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9 September 2016
Commercial driver’s license skills examiner sentenced for falsifying test resultsRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Louisiana third party commercial driver’s license skills examiner was sentenced Thursday to one year supervised probation and fined $2,400 for falsifying test results by indicating a passing grade for driving skills tests that never took place.
Christopher D. Pender, 41, of Stonewall, La., was sentenced by U.S. District Judge Elizabeth E. Foote on one count of making and using a false writing and document. According to the May 4, 2016 guilty plea, Pender, who was certified to administer commercial driver’s license skills tests, provided an applicant with a “Commercial Driver’s Skills Test Certificate” in November of 2014 when the applicant had not even taken, much less passed, the federally required test. He did this in exchange for cash, which allowed the applicant to fraudulently obtain a Louisiana commercial driver’s license.
The U.S. Department of Transportation Office of Inspector General and the Louisiana State Police conducted the investigation. Assistant U.S. Attorneys William J. Flanagan and Michael O’Mara prosecuted the case.
Christopher Cook Pleads Guilty to Unlawfully Possessing Firearm on Jan. 3, 2015, When he Shot APD Officer Lou GolsonRead the Press Release
ALBUQUERQUE – Christopher Cook, 38, of Albuquerque, N.M., pleaded guilty this morning in U.S. District Court to violating the federal firearms laws by unlawfully possessing a firearm and ammunition on Jan. 3, 2015, the day he shot and seriously injured Officer Lou Golson of the Albuquerque Police Department (APD). The guilty plea was entered without the benefit of a plea agreement. At sentencing, Cook faces a statutory maximum penalty of ten years in prison unless the court determines that Cook is an armed career criminal. In that event, Cook will face an enhanced sentence of a statutory mandatory minimum of 15 years to a maximum of life in prison.
Cook previously pled guilty in the Second Judicial District Court for the State of New Mexico to state charges arising from the Jan. 3, 2015, shooting of Officer Golson, including shooting at or from a motor vehicle (great bodily harm), aggravated battery on a police officer and receiving or transferring a motor vehicle. Cook was sentenced on the state charges on July 10, 2016, to 20 years in state custody.
Cook’s guilty pleas to both federal and state charges were the result of a collaborative investigative effort involving the U.S. Attorney’s Office, Second Judicial District Attorney’s Office, ATF, FBI, U.S. Marshals Service, APD, Bernalillo County Sheriff’s Office, and New Mexico State Police.
In announcing today’s guilty plea, U.S. Attorney Damon P. Martinez said, “We cannot and will not tolerate violence against law enforcement officers. Those who seek to harm the courageous men and women who put their lives on the line to safeguard us and protect our communities are, by definition, the ‘worst of the worst’ offenders. The entire law enforcement community – federal, state, county, local and tribal – is committed to working collaboratively to thoroughly and completely investigate these individuals, and the District Attorneys and I are united in our resolve to prosecute them – in both the federal and state judicial systems – to the fullest extent of the law.”
Second Judicial District Attorney Kari E. Brandenburg said, “The ‘worst of the worst’ initiative is proving to be a very successful, cooperative endeavor between state and federal law enforcement. This partnership is making our community safer.”
“Today’s guilty plea puts another violent felon behind bars where he belongs. We will aggressively enforce the federal firearms laws targeting these criminals,” said Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of ATF. “That is why we will continue to work closely with the U.S. Attorney’s Office to investigate and prosecute violent criminals like the defendant in this case.”
“Guns and violent felons are a dangerous mix. When career criminals get their hands on weapons, nobody is safe, including the brave men and women who put on a badge to protect us every day,” said Special Agent in Charge Terry Wade of the Albuquerque Division of the FBI. “The FBI is proud to have worked closely with our partners on this case, and we remain committed to rooting out violent and repeat offenders from our communities.”
“We will never be able to erase the haunting images of Christopher Cook attempting to kill Officer Lou Golson from our minds,” APD Chief Gorden E. Eden, Jr. “We are so very thankful to our law enforcement partners and the ‘worst of the worst’ initiative for ensuring this repeat offender is off the streets and will serve substantial time for his crimes in federal prison.”
Cook initially was charged with being a felon in possession of a firearm in a criminal complaint filed by ATF on Jan. 6, 2015. The criminal complaint alleged that Cook unlawfully possessed a firearm and ammunition on Jan. 3, 2015, when Cook shot APD Officer Golson during a traffic stop in Bernalillo County, N.M. On March 10, 2015, Cook was indicted on that same charge. According to court records, Cook was prohibited from possessing either firearms or ammunition on Jan. 3, 2015, because he previously has been convicted of at least eleven felony offenses, including two involving attempted aggravated assaults on peace officers.
During today’s proceedings, Cook entered a guilty plea to the indictment. He remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Albuquerque Police Department, the U.S. Marshals Service, the Albuquerque office of the FBI, the Bernalillo County Sheriff’s Office and the New Mexico State Police with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney David M. Walsh is prosecuting the case.
Cook is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution based on their prior criminal convictions with the goal of removing them from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders with significant criminal conviction records from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Career Offender Sentenced for Firearms ViolationsRead the Press Release
G.F. Peterman, III, United States Attorney for the Middle District of Georgia, announced Richard Bynes, III, age 30, of Newton, Georgia was sentenced to 180 months (15 years) by the Honorable Leslie Abrams, United States District Court Judge, in Albany, Georgia after his guilty plea for Discharging a Firearm in Furtherance of a Drug Trafficking Crime. Mr. Bynes was sentenced as a career offender based on his two prior bank robbery convictions in 2005.
He pled guilty on June 29, 2016. According to the plea agreement, on January 26, 2015, Camilla Police responded to an apartment complex regarding shots fired. A witness stated that Mr. Bynes, an alleged club owner from Baker County, had fired four shots into the air because a tenant known as “JuJu” owed him money. The person identified as “JuJu” told the police Mr. Bynes was angry because he owed him money for marijuana. GBI agents developed information about drug sales by Mr. Bynes and obtained a search warrant for his residence in Baker County, GA. During the search of the residence, the GBI agents uncovered $4,755 in currency, a drug ledger, two hand guns, one shotgun and a rifle, a set of digital scales, baggies, an antifreeze jug containing marijuana, and a white plastic bag containing a measuring cup and a metal whisk with cocaine residue.
This case was investigated by the Drug Enforcement Administration, Georgia Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Leah McEwen prosecuted the case on behalf of the Government.
Inquiries regarding this case should be directed to Pam Lightsey, Public Information Officer, United States Attorney’s Office, at 478-752-3511.
Butte County Sex Offender Sentenced to 25 Years in Prison for Production of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Joshua Landon Klipp, 34, of Chico, was sentenced today to 25 years in prison for one count of production of child pornography and one count of receipt of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on September 13, 2013, Klipp brought his cellphone for repairs to a Chico repair service. Before beginning repair work, the technician tested the cellphone and observed numerous images of suspected child pornography. The technician contacted the Chico Police Department. Officers obtained a warrant and searched the phone, finding numerous images of suspected child pornography.
Further investigation revealed that between May 13, 2013, and July 10, 2013, Klipp persuaded a minor to engage in sexually explicit conduct for the purpose of producing images of those acts and for the purpose of transmitting live visual depictions of that conduct. Klipp received these images from the minor as well as other images through the internet between March 20, 2013, and September 18, 2013.
On March 11, 2016, Klipp pleaded guilty to the charges. According to the factual basis in the plea agreement, Klipp was required to register as a sex offender under California Penal Code Section 290 after being convicted of sex offenses involving a minor in 2009 in Butte County.
This case was the product of an investigation by the Federal Bureau of Investigation, the Chico Police Department, and the California Department of Corrections and Rehabilitation. Assistant United States Attorney André M. Espinosa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Belleville Man Sentenced for Heroin Conspiracy OffenseRead the Press Release
Kelvin B. Hughes, 30, of Belleville, Illinois, was sentenced on September 8, 2016 in U.S. District Court for the Southern District of Illinois to 5 years in prison and 4 years of supervised release, for conspiracy to distribute heroin in excess of one-hundred grams.
Hughes pled guilty on May 6, 2016. At his change of plea hearing, Hughes admitted that he and co-defendant Urechan Brown sold heroin together in East St. Louis between 2013 and August, 2015. Hughes acknowledged that he sold well over one-hundred grams of heroin (about 3.5 ounces) during that time. Brown pled guilty to the same conspiracy charge on June 3, 2016 and is awaiting sentencing later this month.
The investigation which resulted in Hughes’s arrest and conviction was conducted by the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI). The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Allenwood Federal Prison Inmate Charged with Weapon PossessionRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 8, a federal grand jury in Williamsport indicted Glenn Ming Young for possession of contraband in a prison facility.
According to United States Attorney Peter Smith, Young, age 32, was found with an improvised shank during a search in August 2016, while he was incarcerated at the United States Penitentiary at Allenwood.
The investigation was conducted by the Federal Bureau of Investigation, and the Bureau of Prisons Special Investigative Service. Special Assistant United States Attorney Michael Figgsganter has been assigned to prosecute the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines. In this case, the maximum penalty for each count is 5 years’ imprisonment, a term of supervised release following imprisonment, and a fine of $250,000.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not necessarily an accurate indicator of the potential sentence for a specific defendant.
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Albuquerque Man Pleads Guilty to Federal Armed Robbery ChargeRead the Press Release
ALBUQUERQUE – Martin Huerta, 43, of Albuquerque, N.M., pled guilty this morning in federal court to an armed bank robbery charge. The guilty plea was entered without the benefit of a plea agreement.
Huerta was arrested in March 2016, on a criminal complaint charging him and four co-defendants, Greg Miera, 50, Christian Herrera, 20, Isaiah Gallegos, 20, and Christopher Gallegos, 31, all of Albuquerque, with bank robbery. According to the complaint, a source identified the co-defendants as the individuals involved in robbing the US Bank branch located at 5620 Wyoming Blvd. NE in Albuquerque, on March 30, 2016. The complaint alleged that Albuquerque Police Department (APD) officers conducted surveillance as a vehicle with four men pulled up to the US Bank on the afternoon of March 30, 2016. The complaint further alleged that three of the men remained outside in the vehicle while the fourth entered the US Bank, threatened to shoot the bank employees, and demanded that two bank tellers place cash into a plastic bag.
Huerta, Miera, Herrera, Isaiah Gallegos and Christopher Gallegos were subsequently indicted on an armed bank robbery charge on April 27, 2016.
During today’s proceedings, Huerta entered a guilty plea to the indictment. At sentencing, Huerta faces a statutory maximum penalty of 25 years in prison. Huerta remains in custody pending a sentencing hearing, which has yet to be scheduled.
Huerta’s four co-defendants have entered pleas of not guilty to the indictment. Charges in complaints and indictments are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Paul Mysliwiec is prosecuting the case.
2016 Strom Thurmond Awards for Excellence in Law EnforcementRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
Columbia, South Carolina – The United States Attorney’s Law Enforcement Coordinating Committee hosted the annual Strom Thurmond Awards for Excellence in Law Enforcement Luncheon today at the Fort Jackson Officers' Club, Fort Jackson, South Carolina. The awards luncheon was attended by state, local and federal law enforcement officials from across the state.
Federal – Special Agent Jeffrey Long, Federal Bureau of Investigation State – Assistant Chief Paul M. Grant, SLED City – Chief William Wallace Oswald, Batesburg-Leesville Police Department County – Sheriff A. Lane Cribb, Georgetown County Sheriff’s Office
The following South Carolina law enforcement officers received the 2016 awards:
The Strom Thurmond Awards for Excellence in Law Enforcement were established by Senator Strom Thurmond in 1983 to recognize law enforcement officers whose performances demonstrate the highest ideals of excellence in professional law enforcement. An annual award is given in each of four categories: (1) City Officer; (2) County Officer; (3) State Officer; and (4) Federal Officer. An awards committee composed of representatives from the U.S. Attorney's Office, the Strom Thurmond Foundation, the Federal Bureau of Investigation, and the South Carolina Law Enforcement Division, along with a police chief and sheriff who have received the award, selected the recipients from nominations received from across the state.
