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Wednesday 3 August 2016
Federal Court Permanently Bars Maryland Tax Preparer from Preparing Federal Tax ReturnsRead the Press Release
The U.S. District Court for the District of Maryland has permanently barred Lateisha Kone aka Vanessa Dickens of Baltimore, Maryland, from preparing federal tax returns for others, the Justice Department announced today.
The civil injunction order prohibits Kone from acting as a federal tax return preparer and from owning, operating, or profiting from a tax-return preparation business. Kone agreed to the entry of the injunction but did not admit the allegations in the civil complaint against her.
According to the complaint, Kone owned and operated six Liberty Tax Service franchise stores in Baltimore. Kone and her employees allegedly prepared federal income tax returns that, among other things, contained bogus Schedules C (Profit or Loss from Business) and intentionally omitted Form W-2 (Wage and Tax Statement) income and Social Security Income. These fraudulent returns improperly generated federal income tax refunds and tax credits, such as the Earned Income Tax Credit, for Kone’s clients, according to the complaint.
The government alleges that Kone and her employees filed 1,222 returns that reported fictitious household help income (HSH Income). Many of the returns allegedly reported substantially the same amount of HSH income, which generated fraudulent Earned Income Tax Credits and federal tax refunds. Kone then kept each refund as a preparation fee while the customers only received a $50 cash payment as part of the Liberty Tax “Cash-In-A-Flash” promotion, according to the complaint.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. The IRS has some tips on its website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Fairfax Man Arrested for Attempting to Support ISILRead the Press Release
ALEXANDRIA, Va. – Nicholas Young, 36, of Fairfax, who is employed as a police officer with the Metro Transit Police Department, was arrested today on charges of attempting to provide material support to a designated foreign terrorist organization. Young will have his initial appearance here at 2 p.m. today in front of U.S. Magistrate Judge Theresa C. Buchanan.
According to the affidavit filed in support of the criminal complaint, Young has been employed as a police officer with the Metro Transit Police Department since 2003. Law enforcement first interviewed Young in September 2010 in connection with his acquaintance, Zachary Chesser, who one month later pleaded guilty to providing material support to terrorists. Over the next several years Young had numerous interactions with undercover law enforcement officers and a cooperating witness regarding Young’s knowledge or interest of terrorist related activity, many of which were recorded. Law enforcement also interviewed Young’s family and co-workers. Several meetings Young had with an undercover law enforcement officer in 2011 included another of Young’s acquaintances, Amine El Khalifi, who later pleaded guilty to charges relating to attempting a suicide bombing at the U.S. Capitol Building in 2012.
According to the affidavit filed in support of the criminal complaint, Young told FBI agents that he traveled to Libya twice in 2011 and he had been with rebels attempting to overthrow the Muammar Qaddafi regime. Baggage searches revealed that Young traveled with body armor, a kevlar helmet, and several other military-style items.
According to the affidavit filed in support of the criminal complaint, in 2014, Young met on about 20 separate occasions with an FBI confidential human source (CHS) posing as a U.S. military reservist of Middle Eastern descent who was becoming more religious and eager to leave the U.S. military as a result of having had to fight against Muslims during his deployment to Iraq. During these conversations Young advised CHS on how to evade law enforcement detection by utilizing specific travel methods and advised CHS to watch out for informants and not discuss his plans with others.
According to the affidavit filed in support of the criminal complaint, in Fall 2014, CHS led Young to believe that he had successfully left the United States and had joined ISIL. In reality, CHS had no further contact with Young. All further communications between Young and CHS’s email account were actually communications between Young and FBI undercover personnel posing as CHS. In June 2015, Young emailed CHS asking for advice from CHS’s commanders on how to send his money overseas. Young said, “[u]nfortunately I have enough flags on my name that I can’t even buy a plane ticket without little alerts ending up in someone’s hands, so I imagine banking transactions are automatically monitored and will flag depending on what is going on.”
According to the affidavit filed in support of the criminal complaint, in December 2015, the FBI interviewed Young, ostensibly in connection with an investigation into the whereabouts of CHS. Young said that CHS had left the United States to go on a vacation tour in Turkey approximately one year ago. Young said that he knew of no one in the United States or overseas who helped CHS cross the Turkish border into Syria.
According to the affidavit filed in support of the criminal complaint, on July 18, 2016, Young communicated with whom he believed to be CHS regarding purchasing of gift cards for mobile messaging accounts ISIL uses in recruiting. On July 28, 2016, Young sent 22 sixteen digit gift card codes to the FBI undercover with a message that stated: “Respond to verify receipt . . . may not answer depending on when as this device will be destroyed after all are sent to prevent the data being possibly seen on this end in the case of something unfortunate.” The codes were ultimately redeemed by the FBI for $245.
Young faces a maximum penalty of 20 years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office. The case is being prosecuted by Assistant U.S. Attorneys Gordon D. Kromberg and John T. Gibbs, and Trial Attorney David Cora of the National Security Division.
The Metro Transit Police Department initiated this investigation and continues to work collaboratively with the FBI Washington Field Office Joint Terrorism Task Force on 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. 1:16-MJ-355.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Downtown Newark Heroin and Oxycodone Dealer Pleads Guilty to Drug Distribution ConspiracyRead the Press Release
NEWARK, N.J. – A Newark man today admitted distributing large quantities of heroin in and around downtown Newark, U.S. Attorney Paul J. Fishman announced today.
Jarez Baron a/k/a “Little Bro,” 28, of Newark, pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to a superseding information charging him with conspiracy to distribute 100 grams or more of heroin.
According to documents filed in this case and statements made in court:
Between February 2013 and August 7, 2013, Baron conspired with others to distribute large quantities of heroin and oxycodone out of a downtown Newark clothing store called Ballas Boutique. Over the course of the conspiracy, Baron and others sold drugs out of Ballas Boutique to a confidential source more than 35 times. The majority of the sales were audio and video recorded.
Additionally, law enforcement intercepted conversations of Baron and his conspirators pursuant to court orders. The intercepted conversations revealed that Baron and other employees sold drugs for Lamont Vaughn at Ballas Boutique.
On Aug. 7, 2013, law enforcement officers executed arrest and search warrants at Ballas Boutique and at Vaughn and Baron’s home in Newark. Among the items recovered were dozens of oxycodone pills, two firearms, and a large amount of cash.
The conspiracy charge carries a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for Nov. 21, 2016.
Vaughn previously pleaded guilty on June 22, 2016, to conspiracy to distribute 100 grams or more of heroin and oxycodone and to being a felon in possession of two firearms.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, as well as the N.J. State Police Street Gangs North Unit with the investigation leading to today’s plea.
The government is represented by Special Litigation Counsel Margaret Ann Mahoney and Assistant U.S. Attorney Francisco J. Navarro of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Frank Arleo, Esq.
Dover Man Second to Plead Guilty in Scheme to Illegally Buy and Smuggle Guns for Indonesian Secret Service MembersRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced that Feky R. Sumual pleaded guilty in federal court to participating in a scheme to illegally buy guns and then smuggle them out of the country for the benefit of members of the protective security detail of the President and the Vice President of the Republic of Indonesia -- also known as the Indonesian Presidential Guard. Sumual pleaded guilty to one count of conspiracy to make false statements in connection with the acquisition of firearms, to make false statements in records required to be kept by federal firearms dealers and to smuggle firearms from the U.S. Sumual is 51 years old and lived in Dover, N.H., before his arrest in this case.
According to statements made during his plea hearing, Sumual joined a conspiracy to buy guns for members of the Indonesian Presidential Guard with the understanding that the Presidential Guard members then would smuggle the guns out of the U.S. Specifically, Sumual admitted that his nephew, Audi N. Sumilat – on active duty with the U.S. Army in El Paso, Texas – and three members of the Presidential Guard came up with the plan in October 2014, when they were stationed together in Fort Benning, Georgia. Sumual further admitted that in September and October 2015, as part of the plan, he purchased guns from federal firearms dealers in N.H. and Sumilat purchased guns from federal firearms dealers in Texas all for members of the Indonesian Presidential Guard, who could not lawfully have bought the guns in the U.S. themselves. The guns – approximately twenty-two of them – were almost all 9 millimeter hand guns. Sumual admitted that, to facilitate the purchases, he and Sumilat certified to the gun dealers from which they bought the guns that they were the actual buyers of the guns even though the actual buyers were the Presidential Guard members.
Sumual further admitted that he delivered the guns to members and representativesof the Presidential Guard in connection with official state visits by the President and Vice-President of Indonesia with the U.N. General Assembly in New York, N.Y., at the end of September 2015, and with the White House at the end of October 2015. The guns Sumual admitted delivering consisted of those that he had bought in New Hampshire and others that Sumilat had acquired in, and shipped to Sumual from Texas. Sumual stated that several individuals working for the Indonesian government or, in some instances, driving vehicles with Indonesian diplomatic license plates, facilitated the deliveries. Sumual acknowledged that he understood that, after he delivered the guns, the members of the Presidential Guard intended to smuggle the illegally purchased guns from the U.S. Lawfully exporting the guns – which were included as defense articles on the U.S. Munitions List – required both an exporter’s license and a license covering the specific guns exported. No such licenses had been issued.
United States District Judge Landya McCafferty accepted Sumual’s guilty plea and scheduled his sentencing for November 17, 2016. Sumual faces a maximum sentence of five years in prison and a fine of $250,000. Sumilat also has pleaded guilty and is expected to be sentenced on October 11, 2016.
This matter was investigated by the Bureau of Alcohol, Tobacco and Firearms in both Manchester, N.H. and El Paso, Texas, as well as Immigration and Customs Enforcement, Homeland Security Investigations, in Manchester, N.H. and Jakarta, Indonesia. The Bureau of Diplomatic Security of the U.S. Department of State, the U.S. Embassy to Indonesia, the Dover (N.H.) Police Department and the Indonesian National Police all provided important support. The case is being prosecuted by Assistant United States Attorney Bill Morse.
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Dorchester Man Charged in $4 Million Bank Fraud ConspiracyRead the Press Release
BOSTON – A Dorchester man was indicted today in U.S. District Court in Boston in connection with a large-scale scheme to withdrawal money from bank accounts.
Charles Washington, 43, was indicted today on one count of bank fraud and four counts of bank fraud conspiracy. In June 2016, Washington was charged in a criminal complaint and is being held without bail.
According to the indictment, Washington obtained bank account information, personally identifiable information (PII), and sample signatures for bank customers with high balances. He recruited “runners” of the same gender and approximate age as the accountholders to impersonate them inside bank branches and to make unauthorized withdrawals. Washington allegedly obtained and gave the runners fake driver’s licenses that bore the runners’ photographs and the victim accountholders’ PII, and instructed the runners on how to forge the victims’ signatures. To avoid detection of the scheme, runners allegedly withdrew money from victims’ accounts at several different bank branches.
Washington and others also allegedly recruited runners to open bank accounts, known as drop accounts, in the name of non-existent businesses that the runners purported to control. The businesses were registered and named as if they were title companies, property management companies, contracting businesses, and other businesses for which incoming large-dollar wire transfers would not be unusual. Washington allegedly provided the drop account information to co-conspirators, who caused unauthorized wire transfers of hundreds of thousands of dollars into the drop accounts. Once the drop accounts were funded with unauthorized wire transfers, Washington and co-conspirators accompanied runners to bank branches to withdraw the money in cash, by check, or by wire transfers to other drop accounts before the victims of the unauthorized wire transfers realized that their accounts had been compromised.
