned businesses working on its projects. DAVIS was convicted after an eight-day jury trial before U.S. District Judge Loretta A. Preska.
Manhattan U.S. Attorney Preet Bharara said: “As the jury found in its guilty verdict today, Larry Davis, the CEO of DCM Erectors, used fraud in connection with nearly a billion dollars of construction contracts on One World Trade Center. The construction work awarded to Davis came with the obligation to employ minority and women-owned businesses, an obligation that Davis shirked and then lied about. We cannot allow major public projects – particularly ones on the sacred World Trade Center site – to be built on a foundation of fraud. By its verdict today, the jury of New Yorkers made clear that it will not.”
According to the Complaint, Indictment and evidence presented at trial:
DCM specialized in steel erection for large construction projects. Since at least March 1999, DAVIS has owned DCM and served as its President and Chief Executive Officer. In 2007, DCM was awarded an approximately $256 million contract for work to be performed on One World Trade Center and in 2009, DCM was awarded an approximately $330 million trade contract for work to be performed on the World Trade Center Port Authority Trans-Hudson (PATH) Transportation Hub (collectively, the “World Trade Center Project”).
The work to be performed by DCM for the World Trade Center Project included, but was not limited to, structural steel supply and erection, supply and installation of metal decking, drafting and engineering, and surveying.
The Port Authority’s M/WBE Program is designed to ensure that M/WBEs receive work on its projects and applied to the World Trade Center Project. Pursuant to the M/WBE Program, all contractors, including contractors such as DCM, were obligated to make good faith efforts to enter into subcontracts with M/WBEs, with a goal of 17 percent of the overall contract amount to be given to M/WBEs (12 percent for MBEs and five percent for WBEs).
In order to satisfy the M/WBE Program, DAVIS engaged in a fraudulent scheme in which he caused DCM to claim that certain work was performed by a minority-owned business, Solera/DCM Joint Venture LLC (“Solera/DCM,” and a woman-owned business, GLS Enterprises, Inc. (“GLS”), when, in truth and in fact, DCM itself performed such work or arranged for such work to be performed by other non-M/WBE contractors.
Solera/DCM was a joint venture between DCM and a minority owned business, Solera Construction, Inc. (“Solera”), which was owned by Johnny Garcia, a qualified minority business owner who previously pled guilty for his role in the fraudulent scheme. Solera/DCM was purportedly owned 60 percent by Solera and 40 percent by DCM. DCM and DAVIS established Solera/DCM as a joint venture majority owned by Solera with the express purpose of using it to satisfy MBE requirements on public construction projects.
From 2009 through 2012, DAVIS caused DCM to misrepresent to the Port Authority that Solera/DCM performed certain work on the World Trade Center Project when, in truth and in fact, the work, including metal decking and steel procurement, was performed by a non-minority contractor or by DCM itself. To facilitate the fraud, DAVIS directed Solera/DCM to place laborers who worked for a non-minority contractor performing metal decking on Solera/DCM’s payroll and then invoice DCM for such laborers’ time and also created certain invoices and directed Garcia to sign them to make it appear as if Solera/DCM procured steel, when, in truth and in fact, DCM did so. DCM claimed MBE credit for work purportedly performed by Solera/DCM on the World Trade Center Project. As part of the fraudulent scheme, DCM paid Garcia a total of at least $2 million ($150,000 in annual salary and additional monthly payments).
The owner of GLS was Gale D’Aloia, who served as GLS’s President and previously pled guilty for her role in the fraudulent scheme. D’Aloia had been a long-time employee of DCM performing payroll management services for DCM and DAVIS’s related companies (the “Davis Group”). In 2004, D’Aloia left DCM and began performing the same payroll management services for DCM and the Davis Group through her company, GLS, which she registered as a WBE with the Port Authority.
From 2009 through 2012, DAVIS and DCM misrepresented to the Port Authority that GLS performed surveying work, and fraudulently claimed WBE credit for GLS’s purported surveying work, on the World Trade Center Project when, in truth and in fact, the surveying work was performed by DCM itself. To facilitate the fraud, DAVIS directed D’Aloia to place unionized surveyors on GLS’s payroll who had been on DCM’s payroll and then to certify such payroll and also to invoice DCM for the workers even though DCM continued to actually supervise them. As compensation for engaging in the fraudulent scheme, DAVIS paid GLS up to 10 percent of each week’s total gross payroll for the surveyors, which totaled hundreds of thousands of dollars.
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DAVIS, 65, of Mississauga, Ontario, Canada, was convicted of one count of wire fraud and one count of conspiracy to commit wire fraud, each of which carries a maximum sentence of 20 years in prison. He is scheduled to be sentenced November 15, 2016.
Mr. Bharara praised the investigative work of the Port Authority’s Office of Inspector General; U.S. Department of Labor, Office of Inspector General; IRS-Criminal Investigation; and DOT-OIG.
This case is being prosecuted by the Office’s Public Corruption Unit. Assistant United States Attorneys Robert L. Boone and Kan M. Nawaday are in charge of the prosecution.
Brothers Sentenced for $12.9 Million Software Piracy SchemeRead the Press Release
ALEXANDRIA, Va. – Donnetto Deantoni, 44, of St. Michael, Minnesota, was sentenced today to one year and one day in prison for his role in a $12.9 million software piracy scheme. Deantoni was also ordered to forfeit over $4.4 million in proceeds and to pay the victim, Autodesk, Inc., over $12.9 million in restitution.
Donnetto Deantoni’s brother, Deonnetti Deantoni, who led the conspiracy, was sentenced to 40 months in prison in April, and ordered to pay over $6.5 million in forfeiture and over $7.7 million in restitution.
Donnetto Deantoni pleaded guilty on April 12. According to court documents, over the course of a 26 month conspiracy the brothers conspired to distribute pirated versions of nearly $13 million worth of copyrighted engineering and design software belonging to Autodesk, Inc. They sold this software to engineering firms at deeply discounted prices using websites designed to make the software appear legitimate and went to great lengths to conceal their scheme. For example, the brothers interacted with customers under the false name “Monica Simpson,” and created a false entity, the “National Software Licensing Association,” to endorse their products.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, made the announcement after sentencing by U.S. District Judge James C. Cacheris. The case was prosecuted by Assistant U.S. Attorneys Kellen S. Dwyer and Maya D. Song, along with First Assistant U.S. Attorney Tracy Doherty-McCormick.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-CR-50.
Brentwood Man Indicted on Charges Relating to the Sexual Exploitation of a MinorRead the Press Release
PITTSBURGH - A Brentwood resident was indicted yesterday by a federal grand jury on charges of production, receipt, and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The three-count indictment named Mukesh Khawas, age 29, of Pittsburgh, PA, as the sole defendant.