Acting United States Attorney Beth Drake stated, "It is an honor to recognize these four outstanding officers. Each of these officers exemplifies the best in law enforcement, serving their agencies, this state and our nation with distinction, integrity, and character. Their career path from officer on the street to executive, comes at great personal sacrifice for which we the people owe a debt of gratitude.” Federal Recipient Special Agent Jeffrey M. Long Federal Bureau of Investigation Special Agent Jeffrey M. Long graduated from Westfield State College in 1982, with a degree in Criminal Justice. He served in the United States Marine Corps from 1983 to 1986, achieving the rank of First Lieutenant. In 1987, Special Agent Long began his law enforcement career as a police officer with the Hudson Police Department in Hudson, New Hampshire. In 1989, he joined the New Hampshire State Police as a State Trooper where he worked for eight years. While serving as a State Trooper, he was a member of the New Hampshire State Police SWAT team and a Firearms Instructor. In 1997, Special Agent Long joined the FBI. Upon graduating from the FBI Academy, he was assigned to the Columbia Field Office’s Myrtle Beach Residence Agency where he has spent the last 19 years as an FBI Special Agent. He has worked various crimes including bank robberies, violent gangs, criminal enterprise investigations, child pornography, armored car heists, and high profile kidnapping cases. Special Agent Long was the lead case agent on a horrific kidnapping and murder investigation which resulted in the first two federal death penalty sentences in South Carolina history. Special Agent Long has had an enormous impact in the Myrtle Beach community and the state of South Carolina during his FBI career. He has been a leader in Myrtle Beach through his liaison with outside agencies, his guidance and direction in complex and high profile investigations, and most importantly his servant based attitude of helping others. During his distinguished career, Special Agent Long has served on the FBI SWAT team, Evidence Response Team, and as a National Academy Class Counselor during 2005. State Recipient Assistant Chief Paul “Cricket” Grant SC Law Enforcement Division Assistant Chief Paul “Cricket” Grant began his career with SLED on August 6, 1976, as a Field Agent. He rose through the ranks at SLED, being named Assistant Chief on October 2, 2015. Prior to being named to his present position he was the Major of Investigative Services, where he provided direct oversight and leadership to the largest component of SLED and supervised all investigative matters handled by the agency. Prior to assuming that position, he served as Captain over the Midlands Investigative Region and as Lieutenant over the Midlands Investigative Region. Cricket is a veteran law enforcement officer having more than 40 years of dedicated service. His interest in law enforcement and public service began at an early age, as his father was a veteran law enforcement officer who retired after serving 16 years as the Sheriff of Aiken County. Assistant Chief Grant’s educational background includes an Associate of Science degree in Criminal Justice from the University of South Carolina, a graduate of the only all SLED Agent class from the S. C. Criminal Justice Academy and a 2003 graduate of the FBI National Academy, 212th Session. Assistant Chief Grant has mentored many law enforcement officers around the state, many of whom hold high level law enforcement administrative positions. Throughout his forty-year career, he has been involved in countless high-profile cases that, but for his investigative knowledge, an ability to forge long lasting partnerships with local law enforcement and his leadership abilities, may not have been solved. Assistant Chief Grant is currently an active member of the South Carolina FBI National Associates, the South Carolina Law Enforcement Officers’ Association, the Association of State Criminal Investigative Agencies, Fellowship of Christian Peace Officers and the Aiken Sertoma Club. Assistant Chief Grant and his wife, Marilyn, are active members of Millbrook Baptist Church. City Recipient Chief William Wallace Oswald Batesburg-Leesville Police Department Chief William Wallace Oswald has served the Batesburg-Leesville community as a law enforcement officer for more than 40 years, beginning with the Batesburg Police Department in March 1976. In May 1979, he was promoted to the position of Chief of Police, where he has remained until this day. Having served as Chief of Police for more than 37 years, he is likely the longest serving chief in South Carolina history. Over the years, Chief Oswald has instituted numerous programs and initiatives to improve services to the community and the safety of his officers, including the department’s first explosives response program and the department’s first Narcotics Interdiction Dog Program. Chief Oswald’s department was the first in the central midlands to have a body-worn camera program and many departments reached out to him for his policy and recommendations. With training at the heart of his leadership style, Chief Oswald has literally trained generations of local law enforcement officers in firearms proficiency and defensive tactics. Chief Oswald is a graduate of the FBI National Academy, 147th Session and earned a Bachelor’s Degree in Business Administration from Limestone College in 2005. He served in the Army National Guard from 1988 to 2011, attaining the rank of Command Sergeant Major. His service to his country includes deployments in Iraq and Afghanistan in an ordinance disposal unit. While on active duty, he was awarded two Bronze Stars. Chief Oswald resides in Batesburg—Leesville with his wife and two children.
County Recipient Sheriff A. Lane Cribb Georgetown County Sheriff’s Office Sheriff Cribb began his career in law enforcement with the South Carolina Alcohol Beverage Commission as an Investigator in 1973. He then worked as a Criminal Investigator with the Florence County Sheriff’s Office until he returned home to work as an Investigator with the Georgetown County Sheriff’s Office. Sheriff Cribb is currently serving his sixth term as Sheriff of Georgetown County. Under Sheriff Cribb’s leadership, Georgetown County’s crime clearance rates far exceed national and state levels. He has established more than thirty Neighborhood Watch programs, the successful Georgetown County Sheriff’s Re-Entry program, the Georgetown Sheriff’s Family Justice Center, the Georgetown County Sheriff’s Family Justice Center, and the G-MEN group which raises money and community awareness about domestic violence. Sheriff Cribb attended Horry-Georgetown Technical College, Limestone College, and the University of Alabama. He has a Bachelor’s degree in Business Administration and is also a graduate of the Carolina Command College, National Center for Rural Law Enforcement, South Carolina Criminal Justice Academy, Law Enforcement Executive Development School at the FBI Academy, and numerous other law enforcement training schools. Sheriff Cribb resides in Pawley’s Island of Georgetown County with his wife, Craig, and they have three children. #####
8 September 2016
Woman Pleads Guilty to Unlawful Transfer of Identification DocumentsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that SILVIA MARIA GARCIA-COYADO, age 34, last residing in Houma, pled guilty today to a three-count Indictment for unlawful transfer of identification documents.
According to the court documents, on or about January 20, 2016, GARCIA-COYADO provided a confidential informant with a Texas identification card and a Social Security card in exchange for $120. The documents provided had the name, photograph, and date of birth specified by the informant. The Social Security number on the card was associated with an actual person who was not the person identified on the card. On May 25, 2016, and June 2, 2016, GARCIA-COYADO provided an undercover agent with Texas identification cards and Social Security cards in exchange for money. The documents had the name, photograph, and date of birth specified by the agent. The Social Security numbers on the cards were associated with actual people who were not those identified on the cards.
GARCIA-COYADO faces a maximum term of imprisonment of 15 years, a fine of $250,000, three years supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Nannette Jolivette Brown set sentencing for October 20, 2016.
U.S. Attorney Polite praised the Department of Homeland Security and the Louisiana State Police in investigating this matter. Assistant United States Attorney Emily K. Greenfield is in charge of the prosecution.
Washington Man Arrested, Charged with Defrauding Alaskans Out of Approximately $2.7 MillionRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Washington man has been charged in Alaska with 11 counts of wire fraud and eight counts of money laundering. His wife has been charged with one count of social security fraud in Washington. They were both arrested this morning in Washington.
Floyd Jay Mann, Jr., 55, of Puyallup, Washington, is charged in a 19-count indictment returned in Anchorage with a scheme to defraud victims in Alaska. His wife, Cheryl Mann, 51, also of Puyallup, Washington, is charged with one count of defrauding the Social Security Administration in an indictment returned in Seattle, Washington.
According to Assistant U.S. Attorney Aunnie Steward, who presented the case against Floyd Mann to the Alaska grand jury, Floyd Jay Mann, Jr. defrauded Alaskans of approximately $2.7 million by falsely leading the victims to believe that he was the recipient of a multimillion-dollar settlement from a class-action lawsuit with a pharmaceutical company. Mann told victims that if they helped to pay Mann’s medical bills and other lawsuit-related expenses, the victims would be paid back plus a substantial return on their money when Mann’s multimillion-dollar settlement was released by the court. In fact, Mann did not use the victim’s money to pay medical bills and there was no lawsuit settlement, and instead Mann used the money he obtained from the victims to gamble at a casino and win over $1 million over the course of the scheme.
According to Special Assistant U.S. Attorney Benjamin Diggs, who presented the case against Cheryl Mann to the Western District of Washington grand jury, during the course of Floyd Mann’s scheme, he and his wife Cheryl Mann and their son collected approximately $56,000 in need-based Supplemental Security Income benefits. Cheryl Mann was the designated payee for Floyd Mann and their son and responsible for reporting any changes in the household income or assets. During this time, Cheryl Mann won approximately $125,000 at a casino. That income, as well as the funds obtained by her husband, would have disqualified the Manns from the public assistance they received.
For Floyd Mann’s charges, the law provides for a maximum sentence of 20 years’ incarceration and a $500,000 fine or both. For Cheryl Mann’s charge the law provides for a maximum sentence of five years’ incarceration and a $250,000 fine or both. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
“Fraud comes in all shapes and sizes, but this particular fraud is rather peculiar. The accused not only bilked millions of dollars from Alaskans in a well-concocted scheme, they further squandered the ill-gotten gains on gambling all while collecting Social Security benefits for which they no longer qualified. Unfortunately for the defendants, IRS CI Special Agents are expertly and uniquely skilled to follow the money in these and other types of financial crimes,” stated Special Agent in Charge Darrell Waldon of IRC Criminal Investigation.
The IRS Criminal Investigations, FBI, and Social Security Office of Inspector General, conducted the investigation leading to the indictment in the case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilty beyond a reasonable doubt.
Utah Man Arrested in Real Estate Investment Scheme that Targeted Orange County Investors, Who Lost Millions of DollarsRead the Press Release
SANTA ANA, California – A Utah man has been arrested for his role in a real estate fraud scheme in which Southern California investors collectively suffered nearly $3.5 million in losses.
Shawn Patrick Watkins, 46, of Layton, Utah, was taken into custody on September 1 when he surrendered to FBI agents in Orange County. Watkins had been charged with mail fraud, wire fraud and money laundering in a nine-count indictment returned on August 17 by a federal grand jury.
Watkins and others offered investments in a company known as The Equity Growth Group (TEGG) between approximately 2007 through 2014. According to the indictment, the victims were solicited during seminars in Orange County hotels offered by Investor Workshops, Inc., in which Watkins presented himself as an expert in the field of real estate investment. In order to lend credibility to the scheme, Watkins attempted to gain trust by telling investors that he was formerly employed as a law enforcement officer.
As part of the solicitations, Watkins made omissions and false promises to investors. For example, the indictment alleges that Watkins falsely told investors that TEGG controlled hundreds of properties that generated rental income and TEGG would continue its growth by acquiring new properties. Watkins led investors to believe that they would receive substantial interest payments or that their money would be secured by collateral through the filing of deeds of trust on properties.
In reality, over the course of the several years, until the scheme collapsed in the spring of 2014, TEGG was not acquiring new properties and had a negative cash flow. Investor money was not used to acquire new properties, nor was it secured by collateral, and many victims did not receive interest payments. In fact, money that was paid to some victims as purported interest or a return on their investment came from investments made by other victims.
Over the course of the scheme, more than 50 investors lost approximately $3.4 million with TEGG, the indictment alleges.
“This defendant took great pains to lend legitimacy to his scheme, such as holding elaborate seminars and presenting himself as an expert investor,” said United States Attorney Eileen M. Decker. “But, as we see all too often, the false claims were designed to support a Ponzi scheme that took money from unsuspecting victims for a number of years. We are committed to seeking justice in these cases and doing whatever we can to recover money lost by victims to such schemes.”
“Mr. Watkins greatly overstated his relationship with law enforcement as a way to gain the trust of investors, only to get the attention of law enforcement by stealing their money,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Anyone who believes they may have been targeted by the defendant is urged to contact the FBI."
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
If convicted of the nine charges in the indictment – four counts of mail fraud, two counts of wire fraud and two counts of money laundering, Watkins would face a statutory maximum penalty of 180 years in federal prison.
Watkins was arraigned on the indictment on September 1 and entered not guilty pleas to the charges. He was ordered freed on a $35,000 bond and was ordered to stand trial on October 25 before United States District Judge Cormac J. Carney.
Investigators believe Watkins may have been involved in another investment scheme and may have victimized investors in Utah, California and possibly other states. Anyone who may have invested money with Watkins and believes they may be a victim of fraud is urged to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
The investigation in this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Gregory W. Staples of the Santa Ana Branch Office.
U.S. Attorney Announces Indictment of Former Union President for Embezzling Union FundsRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, and Andriana Vamvakas, District Director of the Office of Labor-Management Standards, U.S. Department of Labor (“OLMS”), announced today that a grand jury sitting in White Plains has returned an Indictment charging BRIAN W. SCOTT with embezzlement of union funds, mail fraud, and making false statements to the Department of Labor.
Manhattan U.S. Attorney Preet Bharara said: “Brian Scott allegedly abused the trust placed in him by the hard-working men and women of Local 503 by stealing the union’s money and spending it on himself. I thank the Department of Labor’s Office of Labor-Management Standards for their work in this investigation.”
