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28 September 2016
New York City Resident Pleads Guilty to Using Sham Foreign Entity and Secret Foreign Accounts in Switzerland and Israel to Evade TaxesRead the Press Release
Used Secret Foreign Accounts to Hide over $7 Million in Funds and Evade Taxes
A New York City man pleaded guilty today to a criminal information charging him with tax evasion for tax years 2003 through 2005 and 2007 through 2010, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Robert L. Capers of the Eastern District of New York.
“Mr. Hager concealed over $7.3 million in undeclared foreign accounts in Switzerland and Israel and used a sham British Virgin Island entity in order to evade over $650,000 in U.S. taxes,” said Principal Deputy Assistant Attorney General Ciraolo. “As this case demonstrates, the Department and the Internal Revenue Service (IRS), together with our global partners, are successfully working on a daily basis to locate such undeclared accounts, identify those responsible and hold them accountable.”
According to information presented in court, between 1987 through 2011, Markus Hager, 68, utilized a series of undeclared foreign financial accounts to evade his individual income taxes by concealing assets and income from the IRS in those accounts. Between 1987 and 2008, Hager maintained several undeclared accounts at UBS, including two numbered accounts and an account held in the name of Contactus Partnership Associated S.A. (Contactus), a sham British Virgin Islands entity. By the close of 2004, the value of Hager’s undeclared accounts at UBS exceeded $7.3 million.
Hager closed the UBS accounts in 2008 and transferred the assets to a newly opened account at Clariden Leu, which he controlled and held in the name of Contactus. Shortly thereafter, Hager closed the Contactus account at Clariden Leu and transferred the assets to a newly opened account held in the name of the same sham entity at a different Swiss bank. Hager caused that Swiss bank to falsely record Hager’s Belgian cousin as the owner of the assets in the Contactus account. Approximately six months later, Hager closed the Contactus account at the Swiss bank and transferred the assets to an account at a bank in Israel that Hager caused to be opened in the name of a different Belgian cousin.
From 2005 to 2011, Hager also controlled an undeclared account at Bank Leumi in Israel, which he falsely held under the name of a relative who was not a U.S. person and who resided outside the United States. In February 2010, after obtaining an Israeli Identity Card, Hager opened an account in his own name at Bank Leumi in Israel but falsely reported that he lived in the United Kingdom and signed a document, under the penalties of perjury, on which he falsely claimed that he was not a U.S. citizen.
According to the information filed, Hager repatriated funds from his undeclared foreign financial accounts by having an attorney draft a sham loan agreement between himself and Contactus and wiring funds from some of his undeclared foreign financial accounts into his attorney’s escrow account.
According to the information filed, Hager filed false federal and New York State income tax returns on which he failed to report the income from his foreign financial accounts and failed to pay tax on that income. According to the information, Hager evaded approximately $652,580 in federal taxes for tax years 2003 through 2005 and 2007 through 2010. Hager also failed to report his ownership and control of his foreign financial accounts to the Department of the Treasury on a Report of Foreign Bank and Financial Account even though an accounting firm had informed Hager of his obligation to do so and advised him of the civil and criminal penalties he could suffer for the failure to do so.
“In pleading guilty today, Markus Hager became another example of an individual who attempted to conceal the true source of his money and was caught,” said Chief Richard Weber of IRS-Criminal Investigation (IRS-CI). “IRS-CI will continue to take every step necessary to ferret out those who attempt to avoid their reporting obligations under the law.”
Sentencing has been set for Jan. 4, 2017. Hager faces a statutory maximum sentence of five years in prison, as well as a term of supervised release and monetary penalties. According to the plea agreement, Hager agreed to pay restitution to the IRS.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Capers commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel Mark F. Daly and Assistant Chief Andrew Kameros of the Tax Division and Assistant U.S. Attorney Erik Paulsen of the Eastern District of New York, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New Indictment Charges West L.A. Pharmacy and its Owners with Drug Trafficking and Using Stolen Identities to Conceal the OffenseRead the Press Release
LOS ANGELES – A federal grand jury has issued a superseding indictment that charges a West Los Angeles pharmacy and its owners with operating a years-long narcotic drug trafficking, money laundering, and tax fraud conspiracy.
Under the new indictment, Brentwood residents Berry Kabov, 45, and his brother Dalibor Kabov (also known as “Dabo”), 33, are charged with operating Global Compounding Pharmacy for the purpose “of concealing and growing” their conspiracy to profit from black market sales of narcotics including oxycodone (best known by the brand name OxyContin), hydromorphone (also known as Dilaudid), and hydrocodone (commonly known as Vicodin or Norco).
The prior indictment, as further detailed in a search warrant unsealed on October 1, 2015, charged the Kabov brothers with using Los Angeles as a base to sell bulk shipments of prescription drugs – including oxycodone, which is commonly sold under the brand name OxyContin – to black market customers across the country. Investigators seized parcels containing thousands of hidden oxycodone pills that the Kabov brothers attempted to ship to black market customers in and around Columbus, Ohio, according to the search warrant affidavit, which states that the customers in turn made cash deposits into Kabov-controlled bank accounts or simply shipped bulk cash to the brothers in Southern California.
The new indictment charges that, to conceal those black market drug sales, the Kabovs would use the pharmacy to “generate records” falsely showing that prescriptions “had been filled in the names of identity theft victims, that is, persons who did not in fact receive or fill” the prescriptions. Similarly, the new indictment charges that, from June 2012 through December 2014, the pharmacy ordered nearly 100,000 pills of oxycodone, yet its reported prescription records only account for half of those pills, resulting in a shortfall of more than 45,000 pills of unaccounted oxycodone, along with parallel disparities for the pharmacy’s orders of other narcotic drugs.
“These defendants are charged with using their pharmacy to vastly increase the volume of their drug dealing and multiple bank accounts to hide their illicit proceeds from federal authorities,” said United States Attorney Eileen M. Decker. “Prescription drug abuse is an epidemic in this country that causes harm and in some cases death, and these defendants’ use of their pharmacy in the scheme increased significantly the amount of these types of drugs on the street, posing a serious danger to the community.”
The indictment also charges the Kabovs with laundering more than $1 million in unlawful cash proceeds, which the Kabov brothers attempted to conceal in structured cash deposits into multiple bank accounts that they controlled. New tax counts added to the indictment also charge that the Kabovs falsely underreported this income to the IRS in tax years 2012 through 2014.
“Law enforcement agencies throughout the country are seizing record amounts of heroin and other opioids and first responders are witnessing the devastating effects of these substances in numbing proportions,” said DEA Special Agent in Charge John S. Comer. “DEA will continue to target the illicit trafficking organizations responsible for these detriments, but we’re also committed to educating the public about the dangers of drug misuse and reducing demand – awareness is a crucial element in combatting this epidemic.”
In addition to the charges related to oxycodone and other narcotic drugs, the indictment alleges that the brothers illegally imported anabolic steroids purchased from a wholesale drug distributor located in Hubei, China. The indictment details how the brothers used the pharmacy to illegally order bulk quantities of testosterone, oxandrolone, and nandrolone.
If convicted of the charges in the indictment, Berry Kabov faces a 479-year maximum prison term and Dalibor Kabov faces a 485-year maximum prison term.
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.
The investigation into the Kabov brothers and Global Compounding is being conducted by the Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, the Los Angeles Police Department, and the California Board of Pharmacy.
The case is being prosecuted by Assistant United States Attorneys Benjamin Barron and Ryan Weinstein of the Organized Crime Drug Enforcement Task Force.
Navajo Man from Fruitland Pleads Guilty to Federal Drug Trafficking ChargeRead the Press Release
ALBUQUERQUE – George Begay, 47, an enrolled member of the Navajo Nation who resides in Fruitland, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge. The guilty plea was entered without the benefit of a plea agreement.
Begay was arrested on May 11, 2016, on an indictment charging him with distributing methamphetamine on April 29, 2014, in San Juan County, N.M. During today’s proceedings, Begay pled guilty to the indictment.
At sentencing, Begay faces a maximum penalty of 20 years in federal prison. Begay remains in custody pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of Homeland Security Investigations and the HIDTA Region II Narcotics Task Force. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting the case.
The HIDTA Region II Narcotics Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department, Aztec Police Department and HSI Albuquerque, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Muskogee Man Pleads Guilty to Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that TIMOTHY RAY CANNON, age 39, of Muskogee, Oklahoma, pled guilty to FAILURE TO REGISTER AS SEX OFFENDER, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3), punishable by not more than 10 years imprisonment, up to a $250,000 fine or both.
The Indictment alleged that on or about September, 2014, until on or about April 13, 2016, in the Eastern District of Oklahoma, and elsewhere, the defendant, TIMOTHY RAY CANNON, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received felony convictions from the State of California, in Kerns County, on or about July 20, 2000, for Sex with a Minor, and on or about December 10, 2010, for the offense of Sexual Battery: Touch for Sexual Arousal, traveled in interstate commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
Charges arose from an investigation by the Muskogee Police Department and the United States Marshals Service.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
Assistant United States Attorney Edward Snow represented the United States.
Mosher Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mosher, South Dakota, man convicted of two counts of Abusive Sexual Contact was sentenced on September 26, 2016, by U.S. District Court Judge Roberto A. Lange.
Tyrone Steven Andrews, age 24, was sentenced to 30 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Andrews was indicted by a federal grand jury on October 14, 2015. He was convicted on July 8, 2016, following a two-day jury trial in Pierre, South Dakota.
The charges stem from an incident that occurred on February 25, 2013, wherein Andrews groped a 15-year-old girl who was at a sleepover at a home in Rosebud, South Dakota. Andrews entered the bedroom where the girl was sleeping and touched her breasts under her clothes while she was asleep. The girl awoke, realized what was happening, and tried to get the attention of her friend who was sleeping next to her in the bed. Andrews then began to rub the girl’s inner thigh and kissed her neck. At that point, the girl was able to awaken her friend and Andrews ran out of the room.
Andrews was acquitted of a separate charge of Aggravated Sexual Abuse. That charge stemmed from an incident involving an adult female that occurred at a home in Okreek, South Dakota, in late May or early June of 2015.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Andrews was immediately remanded to the custody of the U.S. Marshals Service.
Monmouth County, New Jersey, Sales Representative Sentenced to One Year in Prison for Paying $25,000 in Cash Bribes for Patient ReferralsRead the Press Release
CAMDEN, N.J. – The owner of a marketing and sales company who admitted paying thousands of dollars in cash bribes to a New Jersey physician in return for patient referrals to his clients was sentenced today to 12 months and one day in prison, U.S. Attorney Paul J. Fishman announced.
Daniel Gilman, 63, of Ocean Grove, New Jersey, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of conspiracy to pay kickbacks. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Gilman was a principle of Promed Practice Consultants LLC (Promed), a company specializing in marketing and sales services for testing laboratories. As identified in the information, “Company 1,” a blood testing laboratory, and “Company 2,” a DNA testing laboratory, were two of Promed’s clients. Gilman received monthly commission checks from Company 1 and Company 2 for referrals, which were equal to 10 percent of the reimbursements paid to the companies by various payers, including Medicare.
From March 2014 through May 2015, Gilman paid a physician, Vincent Destasio, 54, of Toms River, New Jersey, thousands of dollars in return for patient lab referrals to Company 1 and Company 2. After receiving the commission checks from Company 1 and Company 2, Gilman would identify Destasio’s patient referrals to those companies and pay him corresponding kickbacks in cash.
Neither Company 1 nor Company 2 had any knowledge of or involvement in the kickback scheme.
In addition to the prison term, Judge Rodriguez sentenced Gilman to two years of supervised release, fined him $1,000, and entered a forfeiture judgment of $25,000. Destasio pleaded guilty on June 23, 2016, to an indictment charging him with one count of conspiracy to accept cash bribes and is scheduled to be sentenced Sept. 29, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Camden.
U.S. Attorney Fishman reorganized the health care fraud practice shortly after taking office, creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.3 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Vincent C. Scoca Esq., Bloomfield, New Jersey
Miller Man Sentenced for Attempted Sex TraffickingRead the Press Release
United States Attorney Randolph J. Seiler announced that a Miller, South Dakota, man convicted of Attempted Trafficking with Respect to Involuntary Servitude and Forced Labor was sentenced on September 26, 2016, by U.S. District Judge Roberto A. Lange.
Joseph Raleigh, age 34, was sentenced to 46 months in custody, 3 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Raleigh was indicted by a federal grand jury on October 20, 2015, for Attempted Commercial Sex Trafficking of Children and Attempted Enticement of a Minor Using the Internet. He pled guilty to Attempted Trafficking with Respect to Involuntary Servitude and Forced Labor on July 5, 2016.
The conviction arose from an undercover operation conducted in the Pierre, South Dakota, area by the Internet Crimes Against Children Task Force (ICAC). Raleigh responded to an advertisement of a minor available for sexual activities in exchange for money posted on Craigslist on October 16, 2015. Through email conversations with the undercover ICAC agents, Raleigh negotiated a price and arranged to have a sexual encounter with a 15-year-old girl in Blunt, South Dakota, on October 16, 2015. Raleigh then met with an undercover agent, who was posing as someone who could provide the girl for sex. The negotiated price was $400, which Raleigh had in his possession.
This case was investigated by the South Dakota Division of Criminal Investigation, the United States Marshals Service, the South Dakota ICAC Task Force, and the Pierre Police Department. Assistant U.S. Attorneys Kirk Albertson and Tim Maher prosecuted the case.
Raleigh was immediately turned over to the custody of the U.S. Marshals Service.
