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Friday 8 July 2016
Miami, Florida Man Pleads Guilty to Credit Card Fraud and Aggravated Identity TheftRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Roberto Lueje-Rodriguez, 29, of Miami, Florida, pleaded guilty today in U.S. District Court to access device fraud and aggravated identity theft.
Court records show that between January 7 and January 13, 2016, Lueje-Rodriguez and another man used debit and credit card account numbers belonging to bank customers in Maine to make unauthorized purchases totaling more than $50,000. They used the cards in Penobscot, Knox, Hancock, Piscataquis, Franklin, Somerset, Kennebec, and Androscoggin counties.
Each of the debit card account numbers used by the defendant were unique and assigned to one person or, in one instance, to a Maine company. He used plastic cards made to look as though they were authentic debit or credit cards. Each of the cards was encoded with true account numbers on the magnetic strip. The name embossed on each of the cards used by the defendant was “David Cuan”, which was not the name of any of the true account holders.
The defendant faces up to 10 years in prison and a $250,000 fine for the access device fraud and a mandatory minimum period of imprisonment of 2 years for the aggravated identity theft crime. He will also be ordered to pay restitution. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Maine State Police, Immigration and Customs Enforcement-Homeland Security Investigations, the Bangor Police Department, the Brewer Police Department, the Dexter Police Department, the Dover-Foxcroft Police Department, the Ellsworth Police Department, the Hampden Police Department, the Lincoln Police Department, the Millinocket Police Department, the Newport Police Department, the Pittsfield Police Department, the Rockland Police Department, the Saco Police Department, and the Waterville Police Department.
Member of Sumter Cocaine Trafficking Conspiracy Receiver over 96 Years in Prison in Federal CourtRead the Press Release
Contact Person: JD Rowell (803) 929-3000
Acting United States Attorney Beth Drake advised today that 6 members of a large scale cocaine and crack cocaine trafficking conspiracy received significant sentences yesterday in Federal Court. On July 7, 2016, Chief United States District Judge Terry L. Wooten held hearings throughout the day to impose sentences for the conspirators who had previously entered guilty pleas admitting to conspiring to distribute cocaine and crack cocaine. The following defendants received the following sentences:
- Patar ONeal Montgomery (Age 38 of Dazell, South Carolina): 156 months with 5 years of supervised release to follow;
- Donald Antwon Dingle (Age 24 of Sumter, South Carolina): 115 months with 4 years of supervised release to follow;
- Andre Lewayne Brooks (Age 29 of Horatio, South Carolina) 78 months with 6 years of supervised release to follow;
- Corey Emanuel White (Age 29 of Sumter, South Carolina) 262 months with 8 years of supervised release to follow;
- Michael Antonio Floyd (Age 42 of Bishopville, South Carolina) 276 months with 8 years of supervised release to follow; and
- Jimmy Tony McDowell (Age 40 of Sumter, South Carolina) 276 months with 8 years of supervised release to follow.
Evidence presented at the change of plea and sentencing hearings established that the above defendants were held accountable for the distribution of over 65 kilograms of powder cocaine and over 650 grams of crack cocaine during the course of the conspiracy which lasted from around April of 2012 until July of 2015. Each of the above defendants who received sentences of 21 years or higher were classified as “career offenders,” meaning that each had previously been convicted of 2 or more felony drug convictions in state and/or federal Court.
Evidence at the hearings established that this investigation began over a year ago when FBI, DEA and City of Sumter Task Force Officers identified the above named defendants who were supplying large numbers of violent street level cocaine and crack cocaine dealers in Sumter. Agents and Task Force Officers previously conducted arrest operations on June 16, 2015, and October 20, 2015. As of the date of yesterday’s sentencings, this investigation has resulted in the seizure of over 9 kilograms of powder cocaine, the seizure of almost $900,000.00, the seizure of 8 firearms that were used in furtherance of drug trafficking, and convictions/guilty pleas of 8 other defendants who will be sentenced at a later time by Chief Judge Wooten. Agents have learned that the conspiracy as a whole was directly responsible for the distribution of well over 150 kilograms (wholesale value of $6,000,000.00) of cocaine in Sumter and Richland Counties during the time frame of the conspiracy.
This case is yet another example of the fine work being done by Federal, State and local law enforcement agencies working together through the Columbia Violent Gang Task Force (CVGTF) in South Carolina.
The CVGTF is consists of the following agencies:
- Federal Bureau of Investigation, SAC David A. Thomas
- Sumter Police Department, Chief Russell Roark
- South Carolina Law Enforcement Division, Chief Mark Keel
- Columbia Police Department, Chief Skip Holbrook
- Richland County Sheriff’s Department, Sheriff Leon Lott
- South Carolina Army National Guard Counterdrug Unit, LTC Walter Ginn
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Member of Cherry Hill Gang ‘UDH’ Sentenced 24 Years in Federal Prison for Racketeering Conspiracy, Including MurderRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Gregory Sykes-Bey, age 22, of Baltimore, today to 24 years in federal prison, followed by five years of supervised release, for conspiracy to participate in a racketeering enterprise in connection with his gang activities as a member of the UDH organization, which operates in the Cherry Hill section of Baltimore.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Kevin Davis of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn Mosby.
According to his plea agreement, Gregory Sykes-Bey participated in the activities of the UDH organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.” UDH members and associates have been in a long-running dispute with members of an organization known as “Coppin Court” that is involved in criminal activity in the part of Cherry Hill known as “Down the Hill,” and since at least January 2011, have been in a dispute with members of “Little Spelman,” another organization that is involved in criminal activity in the Down the Hill section of Cherry Hill. UDH members and associates used violence and intimidation to protect themselves, the organization, and their control of the drug trade in part of Cherry Hill.
Gregory Sykes-Bey knew that members of UDH sold crack cocaine, heroin and other narcotics. During his involvement in the conspiracy, Sykes-Bey knew that UDH was responsible for the distribution of at least one kilogram of heroin, five kilograms of cocaine, 280 grams for crack cocaine and marijuana. In addition to his participation in the gang’s narcotics trafficking activities, Gregory Sykes-Bey admitted shooting two people on June 1, 2008 and shooting a rival gang member on May 11, 2012. Witnesses also identified Gregory Sykes-Bey as shooting and killing a rival gang member on August 28, 2011.
A total of 35 Cherry Hill gang members have pleaded guilty and 23 of those defendants, including Sykes-Bey have been sentenced to up to 35 years in prison.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Maryland Man Sentenced to 39 Years in Prison for Stabbing Three People at Home in the Middle of the NightRead the Press Release
WASHINGTON – Ernest Johnson, 21, formerly of Baltimore, Md., was sentenced today to a 39-year prison term for stabbing his ex-girlfriend and two others in her apartment in Northeast Washington, U.S. Attorney Channing D. Phillips announced.
Johnson pled guilty in October 2015, in the Superior Court of the District of Columbia, to three counts of assault with intent to kill while armed. The plea, which was contingent upon the Court’s approval, called for a sentence in the range of 35 to 40 years in prison. The Honorable Milton C. Lee accepted the plea today and sentenced Johnson accordingly. Following completion of his prison term, Johnson will be placed on five years of supervised release.
According to the government’s evidence, Johnson was previously in a romantic relationship with one of the victims, a 24-year-old woman. On the date of the attack, Aug. 15, 2015, they were no longer in a romantic relationship. At that time, Johnson’s ex-girlfriend was in a romantic relationship with another man. The ex-girlfriend was living with her 75-year-old grandmother in an apartment in Northeast Washington.
On Aug. 15, 2015, at approximately 4:30 a.m., Johnson entered the ex-girlfriend’s apartment through the balcony door. First, he went into the grandmother’s bedroom and began to strangle her, causing her to lose consciousness. He also stabbed her numerous times in the back, head, and neck. Johnson then entered the second bedroom, where his ex-girlfriend and her new boyfriend were asleep. He locked the door behind him. Johnson then stabbed his ex-girlfriend approximately 28 times in back, arm, neck, chest, hand, and other parts of her body. He also stabbed the new boyfriend several times in the head, and the knife went through his skull.
Two witnesses were asleep in the living room of the apartment. One heard the screaming and broke into the locked bedroom, picked up a vacuum cleaner, and hit Johnson with it to stop the attacks against his ex-girlfriend and the boyfriend. The second witness also came into the room to assist. Johnson then left the apartment, fleeing the scene.
Two knives were recovered inside the apartment.
All three victims were transported to the hospital by ambulance. The grandmother remained at the hospital for approximately nine days. Doctors believed that she may have had a laceration to the inside of her throat, and so she was not permitted to eat food or liquid through her mouth for approximately one week. The man was at the hospital for two days and was released. Several days thereafter, however, he began to have seizures and was readmitted for approximately four days. Since this incident, he has had memory issues and headaches. Finally, Johnson’s ex-girlfriend was admitted to the hospital for almost two months. She has severe spinal cord damage from the stabbing that initially left her paralyzed. Through extensive physical therapy, she has regained some motor skills, but remains significantly impaired and frequently confined to a wheelchair.
Johnson was apprehended in Baltimore shortly after the attack. He has been in custody ever since. In a custodial interview after his arrest, he admitted to the stabbings.
In announcing the sentence, U.S. Attorney Phillips commended the work of the officers and detectives who investigated the case for the Metropolitan Police Department and U.S. Marshals Service. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Joyce Arthur, former Paralegal Specialist Erica Vample, and Victim/Witness Advocate Meshall Thomas. Finally, he expressed appreciation for the work of Assistant U.S. Attorney Elana Suttenberg, who investigated and prosecuted the case.
Kansas Drug Trafficker Sentenced to 24+ YearsRead the Press Release
KANSAS CITY, KAN. – A Kansas man has been sentenced to more than 24 years in federal prison for drug trafficking, Acting U.S. Attorney Tom Beall said.
Jose Rios-Morales, 42, Kansas City, Kan., was sentenced Wednesday to 292 months in federal prison. He was convicted in a jury trial in October 2015 on one count of conspiracy to distribute methamphetamine and one count of possession with intent to distribute methamphetamine.
During trial, prosecutors presented evidence that Rios-Morales was a member of a drug trafficking organization headed by his partner and co-defendant, Felipe Sifuentes-Cabrera. Rios-Morales assisted Sifuentes in many ways including introducing Sifuentes to the methamphetamine supplier, driving to California to pick up loads of methamphetamine, packing methamphetamine for shipping, managing the collection of drug proceeds, and wiring money to the organization’s methamphetamine supplier. Rios-Morales and Sifuentes’ drug trafficking organization was determined to be responsible for distributing over 4.5 kilograms of “ice” methamphetamine from Feb. 1, 2014, to Nov. 4, 2014.
Rios-Morales was arrested on Nov. 4, 2014, after he met with Sifuentes at an Olathe, Kan., residence to assist in unloading a car in which 13 pounds of 99-100 percent pure methamphetamine had been concealed. Rios-Morales and Sifuentes arranged for the car to be sent from California to Kansas via a car hauler. The vehicle was intercepted by the Canadian County, Okla., Sheriff’s department and delivered to Kansas
Sifuentes pleaded guilty to conspiracy and is awaiting sentencing.
Beall commended the Canadian County, Okla., Sheriff’s Department, the Drug Enforcement Administration, the Olathe, Kan., Police Department, the Federal Bureau of Investigation, Assistant U.S. Attorney Sheri Catania, and Special Assistant U.S. Attorney James Ward for their work on the case.
Houston Men Sentenced for Katy Bank RobberyRead the Press Release
HOUSTON - Three Houston men have been handed significant sentences following their convictions related to the armed bank robbery of a Katy area Chase Bank in 2014, announced U.S. Attorney Kenneth Magidson. Keith Stephens, 28, Keon Jackson, 28, and Duquam Mathis, 22, all of Houston, pleaded guilty Oct. 19, 2015, to bank robbery and discharge of a firearm in commission of a crime of violence.
Today, U.S. District Judge David Hittner considered their roles in the offense, the fact a gun was discharged, the way the victims were treated and amount of money taken. He then ordered Stephens to serve 210 months in prison for the bank robbery conviction and a consecutive 120 months for the firearms charge for a total of 330 months. Jackson and Mathis will serve respective terms of 97 and 70 months for bank robbery, each to be followed by a consecutive 10 years for total sentences of 217 and 190 months, respectively.
On Wednesday, July 16, 2014, Mathis and Jackson entered the JP Morgan Chase Bank located at 6810 South Fry Road in Katy with their faces covered and carrying firearms. Stephens was outside acting as a lookout. Inside, Mathis and Jackson jumped over the teller counter, threatened an employee at gun point and forced her to open the bank’s vault. They took the money, fired a shot and exited the bank. That shot ricocheted and almost hit a child. Mathis and Jackson were taken into custody and admitted to participating in the robbery.
Stephens was arrested at his home on July 31, 2014, after investigators identified him in connection with another bank robbery that occurred June 27, 2014. At the time of his arrest, officers secured a handgun they found in the kitchen as they made their way to the bedroom where Stephens had been hiding. The handgun was a .40 caliber Smith & Wesson with Winchester ammunition, later determined to be the same firearm discharged on July 16, 2014.
Stephens was identified as the one who planned and organized the Chase Bank robbery. He has also pleaded guilty to bank robbery and brandishing of a firearm in commission of a crime of violence in relation to the second robbery. He will be sentenced in that case on July 19, 2016, before U.S. District Judge Melinda Harmon.
The FBI and Fort Bend County Sherriff’s Office conducted the investigation with the assistance of the Houston Police Department. Assistant U.S. Attorneys Celia Moyer and Richard D. Hanes prosecuted the case.
Gilmer County man charged with illegal possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – A federal grand jury returned an indictment charging Jeremy Allen Wolfe, 30, of Glenville, West Virginia with illegal possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced.
In November 2014, Wolfe was allegedly found in possession of multiple firearms, including three rifles and two shotguns, in Calhoun County, WV. Wolfe, having been convicted of a crime punishable by imprisonment for a term exceeding one year, that is, Delivery of a Controlled Substance, in Gilmer County, WV is prohibited from possessing firearms.
Wolfe was charged with one count of “Felon in Possession of Firearm.” He faces up to ten years in prison and a fine up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Wolfe is presently in the custody of the West Virginia Division of Corrections serving a sentence arising from a criminal conviction in the Circuit Court of Braxton County. The U.S. Attorney’s Office will request that Wolfe temporarily be placed into the custody of the United States Marshal pending the final disposition of the federal case.