According to the indictment, from June 14, 2016, to June 15, 2016, Khawas produced visual depictions and images of the sexual exploitation of a minor. The indictment further alleges that from June 14, 2016, to June 15, 2016, Khawas knowingly received images containing material depicting the sexual exploitation of a minor. The indictment further alleges that from June 14, 2016, to June 15, 2016, Khawas knowingly possessed and knowingly accessed with intent to view images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a maximum sentence of 20 years imprisonment for the production, receipt, and possession of child pornography counts, a fine of $765,000.00, and a term of up to a lifetime of supervised release. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Allegheny County District Attorney’s Office, and the West Virginia State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Boise Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BOISE – Allan Ebel, 63, of Boise pleaded guilty today in United States District Court to possession of child pornography, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, an electronic device at Ebel’s residence downloaded images of child pornography from a website based in Switzerland on at least six occasions in August of 2014. In July of 2015, agents with the Department of Homeland Security, with assistance from the Boise Police Department and the Ada County Sheriff’s Office, executed a search warrant at Ebel’s residence in Boise, Idaho, seizing numerous computers and electronic storage devices. Agents with the Department of Homeland Security conducted a forensic examination of the devices, and discovered images of child pornography saved in folders on a desktop computer and an external hard drive, and evidence that the devices were owned and used by Ebel. In the plea agreement, Ebel admitted possessing 4,688 images and 31 videos containing child pornography on the desktop computer and external hard drive.
Sentencing is set for October 25, 2016, before Senior U.S. District Judge Edward J. Lodge.
Possession of child pornography is punishable by up to 20 years imprisonment, a $250,000 fine, a term of supervised release of not less than five years and up to life, and a $100 special assessment. As part of his plea, Ebel also agreed to forfeit the desktop computer and external hard drive used in the commission of the charged offense.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, with assistance from the Boise Police Department and the Ada County Sheriff's Office, and was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Bloods Gang Member Pleads Guilty to Sex Trafficking a ChildRead the Press Release
NORFOLK, Va. – Keiawn Demarco McDonald, 23, of Virginia Beach, pleaded guilty today to charges of sex trafficking of a child. McDonald is the seventh and final member of this sex trafficking ring to be convicted (see chart below).
According to the statement of facts filed with the plea agreement, in the fall of 2015 McDonald, who is a member of a Virginia Beach-based set of the Bloods street gang, recruited a minor girl to engage in prostitution at various hotels in Norfolk, Chesapeake, and Virginia Beach. McDonald photographed the victim, posted online advertisements for her commercial sex services, and arranged prostitution appointments for her. McDonald also instructed the victim about how to conduct appointments with customers and monitored her activities by text message during her appointments. He required the victim to provide him with all the money she earned from her prostitution activities.
McDonald was indicted by a federal grand jury on March 9, and faces a mandatory minimum of 10 years in prison and a maximum penalty of life in prison when sentenced on December 15. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; and James A. Cervera, Chief of Virginia Beach Police, made the announcement after the plea was accepted by U.S. Magistrate Judge Robert J. Krask. Assistant U.S. Attorney V. Kathleen Dougherty is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16cr2.
Name
Age, Hometown
Charges Convicted of
Sentencing Info
Keiawn Demarco McDonald
23, Virginia Beach
Sex Trafficking of a Child
Sentencing set for December 15
Cordario Marcell Uzzle
23, Virginia Beach
Sex Trafficking of a Child
Sentenced on June 3 to 151 months
Darryl Trashaun Threat
22, Virginia Beach
Sex Trafficking of a Child
Sentenced on June 9 to 292 months
Tajaika R. Blackston
19, Virginia Beach
Conspiracy to Engage in Sex Trafficking of a Child
Sentenced on June 10 to 100 months
Keith Deontai Threat
22, Virginia Beach
Conspiracy to Engage in Sex Trafficking of a Child
Sentencing set for September 16
Shade Audrey Castro
23, Virginia Beach
Conspiracy to Engage in Sex Trafficking of a Child
Sentencing set for October 27
Gary Anthony Hassell
26, Virginia Beach
Sex Trafficking of a Child
Sentencing set for October 28
Avon Man Charged with Distributing Heroin Involved in Overdose Death of East Haddam ResidentRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that KERRY SCANLAN, 20, of Avon, was arrested yesterday on a federal criminal complaint charging him distributing heroin involved in an overdose death of an 18-year-old in East Haddam. The charge stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
Following his arrest, SCANLAN appeared before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was ordered detained.
As alleged in court documents, in the morning of March 19, 2016, Connecticut State Police and emergency medical personnel responded to a residence in East Haddam on the report of an “untimely death.” The victim, an 18-year-old male, was pronounced dead at the scene. At the scene, State Police seized the victim’s cell phone and multiple glassine bags containing powder residue. The investigation revealed that SCANLAN arranged to purchase heroin from a source in Hartford. On March 18, 2016, the victim drove to Avon, picked up SCANLAN and then drove to Hartford to purchase heroin.
On April 4, 2016, the Office of the Chief Medical Examiner issued a report listing the victim’s cause of death as “acute fentanyl intoxication.”
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration, the Connecticut State Police and the East Haddam Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Atlanta man sentenced to Federal prison for role in mail theft and check counterfeiting conspiracyRead the Press Release
BECKLEY, W.Va. – An Atlanta man was sentenced today to a year in federal prison and ordered to pay almost $17,000 in restitution for his role in a mail theft and counterfeit check cashing conspiracy, announced United States Attorney Carol Casto. DeAndre Smith, 23, previously pleaded guilty to conspiracy to commit postal theft and making and uttering counterfeit securities.
Smith admitted that on two occasions in November 2015, he traveled, along with a group of other conspirators, from Atlanta to Beckley. Once in Beckley, Smith and the group targeted businesses and stole checks out of mailboxes. Smith and his co-conspirators then used the information from the stolen checks to make counterfeit checks, which they then cashed at local banks.
The United States Postal Inspection Service and the Beckley Police Department conducted the investigation. Assistant United States Attorney Eric P. Bacaj is in charge of the prosecution. United States District Judge Irene C. Berger imposed the sentence.
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Air Conditioner Thief Sentenced for Violating Clean Air ActRead the Press Release
COLUMBUS, Ohio – Shannon Wayne Harrold, 48, of Glenford, Ohio, was sentenced in U.S. District Court to 54 months in prison and ordered to pay $29,045 in restitution for violating the Clean Air Act by cutting the tubing on air conditioning units he was stealing, which released a regulated refrigerant into the environment.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Jeffery Martinez, Special Agent in Charge of the U.S. Environmental Protection Agency (U.S. EPA), Ohio Attorney General Mike DeWine and Franklin County Prosecutor Ron O’Brien announced the sentence handed down today by U.S. District Judge Algenon L. Marbley.
According to court documents, in August and September 2015, Harrold engaged in a scheme to steal air conditioner units in order to sell the copper and parts from the units at scrap yards. He targeted suburbs in Central Ohio, stealing several units and dismantling them on site. Harrold was arrested on September 18, 2015 following a high-speed chase with the police, during which Harrold drove through several residential neighborhoods at more than 90 miles per hour.
“The defendant’s actions hurt businesses financially and put human health at risk,” Ohio Attorney General Mike DeWine said. “We helped investigate the case and we’ll continue to work with our task force partners on others like it to protect Ohioans.”