McAllen Man Convicted of Downloading Hundreds of Child Pornography Videos and ImagesRead the Press Release
McALLEN, Texas – A 27-year old resident of McAllen has entered a guilty plea to one count of receipt of child pornography, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
Jorge Trevino-Blanco came to the attention of law enforcement following an investigation which began on Oct. 16, 2015, into persons using the Internet to traffic in child pornography. A special agent with HSI was able to locate and identify a computer as offering to participate in the receipt of child pornography movies and images through the peer-to-peer network on the Internet. Through the investigation, it was determined that the computer was located in a residence in McAllen.
On July 8, 2016, authorities executed a federal search warrant at that residence, during which time they seized two laptop computers and an external hard drive. A forensic examination on the devices revealed a total of 123 videos and 282 images of child pornography involving clearly young children engaged in sexually explicit conduct. These videos and images included children under the age of 12 engaged in sadistic conduct and acts of violence. Some of the videos and images are of known victims as identified through the National Center for Missing and Exploited Children.
Trevino-Blanco admitted he downloaded child pornography from the Internet, thereby receiving the child pornography found on his computers and external hard drive. He further admitted he had been doing so for approximately four years.
U.S. District Judge Micaela Alvarez, who accepted the guilty plea today, has set sentencing for Dec. 8, 2016. At that time, Trevino-Blanco faces a minimum of five and up to 20 years in federal prison and a possible $250,000 fine. He will remain in custody pending that hearing.
HSI conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Alex Benavides, 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."
Massachusetts State Representative Visits INTERPOL WashingtonRead the Press Release
On September 27, 2016, Massachusetts State Representative Harold P. Naughton, Jr., (D-MA), and Chairman of the Joint Committee on Public Safety and Homeland Security, met with INTERPOL Washington leadership to discuss matters of mutual interest.
The visit included an overview of INTERPOL Washington operations as well as a discussion of how Massachusetts’ law enforcement agencies can benefit from federation. This process enables investigators to query both domestic and INTERPOL indices in a single search transaction, and to make real-time, concurrent determination of the domestic and/or international criminal or terrorist threat posed by persons of investigative interest. Federated searches can be conducted from both fixed and mobile platforms, including vehicle mounted and hand-held devices. Currently, 12 states and the District of Columbia have federated their search queries.
The decision to federate rests with individual states. U.S. law enforcement agencies can gain more information about federation by contacting INTERPOL Washington’s Office of the Chief Information Officer at 202-616-9000 or on-line at Nlets at http://www.nlets.org .
Louisville Man Pleads Guilty to Participating in Kickback Scheme with Former Secretary of Kentucky’s Personnel CabinetRead the Press Release
LEXINGTON, Ky — Lawrence J. O’Bryan, a business owner from Louisville, Ky., admitted in federal court today that he participated in a kickback scheme involving the former Secretary of the Kentucky Personnel Cabinet, Timothy Longmeyer.
O’Bryan, 57, pleaded guilty to three counts charging bribery of a public official, before U.S. District Judge Karen Caldwell. O’Bryan waived his right to be indicted by a grand jury and pleaded guilty to the charges brought by Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky.’
O’Bryan admitted that he worked with Longmeyer to formulate the kickback scheme beginning in 2009. Longmeyer agreed to use his position to persuade Humana, Inc., to hire MC Squared Consulting, LLC for consulting services related to the Kentucky Employees’ Health Plan, which Longmeyer oversaw. The owner of MC Squared agreed to pay O’Bryan approximately half of MC Squared’s proceeds from its contracts with Humana. Upon receiving payments from MC Squared and withholding the portions he believed were payable as taxes, O’Bryan would then kick back fifty percent of the remaining funds to Longmeyer.
Between October 2011 and March 2014, O’Bryan accepted $642,201.50 in payments from the owner of MC Squared. O’Bryan withheld a portion of each such payment and then used various methods to pay Longmeyer fifty percent of the remaining funds. O’Bryan’s role as the intermediary for money paid by MC Squared to Longmeyer ended in approximately March 2014. O’Bryan owned Proactive Media, a consulting business in Louisville.
United States Attorney Harvey and Howard Marshall, Special Agent in Charge, Federal Bureau of Investigation, jointly announced the guilty plea. The U.S. Attorney’s Office was represented by Assistant U.S. Attorneys Andrew T. Boone and Kathryn M. Anderson.
O’Bryan is scheduled to be sentenced on January 19, 2017. He faces up to 10 years in prison and a maximum fine of $250,000 for each count. However, any sentence following a conviction would be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statutes.
Lehigh County Couple Sentenced for Scheme to Defraud NASARead the Press Release
A federal judge today sentenced Yujie Ding to a year and a day in prison for his role in defrauding NASA’s Small Business Innovation Research (SBIR) Program. U.S. District Court Judge Harvey Bartle III also ordered Ding to pay a fine of $3,000 and restitution of $72,000. Last week, Ding's co-defendant and wife, Yuliya Zotova, was sentenced to 3 months in prison, along with a fine and restitution.
In August 2009 and July 2010, Ding and Zotova submitted proposals to NASA, seeking funding for scientific research. The defendants’ proposals claimed they would conduct the research at their business, ArkLight, and would subcontract some of the work to Lehigh University, where Ding was employed as a professor. Instead, the defendants used ArkLight as a front to funnel federal grant money to themselves for research performed by students and others working under Ding’s supervision at his university lab. The defendants sent invoices to NASA, via interstate electronic transmissions, for research in which the jury found that ArkLight had not participated.
The case was investigated by the National Aeronautics and Space Administration's Office of Inspector General, the Defense Criminal Investigative Service, and the United States Air Force Office of Special Investigations. It was prosecuted by Assistant United States Attorneys Elizabeth F. Abrams and Gregory B. David.
Lee's Summit Woman Sentenced for Oxycodone ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., woman was sentenced in federal court today for her role in a conspiracy that used hundreds of fraudulent prescriptions to obtain tens of thousands of oxycodone pills.
Amy M. Alley, 31, of Lee’s Summit, was sentenced by U.S. District Judge Howard F. Sachs to seven years in federal prison without parole.
On May 18, 2016, Alley pleaded guilty to participating in a conspiracy to distribute oxycodone that began in January 2010 and lasted until she was indicted on July 28, 2015.
According to court documents, Alley was involved in a large scale, wide ranging drug conspiracy to obtain oxycodone by way of fraud, then use or sell those fraudulently-obtained pills to further support their drug habits. Conspirators used stolen prescription pads, stolen identifications and fraudulently created prescriptions to obtain the oxycodone from area pharmacies. A number of fraud “script” ledgers were recovered in this case that showed Alley and her co-conspirators had fraudulently passed and attempted to pass hundreds of fraud prescriptions and obtained approximately 30,155 pills before their arrests.
Alley’s twin sister and co-defendant Amanda F. Alley, 31, of Lee’s Summit, pleaded guilty to her role in the conspiracy on June 3, 2016, and awaits sentencing. Co-defendant Heather J. Martinez, 28, of Kansas City, Mo., pleaded guilty to her role in the conspiracy and was sentenced to seven years in federal prison without parole.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Independence, Mo., Police Department.
Justice Department Settles Housing Discrimination Lawsuit Against Pennsylvania LandlordRead the Press Release
WASHINGTON – The Justice Department announced today that a Johnstown, Pennsylvania, landlord has agreed to pay $30,000 to resolve allegations that he discriminated against families with children in violation of the Fair Housing Act.
The department’s lawsuit was filed in the U.S. District Court for the Western District of Pennsylvania and alleged that Robert Kormanik, the rental manager for Kinamrok Apartments, and Kinamrok Inc., the corporate entity that owns the complex, discriminated against families with children by prohibiting them from renting one- and two-bedroom units. The allegations were based on evidence generated by the department’s Fair Housing Testing Unit, in which individuals pose as prospective renters to gather information about possible discriminatory practices. The department’s testing revealed that Kormanik told testers children were not allowed in one-bedroom units. He also refused to inform testers about available two-bedroom units until the testers assured him that no children would reside there.
“Although it may appear in discrete forms, housing discrimination against families with children remains a persistent problem,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the department’s Civil Rights Division. “Around the country, the Justice Department will continue to aggressively enforce the Fair Housing Act, as we did here in Johnstown, to ensure that families with children can obtain housing without facing unlawful, discriminatory barriers.”
“We are dedicated to ensuring that families with children are not discriminated against when seeking housing here in Western Pennsylvania,” said U.S. Attorney David J. Hickton of the Western District of Pennsylvania. “Today’s settlement demonstrates our commitment to making sure that owners of rental properties understand their obligations under the Fair Housing Act, and follow the law.”
Under the terms of the consent order, which still must be approved by the court, Kormanik and Kinamrok will establish a settlement fund of $20,000 to compensate victims of their alleged discriminatory practices. The defendants will also pay a $10,000 civil penalty to the United States. The agreement prohibits the defendants from engaging in further acts of discrimination and requires them to implement a non-discrimination policy and submit reports to the United States for three years. Kormanik and any other employee involved in the management of, or the rental of units at, Kinamrok Apartments must also receive training on the Fair Housing Act.
Individuals who believe they may have been discriminated against at Kinamrok Apartments because they sought to reside there with children should contact the department toll-free at 1-800-896-7743, mailbox 995, or e-mail [email protected]. Kinamrok Apartments are located at 400 Luray Avenue, 1001 Tener Street, 1010 Tener Street and 105 Kinamrok Avenue in Johnstown.
The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact the Department of Housing and Urban Development at 1-800-669-9777.
Justice Department Settles Housing Discrimination Lawsuit Against Pennsylvania LandlordRead the Press Release
The Justice Department announced today that a Johnstown, Pennsylvania, landlord has agreed to pay $30,000 to resolve allegations that he discriminated against families with children in violation of the Fair Housing Act.
The department’s lawsuit was filed in the U.S. District Court for the Western District of Pennsylvania and alleged that Robert Kormanik, the rental manager for Kinamrok Apartments, and Kinamrok Inc., the corporate entity that owns the complex, discriminated against families with children by prohibiting them from renting one- and two-bedroom units. The allegations were based on evidence generated by the department’s Fair Housing Testing Unit, in which individuals pose as prospective renters to gather information about possible discriminatory practices. The department’s testing revealed that Kormanik told testers children were not allowed in one-bedroom units. He also refused to inform testers about available two-bedroom units until the testers assured him that no children would reside there.
“Although it may appear in discrete forms, housing discrimination against families with children remains a persistent problem,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the department’s Civil Rights Division. “Around the country, the Justice Department will continue to aggressively enforce the Fair Housing Act, as we did here in Johnstown, to ensure that families with children can obtain housing without facing unlawful, discriminatory barriers.”
“We are dedicated to ensuring that families with children are not discriminated against when seeking housing here in Western Pennsylvania,” said U.S. Attorney David J. Hickton of the Western District of Pennsylvania. “Today’s settlement demonstrates our commitment to making sure that owners of rental properties understand their obligations under the Fair Housing Act, and follow the law.”
Under the terms of the consent order, which still must be approved by the court, Kormanik and Kinamrok will establish a settlement fund of $20,000 to compensate victims of their alleged discriminatory practices. The defendants will also pay a $10,000 civil penalty to the United States. The agreement prohibits the defendants from engaging in further acts of discrimination and requires them to implement a non-discrimination policy and submit reports to the United States for three years. Kormanik and any other employee involved in the management of, or the rental of units at, Kinamrok Apartments must also receive training on the Fair Housing Act.
Individuals who believe they may have been discriminated against at Kinamrok Apartments because they sought to reside there with children should contact the department toll-free at 1-800-896-7743, mailbox 995, or e-mail [email protected]. Kinamrok Apartments are located at 400 Luray Avenue, 1001 Tener Street, 1010 Tener Street and 105 Kinamrok Avenue in Johnstown.
The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact the Department of Housing and Urban Development at 1-800-669-9777.
Kormanik and Kinamrok Complaint Kormanik and Kinamrok Consent DecreeJustice Department Reaches Settlement with Charter Bank to Resolve Allegations of Lending DiscriminationRead the Press Release
Settlement Provides Over $165,000 in Compensation to Hispanic Borrowers Who Obtained Consumer Loans in Texas
The Justice Department announced today that Charter Bank of Corpus Christi, Texas, will maintain uniform pricing policies and pay more than $165,000 as part of a settlement to resolve allegations that it engaged in a pattern or practice of discrimination on the basis of national origin.
The settlement, which is subject to court approval, was filed today along with the department’s complaint in the U.S. District Court for the Southern District of Texas. The complaint alleges that Charter violated the Equal Credit Opportunity Act (ECOA) between 2009 and 2014 by charging higher interest rates to Hispanic borrowers than to similarly situated non-Hispanic borrowers on vehicle-secured consumer loans. The discrimination affected approximately 500 loans made through the bank’s branches. A vehicle-secured consumer loan allows a customer to borrow from the bank by tapping the equity in a car the customer already owns. The complaint alleges that the discrimination occurred because Charter gave its employees discretion to adjust interest rates upward or downward by approximately three percentage points, which was not based on the borrower’s credit risk.
“Lending practices that discriminate against customers because of their national origin violate the law and threaten the foundation of a free and fair economy,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Working families rely on access to credit to borrow money so they can meet the demands of their daily lives. This settlement will ensure Charter Bank complies with the law, provides relief to consumers and safeguards against discrimination going forward.”
“Fair lending by banks, regardless of national origin, is guaranteed by law,” said U.S. Attorney Kenneth Magidson of the Southern District of Texas. “This case involving Charter Bank shows our commitment to ensure its reality.”
The lawsuit originated from a 2014 referral by the Federal Deposit Insurance Corporation (FDIC) to the department’s Civil Rights Division. Charter is regulated by the FDIC.