Washington and co-conspirators paid runners, recruiters, and the sources for bank account information and PII a percentage of the proceeds that runners successfully withdrew.
According to court documents, Washington and co-conspirators gained access to approximately $4 million, either in bank accounts that they took over or in proceeds unlawfully wired into drop accounts for withdrawal, and successfully withdrew approximately $2 million.
The charge of bank fraud and bank fraud conspiracy provides for a sentence of no greater than 30 years in prison, five years of supervised release, a fine of $1 million and restitution. 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; Stephen A. Marks, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Boston Police Commissioner William Evans, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Seth B. Kosto of Ortiz’s Cybercrime Unit.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Deputy Attorney General Sally Q. Yates Statement on the President's Recent Clemency DecisionRead the Press Release
Deputy Attorney General Sally Q. Yates released the following statement following President Obama’s commutation of 214 sentences today:
"Today's historic announcement is yet another step in the administration's efforts to restore proportionality to unnecessarily long drug sentences. In just the first eight months of 2016, the President has more than doubled the number of commutations granted in all of 2015. But we are not done yet, and we expect that many more men and women will be given a second chance through the Clemency Initiative."
Connecticut Man Sentenced to 89 Months in Federal Prison for Heroin DealingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, on August 2, 2016, Nathan Minervini, 37, of East Haven, Connecticut, was sentenced to 89 months in federal prison after his guilty plea to charges that he conspired to distribute heroin. Chief U.S. District Court Judge Christina Reiss also ordered that Minervini serve five years of supervised release after his prison term.
According to court records, between late 2014 and his arrest in Connecticut on May 7, 2015, Minervini transported significant quantities of heroin from Connecticut to Vermont for re-distribution. In 2009, Minervini pled guilty in the U.S. District Court for the District of Connecticut to charges that he conspired to distribute cocaine. For that offense, Minervini was sentenced to 40 months in federal prison followed by five years of supervised release. Minervini was serving that term of supervised release in Connecticut while he was trafficking heroin to Vermont 2014 and 2015.
While engaged in the Vermont heroin distribution conspiracy, Minervini used a co-conspirator to purchase three handguns at a Vermont gun store. Minervini traded heroin and cash for these firearms and brought them to Connecticut.
After a lengthy investigation by the Burlington Police Department (BPD) narcotics unit and the Drug Enforcement Administration, on May 6, 2016, law enforcement obtained a federal criminal complaint charging that Minervini distributed heroin. When federal agents attempted to arrest Minervini in a residential neighborhood in West Haven, Connecticut on May 7, 2015, he attempted to escape. Minervini repeatedly crashed his car into law enforcement vehicles and fled down a residential street, striking several vehicles in the process. Ultimately, Minervini hit a school bus carrying kindergarten children and his vehicle was disabled. None of the children were injured although a number were brought to the hospital as a precautionary measure. Following the crash, Minervini ran from his car and led agents on a foot chase through the neighborhood. While doing so, Minervini dropped a semi-automatic handgun that had been previously purchased for him in Vermont. The handgun was loaded and had a round in its chamber. Agents were finally able to stop Minervini as he attempted to scale a chain link fence. From Minervini’s person, agents recovered heroin and approximately $4,415 in cash.
Minervini was the last of five defendants to be sentenced in this conspiracy prosecution. On March 21, 2016 Judge Reiss sentenced Stephen Boles, 23, of Williston, Vermont to time served followed by three years of supervised release. According to court records, Boles was a Vermont dealer who sold Minervini’s heroin to Vermont customers and supplied Minervini with handguns.
On April 1, 2016, Judge Reiss sentenced Corey Rispoli, 23, of West Haven, Connecticut to 24 months in federal prison followed by four years of supervised release. According to court records, Rispoli trafficked heroin and cash on Minervini’s behalf during the conspiracy.
On April 11, 2016, Judge Reiss sentenced Brandon Morel, 25, of Colchester, Vermont to time served followed by two years of supervised release. According to court records, Morel was a Vermont dealer who sold Minervini’s heroin to Vermont customers.
On April 14, 2016, Judge Reiss sentenced Samuel Wormer, 27, of Essex, Vermont, to 12 months and one day in federal prison followed by three years of supervised release. According to court records, Wormer was a Vermont dealer who sold Minervini’s heroin to Vermont customers and supplied Minervini with handguns. Wormer had purchased the handgun Minervini was carrying when he was arrested in Connecticut.
For the heroin conspiracy, Minervini faced a statutory maximum term of 20 years in prison. The United States Sentencing Guidelines, which are advisory, recommended that Minervini serve between 84 and 105 months. The Guidelines also recommended that Minervini serve between 15 and 21 months for violating his conditions of supervised release in Connecticut and that this sentence run consecutively to the prison term imposed for the heroin conspiracy. The United States asked Judge Reiss to impose an overall sentence of 105 months for both the heroin conspiracy and the violation of supervised release. Minervini requested a 65-month sentence.
In determining that an 89-month overall sentence was appropriate, Judge Reiss considered the gravity of Minervini’s offense, the harm heroin has caused to the Vermont community, Minervini’s serious criminal record, and the fact that Minervini armed himself with Vermont handguns while selling heroin.
United States Attorney Eric Miller commended the efforts of DEA, the BPD narcotics unit, and the U.S. Marshals. United States Attorney Miller noted that this case is part of the U.S. Attorney’s Office’s Vermont Heroin Initiative, which is a coordinated effort by the U.S. Attorney’s Office and federal, state, and local law enforcement agencies to combat heroin distribution in Vermont.
According to United States Attorney Miller, this prosecution is an excellent example of teamwork between DEA and the Burlington Police Department who worked together to identify and then dismantle a significant pipeline of heroin into the Chittenden County community. Miller stated that “such coordination between federal and local law enforcement is essential to reducing the flow of heroin into Vermont.” United States Attorney Miller also highlighted that this prosecution demonstrates the United States Attorney’s Office’s commitment to holding out-of-state heroin traffickers and their Vermont co-conspirators accountable for their crimes.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Minervini is represented by Burlington defense attorney Karen Shingler. Samuel Wormer is represented by Maryanne Kampmann from the Burlington law firm Stetler, Allen & Kampmann. Stephen Boles is represented by Mark Kaplan from the Burlington law firm Kaplan and Kaplan. Brandon Morel is represented by David Watts from the Burlington law firm Blodgett, Watts, Volk & Sussman. Corey Rispoli is represented by Christopher Davis from the Vermont law firm Langrock Sperry & Wool.
Collinsville Man Sentenced on Drug, Gun ChargesRead the Press Release
DANVILLE, VIRGINIA – A Collinsville man, who previously pled guilty to federal drug and gun charges, was sentenced yesterday in the United States District Court for the Western District of Virginia in Danville, United States Attorney John P. Fishwick announced.
Gordon Lawrence Penn, 62, of Collinsville, Va., previously pled guilty to one count of possession with the intent to distribute cocaine and one count of possessing a firearm in furtherance of a drug trafficking crime. Yesterday in District Court, Penn was sentenced to 61 months in federal prison.
“We remain committed to ridding our communities of illegal drugs and guns,” United States Attorney Fishwick said today. “This sentence reflects how seriously we take these crimes and should serve as an example to others partaking in similar criminal activity.”
The investigation of the case was conducted by the Martinsville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Clinton County Man to Serve 45 Years in Prison for Child Pornography OffensesRead the Press Release
Miguel Angel Vasquez Torres, 34, from Beckemeyer, Illinois, was sentenced on August 2, 2016, in the U.S. District Court to 45 years in prison for Production of Child Pornography, Distribution of Child Pornography and Receipt of Child Pornography, United States Attorney Donald S. Boyce announced today. Vasquez Torres was also ordered to pay a $300 special assessment. When he is released from prison he will be on federal supervised release for an additional 10 years.
Documents filed in the U.S. District Court establish that in May 2015, the Federal Bureau of Investigation received information from the National Center for Missing and Exploited Children (NCMEC) CyberTipline regarding an individual who was uploading child pornography to a Photobucket.com cloud storage account. A search of the Photobucket account revealed that the account belonged to Miguel Angel Vasquez Torres and that it contained numerous video and image files containing child pornography. During a subsequent search of Vasquez Torres’ residence, law enforcement officers seized two cellular telephones and numerous other items of computer media.
Vasquez Torres was interviewed by law enforcement officers and admitted to downloading and distributing video files containing child pornography. He also admitted that he had repeatedly sexually abused a minor over the course of several years and that he had photographed his acts of sexual abuse of the minor victim. A forensic examination of Vasquez Torres’ iPhone 5 revealed approximately 22 video files containing child pornography that he had distributed and received using an internet-based messaging system. The forensic examination of his Samsung Galaxy revealed approximately 440 images which depict Vasquez Torres’ sexual abuse of the minor victim.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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."
This investigation was conducted by the Madison County Sheriff’s Department, the Federal Bureau of Investigation’s Metro East Cyber Crimes and Analysis Task Force, and the Clinton County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Ali Summers.
Cheyenne, Wyoming Resident Richard Patrick Person Sentenced for Possession of Largest Collection of Child Pornography in the United StatesRead the Press Release
Cheyenne – U.S. Attorney Christopher A. Crofts announced today that sixty-three year old Cheyenne, Wyoming resident Richard Patrick Person was sentenced by Chief United States District Court Judge Nancy D. Freudenthal on August 2, 2016, to 235 months of imprisonment, to be followed by ten years of supervised release and was ordered to pay $5,000 in restitution for possession of child pornography.
The Wyoming Internet Crimes Against Children Task Force (ICAC), using state of the art investigative techniques discovered that Person was using a sophisticated file sharing program to seek out and possess child pornography. They executed a search warrant at his residence located in South Cheyenne and seized several computers and numerous electronic storage devices. The computing devices seized from Person had approximately 47 TERABYTES of storage capacity. To put that in perspective, 1 terabyte holds approximately 1000 hours of standard definition video – or approximately 310,000 photos.
Wyoming Division of Criminal Investigation Special Agent Mark Timmons, the lead investigator on the case, has expended over 400 hours analyzing the child pornography possessed by Person.
Agent Timmons has submitted to the National Center for Missing & Exploited Children (NCMEC) approximately 10 million files he believes depict children engaged in sexually explicit conduct. He has an additional 7 million files that he is getting ready to ship off for analysis. The pornographic files possessed by Person include both movies and still images.
According to NCMEC and the National ICAC association this is the largest cache of child pornography ever seized in the United States.
Person has a prior conviction for sexual assault on a child.
Centreville Man Sentenced for Selling Heroin and Crack CocaineRead the Press Release
Wilbert M. Sewell, 37, of Centreville, Illinois, was sentenced to 37 months in federal prison on August 2, 2016, in U.S. District Court in East St. Louis, Illinois, Donald S. Boyce, United States Attorney for the Southern District of Illinois announced today. Sewell pled guilty on April 5, 2016, to four federal felony charges, including distribution of heroin, and possession with intent to distribute heroin and crack cocaine.
At his change of plea hearing in April, Sewell admitted selling heroin, crack cocaine and cocaine to a police informant in East St. Louis on four separate occasions between August and October, 2015.
The investigation which resulted in Sewell’s arrest and conviction was conducted by the Drug Enforcement Administration (DEA) and by the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI).
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Boston Man Sentenced for Possession of a Firearm and AmmunitionRead the Press Release
BOSTON – A Boston man was sentenced today in U.S. District Court in Boston in connection with being a convicted felon in possession of a firearm and ammunition.