“Refrigerants deplete the ozone layer which protects people from the harmful effects of ultraviolet radiation such as skin cancer, so it’s imperative that they are handled properly and in accordance with the law,” said Jeffrey Martinez, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “Through the illegal venting of refrigerants and the sale of stolen air conditioner parts, the defendant violated the Clean Air Act, which protects public health and clean air. EPA and its law enforcement partners are committed to the investigation and prosecution of illegal conduct that jeopardizes public safety.”
Acting U.S. Attorney Glassman commended the investigation of this case by the U.S. EPA, Ohio Bureau of Criminal Investigation (BCI), Franklin County Prosecutor’s Office, Franklin County Sheriff’s Office, Westerville Police Department, Whitehall Police Department, Gahanna Police Department, Ohio EPA and Columbus Division of Police, as well as Assistant United States Attorney J. Michael Marous and Special Assistant U.S. Attorneys Heather B. Robinson and Brad J. Beeson, who are representing the United States in this case.
Tuesday 9 August 2016
Two Niagara County Men Indicted on Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned an 11 count indictment charging Timothy Laubacker, 25 of Lockport, NY, and Travis Guerriera, 26, of Olcott, NY, with conspiracy to distribute and receive child pornography, distribution of child pornography, receipt of child pornography, and cyberstalking. The charges carry a minimum penalty of five years in prison, a maximum of 20 years and a $250,000 fine. Laubacker also is charged with production of child pornography and attempted production of child pornography which carry a minimum penalty of 15 years in prison, a maximum of 30 years and a $250,000 fine.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that according to the indictment and information revealed in Court, in September 2015, Victim 1 reported to the Niagara County Sheriff’s Department that she received unsolicited communications from an individual on Facebook. The individual threatened to distribute and post images that Victim 1 sent to her then-boyfriend Travis Guerriera when she was about 14 years old.
During the investigation, it was determined that Laubacker was the individual who had contacted Victim 1 on Facebook. The investigation also determined that the co-defendant, Guerriera, had shared the initial images of Victim 1 with Laubacker. Victim 1 did not send the images requested by Laubacker. Thereafter, Laubacker posted a link on an anonymous website containing pornographic images of Victim 1.
In June 2015, Laubacker attempted to entice a second victim (Victim 2) via Facebook to produce pornographic images. When Victim 2 didn't comply, Laubacker threatened to distribute images that he claimed to have of Victim 2. These threats continued until November 2015. Laubacker made initial contact with Victim 2 during his former employment as a behavioral health aide at a mental health facility. Laubaker was terminated from that employment in late December 2015 for inappropriate communications with another minor female.
The defendants were arraigned before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. Laubacker was released on bail; a detention hearing is set for Guerriera on August 15, 2016 at 11:15 a.m.The indictment is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen and the Niagara County Sheriff’s Department, under the direction of James Voutour. The task force includes the Buffalo Police Department, the Cheektowaga Police Department and the Niagara County Sheriff’s Department. Additional assistance was provided by the St. Louis, MO office of the FBI.
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.Two Individuals Inidicted on Tax and Mortgage Fraud OffensesRead the Press Release
DALLAS — Special Agents with Internal Revenue Service (IRS) Criminal Investigation and the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) arrested Chukwuma Jonas Osuagwu, 43, of Dallas, late Friday, August 5, 2016, on various tax and mortgage fraud offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Osuagwu appeared before U.S. Magistrate Judge Paul D. Stickney yesterday and was detained pending trial because of an immigration hold.
Osuagwu is charged along with codefendant, James W. Mitchell, 34, of Boston, in a 12-count indictment, unsealed this afternoon, with tax and mortgage fraud offenses. Each is charged with one count of conspiracy to commit bank fraud, and Osuagwu is charged with five, and Mitchell with two, substantive counts of bank fraud. Osuagwu is also charged with five counts of subscribing to a false and fraudulent individual income tax return and one count of corruptly endeavoring to obstruct and impede the due administration of IRS laws.
The indictment alleges that starting as early as September 2006 and continuing for more than a year, Osuagwu engaged in a series of fraudulent real estate transactions in which he either personally purchased or sold to one or more straw purchasers or co-conspirators, including Mitchell, three residential condominium units on Hood Street in Dallas. Osuagwu was able to personally purchase, or assist others in purchasing multiple residential condominium units only by submitting, or causing to be submitted on behalf of others, false, fraudulent and fictitious statements, documents and representations, such as false bank statements, employment letters, false IRS W-2 statements or false paystubs indicating the purchaser worked for Osuagwu’s company, Inforation, Inc., to cause one or more financial institutions, including Bank of America, J.P. Morgan Chase Bank and Wells Fargo Bank, to issue a mortgage loan they otherwise would not have issued.
The indictment further alleges that during the July through November 2007 timeframe, Osuagwu and Mitchell together conspired to commit bank fraud in connection with mortgage loans on two of the condominium units.
Further, the indictment alleges that from September 2006 through April 2012, Osuagwu earned income through the purchase, sale and rental of multiple residential condominium units that he did not accurately disclose to the IRS on his tax returns. He also allegedly filed amended tax returns falsely reporting two dependents and claiming status as the Head of Household to maximize a fraudulent income tax return. Osuagwu, in fact, had no dependents and was ineligible to file as head of household.
The indictment further alleges that from approximately June 20, 2011, and continuing to approximately January 24, 2013, Osuagwu corruptly endeavored to obstruct and impede the due administration of the internal revenue laws by providing false, fictitious, and fraudulent documents and information to IRS employees.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted, each count of bank fraud and the conspiracy to commit bank fraud count carry a maximum statutory penalty of 30 years in federal prison and a $1 million fine. Each of the tax offenses, upon conviction, carry a maximum statutory penalty of three years in federal prison and a $250,000 fine. Restitution may also be ordered. The indictment also includes a forfeiture allegation that would require the defendants, upon conviction, to forfeit any property that constitutes or was derived from proceeds traceable to the offense.
IRS Criminal Investigation and the FHFA-OIG led the investigation; Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) assisted.
Assistant U.S. Attorney J. Nicholas Bunch is in charge of the prosecution.
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Tucson Alien Smugglers Sentenced to PrisonRead the Press Release
TUCSON, Ariz. – Yesterday, William Ken Huebbe, 31, of Tucson, Ariz., was sentenced by U.S. District Judge Jennifer G. Zipps to 11 years in prison. Huebbe had previously pleaded guilty to transportation of illegal aliens resulting in death. His co-defendant, Robert Evan Butcher Jr., 26, also of Tucson, Ariz. was previously sentenced to 48 months in prison.
On Jan. 8, 2015, Huebbe was driving a car on a two-lane road outside Three Points, Arizona. He and a co-defendant, Robert Evan Butcher Jr., were smuggling two unauthorized aliens towards Tucson. Huebbe panicked when he recognized an unmarked Border Patrol unit and fled at an extremely high rate of speed. Huebbe recklessly swerved into oncoming rush hour traffic and collided head-on with another motorist. The passenger in the other car, an 80-year-old woman, was killed instantly. The victim’s daughter, who was the driver, sustained massive injuries but survived after first responders extracted her. The co-defendant and the aliens also sustained serious injuries. Huebbe fled into the desert on a broken foot and was captured by Border Patrol agents shortly afterwards.