Under the settlement, Charter will pay $165,820 to Hispanic victims of discrimination, monitor its loans for potential disparities based on national origin and provide equal credit opportunity training to its employees. Prior to the settlement, Charter revised its loan pricing policies to include objective, non-discretionary and non-discriminatory standards for determining interest rates for consumer loans. This settlement requires Charter to maintain the revised policies for at least four years.
The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Since 2010, the Civil Rights Division has provided over $1.5 billion in monetary relief for individual borrowers and impacted communities through its enforcement of the Fair Housing Act, ECOA and Servicemember’s Civil Relief Act. The Attorney General’s annual reports to Congress on ECOA enforcement highlight the department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications/.
The Civil Rights Division and the U.S. Attorney’s Office of the Southern District of Texas are members of the Financial Fraud Enforcement Task Force, established by President Obama to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information on the task force, visit www.StopFraud.gov.
Additional information about fair lending enforcement by the Justice Department can be found on the department’s website at www.justice.gov/fairhousing.
Charter Bank Complaint Charter Bank Consent OrderJustice Department Files Discrimination Lawsuit Against Owners and Operators of Houston BarRead the Press Release
The Justice Department filed a lawsuit today against the owners and operators of 360 Midtown, a bar and nightclub located in Houston, alleging that the defendants discriminated against African-American, Hispanic and Asian-American patrons in violation of Title II of the Civil Rights Act of 1964.
The lawsuit, filed today in the U.S. District Court for the Southern District of Texas, alleges that Ayman Jarrah and his company Land Guardian Inc. discriminated against African-American, Hispanic and Asian-American patrons at 360 Midtown, which formerly operated as Gaslamp, by charging such persons a cover charge to enter the establishment, while not imposing such a charge on similarly situated white persons, and denying such persons the right to enter the establishment while admitting similarly situated white patrons.
“When going out to eat at a restaurant or relaxing at bar, no one should ever suffer discrimination because of the color of their skin,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously protect the rights of all people to go about their daily lives free from discrimination at bars, restaurants and other public accommodations around the country.”
“A bar’s cover charge based on skin color is prohibited by law,” said U.S. Attorney Kenneth Magidson of the Southern District of Texas. “All places of public accommodation should treat their customers equally. If not, justice will be sought in our courts of law.”
Title II of the Civil Rights Act of 1964 prohibits discrimination on the basis of race, color, religion or national origin in places of public accommodation, such as restaurants, hotels, movie theaters, nightclubs, stadiums and other places of exhibition or entertainment. Under Title II, the Civil Rights Division can obtain injunctive relief that changes policies and practices to remedy customer discrimination. Title II does not authorize the division to obtain monetary damages for customers who are victims of discrimination.
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Persons who believe they have experienced or witnessed unlawful discrimination in public accommodations may contact the Housing and Civil Enforcement Section at (202) 514-4713.
Gaslamp ComplaintJustice Department Awards nearly a Half-Million Dollars to DeKalb Police Task Force in Project Safe Neighborhoods ProgramRead the Press Release
ATLANTA – The Office of Justice Programs’ Bureau of Justice Assistance awarded grants totaling $499,899 to create safer neighborhoods through a reduced in gang violence and gun crime. The awards are funded under the 2016 Violent Gang and Gun Crime Reduction (Project Safe Neighborhoods) Program. The goal of PSN is to create safer neighborhoods by focusing on in gang violence and gun crime.
“Gang violence and gun crime are two of the most formidable obstacles we face in ensuring that every American lives in safe and secure communities,” said U.S. Attorney General Loretta E. Lynch. “These vital grants give jurisdictions the resources they need to develop comprehensive, collaborative responses to the most serious and destructive crimes. By combining more effective enforcement with closer cooperation, better data and expanded prevention initiatives, Project Safe Neighborhoods helps communities make meaningful strides towards ending violence, promoting peace, and restoring hope.”
“The PSN grant will enable the DeKalb Task Force to implement a multi-faceted approach to reduce gang violence and gun-related crimes,” said U.S. Attorney John Horn. “The Task Force’s collaborative approach, which relies on the expertise of our federal, state and local law enforcement partners as well as key community leaders, will help communities that struggle with gang and gun violence to implement meaningful and proven anti-gang and anti-violence measures.”
The program’s effectiveness is based on a cooperative approach and unified strategies led by the U.S. Attorney, a collaborative PSN task force of federal, state, and local law enforcement, community members, and other key partners. The partners work to implement gang crime and gun violence enforcement, intervention, and prevention initiatives, using data and research with a local research partner.
The U.S. Attorney’s Office DeKalb PSN Task Force will implement a highly refined and proven strategy to mitigate gun and gang violence within three target areas in DeKalb County including Brookhaven, Chamblee, and the South DeKalb County area. The grant funds also will help the task force agencies exchange intelligence information with other agencies in the Atlanta area.
The 2016 DeKalb PSN Task Force is comprised of the DeKalb County, Brookhaven, and the Chamblee Police Departments. The Task Force will develop and enhance initiatives focusing on crime suppression, education, and prevention. The law enforcement partners will form a Gang Task Force that will work jointly in each of the three jurisdictions. In conjunction with the DeKalb County District Attorney’s Office, training will be conducted for officers on gang recognition and on best practices for compiling evidence for successful gang prosecutions.
Additionally, Rehoboth Baptist Church in Tucker, Georgia, will provide training on a variety of topics to youth in the target areas, and will conduct community outreach to build strong and lasting relationships within the communities. The outreach programs are designed to closely implement the recommendations of the President’s 21st Century Task Force on Policing, and specifically the Implementation Guide issued by the Department of Justice last year.
The efforts of the PSN Task Force will be guided by data collected by members of the task force, and analyses of that data conducted by Applied Research Services, Inc., a national consulting firm based in Atlanta that has extensive experience and a proven track record with PSN initiatives.
“We're excited and honored to participate with all partners involved in this grant to assist us in the reduction of violent crime and making our areas safer for our residents and businesses,” said Gary Yandura, Chief of Police, City of Brookhaven, Georgia.
“We look forward to working with our partners in this initiative to make our communities safer,” said Donny Williams, Chief of Police, Chamblee, Georgia, Police Department.
“We are grateful for the U.S. Attorney's Office for the Northern District of Georgia and their desire to improve our neighborhoods through local partnerships,” said Dr. Troy Bush, Senior Pastor, Rehoboth Baptist Church. “This grant and the partnership of federal, state, and local law enforcement along with community partners invests resources in one of the greatest law enforcement needs we have—crime prevention. This initiative is a strategic and timely effort that will make our neighborhoods and communities safer.”
Each applicant addressed the required PSN design features in its application: (1) Partnerships; (2) Strategic Planning, Crime Analysis, and Research Integration; (3) Training; (4) Outreach; and (5) Accountability and Data-Driven efforts.
In addition to the three participating police departments, the DeKalb County District Attorney’s office and Peace Baptist Church in Decatur, Georgia, made invaluable contributions to the grant application.
The Office of Justice Programs (OJP) provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six bureaus and offices: The Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime, and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Jury Convicts Northern Ohio Felon of Illegally Possessing a FirearmRead the Press Release
COLUMBUS, Ohio – A U.S. District Court jury convicted Richard Jerel Doyle, 32, of Brooklyn, Ohio of illegally possessing a firearm when Columbus Police arrested him in March 2016.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Brad Earman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Columbus Police Chief Kimberley Jacobs announced the verdict returned September 27 following a two-day trial before Chief U.S. District Judge Edmund A. Sargus Jr.
A Columbus Police officer arrested Doyle on March 18, 2016 after a victim called police and said that Doyle drove up next to her while she was walking along Cleveland Avenue. The victim told officers that Doyle assaulted her with a loaded firearm and that she was able to run away from him. She telephoned 911 and reported the incident. An officer met with the victim and asked for a description of the man. According to testimony, the victim looked up, saw Doyle in his 1994 Cadillac Deville and said “That’s him! Oh my God.”
Doyle drove away and officers followed him before stopping him without incident along I-71. They searched his car and found a .380 caliber handgun and ammunition.
On July 27, 2016, a grand jury indicted Doyle, who had been convicted in Cuyahoga County in 2010 on charges of drug trafficking and drug possession and in 2005 on charges of sexual battery and robbery. Federal law prohibits people convicted of felonies from owning, possessing or controlling firearms. The same restrictions apply to ammunition.
Possession of a firearm by a convicted felon is punishable by up to ten years in prison. Judge Sargus will schedule a sentencing hearing following a pre-sentence investigation by the court. Doyle has been in custody since his arrest.
Acting U.S. Attorney Glassman commended the investigation by agencies on the ATF task force, as well as Assistant U.S. Attorneys Salvador A. Dominguez and Jonathan J.C. Grey who represented the United States in this case.
Justice Department Reaches Settlement with Charter Bank to Resolve Allegations of Lending DiscriminationRead the Press Release
WASHINGTON – The Justice Department announced today that Charter Bank of Corpus Christi, Texas, will maintain uniform pricing policies and pay more than $165,000 as part of a settlement to resolve allegations that it engaged in a pattern or practice of discrimination on the basis of national origin.
The settlement, which is subject to court approval, was filed today along with the department’s complaint in the U.S. District Court for the Southern District of Texas. The complaint alleges that Charter violated the Equal Credit Opportunity Act (ECOA) between 2009 and 2014 by charging higher interest rates to Hispanic borrowers than to similarly situated non-Hispanic borrowers on vehicle-secured consumer loans. The discrimination affected approximately 500 loans made through the bank’s branches. A vehicle-secured consumer loan allows a customer to borrow from the bank by tapping the equity in a car the customer already owns. The complaint alleges that the discrimination occurred because Charter gave its employees discretion to adjust interest rates upward or downward by approximately three percentage points, which was not based on the borrower’s credit risk.
“Lending practices that discriminate against customers because of their national origin violate the law and threaten the foundation of a free and fair economy,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Working families rely on access to credit to borrow money so they can meet the demands of their daily lives. This settlement will ensure Charter Bank complies with the law, provides relief to consumers and safeguards against discrimination going forward.”
“Fair lending by banks, regardless of national origin, is guaranteed by law,” said U.S. Attorney Kenneth Magidson of the Southern District of Texas. “This case involving Charter Bank shows our commitment to ensure its reality.”
The lawsuit originated from a 2014 referral by the Federal Deposit Insurance Corporation (FDIC) to the department’s Civil Rights Division. Charter is regulated by the FDIC.
Under the settlement, Charter will pay $165,820 to Hispanic victims of discrimination, monitor its loans for potential disparities based on national origin and provide equal credit opportunity training to its employees. Prior to the settlement, Charter revised its loan pricing policies to include objective, non-discretionary and non-discriminatory standards for determining interest rates for consumer loans. This settlement requires Charter to maintain the revised policies for at least four years.
The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Since 2010, the Civil Rights Division has provided over $1.5 billion in monetary relief for individual borrowers and impacted communities through its enforcement of the Fair Housing Act, ECOA and Servicemember’s Civil Relief Act. The Attorney General’s annual reports to Congress on ECOA enforcement highlight the department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications/.
The Civil Rights Division and the U.S. Attorney’s Office of the Southern District of Texas are members of the Financial Fraud Enforcement Task Force, established by President Obama to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information on the task force, visit www.StopFraud.gov.
Additional information about fair lending enforcement by the Justice Department can be found on the department’s website at www.justice.gov/fairhousing.
Justice Department Files Discrimination Lawsuit Against Owners and Operators of Houston BarRead the Press Release
WASHINGTON – The Justice Department filed a lawsuit today against the owners and operators of 360 Midtown, a bar and nightclub located in Houston, alleging that the defendants discriminated against African-American, Hispanic and Asian-American patrons in violation of Title II of the Civil Rights Act of 1964.
The lawsuit, filed today in the U.S. District Court for the Southern District of Texas, alleges that Ayman Jarrah and his company Land Guardian Inc. discriminated against African-American, Hispanic and Asian-American patrons at 360 Midtown, which formerly operated as Gaslamp, by charging such persons a cover charge to enter the establishment, while not imposing such a charge on similarly situated white persons, and denying such persons the right to enter the establishment while admitting similarly situated white patrons.
“When going out to eat at a restaurant or relaxing at bar, no one should ever suffer discrimination because of the color of their skin,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously protect the rights of all people to go about their daily lives free from discrimination at bars, restaurants and other public accommodations around the country.”
“A bar’s cover charge based on skin color is prohibited by law,” said U.S. Attorney Kenneth Magidson of the Southern District of Texas. “All places of public accommodation should treat their customers equally. If not, justice will be sought in our courts of law.”
Title II of the Civil Rights Act of 1964 prohibits discrimination on the basis of race, color, religion or national origin in places of public accommodation, such as restaurants, hotels, movie theaters, nightclubs, stadiums and other places of exhibition or entertainment. Under Title II, the Civil Rights Division can obtain injunctive relief that changes policies and practices to remedy customer discrimination. Title II does not authorize the division to obtain monetary damages for customers who are victims of discrimination.
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Persons who believe they have experienced or witnessed unlawful discrimination in public accommodations may contact the Housing and Civil Enforcement Section at (202) 514-4713.
Interstate Stalker Sentenced to Federal PrisonRead the Press Release
In San Antonio today, 57-year-old Gabriel Robert Caggiano of Los Angeles, CA, was sentenced to 41 months in federal prison for stalking a former employer and his wife who reside in San Antonio announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, United States District Judge Xavier Rodriguez also ordered that Caggiano be placed on supervised release for a period of three years after completing his prison term.