Ralph Alexandre, 45, was sentenced by U.S. District Court Judge Richard G. Stearns to 40 months in prison and three years of supervised release. In April 2016, Alexandre pleaded guilty to being a felon in possession of a firearm and ammunition.
In October 2014, a cooperating witness provided information to federal agents that Alexandre was attempting to sell firearms. On October 21, 2014, federal agents arranged for the witness to meet with Alexandre at a location in Dorchester. At the meeting, Alexandre sold the witness a .44 caliber Smith and Wesson revolver. The revolver was loaded with one round of .44 caliber ammunition.
United States Attorney Carmen M. Ortiz; Lawrence J. Panetta, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco Firearms & Explosives, Boston Field Division; and Boston Police Commissioner William Evans, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Bedford man and California man indicted for distributing three kilograms of fentanylRead the Press Release
A Bedford man was indicted for possessing more than six pounds of fentanyl, as well as illegally having firearms, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Norman L. Hunter, 43, is accused of distributing more than three kilograms of fetanyl as well as illegally possessing five firearms, despite a previous felony conviction.
Matthew A. Martin, 31, of San Diego, is also named in the three-count superseding indictment, accused of distributing more than three kilograms of fentanyl.
"Fentanyl is killing hundreds of people in our community," Rendon said. "It's vital that we target people who sell this drug while also working to reduce demand and getting help for those who need it."
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses, and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Vasile Katsaros following an investigation by the Drug Enforcement Administration.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Baltimore Man Sentenced to 5 Years in Federal Prison for Setting Fire to Store During the Baltimore RiotsRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Darius Raymond Stewart, age 22, of Baltimore, Maryland today to five years in federal prison, followed by three years of supervised release, for malicious destruction of property by fire, arising from the arson of a liquor store on April 27, 2015, during the riots following the death of Freddie Gray. One victim was seriously injured inside the store, and another escaped with minor injuries. Judge Garbis also ordered that Stewart pay restitution of $378,526.56, the approximate cost to repair and restore the building.
“Surveillance cameras recorded Darius Stewart setting fire to a store with people inside, while other rioters viciously attacked the store owner,” said U.S. Attorney Rod J. Rosenstein. “When the evidence proves that criminals destroyed property and jeopardized lives, they must be held accountable.”
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Baltimore Field Division; Maryland State Fire Marshal Brian Geraci; and Commissioner Kevin Davis of the Baltimore Police Department.
According to his plea agreement, on April 27, 2015, during civil unrest in the wake of the funeral for Freddie Gray, there was widespread looting, and multiple structure and vehicle fires were set in Baltimore. The two owners of a liquor store located on West North Avenue were inside their store when the first wave of approximately 20 to 30 people entered the business and began banging on the bulletproof plexiglass window with pipes and crow bars. The group was chased off by a community member.
Shortly thereafter, a second wave of approximately 150 people entered the business and began ransacking and looting the store. One of the business owners was assaulted, including by Trevon Green, resulting in a facial injury, and was eventually rescued by police. Baltimore CitiWatch surveillance footage captured individuals robbing and repeatedly assaulting the owner as he was outside his store while it was being looted.
The second owner fled upstairs and was able to hide on an enclosed balcony as the looters broke down the door and looted the second floor.
At approximately 8:30 p.m. that night, Stewart set three fires inside the store. Surveillance footage clearly captured Stewart starting the fires and then going out to the street to get paper and cardboard to feed the fires he had set.
Smoke from the fires spread upstairs where the second owner was hiding. He was able to escape the burning building by using the gutter in an effort to slow his fall as he jumped to the ground. He suffered head trauma and injured his ankle. He was able to escape in his vehicle.
Baltimore City Fire Department responded to the scene. While extinguishing the fire, fire department personnel discovered an unconscious victim in the basement of the building. The victim suffered smoke inhalation and carbon monoxide poisoning, and was hospitalized for five days.
The investigation into arsons that occurred on April 27, 2015, is continuing. Anyone with information is urged to call the ATF hotline, 1-888-ATF-FIRE (1-888-283-3473). ATF continues to offer a reward of up to $10,000 for information leading to the arrest and conviction of any individual responsible for these incidents.
Federal prosecutors previously have charged four other defendants for arson crimes committed during the Baltimore riots on April 27, 2015. Trevon Green, age 23, of Baltimore, pleaded guilty to the arson of a Baltimore food market and admitted that he participated in the looting of the liquor store set on fire by Stewart, and assaulted the store’s owner. Green is scheduled to be sentenced on August 24, 2016, at 3:00 p.m. Gregory Lee Butler, Jr., a/k/a Greg Baly, age 22, of Baltimore, pleaded guilty to the federal indictment charging him with obstruction of firefighters during a civil disorder, and is scheduled to be sentenced on September 20, 2016. Donta Betts, age 20, of Baltimore, was sentenced to 15 years in prison for making a destructive device in connection with the April 27, 2015, riots in Baltimore and, in an unrelated case, for discharge of a firearm in furtherance of a drug trafficking crime on July 2, 2015. Raymon Carter, age 25, of Baltimore, Maryland, pleaded guilty to the federal crime of rioting, including the arson of the CVS Pharmacy on April 27, 2015, and was sentenced to four years in prison and ordered to pay restitution of $500,000.
United States Attorney Rod J. Rosenstein commended ATF, Maryland State Fire Marshal’s Office, and the Baltimore City Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
Bailey Boys Gang Member Pleads Guilty to 2012 Murder in Martin Luther King Park; Wounding of Four OthersRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Tariq Brown, 23, of Buffalo, NY, pleaded guilty to RICO Conspiracy in connection with the May 12, 2012 shooting at Martin Luther King Park that left Marquay Lee dead and four other individuals wounded before Senior U.S. District Judge William M. Skretny. Two of the injured persons suffered permanent injuries, one victim is now a paraplegic and another was blinded in one eye. The charges carry a maximum penalty of life in prison and a $250,000 fine.
“Given that this horrific crime occurred in a park named for a man whose life was dedicated to non-violence, it is certainly significant to today remove from our streets one who so callously injured residents trying to enjoy the company of family and friends,” said U.S. Attorney Hochul."
According to Assistant U.S. Attorney Meghan A. Tokash, who is handling the prosecution of this case, Brown is alleged to be a member of the Bailey Boys Gang, a violent criminal gang which operates in an area of the City of Buffalo bounded by Winspear Avenue, the Kensington Expressway, Eggert Road and Main Street. The defendant Brown already stands accused of three other attempted murders which injured two people.
As a result of the ongoing investigation into the Bailey Boys Gang, members now stand accused of four murders, 14 attempted murders, including four drive-by shootings. The attempted murders include a shooting that occurred during a neighborhood party with numerous children present and a shooting that occurred during a robbery. A total of 11 were arrested and to date, seven defendants have been convicted. 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.
The plea is the result of an ongoing investigation on the part of the United States Attorney’s Office in close cooperation with the Erie County District Attorney’s Office, under the direction of Acting District Attorney Michael Flaherty, the Buffalo Police Department, under direction of Police Commissioner Daniel Derenda, the Federal Bureau of Investigation’s Safe Streets Task Force, under the Direction of Special Agent in Charge Adam S. Cohen, the Erie County Sheriff’s Office, under the direction of Sheriff Timothy B. Howard, the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division. The Safe Streets Task Force includes the Amherst Police Department, the Buffalo Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Erie County Sheriff’s Department, the Hamburg Police Department, the Niagara Frontier Transportation Authority Police, the New York State Police, Town of Tonawanda Police Department, the U.S. Border Patrol, the U.S. Immigration and Customs Enforcement, Homeland Security Investigations, the U.S. Immigration and Customs Enforcement, Office of Enforcement & Removal Operations.
Sentencing is scheduled for December 5, 2016 at 2:00 p.m. before Judge Arcara.
Abita Springs Man Sentenced for Marijuana OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALFRED FLINT, JR., age 59, of Abita Springs, was sentenced today after previously pleading guilty to a one-count Bill of Information for possession with intent to distribute 27 kilograms of marijuana.
U.S. District Judge Susie Morgan sentenced FLINT to 3 years of probation and a $100 special assessment fee.
According to court documents, on April 27, 2015, agents from Homeland Security Investigations received information that 2 packages containing 27 kilograms of marijuana were being sent to Abita Springs, Louisiana from Memphis, Tennessee. The packages were originally sent from Mexico and were addressed to Flint Plastering, Inc. On April 29, 2015, an undercover agent made a controlled delivery to a residence owned by FLINT. The agents then served a search warrant and recovered the marijuana as the packages were being opened by another individual in his garage. FLINT stated that he had allowed the other individual to use his address in order to receive the marijuana. FLINT stated that he was paid $500 for each package he received.
U.S. Attorney Polite praised the work of Homeland Security Investigations, Customs and Border Protection, Louisiana State Police, and St. Tammany Sheriff’s Office in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
26 Years Later, Pharr Woman Convicted of Failing to Report to PrisonRead the Press Release
McALLEN, Texas – A 47-year-old U.S. citizen who had been residing in Mexico has entered a guilty plea to failure to appear, announced U.S. Attorney Kenneth Magidson.
Lorena Salazar-Galvan was previously convicted of importing and possessing with the intent to distribute 79 pounds of marijuana. In 1990, U.S. District Judge Ricardo H. Hinojosa sentenced her to 27 months in federal prison. She had been permitted bond throughout the court proceedings and was permitted to remain there pending surrender to the U.S. Marshals Service on Feb. 26, 1990.
She did not appear and a warrant was issued for her arrest. She was then also charged with failure to appear.
On May 26, 2016, She was apprehended as she attempted entry into the United States at the Pharr Port of Entry.
Today, she pleaded guilty.
She has been in custody since her 2016 arrest where she will remain pending sentencing. Judge Hinojosa is presiding over this case as well and has set sentencing for Oct. 7, 2016. At that time, she faces up to five years in federal prison for failing to report to prison as well as $250,000 fine.
The U.S. Marshals Service conducted the investigation on the failure to appear matter. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
Tuesday 2 August 2016
Wilkinsburg Man Gets 2-Year Prison Sentence for Crack Cocaine Distribution SchemeRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to 25 months’ imprisonment on his conviction of conspiracy to distribute a quantity of crack cocaine, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Larry Washington, 65, of Wilkinsburg, Pa.
According to information presented to the Court, in 2013, the Federal Bureau of Investigation and other agencies joined forces in a multi-agency wiretap investigation of drug trafficking and violence in the Homewood section of Pittsburgh. The interception of wire and electronic communications began in December 2013 and continued through the end of August 2014. During that timeframe, Larry Washington conspired with others to possess with intent to distribute and distribute crack cocaine, which was shipped from California in powder form to the Western District of Pennsylvania through the United States Postal Service or commercial carrier.
Prior to imposing sentence, Judge Hornak stated that the sentence was sufficient but not greater than necessary to fulfill the purposes of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police Department for the investigation leading to the successful prosecution of Washington.
Wichita Man Sentenced to 9+ Years on Federal Firearm ChargeRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced Monday to 115 months in prison for committing a federal gun crime, Acting U.S. Attorney Tom Beall said.
Robby Alan Murphy, 35, Wichita, Kan., pleaded guilty to one count of unlawful possession of a firearm following a felony conviction. He entered the plea in May during the afternoon of the second day of his trial on the charges. During trial, prosecutors presented evidence that Murphy was armed with a handgun on April 18, 2015, when and a co-defendant attempted to rob a drug dealer at this home near Cheney, Kan.
Murphy had a previous federal firearm conviction and was prohibited from possessing a gun.