The investigation in this case was conducted by Homeland Security Investigations, Border Patrol and the Pima County Sheriff’s Office. The prosecution was handled by Josh A.C. Ackerman, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-15-230
RELEASE NUMBER: 2016-062_Huebbe
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Tuba City Man Sentenced to Nearly 20 Years in Federal Prison for Abusive Sexual Contact of a MinorRead the Press Release
PHOENIX - Yesterday, Rodney Begay, of Tuba City, Ariz., a member of the Navajo Indian Nation, was sentenced by U.S. District Judge John J. Tuchi to 235 months in prison, followed by a lifetime term of supervised release. Begay had previously pleaded guilty to abusive sexual contact of a minor.
The case involved the sexual abuse of 3 different girls, from 2005 to 2012, two also members of the Navajo Indian Nation-one non-native, occurring on the Navajo Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Department of Law Enforcement. The prosecution was handled by Sharon K. Sexton, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-08175-JJT
RELEASE NUMBER: 2016-060_Begay
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Texas Man Sentenced to 300 Months in Prison for Sexual Abuse of Orphans While Working in MalawiRead the Press Release
A former general manager at an orphanage in Malawi was sentenced today to 25 years in prison for one count of engaging in illicit sexual conduct in a foreign place, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Richard L. Durbin Jr. of the Western District of Texas.
Gerald Campbell, 66, of Odessa, Texas, pleaded guilty on May 18, 2016. Senior U.S. District Judge Robert A. Junell of the Western District of Texas presided over the sentencing and also ordered Campbell to serve a lifetime term of supervised release and to pay $40,000 in restitution.
According to admissions made in connection with his plea agreement, Campbell engaged in sexual acts with eight minors, all of whom were orphans living at the Victory Christian Children’s Home in Malawi between 1997 and 2009. Campbell admitted that he used his position as orphanage manager, with access to better accommodations and amenities, such as hot water, to lure the minor victims, one of whom was suffering from the effects of HIV, into his house and sexually abuse them. In addition, Campbell admitted that he knew that what he was doing was wrong and that he thought nobody would believe the minors if they reported the abuse. Furthermore, Campbell admitted that he sent money to some of the minors in an attempt to keep them from reporting the abuse to authorities.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated the case with assistance from the Texas Department of Public Safety’s Criminal Investigations Division. Trial Attorneys Leslie Fisher and Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Brandi Young of the Western District of Texas prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Texas Man Guilty of Defrauding Area LenderRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Bradley K. Boyd, 44, of Rhome, TX, pleaded guilty to wire fraud, before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison, and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Boyd owned and operated a construction business in the Dallas, Texas, area. The defendant entered into a factoring arrangement with a Rochester-area lender. The arrangement called for the lender to provide Boyd’s business with immediate cash in exchange for invoices owed to Boyd’s business. From March 2011 to July 2011, the defendant prepared approximately $1,200,000 in fraudulent invoices, and submitted them to the lender. Based upon the fraudulent invoices, the lender provided Boyd’s business with approximately $830,000 in cash.
The plea is the result of an investigation by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen and Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.Sentencing is scheduled for November 15, 2016, at 8:30 a.m. before Judge Wolford.
Tennessee Man Sentenced to 48 Months in Prison for Romney Tax Return Fraud and Extortion SchemeRead the Press Release
A Franklin, Tennessee, man was sentenced late yesterday to 48 months in prison for engaging in an extortion and wire fraud scheme involving former presidential candidate Mitt Romney’s tax returns.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Jack Smith of the Middle District of Tennessee and Special Agent in Charge Todd Hudson of the U.S. Secret Service’s Nashville Field Office made the announcement.
Michael Mancil Brown, 37, was found guilty at trial on May 12, 2016 of six counts of wire fraud and six counts of using facilities of interstate commerce to commit extortion. U.S. District Judge Billy Roy Wilson of the Eastern District of Arkansas, sitting by designation in the Middle District of Tennessee, imposed the sentence and also ordered Brown to pay $201,836 in restitution to PricewaterhouseCoopers LLP.
According to testimony at trial, evidence recovered from a computer seized from Brown’s residence in 2012 implicated Brown in a scheme to defraud Romney, the accounting firm of PricewaterhouseCoopers and others by falsely claiming that he had gained access to the PricewaterhouseCoopers internal computer network and had stolen tax documents for Romney and his wife, Ann D. Romney, for tax years prior to 2010.
In August 2012, a letter delivered to the offices of PricewaterhouseCoopers in Franklin demanded that $1 million worth of the digital currency Bitcoin be deposited to a specific Bitcoin account to prevent the release of the purportedly stolen Romney tax returns, according to trial evidence. The letter invited interested parties who wanted the allegedly stolen Romney tax documents to be released to contribute $1 million to another Bitcoin account. As part of the scheme, similar letters were delivered to the offices of the Democratic and Republican parties in Franklin and similar statements were posted to Pastebin.com.
The U.S. Secret Service’s Nashville Field Office investigated the case with assistance from the FBI’s Nashville Division. Senior Counsel Anthony V. Teelucksingh of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Byron Jones of the Middle District of Tennessee prosecuted the case.
Springfield Latin Kings Leader Sentenced for Heroin DistributionRead the Press Release
BOSTON – The former “Inca” of the Springfield Latin Kings gang was sentenced today in U.S. District Court in Springfield for distributing heroin.
Jose Cartagena, 38, of Springfield, Mass., was sentenced by U.S. District Court Judge Mark G. Mastroianni to 20 months in prison and three years of supervised release. In May 2016, Cartagena pleaded guilty to distributing heroin.
In October 2014, an investigation was initiated in an effort to disrupt and dismantle the Latin Kings’ criminal activity in Springfield and Holyoke. According to court documents, members and associates of the Latin Kings were engaged in the distribution of narcotics, particularly heroin. Furthermore, disputes with rival gangs over criminal activity and drug turf were on the rise and resulted in serious crimes of violence, including armed assaults with firearms and murder. The investigation led to the arrest of 12 alleged Latin Kings members in connection with drug and firearms offenses in November 2015.
As alleged in court documents, Cartagena held the position of “Inca,” or chief, of the Springfield chapter of the Latin Kings gang at the time of his arrest on Nov. 9, 2015. Cartagena admitted to distributing 300 bags of heroin in Springfield on July 31, 2015.
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 Katharine A. Wagner of Ortiz’s Springfield Branch Office.
Southern California Man Pleads Guilty to Owning Fake Law Firms That Promised to Help Struggling HomeownersRead the Press Release
More Than 1,500 Victims Defrauded Out of $9 Million
The Department of Justice announced that an Orange County, California, man pleaded guilty in U.S. District Court in Santa Ana, California, for his role as the owner and operator of a multi-million dollar fraudulent mortgage modification scheme that posed as a successful law firm to defraud struggling homeowners.