On March 31, 2016, Caggiano pleaded guilty to one count of stalking. According to court records, in 2008, Caggiano was employed at a television station in Corpus Christi, TX. Caggiano was ultimately terminated from his employment at the station. By pleading guilty, Caggiano admitted that from March 15, 2015 until August 26, 2015, he repeatedly used voicemails, text messaging, social media and the U.S. Mail to retaliate against his victims. In those communications, Caggiano threatened physical violence against his victims as well as to embarrass, humiliate and cause substantial emotional distress to his victims by destroying the reputation of his former employer and his wife.
Caggiano has remained in custody since November 2015.
This investigation was conducted by the FBI in San Antonio and Los Angeles. Assistant United States Attorney Sarah Wannarka prosecuted this case on behalf of the Government.
Indictment: Attack by Hospital Worker Injured Two Women at Fort LeavenworthRead the Press Release
KANSAS CITY, KAN. – A federal grand jury Wednesday indicted a civilian hospital employee on charges of attacking and injuring two women, one who he set on fire and the other who he attacked when she tried to help the victim, Acting U.S. Attorney Tom Beall said.
Clifford Currie, 54, Leavenworth, Kan., is charged with one count of assault with intent to commit murder and one count of assault with a dangerous weapon.
A criminal complaint filed Sept. 8 in the case alleged that Currie threw gasoline or some other inflammable liquid on his supervisor, Katie Ann Blanchard, lit her on fire and assaulted her with a straight edge razor and scissors. Co-worker Deanne Killian came to the Blanchard’s aid when she heard screams and saw Blanchard on fire from the chest up. Killian was injured trying to put out the fire and stop Currie from continuing the assault on the Blanchard.
Currie was subdued by hospital employees and then arrested.
If convicted, he faces a penalty of 20 years in federal prison and a fine up to $250,000 on the attempted murder count, and up to 10 years and a fine up to $250,000 on the other count. The FBI and the U.S. Army Military Police investigated. Assistant U.S. Attorney Kim Flannigan is prosecuting.
Other Indictments
Juan R. Torres-Arambula, 26, Louisburg, Kan., is charged with one count of failing to appear at the Correctional Institution Great Plains in Hinton, Okla., to serve a 16-month prison sentence.
If convicted, he faces an additional two years and a fine up to $250,000. The U.S. Marshal Service investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
Jamie Lee Roberts, 34, who is in custody, is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Sept. 21, 2016, in Shawnee County, Kan.
If convicted, he faces up to 10 years and a fine up to $250,000. The Topeka Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Illinois Man Pleads Guilty to Hacking Apple iCloud and Gmail Accounts Belonging to More Than 300 People, including Many CelebritiesRead the Press Release
CHICAGO – An Illinois man pled guilty yesterday to felony computer hacking related to a phishing scheme that gave him illegal access to over 300 Apple iCloud and Gmail accounts, including those belonging to members of the entertainment industry in Los Angeles.
Edward Majerczyk, 28, who resides in Chicago and Orland Park, Illinois, was charged on July 1 in a criminal information filed in United States District Court in Los Angeles. Pursuant to a plea agreement, Majerczyk pled guilty yesterday in United States District Court in Chicago to a felony violation of the Computer Fraud and Abuse Act, specifically, one count of unauthorized access to a protected computer to obtain information.
The court set Majerczyk’s sentencing hearing for January 10, 2017. At the time of sentencing, Majerczyk will face a statutory maximum sentence of five years in federal prison.
“This defendant invaded the privacy of hundreds of victims, stealing extremely personal data,” said United States Attorney Eileen M. Decker. “Defendant’s violation of federal law harmed both his individual victims, whose private matters were unknowingly exposed to the defendant, and the Internet Service Providers, which were entrusted with the victims’ personal data and forced to remediate defendant’s intrusions.”
According to the factual basis in the plea agreement, from November 23, 2013 through August 2014, Majerczyk engaged in a phishing scheme to obtain usernames and passwords for his victims. He sent e-mails to victims that appeared to be from security accounts of internet service providers that directed the victims to a website that would collect the victims’ usernames and passwords. After victims responded by entering information at that website, Majerczyk had access to victims’ usernames and passwords. After illegally accessing the iCloud and Gmail accounts, Majerczyk obtained personal information including sensitive and private photographs and videos, according to his plea agreement.
“The defendant's acceptance of responsibility for his role in the intrusion of his victims' accounts and their personal lives is a welcome development in this continuing investigation," said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “All of us who use personal phones or devices must protect our data with strong passwords and two-factor authentication, as well as to be cautious of solicitations that can compromise our private information."
The charge against Majerczyk stems from the investigation into the leaks of photographs of numerous female celebrities in September 2014 known as “Celebgate.” However, investigators have not uncovered any evidence linking Majerczyk to the actual leaks. Many of Majerczyk’s victims were members of the entertainment industry in Los Angeles. Majerczyk accessed at least 300 accounts, and at least 30 accounts belonging to celebrities.
The case against Majerczyk is the product of an investigation by the Federal Bureau of Investigation in Los Angeles. The case was brought by Assistant United States Attorneys Ryan White and Vicki Chou of the Los Angeles United States Attorney’s Office.
Howell Public School District Teacher Pleads Guilty to Child Pornography ChargeRead the Press Release
GRAND RAPIDS, MICHIGAN —Duane William Millar, age 59, of East Lansing, Michigan, pleaded guilty in federal court to receiving child pornography. As part of his guilty plea, Millar admitted that he had sought out, downloaded, and collected child pornography from the internet and had done so for years. He admitted that he had a 200 gigabyte hard drive filled with child pornography that he had amassed, adding he never deleted any of it and acknowledging that his collection of images included sadistic images of children being sexually assaulted.
Millar was a teacher with the Howell Public School District and was placed on administrative leave after he was charged in Ingham County for possession of child pornography. The Ingham County Prosecutor’s Office initiated Millar’s prosecution and then referred the case for federal prosecution. Initial federal charges were filed on May 25, 2016, and more charges were added on August 31, 2016, including allegations that Millar transported child pornography with him on trips to Maryland, the State of Wyoming, and Canada. On September 21, 2016, the charge of receipt of child pornography was filed in conjunction with Millar’s written plea agreement.
Millar will be sentenced on February 6, 2017, before the Honorable Robert Holmes Bell, U.S. District Judge. At sentencing, Millar will face a mandatory minimum of five years and a maximum of twenty years in federal prison, with at least five years and up to lifetime of supervised release, and a fine of $250,000.
The charges are the result of an investigation by the Michigan State Police Internet Crimes Against Children Task Force (MSP ICAC), working in conjunction with Homeland Security Investigations (HSI) and with the cooperation of the Ingham County Prosecutor’s Office. The case is being prosecuted by Assistant United States Attorney, Alexis M. Sanford.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office; county prosecutor’s offices; and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
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Honduran National Pleads Guilty to Illegal Re-EntryRead the Press Release
U.S. Attorney Kenneth A. Polite, Jr., announced that JUAN HUMBERTO HERNANDEZ-YONES, age 33, a citizen of Honduras, pled guilty today to a one count Indictment charging him with illegal re-entry of a removed alien.
According to the court documents, on June 30, 2016, HERNANDEZ-YONES was found in the United States after having been deported on July 15, 2011. HERNANDEZ-YONES was previously convicted of the same offense in 2008 in the United States District Court for the Eastern District of Louisiana.
HERNANDEZ-YONES faces a maximum penalty of 10 years imprisonment and 3 years supervised release following any term of imprisonment. U.S. District Judge Kurt D. Engelhardt set sentencing for December 21, 2016.
U.S. Attorney Polite praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Emily K. Greenfield is in charge of the prosecution.
Greenwood Man Pleads Guilty to Child Porn ChargesRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that David Paul Fuller, age 55, of Greenwood, pled guilty yesterday in federal court in Anderson, to possession of child pornography, a violation of Title 18, United States Code, Section 2252A. United States District Judge Timothy M. Cain of Anderson accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that this case originated from the take down of a child pornography website in Switzerland. Agents were able to identify the IP address of Fuller as active on the website. This information and further investigation led to the execution of a search warrant on Fuller’s home. When asked by agents if they would find child pornography on his computer, Fuller said “I hope not.” Upon further questioning he admitted to visiting websites to view what he described as “questionable material.” Agents seized his computers and subjected them to a forensic examination. The examination revealed hundreds of images of children, some of which were pre-pubescent, engaging in sexually explicit conduct.
Ms. Drake stated the maximum penalty Fuller can receive is a fine of $250,000 and/or imprisonment for 20 years, plus a special assessment of $100. He is subject to a 10-year mandatory minimum sentence because of a prior state child pornography possession conviction.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
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Gary Hirst, Former President and Chairman of the Board of Gerova Financial Group, Found Guilty of Defrauding ShareholdersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that GARY HIRST, former president and chairman of the board of Gerova Financial Group, Ltd. (“Gerova”), a publicly traded company listed on the New York Stock Exchange, was found guilty of defrauding the shareholders of that company by secretly giving away nearly $72 million of company stock to himself and his co-conspirators for no legitimate business purpose. HIRST was convicted after a two-week trial before U.S. District Judge P. Kevin Castel.
U.S. Attorney Preet Bharara said: “As the jury found today after a two-week trial, Gary Hirst conspired to commit securities and wire fraud by having Gerova issue more than $70 million worth of shares for no legitimate business purpose and by hiding his and others’ control of those shares. As a result of the manipulation of Gerova’s stock price, Hirst personally reaped more than $2.6 million in illegal profits.”
According to the allegations contained in the Indictment as well as the evidence presented during trial[1]:
From 2009 to 2011, GARY HIRST, along with his co-conspirators Jason Galanis, John Galanis, Jared Galanis, Derek Galanis, Ymer Shahini, and Gavin Hamels, engaged in a scheme to defraud the shareholders of Gerova, and the investing public, by issuing shares of Gerova stock for no legitimate business purpose and by effecting securities transactions in Gerova stock for the purpose of conferring millions of dollars of undisclosed remuneration on HIRST and his co-conspirators.
As a part of the scheme to defraud, GARY HIRST and Jason Galanis obtained sufficient control over Gerova to be able to cause Gerova to enter into transactions of their own design, and for their benefit, including the issuance of Gerova stock. Jason Galanis obtained this control without causing himself to be identified as an officer or director of Gerova in order to appear to abide by an SEC-imposed bar which forbade him from holding such positions at publicly traded companies. Among other means and methods, HIRST caused over 5 million shares of Gerova stock, which represented nearly half the company’s public float and which were intended for HIRST and his co-conspirators’ ultimate benefit, to be issued to and held in the name of Ymer Shahini, who knowingly served as a foreign nominee for the co-conspirators. HIRST, Jason Galanis, John Galanis, Jared Galanis, Derek Galanis, and Shahini understood that the purpose of the stock grant to Shahini was to disguise the co-conspirators’ true ownership interest in the stock, and to evade the SEC’s regulations for issuing unregistered shares of stock.
In furtherance of the scheme, HIRST and his co-conspirators created fraudulent, back-dated documents to conceal their theft of the stock and cover their tracks. Also in furtherance of the scheme, HIRST deliberately misled Gerova’s other officers, including its chief financial officer, and caused Gerova to fail to disclose the stock giveaway in Gerova’s public filings with the SEC. In a telephone call with Jason Galanis that was recorded by the FBI, HIRST gloated, upon reviewing a draft of one such public filing, “That whole, that whole Shahini thing, I mean, nobody, they totally missed it. Everybody.”
At the same time, and as a further part of the scheme to defraud, GARY HIRST’s co-conspirators opened and managed brokerage accounts in the name of Shahini (the “Shahini Accounts”), effected the sale of Gerova stock from the Shahini Accounts, and received and concealed the proceeds, knowing that this activity was designed to conceal from the investing public the fraudulent nature of the co-conspirators’ ownership of and control over the Gerova stock.
Jason Galanis, among others, also fraudulently induced investment advisers, including Gavin Hamels, to purchase shares of Gerova stock in the investment advisers’ client accounts by offering compensation and/or other benefits to the respective investment adviser. By causing the purchase of Gerova stock at the time, quantity, and/or price of their choosing, the co-conspirators were able to, among other things, effectuate the sale of large quantities of Gerova stock from the Shahini Accounts that the co-conspirators controlled while artificially maintaining the price of Gerova stock through coordinated matched trading. Such coordinated trading served to manipulate the market for Gerova stock and deceive the investing public.
As a result, GARY HIRST, Jason Galanis, and their co-conspirators reaped nearly $20 million in profits, including approximately $2.6 million that benefitted HIRST directly.
* * *
GARY HIRST, 64, was convicted of one count of conspiracy to commit securities fraud and one count of conspiracy to commit wire fraud, each of which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; and of one count of securities fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison. The defendant also faces a maximum fine of $5,000,000 or twice the gross gain or loss from the offense on the securities fraud count and a maximum fine of $250,000 or twice the gross gain or loss from the offense on the wire fraud count.
Jason Galanis, 46, pled guilty on July 21, 2016 to two counts of conspiracy to commit securities fraud, each of which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000 or twice the gross gain or loss from the offense; and one count of investment adviser fraud, which carries a maximum sentence of five years in prison and a maximum fine of $10,000 or twice the gross gain or loss from the offense.
John Galanis, 73, pled guilty on July 20, 2016 to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; and one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000 or twice the gross gain or loss from the offense.
Jared Galanis, 37, pled guilty to one count of misprision of a felony, which carries a maximum sentence of three years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.
Gavin Hamels, 40, pled guilty on March 22, 2016, to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000 or twice the gross gain or loss from the offense; and one count of investment adviser fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentences for the defendants will be determined by the judge.
Mr. Bharara praised the work of the U.S. Postal Inspection Service and the Federal Bureau of Investigation, and thanked the SEC.
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 is 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.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brian Blais, Aimee Hector, and Rebecca Mermelstein are in charge of the prosecution.
[1] As for co-defendant Ymer Shahini, who remains a fugitive, the description of the charges set forth herein constitute only allegations.
Four Tax Preparers Indicted on Tax Fraud OffensesRead the Press Release
DALLAS — A federal grand jury in Dallas returned an indictment last week, charging Sunnyvale, Texas, resident, Jimmy Luis Briseno, with thirteen counts of preparing false and fraudulent income tax returns and one count of conspiracy, announced John Parker, U.S. Attorney for the Northern District of Texas.
Special agents with Internal Revenue Service (IRS) Criminal Investigation (CI) arrested Briseno on those charges, and he made his initial appearance in federal court yesterday before U.S. Magistrate Judge Renee Harris Toliver.
Briseno is charged in a 37-count indictment with tax fraud offenses along with co-defendants, Rene N. Barrera, Sr. of Del Rio, Texas, Mike Cano of Wylie, Texas and Christopher Lee DeLeon of Allen, Texas. Barrera, Cano and DeLeon are also charged with multiple counts of preparing false and fraudulent income tax returns. Each codefendant is also charged with one count of conspiracy to defraud the Internal Revenue Service, Treasury Department. Cano and Deleon also made their initial appearance in federal court earlier his week before U.S. Magistrate Judge Renee Harris Toliver. Barrera was arrested on Monday in Del Rio, Texas and was detained by the U.S. Magistrate in Del Rio, Texas.
According to the indictment, Briseno owned and operated Tax Genius, dba K&J Tax Service and Anchondo Tax Service, both located in Garland, Texas. Tax Genius also operated out of a used car dealership located on North Central Expressway in Richardson. Cano, DeLeon & Barrera were employed as tax preparers with Tax Genius. Briseno trained each co-defendant how to file false tax returns.
The indictment alleges that from January 2011 through April 2013, the four tax preparers filed at least 36 fraudulent tax returns resulting in a total tax loss of approximately $229,449. The false returns included false Education Credits and false items used to inflate and maximize the Earned Income Credit.
A federal indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. 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.
Internal Revenue Service is investigating. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Four Members of Large-Scale Cocaine/Heroin Trafficking Ring Sentenced to Federal PrisonRead the Press Release
BIRMINGHAM – A federal judge today sent to prison four members of one of Birmingham’s largest cocaine- and heroin-trafficking rings, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton, IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot and Jefferson County Sheriff Mike Hale.
Among those sentenced was ANTHONY DEJUAN WILLIAMS, 46, of Birmingham, who a federal jury convicted in May of conspiracy to possess with intent to distribute cocaine and heroin, along with other drug counts including distribution and using a telephone to further drug-trafficking crimes. The jury also convicted Williams of possessing firearms after previously being convicted of a felony.
U.S. District Judge L. Scott Coogler sentenced Williams to 24 years and five months in prison.
According to trial evidence, federal agents arrested Williams in October 2015 at his home on Sun Valley Road after finding drugs, guns and a drug repackaging facility on the property. Agents found more than a pound each of heroin and cocaine in the washing machine. They recovered a pistol from Williams’ car, and a Cobray Street Sweeper 12-gauge shotgun, a PWA AR-15 5.56 mm rifle, a Mossberg pistol grip 12-gauge shotgun, and an SKS 7.62 x 39 mm rifle in a shed on the property. In a larger outbuilding on Williams’ property, agents found two large metal presses used to repress kilograms of cocaine and heroin after adding cheaper ingredients to boost their drug supply.
The three other defendants from the drug ring based in northeast Birmingham who were sentenced today are JAMES MARION ROBINSON III, 45, and ROYCE THERMON JOHNSON, 31, both of Birmingham, and CANDIDA ARROYO LEIMAKAM OCASIO, 36, of Beaumont, Texas.
Judge Coogler sentenced Johnson to 20 years in prison. He sentenced Robinson to five years in prison, and Ocasio to two years and four months in prison.
The leader of the heroin and cocaine ring, Patrick DeWayne Hall, 37, pleaded guilty in January to the drug-trafficking conspiracy and various other drug charges, including money laundering and using a telephone to traffic drugs. In June, Judge Coogler sentenced Hall to 23 years in prison.
One of Hall’s lieutenants, Lovodas DeAngelo Blake, 27, pleaded guilty in January to the conspiracy and other drug-related charges. Judge Coogler sentenced Blake in July to 10 years in prison.
Other defendants previously sentenced are David Wayne McDaniel, 24, who is widely known by his rap artist moniker, “Northside Weezy.” McDaniel received a seven-year, six-month sentence. His mother, Deangela Kay McDaniel, 42, was sentenced to three years and six months in prison. Deandre Jadarious Hall, 22, was sentenced to 10 years in prison, Eric Demond Hall, 40, to seven years, Teddy Tonell Davis, 34, to 15 years, eight months, Corey Lionel Pitts, 38, to 10 years, Robert Lynn Thomas Jr., 26, to five years, Jesstifur Jahalia Ferrari Hurst, 29, to 10 years, Rodriquis Tyrone Sturdviant, 26, to two years and 11 months, Israel Bravo Olasoagar, 38, to three years and 10 months, and Jesse Tyrone Hurst, 58, to five years.
Four defendants remain to be sentenced. They are Brandon Dion Lewis, 31, and Lena Kenya Irvine, 30, both of Birmingham, Sonja Denise Mitchell, 55, of McCalla, and Justice Martinique Holden 21, of Huntsville.
Twenty-one defendants have been convicted in the case. The prosecution resulted in the forfeiture of large amounts of cash, four vehicles valued at more than $160,000, five parcels of real property valued at more than $300,000, and money judgments totaling $10 million levied against the defendants.
The FBI, IRS Criminal Investigation, Jefferson County Sheriff’s Office, and other agency members of the FBI’s North Alabama Safe Streets Task Force investigated the case. Assistant U.S. Attorney Greg Dimler prosecuted the case.
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Four Hampton Roads Gang Members Indicted for Alleged Roles in 5 Murders and 4 Attempted Murders in December 2015Read the Press Release
NORFOLK, Va. – Four Hampton Roads men have been indicted for their alleged involvement in five murders and five additional shootings in the South Hampton Roads region over approximately one month in late 2015.
Antonio Simmons, aka “Murdock,” 38, of Norfolk; Anthony D. Foye, aka “Bull,” aka “Ace,” 25, of Portsmouth; Nathaniel T. Mitchell, aka “Savage,” 24, of Portsmouth; and Alvaughn Davis, aka “LB,” 28, of Portsmouth, have been charged in a 33-count indictment which includes charges of racketeering, murder, attempted murder, assault, and distribution of narcotics, among others.
According to the indictment, the four men are allegedly members of a local “set” of the Nine Trey Gangsters (NTG), a gang affiliated with the United Blood Nation. The string of murders and shootings stemmed, in part, from a conflict between two local sets of the NTG, one of which was led by Simmons, and included Foye, Mitchell, and Davis.
The indictment alleges that Foye and Mitchell committed all 10 shootings (see table below), while Simmons participated in planning at least three of the shootings, and Davis assisted Foye and Mitchell in multiple shootings by acting as a driver and by helping dispose of one body. The shootings stopped after Foye and Mitchell were arrested following an armed robbery of a Shell gas station in Portsmouth in December 2015. Evidence recovered during those arrests, including a gun, casings and bullets, and cell phones, linked the men to the crimes. Foye and Mitchell were previously convicted and sentenced for their roles in that robbery (Case No. 2:16-cr-20).
Date
Crime
Participants
Dec. 10, 2015
Murder of Altariq Tynes
Anthony Foye
Dec. 15, 2015
Murder of Vandalet Mercer
Antonio Simmons, Anthony Foye, Nathaniel Mitchell, Alvaughn Davis
Dec. 15, 2015
Attempted murder of R.F.
Antonio Simmons, Anthony Foye, Nathaniel Mitchell, Alvaughn Davis
Dec. 20, 2015
Murders of Wayne Davis and Linda Lassiter
Anthony Foye and Nathaniel Mitchell
Dec. 20, 2015
Attempted murder of R.M.
Anthony Foye and Nathaniel Mitchell
Dec. 20, 2015
Attempted murder of R.M.D.
Anthony Foye and Nathaniel Mitchell
Dec. 21, 2015
Murder of Jamesha Roberts
Nathaniel Mitchell
Dec. 27, 2015
Attempted murder of S.M.
Antonio Simmons, Anthony Foye, Nathaniel Mitchell
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Jonathan F. Trimble, Acting Special Agent in Charge of the FBI’s Norfolk Field Office; Michael Goldsmith, Chief of the Norfolk Police Department; Tonya D. Chapman, Chief of the Portsmouth Police Department, and Kelvin L. Wright, Chief of the Chesapeake Police Department, made the announcement after the indictment was unsealed. Assistant U.S. Attorneys Joseph E. DePadilla, Andrew C. Bosse, and Special Assistant U.S. Attorney John F. Butler are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-130.
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.
Former Xerox Employee Arrested, Charged in Credit Union Robbery and Murder 13 Years AgoRead 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 Richard Leon Wilbern, 56, of Rochester, NY, was arrested and charged by criminal complaint with credit union robbery resulting in death and possession and discharge of a firearm in furtherance of a crime of violence resulting in death. If convicted, the charges carry a penalty of life in prison or, with the approval of the Attorney General, the death penalty.
"Coming after 13 long years, this arrest is a tribute to the dogged perseverance of law enforcement, and the prayers and support of victims, surviving family members, and the public," said U.S. Attorney Hochul.
“We sought the public's help back in March, and we were not let down," said Adam S. Cohen, Special Agent in Charge of the FBI's Buffalo Division. "We cannot emphasize enough the value of the people who live and work in our community. We are beyond thankful to not only that one person, but to everyone who has worked tirelessly to get to this day."Assistant U.S. Attorneys Douglas E. Gregory, who is handling the case, stated that according to the complaint, on August 12, 2003 at approximately 9:45 a.m., the defendant walked into Xerox Federal Credit Union (XFCU), located on the Xerox Corporation campus at 800 Phillips Road in Webster, NY. Wilbern was wearing a dark blue nylon jacket with the letters “FBI” written in yellow on the back of the jacket, sunglasses and a poorly fitting wig. The defendant was also carrying a large briefcase, a green and gray-colored umbrella and had what appeared to be a United States Marshals badge hanging on a chain around his neck.
Wilbern went into the cubicle of a female employee and told the employee that he was there to conduct a security assessment and to “stage” a robbery. The defendant subsequently removed two firearms from the briefcase, one described as a handgun, the other a sawed-off shot gun or sawed-off rifle. Wilbern also removed a bag and instructed the employee to fill the bag with money from behind the teller counter. The employee complied with the demands.
Shortly after, the defendant ordered employees and customers to lay down on the floor. While doing so, Wilbern confronted a customer Raymond Batzel who had just finished a banking transaction with the teller. After a very brief verbal altercation, the defendant shot Batzel in the neck which resulted in his death. As Wilbern shot Batzel, a second customer entered the credit union and attempted to turn and run back outside after witnessing the shooting. The defendant shot and wounded the customer in the back as he fled. After shooting the two customers, Wilbern returned to the teller counter area and, while holding the firearm in the air, told credit union employees to fill the bag with cash. The defendant then took the money and fled the credit union leaving behind the umbrella.
In March 2016, a press conference was held to seek new leads in the investigation. Details of the crime were releases as well as photographs of Wilbern committing the robbery. Anyone with information was asked to call a dedicated hotline.
On March 27, 2016, a concerned citizen contacted the Federal Bureau of Investigation and indicated that the person who committed the crime was likely a former Xerox employee named Richard Wilbern. The citizen indicated that the defendant worked for Xerox prior to the robbery but had been fired. The citizen also stated that they recognized Wilbern’s face from the photos.
Further investigation determined that the defendant was in fact employed by Xerox between September 1996 and February 23, 2001 as which time he was terminated for repeated employment related infractions. Investigators also confirmed that that in August 2000, Wilbern filed a lawsuit against Xerox alleging that the company unlawfully discriminated against him with respect to the terms and conditions of his employment, subjected him to a hostile work environment, failed to hire him for a position for which he applied because of his race, and retaliated against him for complaining about Xerox’s discriminatory treatment. The investigation also determined that the defendant maintained checking and savings accounts at the Xerox Federal Credit Union.
The arrest and criminal complaint are the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, the Webster Police Department, under the direction of Chief Joseph P. Rieger, the New York State Police, under the direction of Major Craig Hanesworth, the Monroe County Sheriff’s Department, under the direction of Patrick O’Flynn, the Rochester Police Department, under the direction of Chief Michael Ciminelli, the United States Marshals Service, under the direction of Charles Salina, and the Monroe County District Attorney’s Office, under the direction of Sandra Doorley.
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.
Former Mayor of Lawrence Pleads Guilty to Transporting Stolen FundsRead the Press Release
TOPEKA, KAN. - A former mayor of Lawrence admitted Wednesday that he embezzled thousands of dollars from a food bank in Douglas County, Acting U.S. Attorney Tom Beall said.
Jeremy James Farmer, 33, Lawrence, Kan., pleaded guilty to one count of interstate transportation of stolen funds. Farmer admitted the crimes took place while he was executive director of Just Food, a food bank in Douglas County. Just Food serves more than 40 partner agencies with frozen meat and fresh produce as well as bread and food donated from community drives. The organization and its partners play a key role in fighting hunger in Douglas County.
From 2013 until Farmer resiged from Just Food and from his position as mayor of Lawrence in August 2015 he used his access to Just Foods’ bank accounts and accounting systems to steal more than $5,000 from the organization.
Sentencing will be set at a later date. He faces a penalty of up to 10 years in federal prison, a fine up to $250,000 and restitution to be determined by the judge. Beall commended the FBI, the Internal Revenue Service – Criminal Investigation and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Former Employee of Rhode Island Pain Clinic Charged in Connection with Fraudulent Billing SchemeRead the Press Release
BOSTON – A former employee of a pain management clinic was charged today in U.S. District Court in Boston in connection with a scheme to falsify patient medical records in order to obtain payments from the Medicare program and commercial insurance companies.
Moustafa Moataz Aboshady, 33, an Egyptian national residing in Lake Forest, Calif., was indicted on one count of conspiracy and two counts of making false statements in connection with health care benefit programs. Aboshady was arrested today in California.
As alleged in the indictment, Aboshady was a medical resident in Massachusetts and Rhode Island, employed at New England Wellness & Pain Management, P.C., which was also known as New England Pain Associates, P.C., Greystone Pain Management, Inc., and New England Pain Institute, P.C., or NEPA. NEPA had locations in Massachusetts and Rhode Island. The indictment alleges that Aboshady was part of a conspiracy involving other members of NEPA, including its owner and members of a satellite office in Cairo, Egypt, to submit claims for payment to Medicare and commercial insurance companies for services not rendered.
As part of the scheme, Aboshady allegedly falsified, and instructed others to falsify, patient encounter notes. Such false information included, but was not limited to, detailed descriptions of extensive physical examinations and treatment plans, and durations of face-to-face interactions with patients to create the appearance of lengthy and involved patient appointments, when in fact these services did not take place. Aboshady instructed the Cairo office to create false electronic signatures on the encounter notes and how to make the timestamps for those signatures look realistic. In an email dated Feb. 13, 2013, Aboshady provided the following instruction to the Cairo office in connection with creating false entries in the encounter note for one of the patients:
ROS [review of systems] cardiac, no one has rheumatic fever in america. pls don’t use it.[]no one asks about varicose viens. remove otoscopic exam from ent.[]remove thyroid exam.[]chest exam leave ronchi and wheezes only.[]Cardiac remove palpation, rubs and gallops. Abdomen remove masses and hepatosplenomegally.[]change the rest of physical exam the way i did. Pls sign the note as 8:12 or 8:17 instead of 8:00.
Pls share with threst [sic]. it takes me forever to fix notes.
According to the indictment, Aboshady was also responsible, in conjunction with the Cairo office, for fabricating the dates of urine drug test results, so that the tests appeared to have been performed within days of specimen collection rather than weeks or months thereafter. This information was necessary to support billing codes submitted to insurance companies. In fact, NEPA tested patients’ urine weeks and sometimes three months after the specimens had been collected and stored the specimens in unrefrigerated in large plastic bags and containers.
On some occasions, Aboshady and the owner of NEPA allegedly falsified, and caused the Cairo office to falsify, medical records shortly after patients’ appointments. Other times, in response to audits or requests for medical records by Medicare programs and insurance companies, he falsified medical records months and even over a year after patients’ appointments.
The indictment further alleges Aboshady falsified, and instructed others to falsify, patient records despite an email from a physician assistant to Aboshady and the NEPA owner in June 2012, at the beginning of the charged conspiracy, stating that:
I have recently noticed there are some notes written under my name that have been changed/edited without my knowledge . . . . I know exactly what I write in my notes so it is very easy for me to see when a note has been edited . . . . [I]t holds me responsible for a physical exam that I did not do, if the note[] says that I have. I purposely do not include portions of the physical exam in my note that I did not do.
Fathalla Mashali, the owner of NEPA, is scheduled to stand trial on Feb. 27, 2017.
The charging statutes provide for a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000 on each count, restitution and forfeiture. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; Anthony DiPaolo, Chief of Investigations of the Massachusetts Insurance Fraud Bureau; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Maxim Grinberg of Ortiz’s Health Care Fraud Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Commercial Pilot Sentenced to Federal Prison on Stalking ChargeRead the Press Release
In San Antonio today, 62-year-old Mark Joseph Uhlenbrock of Chesterfield, Missouri, was sentenced to 41 months in federal prison followed by three years of supervised release after pleading guilty to internet stalking announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Uhlenbrock, who had been on bond pending sentencing, was placed into federal custody during today’s hearing by order of United States District Judge Xavier Rodriguez.
On June 15, 2016, the defendant pleaded guilty to one count of stalking. By pleading guilty, Uhlenbrock admitted that from the end of their romantic relationship in January 2006 to August 2015, he caused substantial emotional distress to his female victim by posting nude photographs of her on the Internet--on MyEx.com and elsewhere--without her consent and despite three Bexar County (TX) civil district court lawsuits.
On August 26, 2015, FBI agents executed a search warrant at the defendant’s residence and seized two laptop computers. An examination of the laptops revealed nude photos of his victim and numerous bookmarks to links where the defendant posted nude photos of his victim.
This case was investigated by the FBI and was prosecuted by Assistant United States Attorney Sarah Wannarka.
Former Canadian Mountie Pleads Guilty to Money Laundering Charges Stemming from a Conspiracy to Smuggle Narwhal TusksRead the Press Release
A retired officer of the Royal Canadian Mounted Police pleaded guilty today to 10 money laundering offenses in the U.S. District Court for the District of Maine, announced Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. Gregory R. Logan, 59, of St. John, New Brunswick, was extradited to the United States on March 11. Logan, who has been detained since his extradition, will remain in jail pending his sentencing hearing before U.S. District Judge John A. Woodcock Jr. for the District of Maine in Bangor, Maine.
Logan was indicted in the District of Maine in November 2012 and charged with conspiracy, smuggling and money laundering. All of the counts arose from Logan’s scheme to smuggle narwhal tusks from Canada to the United States for sale to American customers and transfer the proceeds of those sales back to Canada. Logan was arrested in Canada, based on a request from the United States, in December 2013. Logan pleaded guilty to a related wildlife smuggling crime in Canada and the terms of his extradition limited the case against him in the United States to the money laundering offenses. Also charged in the original indictment was Andrew J. Zarauskas of Union, New Jersey. Zarauskas was convicted after a jury trial in Bangor and sentenced to 33 months in prison.
Narwhals are medium-sized toothed whales that are native to the Arctic. They are known for their distinctive ivory tusk which can grow to more than eight feet in length. Given the threats to their population, narwhals are protected domestically by the Marine Mammal Protection Act and internationally by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) – an international treaty to which more than 170 countries, including the United States and Canada, are parties. It is illegal to import narwhals, or their parts, into the United States for commercial purposes. Further, any importation must be accompanied by a permit and must be declared to U.S. Customs and Border Protection and the U.S. Fish and Wildlife Service.
According to the indictment, Logan smuggled more than 250 narwhal tusks into the United States between 2000 and 2010. As part of the plea agreement, Logan agreed that the market value of the narwhal tusks in this case was between $1.5 million and $3 million. Knowing that the tusks were illegal to bring into the United States and sell, Logan transported them across the border in false compartments in his vehicle and trailer. Logan utilized a shipping store in Ellsworth, Maine, to send the tusks to customers throughout the United States, including Zarauskas and others. Logan knew that his customers would re-sell the tusks for a profit and in an attempt to increase that re-sale price, Logan would occasionally provide fraudulent documentation claiming that the tusks had originally belonged to a private collector in Maine who had acquired them legally.
In addition to shipping the tusks from Maine, Logan maintained a post office box the Ellsworth shipping store as well as an account at a bank in Bangor. Logan instructed his customers to send payment in the form of checks to the post office box, or wire money directly to his Maine bank account. Logan then transported the money to Canada by having the shipping store forward his mail to him in Canada, and by using an ATM card to withdraw money from his Maine bank account at Canadian ATM machines. At times, Logan also directed his customers to send funds directly to him in Canada.
Logan faces a maximum sentence of 20 years’ imprisonment and a $500,000 fine, per count of conviction. The case was investigated by special agents of the National Oceanic and Atmospheric Administration, Office of Law Enforcement; U.S. Fish & Wildlife Service, Office of Law Enforcement; and Wildlife Officers from Environment and Climate Change Canada. The case is being prosecuted by Trial Attorneys James B. Nelson and Lauren D. Steele.
Former Bank Employee Pleads Guilty to EmbezzlementRead the Press Release
POCATELLO – Stefani Bennett, 44, of Salmon, Idaho, pleaded guilty today in United States District Court to embezzlement by a bank employee, U.S. Attorney Wendy J. Olson announced.
Bennett was an employee of the U.S. Bank in Salmon, Idaho. On July 8, 2011, Bennett withdrew $100,000 from a customer’s account and converted it to five cashier’s checks and $2,407.59 in cash, which she used to pay her personal bills and make personal purchases, all without authorization. Bennett admitted to other bank employees and to special agents with the Federal Bureau of Investigation (FBI), who interviewed her at a later date, that she took the money.
The charge of embezzlement by a bank employee is punishable by up to 30 years of imprisonment, up to a $1,000,000 fine, and up to five years of supervised release.
Bennett is scheduled to be sentenced on December 14, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
The case was investigated by the FBI.
Five Charged in Steroid and HGH Distribution ConspiracyRead the Press Release
Jacksonville, FL – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Gregory Allen Baker, 28, William Peter Wagner, 25, Ashley Hinson, 27, Heather Marie Wagner, 30, and Elijah Adams, all of Jacksonville, with conspiracy to import anabolic steroids, conspiracy to manufacture, distribute, and possess with intent to distribute anabolic steroids, conspiracy to distribute and possess with intent to distribute human growth hormone, and conspiracy to commit money laundering. They were arrested yesterday. The indictment notifies the defendants that the United States intends to forfeit several assets, including a 2015 Land Rover Range Rover Sport, a 2008 Cadillac Escalade, and a 2007 Yamaha motorcycle. The United States also intends to forfeit luxury jewelry pieces, including four Breitling watches, diamond earrings, and a diamond ring, as well as proceeds from bank accounts totaling approximately $125,000, all of which are alleged to be traceable to proceeds of the offenses.
According to the indictment, from December 2013 through September 22, 2016, Baker, W. Wagner, Hinson, H. Wagner, and Adams conspired to import anabolic steroids from the People’s Republic of China into the United States. During the same time period, they also conspired to distribute and possessed with the intent to distribute human growth hormone and anabolic steroids. Using Western Union at various locations, they conspired to send payments to China for raw steroids, including Testosterone, Mesteron, Anavar, Trenbolone, Halotestin, Sustanon, Deca, and Equipoise.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Postal Inspection Service, U.S. Customs and Border Patrol, the Jacksonville Sheriff’s Office, the Jacksonville Beach Police Department, the Green Cove Springs Police Department, the Internal Revenue Service, and the U.S. Anti-Doping Agency. It will be prosecuted by Assistant United States Attorney Kelly S. Karase.
Federal Jury Convicts Man Who Took over $1.5 Million from Distressed Homeowners in Bogus Loan Modification SchemeRead the Press Release
SANTA ANA, California – An Orange County man who deceived distressed homeowners with false promises that he could help them avoid foreclosure by obtaining modifications to their mortgages – or even completely eliminating their loans – was convicted today on federal fraud charges.
Antonio Marquette, who went by “Alan Le” and “Anthony Le,” 56, of Midway City, was convicted this afternoon in United States District Court in Santa Ana of nine counts of mail fraud, one count of wire fraud, and one count of money laundering. Marquette was taken into custody after the verdicts were taken, and United States District Judge Andrew J. Guilford set the sentencing hearing for January 30, 2017, at which time Marquette will face a statutory maximum sentence of 220 years.
According to evidence at trial, Marquette operated Bolsa Marketing Group in Garden Grove in 2010 and 2011 and charged homeowners up to $100,000 in cash for services that the homeowners did not receive. Through Bolsa Marketing, Marquette ran a scheme that targeted distressed homeowners, most of whom were members of Vietnamese communities in Southern California, the Bay Area and Houston, and induced them to pay large up-front fees to obtain mortgage relief services.
“This defendant was convicted today of victimizing vulnerable homeowners who were desperate to avoid foreclosure of their homes,” said United States Attorney Eileen M. Decker. “While the defendant convinced his victims to pay exorbitant fees with lofty, false promises, he in fact did nothing to help them, and many victims subsequently lost their homes.”
The evidence showed that Marquette operated the scheme by “falsely promising homeowners mortgage loan modifications that would substantially reduce their mortgage payments, avoid foreclosure, or eliminate their mortgage loans entirely.” The trial evidence further showed that Marquette took in more than $1.5 million from victim-homeowners.
As part of the scheme, Marquette made various promises to homeowners, including making guarantees that he could reduce their outstanding debt to 25 percent of the loan balance in only four months. Marquette also sent fraudulent checks to “pay off” mortgages and filed bogus documents with county recorders’ offices, according to court documents.
“The defendant operated this affinity scheme by targeting Vietnamese homeowners with false promises via Vietnamese-language radio advertisements, which added a veneer of legitimacy to his scheme,” said Deirdre Fike the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Homeowners are encouraged to thoroughly research solicitations, including those advertised through the media, before placing their trust and their money with anyone in advance of receiving services.”
The case against Marquette was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Greg Staples.
Farmers Branch Man Enters Guilty Plea for Damaging a Planned Parenthood Facility in Order to Disrupt ServicesRead the Press Release
DALLAS — Matthew Ring, 32, of Farmers Branch, Texas, charged with one count of damaging property of a reproductive health services facility plead guilty September 27, 2016, before U.S. Magistrate Judge Renee Harris Toliver, announced U.S. Attorney John R. Parker of the Northern District of Texas.
He faces 1 year imprisonment, $100,000 fine and not more than one year of supervised release. Sentencing is scheduled for January 30, 2017 before U.S. District Judge Sam A. Lindsay.
According to plea documents filed in the case, in the early morning hours of August 29, 2015, Ring drove to the Planned Parenthood on Beltline Road in Addison, parked nearby, put on a surgical mask to try to disguise himself, took out a crowbar/tire iron and walked to the Planned Parenthood where he smashed a window. Ring then fled the location in his vehicle and was later pulled over by Addison police officers and questioned. Ring admitted to smashing the window because he believed abortions were being performed at the facility.
The Federal Bureau of Investigation and Addison Police Department were involved in the investigation.
Deputy Criminal Chief Assistant U.S. Attorney Lisa Dunn is prosecuting the case.
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Escapee Gets Additional Time in Federal Prison for Tossing Urine at GuardsRead the Press Release
CORPUS CHRISTI, Texas – A Corpus Christi prisoner has been sentenced to prison for escaping from a halfway house and for assault on a federal employee, announced U.S. Attorney Kenneth Magidson. Desmond Deon Jones, 29, pleaded guilty June 13, 2016.
Jones had been completing a prison sentence at a federal halfway house for being a felon in possession of a firearm. He escaped from that halfway house on Dec. 15, 2015, and was captured on Jan. 4, 2016. He was charged and later pleaded guilty to the escape. While in custody awaiting sentencing in that case, Jones began to throw urine and other unknown liquids on jail guards working at the Costal Bend Detention Center. Between Jan. 28, 2016, and March 24, 2016, Jones threw urine or other unknown liquids on a total of 12 guards.
At the sentencing hearing today, Senior U.S. District Judge Hayden Head ordered Jones to serve 28 months in federal prison for both the assault conviction and for escaping from a halfway house. The escape and assault sentences will be served concurrently to each other but consecutively to his remaining term of confinement in the firearm case. The prison sentence will be immediately followed by three years of supervised release. At the sentencing hearing, additional evidence was presented including jail security video of one of the assaults.
Jones will remain in custody.
The FBI and the U.S. Marshals Service conducted the investigation. Assistant U.S. Attorney Robert D. Thorpe Jr. prosecuted the case.
El Departamento de Justicia Llega a Acuerdo Conciliatorio con Charter Bank en Resolución de Alegatos de Discriminación en PréstamosRead the Press Release
El Acuerdo Conciliatorio Prevé Más de $165.000 en Indemnizaciones a Prestatarios Hispanos Quienes Obtuvieron Préstamos al Consumidor en Texas
El Departamento de Justicia anunció hoy que Charter Bank de Corpus Christi, Texas, mantendrá políticas de establecimiento de precios uniformes y pagará más de $165.000 dólares como parte de un acuerdo conciliatorio en resolución de alegatos de que adoptó un patrón o una práctica de discriminación en base al origen nacional.
El acuerdo conciliatorio, que está sujeto a la aprobación del tribunal, fue radicado junto con la demanda del departamento en el Tribunal Federal de Distrito del Distrito Sur de Texas. La demanda alega que Charter violó la Ley de Igualdad de Oportunidades de Crédito [Equal Credit Opportunity Act (ECOA)] entre 2009 y 2014 al cobrar tasas de interés más altas a prestatarios hispanos que a prestatarios no hispanos con perfiles similares, en préstamos al consumidor garantizados por vehículos. La discriminación afectó a alrededor de 500 préstamos realizados a través de las sucursales del banco. El préstamo al consumidor con garantía vehicular le permite al consumidor pedir prestado dinero del banco utilizando el capital de un vehículo que ya pertenece al cliente. La demanda alega que la discriminación se produjo porque Charter les permitió a sus empleados utilizar su propio criterio para ajustar las tasas de interés al alza o a la baja por aproximadamente tres puntos porcentuales, sin que esto se basara en el riesgo de crédito del prestatario.
“Las prácticas de otorgamiento de préstamos que discriminan a los clientes debido a su origen nacional violan la ley y ponen en peligro la base de una economía libre y justa,” declaró la Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta, jefa de la División de Derechos Civiles del Departamento de Justicia. “Las familias trabajadoras dependen del acceso al crédito para poder tomar dinero prestado para pagar por las necesidades de la vida diaria. Este acuerdo conciliatorio garantizará que Charter Bank cumpla con la ley, proporcione reparación a los consumidores y protecciones contra la discriminación en el futuro.”
“El otorgamiento justo de préstamos por los bancos, independientemente del origen nacional, está garantizado por la ley,” declaró el Fiscal Federal Kenneth Magidson del Distrito Sur de Texas. “Este caso asociado a Charter Bank demuestra nuestro compromiso de asegurar que esto se cumpla.”
La demanda se originó a partir de una remisión en el 2014 a la División de Derechos Civiles del departamento por parte del Federal Deposit Insurance Corporation (FDIC). Charter es regulado por el FDIC.
Según el acuerdo conciliatorio, Charter pagará $165.820 a víctimas hispanas de la discriminación, monitoreará sus préstamos con respecto a potenciales disparidades basadas en el origen nacional y brindará capacitación en oportunidades iguales de crédito a sus empleados. Con anterioridad al acuerdo conciliatorio, Charter realizó una revisión de sus políticas de establecimiento de precios de modo a incluir normas objetivas, no discrecionales y no discriminatorias para la determinación de las tasas de interés para préstamos a consumidores. Este acuerdo conciliatorio exige que Charter mantenga las políticas revisadas durante al menos cuatro años.
La Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles es responsable, en el Departamento de Justicia, de hacer valer las leyes de otorgamiento justo de préstamos. Desde 2010, la División de Derechos Civiles ha provisto más de $ 1,5 mil millones en reparación monetaria para prestatarios individuales y comunidades afectadas al hacer valer la Ley de Vivienda Justa, la ECOA y la Ley de Amparo Civil para Miembros del Servicio Militar [Servicemembers Civil Relief Act (SCRA)]. Los informes anuales del Secretario de Justicia de EE.UU. al Congreso sobre el cumplimiento de la ECOA destacan los logros del departamento en el otorgamiento de préstamos justos y están disponibles en www.justice.gov/crt/publications/.
La División de Derechos Civiles y la Fiscalía Federal del Distrito Sur de Texas son miembros del Grupo de Trabajo de Coacción contra el Fraude Financiero, establecido por el Presidente Obama para llevar adelante una iniciativa agresiva, coordinada y proactiva para la investigación y el enjuiciamiento de los delitos financieros. El grupo de trabajo incluye a representantes de una amplia gama de dependencias federales, autoridades reguladoras, inspectores generales y miembros de las fuerzas del orden público estatales y locales, quienes, trabajando en conjunto, aprovechan un poderoso espectro de recursos de coacción penal y civil. El grupo de trabajo está trabajando para mejorar la labor en todo el poder ejecutivo federal, y con asociados estatales y locales, para investigar y enjuiciar delitos financieros importantes, asegurar un castigo justo y eficaz para quienes cometan delitos financieros, combatir la discriminación en los mercados de préstamos y financieros, y recuperar fondos para las víctimas de delitos financieros. Para obtener más información sobre el grupo de trabajo, visite www.StopFraud.gov.
Para obtener información adicional sobre la labor del Departamento de Justicia para hacer valer las leyes de otorgamiento justo de préstamos, visite el portal del departamento www.justice.gov/fairhousing.
Eight Defendants Charged in Elmira Heroin Trafficking RingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, NY – U.S. Attorney William J. Hochul, Jr. announced today that eight defendants were arrested and charged by criminal complaint with conspiracy to possess with intent to distribute and distribution of one kilogram or more of a substance containing heroin, possession with intent to distribute and distribution of heroin, and use of a telephone to facilitate drug trafficking. The charges carry a minimum penalty of 10 years in prison and a maximum of life.
Named in the complaint are:• Israel Cedeno-Martinez, 42, a/k/a Punta
• Mark Jones, Jr., 29, a/k/a Poop
• Marcel Jones, 26, a/k/a Cell, a/k/a Bug
• Mark Jones, Sr., 53, a/k/a Pimp Juice, a/k/a Juice
• Andrew Woodhouse, 30, a/k/a Woody
• Scott Washington, a/k/a Body, a/k/a Addy
• Shareef McCray, 39, a/k/a Reef, a/k/a Gritz
• Tanner Rios, 29, a/k/a ReeIn addition, defendants Marcel Jones, Mark Jones, Jr., Mark Jones, Sr., Shareef McCray, and Tanner Rios are charged with possession of a firearm in furtherance of drug trafficking which carries a minimum penalty of five years in prison and maximum of life to be served consecutive to any penalty received on the drug charge.
“As this case demonstrates, the scourge of heroin has now reared its head in the beautiful community of Elmira,” said U.S. Attorney Hochul. “To address this life and death threat, we in all levels of law enforcement are committed to using all available tools until all traffickers are brought to justice.”
ATF Acting Special Agent in Charge Charlie J. Patterson said “Mark Jones, Sr., Mark Jones, Jr., Marcel Jones, and their associates, distributed heroin in Elmira, New York, using firearms, violence, and intimidation to further their criminal activities. They now face lengthy sentences in a Federal penitentiary as a just reward for their conduct. Their arrests serve as a powerful message to those who peddle in violence and poison that we in law enforcement are ready to stop you, and that your drugs and guns will earn you nothing more than a lengthy stay in a 6x9 prison cell. ATF would like to extend our gratitude to the Elmira Police Department, New York State Police, Drug Enforcement Administration, and U.S. Attorney’s Office, for their hard work and perseverance during this lengthy investigation.”
"As opioid overdose rates skyrocket, and law enforcement seize heroin in record amounts, our country is battling one of the largest drug threats to date," stated DEA Special Agent in Charge James Hunt. "Today's arrests have permanently dismantled an organization responsible for supplying our neighborhoods with poison used to feed addiction, enable crime and destroy families." SAC Hunt commends DEA's local, state and federal law enforcement partners who worked tirelessly throughout this investigation.
New York State Police Superintendent George P. Beach II said, “Thanks to our continued partnership with federal and local law enforcement, the members of a dangerous drug trafficking operation are now behind bars, and we have prevented a significant amount of heroin from reaching the streets. Our message to drug dealers is simple: We will not tolerate illegal drug activity in our communities.”
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that according to the complaint, the Drug Enforcement Administration, New York State Police, Elmira Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives have been investigating the drug trafficking activities of the eight defendants led by Marcel Jones since July 2015.
The complaint further states that since at least 2013, the defendants distributed heroin throughout the City of Elmira, NY and the surrounding areas. The organization obtained large quantities of heroin primarily from defendant Israel Cedeno-Martinez in Trenton, New Jersey, and others including defendant Shareef McCray, an alternate source-of-supply in Scranton, Pennsylvania. Cedeno-Martinez provided large quantities of heroin to Mark Jones, Jr. who utilized 272 East Northhampton Street in Wilkes-Barre, Pennsylvania as a primary residence and a location to store, process, and package the heroin. The heroin was then transported by vehicle to Elmira and sold by multiple distributors of the organization.
The investigation determined that heroin sold by the organization contained fentanyl, a deadly narcotic sometimes added to heroin. At least three known customers of the organization died after overdosing.
The complaint is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the New York State Police, under the direction of Major Richard Allen, the Elmira Police Department, under the direction of Chief Joseph Kane, the Chemung County District Attorney’s Office, under the direction of Weedon Whetmore, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Charlie J. Patterson, the Elmira Heights Police Department, under the direction of Chief A. Rick Churches, the Horseheads Police Department, under the direction of Sergeant Scott C. Zelko, and the Chemung County Sheriff’s Department, under the direction of Christopher Moss.
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.Dual Jamaican-U.S. Citizen Pleads Guilty in Connection with Jamaica-Based Lottery Fraud SchemeRead the Press Release
A dual Jamaican and U.S. citizen pleaded guilty for her role in a Jamaican-based fraudulent lottery scheme, the Department of Justice announced today.
Felecia Roxanne Lindo, 32, who is currently residing in New York, pleaded guilty in the Western District of North Carolina to one count of conspiracy to commit wire fraud. Lindo was charged in connection with a fraudulent lottery scheme based in Jamaica that induced victims in the United States to send Lindo hundreds of thousands of dollars to cover purported fees for lottery winnings that victims had not won and never received. Sentencing will be scheduled at a later date.
“The Justice Department is committed to prosecuting those responsible for fraudulent international lottery schemes, which frequently target elderly Americans,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will continue to pursue and prosecute this criminal activity, wherever the fraudsters may be.”
“Today’s prosecution represents another step in our efforts to stem the tide of international scams preying on innocent Americans,” said U.S. Attorney Jill Westmorland Rose for the Western District of North Carolina. “Fraudsters located outside the United States frequently rely on co-conspirators in the United States to help their scams succeed. Such illegal conduct will be investigated and prosecuted.”
This prosecution is part of the Department of Justice’s effort working with federal and local law enforcement to combat fraudulent lottery schemes in Jamaica preying on American citizens. According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries.