Co-defendant Byron Cadavid was sentenced to 38 months in federal prison
Beall commended the Sedgwick County Sheriff’s Office and Assistant U.S. Attorney David Lind of their work on the case.
Whitehorn Woman Sentenced to 12 Months’ Imprisonment for Environmental Damage from Marijuana Grow on National Conservation LandRead the Press Release
SAN FRANCISCO – Melinda Van Horne was sentenced today to 12 months and a day in prison for damaging national conservation land through her marijuana cultivation operation, announced United States Attorney Brian J. Stretch.
Van Horne, 43, of Whitethorn, pleaded guilty on March 23, 2016, to depredation against the property of the United States. According to the plea agreement, Van Horne admitted to causing over $100,000 in environmental damage to federal lands in the King Range National Conservation Area through her marijuana cultivation operation. In October 2007, Van Horne purchased a house next to Paradise Ridge in Humboldt County, Calif. Paradise Ridge is part of a congressionally designated National Conservation Area administered by the Bureau of Land Management for the conservation and protection of public lands for the benefit and enjoyment of present and future generations. In 2008, Van Horne made a proposal to the government offering to trade portions of her private property in exchange for the federal conservation land. The Bureau of Land Management rejected the trade based on the national conservation status of the land. Van Horne nonetheless decided to proceed with her marijuana cultivation operation, causing substantial damage to the protected area.
“Marijuana cultivation operations on public lands present an ongoing threat to these important national resources,” said United States Attorney Brian J. Stretch. “This office will protect these vital wilderness areas from the marijuana growers who endanger public safety and leave environmental destruction in their wake.”
With Van Horne’s consent and knowledge, and later at her direction, vegetation was stripped from portions of the federally managed conservation area, land was excavated and graded, and eleven greenhouses and other structures were constructed on federal lands. The work was done in order to grow marijuana plants for sale. Van Horne also used facilities that diverted water from the nearby Bridge Creek to irrigate the marijuana plants. The bulldozing and excavation of federal land caused that land to become unstable and to erode into two rivers that provide crucial spawning and rearing habitats for threatened and federally protected salmon and steelhead.
In September 2013, agents executing warrants to search the property found 1,654 marijuana plants growing on federal land and in the garage of the adjoining house. The agents also found over 17 kilograms of marijuana at another location where Van Horne was residing. Van Horne admitted growing marijuana with at least five other people and admitted she was one of the organizers of the operation.
Van Horne was indicted by a federal Grand Jury on November 17, 2015. She was charged with conspiracy to distribute marijuana, in violation of 21 U.S.C. § 846; possession with intent to distribute 1,000 or more marijuana plants, in violation of 21 U.S.C. § 841(a)(1) and 841(b)(1)(A)(vii); possession with intent to distribute marijuana, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C); maintaining a place for manufacturing marijuana, in violation of 21 U.S.C. § 856(a); and depredation against property of the United States, in violation of 18 U.S.C. § 1361. Under the plea agreement, Van Horne pleaded guilty to the depredation against property of the United States.
The sentence was handed down by the Honorable Charles R. Breyer, U.S. District Judge, following a guilty plea to depredation against property of the United States, in violation of 18 U.S.C. § 1361. In addition to the prison term, Judge Breyer also sentenced the defendant to perform 300 hours of community service, ordered the defendant to pay restitution, and ordered her to serve a three-year period of supervised release. Bureau of Land Management engineers estimate the cost to repair the damage at $107,754, which Van Horne has agreed to pay as restitution in connection with her guilty plea. The defendant will begin serving the sentence on November 4, 2016.
Assistant U.S. Attorney Rita F. Lin is prosecuting the case with the assistance of Theresa Benitez, Rawaty Yim, and Marina Ponomarchuk. The prosecution is the result of an investigation by the Bureau of Land Management and Drug Enforcement Administration.
Wheeling man pleads guilty to oxycodone distributionRead the Press Release
WHEELING, WEST VIRGINIA – Ronnell A. Williams, 41, of Wheeling, West Virginia, pled guilty to distributing oxycodone in federal court today, United States Attorney William J. Ihlenfeld, II, announced.
Williams admitted to distributing oxycodone in Ohio County, WV in February 2016. He pled guilty to one count of “Distribution of Oxycodone.”
He faces up to twenty years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Wheeling Island men facing federal drug and gun chargesRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury returned indictments charging two men from Wheeling Island with drug and gun charges, United States Attorney William J. Ihlenfeld, II, announced.
Clarence William Bertram, 24, and Justin Thomas Mann, 28, both of Wheeling Island are now facing criminal charges in federal court.
Bertram has been charged with one count of “Maintaining Drug-Involved Premises,” three counts of “Distribution of Cocaine Base within 1,000 feet of a Protected Location,” and one count of “Felon in Possession of Firearm.” He faces up to twenty years in prison and a fine up to $500,000 for the maintaining a drug-involved premises count; up to 60 years in prison and a fine up to $2,000,000 for each of the distribution counts; and up to ten years in prison and a fine of up to $250,000 for the firearm charge.
Mann, has been charged with three counts of “Distribution of Heroin” that allegedly occurred in February 2016. He faces up to twenty years in prison and a fine up to $1,000,000 for each count.
Both Bertram and Mann are alleged to have engaged in drug trafficking on Wheeling Island in 2016.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Randolph J. Bernard is handling the cases on behalf of the government. Special Assistant U.S. Attorney, also of the West Virginia Attorney General’s Office, is assisting with the Mann case. The Ohio Valley Drug and Violent Crime Task Force is investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.U.S. Attorney Stanton to Participate in National Night Out 2016Read the Press Release
Memphis, TN – U.S. Attorney Edward L. Stanton III will join law enforcement and community leaders on Tuesday, August 2nd as part of the annual National Night Out crime and drug prevention event.
"National Night Out is a perfect opportunity for citizens to stand in solidarity with their neighbors, community stakeholders and law enforcement officials," said U.S. Attorney Stanton. "Collaborative events like this help restore and strengthen community trust with law enforcement as we work together to make our neighborhoods safer places to live, work and worship."
National Night Out is designed to: heighten crime and drug prevention awareness; generate support for and participation in local anticrime efforts; strengthen neighborhood spirit and police-community partnerships; and send a message to criminals letting them know neighborhoods are organized and fighting back.
National Night Out organizers are expecting over 16,000 communities and 38 million people nationwide to take part in community events today.
Two Men Indicted on Federal Drug Charges in Related CasesRead the Press Release
ROCKFORD — Two men were indicted today by a federal grand jury in Rockford, Ill., on drug charges in related cases.
GILBERTO VENEGAS-GARZA, 48, of Houston, Texas, was charged with one count of distributing cocaine on June 28, 2016. CONSTANCIO PALOMINO-CHAVEZ, 34, of Rockford, was charged with possessing cocaine with intent to distribute, also on June 28, 2016.
According to a criminal complaint, on June 28, 2016, Venegas-Garza drove a van from Bedford Park, Ill. to Rockford where he met with Palomino-Chavez. They went to a residence on Newberg Road. A short time later Venegas-Garza drove away. Venegas-Garza was stopped for a traffic offense by Illinois State Police officers. Inside the van officers discovered approximately $5,000 in U.S. currency and a hidden “trap” compartment, according to the complaint. Officers searched the Newberg Road residence and found five kilograms of cocaine under the floorboards of a shed, according to the complaint. Venegas-Garza and Palomino-Chavez were both arrested and have remained in custody since their arrest on June 28, 2016.
Distribution of cocaine and possession with intent to distribute cocaine each carry a maximum penalty of up to 20 years in prison, at least three years of supervised release following imprisonment, and a fine of up to $1 million. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment is only a charge and is not evidence of guilt. Each defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The indictments were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Dennis Wichern, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; and Leo P. Schmitz, Director of the Illinois State Police.
The government is represented by Assistant U.S. Attorney Margaret J. Schneider.
Palomino-Chavez Indictment
Venegas-Garza Indictment
Third Circuit Affirms United States’ Forfeiture and Ownership of Double Eagle CoinsRead the Press Release
PHILADELPHIA – United States Attorney Zane David Memeger announced that the United States Court of Appeals for the Third Circuit, sitting en banc, issued a ruling on Monday, August 1, 2016, concluding that the United States had a right to keep ten 1933 $20 gold coins that have been the subject of years of litigation. In 2011, a jury had determined that the coins were forfeited to the United States as stolen property from the United States Mint, and District Court Judge Legrome D. Davis additionally declared that the coins had always been the property of the United States. In 2015, a panel of the Court of Appeals vacated that decision, holding that government employees had violated a deadline for administrative action to obtain adjudication of the coins’ ownership. Today’s decision asserts that the government did not violate any deadline, and reinstates the decisions of the jury and the district court validating the government’s title to its property.
The 1933 coins, known as Double Eagles, are twenty dollar gold pieces that were manufactured by the United States Mint in 1933. The coins were never released to the general public, however, because President Franklin Delano Roosevelt issued Executive Orders taking the United States off the gold standard, prohibiting the Mint from releasing any gold, and requiring all persons to redeem their gold coins for paper currency or non-gold coin. Nevertheless, a number of 1933 Double Eagles gold pieces have surfaced over the ensuing decades.
The Court of Appeals noted in its opinion that the United States Secret Service has investigated this matter since the government first became aware of a 1933 Double Eagle being put up for public auction in 1944. The United States has recovered every 1933 Double Eagle that it was able to locate, including one coin that the government had inadvertently permitted to be exported to King Farouk in Egypt in 1944. That coin was brought back to the United States by a London coin dealer in 1996. It was eventually sold at auction for $7.6 million, with the government and the coin dealer splitting the proceeds.
The Court also noted that the Secret Service investigation determined that all of the recovered pieces were traced back through the Secret Service investigation to Israel Switt, a Philadelphia merchant. After the sale of the Farouk coin, Mr. Switt’s daughter, Joan Langbord, reported finding ten of the coins in a safe deposit box that had previously belonged to her mother.
In its decision, the en banc Court of Appeals affirmed that the ten coins are property of the United States, finding that “the evidence at trial demonstrated overwhelmingly that no 1933 Double Eagle ever left the Mint through authorized channels and any that did were either stolen or embezzled.” The Court noted that the Mint’s records were remarkably detailed, to the level of showing a transaction involving three pennies and their year of minting.
Zane David Memeger, the United States Attorney, stated: “We are gratified for the Third Circuit’s decision recognizing the United States’ ownership of these rare coins.” Rhett Jeppson, Principal Deputy Director for the United States Mint, stated: “We appreciate the Court’s decision confirming that these national treasures are and always have been property of the United States Mint. Today’s decision is a victory not only for the integrity of government property and the rule of law, but for the integrity of the numismatic hobby.”
The case was investigated by U.S. Secret Service, with the assistance of the U.S. Mint Police, and presented by Assistant United States Attorneys Jacqueline Romero, Nancy Rue, and Joel Sweet. The appeal was argued by Assistant United States Attorney Robert A. Zauzmer.