Bryan D’Antonio, 50, of Brea, California, pleaded guilty before U.S. District Court Judge David O. Carter for the Central District of California to one count of conspiracy to commit mail and wire fraud for his role as owner and operator of Rodis Law Group (RLG) and America’s Law Group (ALG). His sentencing is on Jan. 30, 2017.
“At the height of the mortgage crisis, this defendant, a convicted felon who was prohibited from any business engaged in telemarketing, created two fake law firms that promised struggling homeowners assistance saving their homes and modifying their mortgages,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Despite the many promises, these were telemarketing sales operations that took homeowners’ money and provided no meaningful assistance.”
“D’Antonio preyed on vulnerable victims – struggling homeowners,” said U.S. Attorney Eileen M. Decker of the Central District of California. “Pretending to offer legal assistance to their victims, D’Antonio and his cohorts actually offered nothing but false hopes and empty promises. Now, he will be held accountable in federal court for the damage he has caused so many victims.”
D’Antonio was previously convicted of mail and wire fraud and sentenced to four years in federal prison for his participation in a medical billing scheme. He was also subject to a permanent injunction prohibiting him from having any involvement with any business that engaged in telemarketing or misrepresented the services it would provide. As part of his plea hearing today, D’Antonio admitted that he started RLG while he was still on supervised release from his prior conviction. In violation of D’Antonio’s permanent injunction, RLG and ALG sold their services through an extensive telemarketing operation and employees routinely misrepresented the services RLG and ALG would provide.
D’Antonio admitted that, between October 2008 and June 2009, he participated in a scheme with Ronald Rodis, Charles Wayne Farris and others to induce homeowners to pay between $3,500 and $5,500 for the services of RLG and its successor entity, ALG. RLG and ALG advertised on radio stations nationwide, urging struggling homeowners to call a toll-free number and stated that the companies consisted of “a team of experienced attorneys” who were “highly skilled in negotiating lower interest rates and even lowering your principal balance.” In fact, RLG and ALG were telemarketing operations that never had teams of experienced attorneys. During much of the scheme, Ronald Rodis was the only attorney at RLG.
RLG and ALG telemarketers working for D’Antonio made numerous misrepresentations regarding the companies’ ability to negotiate loan modifications from the homeowners’ mortgage lenders. For example, the telemarketers stated that RLG and ALG had been in business for 11 years when in fact the company had only opened in October 2008. They falsely stated that RLG and ALG routinely obtained positive results for homeowners, including lower monthly payments, reductions in principal balance and lower interest rates. In fact, positive results were rarely achieved for any RLG or ALG clients. Telemarketers also falsely reiterated that homeowners would have a team of attorneys and real estate professionals assigned to their case. The telemarketers did not disclose to homeowners that RLG and ALG were owned and operated by Bryan D’Antonio, a convicted felon who was prohibited from engaging in telemarketing
In a plea agreement filed in federal court, D’Antonio admitted that the RLG and ALG schemes fraudulently obtained approximately $9 million from more than 1,500 victims.
D’Antonio’s co-defendants, Charles Wayne Farris and Ronald Rodis, both previously pleaded guilty to one count of conspiracy to commit mail and wire fraud.
This case was investigated by the FBI and is being prosecuted by Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Joseph T. McNally of the Central District of California.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Central District of California, visit its website at https://www.justice.gov/usao-cdca.
Smoke Signal Man Sentenced to 24 Years for Aggravated Sexual Abuse of a MinorRead the Press Release
PHOENIX – On Aug. 8, 2016, Michael K. Judy, 62, of Smoke Signal, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 24 years in federal prison, followed by five years of supervised release. Judy had previously pleaded guilty to one count of aggravated sexual abuse of a minor.
According to the plea agreement, on or between April 18, 2001, and April 17, 2003, Judy, an enrolled member of the Navajo Nation, knowingly engaged in a sexual act with the female victim, who was eight or nine years old at the time. In 2014, the victim, now an adult, along with five others, also members of the Navajo Nation, reported multiple instances of sexual abuse on the Navajo Reservation by Judy during their childhoods. In total, the reported abuse spanned nearly three decades.
The investigation in this case was conducted by the Navajo Nation Department of Public Safety and Federal Bureau of Investigation. The prosecution was handled by Christina Covault, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-15-8060
RELEASE NUMBER: 2016-061_Judy
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Seventeen federally indicted in Evansville drug caseRead the Press Release
Alleged to have trafficked large quantities of methamphetamine into Southern Indiana
PRESS RELEASE
Indianapolis B United States Attorney Josh J. Minkler, announced three indictments of 17 methamphetamine and firearms traffickers, which was unsealed today in U.S. District Court in Evansville. Law enforcement officers from the region participated in the execution of arrest and search warrants related to the investigation on persons and residences in the Evansville, Indiana, and elsewhere.
The indictments were the result of an investigation by the Evansville Office of the Drug Enforcement Administration, Evansville Vanderburgh County Drug Task Force, Evansville Police Department, Vanderburgh County Sheriff’s Department, Warrick County Sheriff’s Department, Indiana State Police, United States Marshals Service, Bureau of Alcohol Tobacco, Firearms and Explosives, Federal Bureau of Investigation and other federal, state and local law enforcement agencies.
“Drug dealing and the violence that is associated with it, will not be tolerated,” said Minkler. “Helping to maintain the safety of our communities and reducing violent crime is, and will remain a top priority of my office.”
From January 2016, through July 2016, leaders of various drug trafficking organizations obtained large quantities of methamphetamine, then redistribute to lower level dealers to be sold in the Evansville area. In most cases, the methamphetamine would be “fronted” to dealers on consignment, receiving payment after the sale to other dealers. Defendants used cell phones to communicate with one another, often times using code and text messages to discuss matters relative to their drug trafficking operation.
During the course of the investigation, over twenty-three (23) pounds of methamphetamine, approximately ten (10) pounds of marijuana, several thousand pills of ecstasy, eleven (11) firearms and tens of thousands of dollars in United States Currency were seized by law enforcement.
The indictments charge seventeen individuals as follows:
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Tavares Clay, 34, Las Vegas, Nevada
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Michael Lockridge, 30, Evansville, Indiana
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Cederick Baker, 40, Evansville, Indiana
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Joshua Wilson, 24, Evansville, Indiana
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Kenneth Ware Jr., 30, Evansville, Indiana
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Lamario Denton, 29, Evansville, Indiana
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Brandi Addison, 31, Evansville, Indiana
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Jayshon Clay, 21, San Bernardino, California
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Rick Davis, 28, Ingelwood, California
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Artisha Howard, 35, Los Angeles, California
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Terrance Walker, 40, Evansville, Indiana
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Adrian Davison, 42, Evansville, Indiana
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Rashad Robinson, 40, Evansville, Indiana
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Joshua Jacobs, 29, Evansville, Indiana
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Tanner McCoy, 36, Evansville, Indiana
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James Mitchell, 36, Evansville, Indiana
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Eugene Maxwell, 26, Evansville, Indiana
The Indictments charge fifteen (15) of the defendants with conspiracy to distribute and possession with the intent to distribute 500 grams or more of methamphetamine. Two (2) of the defendants, Mitchell and Maxwell, are charged with being felons in possession of firearms.