Lindo pleaded guilty to one count of conspiracy to commit wire fraud with enhanced penalties for telemarketing. As part of her guilty plea, Lindo acknowledged that from in or about 2011 through at least in or about September 2012, Lindo was a member of a conspiracy that targeted victims in the United States. Victims of the scheme received a telephone call stating that they had won money in a sweepstakes or lottery. Victims were instructed to send thousands of dollars for fees or other expenses in order to release their purported lottery winnings. Victims sent hundreds of thousands of dollars to Lindo in the United States, who then forwarded a portion of the money to Jamaica. Lindo acknowledged there was no lottery and no winnings were paid and that she kept some the victims’ money for her own benefit.
“The Postal Inspection Service seeks to stop the victimization of American citizens, many of whom are older Americans, by those engaged in international lottery schemes,” said Inspector in Charge David W. Bosch of the U.S. Postal Inspection Service’s Philadelphia, Pennsylvania Division. “Regardless whether these criminals reside within our borders or beyond, we will continue to work with our law enforcement partners here and abroad to bring these offenders to justice.”
Principal Deputy Assistant Attorney General Mizer and U.S. Attorney Rose commended the investigative efforts of the U.S. Postal Inspection Service and the Internal Revenue Service Criminal Investigation. The case is being prosecuted by Trial Attorney Raquel Toledo of the Civil Division’s Consumer Protection Branch, with the assistance of Assistant U.S. Attorney Kelli H. Ferry of the Western District of North Carolina.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of North Carolina, visit its website at https://www.justice.gov/usao-wdnc.
Detroit Man Charged with Making a Threat Against Law Enforcement OfficersRead the Press Release
A twenty-one year-old Detroit man was taken into custody after a criminal complaint was filed in federal court charging him with using the Internet to transmit a threat, 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 and Chief James Craig, Detroit Police Department.
Deshawn Maurice Lanton was charged in the complaint.
The criminal complaint alleges that on September 23, 2016, a threatening post was made to the WXYZ (Channel 7) live stream webcast of Detroit Police Sgt. Kenneth Steil’s funeral. The post read “Maybe I should drop a bomb on tha building to get rid of the rest of y’all.” The post was on the live stream showing the inside of the church where the funeral was taking place as hundreds of uniformed police officers entered the building. Investigation into the threat identified Lanton as the man who made the threat.
According to the criminal complaint, Lanton attempted to sell a firearm and ammunition on a Facebook page commonly used to buy and sell property online. Lanton’s Facebook page shows multiple videos of police officers getting injured with comments expressing his pleasure seeing the officers injured.
"This case is different from some other generalized threats on social media against police officers and other groups because this statement threatens specific harm to a particular group of people at a precise location," McQuade said.
“Threats to harm or kill police officers are an affront to the men and women who risk their lives daily to protect the communities of Michigan they have pledged to serve. The FBI takes these threats seriously and works closely with our law enforcement partners to ensure threats are evaluated, investigated, and those responsible brought to justice.” said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. “Just as we are prepared to tirelessly investigate individuals who threaten police officers and other first responders, the FBI remains committed to safeguarding the rights of all individuals specifically targeted because of their race, gender, religion, or other affiliation.”
Lanton made his initial appearance this afternoon in federal court and was temporarily detained until his bond hearing tomorrow at 1pm.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
If found guilty, Lanton faces up to 5 years in prison and a $250,000 fine.
Dealer of Herion/Fentanyl Mix Sentenced to 15 Years in PrisonRead the Press Release
CINCINNATI – John Wade, 46, of Cincinnati has been sentenced to 15 years in prison for selling a mixture of heroin and fentanyl that led to the overdose death of a Clermont County man in 2015.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Detroit Field Division, Cincinnati Police Chief Eliot Isaac, Hamilton County Sheriff Jim Neil, Hamilton County Coroner Dr. Lakshmi Sammarco, other members of the Hamilton County Heroin Task Force including the Ohio Bureau of Criminal Identification in Ohio Attorney General Mike DeWine’s Office, and Union Township Police Chief Scott Gaviglia announced the sentence imposed September 26 by U.S. District Judge Timothy S. Black.
According to court documents, law enforcement agents investigating the July 30, 2015 overdose death of the victim determined that he had purchased a heroin/fentanyl mixture from Wade that day. Investigators found drugs in a bag at the victim’s residence. Forensic examination found Wade’s DNA on the bag. Following additional investigation, task force officers arrested Wade on January 11, 2016. Wade pleaded guilty on May 23, 2016 to one count of distribution of a controlled substance (heroin and fentanyl).
“This case was the first case investigated by the Hamilton County Heroin Task Force,” Acting U.S. Attorney Glassman said. “It demonstrates that cooperation between agencies produces significant results that help us track deadly drugs back to the source.”
Acting U.S. Attorney Glassman commended the investigation of this case by the Hamilton County Heroin Task Force, and Assistant U.S. Attorney Timothy D. Oakley, who represented the United States in this case.
Dauphin County Man Charged Federally for Armed Bank Robbery and Firearm ViolationsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Grand Jury in Harrisburg indicted a Dauphin County man charging him with armed bank robbery, possession of a loaded firearm during a crime of violence and being a previously convicted felon in possession of a firearm.
According to United States Attorney Peter Smith, on August 31, 2016, Donell Williams, age 39, allegedly robbed the AmeriChoice Federal Credit Union, Enola, Pennsylvania. Approximately $1,500 was taken. Williams was later taken into custody. Williams is a previously convicted felon and prohibited from possessing a firearm.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a districtwide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
This case was investigated by the Federal Bureau of Investigation and the East Pennsboro Township Police Department. The City of Harrisburg Bureau of Police assisted in Williams’ arrest. The case is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law, for Count 1 is 25 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. The maximum penalty under federal law, for Count 2 is life imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Count 2 carries a mandatory consecutive term of imprisonment of seven years. The maximum penalty under federal law, for Count 3 is 10 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Crystal Lake Woman Sentenced to 55 Months in Federal Prison for Mail FraudRead the Press Release
ROCKFORD — A Crystal Lake woman was sentenced today in federal court by U.S. District Judge Frederick J. Kapala for mail fraud.
PATTY CORDOBA, 44, of Crystal Lake, Ill., was sentenced to 55 months in federal prison, to be followed by 3 years of supervised release, and was ordered to pay restitution of $1,115,072. Cordoba pleaded guilty to mail fraud on May 23, 2016. In the written plea agreement, Cordoba admitted that from March 1, 2009, to May 18, 2012, she and her co-defendants participated in a scheme to defraud and obtain refunds from the United States Treasury Department.
Cordoba owned and managed Patty’s Tax Service in McHenry, Ill. Cordoba and her employees - co-defendants MARIO CORDOBA, LUISA CARBAJAL and ALICIA AREVALO - prepared and filed over 200 fraudulent personal federal income tax returns for other co-defendants OLGA LIDIA DIAZ-HERNANDEZ, VICTOR HERNANDEZ, VERONICA SANCHEZ-BARRADAS and CESAR BESICHE, and other individuals, by claiming false amounts of income and credits for tax years 2006 through 2011. Those returns were mailed and filed with the IRS, falsely claiming over $1,000,000 in tax refunds.
Based on the false tax returns submitted to the IRS, the United States Treasury issued and mailed tax refund checks to the addresses listed on the false tax returns, or caused the refunds to be directly deposited into bank accounts in the names of the filers. The IRS issued approximately $1,115,072 in refunds to which Patty Cordoba and her co-schemers were not entitled.
The seven co-defendants previously pleaded guilty to mail fraud and were sentenced:
Arevalo, 49, of Poplar Grove, Ill., pleaded guilty on May 16, 2016, and was sentenced on August 29, 2016, to 21 months in federal prison, and ordered to pay restitution of $1,115,072.
Besiche, also known as Cesar Beciche-Barranco, 50, of McHenry, Ill., pleaded guilty on Dec. 8, 2015, and was sentenced on March 15, 2016, to time served and was ordered released to the Department of Immigration and Customs Enforcement for processing of deportation proceedings against him. Besiche was also ordered to pay restitution of $74,902.
Carbajal, 54, of Marengo, Ill., pleaded guilty on Feb. 26, 2016, and was sentenced on June 23, 2016, to 16 months in federal prison, to be followed by a term of supervised release of 2 years, and ordered to pay restitution of $1,115,072.
Mario Cordoba, 49, of Crystal Lake, Ill., pleaded guilty on May 26, 2016, and was sentenced on September 1, 2016, to 33 months in federal prison, to be followed by 3 years supervised release, and ordered to pay restitution of 1,115,072.
Diaz-Hernandez, also known as Olga Diaz, 46, of McHenry, Ill., pleaded guilty on March 21, 2016, and was sentenced on July 8, 2016, to 21 months in federal prison, and ordered to pay restitution of $166,296.
Sanchez-Barradas, 40, of McHenry, Ill., pleaded guilty on Feb. 24, 2016, and was sentenced on June 7, 2016, to 27 months in federal prison, and ordered to pay restitution of $252,398.
Hernandez, 43, of McHenry, Ill., pleaded guilty on Feb. 16, 2016, and was sentenced on May 31, 2016, to 27 months in federal prison, and ordered to pay restitution of $252,398.
Patty Cordoba's sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; James D. Robnett, Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service - Criminal Investigation Division; E.C. Woodson, Inspector in Charge of the Chicago Division of the United States Postal Inspection Service; and James M. Gibbons, Acting Special Agent-In-Charge of the Chicago Field Office of Homeland Security Investigations.
The government was represented by Assistant U.S. Attorney Joseph C. Pedersen.
Crownpoint Man Sentenced to More Than 15 Years for Conviction Arising Out of Armed Assault on Tribal and Federal OfficersRead the Press Release
ALBUQUERQUE – Jarod Martin, 36, a member of the Navajo Nation who resides in Crownpoint, N.M., was sentenced yesterday in federal court in Albuquerque, N.M., to 183 months in prison followed by five years of supervised release for his conviction on assault and firearms charges. Martin’s crimes of conviction arose out of his March 2, 2015, assault against two Navajo Nation tribal police officers, one of whom was commissioned as a special federal officer by the BIA, during which Martin fired shots at one of the officers and later brandished his firearm at both officers.
Martin’s sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division, and Director Jesse Delmar of the Navajo Nation Division of Public Safety.
Martin was arrested on March 10, 2015, on a criminal complaint alleging that he assaulted a federal officer and a tribal police officer. Martin was subsequently indicted and charged with assault with a deadly weapon, assault on a federal officer, being a felon in possession of firearms and ammunition, and two counts of discharging a firearm during a crime of violence. At the time of his arrest, Martin was prohibited from possessing firearms or ammunition because he previously had been convicted of a felony offense.
According to court filings, Martin assaulted two officers of the Navajo Nation Division of Public Safety, including one who was a federal officer because he held a Special Law Enforcement Commission from the BIA. Martin committed the crimes on March 2, 2015, on the Navajo Indian Reservation in McKinley County, N.M. Martin assaulted the tribal police officer by shooting at the officer as the officer attempted to conduct a traffic stop on Martin’s vehicle. After a vehicle pursuit that ended when Martin’s vehicle got stuck on the side of the road, Martin continued his flight on foot. Two tribal police officers, including one who was federally commissioned, were able to track Martin to a ravine where he pointed a firearm at the officers as they attempted to apprehend him. Martin was arrested after one of the officers shot Martin in the foot.
On Dec. 15, 2015, Martin pled guilty to assault with a deadly weapon, assault on a federal officer with a deadly weapon, being a felon in possession of firearms and ammunition, and discharging a firearm during a crime of violence.
This case was investigated by the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety.
Assistant U.S. Attorney Raquel Ruiz-Velez prosecuted the case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including McKinley County, N.M., under this initiative.
Connecticut Man Sentenced to 12 Years for Methylone ConspiracyRead the Press Release
UTICA, NEW YORK – Ryan Canfield, age 40, of New Haven, Connecticut, was sentenced today to serve 12 years in prison, to be followed by 6 years of post-imprisonment supervised release, for conspiring to distribute the controlled substance methylone.
The announcement was made by U.S. Attorney Richard S. Hartunian and Special Agent in Charge James J. Hunt, New York Division, U.S. Drug Enforcement Administration (DEA).
Methylone is an analogue of MDMA – and often marketed as ecstasy – that has been a scheduled drug since October 2011.
On April 22, 2016, after a 4-day trial, a jury convicted Canfield of conspiring with others to distribute methylone, as well as on 8 counts of using a communication facility to facilitate the commission of a felony under the Controlled Substances Act.
The evidence at trial demonstrated that Canfield imported substantial quantities of methylone from manufacturers in China and redistributed that methylone to other distributors in the United States. Canfield made arrangements with co-conspirators to receive, on his behalf, kilograms of methylone from Chinese distributors and sell that methylone to users in the United States and abroad. The evidence at trial further demonstrated that Canfield sold numerous other controlled substances over the Internet, including through an online storefront called “The Online Source.”
Canfield, whose criminal history United States District Judge David N. Hurd described as “virtually uninterrupted,” was also found to have obstructed justice by, among other things, violating a Protective Order that governed the use of evidence in the case.
This case was investigated by the DEA, and was prosecuted by Assistant U.S. Attorneys Jeffrey C. Coffman and Wayne A. Myers.
Broken Arrow Man Pleads Guilty to Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that CHARLES DWANE BROWN, age 43, of Broken Arrow, Oklahoma, pled guilty to FELON IN POSSESSION OF FIREARM, 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 fine or both.
The Indictment alleged that on or about May 6, 2016, within the Eastern District of Oklahoma, the defendant, CHARLES DWANE BROWN a/k/a Charles Dewayne Brown, a/k/a Charles Duane Brown, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm.
Charges arose from an investigation by the McCurtain County Sheriff’s Office, the Oklahoma State Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
Assistant United States Attorney Dean Burris represented the United States.