OLMS District Director Andriana Vamvakas said: “Embezzlement of union funds doesn’t only violate the law, it also betrays the trust of the union membership who rightfully expect their officials to protect and safeguard their union’s funds and assets. We thank U.S. Attorney Bharara’s office for its work on this case and look forward to working again with it and other agencies to root out such corruption.”
The Indictment[1] alleges that SCOTT, the former president of Local 503 of the International Brotherhood of Electrical Workers in Monroe, New York, embezzled more than $63,000 from Local 503 between July 2008 and February 2012. According to court filings, SCOTT made unauthorized charges to Local 503’s credit cards for personal items such as computers and other electronic devices, and travel, dining, and entertainment expenses. SCOTT also charged fees for a bail bond to Local 503’s credit card following his arrest on unrelated charges in 2012. In addition, SCOTT wrote checks to himself from Local 503’s checking account. SCOTT claimed the checks were reimbursement for a clothing allowance and unused vacation time, neither of which was permitted under Local 503’s policies.
SCOTT, 46, of Miami Beach, Florida, faces a maximum sentence of 20 years in prison on the mail fraud count, five years in prison on the embezzlement count, and one year in prison on the false statement count.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentence imposed on the defendant will be determined by the Court.
Mr. Bharara praised the investigative work of the Department of Labor’s Office of Labor-Management Standards.
This prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Maurene Comey and James McMahon are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Two Sisters Sentenced to More Than Seven Years in Prison on Drug Trafficking ChargesRead the Press Release
ASHEVILLE, N.C. – On Tuesday, September 6, 2016, U.S. District Max O. Cogburn, Jr. sentenced two sisters to 87 months in prison and five years of supervised release on drug trafficking charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Melissa Sigmon, 29, and Shana Sigmon, 26, both of Sylva, N.C. each pleaded guilty to one count of distribution of methamphetamine.
According to filed court documents and yesterday’s sentencing hearings, from about September 2014 to about January 2015, Melissa and Shana Sigmon were members of a drug network responsible for trafficking large quantities of methamphetamine in Georgia and Western North Carolina. Shana Sigmon ’s fiancée was running the distribution ring from inside a Georgia prison, where he was serving time for a narcotics trafficking offense. According to court records, Shana and Melissa Sigmon accepted multi-pound shipments of methamphetamine and then re-distributed the drugs to wholesale customers throughout Georgia and Western North Carolina. According to court records, over the course of the investigation Shana Sigmon was responsible for trafficking more than 14.5 kilograms of methamphetamine and Melissa Sigmon trafficked more than 12.5 kilograms of methamphetamine.
The defendants are currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
U.S. Attorney Rose thanked the DEA, the North Carolina State Bureau of Investigation, the Jackson County Sheriff’s Office, the Swain County Sheriff’s Office, and the Catawba County Sheriff’s Office for handling the investigation. Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville prosecuted the case.
Two Sentenced for Participating in Online Drug Distribution and Money Laundering SchemeRead the Press Release
PITTSBURGH - One resident of India and one resident of Canada have been sentenced in federal court on convictions stemming from their roles in an online drug distribution and money laundering conspiracy, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon first sentenced Zuned Sunesra, of Mumbai, India, to a term of imprisonment of 30 months in prison, a term of supervised release of one year, and forfeiture of $1,200,000 to the United States. In a separate proceeding, Judge Bissoon sentenced Taimur Khan, of Surrey, British Columbia, to a term of imprisonment of time served.
According to information presented to the Court, Zuned Sunesra and Khan were members of a conspiracy operating a network of pharmacy websites, including emedoutlet.com. The network of websites was owned by Asian Capital Equities, of which Zuned Sunesra was the director and part owner. Zuned Sunesra was personally engaged in running certain aspects of the websites, which distributed unapproved and misbranded prescription drugs into the United States. The websites often required no prescription from customers, and the websites had no license to operate as online pharmacies under U.S. law. The websites also claimed that the drugs sold were approved by the Food and Drug Administration (FDA) and were similar to drugs sold in the United States, when in fact that was not true. The drugs sold illegally included Schedule IV and V controlled substances containing the active ingredients of the drugs commonly known as Soma, Provigil, Darvocet, Darvocet-N, Meridia, and Lyrica.
Khan’s role was to set up a fake “gift card” company called “mygiftcard.biz,” the purpose of which was to convince credit card processors such as Visa and Mastercard that emedoutlet.com and its affiliate websites were selling gift cards instead of illegal medications. This was necessary because traditional credit card processors attempt to avoid conducting business with illegal enterprises, such as illegal online pharmacies. Khan’s company allowed customers of the pharmacy websites to use their credit cards to purchase gift cards, which appeared to be for merchants such as the Gap and JC Penny. However, rather than redeem the gift cards with these merchants, the customers immediately redeemed the gift cards at emedoutlet.com and the affiliate websites in exchange for illegal drugs. Zuned Sunesra was also directly involved in the processing of customers’ payments to the websites, as well the transfer of funds gained from the customers’ payments to accounts outside of the United States.
U.S. Attorney Hickton commended the FDA Office of Criminal Investigations and the Internal Revenue Service – Criminal Investigation for conducting the investigation in this case. Assistant United States Attorneys Eric Rosen, Jonathan Ortiz, and Conor Lamb prosecuted this case on behalf of the government.
Two Men Arrested for Allegedly Hacking Senior U.S. Government OfficialsRead the Press Release
ALEXANDRIA, Va. – Andrew Otto Boggs, aka “INCURSIO,” 22, of North Wilkesboro, North Carolina, and Justin Gray Liverman, aka “D3F4ULT,” 24, of Morehead City, North Carolina, were arrested today on charges related to their alleged roles in the computer hacking of several senior U.S. government officials and U.S. government computer systems.
According to charging documents filed with the court, Boggs and Liverman conspired with members of a hacking group that called itself “Crackas With Attitude.” From about October 2015 to February 2016, the group used “social engineering” hacking techniques, including victim impersonation, to gain unlawful access to the personal online accounts of senior U.S. government officials, their families, and several U.S. government computer systems. In some instances, members of the conspiracy uploaded private information that they obtained from victims’ personal accounts to public websites; made harassing phone calls to victims and their family members; and defaced victims’ social media accounts. At least three other members of the conspiracy are located in the United Kingdom and are being investigated by the Crown Prosecution Service.
Boggs and Liverman will have their initial appearances at the federal courthouse in Alexandria next week in front of U.S. Magistrate Judge Theresa Carroll Buchanan.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Brian J. Ebert, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after Boggs and Liverman were arrested.
Special Assistant U.S. Attorney Joseph V. Longobardo and Assistant U.S. Attorneys Jay V. Prabhu and Maya D. Song are prosecuting the case on behalf of the U.S. Attorney’s Office for the Eastern District of Virginia. The U.S. Attorney’s Offices for the Eastern and Western Districts of North Carolina, and the FBI’s Charlotte Division provided significant assistance with the investigation.
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-406.
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.
Two Individuals Indicted in September Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the September 2016 Federal Grand Jury.
"The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
JULIUS FERRELL BLACK, age 29, of Tahlequah, Oklahoma
Felon In Possession Of Firearm
Possession Of Firearm With An Obliterated Serial NumberThe Indictment alleges that on or about June 29, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, with an obliterated serial number, which had been shipped and transported in interstate or foreign commerce.
The charges arose from an investigation by the Cherokee County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms. The charges are in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by no more than 10 years imprisonment, a fine up to $250,000.00 or both and Title 18, United States Code, Sections 922(k) and 924(a)(1)(B), punishable by not more than 5 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Timothy Hammer
BUDDY LYNN VISSER, age 56, of Okmulgee, Oklahoma
Felon In Possession Of Firearm
Felon In Possession Of Firearm And Ammunition
Possession Of Unregistered Firearm (Machine Gun)
Possession Of Unregistered Firearm (Short-Barreled Rifle)
Possession Of Unregistered Firearm (Silencer)
Possession Of Firearm (Silencer) Which Is Not Identified By Serial NumberThe Indictment alleges that on or about July 10, 2016, July 25, 2016 and August 17, 2016, in the Eastern District of Oklahoma, and elsewhere, the defendant, an individual having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce firearms and ammunition, which had been shipped and transported in interstate commerce. It further alleges that on or about August 17, 2016, the defendant did knowingly possess a machine gun, a rifle, having a barrel less than 16 inches in length and 7 silencers, 2 of which were without serial numbers, all classified as firearms, that were not registered to him in the National Firearms Registration and Transfer Record.
The charges arose from an investigation by the Highland, Illinois Police Department, the United States Postal Service and the Bureau of Alcohol, Tobacco and Firearms. The charges are in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both; Title 26, United States Code, Sections 5861(d), 5841 and 5871, punishable by not more than 10 years imprisonment, up to a $10,000.00 fine or both and Title 26, United States Code, Sections 5842(b), 5861(i) and 5871, punishable by not more than 10 years imprisonment, up to a $10,000.00 fine or both.
Assistant United States Attorney Dean Burris
Timber Lake Woman Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Randolph J. Seiler announced that a Timber Lake, South Dakota, woman convicted of Assault with a Dangerous Weapon and Aiding and Abetting was sentenced on August 29, 2016, by U.S. District Judge Roberto A. Lange.
Melanie Buffalo, age 36, was sentenced to 30 months in custody, followed by 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Buffalo was indicted by a federal grand jury on January 21, 2016. She pled guilty on June 6, 2016.
The conviction stems from an incident that occurred on November 5, 2015, at Timber Lake, when the victim attempted to intervene in a physical altercation that was taking place between Dustin Buffalo and one of the victim’s stepchildren. When the victim attempted to intervene in the altercation, Melanie joined Dustin Buffalo in physically assaulting the victim. Melanie hit the victim first with her fists, and then grabbed a glass and struck the victim on the side of the head, knocking him to the floor. The victim’s head was cut open and he began to bleed. While he was lying on the floor, both Melanie and Dustin Buffalo repeatedly hit and kicked the victim with shod feet.
The victim received medical treatment for his injuries, but continues to have problems with dizziness, headaches, and blurred vision because of the assault.
Dustin Buffalo was previously sentenced to 40 months for his part in the crime.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Dewey County Sheriff’s Office. Assistant U.S. Attorney Jay Miller prosecuted the case.
Melanie Buffalo was immediately turned over to the custody of the U.S. Marshals Service.
Texas Woman Sentenced to 10 Years for Possession with Intent to Distribute HeroinRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LORI BROADWAY, age 34, of Galveston, Texas, was sentenced today after pleading guilty to one count of possession with the intent to distribute one kilogram or more of heroin.
U.S. District Judge Lance M. Africk sentenced BROADWAY to 120 months imprisonment, to be followed by 5 years of supervised release.
According to court documents, on January 22, 2016, officers conducting narcotics interdiction at the AMTRAK station in New Orleans identified BROADWAY, a train passenger arriving from Houston, Texas, as a possible drug trafficker. After officers obtained consent to search BROADWAY’s suitcases, they located and seized approximately six kilograms of heroin.
U.S. Attorney Polite praised the work of the U.S. Drug Enforcement Administration and the Louisiana State Police in investigating this matter. Assistant United States Attorney Andre’ Jones was in charge of the prosecution.
Talisheek Man Charged with Methamphetamine Trafficking and Illegal Possession of FirearmsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JAMES MOORE, JR., age 47, of Talisheek, Louisiana, was charged today in a five-count Indictment with possession with the intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 21, United States Code, Section 841(a)(1) and Title 18, United States Code, Section 924(c)(1)(A), respectively.
According to previously filed court documents, beginning in January 2016, the Federal Bureau of Investigation (FBI) conducted numerous controlled purchases of methamphetamine from MOORE. Their investigation further revealed MOORE to be in possession of numerous firearms. On August 29, 2016, several search warrants were executed and MOORE was arrested by the FBI.
If convicted of Counts 1-3, Distribution of Methamphetamine, MOORE faces a maximum penalty of up to twenty years imprisonment, a $1,000,000 fine, and a five year term of supervised release.
If convicted of Count 4, Possession with Intent to Distribute Methamphetamine, MOORE faces a minimum of five years to forty years imprisonment, a $5,000,000 fine, and a five year term of supervised release.
If convicted of Count 5, Possession of a Firearm in furtherance of a Drug Trafficking Crime, MOORE faces a minimum of five years to life imprisonment (to be served consecutive to any other imposed terms of imprisonment), a $250,000 fine, and a three year term of supervised release.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the FBI New Orleans Division JTTF for investigating this matter. Assistant United States Attorney Gregory M. Kennedy is in charge of the prosecution.
Suspected Gang Member Pleads Guilty to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Darmetrius Braggs, 19, of Buffalo, NY, pleaded guilty before U.S. District Court Judge Frank P. Geraci to possession of a firearm in furtherance of drug trafficking activity. The charge carries a mandatory minimum penalty of five years in prison, a maximum of life, and a $1,000,000 fine.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that Buffalo Police Department officers received information that the defendant robbed an individual at gun point on October 30, 2015, on Blaine Avenue in Buffalo. During the investigation, officers learned that Braggs would be at a party on Freund Avenue in Buffalo on November 7, 2015.
On November 7, 2015, undercover officers contacted Braggs by cellular telephone and arranged an undercover purchase of marijuana. The defendant told the officers to meet him near Genesee Street and Freund Avenue in Buffalo to purchase the marijuana. As officers arrived at the location, Braggs fled on foot and entered 22 Freund Avenue, where officers located the defendant. Officers also found a cellular telephone and multiple vials of what appeared to be marijuana near the rear entrance of the residence. In addition, officers also recovered a loaded pistol in the back yard of 22 Freund Avenue.
The pistol recovered by officers resembles a firearm the defendant posed with multiple times on social media websites.
The plea is the culmination of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.
Sentencing is scheduled for December 2, 2016, before Judge Geraci.
Suquamish Tribal Couple Sentenced to Prison for Repeated Physical Abuse of their ChildrenRead the Press Release
A member of the Suquamish Tribe and his wife were sentenced to prison today in U.S. District Court in Tacoma for the repeated physical abuse of two of their six children, announced U.S. Attorney Annette L. Hayes. GARNET L. MABE, 32, of Suquamish, Washington was sentenced to 30 months in prison and three years of supervised release. MELISSA F. MABE, 35, was sentenced to one year in prison and three years of supervised release. Six children have been removed from their care and Suquamish Tribal authorities are working to terminate their parental rights. At sentencing U.S. District Judge Ronald B. Leighton said, “this is a tragic situation. To see two parents who turn on their children and treat them in this fashion is inexplicable…. You robbed your children of their childhood and their trust.”
According to records filed in the case, Suquamish Tribal Child Welfare workers received a complaint reporting abuse of the MABE children in February 2015. Workers went to the home on the Suquamish Reservation and interviewed the children. The two oldest children, ages 8 and 7, had multiple bruises and reported being hit, choked and kicked by their parents. All of the children were removed from the home, and were taken to Seattle Children’s Hospital for further evaluation. The investigation revealed that the children had been choked to the point of passing out; had been poked and cut with knives; had been kicked in the stomach; had been beaten with drumsticks, a back scratcher and metal ladle; and had been punished by being denied food.
The couple was charged federally in May 2015 and was indicted by the grand jury in June 2015. In February 2016 each pleaded guilty to two counts of Assault of a Child Resulting in Substantial Bodily Injury.
The Suquamish Tribal Police, the Suquamish Tribal Child Welfare Department and the FBI investigated the case. The case was prosecuted by Assistant United States Attorneys Ye-Ting Woo and Rebecca Cohen. The case was prosecuted federally as part of the U.S. Attorney’s Office mission to combat crimes of violence in Tribal communities.
South Jersey Man Sentenced to 15 Months in Prison for Hiring Illegal Immigrants, Failing to Collect Payroll TaxesRead the Press Release
CAMDEN, N.J. - A Sicklerville, New Jersey, man was sentenced today to 15 months in prison for his role in a conspiracy to evade payroll taxes on cash wages paid to illegal immigrants employed at his dry cleaning business, U.S. Attorney Paul J. Fishman announced.
Phillip Hui, 38, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of conspiracy to obstruct and impede the IRS relating to the failure to collect, account for and pay payroll taxes and one count of harboring illegal aliens. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Hui and Kathy Lei, 36, of Williamstown, New Jersey, owned New Eastern Cleaners in Voorhees Township, New Jersey. Lei, along with two other individuals, owned a house on South Main Street in Williamstown.
Hui knew he was required to verify that all of his employees were eligible to work in the United States, either as U.S. citizens or immigrants who had work authorization from Immigration and Customs Enforcement. However, at various times in 2012 and 2013, Hui and Lei hired foreign nationals B generally from Mexico or Guatemala B who did not have legal status in the United States. While working at New Eastern Cleaners, the undocumented immigrants lived in the South Main Street house.
At various times, Hui or Lei paid the undocumented immigrants in cash. They were required to work six days a week, approximately 10 hours a day and paid between $400 and $500 dollars per week. Their rent was part of the employment compensation. Hui also admitted that he would transport them or arrange their transportation between the South Main Street house and New Eastern Cleaners.
Hui admitted that when Lei filed Employer's Quarterly Federal Tax Return, Form 941, for all tax quarters in 2012 and the first three quarters in 2013, she only reported wages paid to legal employees of New Eastern Cleaners. She failed to report the wages and pay employment taxes for at least 13 undocumented immigrant employees in 2012 and at least 14 undocumented immigrant employees in 2013.
By filing the false tax forms in 2012 and 2013, Lei and Hui failed to pay the IRS employment taxes of at least $97,104 for the undocumented immigrant employees.
In addition to the prison term, Judge Kugler sentenced Hui to three years of supervised release and ordered him to pay restitution of $98,864. On May 2, 2016, Lei pleaded guilty to the same charges and is scheduled to be sentenced Oct. 14, 2016.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), under the direction of Special Agent in Charge Terence S. Opiola, and special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea. He also thanked ICE’s Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris, for its assistance in this investigation.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.
Defense counsel:
Hui: Jeffrey Zucker Esq., Camden,
Lei: Michael Engle Esq., Philadelphia
Six Florida Drug Enterprise Members Convicted for Roles in Racketeering and Drug Conspiracies, Several Murders and Related OffensesRead the Press Release
After 12 weeks of trial, six defendants have been convicted for their roles in wide-ranging racketeering and drug distribution conspiracies that involved seven murders, firearms offenses and related criminal conduct.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida and Special Agent in Charge Daryl McCrary of the Bureau of Alcohol, Tobacco, Firearms and Explosives in Tampa, Florida, made the announcement.
Nathaniel Harris, 25, aka Popo; Napoleon Harris, 32, aka Pole; Charlie Green, 29, aka Mr. 30N32; Jerry Green, 30, aka Jerk; Corey Harris, 26, aka James; and Deonte Martin, 31, aka Tang, all of Bradenton and St. Petersburg, Florida, were each convicted today of one count of drug distribution conspiracy. Nathaniel Harris, Napoleon Harris, Charlie Green, Jerry Green and Martin were each convicted of one count of racketeering conspiracy. In addition, Nathaniel Harris was convicted of two counts of murder and one count each of attempted murder, armed kidnapping, maintaining a house used for drug distribution, use of a firearm in furtherance of maintaining a drug house, possession with intent to distribute cocaine base and cocaine, use of a firearm in furtherance of drug crimes, felon in possession of ammunition and felon in possession of firearms and ammunition; Charlie Green was convicted of three counts of murder; Jerry Green was convicted of two counts of murder; Napoleon Harris was convicted of one count of murder and one count of felon in possession of ammunition; and Martin was convicted of one count each of murder, possession with intent to distribute cocaine base, possessing a firearm in furtherance of drug trafficking and felon in possession of a firearm. Corey Harris pleaded guilty during trial to three counts of distribution of crack cocaine.
According to evidence presented at trial, the defendants were members of a racketeering enterprise that controlled illicit drug distribution and committed murders for hire in and around Bradenton, a small community in Manatee County, Florida. From about 2006 through 2014, evidence showed that the defendants were responsible for murdering seven individuals who had crossed members of the enterprise in some fashion or whom members had been hired to murder. One of the murder victims was gunned down at a community center in front of hundreds of children and their parents. Evidence presented at trial also demonstrated that the racketeering enterprise attempted to murder an eighth individual who survived but is now paralyzed and confined to a wheelchair.
Evidence presented at trial showed that the defendants’ enterprise maintained a number of so-called “trap houses” that were used to distribute cocaine, cocaine base, MDMA, oxycodone and marijuana, and used extreme violence to collect drug debts and enforce its control of the drug trafficking in its territory. The enterprise also used threats of violence to prevent members of the community from testifying against enterprise members.
Twelve enterprise members and co-conspirators previously pleaded guilty to drug trafficking, firearms and other offenses in connection with this case.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Attorney’s Office of the Middle District of Florida investigated the case, with assistance from other federal and state and local law enforcement agencies. Assistant U.S. Attorneys Christopher Murray, Natalie Adams and Walter “Terry” Furr of the Middle District of Florida, and Trial Attorney Marty Woelfle of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
Six Florida Drug Enterprise Members Convicted for Roles in Racketeering and Drug Conspiracies, Several Murders and Related OffensesRead the Press Release
Tampa, FL – After 12 weeks of trial, six defendants have been convicted for their roles in wide-ranging racketeering and drug distribution conspiracies that involved seven murders, firearms offenses and related criminal conduct.
U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Special Agent in Charge Daryl McCrary of the Bureau of Alcohol, Tobacco, Firearms and Explosives in Tampa, Florida, made the announcement.
Nathaniel Harris, 25, aka Popo; Napoleon Harris, 32, aka Pole; Charlie Green, 29, aka Mr. 30N32; Jerry Green, 30, aka Jerk; Corey Harris, 26, aka James; and Deonte Martin, 31, aka Tang, all of Bradenton and St. Petersburg, Florida, were each convicted today of one count of drug distribution conspiracy. Nathaniel Harris, Napoleon Harris, Charlie Green, Jerry Green and Martin were each convicted of one count of racketeering conspiracy. In addition, Nathaniel Harris was convicted of two counts of murder and one count each of attempted murder, armed kidnapping, maintaining a house used for drug distribution, use of a firearm in furtherance of maintaining a drug house, possession with intent to distribute cocaine base and cocaine, use of a firearm in furtherance of drug crimes, felon in possession of ammunition and felon in possession of firearms and ammunition; Charlie Green was convicted of three counts of murder; Jerry Green was convicted of two counts of murder; Napoleon Harris was convicted of one count of murder and one count of felon in possession of ammunition; and Martin was convicted of one count each of murder, possession with intent to distribute cocaine base, possessing a firearm in furtherance of drug trafficking and felon in possession of a firearm. Corey Harris pleaded guilty during trial to three counts of distribution of crack cocaine.
According to evidence presented at trial, the defendants were members of a racketeering enterprise that controlled illicit drug distribution and committed murders for hire in and around Bradenton, a small community in Manatee County, Florida. From about 2006 through 2014, evidence showed that the defendants were responsible for murdering seven individuals who had crossed members of the enterprise in some fashion or whom members had been hired to murder. One of the murder victims was gunned down at a community center in front of hundreds of children and their parents. Evidence presented at trial also demonstrated that the racketeering enterprise attempted to murder an eighth individual who survived but is now paralyzed and confined to a wheelchair.
“Today, first and foremost, our thoughts are with the families of the victims murdered by these defendants. We are thankful that they have finally received the justice they deserve. These six individuals were part of a ruthless criminal enterprise that, for too long, preyed on the community by committing seven murders and countless other acts of violence. These men engaged in an escalating gang war, culminating with the public execution of Brenton Coleman during the first day of pee wee football in Bradenton,” stated U.S. Attorney Bentley. “We are grateful for the many community members who bravely came forward and testified, despite a systematic effort at witness intimidation. Today’s verdicts demonstrate the Department of Justice’s commitment to combating gang violence and drug trafficking. Working in partnership with federal, state, and local law enforcement, we will continue to prosecute gang members and work to make our neighborhoods safer.”
Evidence presented at trial showed that the defendants’ enterprise maintained a number of so-called “trap houses” that were used to distribute cocaine, cocaine base, MDMA, oxycodone and marijuana, and used extreme violence to collect drug debts and enforce its control of the drug trafficking in its territory. The enterprise also used threats of violence to prevent members of the community from testifying against enterprise members.
Twelve enterprise members and co-conspirators previously pleaded guilty to drug trafficking, firearms and other offenses in connection with this case.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Attorney’s Office of the Middle District of Florida investigated the case, with assistance from other federal and state and local law enforcement agencies. Assistant U.S. Attorneys Christopher Murray, Natalie Adams and Walter “Terry” Furr of the Middle District of Florida, and Trial Attorney Marty Woelfle of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
Sentencings for September 6 - September 7, 2016Read the Press Release
Jaime Nieto, 53, of Rock Springs, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on September 7, 2016, for tax evasion and misuse of a social security number. He received 21 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $200.00 special assessment and $143,243.73 in restitution for unpaid taxes and interest.
In June, a jury convicted Mr. Nieto. The evidence at trial showed that the Mr. Nieto filed income tax returns for tax years 2007-2011 which reported taxes due. Mr. Nieto made some tax payments but never paid all of his income taxes for any of these tax years. When the Internal Revenue Service attempted to collect the unpaid income taxes, Jaime Nieto unlawfully concealed assets available to pay the tax debt by opening and maintaining bank accounts using a social security number which did not belong to him and by using his business checking account, which the IRS could not levy to collect his personal tax debt, for all of his personal expenses. The case was investigated by Internal Revenue Service, Criminal Investigations.