“Drug traffickers make our neighborhoods less safe,” said DEA Assistant Special in Charge Greg Westfall. “DEA is an enforcement agency and we along with our law enforcement partners, target violent criminals - the ones who bring drugs to your local schools and neighborhoods.”
"This is an example of how the partnership between our office and the U.S. Attorney's Office enhances the protection of citizens in Vanderburgh County and in the Southern District of Indiana," said Vanderburgh County Prosecuting Attorney Nicholas Hermann. "I would like to thank the officers and deputies whose dedication and hard work led to these indictments."
In addition to the seventeen (17) defendants facing federal charges, fifty-two (52) individuals have been charged, by the Vanderburgh County Prosecutor’s Office, with drug charges and other violations relating to this investigation.
According to Assistant United States Attorney Lauren Wheatley who is prosecuting this case for the government, most of the defendants face sentences of 10 years to life, if convicted.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
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Sebring Mother and Son Plead Guilty to Conspiring to Import EcstasyRead the Press Release
Yesterday, a mother and her son pled guilty to conspiring to import Ecstasy from the Netherlands.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
Annalisa Anfuso Patterson, 56, and her son, Jake Elwyn Patterson, 19, both from Sebring, pled guilty to conspiracy to import a controlled substance 3,4-methylenedioxy-methamphetamine (MDMA), also known as “Ecstasy,” in violation of Title 21, United States Code, Section 963; and attempted possession with intent to distribute a controlled substance- 3,4-methylenedioxy-methamphetamine (MDMA), also known as “Ecstasy” in violation of Title 21, United States Code, Section 846 and Title 18, United States Code, Section 2. Each offense carries a maximum statutory penalty of 20 years in prison. The defendants are scheduled to be sentenced on November 14, 2016 at 2:00 p.m., before U.S. District Judge Jose E. Martinez in Fort Pierce.
According to the court record, including the stipulated factual proffer, U.S. Customs and Border Protection (CBP) Officers in Miami identified, searched and detained two U.S. Postal Service (USPS) parcels, destined for Highlands County. The parcels were found to contain approximately 525 tablets of 3,4-methylenedioxy-methamphetamine (MDMA), also known as “Ecstasy,” a schedule I controlled substance. On May 17, 2016, HSI agents, with the assistance of United States Postal Inspectors, conducted a controlled delivery of one of the parcels to Sebring, Florida. Annalisa Patterson accepted and opened the parcel. Law enforcement then executed a search warrant at the residence and observed, next to the opened parcel, a laptop computer with images of MDMA on the screen.
The record indicates that the defendants used Bitcoins to place orders for MDMA through internet websites, the “dark web,” from the Netherlands. Jake Patterson used a test kit to ensure that the substances they had purchased were in fact Ecstasy. The defendants supplied other individuals with Ecstasy, from their Sebring residence.
Mr. Ferrer commended the investigative efforts of ICE-HSI, CBP, and USPIS. This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
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.
Sea Cliff Man Indicted for Scheme to Defraud More Than $1 Million from Elderly Woman’s EstateRead the Press Release
A four-count indictment was unsealed today in the United States District Court for the Eastern District of New York charging the defendant John Derounian with mail fraud, wire fraud, and aggravated identity theft in connection with a scheme to defraud the estate of an elderly victim of more than $1.2 million. The indictment was returned under seal by a federal grand jury sitting in Central Islip, New York, on July 26, 2016.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Philip Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division.
“Driven by greed, the defendant allegedly went to great lengths to perpetrate his fraudulent scheme to steal an elderly woman’s entire life-savings. Such conduct cannot, and will not, be allowed to go unpunished,” stated United States Attorney Capers. “This Office and the United States Postal Inspection Service are committed to protecting members of our community from fraudsters, especially those who target the elderly.” Mr. Capers extended his appreciation to Morgan Stanley for its invaluable cooperation during the investigation.
“To devise a scheme to steal from the deceased is despicably morbid. Mr. Derounian’s alleged crimes are unconscionable. Postal Inspectors have no tolerance for anyone who preys on innocent victims, either dead or alive, and will spare no resources to ensure those who commit these crimes are brought to justice,” stated Postal Inspector-in-Charge Bartlett.
As detailed in the initial complaint, prior court proceedings, and the indictment unsealed today, Derounian is charged for his role in a scheme to steal the entire estate of a woman, who is identified in the indictment as Jane Doe. On November 12, 2015, Derounian claimed to have found the body of Jane Doe, Derounian’s tenant, at her Sea Cliff home. Subsequent to Jane Doe’s death, Derounian is alleged to have placed a series of telephone calls and sent emails to Morgan Stanley in an effort to drain Jane Doe’s financial accounts of over $200,000.
Further, in an effort to perpetuate the fraud, Derounian created a forged will naming himself as the executor and sole beneficiary, aside from a comparatively small charitable donation, of Jane Doe’s estate. Derounian allegedly then used the authority of the forged will to cremate the body of Jane Doe and sell her real property for over $1 million, which he transferred into bank accounts he controlled. As a result of the investigation to date, funds totaling over $1.2 million have been seized from Derounian, and the indictment seeks forfeiture of those funds.
The defendant, who was previously arrested on a complaint and detained, is scheduled to be arraigned this morning before United States District Judge Joan M. Azrack at the federal courthouse in Central Islip.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Long Island Criminal and Civil Sections. Assistant United States Attorneys Mark E. Misorek and Robert W. Schumacher are in charge of the prosecution.
The Defendant:
JOHN DEROUNIAN
Age: 51
Sea Cliff, New YorkE.D.N.Y. Docket No. 16-412 (JMA)
Rockford Man Pleads Guilty to Embezzling More Than $250,000 from UnionRead the Press Release
ROCKFORD — A Rockford resident pleaded guilty before U.S. District Judge Philip G. Reinhard today to embezzling from a labor organization.
DAVID FLEURY, 49, pleaded guilty to an information charging him with embezzling more than $250,000 from Local 6 of the International Union of Bricklayers and Allied Craftworkers.
According to the written plea agreement, between January 2011 and May 2015, Fleury was President of Local 6 and managed the daily operation of the union local. Although paid a salary in the form of weekly electronic deposits into his bank account, Fleury admitted in the plea agreement that he caused an additional 153 salary checks and electronic deposits totaling $284,286 to be paid to him. Fleury also admitted to making $6,132 in unauthorized purchases on Local 6’s credit card, embezzling $4,585 in cash dues paid by Local 6 members, and failing to turn over additional reimbursement amounts related to his use of Local 6’s credit card for travel expenses. In the plea agreement, Fleury stated that he used the embezzled funds to pay for personal expenses, gambling at casinos, and vacations. Fleury also admitted to approving and signing false reports with the United States Department of Labor.
Fleury faces a maximum sentence of five years’ imprisonment, a fine of up to $250,000, or twice the gross gain or gross loss resulting from the offense, whichever is greater, supervised release of up to three years, and probation of one to five years. The judge must also order Fleury to pay full restitution to Local 6. Sentencing for Fleury is set for Dec. 15, 2016, at 9:00 a.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Purcell, District Director of the Chicago office of the United States Department of Labor – Office of Labor-Management Standards.