UNITED STATES ATTORNEY'S OFFICE Contact: Michele Mucellin
EASTERN DISTRICT, PENNSYLVANIA Media Contact
Suite 1250, 615 Chestnut Street 215-861-8218
Philadelphia, PA 19106
Taylor County man charged with illegal possession of a firearmRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury returned an indictment charging Michael Andrew Christopher Shaver, 22, of Grafton, West Virginia with illegal possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
In November 2015, Shaver was allegedly found in possession of a stolen .45 caliber pistol in Harrison County, WV. Shaver was charged with one count of “Possession of a Stolen Firearm.” He faces up to ten years in prison and a fine up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri is handling the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Taylor County Sheriff’s Office, and the VA Police Department in Clarksburg are investigating.Statement of U.S. Attorney Preet Bharara on the Resignation of Commissioner BrattonRead the Press Release
U.S. Attorney Preet Bharara said: “Commissioner Bratton has been a great leader of the finest police force in the world. For his strong stewardship of the NYPD during these challenging times for law enforcement, every New Yorker owes him a debt of gratitude. Over a long career, on both coasts, no one has done more for policing and public safety in America’s largest cities than Bill Bratton. Under his leadership, the relationship between the NYPD and our office is as strong as ever. He has become a personal friend to me and a great law enforcement partner to my office. I thank him for his service to the people of our great city and all the others he has served around the country during his long and distinguished career in public life.”
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St. Francis Man Sentenced for Assault with a Dangerous Weapon and Related ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man convicted of Assault with a Dangerous Weapon, Simple Assault, Prohibited Person in Possession of a Firearm, and Using a Firearm During and in Relation to a Crime of Violence was sentenced on August 1, 2016, by United States Court District Judge Roberto A. Lange.
Michael Lee Long, Jr., was sentenced to 150 months in custody, 2 years of supervised release, restitution in an amount to be determined, and a $310 special assessment to the Federal Crime Victims Fund.
Long was indicted by a federal grand jury on October 14, 2015. He was convicted on May 12, 2016, following a three-day jury trial in Pierre, South Dakota.
The charges stem from an incident that occurred on May 17, 2015, when Long accosted three people in parked car at a convenience store in Rosebud, South Dakota. As Long stood next to the open front passenger door pointing a handgun at the victim in the passenger seat, the driver of the vehicle put the car in reverse in an effort to get away. Long was knocked down by the open vehicle door and fired at the vehicle before it departed the parking lot. The driver of the vehicle was the daughter of the front-seat passenger. The daughter’s boyfriend was also in the vehicle, seated in the back seat. They were not injured. A shell casing was subsequently located in the parking lot of the store and a bullet fragment was removed from the front of the vehicle. The handgun, a Glock .40 caliber pistol, was also recovered and matched to the shell casing and bullet fragment.
Long was previously convicted of Domestic Abuse in Rosebud Sioux Tribal Court in 2011, making it illegal for him to possess a firearm. As a result of the verdict, Long will forfeit ownership of the firearm to the United States.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the South Dakota Division of Criminal Investigation (DCI). Assistant U.S. Attorneys Kirk Albertson and Meghan Dilges prosecuted the case.
Long was immediately remanded to the custody of the U.S. Marshals Service.
San Pablo Man Pleads Guilty to Cashing Fraudulent and Stolen ChecksRead the Press Release
OAKLAND – A San Pablo, California resident pleaded guilty to his role in a conspiracy to commit theft of government property, announced U.S. Attorney Brian J. Stretch; Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division; and Special Agent in Charge Michael T. Batdorf for the Internal Revenue Service’s Criminal Investigation (IRS-CI).
According to the plea agreement, from about August 2013 through April 2015, Devonnie Davison, participated in a conspiracy to illegally obtain money from the federal government by negotiating misappropriated U.S. Treasury checks. Davison admitted that some of the checks were obtained by filing false tax returns with the IRS while others were stolen U.S. Treasury checks acquired by his coconspirators. Davison cashed those checks under false pretenses at Walmart stores in the Bay Area. To carry out the scheme, Walmart cashiers were paid by members of the conspiracy to cash the fraudulent and stolen U.S. Treasury checks. Davison also conspired with other individuals who prepared and filed false tax returns with the IRS and attempted to cash stolen U.S. Treasury checks during 2013, 2014 and 2015, which totaled $521,318.
Davison, along with 10 codefendants, was charged on Nov. 5, 2015, in a 71-count indictment with conspiracy to commit theft of public money, theft of public money, wire fraud, and aggravated identity theft. Pursuant to today’s agreement, Davison pleaded guilty to one count of conspiracy to commit theft of public money and two counts of theft of public money.
Davison faces a statutory maximum term of five years in prison for the count of conspiracy to commit theft of public money and 10 years in prison for the count of theft of public money. He also faces a term of supervised release and monetary penalties.
U.S. Attorney Stretch, Principal Deputy Assistant Attorney General Ciraolo, and Special Agent in Charge Batdorf commended special agents of IRS-CI, who investigated the case and Assistant U.S. Attorneys Thomas Newman and Jose A. Olivera and Trial Attorney Gregory Bernstein of the Justice Department’s Tax Division, who are prosecuting the case.
Roseville Woman Convicted of Mortgage Fraud Scheme Involving Falsified DocumentsRead the Press Release
SACRAMENTO, Calif. — After a four-day trial, a jury in Sacramento found a Roseville woman guilty today in a mortgage fraud scheme involving three properties, Acting U.S. Attorney Phillip A. Talbert announced.
Alla Samchuk, 45, was found guilty of six counts of bank fraud, six counts of making a false statement to a financial institution, one count of money laundering, and one count of aggravated identity theft. After the verdict, U.S. District Court Judge Garland E. Burrell Jr. ordered Samchuk taken into custody.
According to court documents, from 2006 through 2008, Samchuk, a licensed real estate salesperson, orchestrated a mortgage fraud scheme involving three properties in the Sacramento area using straw buyers. Two of the houses were purchased so that Samchuk herself could occupy them. She lacked the ability to qualify for a loan, so she instead recruited straw buyers to apply for the loans in their names. Samchuk caused the submission of loan applications containing false representations of income, employment, assets, and a false indication that the straw buyers would occupy the homes as their primary residence.
A second objective of the scheme was to obtain HELOC (home equity line of credit) funds. According to evidence at trial, on two of the properties, Samchuk diverted or attempted to divert HELOC funds to her own benefit. Samchuk caused the HELOC loans to fund by submitting false statements and documents to the lender regarding the qualifications of the straw buyers.
The scheme involved two properties in Roseville and one in El Dorado Hills. In 2007, Samchuk filed an application for a HELOC on one of the properties without the straw buyer’s knowledge or consent. To obtain the HELOC, she forged the signature of the straw buyer on a short form deed of trust that she caused to be notarized and recorded. The stated purpose of the HELOC was home improvement, but once the line of credit was funded, Samchuk quickly diverted all of the funds to her own use, spending the proceeds on a Lexus and the repayment of a substantial personal debt.
This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorneys Audrey B. Hemesath and Andre M. Espinosa are prosecuting the case.
Sentencing is set for October 21, 2016. Samchuk faces a maximum of 30 years in prison for each count of bank fraud and false statements to a financial institution, 10 years in prison for money laundering, and two years in prison for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Rosebud Man Charged with Aggravated Sexual Abuse of a ChildRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child.
Lavern David Luxon, Jr., age 24, was indicted on April 13, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 1, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered as well as a $5,000 assessment to the Domestic Trafficking Fund.
The Indictment alleges that on or about September 4, 2015, Luxon knowingly engaged and attempted to engage in a sexual act with a minor female who had not attained the age of 16 years, and who was, at least, 4 years younger than Luxon.
The charge is merely an accusation and Luxon is presumed innocent until
and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk W. Albertson is prosecuting the case.
Luxon was remanded to the custody of the U.S. Marshals Service pending trial which has been set for September 12, 2016.
Rock Hill Man Pleads Guilty to Firearm and Ammunition ChargeRead the Press Release
Contact Person: Stacey Haynes (803) 929-3000
Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Robert Da’Quan Johnson, a/k/a “Thunda,” age 20, of Rock Hill, South Carolina plead guilty today in federal court. Johnson plead guilty to being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). United States District Judge Mary Geiger Lewis of Columbia accepted the plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.
Evidence presented in court established that on the evening of September 7, 2015, an officer with the Rock Hill Police Department was on routine patrol when he observed two vehicles traveling down Mount Holly Road at a high rate of speed. The officer’s radar clocked the vehicles traveling 70 mph in a 50 mph zone. Upon activating his blue light and siren and stopping both vehicles, the officer found Johnson to be the driver and sole occupant of one vehicle and a female friend of Johnson’s was found to be the driver and sole occupant of the other vehicle. After asking Johnson to exit his vehicle, a Rohm .22 caliber firearm was found in Johnson’s pants pocket and a baggy of .22 caliber ammunition found in Johnson’s vehicle. Johnson was placed under arrest for state charges for carrying an unlawful weapon and speeding. The case was referred to federal authorities for prosecution as Johnson, who was on state parole at the time, is prohibited under federal law from possessing firearms and/or ammunition based upon his 2014 state felony conviction for criminal conspiracy.
Johnson faces a statutory maximum of ten (10) years imprisonment and/or a fine of $250,000 on the firearm/ammunition charge.
The case was investigated by the Rock Hill Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Pine Ridge Man Indicted for Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pine Ridge, South Dakota, man has been indicted by a federal grand jury for Assaulting a Federal Officer.
Franklin Long Black Cat, age 22, was indicted on July 26, 2016. Long Black Cat appeared before U.S. Magistrate Judge Daneta Wollmann on July 29, 2016, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Long Black Cat spitting on a deputy U.S. Marshal while he was engaged in his official duties on July 1, 2016, at Rapid City.
The charge is merely an accusation and Long Black Cat is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Long Black Cat was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Passaic County Man Convicted of Health Care Fraud and Other Charges for Operating Ambulance Company Despite BanRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was convicted in federal court today of illegally operating a Clifton, New Jersey, ambulance company despite having been banned from participating in federal health care programs due to a prior conviction, U.S. Attorney Paul J. Fishman announced.
Imadeldin Awad Khair, a/k/a “Nadr Awad,” 56, of Clifton, was convicted of all 17 counts of an indictment charging him with health care fraud, obstructing a federal audit, tax evasion, and money laundering. He was convicted following a nine-day bench trial before U.S. District Judge Susan D. Wigenton in Newark federal court.
According to documents filed in this case and the evidence presented at trial:
In 2004, as a result of his conviction on a New Jersey state health care fraud charge, Khair was excluded from participating in any capacity in Medicare, Medicaid, or other federal health care programs for a minimum of 11 years. After realizing that he would be excluded from federal health care programs, Khair began operating a business named K&S Invalid Coach in his brother’s name. Since the date of his exclusion, Medicare and Medicaid paid over $9 million in claims submitted by K&S, none of which would have been paid had Medicare and Medicaid known that Khair was operating the business.
Khair’s plan to defraud Medicare and Medicaid began almost immediately after he was excluded by authorities from participating in federal health care programs. In 2004 and 2005, Khair recruited a business associate to tell authorities that Khair was his full-time employee so that Khair could continue running K&S in violation of his exclusion. Khair also used fraudulent paystubs provided by his business associate to convince authorities that he was not violating the terms of his exclusion.
In 2014, when special agents with the FBI and the U.S. Department of Health and Human Services, Office of Inspector General, executed a search warrant at K&S’s offices, Khair’s top managers directed employees via group text message to tell the agents that Khair’s brother was really in charge at K&S. In addition, on the first day of trial, Khair tried to influence a government witness just outside of the courtroom by claiming that he had over two dozen employees who were going to testify that his brother had really been in charge at K&S.
Khair also paid numerous K&S employees, including nearly all of the employees’ overtime wages, “off the books” and without withholding the necessary payroll taxes. To carry out the tax evasion scheme, Khair paid the wages in cash or handwritten check and directed K&S employees to keep two separate sets of books. Khair then directed company employees to send only the fraudulent set of books to the company’s payroll accountant.
In response to a U.S. Department of Labor audit of K&S in 2014, Khair held an employee meeting in which he directed K&S employees to lie to the Department of Labor by stating that they never worked more than 80 hours in a biweekly pay period. Khair also directed K&S employees to alter and falsify K&S timekeeping records to match the false amounts previously reported to the company’s payroll accountant.
The money laundering counts arose from K&S checks that were written and endorsed by Khair and made payable to “cash” or Khair himself, which were used to pay the undisclosed wages and enrich Khair personally.
Khair faces a maximum penalty of 10 years in prison on the health care fraud count, a maximum of five years for the obstruction of a federal audit and tax evasion counts, and a maximum of 20 years in prison for the money laundering counts. All the counts also carry a $250,000 fine, or twice the gross gain or loss from the offense. Following the verdict, Khair was detained pending sentencing, which is set for Nov. 9, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation.
The trial was conducted by Assistant U.S. Attorneys Danielle M. Corcione and Osmar J. Benvenuto of the U.S. Attorney’s Office Criminal Division in Newark.
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: Harvey R. Poe, Roseland, New Jersey
Pascua Yaqui Tribe Announces Deployment of Tribal Access Program to Improve Exchange of National Crime InformationRead the Press Release
Today, the Department of Justice and the Pascua Yaqui Tribe announced the tribe has officially begun to access and exchange critical law enforcement data with national crime information databases, a step forward in joint federal-tribal efforts to strengthen community safety, solve crimes, protect law enforcement and provide efficient services to local governments, such as pre-employment background checks.
The Pascua Yaqui Tribe, located near Tucson, Arizona, is one of 9 tribes to participate in the initial User Feedback Phase of the Department of Justice’s Tribal Access Program for National Crime Information (TAP), a program to provide federally recognized tribes the ability to access and exchange data with national crime information databases for both civil and criminal purposes.
“With this initiative, tribal law enforcement agencies within our District will have the same access to critical information as our metropolitan agencies,” said U.S. Attorney John S. Leonardo for the District of Arizona.
“The bottom line is that the TAP will close gaps and loopholes in our tribal criminal justice system and help us protect our community and we are thankful for the collaboration with our federal and state partners,” said Pascua Yaqui Tribal Chairman Robert Valencia.
“It is our hope that TAP can minimize the national crime information gap and drive a deeper and more meaningful collaboration between the federal, state, local and tribal criminal justice communities,” said Justice Department Chief Information Officer Joseph F. Klimavicz.
The Pascua Yaqui Tribe currently prosecutes crimes committed by non-Indians in domestic violence cases on the reservation through the exercise of Special Domestic Violence Criminal Jurisdiction (SDVCJ), established most recently by the 2013 Reauthorization of the Violence Against Women Act (VAWA). The exercise of SDVCJ authority has exposed many gaps in justice information access and sharing, for tribes and off-reservation state agencies. TAP will help remedy these gaps.
First, the TAP will allow the tribe to enter tribal orders of protection to the National Criminal Information Center (NCIC), a national electronic database, which will provide off-reservation law enforcement agencies electronic access to enforce these orders of protection if violated off-reservation. Currently, tribal orders of protection are only enforceable off-reservation if the victim has a copy of the order of protection.
The tribe will also be able to enter tribal domestic violence criminal convictions into NCIC. This will provide all law enforcement agencies and licensed firearms dealers, regardless of location, the ability to halt a transfer of a firearm to an individual prohibited from possessing firearms, including those prohibited from possessing firearms because of a tribal order of protection. The effect is that prohibited firearm possessors may face prosecution if found in possession of weapons. Ultimately, this could result in the prevention of escalating incidents of crime and violence.
Finally, cases prosecuted under special domestic violence criminal jurisdiction may result in a warrant issued for individuals who flee the reservation boundaries to avoid prosecution in tribal court. TAP will assist in the extradition of these individuals to tribal court to face justice for acts committed on the reservation.
Background on the TAP User Feedback Phase
TAP supports tribes in analyzing their needs for national crime information and helps provide appropriate solutions, including a state-of-the-art biometric/biographic computer workstation with capabilities to process finger and palm prints, take mugshots and submit records to national databases, as well as the ability to access the FBI’s Criminal Justice Information Service (CJIS) systems for criminal and civil purposes through the Department of Justice. TAP also provides specialized training and assistance for participating tribes.
This initial phase, funded by the Office of Justice Programs’ Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART) and supported with technical assistance from the Office of the Chief Information Officer, will focus on assisting tribes that have law enforcement agencies. In the future, the department will seek to address the needs of the remaining tribes and find a long-term solution. The Department of Justice’s commitment to finding permanent and individual solutions to the long-standing problems with inconsistent access for tribes to federal criminal databases remains ongoing and is a top priority for many department components.
“We have worked closely with our tribal partners to develop solutions that will broadly benefit tribal communities,” said Director Tracy Toulou of the Justice Department’s Office of Tribal Justice. “TAP is the result of innovative thinking by people actively listening to tribal concerns and finding ways to deliver technology that ensures public safety through the exchange of critical information.”
The User Feedback Phase grants access to national crime information databases and technical support to the following tribes: the Cherokee Nation in Oklahoma, the Eastern Band of Cherokee Indians of North Carolina, the Keweenaw Bay Indian Community in Michigan, the Pascua Yaqui Tribe of Arizona, the Suquamish Indian Tribe of the Port Madison Reservation in Washington, the Gila River Indian Community of the Gila River Reservation in Arizona, the Tulalip Tribes of Washington, the Confederated Tribes of the Umatilla Indian Reservation in Oregon and the White Mountain Apache Tribe of the Fort Apache Reservation in Arizona.
While in the Tribal Law and Order Act of 2010 Congress required the Attorney General to ensure that tribal officials that meet applicable requirements be permitted access to national crime information databases, the ability of tribes to fully participate in national criminal justice information sharing via state networks has been dependent upon various regulations, statutes and policies of the states in which a tribe’s land is located. Therefore, improving access for tribal law enforcement to federal crime information databases has been a departmental focus for several years. In 2010, the department instituted two pilot projects, one biometric and one biographic, to improve informational access for tribes. The biographic pilot continues to serve more than 20 tribal law enforcement agencies.
For more information on TAP, visit: www.justice.gov/tribal/tribal-access-program-tap.
For more information about the Justice Department’s work on tribal justice and public safety issues, visit: www.justice.gov/tribal.
Parma Duck Baiter Sentenced to JailRead the Press Release
BOISE – Gregory Obendorf, 61, of Parma, Idaho, was sentenced yesterday to 15 days in jail and a $40,000 fine for conspiracy to bait migratory birds and placing bait for migratory birds, both in violation of the Migratory Bird Treaty Act, U.S. Attorney Wendy J. Olson announced. Obendorf was found guilty on both charges by a federal jury on May 16, 2016. Chief U.S. District Judge B. Lynn Winmill also placed Obendorf on probation for a term of three years. Judge Winmill ordered that during Obendorf’s term of probation, he must complete 200 hours of community service. Judge Winmill also revoked Obendorf’s hunting and fishing privileges and prohibited him from baiting or feeding migratory waterfowl on his property during his term of probation. In pronouncing the sentence, Judge Winmill noted that Obendorf’s prolonged illegal baiting of ducks contributed to changes in the migratory flight patterns of ducks and geese. Judge Winmill found this change detrimentally affected others who hunted on nearby public lands, including Lake Lowell and the Fort Boise Wildlife Management Area.
The jury found that Obendorf conspired with other persons from November 2007 to January 2014, to place bait for migratory birds, specifically ducks, for the purpose of hunting on his farm located on the Boise River in Parma, Idaho. The jury also convicted Obendorf of directing the placement of bait for duck hunting in November 2013.
The jury heard evidence over the seven-day trial that at the beginning of duck hunting season each year of the conspiracy, Obendorf instructed his combine operators to partially combine his corn field to intentionally spread corn kernels onto the field. Agents from the U.S. Fish and Wildlife Service flew over Obendorf’s property in November of 2013, and observed piles of corn near a duck blind from the air. Agents and officers from the Idaho Department of Fish and Game then investigated and discovered that the entire corn field was baited. After baiting the field with corn, Obendorf would flood the corn field and allow hunters to shoot ducks over the baited field. The jury also heard evidence that Obendorf instructed another individual to use a tractor to knock down standing corn in the field at night before his guests would hunt the field the following day. Obendorf boasted in a recorded conversation with Idaho Fish and Game officers that he had over 200,000 ducks in the baited field during the 2013 hunting season. Several hunters who Obendorf invited to hunt on his property testified at trial that they hunted the corn field during the course of the conspiracy and that they were able to take their limits of ducks in under an hour.
At sentencing, Obendorf argued that he deserved leniency from the Court based on his prior good works, including allowing Idaho Fish and Game officers to take youths hunting on his property. However, after his conviction on May 16, 2016, he called Idaho and Fish and Game to advise them that he would no longer allow any youth hunts on his property.
The case was investigated by the U.S. Fish and Wildlife Service and the Idaho Department of Fish and Game.
Pair Sentenced to Total of 16 Years in Federal Prison for Drug TraffickingRead the Press Release
Hot Springs, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that two defendants were sentenced last week for drug trafficking. Michael Weldon Fryar, age 32 of Pearcy, Arkansas, was sentenced on July 28 to 110 months in federal prison followed by three (3) years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Larry Nevels, Jr., age 29, of Mountain Pine, Arkansas, was sentenced on July 29 to 84 months in federal prison followed by three (3) years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearings in the United States District Court in Hot Springs.
Fryar: According to the court records, in June, 2015, investigators with Homeland Security Investigations (HSI) as well as the 18th East Drug Task Force in Garland County began receiving reports that Fryar was distributing methamphetamine in the area. Further investigation revealed that Fryar and his associates were transporting the methamphetamine from Fayetteville to the Hot Springs area. On July 21, 2015, while performing surveillance, investigators identified Fryar and Garry Rogers both driving separate vehicles and traveling south on Highway 71 near Mansfield. A traffic stop was initiated on Roger’s vehicle, and he was arrested for driving with a suspended license. Fryar continued to drive on in his vehicle but came back to the scene of the traffic stop. Officers ordered him out of his vehicle, but allowed him to leave after they interviewed his passenger. A search incident to the arrest of Rogers revealed a Tupperware container which contained approximately 362 grams of methamphetamine. Investigators also located a cell phone and motel keys. A search warrant was obtained for the cell phones of Fryar and Rogers which revealed discussions regarding the trafficking of methamphetamine. Fryar was indicted by a federal grand jury in September, 2015 and pleaded guilty to the charge in November, 2015. Garry Rogers was indicted by a federal grand jury in September, 2015, pleaded guilty to the charge in March, 2016, and is awaiting sentencing.
Nevels: According to court records, on August 13, 2014, officers with the Mountain Pine Police Department initiated a traffic stop on a vehicle in which Nevels was a passenger. Upon making contact with the occupants, officers could smell a strong odor of marijuana coming from the vehicle. They requested and received consent from the driver to search the vehicle. During the search, officers located a hidden compartment behind the stereo in the dashboard containing two bags of methamphetamine, numerous hydrocodone pills, zanax bars, and a loaded Ruger .22 caliber pistol, which was reported stolen out of Garland County, Arkansas. Nevels and the driver were both arrested and taken into custody. During a search, officers located $1,000.00 in Nevel’s pants pocket. He was later interviewed at the Garland County jail by an agent with HSI as well as a detective from the Drug Task Force. Subsequent to being advised of and waiving his Miranda rights, he admitted to selling methamphetamine and to being in possession of the drugs found in the car. The drugs located in the vehicle were sent to the Arkansas State Crime lab for testing where they were determined to be 7.1 grams of methamphetamine; 27 grams of hydrocodone; 2.7 grams of alprazolam; and, 27 grams of codeine. Nevels was indicted by a federal grand jury in November, 2014 and pleaded guilty to the charge in April, 2015.
Agencies involved in the investigation of these cases were Homeland Security Investigations, 18th East Drug Task force in Garland County, Garland and the Mountain Pine Police Department. Assistant United States Attorney David Harris prosecuted the cases for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Owner of Cake Shop Sentenced to Prison for Money LaunderingRead the Press Release
NORFOLK, Va. – Cheron Marie Johnson, 31, of Portsmouth, was sentenced today to 90 months in prison for conspiracy to commit money laundering and for false statement in a tax filing. According to the plea agreement, Johnson will pay $338,860 in criminal forfeiture and $211,278 in restitution.
According to court documents, Johnson laundered over $840,000 through 11 bank accounts over the course of a four year conspiracy with her husband, Vernon Norvell, who was sentenced on July 19 to 16 years in prison for his role in distributing over 126 pounds (57 kilograms) of cocaine.
Johnson deposited nearly a half-million dollars in cash into numerous accounts, and together with Norvell, used a real estate transaction and cake business, “G’s Cake Shop – Cake For All Occasions” in Virginia Beach to launder the drug proceeds. In 2014, Johnson claimed unemployment benefits for six months while simultaneously depositing over $322,000 into her various accounts.
Johnson and Norvell used the proceeds of his cocaine distribution to purchase a home in the Crystal Lake neighborhood of Portsmouth, several automobiles, expensive clothing and other material items.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Karl C. Colder, Special Agent in Charge of Drug Enforcement Administration (DEA) Washington Field Division; and Thomas Jankowski, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation, made the announcement after sentencing by U.S. District Chief Judge Rebecca Beach Smith. Special Assistant U.S. Attorney John F. Butler and Assistant U.S. Attorneys Andrew C. Bosse and Joseph E. DePadilla prosecuted 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-48
Owner of Boston Cab Charged with Tax and Fraud OffensesRead the Press Release
BOSTON – Edward J. Tutunjian, who has owned and operated Boston Cab for more than four decades, was charged today in U.S. District Court with payroll tax evasion, employing illegal aliens and with failing to pay overtime wages.
Tutunjian’s company, EJT Management, Inc., through which he operated Boston Cab, also was charged with defrauding the U.S. Department of Housing and Urban Development (HUD) by enabling EJT employees to obtain federal housing subsidies to which they were not entitled. Both Tutunjian and EJT have signed plea agreements in which they agree to make full restitution for their crimes, totaling more than $2.3 million.
Tutunjian, 66, of Belmont, was charged in an Information with five counts of tax evasion, one count of employing illegal aliens and one count of violating the Fair Labor Standards Act for failing to pay overtime wages. EJT Management, Inc. was charged in the same Information with aiding and abetting the theft of public money.
Since approximately 1972, Tutunjian and EJT have operated the Boston Cab taxicab business in the greater Boston area. By 2014, Tutunjian and EJT owned approximately 372 taxi medallions – a government license permitting a car to be used to transport passengers for hire – which they leased to drivers and for which Tutunjian and EJT received millions of dollars in gross revenues each year, mostly in cash. Although the taxi drivers were self-employed, Tutunjian and EJT directly employed mechanics, dispatchers, office workers, and others. It is alleged that a number of those employees were undocumented aliens who, because of that status, were not authorized to work in the United States.
Tutunjian allegedly concealed the size of the company payroll from the IRS, and thereby concealed the amount of federal employment taxes he and EJT would be responsible for paying. He did this by paying employees entirely or partially in cash and keeping such cash payments off the books. By doing this, he ensured there would be no record of cash payments that could be inspected by the IRS. Employees who were illegal aliens, and therefore not authorized to work in the United States, were allegedly paid entirely in cash. EJT did not issue W-2 forms to those employees and did not withhold or pay federal income tax, Social Security tax, or Medicare tax with regard to those illegal alien employees.
Other employees who were citizens or permanent resident aliens received their wages partly in cash and partly by check. Tutunjian filed quarterly employment tax returns for EJT which did not include the amounts which had been paid in cash to EJT employees. In this way, EJT evaded, and aided and abetted its employees in evading, approximately $739,204 in taxes from 2009 to 2013.
Tutunjian also allegedly did not pay the required overtime rate to employees who worked more than 40 hours a week. To conceal this, Tutunjian required certain employees to punch in 40 or fewer hours per week on an electronic time clock whose information was sent to the outside payroll company that prepared the payroll checks and W-2s, even though those employees had actually worked more than 40 hours per week, in some instances 50 or 60 hours a week. It is alleged that Tutunjian paid those workers in cash for their overtime hours, at the regular-time rate rather than the required time-and-a-half.
According to documents filed with the Court, a number of EJT’s employees were living in federally subsidized housing in Cambridge and elsewhere, some of which had waiting lists for prospective tenants. The amount of the federal housing subsidy, as well as the eligibility to live in the units, depended on the tenant’s income. HUD did not rely solely on a tenant’s statement of his/her income, but also compared it to the tenant’s W-2 wages and generally required employers such as EJT to provide written verification. From January 2009 to about May 2013, EJT allegedly aided certain employees to receive housing benefits to which they were not entitled, by providing payroll information, including W-2s, which did not reflect the wages paid to these employees in cash. Additionally, during the same period, EJT provided certifications to the state agency administering the housing subsidy program, which falsely reported the income of certain employees to be only the amounts paid by check but which did not include the wages paid to these employees in cash. In this manner, EJT aided certain employees to obtain HUD housing subsidies to which they were not entitled.
According to the plea agreements also filed today, Tutunjian has agreed to pay $1,391,012 in restitution to the IRS for taxes, interest and penalties, and an additional $699,717 to employees in unpaid overtime wages. EJT has agreed to pay restitution of $219,307 to HUD for the fraudulent housing subsidies. Two of Tutunjian’s relatives, who also operate taxi companies, have agreed to pay $195,903 to the IRS in unpaid taxes for tax years 2009 through 2014. These relatives have not been charged.
In a related case, EJT dispatcher Girma Tilahun, 60, and his wife, Wudnesh Wolde, 53, of Cambridge, have agreed to plead guilty to immigration fraud and pay $234,987 in unpaid federal income taxes and $62,340 to HUD. Tilahun and Wolde allegedly arranged a sham marriage for one of Tilahun’s relatives to a U.S. citizen so that the relative could fraudulently gain legal status in the United States.
Another former EJT employee, Raffi Chapian, 44, of Waltham, has agreed to plead guilty to failing to pay income taxes from 2010 to 2014. Chapian has agreed to serve six months in prison and pay $72,335 in unpaid taxes.
The charge of tax evasion provides a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000, or twice the gross gain or loss. The charge of employment of unauthorized aliens provides for a sentence of no greater than six months in prison and a fine of $3,000 per alien. The charge of violating the Fair Labor Standards Act provides for a sentence of no greater than one year of probation and a fine of $10,000. The charge of aiding and abetting the theft of public money provides for a sentence of no greater than five years of probation and a fine of $500,000. The charge of immigration fraud provides for a sentence of no greater than five years in prison and a fine of $250,000. The charge of failing to pay income tax provides for a sentence of no greater than one year in prison and a fine of $100,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development; Office of Inspector General, Northeast Regional Office; Nikitas Splagounias, Assistant Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Boston Police Commissioner William Evans; and Cambridge Police Acting Commissioner Christopher Burke, made the announcement today. The Wage and Hour Division and the Employee Benefits Security Administration of the Department of Labor also assisted with the investigation. The case is being prosecuted by Assistant U.S. Attorneys Michael L. Tabak and Sandra S. Bower of Ortiz’s Criminal Division.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
North Carolina Couple Pleads Guilty to Bank Fraud and Tax Fraud Related to Their Online BusinessRead the Press Release
Defendants Failed to Report More Than $1 Million Earned from Sales Through eBay and Amazon
A Greensboro, North Carolina, couple, who operated an online sales business, pleaded guilty today to bank fraud and tax fraud charges announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney Ripley Rand of the Middle District of North Carolina.
Daniel Balson, 51, pleaded guilty to one count of filing a false tax return for 2010 and one count of making a false statement on a loan application. Renee Balson, 53, pleaded guilty to one count of making a false statement on a loan application.
According to court documents, Daniel Balson owned and operated Southern Sales Online (SSO), an online retail business that sold a variety of merchandise through eBay and Amazon, including scrapbooking and art materials, books, inspirational DVDs, pet supplies and tools. Daniel Balson admitted selling stolen merchandise through SSO. Although SSO earned over $1 million in gross receipts during tax years 2005 through 2011, the Balsons failed to report those gross receipts on their tax returns. The Balsons also failed to report the income from SSO on a bank application for a mortgage loan modification in 2011.
The sentencing hearing has been scheduled for Nov. 3. The Balsons each face a statutory maximum sentence of 30 years in prison for making a false statement on a loan application. Daniel Balson also faces a statutory maximum sentence of three years for filing a false tax return. The Balsons also face substantial monetary penalties and restitution.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rand commended special agents of the Internal Revenue Service Criminal Investigation, who investigated the case and Assistant Chief Todd A. Ellinwood and Trial Attorney Mara A. Strier of the Tax Division, who are prosecuting the case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office of the Middle District of North Carolina for their assistance.
North Carolina Couple Pleads Guilty to Bank Fraud and Tax Fraud Related to Their Online BusinessRead the Press Release
WASHINGTON - A Greensboro, North Carolina, couple, who operated an online sales business, pleaded guilty today to bank fraud and tax fraud charges announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney Ripley Rand of the Middle District of North Carolina.
Daniel Balson, 51, pleaded guilty to one count of filing a false tax return for 2010 and one count of making a false statement on a loan application. Renee Balson, 53, pleaded guilty to one count of making a false statement on a loan application.
According to court documents, Daniel Balson owned and operated Southern Sales Online (SSO), an online retail business that sold a variety of merchandise through eBay and Amazon, including scrapbooking and art materials, books, inspirational DVDs, pet supplies and tools. Daniel Balson admitted selling stolen merchandise through SSO. Although SSO earned over $1 million in gross receipts during tax years 2005 through 2011, the Balsons failed to report those gross receipts on their tax returns. The Balsons also failed to report the income from SSO on a bank application for a mortgage loan modification in 2011.
The sentencing hearing has been scheduled for Nov. 3. The Balsons each face a statutory maximum sentence of 30 years in prison for making a false statement on a loan application. Daniel Balson also faces a statutory maximum sentence of three years for filing a false tax return. The Balsons also face substantial monetary penalties and restitution.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rand commended special agents of the Internal Revenue Service Criminal Investigation, who investigated the case and Assistant Chief Todd A. Ellinwood and Trial Attorney Mara A. Strier of the Tax Division, who are prosecuting the case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office of the Middle District of North Carolina for their assistance.
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Newton Investment Adviser Sentenced for FraudRead the Press Release
BOSTON – A Newton investment adviser was sentenced today in U.S. District Court in Boston in connection with defrauding clients out of more than $1.4 million.
Paul J. Jackson, 59, of Wellesley, was sentenced by U.S. District Court Judge F. Dennis Saylor, IV to 33 months in prison, three years of supervised release and ordered to pay restitution. In October 2015, he pleaded guilty to investment adviser fraud and wire fraud.
Jackson owned and operated Paul J. Jackson & Associates, LLC in Newton, through which he managed retirement funds for clients. Beginning in 2010, Jackson started offering clients, close friends, and family members, what appeared to be attractive investment opportunities. The investments Jackson offered typically involved initial public offerings (IPOs) of high-profile companies, but Jackson did not invest the money as promised. Instead, he took more than $1.4 million dollars of investor money for his own use. For example, Jackson stole more than $500,000 from his brother-in-law, and over $400,000 from a close friend, based on a series of phony offers to invest in companies like Facebook, Twitter, and Alibaba. When investors requested their money back, Jackson lied repeatedly, offering false excuses and never telling them that he had simply taken their money. Jackson even used funds taken from a victim to make a partial repayment to another victim he defrauded.
The Massachusetts Securities Division previously filed a separate administrative action against Jackson, charging him with fraud and seeking to bar him from working in the securities industry.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission during the investigation of this matter. The case was prosecuted by Assistant U.S. Attorney Eric P. Christofferson of Ortiz’s Economic Crimes Unit.
Naperville Man Admits Lying to U.S. Immigration Officials About Past Membership in Chinese Communist PartyRead the Press Release
CHICAGO — A Naperville man admitted in federal court today that he willingly failed to disclose his prior membership in the Chinese Communist Party when seeking naturalized citizenship in the United States.
LU LIN, 59, pleaded guilty to one count of making a false statement to an immigration officer. The conviction is punishable by up to five years in prison and a fine of up to $250,000.
U.S. District Judge Edmond E. Chang scheduled a sentencing hearing for Nov. 9, 2016, at 10:00 a.m.
According to the plea agreement, Lin is a citizen of the People’s Republic of China who reported on his application for naturalized United States citizenship that he had never used other names and had never been a member of the Chinese Communist Party. Lin made the same assertions while under oath in an interview with officials in the Chicago office of the Department of Homeland Security’s U.S. Citizenship and Immigration Services, the plea agreement states.
In reality, Lin had been a member of the Chinese Communist Party from 1987 to 1997, and had received an identification document identifying him as “Yeung Yung.” Lin admitted in the plea agreement that he made the misrepresentations so he would be granted U.S. citizenship. He further acknowledged that his misrepresentations were material to the United States’ subsequent decision to grant him citizenship.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Department of Homeland Security’s U.S. Citizenship and Immigration Services assisted in the investigation.
Plea Agreement
Morgantown man charged with multiple oxycodone distribution chargesRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury returned an indictment charging Shawn Collins, 43, of Morgantown, West Virginia with distribution of oxycodone, United States Attorney William J. Ihlenfeld, II, announced.
In February through May of 2015, Collins was allegedly in possession with the intent to distribute oxycodone in Monongalia County, WV on three separate occasions.
Collins was charged with three counts of “Distribution of Oxycodone.” He faces up to twenty years in prison and a fine up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is handling the case on behalf of the government. The West Virginia State Police - BCI are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Monessen Man Charged with Federal Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH- A former resident of Westmoreland County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug and firearm laws, United States Attorney David J. Hickton announced today.
The three-count indictment named Laurenti James Robertson, 25.
According to the indictment, on Oct. 24, 2015, Robertson possessed a 9 mm caliber semi-automatic Kel-Tec pistol, Serial Number SEL07, and 9 mm caliber ammunition after having been convicted of multiple crimes punishable by more than one year in prison. Those cases include one robbery conviction and one theft by deception conviction. The indictment further alleges that on Oct. 24, 2015, Robertson possessed with intent to distribute heroin, a Schedule I controlled substance. On that same date, Robertson possessed the firearm in furtherance of that drug trafficking crime.
The law provides for a term of imprisonment of not less than five years and up to life, a fine of up to $1,000,000, and the forfeiture of the gun, ammunition, money, and electronics. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Homestead Police Department conducted the investigation leading to the Indictment in this case.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Miramar Resident Convicted of Access Device Fraud and Aggravated Identity TheftRead the Press Release
A Miramar, Florida resident was convicted by a Southern District of Florida jury of access device fraud and aggravated identity theft following a two-day trial.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Miami Office (DOL-OIG), and William Hernandez, Chief, North Miami Beach Police Department, made the announcement.
Marletta Jasmine Knowles, 26, of Miramar, Florida, was convicted at trial of one count of use of one or more unauthorized access devices to obtain anything of value aggregating $1,000 or more, in violation of Title 18, United States Code, Section 1029(a)(2), and four counts of aggravated identity theft, in violation of Title 18 United States Code, Section 1028A(a)(1). She faces a statutory maximum penalty of 18 years in prison. Sentencing is scheduled for October 7, 2016 before U.S. District Judge Beth Bloom.
The evidence at trial established that between December 30, 2014 and February 21, 2015, Knowles used fraudulent debit cards to obtain $3,000 in money orders at Publix Super Markets in Miami-Dade County. These debit cards had been issued using the names, dates of birth, and social security numbers of two victims.
Mr. Ferrer commended the investigative efforts of the ICE-HSI, DOL-OIG and the North Miami Beach Police Department. The case was prosecuted by Assistant United States Attorneys Joshua S. Rothstein and Breezye Telfair.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Minnesota Man Sentenced for Possession with Intent to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that an Ellsworth, Minnesota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on August 1, 2016, by U.S. District Judge Roberto A. Lange.
Lugene Rayfeal Russell, age 47, was sentenced to 22 months in custody, 2 years of supervised release, $1,000 fine, a special assessment to the Federal Crime Victims Fund in the amount of $100, and forfeiture of a firearm, ammunition, and U.S. currency seized by law enforcement.
Russell was indicted by a federal grand jury on January 21, 2016. He pled guilty on May 9, 2016.
The conviction stemmed from an incident on November 16, 2015, when Bureau of Indian Affairs (BIA) Officers made contact with a vehicle in which Russell was a passenger, in Fort Thompson, South Dakota. At that time, Russell had in his possession 31 small individual baggies of marihuana, weighing a total of .31 ounces (8.8 grams), and a larger bag containing
marihuana weighing a total of .97 ounces (27.5 grams), which he intended to distribute to others. He also possessed a Beretta, model 950 BS, .25 caliber pistol, bearing serial number BR91469V, and ammunition. A comprehensive search of the vehicle on November 20, 2015, revealed $3,923 in U.S. currency bundled together in a compartment found behind the glove box.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force and the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Russell was immediately turned over to the custody of the U.S. Marshals Service.
Michigan Man Sentenced to 15 Years in Federal Prison for Child PornographyRead the Press Release
Fort Smith, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that David Henry, age 54, of Flint, Michigan, was sentenced to 180 months in federal prison and five (5) years of supervised release on each of two counts of Production of Child Pornography; the sentences are to run concurrently. The sentencing hearing took place before the Honorable Chief Judge P. K. Holmes, III in the United States District Court in Fort Smith.
According to the Plea Agreement, Henry began chatting online with a 14-year-old female who was living in Fort Smith in the fall of 2015. While using the Facebook Messenger application, Henry specifically instructed the victim to take pictures of herself in certain nude poses while engaging in sexually explicit conduct. He then convinced her to send these images to him while also sending her nude images of himself. When the victim expressed concern to Henry that her mother would find out about her sending him nude images, Henry mailed her a tablet so that they could continue their chats without detection. On November 5, 2015, the victim’s mother ultimately discovered these messages and images on the victim’s cell phone and reported it to law enforcement. Henry was interviewed by the Michigan State Police and admitted that he had been chatting online with the victim and that he believed her to be 15 years old. He was indicted by a federal grand jury on January 27, 2016, and pleaded guilty to the charges on March 10, 2016.
This case was investigated by the Fort Smith Police Department and the Michigan State Police. Assistant United States Attorney Ashleigh Buckley prosecuted the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Mexican National Sentenced for Receiving Child PornographyRead the Press Release
Angel Sauzo-Martinez, age 40, was sentenced in federal court in Omaha, Nebraska, for receiving child pornography. The Honorable Laurie Smith Camp, Chief Judge, sentenced Sauzo-Martinez, a Mexican National, to 72 months’ imprisonment. There is no parole in the federal penal system. After his release from prison, if not deported, Sauzo-Martinez must serve a 5-year term of supervised release and will be required to register as a sex offender.
An investigation by the Nebraska State Patrol identified Sauzo-Martinez as someone sharing child pornography through a file-sharing network. Ten videos of child pornography were downloaded from Sauzo-Martinez’s computer. On October 30, 2014, officers with the Nebraska State Patrol served a search warrant at Sauzo-Martinez’s home. Forty-nine videos of child pornography were recovered. The videos involved minors, mostly prepubescent, engaged in sexually explicit conduct with adults or other minors.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol.
Lee's Summit Woman Pleads Guilty to Stealing $5.3 Million from EmployerRead 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 pleaded guilty in federal court today to embezzling nearly $5.3 million from her employer.
Jane Barnes, 53, of Lee’s Summit, waived her right to a grand jury and pleaded guilty before U.S. District Judge Roseann Ketchmark to a federal information that charges her with wire fraud, bank fraud and aggravated identity theft.
Barnes began working for ACI Boland Architects, a prominent architecture company in Kansas City, Mo., in 1998 and worked as the office manager from 2008 until her resignation in March 2016. By pleading guilty today, Barnes admitted that she conducted two schemes to defraud and embezzle a total of at least $5,293,300 from ACI Boland.
In Barnes’ first fraud scheme, she used the payroll system to pay herself unauthorized amounts in excess of her approved salary/bonus. Barnes inflated her bi-weekly salary without the authorization of ACI Boland. Barnes admitted that she embezzled at least $1,622,078 in her first scheme, which lasted from at least 2006 until 2011.
In her second fraud scheme, Barnes created unauthorized payroll checks to herself, which did not reflect on her W-2 forms; thus federal income and other taxes were not deducted from her checks through this scheme. Barnes issued 359 unauthorized checks to herself directly from ACI Boland’s payroll account. Barnes signed the checks with the forged signature of one of the principals of ACI Boland and deposited them into her personal bank accounts. Barnes admitted that she embezzled a total of $3,671,222 from ACI Boland in her second scheme, which began in 2010 and lasted until her resignation in March 2016.
The investigation to date revealed Barnes’ spending of the embezzled funds, included, but were not limited, to:
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$1,969,210 in various credit card payments;
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$770,393 in transfers to relatives;
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$425,493 in entertainment, retail and travel;
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$424,945 in vehicle expenses, including car loan payments;
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$302,636 in cash and cash equivalents;
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$253,856 in home expenses, excluding mortgage payments;
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$124,412 in taxes
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$119,375 in insurance and medical expenses; and
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$107,683 in restaurant and food expenses.
By pleading guilty today, Barnes also agreed to forfeit to the government any property derived from the proceeds of her fraud, including $5,293,300, a 2014 Ford F150 Crew Cab Raptor 4WD, a 2014 Ford Explorer Utility 4D Sport 4WD and a 2013 Lincoln MKS.
Under federal statutes, Barnes is subject to a sentence of up to 20 years in federal prison without parole for wire fraud and up to 30 years in federal prison without parole for bank fraud, plus a mandatory consecutive sentence of two years in federal prison without parole for aggravated identity theft. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the FBI.
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