Ginger Eva Ephrim, 20, was sentenced by Federal District Court Judge Scott W. Skavdahl on September 6, 2016, for conspiracy to transport stolen property through interstate commerce. Ephrim was arrested in Phoenix, Arizona. She received 12 months and 1 day imprisonment, to be followed by two years of supervised release, and was ordered to pay a $100.00 special assessment and $21,012.00 in restitution. This case was investigated by the Federal Bureau of Investigation.
Timothy Mulford, 31, and Maria Tillman, 27, both from Lander, Wyoming, were sentenced on September 6, 2016, by Federal District Court Judge Scott W. Skavdahl for theft of personal property and aiding and abetting. Mulford and Tillman were arrested in Missoula, Montana. Both received three years of supervised release and were ordered to pay a $100.00 special assessment each and to pay, joint and several, restitution to Hines General Store in the amount of $9,050.00. The case was investigated by the Bureau of Indian Affairs.
Luke Jackson Tilghman, 33, of Riverton, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on September 6, 2016, for possession with intent to distribute marijuana. Tilghman was arrested in Riverton, Wyoming. He received 60 months imprisonment, with the first six months to be served concurrently with his undischarged sentence in a state criminal action. The remaining 54 months shall be served consecutively to his state sentence. In addition, Tilghman was ordered to pay a $100.00 special assessment, $2,000.00 in restitution, and will be placed on four years of supervised release upon completing his sentence. This case was investigated by the Wyoming Division of Criminal Investigation.
Stacey Irene Rodgers, 38, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on September 6, 2016, for wrongful conversion of social security income. During the months of June 2014 through March 2015, the Social Security Administration (SSA) sent regular monthly payments Ms. Rodgers despite the fact that her son was then living with his father. Ms. Rodgers failed to report this change of circumstances to the SSA and knowingly converted those monies to her own use. Rodgers received three years of supervised release and was ordered to pay a $100.00 special assessment and $13,083.00 in restitution. This case was investigated by the Social Security Administration.
Senior Member of Drug Trafficking Organization Indicted for Conspiring to Sell Heroin in New JerseyRead the Press Release
TRENTON, N.J. – A federal grand jury returned an indictment today against a senior member of a large-scale drug trafficking organization that distributed heroin in Ocean and Monmouth Counties and elsewhere in New Jersey, U.S. Attorney Paul J. Fishman announced.
Robert Britt, 44, a/k/a “True,” of Asbury Park, New Jersey, is charged in a one-count indictment with conspiracy to distribute one hundred grams or more of heroin.
According to documents filed in this case:
Between July 2010 and March 2014, Britt conspired with others to distribute heroin in Ocean and Monmouth counties. In furtherance of the conspiracy, Britt used various hotel rooms and apartments to store, process, and package heroin for distribution to others. Britt and others also used numerous cellular telephones and coded language to discuss drug transactions, including requests for specific types and quantities of narcotics.
In April 2013, prior to beginning a term of incarceration, Britt transferred the day-to-day operations and certain heroin customers to Rufus Young, 43, a/k/a “Equan,” a/k/a “E-Money,” a/k/a “Kintock,” of Asbury Park.
Even while in prison, Britt maintained a hands-on role in the heroin distribution business. Britt spoke with Young using a concealed contraband cell phone that Britt maintained in violation of prison rules and regulations. During those conversations, Britt instructed Young on how to operate their drug business, including methods for developing new heroin customers, avoiding detection by law enforcement, and identifying new suppliers.
Between March and May 2014, 21 other members of the drug trafficking organization, all of whom have since been convicted, were charged in two separate criminal complaints with conspiring to distribute heroin and other related offenses. The complaint referred to the drug trafficking organization as the “Britt-Young DTO” after its two leading members.
On May 25, 2016, a federal jury convicted Thomas Shannon, a major supplier of narcotics to the Britt-Young DTO, of various offenses relating to the conspiracy.
U.S. Attorney Fishman credited special agents of the FBI Red Bank Resident Office, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Nicholas Grippo of the U.S. Attorney’s Office Criminal Division in Newark and Assistant U.S. Attorney J. Brendan Day of the Criminal Division in Trenton.
Defense Counsel: Alyssa A. Cimino, Esq., Fairfield, New Jersey
Selby Woman Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Selby, South Dakota, woman convicted of Assaulting, Resisting, Opposing, and Impeding a Federal Officer was sentenced on August 29, 2016, by U.S. District Judge Roberto A. Lange.
Amanda Iron Wing, age 28, was sentenced to 21 months in custody, followed by 2 years of supervised release, $1,669.46 in restitution, and a special assessment of $100 to the Federal Crime Victims Fund.
Iron Wing was indicted by a federal grand jury on August 11, 2015. She pled guilty on June 8, 2016.
The conviction stems from a June 6, 2015, incident when a vehicle Iron Wing was driving was reported stolen. Iron Wing led law enforcement on a high-speed chase that lasted approximately 30 minutes. During the pursuit, Iron Wing was throwing alcoholic beverage containers out of the vehicle. A law enforcement officer pulled up alongside the pickup and told Iron Wing she needed to stop, but she replied that she didn’t want to. Twice during the pursuit, law enforcement officers had to take evasive action to avoid a collision with Iron Wing’s vehicle. Finally, Iron Wing backed into an approach and stopped. When a patrol car was less than 10 feet from the pickup, Iron Wing accelerated rapidly, rammed the left front corner of the patrol car, and continued west towards Highway 63. An officer set up road spike strips on Route 2 just before Highway 63, and Iron Wing drove over them and stopped. When the officers approached Iron Wing’s vehicle, she locked the doors and refused to open them. An officer broke a window to gain access and placed Iron Wing in wrist restraints. Iron Wing was cursing and swearing at the officers, and she was intoxicated, blowing a .248 on the PBT. One of the officers received a cut on his right forearm during this process.
This case was investigated by the Federal Bureau of Investigation, the Dewey County Sheriff’s Office, and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Iron Wing was immediately turned over to the custody of the U.S. Marshals Service.
School Owner and Ceo Indicted in Connection with Federal Financial Aid SchemeRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned an indictment against ALDEN HALL, age 57, of Baton Rouge, Louisiana. The Indictment charges HALL with four counts of theft of government funds, in violation of Title 18, United States Code, Section 641, one count of fraudulently obtaining financial assistance funds, in violation of Title 18, United States Code, Section 1097(a), one count of engaging in monetary transactions in property derived from specified unlawful activity, in violation of Title 18, United States Code, Section 1957, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). The Indictment also includes a forfeiture allegation related to proceeds of the offenses.
The Indictment alleges that HALL, the owner and Chief Executive Officer of Alden’s School of Cosmetology and Alden’s School of Barbering in Baker, Louisiana, engaged in a scheme to steal Title IV funds, specifically, Pell Grant funds, from the Department of Education (“DOED”). As part of the alleged scheme, the Indictment alleges that HALL caused misrepresentations to be submitted to the DOED, including that certain students were enrolled in Pell Grant-approved programs of instruction when HALL knew that they were actually in programs of instruction which did not qualify for Pell Grants. The Indictment further alleges that HALL concealed from enrolling students that certain programs offered by her schools did not qualify for Pell Grants, and that HALL caused false and forged documents to be submitted as part of certain students’ financial aid packages for the purpose of qualifying students for Pell Grants. During a Program Review by the DOED, the Indictment further alleges that HALL concealed her school’s barbering program, which did not qualify for Pell Grants, by moving barbering students from a barbering classroom into a cosmetology classroom, giving barbering students badges that identified them as cosmetology students, and instructing her barbering instructors to not appear at the school during the DOED Program Review.
The Indictment also alleges that HALL caused misrepresentations to the DOED about the number of hours that certain students had attended class and further that certain individuals were students at the school when, in fact, such individuals had never attended class. The financial aid scheme, as alleged in the Indictment, resulted in HALL and her businesses fraudulently receiving over $100,000 in federal funds.
The Indictment further alleges that in the course of the scheme, HALL transferred criminally derived property of a value greater than $10,000 by causing a transfer of $50,000 from a bank account to a check issued to herself on or about December 21, 2011.
Finally, the Indictment alleges that during and in relation to the scheme, HALL used the social security number of another person to steal and embezzle Pell Grant funds in or about June of 2012.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the U.S. Department of Education – Office of the Inspector General, the Federal Bureau of Investigation, and the Internal Revenue Service. It is being prosecuted by Assistant United States Attorney Ryan Crosswell.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
San Jose Resident Sentenced to 33 Months in Prison for Conspiracy and Wire FraudRead the Press Release
SAN JOSE- Skylar Ariel Phoenix was sentenced to 33 months’ imprisonment and ordered to pay over $1.69 million in restitution for wire fraud and conspiracy to commit wire fraud, announced United States Attorney Brian J. Stretch and FBI Special Agent in Charge John F. Bennett. The sentence, handed down yesterday by the Honorable Lucy H. Koh, U.S. District Judge, follows a guilty plea entered March 15, 2016.
According to the guilty plea, Phoenix, 52, of San Jose, admitted she was an employee in the marketing department of an insurance company from approximately June 2003 until September 2011. While she was employed as a manager of the company, Phoenix arranged to have the company billed for work that was not authorized. Specifically, Phoenix conspired to hire her spouse as an independent contractor under her sole supervision in clear violation of internal policies and procedures. Further, she took steps to conceal the familial relationship by using an alias for her spouse and by using another family member’s home as her spouse’s address. Phoenix’s former employer identified 13 checks between September 21, 2004, and April 28, 2006, totaling $97,652,00 for work that was never provided. In addition, between June 2007 and March 2011, Phoenix created four requisition forms to provide further supposed employment for her spouse. The requisition forms generated additional billings to her then-employer of $382,562.50 and no work was completed in exchange for the money.
In addition, Phoenix admitted as part of her plea agreement that she engaged in a second, separate scheme to defraud the insurance company by placing marketing business with a friend’s company as an outside vendor in exchange for a total of $357,452 in kickbacks over several years. Phoenix acknowledged she knew the receipt of the kickbacks was a direct violation of her employer’s ethics policy.
A federal grand jury indicted Phoenix on June 18, 2014, for two counts of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; multiple counts of wire fraud, in violation of 18 U.S.C. §§ 1343 and 2; and two counts of making false statements to a government agent, in violation of 18 U.S.C. § 1001. Pursuant to her plea agreement, Phoenix pleaded guilty to one count of conspiracy and one count of wire fraud covering each of the two separate schemes.
In addition to the prison term and restitution, Judge Koh sentenced Phoenix to a three-year term of supervised release. Judge Koh ordered Phoenix to surrender on or before November 2, 2016 to begin serving her sentence.
Assistant U.S. Attorneys Amie Rooney and Maia Perez prosecuted the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the FBI.
Romanian National Sentenced for ATM Skimming FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MIHAI ALEXANDRU DINU, age 41, of Romania, was sentenced today after previously pleading guilty to one count of bank fraud related to the use of ATM “skimming” devices.
U.S. District Judge Nannette Jolivette Brown sentenced DINU to 27 months imprisonment to be followed by two years of supervised release. Additionally, DINU was ordered to pay $118,608.38 in restitution. As an illegal alien, DINU is subject to immediate deportation after incarceration.
According to court records, in January 2015, the U.S. Secret Service and the Louisiana Financial Crimes Task Force began investigating the unauthorized collection of debit card numbers through the installation of “skimming devices” on various ATM machines and the subsequent illegal use of fake debit cards in the Eastern District of Louisiana. In March 2016, DINU and another man were captured on surveillance video using fake debit cards to withdraw funds from three local bank accounts. Subsequently, DINU admitted to investigators that he had illegally entered the United States and joined in with a group of individuals who used fake passports and fake driver’s licenses to travel within the United States for the purpose of making the illegal ATM withdrawals. DINU also participated in a similar ATM skimming conspiracy in Virginia prior to arriving in Louisiana.
U.S. Attorney Polite praised the work of the Agents from the United States Secret Service and the Louisiana Financial Crimes Task Force, along with the St. Tammany Parish Sheriff’s Office in investigating this matter. Assistant United States Attorneys Edward J. Rivera and Carter Guice were in charge of the prosecution.
Repeat Sex Offender Sentenced to 14 Years in Prison for Attempting to Entice Teen via Social MediaRead the Press Release
A repeat sex offender who has multiple convictions for failing to register with law enforcement was sentenced today in U.S. District Court in Seattle to 14 years in prison and lifetime supervised release for a new set of sex crimes involving children, announced U.S. Attorney Annette L. Hayes. PATRICK ALLEN SMITH, 46, pleaded guilty in May 2016 to attempted enticement of a minor and possession of child pornography. At sentencing U.S. District Judge Thomas S. Zilly indicated a lengthy sentence is necessary to protect the public saying “these charges are very troubling to the court.”
According to records filed in the case, SMITH was the subject of two separate law enforcement investigations in the spring of 2015. The Pierce County Sheriff’s Office was investigating a complaint that SMITH had contacted a 14-year-old boy on Facebook and later by text, sending sexually explicit materials and attempting to arrange a meeting with the boy. Fortunately, the teen’s family learned of the contact and reported it to police. During that same time period, the Seattle Police Department’s Internet Crimes Against Children Task Force (ICAC) opened an investigation of SMITH concerning his receipt and distribution of child pornography. SMITH was arrested in October 2015 for failing to register as a sex offender, and ultimately more than 600 images of young children being raped and molested were found on his electronic devices.
SMITH is required to register as a sex offender following his conviction for child molestation in 1989 when he assaulted a child in a locker room at a YMCA. He was convicted in 1994 for breaking into a home in an attempt to molest a young child residing there. In 1995, 1997, 2005 and 2012, he was convicted of failing to register as a sex offender.
The case was investigated by the Pierce County Sheriff’s Office, the Seattle Police Department’s Internet Crimes against Children Task Force (ICAC) and the U.S. Secret Service. The case is being prosecuted by Special Assistant United States Attorney Cecelia Gregson. Ms. Gregson is a Senior King County Deputy prosecutor specially designated to prosecute child exploitation cases in federal court.
Reading Man Charged with Possession of Child PornographyRead the Press Release
James Walker, 28 of Reading, PA was charged today by Indictment with possession of child pornography, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of twenty years imprisonment, a mandatory minimum of 10 years, a $250,000 fine, a mandatory minimum 5 years supervised release, a $100 special assessment, and a $5,000 special assessment. The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Special Assistant United States Attorney Rosalynda M. Michetti.
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.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty
Rapid City Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Allen Good Shield, age 27, was indicted on August 23, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 6, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years 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.
The Indictment alleges that between August 2, 2016, and August 11, 2016, Good Shield, a person required to register under the Sex Offender Registration and Notification Act, failed to register and update his registration.
The charge is merely an accusation and Good Shield is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk W. Albertson is prosecuting the case.
Good Shield was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Porcupine Man Convicted of Sexual ContactRead the Press Release
United States Attorney Randolph J. Seiler announced that Frank Gallardo, 39, of Porcupine, South Dakota, was found guilty of two counts of Abusive Sexual Contact at the conclusion of a three-day federal jury trial in Rapid City. The verdict was returned on August 31, 2016.
The maximum penalty is life imprisonment and/or a $250,000 fine, lifetime supervised release, a $100 special assessment to the Federal Crime Victims Fund, and restitution.
The conviction stems from Gallardo engaging in sexual contact with a female under the age of 12, near Porcupine.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
A presentence investigation was ordered and sentencing is scheduled for January 20, 2017. The defendant was remanded to the custody of the U.S. Marshals Service.
Pittsburgh Tax Attorney and Owner of Iceoplex Convicted of Employment Tax FraudRead the Press Release
Defendant convicted of failing to pay over more than $790,000 in payroll taxes
A Pittsburgh, Pennsylvania, man was convicted today by a federal jury in the U.S. District Court for the Western District of Pennsylvania of 16 counts of failing to collect, account for and pay over employment taxes, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
According to the evidence presented at trial, between 2004 and 2015, Steven Lynch, a tax attorney, co-owned and operated the Iceoplex at Southpointe, a recreational sports facility located in Washington County, Pennsylvania. The Iceoplex included a fitness center, ice rink, soccer court, restaurant and bar. Lynch controlled the finances for these businesses and was responsible for collecting income and employment taxes withheld from employee wages, accounting for these taxes and filing Forms 941, payroll tax returns, and paying these taxes over to the Internal Revenue Service (IRS). The jury found that between 2012 through 2015, Lynch failed to timely pay over to the IRS more than $790,000 in taxes withheld from the wages of the employees for these businesses.
“Employers are entrusted with collecting the taxes withheld from their employees’ wages, and they have an absolute legal obligation to pay that money over to the IRS,” said Principal Deputy Assistant Attorney General Ciraolo. “The conviction of Steven Lynch serves as a strong reminder to all employers that failure to comply with employment tax obligations has significant consequences, including prosecution and incarceration. The department, together with its partners within the IRS, will continue to vigorously pursue those who violate our nation’s tax laws and threaten the integrity of our tax system.”
“The jury’s verdict is a clear signal that the criminal tax laws of our country are being enforced and upheld for the benefit of all citizens,” said Chief Richard Weber of IRS-Criminal Investigation (CI). “Those who attempt to skirt the law will be held accountable.”
Sentencing is scheduled for Jan. 11, 2017. Lynch faces a statutory maximum sentence of up to five years in prison for each count of willfully failing to collect, account for and pay over employment tax, as well as a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo commended the special agents of IRS-CI, who conducted the investigation, and Trial Attorneys Jeffrey Bender and Brittney Campbell of the Tax Division, who prosecuted the case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office in the Western District of Pennsylvania for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Pittsburgh Tax Attorney and Owner of Iceoplex Convicted of Employment Tax FraudRead the Press Release
WASHINGTON – A Pittsburgh, Pennsylvania, man was convicted today by a federal jury in the U.S. District Court for the Western District of Pennsylvania of 16 counts of failing to collect, account for and pay over employment taxes, announced Principal Deputy Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
According to the evidence presented at trial, between 2004 and 2015, Steven Lynch, a tax attorney, co-owned and operated the Iceoplex at Southpointe, a recreational sports facility located in Washington County, Pennsylvania. The Iceoplex included a fitness center, ice rink, soccer court, restaurant and bar. Lynch controlled the finances for these businesses and was responsible for collecting income and employment taxes withheld from employee wages, accounting for these taxes and filing Forms 941, payroll tax returns, and paying these taxes over to the Internal Revenue Service (IRS). The jury found that between 2012 through 2015, Lynch failed to timely pay over to the IRS more than $790,000 in taxes withheld from the wages of the employees for these businesses.
“Employers are entrusted with collecting the taxes withheld from their employees’ wages, and they have an absolute legal obligation to pay that money over to the IRS,” said Principal Deputy Assistant Attorney General Ciraolo. “The conviction of Steven Lynch serves as a strong reminder to all employers that failure to comply with employment tax obligations has significant consequences, including prosecution and incarceration. The department, together with its partners within the IRS, will continue to vigorously pursue those who violate our nation’s tax laws and threaten the integrity of our tax system.”
“The jury’s verdict is a clear signal that the criminal tax laws of our country are being enforced and upheld for the benefit of all citizens,” said Chief Richard Weber of IRS-Criminal Investigation (CI). “Those who attempt to skirt the law will be held accountable.”
Sentencing is scheduled for Jan. 11, 2017. Lynch faces a statutory maximum sentence of up to five years in prison for each count of willfully failing to collect, account for and pay over employment tax, as well as a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo commended the special agents of IRS-CI, who conducted the investigation, and Trial Attorneys Jeffrey Bender and Brittney Campbell of the Tax Division, who prosecuted the case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office in the Western District of Pennsylvania for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Pennsylvania Man Sentenced to Two Years in Prison for Conspiring with Members of Organized Crime Family and Others in Fraud SchemeRead the Press Release
CAMDEN, N.J. – A West Reading, Pennsylvania, man was sentenced today to 24 months in prison for his role in a conspiracy to defraud FirstPlus Financial Group Inc. (FPFG), a Texas-based financial services company allegedly targeted for extortionate takeover and looting by a group led by Lucchese organized crime family member Nicodemo S. Scarfo, U.S. Attorney Paul J. Fishman announced.
Cory Leshner, 33, previously pleaded guilty before U.S. District Judge Robert B. Kugler to a superseding information charging him with conspiracy to commit wire fraud. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Leshner and 12 others – including Scarfo, a member of the Lucchese La Cosa Nostra (LCN) crime family, and Salvatore Pelullo, an associate of the Lucchese and Philadelphia LCN families – were variously charged in a November 2011 indictment with a racketeering conspiracy, including acts of securities fraud, wire fraud, mail fraud, bank fraud, extortion, interstate travel in aid of racketeering, money laundering and obstruction of justice. The indictment charged that FPFG was targeted for extortionate takeover and looting by a group of the conspirators. A substantial part of the enterprise’s activities occurred in New Jersey, including communications and the transfer of money into and out of the state. Cory Leshner admitted that he joined the conspiracy in April 2007.
Leshner admitted that he assisted Scarfo and Pelullo in managing family trusts and limited liability companies on behalf of Scarfo and Pelullo as part of the scheme to defraud FPFG. Leshner said that Pelullo directed Leshner in the use of various bank accounts through which Pelullo received hundreds of thousands of dollars between July 2007 and April 2008 as part of the scheme. The money included the proceeds of the fraud that Pelullo allegedly received as part of a fraudulent “consulting” agreement between his shell company, Seven Hills Management, and codefendant William Maxwell, a Texas attorney who served as “special counsel” to FPFG as part of the scheme. The money also involved proceeds received from the fraudulent sale of Scarfo and Pelullo’s worthless companies to FPFG in 2007. The receipt of the fraudulent proceeds often occurred in the form of wire transfers from accounts in Pennsylvania to accounts in New Jersey.
Leshner also said that he was a law school student during the scheme. Leshner graduated from law school in 2010 and became an attorney in Pennsylvania in 2011. As part of his plea agreement, Leshner agreed to notify the Pennsylvania Supreme Court of his guilty plea and to accept any disciplinary action brought by disciplinary officials as a result of the guilty plea and sentence. Leshner also agreed to not seek the reinstatement of his license to practice law while serving any sentence of imprisonment imposed in the case.
Scarfo, Pelullo, and the Maxwells were convicted at trial on July 3, 2014, and sentenced to prison. Scarfo and Pelullo were sentenced to 30 years in prison. William Maxwell was sentenced to 20 years in prison and John Maxwell to 10 years in prison.
In addition to the prison term, Judge Kugler sentenced Leshner to three years of supervised release and ordered to pay restitution of $14.2 million.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Michael C. Mikulka, New York Region; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of George P. Belsky in Newark. He also thanked the FBI under the direction of Special Agent in Charge William F. Sweeney Jr. in Philadelphia for its vital assistance and the U.S. Securities and Exchange Commission for its role.
The government is represented by Assistant U.S. Attorney Howard Wiener, of the New Jersey U.S. Attorney’s Office Organized Crime/Gangs Unit and Criminal Division in Camden, and Trial Attorney Adam Small of the Organized Crime and Gang Section of the Justice Department’s Criminal Division.
Defense counsel: Rocco C. Cipparone Jr. Esq., Haddon Heights, New Jersey
Overdose Investigation Leads to Heroin Distribution Charges against Bridgeport ManRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that JEVAUGHN WATSON, 23, of Bridgeport, was arrested yesterday on a criminal complaint charging him with possession with intent to distribute, and distribution of, heroin. The charge stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According the complaint, on August 18, 2016, Trumbull Police and emergency medical personnel responded to a residence in Trumbull and found an unresponsive 25-year-old female on the floor of a bedroom. The victim was pronounced deceased shortly thereafter. Investigators searched the victim’s pocketbook and found several empty wax folds and some wax folds that contained suspected heroin. Analysis of text messages contained on the victim’s cellphone revealed that the victim had ordered heroin from WATSON several times over the course of approximately two months prior to the victim’s death.
WATSON appeared yesterday before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and was ordered detained.
The charge of possession with intent to distribute, and distribution of, heroin, carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration’s Bridgeport Resident Office, the DEA’s New Haven Tactical Diversion Squad and the Trumbull and Monroe Police Departments, with the assistance of the Bridgeport Police Department.
This case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Organizer of Major Trafficking Network Sentenced to over 26 Years in Operation Third WorldRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced the sentencing of Charles C. London, age 41, of Baton Rouge, Louisiana. Today, District Judge Shelly D. Dick sentenced Charles C. London to serve 322 months in prison. London was a leading member of a drug trafficking network operating in Baton Rouge and the surrounding areas. The defendant was prosecuted as part of Operation Third World, which resulted in a federal grand jury indictment against 39 individuals. To date, 33 defendants have either pled guilty or are in the process of pleading guilty and the remaining 4 defendants are set for trial in January 2017.
On January 6, 2016, London pled guilty to conspiracy to distribute and to possess with the intent to distribute five kilograms or more of cocaine, in violation of 21 U.S.C. § 846 and 18 U.S.C. § 2; distribution of MDMC and BZP, in violation of 21 U.S.C. § 841(a)(1); distribution of 28 grams or more of crack cocaine, in violation of 21 U.S.C. § 841(a)(1); conspiracy to distribute and to possess with the intent to distribute MDMA, in violation of 21 U.S.C. § 846 and 18 U.S.C. § 2; possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c); and unlawful use of a communications facility, in violation of 21 U.S.C. § 843(b).
According to the factual basis filed in LONDON’s plea agreement, beginning in early 2013, and continuing through September of 2013, LONDON conspired to distribute at least 21 kilograms of cocaine, 630 grams of crack cocaine and over 9,000 MDMA tablets. On September 5, 2013, the defendant possessed at his residence in Baton Rouge, LA, in excess of 8,500 BZP pills, over $123,000, a digital scale, a money counter and a loaded Glock .40 caliber pistol.
U.S. Attorney Green stated: “Today’s sentence sends a message to drug traffickers that the United States Attorney’s Office is committed to prosecuting drug traffickers to the full extent of the law with deserved consequences for polluting our streets and ruining the lives of our citizens with dangerous drugs.
This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration (DEA), the Internal Revenue Service-Criminal Investigations (IRS-CI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Baton Rouge City Police Department, the West Baton Rouge Parish Sheriff’s Office, the East Baton Rouge Parish Sherriff’s Office, the Ascension Parish Sheriff’s Office, the Louisiana State Police, the Iberville Parish Sherriff’s Office, the Livingston Parish Sherriff’s Office, the Gonzales Police Department, and the Baker Police Department. This matter is being prosecuted by Assistant United States Attorneys Jennifer Kleinpeter and Adam Ptashkin.
Obama Administration Releases Resources for Schools, Colleges to Ensure Appropriate Use of School Resource Officers and Campus PoliceRead the Press Release
The U.S. Departments of Justice and Education released today new tools to improve school climates, ensure safety, and support student achievement in our nation's schools.
To the extent a local decision is made to use school resource officers (SROs) in community schools, these resources will help state and local education and law enforcement agencies responsibly incorporate SROs in the learning environment. Additionally, the departments have highlighted tools available for law enforcement agencies that also apply to campus law enforcement agencies.
“With the release of these vital resources, the Obama Administration is furthering its commitment to ensuring that schools and SROs follow best practices, ensuring a positive and supportive classroom environment,” said Attorney General Loretta E. Lynch. “By fostering relationships of trust and respect between students and school resource officers, we can continue to build safer schools where our young people can learn and thrive – a vital effort that the Department of Justice will continue to advance with our partners at the federal, state, and local levels in the months to come.”
“As educators, we are all bound by a sacred trust to protect the well-being, safety, and extraordinary potential of the children, youth and the young adults within the communities we serve,” said U.S. Secretary of Education John B. King Jr. “School resource officers can be valuable assets in creating a positive school environment and keeping kids safe. But we must ensure that school discipline is being handled by trained educators, not by law enforcement officers. At the college level, the President's Task Force on 21st Century Policing has important recommendations that can help campus and local law enforcement both keep students safe and safeguard students' civil rights.”
To assist states, schools and their law enforcement partners in assessing the proper role of SROs and campus law enforcement professionals, both the Justice Department's Office of Community Oriented Policing Services and the Education Department released letters to states and districts emphasizing the importance of well-designed SRO programs and calling on leaders of institutions of higher education to commit to implementing recommendations from the President's Task Force on 21st Century Policing in the campus policing context.
To assist in the K-12 context, the departments also jointly released the Safe, School-based Enforcement through Collaboration, Understanding, and Respect (SECURe) Rubrics. These new resources can help education and law enforcement agencies that use SROs to review and, if necessary, revise SRO-related policies in alignment with common-sense action steps that can lead to improved school safety and better outcomes for students while safeguarding their civil rights.
Letters:
Campus letter from DOJ
P-12 letter from DOJ
Campus letter from Education
P-12 letter from Education
Rubrics:
State and local policy
Local implementation
The release of these materials builds on the Obama Administration's work with states and districts to improve discipline practices and climate in the nation's schools. The departments have worked collaboratively to recognize states and districts leading the way on these issues as well as to provide states and districts with effective alternatives to exclusionary discipline practices and continue to call upon a broad array of stakeholders to rethink approaches to school discipline in order to keep kids in school and out of the justice system. Highlights from the Administration's supportive school discipline efforts include:
Joint Federal Policy and Legal Guidance: Education and Justice jointly released a School Climate and Discipline Guidance Package in 2014 to provide schools with a roadmap to reduce the usage of exclusionary discipline practices and clarify schools' civil rights obligation to not discriminate on the basis of race, color or national origin in the administration of school discipline.
#RethinkDiscipline Convening and Public Awareness Campaign: Education and Justice launched Rethink Discipline at the White House in July of 2015, convening school district teams, including some law enforcement practitioners and justice officials from across the country and sparking a national dialogue around punitive school discipline policies and practices that exclude students from classroom instruction and targeted supports.
Rethink School Discipline: Resource Guide for Superintendent Action: As a part of Rethink Discipline, the Department of Education developed a resource guide with a set of potential action items to help school leaders implement safe, supportive school climate and discipline by engaging stakeholders, assessing the results and history of existing school climate and discipline systems and practices; implementing reform; and monitoring progress.
Support for State and Local Educational Leaders and Partners from Other Systems: In 2015, the Department of Justice launched the National Resource Center for School Justice Partnerships to advance school discipline reform efforts and serve as a dynamic resource hub for schools, law enforcement agencies, and others to support school discipline reform efforts at the local level.
Fostering Safe and Supportive Learning Environments: In 2016, the Department of Education released the ED School Climate Surveys and the Quick Guide on Making School Climate Improvements to help foster and sustain safe and more nurturing environments that are conducive to learning for all students.
Addressing Implicit Bias and Discipline Disparities in Early Childhood Settings: In 2016, the Departments of Education and Health and Human Services recently announced a new investment of $1 million in the Pyramid Equity Projectto establish national models for addressing issues of implicit bias, and uneven implementation of discipline, including expulsions and suspensions, in early learning programs.
Providing Guidance to Schools on Ensuring Equity and Providing Behavioral Supports to Students with Disabilities: In 2016, the Department of Education announced the release of a significant guidance document in the form of a Dear Colleague Letter, which emphasized the requirement that schools provide positive behavioral supports to students with disabilities who need them. It also clarified that the repeated use of disciplinary actions may suggest that many children with disabilities may not be receiving appropriate behavioral interventions and supports. Also included was a Summary for Stakeholders.
The new resources and letters released today build on the work of the My Brother's Keeper Initiative and the Council on Women and Girls, and respond to recommendations put forth by the President's Task Force on 21st Century Policing to support schools in developing more positive school climates and strengthening the relationship between law enforcement and the communities they serve. These efforts help districts, schools, and communities build credible and sustainable systems, structures, and partnerships that provide safe, supportive learning environments that uplift students and nurture them when they do well and when they need support to do better.
Nurses Plead Guilty to Separate Charges of Misprision of a Felony and Health Care FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CAREN BATTAGLIA, age 50, of New Orleans, pled guilty today to one count of misprision of a felony. SUPRENIA WASHINGTON, age 60, of New Orleans, also pled guilty to one count of health care fraud in.
On March 12, 2015, BATTAGLIA and WASHINGTON were indicted along with 19 other defendants in a 26-count indictment charging approximately $30,052,295 in Medicare fraud.
WASHINGTON was a Registered Nurse and BATTAGLIA a Licensed Practical Nurse at Abide Home Care Services, a home health company operated by owner Lisa Crinel. BATTAGLIA’s and WASHINGTON’s guilty pleas involved their alleged care for Medicare beneficiaries, falsification of documents and failure to notify officials of the ongoing health care fraud at Abide.
WASHINGTON faces a maximum term of imprisonment of ten years, a $250,000 fine, and three years of supervised release following imprisonment. BATTAGLIA faces a maximum term of imprisonment of three years, a $250,000 fine, and one year of supervised release following imprisonment. U.S. District Judge Susie Morgan set sentencing for both defendants on February 8, 2017.
U.S. Attorney Polite praised the work of the Special Agents of the Federal Bureau of Investigation, in investigating this matter. Assistant U.S. Attorneys Patrice Harris Sullivan, Hayden Brockett, Maria Carboni, and Sharan Lieberman are in charge of the prosecution.
Newton Woman Pleads Guilty to Concealing Gun Crime Prior to Hesston ShootingsRead the Press Release
WICHITA, KAN. – A Newton woman pleaded guilty Thursday to concealing from authorities that a convicted felon unlawfully possessed firearms that he later used in a shooting incident at Excel Industries, Acting U.S. Attorney Tom Beall said.
Sarah T. Hopkins, 28, Newton, Kan., pleaded guilty to failing to report to authorities that convicted felon Cedric Ford unlawfully possessed a firearm.
In her plea, Hopkins admitted that on Feb. 5, 2016, she redeemed an AK-47 rifle from a pawn shop in Newton and gave it to Ford. On Feb 25, 2016, investigators recovered the rifle and a handgun at Excel Industries in Newton where Ford shot three people to death before being killed in a shootout with police.
Sentencing is set for Nov. 28. Hopkins faces up to three years in federal prison and a fine up to $250,000. Beall commended the following agencies: The Hesston Police Department, the Harvey County Sheriff’s Department, the Newton Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas Bureau of Investigation and the FBI, as well as Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney David Lind for their work on the case.
New York Man Pleads Guilty to Role in $1 Million Stolen Identity Refund SchemeRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted his role in a scheme to obtain stolen identity information and use it to file phony tax returns with the IRS, U.S. Attorney Paul J. Fishman announced.
Jhan Luis Mejia Marcelino, 27, pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit theft of government funds, one count of theft of government funds, and one count of aggravated identity theft.
According to documents filed in this case and statements made in court:
Mejia admitted that from January 2013 through May 2014, he and others obtained stolen personal identifying information, including names and Social Security numbers, of victims located in New Jersey, Puerto Rico, and elsewhere. Afterwards, Mejia and others used the information to file fraudulent federal tax returns. Mejia admitted that, once they received the refunds, they converted the checks to cash or other proceeds for their own benefit, causing losses of over $1 million to the U.S. Treasury.
The conspiracy offense is punishable by a maximum potential penalty of five years in prison. The theft of government funds count is punishable by a maximum potential penalty of 10 years in prison. Both counts are punishable by a $250,000 fine, or twice the gain or loss resulting from the offense. The aggravated identity fraud charge is punishable by a mandatory two-year sentence to be served consecutively to any other term imposed.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Cynthia Shoffner; and the U.S. Secret Service, under the direction of Special Agent in Charge Mark Mckevitt, with the investigation.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the Criminal Division in Newark.
New York Man Arrested in Stamford Pleads Guilty to Federal Gun ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JUAN QUINONES, 43, of Port Chester, N.Y, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of possession of a firearm by a convicted felon.
According to court documents and statements made in court, on September 24, 2015, Stamford Police executed a court-authorized search of a local hotel room where QUINONES was staying and found a loaded Glock .45 caliber pistol and distribution quantities of heroin and crack cocaine. QUINONES was arrested at that time.
QUINONES was previously convicted of felony drug offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Judge Shea scheduled sentencing for December 6, 2016, at which time QUINONES faces a maximum term of imprisonment of 10 years.
The matter has been investigated by the Stamford Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
New York City Man Sentenced to 25 Years for Running Massena Drug OperationRead the Press Release
PLATTSBURGH, NEW YORK – Patrick Lloyd, a.k.a. “Problem,” age 28, of New York City, was sentenced today to serve 25 years in prison for distributing crack cocaine, cocaine, and heroin in the Massena area, and for possessing guns while distributing drugs.
The announcement was made by U.S. Attorney Richard S. Hartunian and James C. Spero, Special Agent in Charge of the Buffalo Field Office of Immigration and Customs Enforcement, Homeland Security Investigations (HSI).
Lloyd is the last of 17 defendants to be prosecuted and sentenced as a result of a long-term investigation led by HSI, the Massena Police Department, the St. Lawrence County Sheriff’s Department and the New York State Police. The investigation targeted 2 organizations – the Lloyd organization and the Matthew Malu organization – from New York City that brought drugs and violence to the Massena area in 2012 and 2013.
Senior U.S. District Judge Gary L. Sharpe, who called Lloyd’s actions “drug terrorism,” also sentenced Lloyd to 10 years of post-imprisonment supervised release.
U.S. Attorney Richard S. Hartunian said: “Lloyd’s nickname is ‘Problem,’ but thanks to this investigation he will not be a problem for the North Country anymore. The success of this case is the result of great cooperation among federal, state, local, Canadian and tribal agencies, which came together to put a stop to 2 criminal organizations with roots in New York City that were intent on bringing drugs and violence to the Massena area. Lloyd’s sentencing marks the end of this particular investigation but not to our commitment to keeping this and other North Country communities safe.”
James C. Spero, Special Agent in Charge of the HSI Buffalo Field Office, said: “The lengthy prison term handed down today emphasizes that drug traffickers will not find a safe haven distributing heroin in the North Country. Criminals who attempt to operate in this region, no matter where they are based, will continue to be aggressively targeted by the coordinated effort of federal, state and local law enforcement.”
From 2012 through September 2013, Lloyd led a drug trafficking organization operating in Massena and New York City. Lloyd and a co-conspirator, Michael Spencer, possessed firearms while dealing drugs. Under Lloyd’s direction, his couriers transported bulk quantities of cocaine and heroin from New York City to Massena. Upon reaching Massena, the drugs were stored in stash houses rented by Lloyd but not in his own name. At the same time, another drug trafficking organization run by Matthew Malu operated in Massena. The Lloyd and Malu organizations became violent rivals.
On June 20, 2012, Lloyd and Spencer robbed and assaulted members of the Malu organization. They stole cocaine from the Malu organization and distributed it. On October 22, 2012, in retaliation for the June 20 assault, members of the Malu organization assaulted Lloyd, Spencer, and others at an apartment in Massena. Some members of the Lloyd organization were stabbed, beaten, shot and tied up.
On December 22, 2012, Lloyd and others arranged for Bernie Russo to transport 177 grams of cocaine, 118 grams of heroin, and two firearms for the organization. United States Border Patrol agents stopped Russo and seized the cocaine, heroin, and firearms.
On July 7, 2013, New York State Troopers found Lloyd co-conspirators Justin Brailsford and Jon Garcia in possession of approximately 1,160 packages of heroin and 175 grams of cocaine.
On September 5, 2013, law enforcement officers executed search warrants at various residences in the Massena area. At Spencer’s residence, agents seized a loaded 9 millimeter Taurus handgun; an Orion flare gun modified to shoot .22 caliber live rounds; a loaded .25 caliber Titan handgun; 30 grams of powder cocaine; 2 grams of crack cocaine; and a digital scale. Law enforcement seized 410 grams of cocaine, 2 grams of crack, and 228 grams of heroin related to the Lloyd organization. On September 5, 2013, law enforcement arrested the following defendants for their participation in the Lloyd organization, all of whom have now been sentenced as follows:
Defendant
Residence
Imprisonment
Supervised Release
Lloyd, Patrick
New York City
300 months
120 months
Spencer, Michael
New York City
180 months
60 months
Garcia, Jon
New York City
49 months
36 months
Brailsford, Justin
Massena
30 months
36 months
Huto, Zach
Massena
Time served (12 months)
36 months
Gardner, Ginelle
Massena
Time served (6 days)
36 months
Burke, Codi
Massena
60 months
48 months
Moore, Travis
New York City
120 months
60 months
Monaghan, Jessica
Massena
51 months
60 months
Moore, Leslie
Massena
Time served (89 days)
60 months
Berry, Catherine
Massena
Time served
(21 months, 28 days)48 months
Jandrew, Kimberly
Massena
18 months
60 months
Russo, Bernie
Massena
30 months
36 months
Law enforcement seized 200 grams of heroin, 27 grams of crack cocaine, and 29 grams of powder cocaine related to the Malu organization. Members of the Malu organization received the following sentences:
Defendant
Residence
Imprisonment
Supervised Release
Malu, Matthew
New York City
63 months
48 months
Rosario, Tremel
New York City
65 months
48 months
Hendricks, Ian
Massena
24 months
24 months
Perrin, Star
Massena
Time served (5 days)
36 months
Assisting in this investigation were the District Attorneys of Clinton, Franklin and St. Lawrence Counties, the Saint Regis Mohawk Tribal Police Department, United States Customs and Border Protection, the Drug Enforcement Administration, the Royal Canadian Mounted Police, the New York Attorney General’s Office, the Oneida Indian Nation Police, and the United States Border Patrol.
This case was prosecuted by Assistant U.S. Attorneys Katherine Kopita, Cyrus P.W. Rieck, and Daniel C. Gardner, who now works in the District of Maryland.
Neiman Groce Imprisoned for Retirement Plan EmbezzlementRead the Press Release
The United States Attorney for the District of Vermont announced that Neiman Groce, 31, of Poultney, was sentenced today in United States District Court in Burlington to 18 months of imprisonment following his guilty plea to a charge of wire fraud. Chief U.S. District Judge Christina Reiss also ordered that Groce serve three years of supervised release following completion of his prison term and pay restitution of nearly $75,000. The court directed Groce to surrender to the Bureau of Prisons on October 25 to begin serving his sentence.
On December 2, 2015, a federal grand jury in Rutland returned a three-count indictment charging Groce with embezzlement, wire fraud and forgery. According to the indictment, between approximately 2008 and late 2012, Groce was employed by Rutland Plywood Corporation. In 2012, Groce was promoted to Human Resources Director and assumed responsibility for administering the company's section 401(k) employee retirement plan. According to the indictment, between June and November 2012, Groce tried to embezzle approximately $88,000 from the retirement accounts of five former Rutland Plywood employees. Groce accomplished the embezzlement by forging employees' signatures on benefit plan withdrawal forms and faxing the forms to the company which managed the retirement plan. The forged forms contained directions that the money withdrawn from the employees' accounts be electronically transferred to one of two bank accounts that Groce controlled. During that time, more than $75,000 in retirement plan funds was actually transferred into Groce's accounts.
The indictment charged Groce with stealing an additional $3,000 from Rutland Plywood by forging and altering a series of company checks to third parties to make them payable to himself, then cashing those checks.
Groce pled guilty to the wire fraud charge last May.
This case was investigated by the Federal Bureau of Investigation and the Vermont State Police.
Groce is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Nashville Man Convicted of Robbing and Shooting Drug DealerRead the Press Release
Montrez E. Duncan a/k/a Money, 33, of Nashville, Tenn., was convicted yesterday by a federal jury, after a 6-day trial, of conspiracy to commit Hobbs Act Robbery, Robbery and carrying, brandishing and discharging a firearm during a crime of violence, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
According to the proof at trial, Duncan and three other men obtained information which led them to believe that a known drug dealer would have a substantial amount of cocaine and cash, derived from prior drug sales, stashed in his home. On September 26, 2012, Duncan and the co-conspirators followed the individual to his home, where they surreptitiously entered the home, tied up the individual, and threatened to kill him while pointing a gun at the back of his head. The robbers then took a substantial quantity of cocaine and cash from the home. After the home invasion and robbery, Duncan and the others kidnapped the individual, forced him into a van, took his car and forced him to contact other people to obtain more cocaine and cash. Duncan and the others then waited and monitored the individual as he took delivery of more drugs and cash from those he was forced to call.
The trial proof showed that after Duncan and the others decided that the individual was of no further value to them, they drove to a field in a rural part of Davidson County. While Duncan attempted to stuff the bound individual into the trunk of his car, the others poured gasoline in the interior of the car in order to light the car and the individual on fire. The individual was able to break free and as he fled, was chased and shot by one of the assailants before he made it to a nearby house, where residents called police.
The evidence also showed that Duncan and the others planned to use the proceeds from this robbery to pay attorney fees for a potential serious state charge which Duncan feared was going to be filed against him and his girlfriend. Duncan provided $20,000 in cash from this robbery to his mother to use for attorney fees, and the co-conspirators then sold the cocaine taken in the robbery.
Duncan is scheduled to be sentenced on December 12, 2016, and faces up to life in prison.
Two of the defendants in this case, Victor Jones, 28, and Raymond Wilson, 26, both of Nashville, have pleaded guilty to charges as a result of this investigation and are awaiting sentencing. The fourth charged defendant, Javonte Fitzgerald a/k/a Pooh Man, 23, also of Nashville, is set for trial in December 2016. Fitzgerald is presumed innocent unless and until found guilty in a court of law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Metropolitan Nashville Police Department. The case is being prosecuted by Assistant United States Attorneys Philip H. Wehby and Sunny A.M. Koshy.
Mission Women Charged with Assault Resulting in Serious Bodily Injury and Child AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that three Mission, South Dakota, women have been indicted by a federal grand jury for Assault Resulting in Serious Bodily Injury and Child Abuse.
Verna Blue Thunder, age 41; Lorraina Lydia Stead, age 25; and Lydia Lorena Stead, age 21; were indicted on August 16, 2016. All three appeared before U.S. Magistrate Judge Mark A. Moreno and pled not guilty to the Indictment. Lydia Lorena Stead made her initial appearance on August 24, 2016, Verna Blue Thunder on August 25, 2016, and Lorraina Lydia Stead on September 1, 2016.
Verna Blue Thunder faces a mandatory minimum of 10 years, up to life in custody on the charge of assault resulting in serious bodily injury to a child. All three women face up to 15 years in custody on the child abuse charges. Each charge may result in up to a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between January 1, 2016, and June 25, 2016, Verna Blue Thunder unlawfully assaulted a child who had not attained the age of 18 years, and that assault resulted in serious bodily injury to the child.
The Indictment also alleges that between October 29, 2014, and June 25, 2016, all three women abused two minor children, who had not attained the age of seven years, and aided and abetted in the offense.
The charges are merely accusations and the Defendants are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson is prosecuting the case.
Lydia Lorena Stead was released on bond. Verna Blue Thunder and Lorraina Lydia were remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for November 1, 2016.
Milan Man Sentenced to One Year in Prison for Theft of Veterans BenefitsRead the Press Release
Rock Island, Ill. – Peter W. Cooper, 59, of Milan, Ill., was sentenced today for theft of funds from the Veterans Administration, announced U.S. Attorney Jim Lewis, Central District of Illinois. U.S. District Judge Sara L. Darrow ordered Cooper to serve one year in federal prison and to pay $178,789 in restitution to the Veterans Administration. Judge Darrow ordered that Cooper report to the designated federal Bureau of Prisons facility on Oct. 17, 2016, to begin serving his sentence.
On May 5, 2016, Cooper waived indictment and entered a plea of guilty to an information that charged him with one count of theft of veterans benefits. Cooper admitted that he continued to receive benefit payments that were paid to his adoptive mother after her death in 2003. At the time of her death, Cooper’s mother had been receiving payments from the VA under the Dependency and Indemnity Compensation (DIC) program, based on the previous active duty-connected death of her husband. DIC benefits are paid to surviving spouses until the spouse dies or remarries.
In 2014, by matching VA records with Social Security death records, the VA Office of Inspector General became aware that Cooper's mother had died in 2003 but the payments had continued and were then continuing. Payments were being deposited monthly in a bank account under the name of Cooper and his deceased mother. The VA OIG’s investigation revealed that Cooper, an employee of the Army Corps of Engineers at the Rock Island Arsenal, had been withdrawing the money monthly and spending it or transferring it to other accounts. Until the VA OIG discovered and stopped the payments, Cooper had received and spent $178,789 in DIC funds to which he was not entitled.
The case was prosecuted by Assistant U.S. Attorney Don Allegro and the charges were investigated by the VA Office of Inspector General.
Michigan Man Charged with Sexual Exploitation of Minor in Central IllinoisRead the Press Release
Springfield, Ill. – Jim Lewis, U.S. Attorney for the Central District of Illinois, announced today that a federal grand jury in Springfield has returned an indictment that charges Damian N. Delacruz, 23, of Cadillac, Mich., with three counts of sexual exploitation of a minor and one count of enticement of a minor.
The indictment, returned Sept. 7, alleges that on three occasions, Feb. 25, 2016; Feb. 28, 2016, and Mar. 14, 2016, Delacruz used and coerced a minor in central Illinois to engage in sexually explicit conduct for the purpose of producing visual images of said conduct. The indictment further alleges that from Feb. 19 to Mar. 16, 2016, Delacruz used the internet and a cellular phone to attempt to entice a minor to engage in sexual activity for which a person can be criminally charged under Illinois law.
If convicted, the statutory penalty for each count of sexual exploitation of a minor is a minimum 15 years in prison and up to 30 years in prison plus a fine of up to $250,000. The penalty for enticement of a minor is a minimum 10 years and up to life in prison, plus a fine up to $250,000. Delacruz may also be sentenced to a term of supervised release up to life following any prison sentence.
Delacruz was arrested on Aug. 23, 2016, in Cadillac, Mich., by special agents of U.S. Immigration and Customs Enforcement Homeland Security Investigation. Delacruz will appear in federal court in Springfield at a later date.
The case is being prosecuted by Assistant U.S. Attorney Victor Yanz. The charges are the result of an investigation by the Chatham Police Department and U.S. Immigration and Customs Enforcement Homeland Security Investigation.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The 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 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.