The government is represented by Assistant U.S. Attorney John G. McKenzie.
Plea Agreement
Rochester Man Pleads Guilty to Bank FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Henry Joseph Williams, 50, of Rochester, NY, pleaded guilty to bank fraud before Chief U.S. District Judge Frank P. Geraci. The charge carries a maximum penalty of 30 years in prison, and a $1,000,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Williams opened accounts at two area banks. Between May 2015 and August 2015, the defendant used his ATM cards to incur approximately $8,100 in charges which he then fraudulently disputed by falsely claiming that his ATM cards had been stolen. At the time of the offense, Williams was on federal supervised release for a 2012 wire fraud conviction.
The plea is the result of an investigation by United States Postal Service Inspection Service, under the direction of Inspector-in-Charge Shelly Binkowski, and the United States Probation Department, under the direction of Anthony San Giacomo.
Sentencing is scheduled for November 8, 2016, at 3:30 p.m. before Judge Geraci.
Resident of Manchester Sentenced to 71 Months for Bank RobberyRead the Press Release
CONCORD, N.H. – Ronald Alan Cook, a 45-year-old resident of Manchester, has been sentenced to 71 months in prison for robbing the Bank of New Hampshire at 705 Hooksett Road in Manchester on November 10, 2015, announced United States Attorney Emily Gray Rice.
To commit the offense, Cook entered the bank and handed a note to a bank teller that stated, “I have a gun!! Give me all the 100, 50, 20 and 10 now and fast.” Cook also told the teller, “This is serious give me all your money 50, 100, 20s.” The teller removed money from her teller drawer and gave it to Cook, who then ran from the bank. A description of the bank robber was broadcast to Manchester police officers. An officer saw Cook riding a bicycle near the bank and detained him because he matched the description of the bank robber. While being questioned by this police officer, Cook admitted that he robbed the bank.
Cook was sentenced by United States District Court Judge Steven McAuliffe.
The case was investigated by the Manchester Police Department and the Federal Bureau of Investigation. It was prosecuted by AUSA Robert M. Kinsella.
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Priest Pleads Guilty to Tax EvasionRead the Press Release
Stole Money from Parishioners and Lied to Return Preparer
A priest for the Roman Catholic Diocese of San Jose pleaded guilty today to four counts of tax evasion, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, U.S. Attorney Brian J. Stretch for the Northern District of California and Special Agent in Charge Michael T. Batdorf for the Internal Revenue Service’s Criminal Investigation (IRS-CI).
Father Hien Minh Nguyen, 56, admitted that over a period of four years, he stole money his parishioners donated to the Diocese and willfully evaded paying income taxes on the money he misappropriated each year from 2008 through 2011. He admitted that he deposited this money into his personal bank account, did not disclose this income to his return preparer, did not keep records of the donations he stole, and filed false income tax returns which did not report this money.
Father Nguyen also pleaded not guilty to bank fraud charges. Those charges are still pending.
“Father Nguyen stole money from his parishioners and filed false returns with the IRS to evade his income tax obligations,” said Principal Deputy Assistant Attorney General Ciraolo. “The department remains committed to holding all criminal tax offenders accountable for their illegal conduct, regardless of their profession. No one is above the law.”
Sentencing on the tax evasion convictions has not been scheduled. Father Nguyen faces a statutory maximum sentence of five years in prison and monetary penalties for each tax evasion conviction. Father Nguyen’s next scheduled appearance is a status conference on the bank fraud charges currently scheduled for Aug. 23. An indictment is merely an allegation and a defendant is presumed innocent until and unless proven guilty in court. Father Nguyen pleaded guilty to the tax evasion charges. He has not pleaded guilty to bank fraud charges and remains presumed innocent of those charges.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Brian J. Stretch commended special agents of the IRS-CI, who investigated the case and Trial Attorney Gregory Bernstein of the Tax Division and Assistant U.S. Attorney Thomas Moore of the Northern District of California, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
PG&E Found Guilty of Obstruction of an Agency Proceeding and Multiple Violations of the Natural Gas Pipeline Safety ActRead the Press Release
SAN FRANCISCO—A federal jury found Pacific Gas and Electric Company (“PG&E”) guilty today of multiple willful violations of the Natural Gas Pipeline Safety Act of 1968 (“PSA”) and obstructing an agency proceeding, announced U.S. Attorney Brian J. Stretch, California Attorney General Kamala D. Harris, San Mateo County District Attorney Stephen M. Wagstaffe, U.S. Department of Transportation Office of Inspector General Special Agent in Charge William Swallow, FBI Special Agent in Charge John F. Bennett, and San Bruno Police Chief Ed Barberini. The PSA violations were uncovered in the course of an investigation initiated after the fatal San Bruno natural gas pipeline explosion in 2010. The obstruction charge was added later after investigators discovered PG&E attempted to mislead the National Transportation Safety Board (NTSB) during its investigation.
The verdict follows a 5 ½ week trial before the Honorable Thelton E. Henderson, U.S. District Judge. The PSA-related charges stem from PG&E’s record keeping and pipeline “integrity management” practices. The evidence at trial demonstrated that PG&E willfully failed to address recordkeeping deficiencies concerning its larger natural gas pipelines knowing that their records were inaccurate or incomplete. The evidence further demonstrated that PG&E willfully failed to identify threats to its larger natural gas pipelines and to take appropriate actions to investigate the seriousness of threats to pipelines when they were identified. In addition, PG&E willfully failed to adequately prioritize as high risk, and properly assess, threatened pipelines after they were over-pressurized, as required by the PSA and its regulations. On April 1, 2014, a federal grand jury for the Northern District of California returned an indictment charging PG&E with multiple pipeline violations. In finding PG&E guilty, the jury concluded the company knowingly and willfully violated the PSA and its regulations between 2007 and 2010. The jury found PG&E guilty of 5 out of the 11 separate violations of the PSA charged.
The charge of obstructing an agency proceeding was included in a superseding indictment filed July 29, 2014. The charge centers around PG&E’s use of a letter in an attempt to mislead the NTSB during an investigation. The NTSB began its investigation immediately after the deadly San Bruno explosion. During the course of the NTSB’s investigation, PG&E provided a version of a policy outlining the way in which PG&E addressed manufacturing threats on its pipelines. In accordance with this policy, PG&E did not prioritize as high-risk, and properly assess, many of its oldest natural gas pipelines, which ran through urban and residential areas. Although PG&E was operating under the policy from 2009 through April 5, 2011, the company submitted a letter to the NTSB attempting to withdraw the document. According to PG&E’s letter, the policy was produced in error and was an unapproved draft. In finding PG&E guilty of obstructing an agency proceeding, the jury concluded PG&E intentionally and corruptly tried to influence, obstruct or impede the NTSB investigation, in violation of 18 United States Code Section 1505.