Assistant U.S. Attorney Andrew R. Cogar is handling the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the West Virginia State Police are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Gary Pair Indicted for Theft of over $3 Million in Tax RefundsRead the Press Release
HAMMOND- United States Attorney David A. Capp announced today that a federal grand jury in Hammond returned a five-count indictment on May 19, 2016 charging a man and woman from Gary, Indiana with stealing over $3 million in tax refunds from the Internal Revenue Service (IRS).
The indictment charges Donald L. Armour, 65, and Veronica Young, 46, both of Gary, Indiana, with one count of Conspiracy to Commit Mail Fraud. Young is additionally charged with one count of False Claims, and Armour is additionally charged with three counts of False Claims.
The indictment alleges that from about July 2011 to about February 2013, Armour and Young devised a scheme to defraud which involved filing false and fraudulent tax returns in order to obtain fraudulent refunds from the IRS. Specifically, the indictment alleges that Armour and Young created several trusts, named themselves as the trustees, and filed fraudulent tax returns for those trusts. The trust tax returns contained fraudulent representations designed to result in a high refund. Armour received three refund checks, totaling more than $2.7 million, for three separate trusts for which he filed fraudulent tax returns. Young received one refund check for over $300,000 for a trust for which she filed a fraudulent tax return.
The IRS was able to recover approximately $2.2 million of the money issued to Armour and Young in fraudulent refunds.
Armour and Young were taken into custody and had their initial appearance today before Magistrate Judge Andrew Rodovich.
The case is being investigated by the Internal Revenue Service-Criminal Investigation Division and prosecuted by Assistant U.S. Attorney Maria N. Lerner.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
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Former UAB Hospital Food Services Employee Charged with Stealing $1 million in Cash Kept for Cashier ChangeRead the Press Release
BIRMINGHAM – Federal prosecutors today charged a former employee in the Hospital Food and Nutrition Services Department at the University of Alabama at Birmingham with stealing more than $1 million over about six years from a cash room she oversaw, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
The U.S. Attorney’s Office charged KYEJUANA AVERY, 34, of Birmingham, with one count of theft concerning programs receiving federal funds. Prosecutors filed the charge, along with a plea agreement with Avery, in U.S. District Court. According to that agreement, Avery will plead guilty to the charge and pay restitution to UAB in an amount to be determined at sentencing.
Avery worked as a financial account representative at UAB in the Hospital Food and Nutrition Services Department between 2007 and 2013. That department sells food and beverages at locations throughout University Hospital. The department has a bank account, the Change Fund Account, to enable cashiers to exchange high denomination dollar bills for small bills and coins so they could provide change to customers, according to Avery’s plea agreement.
The plea agreement outlines Avery’s charged theft between 2008 and 2013 as follows:
Avery was responsible for the “Cash Room” where the safe containing money for change was kept. As a financial account representative, Avery was responsible for making change for cashiers; requesting change from the bank in the form of “change orders,” or withdrawals; repaying those change orders with “change payments,” or deposits; and keeping a balance of change available in the Cash Room for cashiers.
In December 2013, the Food and Nutrition Services Department counted cash on hand in the Cash Room and found about $14,000 missing. A subsequent UAB audit of the department found $1.1 million in withdrawals between 2008 and December 2013 that were never repaid through deposits.
Avery admitted to the FBI that she began periodically taking cash from the safe in 2008, usually about $800 to $900 at a time, and continued doing so for six years.
The maximum penalty for theft concerning programs receiving federal funds is 10 years in prison and a $250,000 fine.
The FBI, with assistance from the UAB Police Department, investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
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Former U.S. Coast Guard Officer Sentenced for Child PornographyRead the Press Release
ALEXANDRIA, Va. – Christopher Craft, 41, of Woodbridge, a former warrant officer in the U.S. Coast Guard, was sentenced today to 60 months in prison for receipt of child pornography. Craft was also sentenced to 10 years of supervised release and ordered to register as a sex offender upon release from prison.
According to the statement of facts filed with the plea agreement, from July 25, 2014, through Oct. 8, 2014, Craft used a peer-to-peer file sharing program to receive and collect child pornography videos and images, including videos of children as young as 5 years-old being sexually abused. In total, Craft’s child pornography collection included 480 images and 111 videos of children being sexually exploited, including images and videos depicting sadistic or masochistic conduct.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorney Kellen S. Dwyer and Special Assistant U.S. Attorney Scott Claffee prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-47.
Former Minnesota National Guardsman Sentenced to 210 Months in Prison for Production of Child PornographyRead the Press Release
A former Minnesota National Guardsman was sentenced today to 210 months in prison for inducing a 14-year-old girl to create and send to him sexually explicit photos over the Internet while he was deployed to Afghanistan, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Andrew M. Luger of the District of Minnesota.
Andrew Schiller, 28, of Lakeville, Minnesota, was sentenced by U.S. District Judge Susan Richard Nelson of the District of Minnesota, who ordered that he also serve a lifetime term of supervised release and pay restitution to the victim. Schiller pleaded guilty to one count of production of child pornography on Sept. 10, 2015.
According to his guilty plea, between Sept. 23, 2013, and Jan. 12, 2014, while deployed to Afghanistan, Schiller contacted a 14-year-old female from Minnesota online and requested that she create and forward to him via the internet sexually explicit photos of herself. The victim did, in fact, send several images in response to Schiller’s requests, including at least one sexually explicit image. Schiller further admitted that he communicated online with numerous other minors and that he attempted to convince the minors to send to him sexually explicit videos or images of themselves.
The Army Criminal Investigative Division and FBI investigated the case. Trial Attorney Jeffrey H. Zeeman, formerly of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and Assistant U.S. Attorney Katherine T. Buzicky of the District of Minnesota prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
In addition, if you know of any child who may have been a victim of exploitation, please contact the National Center for Missing or Exploited Children (NCMEC) at 1-800-THE-LOST (1-800-843-5678) or visit NCMEC’s web site at www.missingkids.com.
Former Effigy Mounds National Monument Superintendent Sentenced to Serve Federal Jail TimeRead the Press Release
CEDAR RAPIDS, IA - Kevin W. Techau, United States Attorney for the Northern District of Iowa, announced that the former Superintendent at the Effigy Mounds National Monument who stole human remains and hid them in his garage for twenty years was sentenced today in federal court to serve federal jail time.
Thomas A. Munson, age 76, from Prairie du Chien, Wisconsin, received the sentence after a January 4, 2016, guilty plea. Munson was an employee of the National Park Service from July of 1964 to May 1994. He served as Superintendent of the Effigy Mounds National Monument from February 1971, until his retirement in 1994. At all times during his employment, Munson was entrusted with preserving and protecting the sacred site. He failed this trust.
Evidence presented at the plea and sentencing hearings revealed that sometime in July of 1990, Munson decided to illegitimately take possession of items in the museum collections in an effort to avert the mandates of the then pending Native American Graves Protection and Repatriation Act, which he thought was “bad law”. The law allowed—in Munson’s opinion—modern day Native American Tribes to inaccurately and unscientifically affiliate themselves with prehistoric human remains and funerary objects. To thwart the law and to save him personally the effort of complying with it, Munson decided to remove skeletal prehistoric human remains from the museum collection in an attempt to maintain possession of any associated funerary objects that might otherwise follow the human remains back to a tribe.
Sometime in July of 1990, Munson directed a seasonal National Park Service employee to remove the skeletal prehistoric human remains of 41 Native Americans (i.e., approximately 2,135 whole and fragmentary human remains) from the museum collection. The majority of these skeletal remains was originally removed from archeological sites within Effigy Mounds National Monument and organized by catalog and accession numbers within the collection drawers of the museum curatorial storage facility.
On or about July 16, 1990, Munson and the seasonal employee each carried a box of human remains from the museum’s curatorial facility to his car. Munson then drove the items to his Prairie du Chien, Wisconsin home where he concealed them for more than twenty years. During the time period of the crime, Munson repeatedly misled the National Park Service employees about what became of the missing human remains.
As part of his plea agreement, defendant wrote a public acknowledgment expressing his guilt and apologized for his actions. A copy of that document is attached. munson_16_07-06_apology_signed.pdf
Munson was sentenced in Cedar Rapids by United States District Court Chief Magistrate Judge Jon S. Scoles. Munson was sentenced to 10 consecutive weekends in jail, 12 months’ supervised probation, home detention for 12 months’ with appropriate monitoring to ensure compliance, $3000 fine and a $25 special assessment. He was also ordered to perform 100 hours of community service and pay restitution in the sum of $108,905.
United States Attorney Kevin W. Techau said following sentencing, “It is a very sad day when a public official betrays the public’s trust. This was a serious crime and the betrayal was compounded by a violation of the most sacred trust placed in Mr. Munson as the Superintendent of Effigy Mounds National Monument.”
Current Effigy Mounds Superintendent James Nepstad stated, “Mr. Munson’s crime violated the trust of the American Indians in particular, the public, and the National Park Service, and the agency he served.” Nepstad continued noting, “Munson’s illegal actions prevented us from repatriating these human remains for over twenty years. Despite his obstruction of our investigation, we found and recovered these human remains and are committed to working with our tribal partners to repatriate them as quickly and respectfully as possible. Additionally, we are continuing to establish safeguards at Effigy Mounds to protect sacred remains in accord with the Native American Graves Protection and Repatriation Act. We thank the Department of Justice for investigating this case with us, and bringing resolution to it.”
The Effigy Mounds National Monument located in Allamakee County, Iowa and operated by the National Park Service was established by a Presidential Proclamation by Harry S. Truman on October 25, 1949 under the Antiquities Act of 1906. The monument was established primarily to protect over 200 known prehistoric earthen burial mounds, some in the shape of animals, constructed between 700 and 2,500 years ago. The monument land is held in fee simple by the National Park Service, United States Department of the Interior. The monument is an area of concurrent federal jurisdiction.
The following Tribes affiliate themselves with Effigy Mounds National Monument:
Crow Creek Sioux Tribe
Flandeau Santee Sioux
Ho-Chunk Nation
Iowa Tribe of Kansas & Nebraska
Iowa Tribe of Oklahoma
Lower Sioux Indian Community
Omaha Nation
Otoe-Missouria Tribe
Ponca Tribe of Nebraska
Prairie Island Indian Community
Sac and Fox Nation of Missouri in Kansas and Nebraska
Sac and Fox Nation of Oklahoma
Sac and Fox Tribe of the Mississippi in Iowa
Santee Sioux Nation
Shakopee Mdewakanton Sioux Community of Minnesota
Sisseton Wahpeton Oyate Tribe
Standing Rock Sioux Tribe
Upper Sioux Indian Community
Winnebago Tribe of Nebraska and
Yankton Sioux Tribe
The case was investigated by the National Park Service and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR15-1030.
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Former Corrections Deputy Charged in Bank HeistRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the filing of a criminal complaint charging Elizabeth Brooks Perkins (46, Brooksville) with bank robbery and a related firearms offense. If convicted on all counts, she faces a maximum penalty of life in federal prison. Perkins was arrested on July 7, 2016.
According to the complaint, at 4:30 p.m. on February 10, 2016, Perkins visited the Sunshine Bank in Plant City and met with the Branch Manager to discuss a purported land purchase. When the bank closed, she brandished a semi-automatic pistol and held two employees at gunpoint. After stealing $110,000, Perkins duct-taped the employees and fled.
A criminal complaint is merely an allegation that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Plant City Police Department, and the Hillsborough County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Carlton C. Gammons.
Former Commissioner of Mount Vernon Water Department Sentenced to 15 Months in Prison for BriberyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ANTHONY BOVE, the former Commissioner of the Board of Water Supply of the City of Mount Vernon (the “Water Department”), was sentenced today to 15 months in prison for soliciting a $10,000 bribe from an employee of the Water Department, and lying to federal law enforcement officers when BOVE was interviewed during the investigation. BOVE pled guilty in White Plains federal court on March 22, 2016, before U.S. District Judge Vincent L. Briccetti, who imposed today’s sentence.
U.S. Attorney Preet Bharara said: “While entrusted to provide clean and safe water for the people of Mount Vernon, Anthony Bove looked out only for himself, demanding a bribe from one of his own employees for a promotion to which the employee was already entitled. For this shameful corruption, Bove has been sentenced to 15 months in prison.”
According to the Information, statements made in open court, and other documents in the public record:
BOVE was the Commissioner of the Water Department. The City of Mount Vernon (the “City”) annually receives in excess of $10,000 in federal funds from the United States government. The Water Department is responsible for serving City residents by, among other things, monitoring and treating the City’s water supply, repairing water main leaks, and reading water meters and generating water bills. In accordance with the City Charter, the Commissioner of the Water Department is appointed by the City’s Mayor, serves at the Mayor’s pleasure, and reports directly to the Mayor as the head of one of the City’s departments.
In the spring of 2015, while serving as the Water Commissioner, BOVE solicited a $10,000 bribe from a Water Department employee (“the Employee”) in exchange for approving the Employee’s promotion within the Water Department. The Employee, who was serving in a provisional capacity as the bookkeeper of the Water Department, had passed a civil service bookkeeping examination in order to become eligible for a permanent bookkeeping position at the Water Department. After receiving the test results, the Employee completed the necessary form to apply for the permanent bookkeeping position, and submitted it to BOVE for his approval and signature, which was required for the promotion to occur.
BOVE did not approve the application; instead, on April 14, 2015, BOVE told the Employee to meet him at Memorial Field in Mount Vernon. At Memorial Field, BOVE conveyed to the Employee that he would not approve the Employee’s promotion unless the Employee gave BOVE $10,000, and that the Employee could give BOVE half ($5,000) up front and pay the balance later. BOVE said that he would accept the remaining payments on installment: “So give me like, fucking like 20 dollars every fucking paycheck or whatever, you know.”
Following the April 14 meeting, BOVE called the Employee on multiple occasions to ask whether and when the Employee would pay him. The Employee did not make any payments to BOVE and the Employee’s application form seeking the permanent bookkeeping position remained unapproved for months. Ultimately, in the fall of 2015, after Mount Vernon’s incumbent mayor was defeated in the primary for the mayoral election and prior to the change in administrations (which resulted in BOVE being replaced as Water Commissioner), BOVE signed the form approving the Employee’s promotion, without having obtained any payment from the Employee.
On December 7, 2015, a Special Agent from the U.S. Department of Housing and Urban Development, Office of Inspector General (“HUD OIG”), and a Criminal Investigator from the U.S. Attorney’s Office for the Southern District of New York interviewed BOVE in connection with a federal investigation into whether BOVE had attempted to extort the Employee. During the interview, BOVE lied to the investigating agents, stating, in sum and substance, that he had never asked for money to approve a job promotion for anyone in his department.
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In sentencing BOVE, Judge Briccetti described BOVE’s conduct as “a disgrace.”
In addition to the prison sentence, Judge Briccetti ordered BOVE to pay a $10,000 fine and a $200 special assessment fee. BOVE also was sentenced to two years of supervised release.
Mr. Bharara praised HUD OIG and the Criminal Investigators of the U.S. Attorney’s Office for their outstanding work during this investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney George Turner is in charge of the prosecution.
Former Bank Officer Pleads Guilty to EmbezzlementRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Michael L. Johnson (56, Odessa) today pleaded guilty to misappropriation of bank funds and embezzlement. He faces a maximum penalty of 30 years in federal prison.
According to the plea agreement and court proceedings, Johnson was employed as a Senior Vice President/Special Assets Officer at American Momentum Bank. In his capacity as a Special Assets Officer, Johnson was responsible for marketing and selling bank-owned properties to investors in order to remove these troubled assets from the bank’s balance sheet. Johnson signed the closing documents, including the HUD-1 Settlement Statement, on behalf of American Momentum Bank.
Beginning around June 2012, and continuing through November 2014, Johnson devised a scheme to misapply and embezzle funds provided by American Momentum Bank. After the sale of bank-owned properties had been approved by the bank, Johnson set up closings with real estate settlement agents. He then contacted the agents and ordered additions and/or changes to the disbursement side of the HUD-1. After closing, funds provided by American Momentum Bank were directed to bank accounts controlled by Johnson’s family members.
This case was investigated by the Unites States Secret Service, the Tampa Police Department and the Federal Housing Finance Agency – Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Chris Poor.
Florida Man Sentenced to 5 Years in Federal Prison for Structuring Drug MoneyRead the Press Release
FRESNO, Calif. — Peter Santo Capodieci, 25, of Crystal River, Florida, was sentenced today by United States District Judge Lawrence J. O’Neill to five years in prison for conspiring to structure cash transactions, Acting United States Attorney Phillip Talbert announced.
According to court documents and testimony, Capodieci and co-conspirators operated a drug trafficking organization that shipped millions of dollars in marijuana from California to Florida and other states. To move the proceeds of that marijuana distribution back to California, Capodieci and co-conspirators opened and maintained bank accounts at several national banks. More than $7.5 million in cash proceeds from the drug distribution was deposited into and withdrawn from those accounts. Most of those cash transactions were carried out in amounts of $10,000 or less to prevent the banks from filing Currency Transaction Reports on the transactions. Capodieci’s bank accounts were used to deposit and withdraw more than $2.5 million in cash, all of which consisted of proceeds from marijuana trafficking.
This case is being brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the Internal Revenue Service Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling, and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.
This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies. Assistant U.S. Attorney Grant B. Rabenn is prosecuting the case.
Co-defendant Chad Riffle was sentenced to five years imprisonment; co-defendant Jeremy Murphy was sentenced to fifteen months imprisonment; co-defendants Miguel Gonzalez, Bree Benson, and Brandon Thomas have pleaded guilty to conspiring to structure financial transactions and are awaiting sentencing. Co-defendant Ashley Starling Thomas was convicted on multiple counts of money laundering and structuring following a three-day trial and is scheduled to be sentenced August 29, 2016.
District Man Sentenced to 38 Years in Prison for Armed Rapes of Two StrangersRead the Press Release
WASHINGTON – Paul Williams, 32, of Washington, D.C., was sentenced today to 38 years in prison for raping and assaulting two women in separate attacks in Northeast Washington within a three-week period in November 2014, U.S. Attorney Channing D. Phillips announced.
Both women were strangers that Williams and his accomplice, Rai-Jon Gerald, kidnapped off public sidewalks and forced into deserted areas, where Williams and Gerald sexually assaulted them. One attack took place on Thanksgiving Day.
Williams pled guilty in March 2016, in the Superior Court of the District of Columbia, to two counts of first-degree sexual abuse, one count of assault with a dangerous weapon, and one count of armed robbery. The plea, which was contingent upon the Court’s approval, called for a prison sentence between 35 and 38 years. It also required the defendant to register as a sex offender for life upon his release. The Honorable Michael Ryan accepted the plea at a hearing today and sentenced Williams accordingly. The judge called the defendant’s actions “shocking.” Following his prison term, Williams will be placed on 15 years of supervised release.
According to the government’s evidence, in the early morning hours of Nov. 7, 2014, Williams and Gerald planned to rob a convenience store at 49th Street and Nannie Helen Burroughs Avenue NE. When a suspicious employee thwarted their plans, Williams and Gerald, armed with a BB gun that looked like a real handgun, walked eastbound down Nannie Helen Burroughs Avenue. They soon spotted a woman walking alone, whom they approached. Gerald displayed the gun to the woman, while Williams grabbed her by the hair and forced her to the ground. Williams then put the woman in a headlock and dragged her into a deserted alley near an abandoned wooded lot. There, in the dark and amidst such debris as discarded mattresses and tires, Williams and Gerald orally and vaginally raped the woman. They also robbed her of cash and phones, and Williams threatened to kill her if she reported the assault.
Three weeks later, on Nov. 27, 2014 – which was Thanksgiving Day - Williams and Gerald again met up in the early morning hours to rob the convenience store at 49th Street and Nannie Helen Burroughs Avenue NE. Once again, their plans were thwarted, causing them to head down Nannie Helen Burroughs Avenue in search of other victims. They encountered a woman, who, like their first victim, was a complete stranger to them. Armed with a BB gun and Taser, Williams and Gerald assaulted the woman, robbing her of her purse and forcing her off the sidewalk toward tall bushes at nearby Kelly Miller Middle School. While Gerald led the way, Williams dragged the woman, repeatedly striking her in the head and face with his gun. Once behind the bushes, Williams forcibly removed the woman’s clothing and orally sexually assaulted her. Williams also attempted forced vaginal sex. Throughout, the woman fought back. In response, Williams continued to pistol whip her, as well as strike her in the face with his fists. Williams and Gerald Tasered the woman multiple times. With Williams’s assistance, Gerald also sexually assaulted the woman orally, and attempted to do so vaginally.
A neighbor heard the woman’s screams and the sounds of her being Tasered. He called the police, who quickly arrived on scene. Gerald escaped, but Williams was arrested nearby hiding in a yard. Williams has been in custody since his arrest.
Gerald, 21, also of Washington, D.C., was identified and arrested two months later, and he earlier pled guilty to first-degree sexual abuse, attempted first-degree sexual Abuse, and two counts of robbery. He is awaiting sentencing.
In announcing the sentence, U.S. Attorney Phillips commended the work of the detectives of the Metropolitan Police Department’s Sexual Assault Division, the patrol officers who responded, and the crime scene officers who processed both crime scenes. He thanked the District of Columbia Forensic Nurse Examiners who examined the victims shortly after the assaults, the FBI’s Footwear Examiners, the forensic biologists and DNA analysts at Bode Cellmark Forensics and the D.C. Department of Forensic Sciences, and Teel Technologies, which performed forensic analysis of the defendant’s phone.
U.S. Attorney Phillips also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica Vaughn; Paralegal Specialists Jessica Moffatt and Joyce Arthur; Legal Assistant Brendan Coyne; Criminal Investigation Unit Investigator John Marsh; Information Technology Specialists Leif Hickling, Aneela Bhatia, Paul Howell, and Joshua Ellen; Investigative Analyst William Hamann; Witness Security Specialist Michael Hailey; current and former interns Allison Denton, Stephanie Dinan, Emma McArthur, and Marissa Moshell; former Paralegal Specialist Chantal Corrigan; Special Assistant U.S. Attorney Brian Morgan, and Assistant U.S Attorney Jodi Lazarus, who assisted with the initial investigation of the case. Finally, U.S. Attorney Phillips thanked Assistant U.S. Attorneys John L. Hill and Kara Traster, who investigated, indicted, and prosecuted the case.
Disbarred Orange County Attorney Indicted for Mail Fraud, Structuring Cash Transactions, Obstructing the IRS, Tax Evasion, Obstruction of Justice, and PerjuryRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Shantelle P. Kitchen, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (“IRS-CI”), and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today the unsealing in White Plains federal court of a six-count Indictment of former Orange County Attorney JOSEPH G. SCALI for mail fraud, structuring cash transactions, obstructing the IRS, tax evasion, obstruction of justice, and perjury. SCALI was arrested this morning and is expected to be arraigned in federal court in White Plains this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Joseph Scali abused his position of trust as a lawyer and officer of the court, by stealing funds entrusted to him, obstructing the work of the IRS, and evading his tax obligations. We thank the IRS and Postal Inspection Service for their work in this investigation.”
IRS-CI Special Agent in Charge Shantelle P. Kitchen said: “In the interest of ensuring that everyone pays their fair share of taxes, IRS-Criminal Investigation investigates individuals who allegedly unlawfully exploit the tax system for their own advantage. We especially take allegations of obstructing IRS officers from performing their lawful duties very seriously. Law abiding taxpayers will expect no less.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Joseph Scali allegedly violated his ethical responsibilities and lied to the government to avoid taxes and disbarment. In all of his alleged lies, he underestimated the resolve of law enforcement to protect consumers from scammers whose only intention is to defraud for their personal gain.”
According to the Indictment[1] and other court filings related to this matter:
From January of 2011 through August 28, 2012, SCALI, who represented the seller of two tracts of land in Pennsylvania, schemed to defraud the prospective purchaser of that real estate of the $850,000 the latter had given to him to hold in escrow by misappropriating those funds from his attorney trust/escrow account. Additionally, the Indictment charges SCALI with structuring approximately $32,000 of cash deposits to that account.
The Indictment also charges that SCALI corruptly endeavored to obstruct the IRS by (a) providing materially false, incomplete, and misleading information to a Revenue Officer of the Internal Revenue Service, namely, false, misleading, and incomplete information as to the years for which he had filed tax returns in the past, the reasons why SCALI had not filed tax returns for certain years, and the amount of income received by SCALI during tax year 2012; (b) commingling client funds and personal funds in his Attorney Trust Account; (c) paying for personal items directly out of his Attorney Trust Account; (d) structuring cash deposits to his Attorney Trust Account; (e) failing to file U.S. Individual Income Tax Returns, Forms 1040, notwithstanding that he was required by law to file a return for each year (2006 through 2012); (f) failing to file U.S. Corporate Income Tax Returns, Forms 1120, for his law firm, Joseph G. Scali, P.C., notwithstanding that the law firm was required by law to file a return for each year (2006 through 2012); and (g) failing to maintain required records concerning his Attorney Trust Account. Additionally, the Indictment charges SCALI with income tax evasion for the 2012 year.
Finally, the Indictment charges that SCALI committed obstruction of justice and perjury when, in seeking to set aside his disbarment by the United States District Court for the Southern District of New York, he lied to that court about why, in 2013, he had been suspended from practicing law in New York by the Second Department of the Appellate Division of the New York State Supreme Court (“the Appellate Division”). SCALI was disbarred by the Appellate Division on July 6, 2016.
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SCALI, 67, of West Hartford, Connecticut, is charged with one count of mail fraud, which carries a maximum sentence of 20 years in prison; on count of structuring cash transactions, which carries a maximum sentence of five years in prison; one count of obstructing the IRS, which carries a maximum sentence of three years in prison; one count of tax evasion, which carries a maximum sentence of five years in prison; one count of obstruction of justice, which carries a maximum sentence of 10 years in prison; and one count of perjury, which carries a maximum sentence of five years in prison.
Mr. Bharara praised the work of the IRS and the Postal Inspection Service in this investigation.
This case is being handled out of the White Plains Division. Assistant United States Attorney Elliott B. Jacobson is 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.
Defense Contractor Employee from Culver City Arrested for Selling Satellite Secrets to Undercover Agent Posing as a Foreign SpyRead the Press Release
LOS ANGELES – A Culver City, California, man was arrested yesterday on federal charges of economic espionage and violations of the Arms Export Control Act for his attempts to sell sensitive satellite information to a person he believed to be a foreign intelligence agent.
U.S. Attorney Eileen M. Decker of the Central District of California, Assistant Attorney General for National Security John P. Carlin, Assistant Director in Charge Deirdre Fike of the FBI’s Los Angeles Field Office and Special Agent John Rayho of the U.S. Air Force Office of Special Investigations (AFOSI) Detachment Commander at Los Angeles Air Force Base made the announcement.
Gregory Allen Justice, 49, who worked for a cleared defense contractor as an engineer on military and commercial satellites during his alleged crimes, was arrested by FBI special agents and made his initial appearance yesterday afternoon in U.S. District Court for the Central District of California where the judge ordered him detained pending trial.
“Our nation’s security depends on the honesty and integrity of those entrusted with our technological secrets,” said U.S. Attorney Decker. “In this case, the defendant sought to undermine our national security by attempting to sell proprietary and controlled information about satellites to a foreign government’s intelligence service. Fortunately, law enforcement agents were able to timely and effectively intervene to protect this critical technology.”
“Mr. Justice allegedly placed his own interests of greed over our national security by providing information on sensitive U.S. technologies to a person whom he believed was a foreign agent,” said Assistant Attorney General Carlin. “In the wrong hands, this information could be used to harm the United States and its allies. The National Security Division will continue to relentlessly identify, pursue and prosecute offenders that threaten our national security. I would like to thank the FBI and the Air Force Office of Special Investigations for their efforts in protecting our nation’s most sensitive information.”
“The enforcement of U.S. laws that prohibit the acquisition of specified economic information and defense-related items is vital to national security and can prove to be a challenging mission when set against the backdrop of legitimate international trade, vast amounts of which occur every day in the United States,” said Assistant Director in Charge Fike. “The cooperative effort among the FBI and Air Force OSI was critical in bringing this case forward for prosecution by the U.S. Department of Justice.”
“This investigation exemplifies the crucial law enforcement alliance the Air Force Office of Special Investigations enjoys with our DOJ counterparts,” said Special Agent Rayho. “We remain diligent in our mission to protect the vital technologies our national defense forces rely on.”
According to the affidavit in support of the criminal complaint, Justice stole proprietary trade secret materials from his employer and provided them to a person whom he believed to be a representative of a foreign intelligence service, but who was in fact an FBI undercover agent. In addition to their proprietary nature, the documents contained technical data covered by the U.S. Munitions List and therefore controlled for export from the United States under the International Traffic in Arms Regulations, according to the allegations. In exchange for providing these materials, Justice allegedly sought and received cash payments.
A criminal complaint contains allegations that a defendant has committed a crime. The defendant is presumed to be innocent until and unless proven guilty in court.
If convicted, Justice faces a statutory maximum penalty of 15 years in federal prison for the economic espionage charge and a statutory maximum penalty of 20 years in federal prison for violating the Arms Export Control Act.
The FBI and AFOSI investigated the case. Attorneys from the U.S. Attorney’s Office of the Central District of California and the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Defense Contractor Employee Arrested for Selling Satellite Secrets to Undercover Agent Posing as Foreign SpyRead the Press Release
A Culver City, California, man was arrested yesterday on federal charges of economic espionage and violations of the Arms Export Control Act for his attempts to sell sensitive satellite information to a person he believed to be a foreign intelligence agent.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Eileen M. Decker of the Central District of California, Assistant Director in Charge Deirdre Fike of the FBI’s Los Angeles Field Office and Special Agent John Rayho of the U.S. Air Force Office of Special Investigations (AFOSI) Detachment Commander at Los Angeles Air Force Base made the announcement.
Gregory Allen Justice, 49, who worked for a cleared defense contractor as an engineer on military and commercial satellites during his alleged crimes, was arrested yesterday by FBI special agents and made his initial appearance yesterday afternoon in U.S. District Court for the Central District of California. The judge ordered him detained pending trial.
“Mr. Justice allegedly placed his own interests of greed over our national security by providing information on sensitive U.S. technologies to a person whom he believed was a foreign agent,” said Assistant Attorney General Carlin. “In the wrong hands, this information could be used to harm the United States and its allies. The National Security Division will continue to relentlessly identify, pursue and prosecute offenders that threaten our national security. I would like to thank the FBI and the Air Force Office of Special Investigations for their efforts in protecting our nation’s most sensitive information.”
“Our nation’s security depends on the honesty and integrity of those entrusted with our technological secrets,” said U.S. Attorney Decker. “In this case, the defendant sought to undermine our national security by attempting to sell proprietary and controlled information about satellites to a foreign government’s intelligence service. Fortunately, law enforcement agents were able to timely and effectively intervene to protect this critical technology.”
“The enforcement of U.S. laws that prohibit the acquisition of specified economic information and defense-related items is vital to national security and can prove to be a challenging mission when set against the backdrop of legitimate international trade, vast amounts of which occur every day in the United States,” said Assistant Director in Charge Fike. “The cooperative effort among the FBI and Air Force OSI was critical in bringing this case forward for prosecution by the U.S. Department of Justice.”
“This investigation exemplifies the crucial law enforcement alliance the Air Force Office of Special Investigations enjoys with our DOJ counterparts,” said Special Agent Rayho. “We remain diligent in our mission to protect the vital technologies our national defense forces rely on.”
According to the affidavit in support of the criminal complaint, Justice stole proprietary trade secret materials from his employer and provided them to a person whom he believed to be a representative of a foreign intelligence service, but who was in fact an FBI undercover agent. In addition to their proprietary nature, the documents contained technical data covered by the U.S. Munitions List and therefore controlled for export from the United States under the International Traffic in Arms Regulations, according to the allegations. In exchange for providing these materials, Justice allegedly sought and received cash payments.
A criminal complaint contains allegations that a defendant has committed a crime. The defendant is presumed to be innocent until and unless proven guilty in court.
If convicted, Justice faces a statutory maximum penalty of 15 years in federal prison for the economic espionage charge and a statutory maximum penalty of 20 years in federal prison for violating the Arms Export Control Act.
The FBI and AFOSI investigated the case. Attorneys from the U.S. Attorney’s Office of the Central District of California and the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Connecticut Resident Indicted in Rhode Island on Fraud ChargesRead the Press Release
PROVIDENCE, R.I. – Robert Oathout, 35, of Hartford, Conn., has been arraigned in federal court in Rhode Island on charges that he allegedly defrauded family members and family friends of at least $398,000. According to court documents, it is alleged that Oathout told the victims that he needed to borrow money from them to pay medical expenses in advance of his receipt of a one million dollar settlement payment. He claimed he was due the settlement as the result of a botched medical procedure performed on him at a Hartford medical facility. Oathout told the victims that the medical facility would repay them upon payment of the settlement.
According to court documents filed in this case, no such medical procedure occurred and no such settlement payment was due Oathout. It is alleged that a portion of the fraudulently obtained money was used by Oathout to pay gambling debts.
United States Attorney Peter F. Neronha and Harold H. Shaw, Special Agent in Charge of the FBI Boston Field Division, today announced the return on June 30, 2016, of a federal indictment which charges Oathout with eight counts of wire fraud. The indictment was unsealed on Thursday following Oathout’s arrest in Hartford by FBI agents and his arraignment in U.S. District Court in Providence. A not guilty plea was entered.
According to the indictment and information provided to the court, it is alleged that as part of the scheme, between September 27, 2013, and December 22, 2015, Oathout fraudulently induced his victims, all between the ages of 67 an 87 years, to transfer funds to him electronically. Electronic transfers of varying amounts were made to Oathout before, while and after he was a federal inmate at the Donald W. Wyatt Detention Center in Central Falls, R.I. Some of the funds were transferred into his and other inmates’ prison accounts while he was detained on federal drug charges in an unrelated case brought against him by the United States Attorney’s Office for the District of Connecticut.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
At the conclusion of a detention hearing today, Magistrate Judge Lincoln D. Almond ordered that Oathout, who has been in custody since his arrest on Thursday, be released on the terms of his current federal probation which was imposed at sentencing on his previous drug conviction.
Wire fraud is punishable by statutory penalties of up to 20 years imprisonment; a fine of up to $250,000; and up to 3 years supervised release.
The case is being prosecuted by Assistant U.S. Attorney Sandra R. Hebert. The matter was investigated by the FBI.
United States Attorney Peter F. Neronha and Harold H. Shaw, Special Agent in Charge of the FBI Boston Field Division, acknowledge and thank investigators at the Donald W. Wyatt Detention Center for their assistance in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Congresswoman Corrine Brown and Chief of Staff Charged with Fraud Scheme Involving Bogus Non-Profit Scholarship EntityRead the Press Release
Congresswoman Corrine Brown and her chief of staff were indicted today for their roles in a conspiracy and fraud scheme involving a fraudulent education charity.
Brown, 69, of Jacksonville, Florida, and her chief of staff, Elias “Ronnie” Simmons, 50, of Laurel, Maryland, were charged today in a 24-count indictment with participating in a conspiracy to commit mail and wire fraud, multiple counts of mail and wire fraud, concealing material facts on required financial disclosure forms, theft of government property, obstruction of the due administration of the internal revenue laws and filing false tax returns.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Special Agent in Charge Michelle S. Klimt of the FBI’s Jacksonville Division and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.
“Congresswoman Brown and her chief of staff are alleged to have used the Congresswoman’s official position to solicit over $800,000 in donations to a supposed charitable organization, only to use that organization as a personal slush fund,” said Assistant Attorney General Caldwell. “Corruption erodes the public’s trust in our entire system of representative government. One of the department’s most important responsibilities is to root out corruption at all levels of government and to bring wrongdoers to justice.”
“Our office is committed to ferreting out and prosecuting all forms of corruption and fraud, regardless of who the offender is,” said U.S. Attorney Bentley. “In our nation, no one is above the law.”
“Corrupt public officials undermine the integrity of our government and violate the public’s trust,” said Special Agent in Charge Klimt. “That is why public corruption is the FBI’s top criminal priority. It is incredibly disappointing that an elected official, who took an oath year after year to serve others, would exploit the needs of children and abuse the charitable hearts of constituents to advance her own personal and political agendas and deliver them with virtually nothing.”
“The defendants are alleged to have committed a multitude of criminal violations, including fraudulently receiving and using hundreds of thousands of dollars in contributions meant for a nonprofit organization for their own personal and professional benefit,” said Special Agent in Charge Lappin. “The American public expects and deserves equitable enforcement of our tax laws.”
The indictment alleges that between late 2012 and early 2016, Brown and Simmons participated in a conspiracy and fraud scheme involving One Door for Education – Amy Anderson Scholarship Fund (One Door) in which the defendants and others acting on their behalf solicited more than $800,000 in charitable donations based on false representations that the donations would be used for college scholarships and school computer drives, among other things. According to the indictment, Brown and Simmons allegedly solicited donations from individuals and corporate entities that Brown knew by virtue of her position in the U.S. House of Representatives, many of whom the defendants led to believe that One Door was a properly-registered 501(c)(3) non-profit organization, when, in fact, it was not.
Contrary to the defendants’ representations, the indictment alleges that Brown, Simmons and Carla Wiley, the president of One Door, among others, used the vast majority of One Door donations for their personal and professional benefit, including tens of thousands of dollars in cash deposits that Simmons made to Brown’s personal bank accounts. In one instance, Simmons is alleged to have deposited $2,100 in One Door funds into Brown’s personal bank account the same day that Brown wrote a check for a similar amount to pay taxes she owed. Likewise, the indictment alleges that Brown and Simmons used the outside consulting company of one of Brown’s employees to funnel One Door funds to Brown and others for their personal use. According to the indictment, more than $200,000 in One Door funds were used to pay for events hosted by Brown or held in her honor, including a golf tournament in Ponte Vedra Beach, Florida; lavish receptions during an annual conference in Washington, D.C.; the use of a luxury box during a concert in Washington, D.C.; and the use of a luxury box during an NFL game in the Washington, D.C., area.
Despite raising over $800,000 in donations, the indictment alleges that One Door was associated with only two scholarships totaling $1,200 that were awarded to students to cover expenses related to attending a college or university.
Simmons is also charged with theft of government property based on the misuse of his position as Brown’s chief of staff to obtain congressional employment for a close relative. Between 2001 and early 2016, Simmons’ relative allegedly received approximately $735,000 in government salary payments despite performing no known work for the U.S. House of Representatives. The indictment alleges that between 2009 and late 2015, Simmons diverted over $80,000 of his relative’s government salary for his personal benefit, including through transfers to his personal bank accounts, payments on his personal credit cards and loan payments on his boat.
Simmons and Brown are also charged with failing to disclose, among other things, the reportable income they received from One Door and the salary payments that Simmons diverted from his relative’s government employment on required financial disclosure forms submitted to the U.S. House of Representatives and made available to the general public.
Brown is also charged with engaging in tax obstruction between 2008 and 2014 and, in certain years, filing false returns based on her repeated failure to report income from substantial cash deposits to her personal bank accounts and her repeated deduction of inflated and fabricated charitable donations. According to the indictment, in various years, Brown claimed deductions on her tax returns based on false donations she claimed she made to One Door, as well as to local churches and non-profit organizations in the Jacksonville area.
Wiley, the president of One Door, pleaded guilty for her involvement in the scheme on March 3, 2016.
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The FBI and IRS-CI are investigating the case. Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys A. Tysen Duva and Michael J. Coolican of the Middle District of Florida are prosecuting the case.
Congresswoman Corrine Brown and Chief of Staff Charged with Fraud Scheme Involving Bogus Non-Profit Scholarship EntityRead the Press Release
Jacksonville, FL – Congresswoman Corrine Brown and her chief of staff were indicted today for their roles in a conspiracy and fraud scheme involving a fraudulent education charity.
Brown, 69, of Jacksonville, Florida, and her chief of staff, Elias “Ronnie” Simmons, 50, of Laurel, Maryland, were charged today in a 24-count indictment with participating in a conspiracy to commit mail and wire fraud, multiple counts of mail and wire fraud, concealing material facts on required financial disclosure forms, theft of government property, obstruction of the due administration of the internal revenue laws, and filing false tax returns.
U.S. Attorney A. Lee Bentley III, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Michelle Klimt of the FBI’s Jacksonville Division, and Special Agent in Charge Kim Lappin of the Internal Revenue Service-Criminal Investigation (IRS-CI) Tampa Field Office made the announcement.
“Our Office is committed to ferreting out and prosecuting all forms of corruption and fraud, regardless of who the offender is,” said U.S. Attorney Bentley. “In our nation, no one is above the law.”
"Congresswoman Brown and her chief of staff are alleged to have used the Congresswoman's official position to solicit over $800,000 in donations to a supposed charitable organization, only to use that organization as a personal slush fund," said Assistant Attorney General Caldwell. "Corruption erodes the public's trust in our entire system of representative government. One of the department's most important responsibilites is to root out corruption at all levels of government and to bring wrongdoers to justice."
“Corrupt public officials undermine the integrity of our government and violate the public’s trust,” said Michelle S. Klimt, Special Agent in Charge of the FBI Jacksonville Division. “That is why public corruption is the FBI’s top criminal priority. It is incredibly disappointing that an elected official, who took an oath year after year to serve others, would exploit the needs of children and abuse the charitable hearts of constituents to advance her own personal and political agendas and deliver them with virtually nothing.”
"The defendants are alleged to have committed a multitude of criminal violations, including fraudulently receiving and using hundreds of thousands of dollars in contributions meant for a nonprofit organization for their own personal and professional benefit,” said Richard Weber, Chief, IRS Criminal Investigation. “The American public expects and deserves equitable enforcement of our tax laws.”
The indictment alleges that between late 2012 and early 2016, Brown and Simmons participated in a conspiracy and fraud scheme involving One Door for Education – Amy Anderson Scholarship Fund (One Door) in which the defendants and others acting on their behalf solicited more than $800,000 in charitable donations based on false representations that the donations would be used for college scholarships and school computer drives, among other things. According to the indictment, Brown and Simmons allegedly solicited donations from individuals and corporate entities that Brown knew by virtue of her position in the U.S. House of Representatives, many of whom the defendants led to believe that One Door was a properly-registered 501(c)(3) non-profit organization, when, in fact, it was not.
Contrary to the defendants’ representations, the indictment alleges that Brown, Simmons and Carla Wiley, the president of One Door, among others, used the vast majority of One Door donations for their personal and professional benefit, including tens of thousands of dollars in cash deposits that Simmons made to Brown’s personal bank accounts. In one instance, Simmons is alleged to have deposited $2,100 in One Door funds into Brown’s personal bank account the same day that Brown wrote a check for a similar amount to pay taxes she owed. Likewise, the indictment alleges that Brown and Simmons used the outside consulting company of one of Brown’s employees to funnel One Door funds to Brown and others for their personal use. According to the indictment, more than $200,000 in One Door funds were used to pay for events hosted by Brown or held in her honor, including a golf tournament in Ponte Vedra Beach, Florida; lavish receptions during an annual conference in Washington, D.C.; the use of a luxury box during a concert in Washington, D.C.; and the use of a luxury box during an NFL game in the Washington, D.C., area.
Despite raising over $800,000 in donations, the indictment alleges that One Door was associated with only two scholarships totaling $1,200 that were awarded to students to cover expenses related to attending a college or university.
Simmons is also charged with theft of government property based on the misuse of his position as Brown’s chief of staff to obtain congressional employment for a close relative. Between 2001 and early 2016, Simmons’ relative allegedly received approximately $735,000 in government salary payments despite performing no known work for the U.S. House of Representatives. The indictment alleges that between 2009 and late 2015, Simmons diverted over $80,000 of his relative’s government salary for his personal benefit, including through transfers to his personal bank accounts, payments on his personal credit cards and loan payments on his boat.
Simmons and Brown are also charged with failing to disclose, among other things, the reportable income they received from One Door and the salary payments that Simmons diverted from his relative’s government employment on required financial disclosure forms submitted to the U.S. House of Representatives and made available to the general public.
Brown is also charged with engaging in tax obstruction between 2008 and 2014 and, in certain years, filing false returns based on her repeated failure to report income from substantial cash deposits to her personal bank accounts and her repeated deduction of inflated and fabricated charitable donations. According to the indictment, in various years, Brown claimed deductions on her tax returns based on false donations she claimed she made to One Door, as well as to local churches and non-profit organizations in the Jacksonville area.
Wiley, the president of One Door, pleaded guilty for her involvement in the scheme on March 3, 2016.
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The FBI and IRS-CI are investigating the case. Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys A. Tysen Duva and Michael J. Coolican of the Middle District of Florida are prosecuting the case.
UPDATE: Brown and Simmons will make their initial appearances in Jacksonville today before United States Magistrate Judge James R. Klindt at 1:00 p.m. (Courtroom 5-D).
Citizen of China Sentenced to 15 Months in Prison for Trafficking in Counterfeit Computer ChipsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that Daofu Zhang, 40, of Shenzen, China, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 15 months of imprisonment for conspiring to sell counterfeits of sophisticated integrated circuits to a purchaser in the United States.
According to court documents and statements made in court, Zhang and his two co-conspirators each operated businesses in China that bought and sold electronic components, including integrated circuits (“ICs”). In the summer of 2015, Zhang’s co-conspirator, Xianfeng Zuo asked the other co-conspirator, Jiang Yan, to locate and purchase several advanced ICs made by Xilinx Corp., which had military applications, including radiation tolerance for uses in space. Yan then asked a U.S. individual to locate the Xilinx ICs and sell them to Yan. The U.S. individual explained that the ICs cannot be shipped outside the U.S. without an export license, but Yan still wished to make the purchase. When the U.S. individual expressed concern that the desired ICs would have to be stolen from military inventory, Yan proposed to supply the U.S. source with “fake” ICs that “look the same,” to replace the ones to be stolen from the military.
In November 2015, Zhang shipped from China to the U.S. individual, two packages containing a total of eight counterfeit ICs, each bearing a counterfeit Xilinx brand label. After further discussions between Yan and the U.S. individual, Yan, Zhang, and Zuo flew together from China to the U.S. in early December 2015 to complete the Xilinx ICs purchase. On December 10, 2015, the three conspirators drove to a location near Route 95 in Milford, Connecticut, where they planned to meet the U.S. individual, make payment, and take custody of the Xilinx ICs. Federal agents arrested all three at the meeting location.
Zhang has been detained since his arrest. On April 15, 2016, he pleaded guilty to one count of conspiracy to traffic in counterfeit goods.
As part of his sentence, Zhang was ordered to forfeit $63,000.
On March 7, 2016, Yan, 33, pleaded guilty to one count of conspiracy to traffic in counterfeit goods, and one count of attempt to export integrated circuits without the required export license. On March 16, 2016, Zuo, 38, pleaded guilty to one count of conspiracy to traffic in counterfeit goods. They await sentencing.
This matter was investigated by the Defense Criminal Investigative Service, the Department of Homeland Security, the Department of Commerce, the Federal Bureau of Investigation, and the Air Force Office of Special Investigations. The case is being prosecuted by Assistant U.S. Attorney Henry Kopel and U.S. Department of Justice Counterintelligence and Export Control Section Trial Attorney Casey Arrowood.
Chicago-Based Return Preparer Who Targeted City Employees in Fraudulent Tax Return Schemes Permanently Shut down by Federal CourtRead the Press Release
WASHINGTON — According to a civil complaint the United States filed in 2014, a Chicago-based tax return preparer prepared returns that falsely claimed that recipients of discrimination awards related to a class-action lawsuit could claim large deductions on their federal tax returns and that falsely inflated the amount of wages that city of Chicago employees claimed were withheld from their paychecks. Now a federal court has completely barred this tax return preparer from preparing tax returns for others.
VICTOR M. CROWN promoted two false and fraudulent schemes through which he claimed that his customers could obtain significant federal income tax refunds, the complaint alleged. In the first scheme, as set out in the complaint, Crown falsely inflated the amount of income tax that was withheld from his customers’ paychecks because the city of Chicago purportedly calculated an incorrect withholding amount. Taxpayers may not claim a withholding credit larger than the amount that was actually withheld from their wages. The second scheme is founded on the 1969 class-action lawsuit Shakman v. Democratic Organization of Cook County, et al., No. 69-cv-2145 (N.D. Ill.), according to the United States’ complaint. Shakman was a discrimination case against the city of Chicago that alleged that the city improperly used political patronage when hiring and promoting public officials. As part of an agreed Shakman settlement order, the city set up a $12 million fund to compensate claimants for violations of the federal district court’s orders. Claims were submitted to the court-appointed monitor, who was responsible for evaluating the claims and, if justified, assigning a monetary award amount. According to the United States’ complaint against Crown, Crown asserted that his customers who were Shakman award recipients were entitled to claim net operating loss deductions for the difference between their claim and the amount they actually received in their award. The federal tax law does not permit a deduction in the amount of a denied discrimination claim.
In explaining its reasons for enjoining Crown, the court noted that the scope of Crown’s misconduct involved “at least 2,900 fraudulent tax returns,” as well as his “failure to accept responsibility and cease his operations.” The court’s injunction order forbids Crown from preparing tax returns for others and from making false statements about securing any tax benefit by virtue of receiving or not receiving an award in the Shakman litigation. It also requires Crown to give the United States a list of all his tax-preparation customers since 2010.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. The IRS has some tips on its website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Chicago-Based Return Preparer Who Targeted City Employees in Fraudulent Tax Return Schemes Permanently Shut Down by Federal CourtRead the Press Release
According to a civil complaint the United States filed in 2014, a Chicago-based tax return preparer prepared returns that falsely claimed that recipients of discrimination awards related to a class-action lawsuit could claim large deductions on their federal tax returns and that falsely inflated the amount of wages that city of Chicago employees claimed were withheld from their paychecks. Now a federal court has completely barred this tax return preparer from preparing tax returns for others.
Victor M. Crown promoted two false and fraudulent schemes through which he claimed that his customers could obtain significant federal income tax refunds, the complaint alleged. In the first scheme, as set out in the complaint, Crown falsely inflated the amount of income tax that was withheld from his customers’ paychecks because the city of Chicago purportedly calculated an incorrect withholding amount. Taxpayers may not claim a withholding credit larger than the amount that was actually withheld from their wages. The second scheme is founded on the 1969 class-action lawsuit Shakman v. Democratic Organization of Cook County, et al., No. 69-cv-2145 (N.D. Ill.), according to the United States’ complaint. Shakman was a discrimination case against the city of Chicago that alleged that the city improperly used political patronage when hiring and promoting public officials. As part of an agreed Shakman settlement order, the city set up a $12 million fund to compensate claimants for violations of the federal district court’s orders. Claims were submitted to the court-appointed monitor, who was responsible for evaluating the claims and, if justified, assigning a monetary award amount. According to the United States’ complaint against Crown, Crown asserted that his customers who were Shakman award recipients were entitled to claim net operating loss deductions for the difference between their claim and the amount they actually received in their award. The federal tax law does not permit a deduction in the amount of a denied discrimination claim.
In explaining its reasons for enjoining Crown, the court noted that the scope of Crown’s misconduct involved “at least 2,900 fraudulent tax returns,” as well as his “failure to accept responsibility and cease his operations.” The court’s injunction order forbids Crown from preparing tax returns for others and from making false statements about securing any tax benefit by virtue of receiving or not receiving an award in the Shakman litigation. It also requires Crown to give the United States a list of all his tax-preparation customers since 2010.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. The IRS has some tips on its website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Charlotte Man Sentenced to More Than Eight Years in Prison on Possession of Child Pornography ChargesRead the Press Release
CHARLOTTE, N.C. B Brandon Daniel Enright, 29, of Charlotte, was sentenced today to 97 months in prison for possession of child pornography, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad, Jr. presided over today’s hearing, and ordered Enright also to serve ten years of supervised release and to register as a sex offender.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department join U.S. Attorney Rose in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, on or about October 20, 2013, Enright shared child pornography online with an undercover agent using a peer-2-peer network. During a subsequent search of Enright’s residence in Charlotte, law enforcement seized a computer and two external hard drives. Forensic analyses of those devices revealed that Enright possessed 251 videos of child pornography, depicting prepubescent minors engaging in sexual acts.
Enright pleaded guilty in September 2015 to one count of possession of child pornography. He is currently in 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 FBI and CMPD for their investigation of this case. Assistant U.S. Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children.By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims.For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Celebrity Manager Charged with Wire Fraud, Money Laundering Related to OXYwater CaseRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Kevin R. Foster, 40, of Montclair, N.J. with wire fraud, money laundering and conspiracy to commit money laundering in an indictment returned in Columbus.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, announced the indictment returned today.
This case stems from the prior prosecution of Thomas E. Jackson and Preston J. Harrison, who raised approximately $9 million from investors under false pretenses to start and market the sports beverage “OXYwater.” The two were convicted by a jury of multiple wire fraud, money laundering, and tax fraud charges in March 2015.
This indictment alleges that Foster, the principal of his management/accounting firm, Foster & Firm, Inc., and who served as business manager for Shaffer Smith (“Ne-Yo”), induced Smith to invest $2 million into OXYwater under false representations. Foster served as an officer or controller of Imperial Integrative Health Research & Development, LLC in Westerville, Ohio with Jackson and Harrison. Foster did not disclose to Smith that he served as a controller for the company or that he would earn commission based on investments.
Unbeknownst to Smith, Foster allegedly invested an additional $1.5 million of Smith’s money into the product without his consent and fraudulently took out $1.4 million in lines of credit under Smith’s name by forging his signature. It is alleged that Foster received approximately $800,000 in finder’s fees based on Smith’s investments into OXYwater.
Foster was charged with three counts of wire fraud, one count of conspiracy to commit money laundering and three counts of money laundering. Wire fraud is punishable by up to 20 years in prison. Money laundering and conspiracy to commit money laundering are each crimes punishable by up to 10 years in prison.
Acting U.S. Attorney Glassman commended the investigation of this case by the IRS Criminal Investigation and FBI, and Assistant United States Attorney Jessica H. Kim, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Bandon High School Education Assistant Indicted for Producing and Distributing Child PornographyRead the Press Release
MEDFORD, Ore. – Sean Jeffrey Haga, 31 of Bandon, Oregon, was indicted by a federal grand jury and charged with two counts of sexual exploitation of children, one count of transportation of child pornography, and a forfeiture allegation. If convicted of sexual exploitation of children, the maximum penalty is 30 years in prison and a 15-year mandatory minimum. Transportation of child pornography carries a maximum sentence of 20 years in prison and a five-year mandatory minimum sentence.
Haga is employed as an Educational Assistant at Bandon High School. He also works as Bandon High School’s track coach and Bandon Junior High School’s Basketball coach. The defendant is scheduled to be in Federal Court for an initial appearance on the charges on Monday, July 11, 2016.
An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty.
The case is being investigated by the FBI and Assistant U.S. Attorney Judith Harper is handling the prosecution of this case.
Army Sergeant Pleads Guilty to Conspiracy in Afghanistan Bribery SchemeRead the Press Release
Fairbanks, Alaska – A Fort Wainwright Army sergeant pleaded guilty today to conspiracy to receive bribes and defraud the United States in connection with a scheme to steal fuel at a forward operating base (FOB) in Afghanistan.
U.S. Attorney Karen L. Loeffler of the District of Alaska, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Marlin L. Ritzman of the FBI’s Anchorage, Alaska, Division and Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko made the announcement.
Sheldon J. Morgan, 36, pleaded guilty in Fairbanks, Alaska, before U.S. District Judge Ralph R. Beistline to a one-count information charging him with conspiracy to receive bribes and defraud the United States. Sentencing is scheduled for Oct. 21, 2016.
According to admissions made as part of this plea agreement, from May 2010 until May 2011, Morgan, then a specialist in the U.S. Army, was deployed at FOB Fenty, near Jalalabad, Afghanistan. FOB Fenty served as a hub for distribution of fuel to nearby military bases. Morgan’s duties included assisting in overseeing the distribution of fuel to the bases.
Morgan also admitted that on two separate occasions in December 2010, he arranged for a translator employed by an Afghan trucking company to steal 5,000 gallons of fuel. The translator promised Morgan $5,000 per truckload and wired the money to an account outside of the United States that Morgan had his wife open in her name. Morgan admitted that he and his wife used the money for their personal benefit. The conspiracy caused approximately $37,300 in loss to the U.S. government.
This is the eighth guilty plea for similar fuel theft/bribery schemes at FOB Fenty for U.S. military members and their associates who were assigned to the base between June 2009 and April 2012.
The FBI and SIGAR investigated the case. Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen Cooper of the District of Alaska are prosecuting the case.
Army Sergeant Pleads Guilty to Conspiracy in Afghanistan Bribery SchemeRead the Press Release
A Fort Wainwright Army sergeant pleaded guilty today to conspiracy to receive bribes and defraud the United States in connection with a scheme to steal fuel at a forward operating base (FOB) in Afghanistan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Karen L. Loeffler of the District of Alaska, Special Agent in Charge Marlin L. Ritzman of the FBI’s Anchorage, Alaska, Division and Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko made the announcement.
Sheldon J. Morgan, 36, pleaded guilty in Fairbanks, Alaska, before U.S. District Judge Ralph R. Beistline of the District of Alaska to a one-count information charging him with conspiracy to receive bribes and defraud the United States. Sentencing is scheduled for Oct. 21, 2016.
According to admissions made as part of this plea agreement, from May 2010 until May 2011, Morgan, then a specialist in the U.S. Army, was deployed at FOB Fenty, near Jalalabad, Afghanistan. FOB Fenty served as a hub for distribution of fuel to nearby military bases. Morgan’s duties included assisting in overseeing the distribution of fuel to the bases, he admitted.
Morgan also admitted that on two separate occasions in December 2010, he arranged for a translator employed by an Afghan trucking company to steal 5,000 gallons of fuel. The translator promised Morgan $5,000 per truckload and wired the money to an account outside of the United States that Morgan had his wife open in her name, according to the plea agreement. Morgan admitted that he and his wife used the money for their personal benefit. The conspiracy caused approximately $37,300 in loss to the U.S. government.
This is the eighth guilty plea for similar fuel theft/bribery schemes at FOB Fenty for U.S. military members and their associates who were assigned to the base between June 2009 and April 2012.
The FBI and SIGAR investigated the case. Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen Cooper of the District of Alaska are prosecuting the case.
Arkansas man sentenced to 60 months in prison for conspiracy to cash counterfeit checks in four statesRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced that an Arkansas man was sentenced Tuesday to 60 months in prison for conspiring with several women to conduct a counterfeit check cashing scheme.
Dion Paul Barnes, 38, of Little Rock, Ark., was sentenced by U.S. District Judge Robert G. James on one count of conspiracy to make, utter or possess counterfeit securities. He was also sentenced to three years of supervised release and ordered to pay $24,153.46 restitution. According to the February 23, 2016 guilty plea, from January 2015 to June 2015, Barnes conspired with multiple individuals including April M. Augustine, 35, of Monroe, and Barbara J. Island, 32, of Bastrop, La., to make and cash counterfeit checks. A Louisiana state trooper conducted a traffic stop near Sterlington, La., on June 10, 2016 on a Chevrolet Camaro the defendants were traveling in. A search was conducted, and 48 counterfeit checks, a large stack of blank check stock paper, two laptop computers, three computer tablets, six cell phones and one print-scan-copy machine were found. Troopers also found a DVD containing template software that could be used to produce fake identification cards. The car they were riding in was also reported stolen. Upon further investigation, Dion Barnes was found to be the leader of a scheme to cash counterfeit checks in Arkansas, Mississippi, Missouri and Louisiana. Barnes is solely responsible for the creation of $39,712.22 worth of counterfeit checks. Barnes, Augustine and Island are responsible for cashing a total of $2,274.73 worth of counterfeit checks.
Island was sentenced on April 18, 2016, to 10 months in prison and three years of supervised release, and Augustine was sentenced on June 20, 2016, to five years of probation for the conspiracy count. They were also ordered to pay $2,274.73 in restitution along with Barnes.
The U.S. Secret Service and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney Cytheria D. Jernigan prosecuted the case.
Albuquerque Man Pleads Guilty to Failing to Update his Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Willie Lewis Griffin, 44, of Albuquerque, N.M., pled guilty this morning in federal court to violating the Sex Offender Registration and Notification Act (SORNA). The guilty plea was announced by U.S. Attorney Damon P. Martinez and U.S. Marshal Conrad E. Candelaria.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Griffin was arrested on April 28, 2016, on a criminal complaint charging him with violating SORNA by failing to update his sex offender registration. On May 24, 2016, Griffin was indicted on that same charge. According to the indictment, Griffin failed to update his registration between Jan. 23, 2016 and May 1, 2016, in Bernalillo County, N.M.
According to the criminal complaint, Griffin was convicted in Feb. 1993, of breaking and entering, three counts of criminal sexual conduct with a weapon, armed robbery and assault with a dangerous weapon, and was sentenced to not more than 20 years in federal prison. On March 31, 2012, Griffin registered as a sex offender in the state of Michigan and agreed to notify the jurisdiction to which he moved if he relocated outside of the jurisdiction. According to the complaint, the U.S. Marshals Service was notified that Griffin had been residing in Albuquerque since Feb. 2016, and was not registered as a sex offender in the jurisdiction.
During today’s plea hearing, Griffin pled guilty to the indictment and admitted that from Jan. 23, 2016 through May 1, 2016, he failed to update his sex offender registration in Bernalillo County. At sentencing, Griffin faces a statutory maximum penalty of ten years in federal prison. Griffin will be required to register as a sex offender after completing his prison sentence. A sentencing hearing has yet to be scheduled.
This case was investigated by the U.S. Marshals Service and is being prosecuted by Assistant U.S. Attorney Niki Tapia-Brito.
18th Street Gang Member Sentenced for Prostituting 15-Year-Old GirlRead the Press Release
ALEXANDRIA, Va. –Derek Leon Mantilla, 21, an 18th Street Gang member formerly of Fairfax, was sentenced today to 144 months in prison for sex trafficking of a minor. Mantilla was also sentenced to 20 years of supervised release and ordered to register as a sex offender upon release from prison.
According to the statement of facts filed with the plea agreement, Mantilla admitted that from at least November 2014 through February 2015, that he, Ismael Antonio Mendez and Caitlyn Ann Smith, recruited a 15 year-old girl to engage in commercial sex acts to pay off a debt that was owed to Mantilla by Mendez. The adults taught the girl how to prostitute, took photos of her to use in advertisements, and created advertisements for commercial sex that were posted on the Internet. The three adults knew the girl was a minor and instructed her to lie about her age to customers. Over a three month period, the adults traveled with the girl through various states, including Virginia, for the purposes of advertising and engaging the girl in commercial sex. During that period, the girl worked seven days a week and saw an average of 10 to 12 customers a night. Once the girl had earned enough to pay off the debt, the Mantilla directed her to leave the adults, and she did. Co-defendants Ismael Antonio Mendez and Caitlyn Ann Smith previously pleaded guilty in the case.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Colonel Edwin C. Roessler Jr., Chief of the Fairfax County Police Department, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Whitney Dougherty Russell and Special Assistant U.S. Attorney Lauren Britsch prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information please visit Project Safe Childhood.
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-cr-91.
Thursday 7 July 2016
York Man Indicted for Federal Drug Trafficking and Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney=s Office for the Middle District of Pennsylvania announced today that Quan Leroy Gross, 44, of York, Pennsylvania was indicted yesterday by a federal grand jury in Harrisburg, Pennsylvania. The indictment charged Gross with possession of a firearm by a convicted felon, possession of a firearm in furtherance of drug trafficking, and possession with intent to distribute a controlled substance, that being crack cocaine.
According to United States Attorney Peter Smith, the charges against Gross are a result of allegations that he was engaged in drug trafficking activities in York, Pennsylvania in June 2015. In addition, Gross is charged with possessing a firearm in furtherance of drug trafficking at the time of his arrest.
Gross was detained today following his detention hearing before United States Magistrate Chief Judge Martin C. Carlson. A trial date has been scheduled for September 12, 2016 before United States District Court Judge William W. Caldwell.
Gross faces a mandatory minimum of 15 years imprisonment and a statutory maximum of life imprisonment.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg Police Bureau. This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is lifetime imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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West Chester Man Pleads Guilty to Plot to Attack U.S. Government OfficersRead the Press Release
CINCINNATI – Officials announced today the details of a national security case involving a plot to attack a U.S. military official and a local police station.
Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Field Division, West Chester Police Chief Joel Herzog, Ohio State Highway Patrol Superintendent Colonel Paul A. Pride and Cincinnati Police Chief Eliot Isaac announced the unsealing of a bill of information and plea agreement related to Munir Abdulkader, 21, of West Chester, Ohio.
Under the plea agreement, Abdulkader has pleaded guilty to attempting to kill officers and employees of the United States, material support of a foreign terrorist organization and possession of a firearm in furtherance of a crime of violence. Abdulkader was charged for his plot to attack and kill an employee of a U.S. military installation and then attack a local police station, all in the Southern District of Ohio.
According to the statement of facts admitted by Adbulkader at the plea hearing, beginning in at least July 2014 and continuing into 2015, Abdulkader expressed his support for the Islamic State in Iraq and the Levant (“ISIL”) on Twitter accounts. From approximately March 2015 to mid-April 2015, Abdulkader began speaking with a Confidential Human Source (CHS) about his desire and intention to travel to Syria in order to join ISIL as a fighter.
During that same time, Abdulkader made plans and preparations to travel to Syria to join ISIL as a fighter. Namely, he secured a passport, saved money for the trip and researched the logistical details of traveling to Syria and joining ISIL. In late April, though, Abdulkader expressed concerns about the ability to travel and postponed his original departure date of May 2, 2015.
During May 2015, Abdulkader was in electronic communication with one or more individuals located overseas who he understood were members of ISIL. One of those individuals was a member of ISIL identified as Junaid Hussein. Through their communications, Junaid Hussein directed and encouraged Abdulkader to plan and execute a violent attack within the United States.
Abdulkader communicated with Junaid Hussein and the CHS about a plan to kill an identified military employee on account of his position with the United States government. The plan included abducting the employee at the employee’s home and filming the execution of the employee.
After killing the employee, Abdulkader planned to execute a violent attack on a police station in the Southern District of Ohio using firearms and Molotov cocktails.
In preparation for the attacks, Abdulkader took the following actions:
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Asked the CHS to purchase a vest for holding ammunition.
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On or about May 18, 2015, traveled to a police station in the Southern District of Ohio and conducted surveillance of the police station.
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On or about May 20, 2015, went to a shooting range, learned how to operate certain firearms and practiced shooting the firearms. Abdulkader also negotiated the purchase of a firearm, namely an AK-47 assault rifle, for $350.
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On May 21, 2015, provided funds for the purchase of an AK-47 assault rifle and took possession of the firearm.
Adbulkader was arrested on May 21, 2015 by the FBI Joint Terrorism Task Force (JTTF), after a controlled purchase and possession of the AK-47 assault rifle.
The defendant was charged by criminal complaint on May 22, 2015 and a bill of information was filed on March 2, 2016. Abdulkader pleaded guilty to the three charges in the information on March 24, 2016, before U.S. District Judge Michael R. Barrett. The case was under seal until today.
Attempted murder of government employees and officials is a crime punishable by up to 20 years in prison. Material support of a foreign terrorist organization is a crime punishable by 15 years in prison. Possession of a firearm in furtherance of an attempted crime of violence is a crime punishable by a mandatory sentence of five years in prison.
Assistant Attorney General Carlin and Acting U.S. Attorney Glassman commended the investigation of this case by the JTTF. The case is being prosecuted by Assistant U.S. Attorney Tim Mangan and Michael Dittoe of the Justice Department National Security Division Counterterrorism Section.
The JTTF is made up of officers and agents from the Cincinnati Police Department, Colerain Police Department, Dayton Police Department, Ohio State Highway Patrol, University of Cincinnati Police Department, United States Air Force OSI, FBI, United States Immigrations and Customs Enforcement, United States Internal Revenue Service, United States Secret Service, United States Postal Inspection Service, West Chester Police Department and Xenia Police Department.
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Vermont Man Faces Heroin ChargesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, Phillip Wilson, age 36, of Burlington, Vermont, was arrested on July 6, 2016 and charged via federal criminal complaint with distributing heroin on June 23, 2016. Wilson made his initial appearance in federal court on July 6, 2016 before U.S. Magistrate Judge John M. Conroy. At a detention hearing on July 7, 2016, the Court ordered Wilson detained pending trial.
According to court records, the Vermont State Police Drug Task Force conducted a lengthy investigation into potential heroin distribution by Wilson. On July 6, 2016—the same day Wilson was arrested—law enforcement executed federal search warrants at Wilson’s residence in Burlington and at a second residence associated with Wilson in Essex, Vermont.
If convicted on the current charge, Wilson would face a statutory maximum term of 20 years in prison. His actual sentence would be determined with reference to the federal sentencing guidelines. United States Attorney Eric Miller emphasized that the charge in the criminal complaint is only an accusation and Wilson is presumed innocent unless and until he is proven guilty.
United States Attorney Miller commended the efforts of the agencies involved in this investigation, which include the Vermont State Police Drug Task Force, the Drug Enforcement Administration, the Bureau of Alcohol Tobacco Firearms and Explosives, and the Burlington Police Department.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Wilson is represented by defense attorney Mark Oettinger.
United States Returns $1.5 Million in Forfeited Proceeds from Sale of Property Purchased with Alleged Bribes Paid to Family of Former President of TaiwanRead the Press Release
The Department of Justice announced today that it is returning approximately $1.5 million to Taiwan, the proceeds of the sale of a forfeited New York condominium and a Virginia residence that the United States alleged in its complaint were purchased with the proceeds of bribes paid to the family of Taiwan’s former President Chen Shui-Bian.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) made the announcement.
According to the civil forfeiture complaints filed in this case, Yuanta Securities Co. Ltd. paid a bribe of 200 million New Taiwan dollars (equivalent to approximately $6 million USD) to former First Lady Wu Shu-Jen in 2004, during former President Chen Shui-Bian’s administration. The bribe was allegedly paid to ensure that the president would use his power so that the Taiwan authorities would not oppose Yuanta’s bid to acquire a financial holding company. The former first family used Hong Kong and Swiss bank accounts, shell companies and a St. Kitts and Nevis trust to transfer the bribe proceeds needed to purchase the properties in Keswick, Virginia, and New York. The properties were owned by the former first family of Taiwan through two limited liability companies. In October 2012, U.S. District Courts in Virginia and in New York entered final forfeiture judgments against these two properties without opposition by the record owners. The United States then sold these two properties and obtained approximately $1.5 million in proceeds, which is being returned to Taiwan.
“The Kleptocracy Initiative was established to prevent corrupt leaders from using the United States as a safe haven for their ill-gotten gains,” said Assistant Attorney General Caldwell. “We are committed to rooting out foreign official corruption and preventing corrupt officials from enjoying their spoils in the United States. We appreciate the cooperation of Taiwan law enforcement in this matter.”
“After many years of collaborative work, we are happy to return these funds to their rightful owners,” said Executive Associate Director Edge. “This is part of an ongoing effort by HSI to identify and seize illegal assets in the United States obtained by corrupt foreign leaders who abuse our financial systems in order to conceal the illicit proceeds of their crimes. HSI special agents in our 62 offices in 43 countries will continue to work with our domestic offices and international law enforcement partners to hold these individuals accountable.”
ICE-HSI investigated the case, with assistance from the agency’s attaché in Hong Kong, HSI Miami's Foreign Corruption Investigation Group and the Taiwan Supreme Prosecutors Office’s Special Investigations Division. Trial Attorney Jennifer Wallis and former Deputy Chief Linda Samuel of the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS) prosecuted the case. The Criminal Division’s Office of International Affairs also provided valuable assistance.
The Justice Department’s Kleptocracy Asset Recovery Initiative is carried out by a dedicated team of prosecutors in AFMLS, working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, return those proceeds to benefit those harmed. Individuals with information about possible proceeds of foreign corruption located in or laundered through institutions in the United States should contact federal law enforcement or send an email to [email protected].
HSI’s Foreign Corruption Investigations Group targets corrupt foreign officials around the world who attempt to utilize U.S. financial institutions to launder illicit funds. The group conducts investigations into the laundering of proceeds emanating from foreign public corruption, bribery or embezzlement. The objective is to prevent foreign derived ill-gotten gains from entering the U.S. financial infrastructure, to seize identified assets in the United States and repatriate these funds on behalf of those affected.
U.S. Attorney Targets Human Trafficking at Conference in Manhattan, Kan.Read the Press Release
MANHATTAN, KAN. – Almost 200 law enforcement officers and victim service providers from across Kansas will be in Manhattan Tuesday and Wednesday to team up in the fight against human trafficking, Acting U.S. Attorney Tom Beall said today.
“Human trafficking is the modern form of slavery,” Beall said. “It’s here now. It’s happening in communities across Kansas. It’s everybody’s problem.”
Beall is joining with Riley County Attorney Barry Wilkerson, Kansas Attorney General Derek Schmidt and the Kansas Law Enforcement Training Center to sponsor the conference, which will run from 8 a.m. to 4 p.m. July 12, and 8 a.m. to noon July 13 at the Manhattan Conference Center, 410 S. 3rd in Manhattan.
Craig Hill of the National Center for Missing and Exploited Children will lead off with a presentation on domestic child sex trafficking. Sedgwick County District Attorney Marc Bennett will talk about how law enforcement officers and prosecutors work with reluctant victims and witnesses. Tina Peck of Via Christ Health will discuss how Via Christi’s hospitals in Wichita work to identify trafficking victims who seek emergency treatment and offer them help. Assistant U.S. Attorney Jason Hart will describe how federal prosecutors are working with the Wichita Police Department to target businesses that are fronts for human trafficking.
Other speakers will include Michael Geiger, a retired detective sergeant from Portland; Chris Baughman, author of “Off the Streets,” Anna Brewer, a retired FBI agent; Deb Kluttz, executive director of The Homestead in Manhattan; Kent Bauman of the Wichita Police Department’s Exploited and Missing Children Unit, Dorothy Sucky Halley and Jeff Wagaman of the Kansas Attorney General’s Office; Katie Cronin of Stinson Leonard Street; and Vivian VanVleet of the U.S. Attorney’s Office.
Registration is required, including a $50 fee. More information is available on the Web at http://2016htconference.weebly.com/
Two Former Regions Bank Employees Indicted in Bribery and Wire Fraud SchemeRead the Press Release
BIRMINGHAM – A federal grand jury last week indicted two former Regions Bank employees for conspiracy in a $5 million bribery and wire fraud scheme, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
A 39-count indictment filed in U.S. District Court charges RICHARD ALAN HENDERSON, 57, of Hoover, and PHILIP HENRY COOPER, 66, of Birmingham, with conspiracy, bank bribery, wire fraud affecting a financial institution and money laundering.
Henderson and Cooper were Regions’ employees, serving as officers of Regions Equipment Financing Corp., a part of the bank that offered business customers various financing tools, including equipment financing and lease options. Henderson began as senior vice president and finance manager of REFCO and was promoted in April 2012 to its chief administrative officer. Cooper worked as senior vice president and asset manager of REFCO.
According to the indictment, Henderson and Cooper recruited a third man, Jesse Stewart Ellis, who has agreed to plead guilty to charges arising from this scheme, to establish a company that would enter an agreement with REFCO to provide residual value insurance, a type of insurance designed to manage asset value risk. Ellis had no experience providing residual value insurance. The defendants directed REFCO’s residual value insurance business to Ellis’ new company, and he, in return, split the proceeds of the business with Henderson and Cooper, according to the charges. The defendants concealed from Regions that they were receiving money as a result of directing REFCO’s residual value insurance business to the company Ellis established.
Between Sept. 2010 and Nov. 2015, REFCO paid Ellis’ company, Residual Assurance Inc., about $5.1 million, most often through interstate wire transfer into the new company’s account at Wells Fargo Bank, the indictment charges. Henderson received about $1.8 million as a result of the scheme and Cooper received about $1.5 million, according to the indictment. The indictment also seeks forfeiture from the defendants in those amounts.
The indictment includes 29 money laundering counts against Henderson and Cooper. The defendants moved the money generated by the scheme among several bank accounts to conceal the ownership and control of the proceeds of the scheme.
The maximum penalty for conspiracy is five years in prison and a $250,000 fine. The maximum penalty for bank bribery is 30 years in prison and a fine of $1 million or three times the value of what was solicited or accepted, whichever is greater. The maximum penalty for wire fraud affecting a financial institution is 30 years in prison and a $1 million fine, and for money laundering and money laundering conspiracy, the maximum penalty is 20 years in prison and a fine of $500,000 or twice the value of the property involved in the transaction, whichever is greater.
The FBI investigated the case, which Assistant U.S. Attorneys George A. Martin Jr. and Henry B. Cornelius are prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Thirty-Pound Methamphetamine Drug Bust in Tulare County Results in Federal Conspiracy Charges Against Five IndividualsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against five individuals for conspiring to distribute and possess with the intent to distribute methamphetamine, Acting United States Attorney Phillip A. Talbert announced.
Alfonso Rios-Ayon, 43, of Pixley; Sergio Ortega-Maldonado, 45, a Mexican national; Daniel Rios, 32, of Riverside; Ceferino Arjona-Elston, 32, a Mexican National; and Ezequiel Perez-Martinez, 31, a Mexican national, are charged with conspiracy to distribute and possess methamphetamine with the intent to distribute.
According to court documents, on June 29, 2016, law enforcement agents conducted a controlled purchase of approximately 30 pounds of crystal methamphetamine at a ranch in Pixley where Rios-Ayon lived. In the course of the operation agents arrested the all of the defendants except Ortega-Maldonado. Law enforcement officers also executed a federal search warrant at the residence and seized approximately 30 pounds of crystal methamphetamine, three firearms, multiple magazines and ammunition and approximately $12,000 in United States currency.
This case is the product of an investigation by the Drug Enforcement Administration, the Kern County Sheriff’s Office, the Tulare County Sheriff’s Office, the Southern Tri-County Task Force of the Central Valley High Intensity Drug Trafficking Area (HIDTA), the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Department of Motor Vehicles Investigations, the Kern County Probation Department, and the California Highway Patrol. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
If convicted, Rios-Ayon, Ortega-Maldonado, and Rios face a maximum statutory penalty of life in prison and a $10 million fine. If convicted, Arjona-Elston and Perez‑Martinez face a maximum statutory penalty of 20 years and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Tahlequah and Checotah Men Plead Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that FREDERIC PETERSEN BECK JR., age 54, of Tahlequah, Oklahoma, and BRYAN STEVEN LAFAVOR, age 34, of Checotah, Oklahoma, pled guilty to Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(B).
The Informations allege that in the Eastern District of Oklahoma, the defendants did willfully and knowingly combine, conspire, confederate and agree with other persons, to possess with intent to distribute and to distribute 50 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The Investigation revealed that Cody McClendon, an Indian Brotherhood (IBH) gang member, currently an inmate with the Oklahoma Department of Corrections in McAlester, Oklahoma was utilizing a contraband cellular phone that he kept hidden on his person and inside his prison cell to facilitate the sale and distribution of methamphetamine. McClendon was doing this by using the cellular phone to communicate with co-conspirators via audio phone calls, text messages, and by communicating on the social media website Facebook. BECK and LAFAVOR were methamphetamine distributors for the organization.
The charges arose from a joint investigation by the Oklahoma Bureau of Narcotics, the Tahlequah Police Department, the Muskogee Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the Drug Enforcement Administration. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the pleas and ordered the completion of presentence investigation reports. The defendants will remain in the custody of the United States Marshals Service pending sentencing.
The statutory range of punishment is not less than 5 years and not more than 40 years imprisonment, up to a $5,000,000.00 fine or both.
Assistant United States Attorney Shannon Henson represented the United States.
South Bend Man Sentenced to 51 MonthsRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Orlandor Branch, 43, of South Bend, Indiana was sentenced before Judge Robert L. Miller, Jr., for felon in possession of a firearm.
Branch was sentenced to 51 months’ imprisonment and 2 years of supervised release.
According to documents filed in this case, on October 31, 2015 the South Bend Police Department was dispatched to a home for a domestic incident. Upon arrival, police saw Branch wearing a shoulder holster that contained a firearm. On March 23, 2016 Branch changed his plea to guilty admitting to possession of a firearm as a felon.
This case was prosecuted as a result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of South Bend, Indiana Police Department. This case was prosecuted by Assistant United States Attorney Frank E. Schaffer.
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Six Charged with Trafficking Heroin in South TampaRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of a twelve-count indictment charging Edward McKenzie (39, Tampa), George Perdigon, a/k/a “Lee” (48, Tampa), Gregory Phelps (61, Tampa), Michael Regan (40, Sun City Center), James Dunn, a/k/a “Wiggy” (34, New York City), and Jesse Greer, a/k/a “Alex” (40, Tampa) with distribution of heroin and/or conspiracy to traffic heroin. If convicted, each faces up to 40 years in federal prison. The indictment also notifies the defendants that the United States intends to forfeit the property located at 3608 West Oklahoma Avenue in Tampa, which the defendants allegedly used to facilitate and further the conspiracy.
According to the indictment, from August 2015 through April 2016, McKenzie, Perdigon, Phelps, Regan, Dunn, and Greer participated in a conspiracy to distribute heroin in and around South Tampa.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was jointly investigated by the Tampa Police Department and the Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorney Dan Baeza.
Seven Los Angeles Men Charged for Firebombing African-American ResidencesRead the Press Release
LOS ANGELES – Seven Los Angeles men were charged in a 10-count indictment unsealed today with participating in the 2014 firebombing of residences of African Americans living in the Boyle Heights section of Los Angeles. The defendants were also charged for their roles in a racketeering enterprise that used violence and intimidation to control the perceived territory of the Big Hazard street gang.
On June 22, 2016, a federal grand jury returned an indictment under seal charging the defendants, all of whom are members and associates of the Big Hazard or Hazard Grande (Hazard) street gang, with a variety of violations stemming from the racketeering enterprise and related to the alleged firebombing that occurred on May 12, 2014, which was intended to drive African Americans from the Ramona Gardens Housing Development (RGHD). The RGHD is a federally and city funded housing development that is occupied primarily by Hispanic residents and located in Boyle Heights.
Carlos Hernandez, aka Creeper and Rider, 31; Jose Saucedo, aka Lil’ Moe, 22; Francisco Farias, aka Bones, 25; Joseue Garibay, aka Malo, 23; Edwin Felix, aka Boogie, 23; Jonathan Portillo, aka Pelon, 21; and Joel Matthew Monarrez, aka Gallo, 21, were charged with conspiracy to violate civil rights; conspiracy to use fire and carry explosives to commit another federal felony; attempted arson of federal property; using fire and carrying explosives to commit another federal felony; aiding and abetting; violent crime in aid of racketeering and interference with housing rights. Hernandez and Farias were also charged with possessing, using, carrying a firearm during a crime of violence, and Felix was also charged with making a false statement to the FBI.
“The defendants used firebombs to drive the victims from their homes because of their race,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This is a hate crime. Such violence and intimidation have no place in our society.”
The Firebombing
The indictment alleges that, in early May, Hernandez led a Hazard meeting at a location in the gang’s territory near the RGHD which was attended by the other defendants. During the meeting, Hernandez allegedly told the group that they were going to use Molotov cocktails to firebomb residential units in the RGHD that were occupied by African-American families. According to the indictment, Hernandez allegedly told the defendants during the meeting that the purpose of the firebombing was to “get the n****** out of the neighborhood,” or words to that effect.
“Crimes targeting innocent people based on the color of their skin are among the most heinous crimes a community can suffer,” said U.S. Attorney Eileen M. Decker of the Central District of California. “In this case, the crime was particularly disturbing since the targets of the criminal conduct included children. As the indictment unsealed today demonstrates, criminals that fuel racial animosity will face severe consequences. All of our communities are made safer by removing these defendants, for whom violence and intimidation are tools of their trade, from the streets.”
On Mother’s Day, May 11, 2014, Hernandez instructed the other defendants to meet at a location in Hazard territory to prepare for the attack. At the meeting, Hernandez distributed materials to be used during the firebombings, including disguises, gloves and other materials, according to the indictment.
The indictment alleges that Hernandez instructed the other defendants to split into groups, break victims’ windows in order to make clean entries, then ignite the firebombs and throw them into the victims’ residences in order to maximize damage. The defendants also took precautions in order to avoid detection by law enforcement.
“This investigation resulted in one of the largest civil rights indictments in local history thanks to the tireless efforts put forth by agents working with detectives to build this case over the past two years," said Deirdre Fike, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "The FBI is committed to seeking justice for the victims whose homes were barbarically firebombed as they put their children to bed, or anyone whose Constitutionally-protected right to happiness is threatened based on the color of their skin.”
Evidence gathered by investigators indicates this attack was motivated by hatred stemming from racial bias. Most of the victims of the firebombing were African-American families who were at home with their children, many of whom were minors.
“Hate crimes and arson are among the most heinous offenses that affect our community,” said Fire Chief Ralph M. Terrazas of the Los Angeles Fire Department (LAFD). “The LAFD greatly appreciates the tireless and collaborative efforts of the U.S. Attorney, FBI, ATF, LAPD and our own arson investigators, all of which assisted in the apprehension of the individuals accused in this case. We are hopeful that the U.S. Attorney will achieve a successful prosecution.”
The Racketeering Conspiracy
According to the indictment, the defendants were members and associates of the Hazard street gang, a criminal organization whose members engaged in, among other things, robbery, extortion, witness intimidation, trafficking and conspiracy to traffic in controlled substances.
The indictment further alleges that Hazard gang members promote the reputation of the criminal enterprise among other Hispanic gangs in Southern California and inside of state and federal prisons by carrying out Hazard leaders’ orders against rival gang members and perceived enemies. Further, Hazard members maintain control and authority over its territory, often through threats, intimidation, civil rights crimes and other acts of violence, including murder.
Hazard members are known to retaliate against rival gang members who challenge Hazard’s authority or who fail to pay debts owed to Hazard members and associates. The indictment further alleges Hazard members expose and punish fellow Hazard members who violate the gang’s rules, as well as expose and punish potential witnesses to crimes by Hazard members and associates who are suspected of cooperating with law enforcement or disrespecting Hazard members. The indictment further alleges that Hazard members impose unwritten rules regarding the control of its territory, including that African-American residents reside in RGHD at the pleasure of the gang and that they face retaliation and/or expulsion from RGHD if they offend Hazard members.
“I am very proud of the partnerships between our agencies that enabled us to investigate and apprehend these violent offenders who preyed upon our community in a manner that will not be tolerated,” said Chief Charlie Beck of the Los Angeles Police Department (LAPD).
“In a civil society, we cannot accept violence fueled by hatred, especially violence that seeks to deprive the freedoms we expect everyone has the right to enjoy,” said Special Agent in Charge Eric D. Harden of the ATF. “These arrests will hopefully bring peace of mind to both the residents of Ramona Gardens and the city of Los Angeles, and demonstrate that law enforcement is united against hate.”
The indictment alleges that the defendants and others conspired to injure, oppress, threaten and intimidate African American residents in violation of their constitutional rights, including the right to occupy a dwelling free from injury, intimidation and interference based on race and color. The indictment alleges Hazard members would spray paint or “tag” gang monikers and symbols on businesses and residences, obtain and possess guns and other dangerous weapons in order to enforce the authority of the Hazard gang, intimidate rivals and residents and attack rivals and African Americans, among other things.
The defendants and others allegedly met to discuss ways to threaten, intimidate, and attack African Americans in their residences, on the streets and elsewhere, to deter them from living in Ramona Gardens because of their race and color. Saucedo would confront African-American residents, including mixed-race children, and individually or collectively threaten them by telling them they were not welcome in Hazard gang territory, namely, RGHD, and that they risked harm if they remained as residents.
If convicted of all counts listed in the indictment, Saucedo, Garibay, Portillo and Monarrez face a maximum sentence of 110 years in prison. Hernandez and Farias face a maximum sentence of life in prison, and Felix faces a maximum penalty of 115 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
The investigation was conducted by agents and detectives with the LAPD’s Hollenbeck Division; the LAFD; the ATF; and the FBI Los Angeles Division’s Civil Rights Squad. The case is being prosecuted by Assistant U.S. Attorneys Mack E. Jenkins and Douglas M. Miller of the Central District of California and Trial Attorneys Patricia Sumner and Julia Gegenheimer of the Civil Rights Division’s Criminal Section.
Seven Los Angeles Men Charged for Firebombing African-American ResidencesRead the Press Release
Seven Los Angeles men were charged in a 10-count indictment unsealed today with participating in the 2014 firebombing of residences of African Americans living in the Boyle Heights section of Los Angeles. The defendants were also charged for their roles in a racketeering enterprise that used violence and intimidation to control the perceived territory of the Big Hazard street gang.
On June 22, 2016, a federal grand jury returned an indictment under seal charging the defendants, all of whom are members and associates of the Big Hazard or Hazard Grande (Hazard) street gang, with a variety of violations stemming from the racketeering enterprise and related to the alleged firebombing that occurred on May 12, 2014, which was intended to drive African Americans from the Ramona Gardens Housing Development (RGHD). The RGHD is a federally and city funded housing development that is occupied primarily by Hispanic residents and located in Boyle Heights.
Carlos Hernandez, aka Creeper and Rider, 31; Jose Saucedo, aka Lil’ Moe, 22; Francisco Farias, aka Bones, 25; Joseue Garibay, aka Malo, 23; Edwin Felix, aka Boogie, 23; Jonathan Portillo, aka Pelon, 21; and Joel Matthew Monarrez, aka Gallo, 21, were charged with conspiracy to violate civil rights; conspiracy to use fire and carry explosives to commit another federal felony; attempted arson of federal property; using fire and carrying explosives to commit another federal felony; aiding and abetting; violent crime in aid of racketeering and interference with housing rights. Hernandez and Farias were also charged with possessing, using, carrying a firearm during a crime of violence, and Felix was also charged with making a false statement to the FBI.
“The defendants used firebombs to drive the victims from their homes because of their race,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This is a hate crime. Such violence and intimidation have no place in our society.”
The Firebombing
The indictment alleges that, in early May, Hernandez led a Hazard meeting at a location in the gang’s territory near the RGHD which was attended by the other defendants. During the meeting, Hernandez allegedly told the group that they were going to use Molotov cocktails to firebomb residential units in the RGHD that were occupied by African-American families. According to the indictment, Hernandez allegedly told the defendants during the meeting that the purpose of the firebombing was to “get the n****** out of the neighborhood,” or words to that effect.
“Crimes targeting innocent people based on the color of their skin are among the most heinous crimes a community can suffer,” said U.S. Attorney Eileen M. Decker of the Central District of California. “In this case, the crime was particularly disturbing since the targets of the criminal conduct included children. As the indictment unsealed today demonstrates, criminals that fuel racial animosity will face severe consequences. All of our communities are made safer by removing these defendants, for whom violence and intimidation are tools of their trade, from the streets.”
On Mother’s Day, May 11, 2014, Hernandez instructed the other defendants to meet at a location in Hazard territory to prepare for the attack. At the meeting, Hernandez distributed materials to be used during the firebombings, including disguises, gloves and other materials, according to the indictment.
The indictment alleges that Hernandez instructed the other defendants to split into groups, break victims’ windows in order to make clean entries, then ignite the firebombs and throw them into the victims’ residences in order to maximize damage. The defendants also took precautions in order to avoid detection by law enforcement.
“This investigation resulted in one of the largest civil rights indictments in local history thanks to the tireless efforts put forth by agents working with detectives to build this case over the past two years,” said Assistant Director in Charge Deirdre Fike of the FBI’s Los Angeles Division. “The FBI is committed to seeking justice for the victims whose homes were barbarically firebombed as they put their children to bed, or anyone whose Constitutionally-protected right to happiness is threatened based on the color of their skin.”
Evidence gathered by investigators indicates this attack was motivated by hatred stemming from racial bias. Most of the victims of the firebombing were African-American families who were at home with their children, many of whom were minors.
“Hate crimes and arson are among the most heinous offenses that affect our community,” said Fire Chief Ralph M. Terrazas of the Los Angeles Fire Department (LAFD). “The LAFD greatly appreciates the tireless and collaborative efforts of the U.S. Attorney, FBI, ATF, LAPD and our own arson investigators, all of which assisted in the apprehension of the individuals accused in this case. We are hopeful that the U.S. Attorney will achieve a successful prosecution.”
The Racketeering Conspiracy
According to the indictment, the defendants were members and associates of the Hazard street gang, a criminal organization whose members engaged in, among other things, robbery, extortion, witness intimidation, trafficking and conspiracy to traffic in controlled substances.
The indictment further alleges that Hazard gang members promote the reputation of the criminal enterprise among other Hispanic gangs in Southern California and inside of state and federal prisons by carrying out Hazard leaders’ orders against rival gang members and perceived enemies. Further, Hazard members maintain control and authority over its territory, often through threats, intimidation, civil rights crimes and other acts of violence, including murder.
Hazard members are known to retaliate against rival gang members who challenge Hazard’s authority or who fail to pay debts owed to Hazard members and associates. The indictment further alleges Hazard members expose and punish fellow Hazard members who violate the gang’s rules, as well as expose and punish potential witnesses to crimes by Hazard members and associates who are suspected of cooperating with law enforcement or disrespecting Hazard members. The indictment further alleges that Hazard members impose unwritten rules regarding the control of its territory, including that African-American residents reside in RGHD at the pleasure of the gang and that they face retaliation and/or expulsion from RGHD if they offend Hazard members.
“I am very proud of the partnerships between our agencies that enabled us to investigate and apprehend these violent offenders who preyed upon our community in a manner that will not be tolerated,” said Chief Charlie Beck of the Los Angeles Police Department (LAPD).
“In a civil society, we cannot accept violence fueled by hatred, especially violence that seeks to deprive the freedoms we expect everyone has the right to enjoy,” said Special Agent in Charge Eric D. Harden of the ATF. “These arrests will hopefully bring peace of mind to both the residents of Ramona Gardens and the city of Los Angeles, and demonstrate that law enforcement is united against hate.”
The indictment alleges that the defendants and others conspired to injure, oppress, threaten and intimidate African American residents in violation of their constitutional rights, including the right to occupy a dwelling free from injury, intimidation and interference based on race and color. The indictment alleges Hazard members would spray paint or “tag” gang monikers and symbols on businesses and residences, obtain and possess guns and other dangerous weapons in order to enforce the authority of the Hazard gang, intimidate rivals and residents and attack rivals and African Americans, among other things.
The defendants and others allegedly met to discuss ways to threaten, intimidate, and attack African Americans in their residences, on the streets and elsewhere, to deter them from living in Ramona Gardens because of their race and color. Saucedo would confront African-American residents, including mixed-race children, and individually or collectively threaten them by telling them they were not welcome in Hazard gang territory, namely, RGHD, and that they risked harm if they remained as residents.
If convicted of all counts listed in the indictment, Saucedo, Garibay, Portillo and Monarrez face a maximum sentence of 110 years in prison. Hernandez and Farias face a maximum sentence of life in prison, and Felix faces a maximum penalty of 115 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
The investigation was conducted by agents and detectives with the LAPD’s Hollenbeck Division; the LAFD; the ATF; and the FBI Los Angeles Division’s Civil Rights Squad. The case is being prosecuted by Assistant U.S. Attorneys Mack E. Jenkins and Douglas M. Miller of the Central District of California and Trial Attorneys Patricia Sumner and Julia Gegenheimer of the Civil Rights Division’s Criminal Section.
Hernandez et al Indictment
Sentencings for June 30 - July 6, 2016Read the Press Release
Aurelia Quezada-Moreno, 47, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on July 6, 2016, for conspiracy to distribute 1.5 to 5 kilograms of a mixture of substance containing a detectable amount of methamphetamine. Quezada-Moreno was arrested in Del Rio, Texas. She received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $300.00. In addition, Quezada-Moreno will be subject to deportation upon release from custody. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Kerry John Garnica, 53, of, Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on July 6, 2016, for being a felon in possession of a firearm. Garnica was arrested in St. Paul, Minnesota. He received 30 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Robert Vance Poutre, 51, of Evansville, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on July 6, 2016, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, for carrying a firearm during and in relation to a drug trafficking crime, and for being a felon in possession of a firearm. Poutre was arrested in Casper, Wyoming. He received 240 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $300.00 special assessment and restitution in the amount of $500.00. This case was investigated by the Wyoming Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Marcos Correa, 31, of Riverside, California, was sentenced by Federal District Court Judge Alan B. Johnson on July 5, 2016, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Correa was arrested in New Mexico. He received 151 months and 24 days of imprisonment to run concurrent to his undischarged sentence in New Mexico. In addition, Correa will be placed on supervised release for five years upon release from custody and was ordered to pay a $100.00 special assessment and restitution in the amount of $5,000.00. This case was investigated by the Cheyenne Police Department.
Bryan Kip Noyes, 55, of Price, Utah, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on July 5, 2016, for distribution of 200 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Noyes was arrested in Salt Lake City, Utah. He received 18 months imprisonment, to be followed by two years of supervised release, and was ordered to pay a $300.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Joel Scott Elliott, 38, of Sheridan, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 30, 2016, for attempted escape from custody. Elliott received 24 months and one day with 12 months to be served concurrently and 12 months and one day to be served consecutively to his undischarged sentence in a previous criminal matter. In addition, Elliott was ordered to pay a $100.00 special assessment and restitution in the amount of $720.20. This case was investigated by the Natrona County Sheriff’s Office and the U.S. Marshals Service.
Salvadoran National Sentenced for Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RENE MARTINEZ-QUIJANO, age 34, a citizen of El Salvador, was sentenced today after previously pleading guilty to a one-count Indictment for illegal entry of a removed alien.
U.S. District Judge Mary Ann Vial Lemmon sentenced MARTINEZ-QUIJANO to time served, followed by one year of supervised release, and a $100 special assessment fee. MARTINEZ-QUIJANO will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on March 1, 2016, MARTINEZ-QUIJANO was found in the United States after having been previously deported from the United States on June 27, 2014.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Salvadoran National Sentenced for Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that FRANCISCO MENDOZA-ZAVALA, age 41, a citizen of El Salvador, was sentenced today after previously pleading guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Mary Ann Vial Lemmon sentenced MENDOZA-ZAVALA to time served, followed by one year of supervised release, and a $100 special assessment fee. MENDOZA-ZAVALA will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on March 30, 2016, MENDOZA-ZAVALA was found in the United States after having been previously deported from the United States on September 6, 2012.
U.S. Attorney Polite praised the work of United States Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Sacramento Man Sentenced to 8 Years in Prison for Child Exploitation OffenseRead the Press Release
SACRAMENTO, Calif. — Dean Lynn Christiansen, 70, of Sacramento, was sentenced today to eight years and one month in prison, to be followed by five years of supervised release, for receiving child pornography, Acting United States Attorney Phillip A. Talbert announced. U.S. District Judge Morrison C. England Jr. also ordered Christiansen to pay a $17,500 fine.
According to court documents, between October 14, 2010 and October 17, 2012, Christiansen used a peer-to-peer file-sharing network to search for and collect more than 790 files containing pictures and videos that depicted the sexual exploitation of children. A search warrant executed at Christiansen’s home revealed that, at various times, many of those images and videos were made available to others over the internet. The images and videos Christiansen possessed involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of prepubescent minors under 12 years old. On September 24, 2015, Christiansen pleaded guilty to one count of receiving child pornography.
This case was the product of an investigation by the Federal Bureau of Investigation and the Sacramento County Sheriff’s Office, Internet Crimes Against Children Task Force. 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.