U.S. Attorney Brian J. Stretch provided the following statement:
On occasion an event occurs that is sufficiently devastating that a public account must be made, either through an admission of wrongdoing and acceptance of responsibility, or through the judgment of the people acting through a jury. Such an event was the explosion in San Bruno on September 9, 2010, and the physical and emotional injuries suffered by so many that terrible day.
In the aftermath of the explosion, our office, along with the District Attorney of San Mateo and the California Attorney General’s Office, charted a course to examine whether PG&E had complied with the federal regulations designed to keep people safe, or willfully disregarded those regulations. To honor the memory of those who perished in the explosion required nothing less. The jury has determined that PG&E management chose willfully not to follow certain of those regulations.
This verdict in no way diminishes or calls into question the hard, honest work done by PG&E’s employees in the field, as they labor tirelessly day and night to provide us with light and heat. It is a reflection only of the choices and priorities set at the top.
PG&E provides gas and electricity to the citizens of Northern California and must adhere to certain safety requirements and financial limitations. We hope that the verdict today insures that PG&E’s management will adhere faithfully to this compact in the future.
I want to thank the many prosecutors and team members whose singular focus and dedication was nothing short of heroic. The Assistant United States Attorneys who tried the case to the jury -- Hallie Hoffman, Jeff Schenk, and Hartley West – represented the Department of Justice with highest degree of professionalism.
Our office was teamed up with the California Attorney General’s Office, the San Mateo County District Attorney’s Office, and the San Bruno Police Department. This was a shared responsibility and we are deeply appreciative of their commitment to joining us in the pursuit of justice.
In addition, the Federal Bureau of Investigation and the U.S. Department of Transportation Office of Inspector General were relentless in their pursuit of facts.
Finally, the City of San Bruno is a strong community with deep civic pride. It has steadfastly supported this prosecution and advocated for reform. Today’s verdict is an important step toward achieving the lasting change that San Bruno so very much deserves.
“We are very pleased with the verdict and commend the jury for their hard work and thoughtful deliberation,” said California Attorney General Kamala D. Harris. “The California Department of Justice is proud to have worked with the U.S. Attorney’s Office and various federal and state partners to investigate and ultimately prosecute this important case.”
“We are grateful to the US Attorney’s Office for outstanding work with the support of San Bruno Police Department and our office,” said San Mateo County District Attorney Stephen M. Wagstaffe. “Justice was done today and PG&E was properly convicted of multiple felonies insuring justice for our community.”
“These guilty verdicts against PG&E are a sobering reminder to those entrusted with ensuring public safety that we have a solemn obligation to place that safety foremost in our actions,” said William Swallow, regional Special Agent-in-Charge, USDOT OIG. “We appreciate the committed efforts of everybody who helped achieve this result, including our law enforcement peers and prosecutorial colleagues. DOT OIG remains committed to working with them to prosecute to the fullest extent of the law those who endanger public safety. On behalf of the Inspector General, I offer our deepest condolences to the family and friends of those who perished in the San Bruno explosion.”
“The San Bruno Police Department is extremely proud of the complex investigative work that led to a conviction in this case,” said San Bruno Police Chief Ed Barberini. “We are very grateful to the United States Attorney’s Office and all of the partners that contributed to a successful conclusion to this case.”
The maximum statutory penalty for each count for a corporation is $500,000. Judge Henderson has scheduled post-trial motions to be heard on October 11, 2016.
The prosecution is the result of an investigation conducted by the U.S. Attorney’s Office for the Northern District of California, the California Attorney General’s Office, the San Mateo County District Attorney’s Office, the United States Department of Transportation Office of Inspector General, the FBI, the Pipeline and Hazardous Material Safety Administration, and the City of San Bruno Police Department.
Orange County Man Pleads Guilty to Owning Fake Law Firms that Falsely Promised to Help Struggling HomeownersRead the Press Release
SANTA ANA, California – A Brea man pleaded guilty this morning to federal charges related to his role as the owner and operator of a multi-million dollar fraudulent mortgage modification scheme that posed as a successful law firm to defraud struggling homeowners.
Bryan D’Antonio, 50, pleaded guilty to one count of conspiracy to commit mail and wire fraud for his role as owner and operator of Rodis Law Group (RLG) and America’s Law Group (ALG).
D’Antonio pleaded guilty before United States District Judge David O. Carter, who is scheduled to sentence the defendant on January 30, 2017.
“D’Antonio preyed on vulnerable victims – struggling homeowners,” said United States Attorney Eileen M. Decker. “Pretending to offer legal assistance to their victims, D’Antonio and his cohorts actually offered nothing but false hopes and empty promises. Now, he will be held accountable in federal court for the damage he has caused so many victims.”
D’Antonio admitted that, between October 2008 and June 2009, he participated in a scheme that induced homeowners to pay as much as $5,500 for the services of RLG and its successor entity, ALG. RLG and ALG advertised on radio stations across the country and urging struggling homeowners to call a toll-free number. The companies purportedly consisted of “a team of experienced attorneys” who were “highly skilled in negotiating lower interest rates and even lowering your principal balance.”
In fact, RLG and ALG were telemarketing operations that never had teams of experienced attorneys. During much of the scheme, one man – co-defendant Ronald Rodis – was the only attorney at RLG.
In a plea agreement filed in federal court, D’Antonio admitted that the RLG and ALG schemes fraudulently obtained approximately $9 million from more than 1,500 victims.
“At the height of the mortgage crisis, this defendant, a convicted felon who was prohibited from any business engaged in telemarketing, created two fake law firms that promised struggling homeowners assistance saving their homes and modifying their mortgages,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Despite the many promises, these were telemarketing sales operations that took homeowners’ money and provided no meaningful assistance.”
D’Antonio was previously convicted of mail and wire fraud and sentenced to four years in federal prison for his participation in a medical billing scheme. He was also subject to a permanent injunction prohibiting him from having any involvement with any business that engaged in telemarketing or misrepresented the services it would provide. In conjunction with his guilty plea today, D’Antonio admitted that he started RLG while he was still on supervised release from his prior conviction. In violation of D’Antonio’s permanent injunction, RLG and ALG sold their services through an extensive telemarketing operation and employees routinely misrepresented the services RLG and ALG would provide. The telemarketers did not disclose to homeowners that RLG and ALG were owned and operated by D’Antonio, who was prohibited from engaging in telemarketing
RLG and ALG telemarketers working for D’Antonio made numerous misrepresentations regarding the companies’ ability to negotiate loan modifications from the homeowners’ mortgage lenders. For example, the telemarketers stated that RLG and ALG had been in business for 11 years when in fact the company had only opened in October 2008. They falsely stated that RLG and ALG routinely obtained positive results for homeowners, including lower monthly payments, reductions in principal balance and lower interest rates. In fact, positive results were rarely achieved for any RLG or ALG clients. Telemarketers also falsely reiterated that homeowners would have a team of attorneys and real estate professionals assigned to their case.
D’Antonio’s co-defendants, Charles Wayne Farris and Ronald Rodis, both previously pleaded guilty to one count of conspiracy to commit mail and wire fraud.
This case was investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorney Joseph T. McNally and Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch.