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Thursday 7 July 2016
Conspirators Sentenced to Federal Prison in Scheme to Fraudulently Obtain over $1.4 Million in Unemployment BenefitsRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Yaw Bempa-Boateng, age 35, of Silver Spring, Maryland, to 30 months in prison; and sentenced Carmen Benitez, age 29, of Scranton, Pennsylvania, and Dulce Oleo, age 39, of the Bronx, New York, each to 18 months in prison, for a conspiracy to fraudulently obtain over $1.4 million in unemployment benefits. Judge Hollander also ordered that Bempa-Boateng, Benitez and Oleo serve three years of supervised release following their prison sentence, and that they forfeit and pay restitution of: $801,710.40; $388,878; and $191,122, respectively.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robin Blake, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General; and Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division.
According to their plea agreements, from 2012 to 2015, Bempa-Boateng, Benitez, and Oleo conspired with Diameter Akala and others to cause the Maryland Department of Labor, Licensing and Regulation (DLLR) and the Pennsylvania Department of Labor and Industry (DLI), which administered the unemployment insurance benefit programs in their respective states, to issue fraudulent unemployment by submitting false applications for monetary benefits.
Oleo, her son Wilfred Mendez, and other members of the conspiracy obtained the personally identifying information (PII) of individuals, including Maryland residents. Akala filed false documentation with DLLR and DLI in the names of fictitious companies, falsely stating that the fictitious companies employed and paid wages to actual individuals. In fact, no unemployment insurance taxes were ever paid to DLLR or DLI in the names of the fictitious companies. Akala, electronically and by phone, filed claims in Maryland and Pennsylvania for unemployment benefits in his own name and the names of other individuals, including his cousin, Benitez, and Bempa-Boateng, falsely claiming that they previously worked for those fictitious companies. Akala used the PII of individuals who had given permission to have their information used, as well as many who did not.
Akala and other members of the conspiracy used residential mailing addresses of Bempa-Boateng, Benitzez and Oleo, as well as other co-conspirators in Maryland, New York, the District of Columbia, Pennsylvania and Virginia to register and receive correspondence for the fictitious companies, and apply for and receive unemployment benefits in the form of prepaid debit cards. In exchange for the use of their addresses, the co-conspirators received funds obtained through the fraud, typically in the form of a fraudulently obtained prepaid debit card. The members of the conspiracy regularly contacted DLLR and DLI, falsely representing themselves either to be a representative of one of the fictitious companies or an individual entitled to unemployment benefits. Akala moved between different states in order to retrieve correspondence addressed to fictitious companies and individuals, including prepaid debit cards issued by DLLR and DLI.
Bempa-Boateng, Benitez and co-conspirators Wilfred Mendez, Tawana McClain, Ferny Alexander Moreno Puente, Wilfredo Torres and his half-brother, Eric Gonzalez, agreed to have Akala file fraudulent unemployment claims in their names. Oleo, Mendez, Moreno Puente and Torres also provided the personal identification information and/or addresses of other individuals to file additional false claims in the names of those individuals, and others. The co-conspirators used the fraudulently obtained unemployment benefits prepaid debit cards that were mailed directly to them or provided to them by Akala, at ATMs or stores in order to withdraw and use the funds. Some of the cards were in their names, but some of the cards were in the names of other individuals. Generally, the conspirators kept a portion of the fraudulently obtained funds for themselves and provided the remainder to Akala. Torres also allowed his business address to be used to file fraudulent unemployment benefit claims and when the unemployment benefits debit cards arrived, he either used them or distributed them to co-conspirators.
During the course of the conspiracy the actual loss was approximately $1,468,463.80 in fraudulently obtained unemployment benefits.
Diameter Akala, age 43, of Silver Spring, Maryland, Washington, D.C. and New York, faces a maximum sentence of 20 years in prison for conspiracy to commit wire fraud and a mandatory minimum of two years in prison, consecutive to any other sentence, for aggravated identity theft. As part of his plea agreement, Akala will also be required to pay restitution and forfeiture in the full amount of the loss, approximately $1,468,463.80. Judge Hollander has scheduled sentencing for Akala on August 4, 2016, at 10:00 a.m.
Oleo’s son, Wilfred Mendez, age 21, of Bronx, New York; Eric Gonzalez, age 34, of Alexandria, Virginia; Tawana McClain, age 51, of Washington, D.C.; Ferny Alexander Moreno Puente, age 26, of Gaithersburg, Maryland; and Wilfredo Torres, age 36, of Alexandria, Virginia, previously pleaded guilty to their roles in the scheme and are awaiting sentencing.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the Department of Labor – OIG and U.S. Postal Inspection Service for their work in the investigation, and praised the Maryland Department of Labor, Licensing and Regulation and the Pennsylvania Department of Labor and Industry for their assistance in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Sean R. Delaney, who is prosecuting the case.
Cincinnati-Area Man Pleads Guilty to Plot to Attack U.S. Government OfficersRead the Press Release
Defendant was Directed to Launch Attacks by Deceased ISIL Recruiter Junaid Hussain
Munir Abdulkader, 21, of West Chester, Ohio, pleaded guilty to attempting to kill officers and employees of the United States, providing material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and possession of a firearm in furtherance of a crime of violence. Abdulkader was charged for his plot to kill an employee of a U.S. military installation and then attack a local police station, all in the Southern District of Ohio.
The unsealing today of the charges and plea agreement were announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio and Special Agent in Charge Angela Byers of the FBI’s Cincinnati Field Division.
According to the statement of facts admitted by Adbulkader as part of his guilty plea, beginning in at least July 2014 and continuing into 2015, Abdulkader expressed his support for ISIL on Twitter. 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, and then began making plans and preparations to travel overseas. He secured a passport, saved money for the trip and researched the necessary logistical details. However, in approximately late April 2015, Abdulkader expressed concerns about his ability to travel and postponed his original departure date of approximately May 2, 2015.
In May 2015, Abdulkader was in communication with one or more individuals located overseas who he understood were members of ISIL. One of the individuals was a member of ISIL identified as Junaid Hussein. Through these communications, Hussein directed and encouraged Abdulkader to plan and execute a violent attack within the United States. Abdulkader communicated with Hussein and the CHS about a plan to kill an identified military employee on account of his position with the U.S. government. The plan included abducting the employee at the employee’s home and filming the execution. After killing the employee, Abdulkader planned to perpetrate a violent attack on a police station in the Southern District of Ohio using firearms and Molotov cocktails.
In preparation for the attacks, Abdulkader asked the CHS to purchase a vest for holding ammunition. On or about May 18, 2015, Abdulkader conducted surveillance on a police station in the Southern District of Ohio. On or about May 20, 2015, Abdulkader went to a shooting range, learned how to operate certain firearms and practiced shooting the firearms. Abdulkader also negotiated the purchase of a firearm, an AK-47 assault rifle. On May 21, 2015, in a controlled purchase, Abdulkader bought the AK-47 assault rifle and was subsequently arrested.
Abdulkader was charged by complaint on May 22, 2015. An information was filed against Abdulkader on March 2, 2016, and he pleaded guilty to the three charges in the information on March 24, 2016, before U.S. District Judge Michael R. Barrett of the Southern District of Ohio.
Attempted murder of government employees and officials carries a maximum sentence of 20 years in prison. Material support of a foreign terrorist organization carries a maximum sentence of 15 years in prison. Possession of a firearm in furtherance of an attempted crime of violence carries 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 Trial Attorney Michael Dittoe of the National Security Division’s Counterterrorism Section.
Career Criminal Pleads Guilty to Drug and Firearm OffensesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Derrick Bernard Farmer (40, Tampa) has pleaded guilty to possessing with the intent to distribute crack cocaine and possessing a firearm as a convicted felon. He faces a minimum mandatory term of 15 years, up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, during January 2016, Farmer served as the crack cocaine source for two individuals who then sold the drugs to an undercover detective. On February 3, 2016, law enforcement executed a search warrant at Farmer’s apartment in Tampa and found crack cocaine, drug paraphernalia, and three firearms. Farmer had multiple prior felony drug convictions and therefore is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Taylor G. Stout.
This is another case prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) Comprehensive Anti-Gang Initiative (CAGI). The program’s objective is to reduce criminal gangs, violent crime, illegal drugs, and guns through combined enforcement, prosecution, prevention, and re-entry efforts.
British Virgin Islands Man Sentenced to ThreeMonths in Prison for Alien SmugglingRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez sentenced today Ashemba Frett, 22, of Tortola, British Virgin Islands, to three months’ imprisonment and three years of supervised release for encouraging and inducing aliens to illegally enter the United States, United States Attorney Ronald W. Sharpe announced. Judge Gomez ordered Frett to pay a $100 special assessment and perform 300 hours of community service.
On March 3, 2016, Frett pleaded guilty to encouraging and inducing aliens to illegally enter the United States. According to the plea agreement filed with the court, the United States Coast Guard (USSG) conducted a safety stop on a vessel in Jersey Bay, St. Thomas, U.S. Virgin Islands. The vessel was operated by an unidentified individual. Frett jumped into the water, but was apprehended by the Coast Guard. A Haitian national and a national from the Dominican Republic were on-board the vessel. Frett admitted that the Dominican Republic national paid him $700 to travel to St. Thomas from Tortola and that Frett knew he did not possess the proper documents to lawfully enter the United States.
The case was investigated by the USSG, U.S. Customs and Border Protection, Office of Air and Marine, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Bangor Resident Sentenced to Five Years in Prison for his Part in Crack Distribution ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that David Chaisson, 23, of Bangor was sentenced to five years in prison and a three-year term of supervised released for his part in a crack cocaine distribution conspiracy that stretched from New Haven, Connecticut to Bangor.
According to court records, the defendant illegally distributed crack in Penobscot County and elsewhere between January 2010 and August 2013. He sold and distributed the cocaine base in multiple half gram and gram amounts to others. The half-gram bags were sold for $50 each and the gram bags were sold for $100 each. The defendant was responsible for collecting proceeds from his transactions and returning the money to the person from whom he had obtained the cocaine base. The defendant profited in money and/or cocaine base for the transactions that he engaged in.
The ultimate source for the cocaine base was in the New Haven, Connecticut area and it was transported to the Bangor area by others in the conspiracy including members and associates of the Red Side Guerilla Brimms, a street gang affiliated with the Almighty Blood Nation, a national street gang. In fact, during his involvement in the conspiracy Chaisson allowed gang member Christian Turner to live in his Old Town residence and deal crack from the location. In imposing sentence, the Court held Chaisson responsible for providing a “safe haven” for Turner and other gang members who came to Bangor to distribute the crack.
The case was investigated by the Maine Drug Enforcement Agency, the New Haven, Connecticut Office of the Bureau of Alcohol Tobacco Firearms and Explosives, and the New Haven Connecticut Department of Police Services.
Armed Career Criminal Sentenced to 15 Years in Prison for Federal Firearms ViolationRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. sentenced yesterday a Charlotte man to 15 years in prison for a federal firearms violation, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Jesmene Lockhart, 26, was also ordered to serve three years under supervised release after he is released from prison.
According to the filed court documents and statements made in court, on September 27, 2014, law enforcement officers responding to a 911 call approached Lockhart’s vehicle, which was parked near Marlow Avenue in Charlotte. The officers seized from the driver-side floorboard a pistol loaded with a 31 round magazine and one bullet in the chamber. Officers also recovered from the pocket of the driver’s side door a fully loaded 10 capacity magazine. Court records show that Lockhart has a prior offense and is prohibited from possessing a handgun. He pleaded guilty in July 2015 to one count of possession of a firearm by a convicted felon. Court records indicate that Lockhart was convicted in 2006 of conspiracy to commit armed robbery and robbery with a dangerous weapon and at sentencing he qualified as an armed career criminal.
The investigation was handled by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charlotte Mecklenburg Police Department. Assistant U.S. Attorney Jennifer Dillon prosecuted the case.
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In two separate cases, Judge Conrad also sentenced two Charlotte men on federal gun charges. Laquan Marcell Wilson, 37, and Michael Lamar Perry, 29, were sentenced to 84 months and 46 months in prison and three years of supervised release, respectively. They each pleaded guilty to one count of possession of a firearm by a convicted felon. Perry also pleaded guilty to one count of possession with intent to distribute marijuana.
According to court documents and court proceedings, on June 23, 2014, CMPD officers arrived at an apartment complex located at the intersection of Milton Road and Barrington Drive, in Charlotte. The officers approached Wilson, who was standing with a group of people in an area that is recognized by law enforcement as an open air drug market. According to court records, officers recovered from Wilson a handgun, which was tucked into his waistband, and illegal substances, including crack cocaine and marijuana cigarettes. Court records show that Wilson has a prior offense and is prohibited from possessing a handgun.
Court documents filed in Perry’s case show that on September 11, 2013, CMPD officers arrived at a residence located on Lexington Circle, in Charlotte, in response to complaint regarding drug activity. As the officers approached the residence, they observed Perry through the open front door, reaching into a kitchen cabinet that contained what appeared to be marijuana. Officers entered the residence and while executing a search warrant they seized drugs, over $10,000 in cash and a revolver and ammunition which belonged to Perry. Court records show that Perry has a prior felony conviction and is prohibited from possessing a firearm.
At sentencing, both Wilson and Perry received sentencing enhancements for possession of a firearm in connection with another felony offense.
ATF and CMPD handled Wilson’s investigation. The Drug Enforcement Administration (DEA) and CMPD investigated Perry’s case. Assistant U.S. Attorney William Miller prosecuted both cases.
Anderson man indicted on fraud chargesRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today the indictment of an Anderson man on six counts of wire fraud, two counts of making false statements on a loan or credit application, and one count of making false declarations before the court. Kwame Abdul-Haqq, 52, Anderson, was indicted by a federal grand jury in Indianapolis.
Robert Borum has a lengthy criminal history in New York, including convictions for attempted murder, kidnapping, robbery and burglary. Borum legally changed his name in 1993 to Kwame Abdul-Haqq. In December 2006, Adbdul-Haqq applied for a job as a correctional officer with the Indiana Department of Corrections (IDOC). In completing his job application, Abdul-Haqq lied about and failed to disclose his criminal history under the name Robert Borum. The IDOC subsequently hired Abdul-Haqq as a correctional officer at the Pendleton Correctional Facility, where Abdul-Haqq was employed from February 2007 until early 2015. The six counts of wire fraud are based on the last six wire transfers of Abdul-Haqq’s wages from the IDOC to his bank account.
In January 2009, Adbul-Haqq applied for a Federal Housing Administration (FHA) refinance of his existing mortgage on a house he owned in Ingalls, Indiana. Then, in August 2013, he applied for mortgage assistance from FHA on the same house. On both applications, Abdul-Haqq falsely stated that he lived in the home as his primary residence when in fact he was renting the home to another person for $850 a month. Abdul-Haqq and his wife were living in a separate residence in Anderson, Indiana at the time.
In December 2012, Adbul-Haqq perjured himself when he made false statements about his income to the United States District Court for the Southern District of Indiana on an application to file a lawsuit against the IDOC without paying filing fees.
This case was investigated by United States Department of Housing and Urban Development-Office of Inspector General, Special Agent Jared Burns, and the Indiana State Police.
According to Assistant United States Attorney Jonathan A. Bont who is prosecuting this case for the government, Abdul-Haqq faces up to 30 years’ imprisonment for making false statements each loan and credit application, up to 20 years on each wire fraud count, and up to five years on the perjury count.
Alleged Bank Robber DetainedRead the Press Release
PROVIDENCE, R.I. – Joseph W. Lavoie, 49, of Providence, was ordered detained in federal custody today on federal bank robbery and arson charges. It is alleged that on Wednesday Lavoie robbed and set fire to a North Providence branch office of Citizens Bank.
Lavoie is charged by way of a federal criminal complaint with one count each of bank robbery and use of fire to commit a federal felony.
Lavoie’s arrest and detention are announced by United States Attorney Peter F. Neronha, Acting North Providence Police Chief Christopher J. Pelagio, and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.
According to court documents, it is alleged that shortly before 10:00 AM on Wednesday, Lavoie telephoned the FBI and threatened to rob and burn down a bank. Lavoie allegedly made the call while at the North Providence branch office of Citizens Bank. While speaking with an FBI agent on the telephone, Lavoie was heard asking someone for the address of the bank, which he then relayed to the FBI agent. Lavoie made the call moments before he allegedly jumped over the counter and announced to a teller, “This is a robbery.” It is alleged that Lavoie opened the cash drawer and began removing cash which he then stuffed inside his sweatshirt. It is alleged that during the robbery, Lavoie grabbed, assaulted and threatened a female teller, and then ignited several items inside the bank.
North Providence Police Department patrol units were dispatched to the bank while the robbery was in progress. First responders observed multiple individuals exiting the bank as black smoke filled the interior of the building. Officers entered the bank where they encountered and detained Lavoie who was located standing behind the teller counter.
A criminal complaint 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.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Albuquerque Woman Sentenced for Federal Mail Theft ConvictionRead the Press Release
ALBUQUERQUE – Crystal Devon Romero, 33, of Albuquerque, N.M., was sentenced today in federal court to 15 months in prison followed by three years of supervised release for her conviction on theft of mail charges.
Romero and codefendant Michelle Josephine Candelaria, 25, also of Albuquerque, were arrested on Jan. 19, 2016, on a criminal complaint charging them with conspiracy and theft of mail. The complaint alleged that the two women conspired with each other to steal mail in Jan. 2015, in Bernalillo County, N.M. Romero and Candelaria pried open cluster mailboxes and stole mail from them. A search of the truck Romero and Candelaria used to carry out their mail theft scheme uncovered stolen mail, including checks that had been altered and debit/credit cards.
On Feb. 29, 2016, Romero and Candelaria pled guilty to felony informations charging them with stealing mail from Jan. 12, 2016 through Jan. 15, 2016. The guilty pleas were entered without the benefit of plea agreements.
At sentencing, Candelaria faces a maximum of five years in federal prison. Her sentencing hearing has yet to be scheduled.
This case was investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Nicholas Jon Ganjei.
Albuquerque Felon Sentenced to Prison for Unlawfully Possessing Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Francisco Roberto Esquibel, Jr., 34, of Albuquerque, N.M., was sentenced today in federal court to 80 months in prison followed by three years of supervised release for unlawfully possessing a firearm and ammunition.
Esquibel was charged in a criminal complaint filed on June 11, 2015, with being a felon in possession of a firearm and ammunition. The complaint alleged that Esquibel unlawfully possessed a stolen firearm at his residence in Albuquerque on June 10, 2015. According to the complaint, the Albuquerque Police Department (APD) found the firearm while arresting Esquibel on an outstanding warrant.
Esquibel was subsequently indicted on July 31, 2015. According to the indictment, Esquibel was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony crimes, including conspiracy to commit armed robbery, aggravated battery with a deadly weapon, felon in possession of a firearm, receiving or transferring a stolen motor vehicle, and possession of controlled substance with intent to distribute.
On Feb. 11, 2016, Esquibel pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Albuquerque office of Homeland Security Investigations and APD. Assistant U.S. Attorney Jacob Wishard prosecuted the case as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat and violent offenders, primarily based on their prior convictions, from counties with the highest violent crime rates under this initiative.
Wednesday 6 July 2016
Virginia Man Sentenced to Prison for Role in Massive Identity Theft and Tax Fraud SchemeRead the Press Release
Conspired with Others to Seek Over $1.5 Million in Fraudulent Refunds
A federal district court judge sentenced a Virginia man today to 47 months in prison for his involvement in a far-reaching stolen identity refund fraud scheme in which he worked with others to seek over $1.5 million in income tax refunds through the filing of fraudulent federal income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Channing D. Phillips of the District of Columbia, Special Agent in Charge Thomas Jankowski of the Internal Revenue Service-Criminal Investigation (IRS-CI), Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service, Washington Division and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Bradley King, 35, of Fredericksburg, Virginia, is among approximately 20 participants in this scheme who have pleaded guilty to charges in the U.S. District Court for the District of Columbia. According to court documents, the overall case involves the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $42 million. King pleaded guilty earlier this year to one count of conspiracy to defraud the United States with respect to claims, one count of theft of public money and one count of aiding and abetting in fraud and related activity in connection with identification documents.
King was sentenced by U.S. District Judge Ellen S. Huvelle of the District of Columbia. In addition to the prison term, he must also pay $493,436 in restitution to the IRS and a forfeiture money judgment in the amount of $5,400. Following his prison term, King will be placed on three years of supervised release.
According to the government’s evidence, King participated in a massive and sophisticated stolen identity refund fraud scheme that involved an extensive network of more than 130 people, many of whom were receiving public assistance. The refunds were sought for tax years 2005 through 2013, often in the names of people whose identities had been stolen, including the elderly, residents of assisted living facilities, drug addicts and incarcerated prisoners. Returns were also filed in the names of and refunds were issued to, people who were willing participants in the scheme. The refunds listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia.
According to documents filed with the court, King’s involvement in the scheme began in 2008 and continued through July 2015. Initially, he permitted co-conspirators to use his name, social security number and residential address for the creation and submission of fraudulent income tax returns. From March 2010 through July 2015, he recruited others to provide him with means of identification for use in preparing and filing fraudulent returns. He also recruited others to permit the use of their residential addresses on fraudulent returns that he prepared and filed. King split the proceeds of the fraudulently obtained U.S. Treasury checks with his co-conspirators. In addition, he and others used bank accounts for the negotiation of refund checks that were issued in the names of other persons. Finally, according to the court documents, he sold fraudulently obtained refund checks to another individual in June 2015.
Taking together the losses generated by the use of residential addresses and bank accounts under his control, including checks associated with his co-conspirators, King was responsible for the filing of approximately 444 fraudulent returns that sought more than $1.5 million. These actions led to a total actual loss of approximately $493,436 to the U.S. Treasury, based on the negotiation of a total of 153 U.S. Treasury checks listing addresses under his control and/or negotiated by his recruits.
In announcing the sentence, Acting Assistant Attorney General Ciraolo, U.S. Attorney Phillips, Special Agent in Charge Jankowski, Inspector in Charge Kelokates and Assistant Inspector General Phillips commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialists Donna Galindo and Julie Dailey. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jeffrey B. Bender and Thomas F. Koelbl and former Trial Attorney Jessica Moran of the Tax Division, who prosecuted the case.
Virginia Man Sentenced to 47 Months in Prison for Role in Massive Identity Theft and Tax Fraud SchemeRead the Press Release
WASHINGTON – A federal district court judge sentenced a Virginia man today to 47 months in prison for his involvement in a far-reaching stolen identity refund fraud scheme in which he worked with others to seek over $1.5 million in income tax refunds through the filing of fraudulent federal income tax returns, announced U.S. Attorney Channing D. Phillips, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, Special Agent in Charge Thomas Jankowski of the Internal Revenue Service-Criminal Investigation (IRS-CI), Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service, Washington Division and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Bradley King, 35, of Fredericksburg, Virginia, is among approximately 20 participants in this scheme who have pleaded guilty to charges in the U.S. District Court for the District of Columbia. According to court documents, the overall case involves the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $42 million. King pleaded guilty earlier this year to one count of conspiracy to defraud the United States with respect to claims, one count of theft of public money and one count of aiding and abetting in fraud and related activity in connection with identification documents.
King was sentenced by U.S. District Judge Ellen S. Huvelle of the District of Columbia. In addition to the prison term, he must also pay $493,436 in restitution to the IRS and a forfeiture money judgment in the amount of $5,400. Following his prison term, King will be placed on three years of supervised release.
According to the government’s evidence, King participated in a massive and sophisticated stolen identity refund fraud scheme that involved an extensive network of more than 130 people, many of whom were receiving public assistance. The refunds were sought for tax years 2005 through 2013, often in the names of people whose identities had been stolen, including the elderly, residents of assisted living facilities, drug addicts and incarcerated prisoners. Returns were also filed in the names of and refunds were issued to, people who were willing participants in the scheme. The refunds listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia.
According to documents filed with the court, King’s involvement in the scheme began in 2008 and continued through July 2015. Initially, he permitted co-conspirators to use his name, social security number and residential address for the creation and submission of fraudulent income tax returns. From March 2010 through July 2015, he recruited others to provide him with means of identification for use in preparing and filing fraudulent returns. He also recruited others to permit the use of their residential addresses on fraudulent returns that he prepared and filed. King split the proceeds of the fraudulently obtained U.S. Treasury checks with his co-conspirators. In addition, he and others used bank accounts for the negotiation of refund checks that were issued in the names of other persons. Finally, according to the court documents, he sold fraudulently obtained refund checks to another individual in June 2015.
Taking together the losses generated by the use of residential addresses and bank accounts under his control, including checks associated with his co-conspirators, King was responsible for the filing of approximately 444 fraudulent returns that sought more than $1.5 million. These actions led to a total actual loss of approximately $493,436 to the U.S. Treasury, based on the negotiation of a total of 153 U.S. Treasury checks listing addresses under his control and/or negotiated by his recruits.
In announcing the sentence, U.S. Attorney Phillips, Acting Assistant Attorney General Ciraolo, Special Agent in Charge Jankowski, Inspector in Charge Kelokates and Assistant Inspector General Phillips commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialists Donna Galindo and Julie Dailey. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jeffrey B. Bender and Thomas F. Koelbl and former Trial Attorney Jessica Moran of the Tax Division, who prosecuted the case.
United States Attorney Announces Federal Criminal Investigation into Death of Alton SterlingRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today “the FBI’s New Orleans Division, the Civil Rights Division and the U.S. Attorney’s Office for the Middle District of Louisiana have opened a civil rights investigation into the death of Alton Sterling. The Justice Department will collect all available facts and evidence and conduct a fair, thorough, and impartial investigation. As this is an ongoing investigation we are not able to comment further at this time.”
Three Defendants Enter Guilty Pleas to Money Laundering ConspiracyRead the Press Release
St. Thomas, USVI – On July 6, 2016, Tamisha Mc Bean, 32, of St. Thomas, pleaded guilty in federal court on St. Thomas, to conspiracy to launder monetary instruments, United States Attorney Ronald W. Sharpe announced. Co-defendants Demincia Dore, 30, of St. Thomas, and Kishma Weeks, 26, of St. Croix, pleaded guilty on June 30, 2016 and July 5, 2016, respectively, to the same charge. Sentencings for all three defendants are scheduled for November 3, 2016.
According to the plea agreements filed with the court, between July 2012 and December 2013, Mc Bean, Weeks and Dore joined a drug trafficking conspiracy whose members shipped barrels containing at least 700 kilograms but less than 1,000 kilograms of marijuana concealed in “Chow Mein” cans from Los Angeles, California to St. Thomas utilizing a trucking service. Weeks and Dore later deposited the proceeds from the marijuana sales into their bank accounts in St. Thomas and subsequently wired the proceeds electronically to members of the conspiracy in the mainland United States. Mc Bean, on the other hand, utilized the bank accounts of Jamila Felix, a member of the conspiracy, to deposit and later wire marijuana proceeds from Felix’s bank accounts. Mc Bean, Weeks and Dore face a maximum sentence of 20 years, and a fine of not more than $500,000, or twice the value of the property involved in their transactions, whichever is greater.
On May 16, 2016, co-defendants Clarence Griffin, Robert Brown pled guilty to drug trafficking conspiracy and Jamila Felix pled guilty to money laundering conspiracy. On April 20, 2016, co-defendant Larry Thompson also pled guilty to misprision of felony.
“To be truly effective in our efforts to stop the illicit distribution of drugs, it is not enough to interrupt their flow. Members of law enforcement must also make drug trafficking unprofitable to criminals such as those involved in this conspiracy,” said U.S. Attorney Ronald W. Sharpe. This investigation and the resulting guilty pleas clearly demonstrate that the U.S. Attorney’s Office and our law enforcement colleagues are committed to dismantling the illicit drug trade.”
"The defendants in this case were part of a large-scale drug trafficking conspiracy and engaged in a money laundering conspiracy to conceal the proceeds of the marijuana sales. IRS Criminal Investigation is committed to unraveling financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money. We will continue to work with the U.S. Attorney's Office and other law enforcement partners to enforce the law and follow the money, wherever it leads,” said Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation (IRS-CI).
This case is the result of a joint investigation by the U.S. Drug Enforcement Administration and IRS-CI. It was prosecuted by Assistant United States Attorney Delia L. Smith.
Three Convicted of Kidnapping ChildrenRead the Press Release
CORPUS CHRISTI, Texas – A 31-year-old woman admitted she aided her sister in kidnapping two children from their Corpus Christi home, announced U.S. Attorney Kenneth Magidson. Georgia Gregg pleaded guilty today, while her sister - Jada Gregg-Warren, 32 - and her sister’s boyfriend - Ivan Francisco Alvarez-Benavente, 26, pleaded guilty June 30, 2016.
The court heard that Gregg and Gregg-Warren, both of Corpus Christi, kidnapped the young children, ages five and four, from their residence on the night of Aug. 19, 2015. After the kidnapping, the two women travelled to McAllen with the children. Alvarez-Benavente, a Mexican citizen, followed them in a separate vehicle.
The Corpus Christi Police Department (CCPD) immediately disseminated an Amber Alert in pursuit of all three adults and the two children. As part of the alert, a Child Abduction Response Team was deployed with the assistance of the FBI and U.S. Marshals Service (USMS).
Authorities learned that Gregg returned to Corpus Christi while the couple and the children entered Mexico and stayed at a residence close to the Alvarez-Benavente family. Through a collaborative effort between the U.S. and Mexican authorities, the couple and the children were brought to the U.S. Dec. 16, 2015, at which time Gregg-Warren and Alvarez-Benavente were arrested.
Senior U.S. District Judge Hayden Head accepted the pleas and has set sentencing for Oct. 6, 2016. Both sisters face up to life in federal prison and a possible $250,000 maximum fine. Alvarez-Benavente faces up to 15 years and a possible $125,000 fine.
All three have been and will remain in custody pending their sentencing hearing.
The charges are the result of the investigative efforts of the FBI, CCPD and the USMS. Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case.
The Fourth of July and the End of RamadanRead the Press Release
On the Fourth of July, we celebrated our nation’s independence founded on the principle that all people are created equal and able to worship freely. For centuries, religious freedom has been a pillar of American society and a beacon for those persecuted for their faith. This year, July 5th marked the end of Ramadan, the month of intense prayer, dawn-to-dusk fasting and nightly feasts for millions of Muslims. The juxtaposition prompts reflection on anti-Muslim threats and violence we have witnessed in our country.
Connecticut has not been immune to such shameful acts. On the night of the November 2015, just hours after the terrorist attacks in Paris, a man used a high-powered rifle to shoot into the Baitul Aman Mosque in Meriden. Four shots pierced the Mosque, one passed directly through the prayer area before exiting the building. No one was injured as the attack occurred late at night when no worshippers were inside. Law enforcement responded quickly, determined to restore a sense of security and calm to the Muslim congregation. Prosecutors from our office worked with the FBI, ATF and Meriden Police Department and quickly identified the shooter - Ted Hakey, a former Marine whose property abutted that of the Mosque. After executing search warrants of his house and Facebook account, which revealed evidence of hatred toward Islam and Muslims, he was charged with the federal hate crime of destruction of religious property. On June 17, Mr. Hakey was sentenced to six months in prison for assaulting the mosque’s congregants in the peaceful practice of their religion.
Mr. Hakey’s acts are not isolated. The Department of Justice has led more than 1,000 investigations and 45 prosecutions of anti-Muslim acts of hatred and bigotry. After the Paris attacks, an individual in Florida was arrested for threatening to firebomb two mosques in the St. Petersburg area, and sentenced to a year and a day in prison. In Utah, a man pleaded guilty to tearing a Muslim woman’s hijab off of her head on a plane. This intolerance is fueled by rhetoric that incorrectly seeks to paint all Muslims with a broad brush when, in fact, the overwhelming majority of Muslims—including prominent Muslim leaders in Connecticut—condemn and stand against acts of terrorism that harm innocent people.
A remarkable thing happened in the Hakey prosecution. Mr. Hakey sought and received forgiveness from the congregation at the Baitul Aman Mosque. We applaud the congregation for their extraordinary grace and generosity of spirit - a gesture reflective of true Islam as the promotion of peace and harmony in the world. Last month, we honored the Mosque’s leader at our annual law enforcement awards ceremony. More broadly, we deeply appreciate the dedicated efforts of our Muslim partners throughout the State to keep our communities safe and secure.
As the federal prosecuting office in Connecticut, it is the job of the U.S. Attorney’s Office to secure and protect citizens of all races, religions, ethnic backgrounds and sexual orientations. Our federal prosecutors have forged partnerships with Muslim leaders throughout the state, as well as with Sikh leaders who are often perceived to be Muslim, to help ensure the safety of all our communities and create an environment of trust that recognizes the humanity and dignity of all. We have trained hundreds of police officers about Islam and Sikhism; held anti-bullying workshops at schools and mosques; and launched a Multi-Cultural Advisory Council to gain insight from community members about how best we can serve all communities that we protect.
In the end, anti-Muslim vitriol itself undermines our security. Hateful and vicious rhetoric only strengthens the evil of terrorists who rely heavily on the narrative that America and the West hate Islam. We must rise above our anger to defeat the terrorists’ message of violence, intolerance, and hate.
To the vast majority of our Connecticut residents who recognize that our diversity as a nation makes us stronger, make your voices heard: let the Muslim members of our community know that they are a valued part of our whole. It is the responsibility of all of us to lift up the voices of tolerance, respect, and mutual understanding. We all must pledge to remove hatred and intolerance from our midst, and to stay true to the principles of liberty, justice and equality that define America at its best. The light of our nation shines brightest when its people reflect the promise and values of America.
Tampa Man Sentenced to 50 Years for Child Sexual Exploitation OffensesRead the Press Release
Tampa, FL – U.S. District Judge James D. Whittemore has sentenced Donald Daniel Robinson (30, Tampa) to 50 years in federal prison for producing, possessing, and distributing child pornography. He pleaded guilty on February 16, 2016.
According to court documents, the Florida Department of Law Enforcement (FDLE) began an investigation after receiving numerous tips from the National Center for Missing and Exploited Children concerning an Internet user at Robinson’s residence who had distributed files containing child pornography through various social networking websites. On July 8, 2015, agents from FDLE and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations executed a search warrant at Robinson’s home. Multiple images of child pornography, including images of local children, were found during the search.
According to victims and evidence obtained from Robinson’s phone, Robinson had posed as a female online to coerce children to produce and send the explicit images to him. The images included minors engaged in sexually explicit conduct. Additionally, two victims told agents that Robinson had persuaded them to perform sex acts on him.
"This lengthy prison sentence is reflective of the heinous nature of the crime committed and a result of the hard work of our HSI special agents and FDLE," said Susan L. McCormick, special agent in charge of HSI Tampa. "This criminal stole the innocence of young children and HSI will do everything in our power to protect our children and bring to justice those involved in these despicable crimes.”
“This case puts into perspective that crimes like this begin with live victims who are children,” said Tom Foy, FDLE Tampa’s Special Agent in Charge. “The suspect in this case manipulated children for his benefit. FDLE and HSI will continue this effort to protect our children from those who would use their innocence and youth for their advantage and criminal activity.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Amanda C. Kaiser.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Statement of U.S. Attorney Joyce Vance on the University of Alabama's Action Plan to Combat Racial Discrimination in Fraternities and SororitiesRead the Press Release
BIRMINGHAM – The University of Alabama, which claims the largest fraternity and sorority community in the nation with regard to overall fraternity and sorority membership, today announced the adoption of an action plan to enhance the University’s ability to prevent and respond to racial discrimination, and to increase diversity within the University’s fraternities and sororities. In developing the plan, the University consulted with the U.S. Attorney’s Office for the Northern District of Alabama and the Civil Rights Division of the U.S. Department of Justice.
In Fall 2013, the U.S. Attorney’s Office and the Civil Rights Division contacted the University to inquire about the allegations of race discrimination in the selection process for new members in the University’s traditionally white sororities, and the University’s response. At that time, the University had undertaken a series of efforts to demonstrate the University’s commitment to a discrimination-free campus environment and to increase diversity in the University’s recognized Greek organizations. Following subsequent discussions with the U.S. Attorney’s Office and the Civil Rights Division, the University developed an action plan to memorialize the University’s efforts and serves as a roadmap for future efforts to remove barriers to the Greek system and improve how the University responds to allegations of discrimination. Specifically, the plan clarifies expectations for students and student organizations, and establishes clear and consistent procedures for reporting, investigating, and responding to allegations of discriminatory conduct.
“Greek life is a vital part of the college experience for many students. With today’s action plan, the University of Alabama makes a commitment that this important component of University life, which plays a significant role in the formation of relationships students will carry forward into their adult lives, is not tarnished by racial barriers,” said U.S. Attorney Joyce White Vance. “We look forward to the University’s prompt and full implementation of the action plan. We appreciate the students who came forward with allegations about discrimination in sorority rush and made this action plan possible. We urge the community to contact our office if they have any concerns about discrimination or other civil-rights violations on any campus.”
To make complaints about potential civil-rights violations, including complaints about discrimination based on race, religion, sex, gender, sexual orientation, disability, or veteran status, please call or e-mail the U.S. Attorney’s Office Civil Rights Intake Specialist at (205)244-2185 or [email protected]. To file a written complaint, mail the complaint to the U.S. Attorney’s Office for the Northern District of Alabama, 1801 Fourth Avenue North, Birmingham, Alabama 35203.
Statement from Attorney General Loretta E. Lynch Regarding State Department Email InvestigationRead the Press Release
Attorney General Loretta E. Lynch released the following statement today regarding the State Department email investigation:
“Late this afternoon, I met with FBI Director James Comey and career prosecutors and agents who conducted the investigation of Secretary Hillary Clinton’s use of a personal email system during her time as Secretary of State. I received and accepted their unanimous recommendation that the thorough, year-long investigation be closed and that no charges be brought against any individuals within the scope of the investigation.”
St. Francis Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man convicted of Abusive Sexual Contact was sentenced on July 5, 2016, by U.S. District Judge Roberto A. Lange.
Gregory Paul Quigley, age 51, was sentenced to 1 year and 1 day in custody, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Quigley was indicted for Aggravated Sexual Abuse by Force by a federal grand jury on September 9, 2015. He pled guilty to a Superseding Information charging him with Abusive Sexual Contact on March 29, 2016.
On November 30, 2013, Quigley and a woman, the victim, were drinking alcohol together in an abandoned house in St. Francis. Quigley intentionally made sexual contact with the victim while the victim was incapable of appraising the nature of the conduct.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie Sanderson prosecuted the case.
Quigley was immediately turned over to the custody of the U.S. Marshals Service.
Savannah Residents Charged with Federal Firearm, and Drug Trafficking OffensesRead the Press Release
SAVANNAH, GA – Federal indictments were unsealed yesterday revealing that 8 Savannah residents have been charged with federal firearms and drug-trafficking offenses.
According to evidence presented on Tuesday during detention hearings before U.S. Magistrate Judge GR Smith, the federal indictments are the result of a joint FBI and the Savannah-Chatham Metropolitan Police Department (SCMPD) investigation into gang-related activities in the Savannah area. Law enforcement focused their attention on the Carver Village Thoroughbreds gang, a violent gang operating in the Carver Village neighborhood in Savannah. The gang is allegedly comprised of 15 to 20 members engaged in a number of criminal activities, including shootings, robberies, and the trafficking of narcotics.
Seven of the Defendants charged appeared before Judge Smith on Tuesday for their arraignments and detention hearings. Those Defendants included:
Dennis Lee Williams, 36,
Jermond Anderson Curtis, aka “Mon,” 27,
Adrian Tarazze Byrd, aka “Newie,” 40,
Shamon Antwon Williams, aka “Keith Anderson,” aka “Antonio Antwan Williams, 39,
Eugene Curtis, aka “Gene,” aka “Gene Williams,” aka “Ronnie Curtis,” aka “Eugene Curtis, Jr.,” 50,
Eusi Shango Sampson, 37, and
Felisha Dawn Byrd, 42.
U.S. Attorney Ed Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The Defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The operation was investigated by the FBI and SCMPD. Assistant United States Attorneys Tania Groover and Charlie Bourne are prosecuting the case for the United States. For additional questions, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
San Mateo Resident Pleads Guilty to Operating A Bay Area Prostitution Racketeering EnterpriseRead the Press Release
SAN FRANCISCO –Allen Fong pleaded guilty in federal court yesterday for his role in an international prostitution racketeering enterprise announced United States Attorney Brian J. Stretch and U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan Spradlin. The defendant acknowledged being part of an enterprise that recruited women and facilitated their travel and entry into the United States to work as prostitutes in brothels located in the Bay Area.
Fong, 59, of San Mateo, is one of ten defendants named in a broad-ranging indictment filed October 16, 2014. Fong pleaded guilty to all 32 counts charged in the indictment. In pleading guilty, Fong admitted that, from at least August 2006 through July 2014, he was involved in the day-to-day operations of an ongoing racketeering enterprise that recruited women from overseas to work in brothels located in Bay Area cities, including Foster City, Cupertino, San Bruno, San Mateo, and Santa Clara. His activities included renting apartments for use as brothels; arranging for telecommunications services for advertising and arranging appointments for sexual activity between prostitutes and their customers; and transferring proceeds in amounts of thousands of dollars from the United States to Singapore. Fong also admitted he met a co-conspirator at the San Francisco International Airport who was traveling from Singapore to the United States and drove her to an enterprise brothel where she was housed and worked as a prostitute.
In all, the defendant pleaded guilty to one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, in violation of 18 U.S.C. § 1962(d); one count of conspiracy to use interstate and foreign commerce to promote prostitution in aid of a racketeering enterprise, in violation of 18 U.S.C. §§ 371 and 1952(a)(3); eleven counts of use of interstate commerce to promote prostitution in aid of a racketeering enterprise, in violation of 18 U.S.C. §§ 1952(a)(3) and 2; one count of conspiracy to launder monetary instruments, in violation of 18 U.S.C. §§ 1956(h) and 1956(a)(1)(A)(i); nine counts of substantive money laundering, in violation of 18 U.S.C. § 1956(a)(1)(A)(i) and 2; one count of conspiracy to transport funds from the United States to a foreign country to promote unlawful activity, in violation of 18 U.S.C. §§ 1956(h) & 1956(a)(2)(A); seven counts of transporting funds from the United States to a foreign country to promote unlawful activity, in violation of 18 U.S.C. §§ 1956(a)(2)(A) and 2; and one count of conspiracy to transport an individual in interstate in interstate and foreign commerce for prostitution and importation of alien for immoral purpose, in violation of 18 U.S.C. §§ 371 & 2421, and 8 U.S.C. § 1328.
Fong is scheduled to be sentenced by the Honorable Richard Seeborg, U.S. District Judge, in San Francisco on October 25, 2016, at 2:30. p.m. The defendant is facing the following maximum statutory penalties for the offenses to which he has pleaded guilty:
Statute
Offense
Maximum Penalty
18 U.S.C. § 1962(d)
Conspiracy to conduct enterprise affairs through a pattern of racketeering activity
20 years’ imprisonment and a $250,000 fine, or twice the gross profits or other proceeds
18 U.S.C. §§ 371 and
1952(a)(3)
Conspiracy to use facility in interstate commerce to promote prostitution
5 years’ imprisonment
$250,000 fine, or twice the gross gain or gross loss, whichever is greater
18 U.S.C. §§ 1952(a)(3)
and 2
Use of facility in interstate commerce to promote prostitution
5 years’ imprisonment
$250,000 fine, or twice the gross gain or gross loss, whichever is greater
18 U.S.C. §§ 1956(h) and 1956(a)(1)(A)(i)
Conspiracy to launder monetary instruments
20 years’ imprisonment
$500,000 fine or twice the value of the monetary instrument or funds involved in the transmission or transfer, whichever is greater
18 U.S.C. § 1956(a)(1)(A)(i) and 2
Money laundering
20 years’ imprisonment
$500,000 fine or twice the value of the monetary instrument or funds involved in the transmission or transfer, whichever is greater
18 U.S.C. §§ 1956(h) and 1956(a)(2)(A)
Conspiracy to transport funds from the United States to a foreign country to promote unlawful activity
20 years’ imprisonment
$500,000 fine or twice the value of the monetary instrument or funds involved in the transmission or transfer, whichever is greater
18 U.S.C. §§ 371 & 2421; 8 U.S.C. § 1328
Conspiracy to transport an individual in interstate and foreign commerce for prostitution and importation of alien for immoral purpose
10 years’ imprisonment and $250,000 fine, or twice the gross gain or gross loss, whichever is greater.
In addition to prison terms and fines, assessments, terms of supervised release, and forfeitures may be imposed; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Deborah R. Douglas is prosecuting the case with the assistance of Lance Libatique. Assistant United States Attorney David Countryman is handling aspects of the forefeiture matters. The prosecution is the result of a joint investigation by the Department of Homeland Security, Homeland Security Investigations San Francisco Field Office, and the San Mateo Police Department.
Prior Felon from Albuquerque Charged with Armed Bank Robbery and Violating the Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Jason Blackwood, 43, of Albuquerque, N.M., was arraigned in federal court this morning on an indictment charging him with armed bank robbery, brandishing a firearm during a crime of violence, and being a felon in possession of a firearm. During this morning’s proceedings, Blackwood entered a not guilty plea to the indictment. He remains in federal custody pending trial.
Blackwood was arrested on June 1, 2016, on a criminal complaint charging him with the armed bank robbery of the Bank of the West at 780 Juan Tabo Blvd. NE in Albuquerque on that day. The complaint alleged that Blackwood entered the bank, pointed a handgun at a bank teller, and demanded money. After the bank teller responded to Blackwood’s demand for money, Blackwood left the bank.
Blackwood was charged by indictment on June 30, 2016, with armed bank robbery, brandishing a firearm during a crime of violence, and being a felon in possession of a firearm and ammunition. The indictment alleged that Blackwood committed the three crimes on June 1, 2016, in Bernalillo County, N.M. At the time, Blackwood was prohibited from possessing firearms or ammunition because he previously had been convicted of robbery and second degree commercial burglary.
If convicted, Blackwood faces a statutory maximum penalty of 25 years in prison on the armed bank robbery charge and a statutory maximum penalty of ten years in prison for being a felon in possession. If convicted of brandishing a firearm during a crime of violence, Blackwood faces a mandatory minimum penalty of seven years in prison, which must be served consecutive to the sentence imposed on other charges. Charges in criminal complaints and indictments are mere accusations. Defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Paul H. Spiers is prosecuting the case as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates under this initiative.
Owner of Mall Kiosk Businesses Pleads Guilty to Immigration and Money Laundering ChargesRead the Press Release
NEWPORT NEWS, Va. – Omer Gur, 36, of Raleigh, North Carolina, pleaded guilty today to charges relating to his leadership of a visa fraud conspiracy involving over 140 foreign workers from Israel.
According to the statement of facts filed with the plea agreement, Gur admitted that from 2012 through 2014, he operated several business entities known collectively as RASKO. During this time he and other co-conspirators illegally induced and recruited, for employment purposes, foreign nationals to enter the United States from Israel on B-2 visitor visas. Gur and the co-conspirators would then put them to work at mall-based kiosk business in Virginia (including in the Hampton Roads area), Georgia, Pennsylvania and New Jersey through which they sold Dead Sea Salt products. Gur and others paid for their travel to the United States, housed workers in leased apartments, transported workers to work locations and paid workers in cash, wire transfers and gift cards in order to avoid reporting workers and their earnings to employment and taxing authorities. From 2012 through 2014, RASKO earned over $14 million through its kiosk based sales.
To date, nine of the ten charged defendants in the case have been arrested (eight in the United States and one recently extradited from Romania). Gur is the fourth defendant to enter a plea of guilty.
Gur faces a maximum penalty of 25 years in prison and will be sentenced on October 27. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Robin Blake, Special Agent-in-Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington; John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office; and Bill A. Miller, Director of the Diplomatic Security Service for the U.S. Department of State, made the announcement after the plea was accepted by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Brian J. Samuels, Lisa R. McKeel and Kevin Hudson are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:16cr17.
North Dakota Man Sentenced to Three Years for Traveling with A Stolen Passport and Aggravated Identity Theft ChargesRead the Press Release
CHARLOTTE, N.C. –William Albert Ulmer, aka “Bill Ulmer,” 49, of West Dickinson, North Dakota, was sentenced today to three years in prison for traveling with a stolen passport and aggravated identity theft charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad, Jr. also sentenced Ulmer to three years of supervised release after he is released from prison.
Thomas Haycraft, Acting Special Agent in Charge of the Washington Field Office, Diplomatic Security Service, U.S. Department of State, joins U.S. Attorney Rose in making todays’ announcement.
According to filed court documents and today’s sentencing hearing, from about March 2009 to about December 23, 2010, Ulmer stole and used his brother’s passport, Wayne Jacob Ulmer, Jr. to travel between the United States and Costa Rica. Court records show that Ulmer used his brother’s passport to fly from Norfolk, Virginia, to San Jose, Costa Rica on March 11, 2009, where he resided for approximately 21 months. According to court records, at the time Ulmer used his brother’s passport to fly to Costa Rica, he was facing state charges in North Carolina related to a worthless check scheme. Court records show that Ulmer flew out of the United States in March 2009, failing to appear to a court hearing related to the pending state charges, scheduled for April 15, 2009, in Dare County Criminal Superior Court.
Ulmer used his brother’s passport again for his return trip to the United States. According to court records, Ulmer left Costa Rica in December 2010, around the time Costa Rican authorities began to investigate the disappearance of Ms. Barbara Strunkova, Ulmer’s live-in girlfriend at the time. According to court records, Ulmer landed at Charlotte Douglas International Airport on December 23, 2010, and presented his brother’s stolen passport to U.S. Customs officials, entering the United States under his brother’s name. After clearing U.S. Customs, Ulmer then used the stolen passport again to continue his air travel to his final destination in Norfolk, Virginia.
Ulmer pleaded guilty in September 2015 to one count of possession of identification document with intent to defraud and one count of aggravated identity theft. Ulmer is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement U.S. Attorney Rose thanked the U.S. Department of State’s Diplomatic Security Service for handling the investigation and the Kill Devil Hills Police Department for their assistance with this case.
Assistant U.S. Attorney Thomas O’Malley, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
New Orleans Man Pleads Guilty to Cocaine DistributionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JEFFERY WILSON, age 31, of New Orleans, pled guilty today to two counts of distributing cocaine hydrochloride and cocaine base as charged in a Superseding Bill of Information.
According to court documents, WILSON made a sale of cocaine hydrochloride on May 13, 2014, to two confidential informants working with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in the area near the former Melpomene Housing Development near Martin Luther King Boulevard. On May 30, 2014, WILSON made a second sale of cocaine base (or crack) to the same two informants.
WILSON is facing a term of imprisonment of not more than twenty years for each count, a fine of not more than $1,000,000 and at least three years of supervised release following any term of imprisonment. U.S. District Judge Kurt D. Engelhardt set sentencing for October 12, 2016.
U.S. Attorney Polite praised the work of the ATF in leading this investigation along with members of the NOPD led Multi-Agency Gang Unit (MAG UNIT). Assistant United States Attorneys Edward Rivera, Maurice Landrieu, Jr., Nolan Paige and Nicholas Moses were in charge of the prosecution.
New Jersey Woman Admits Conspiracy to Circumvent Minority Owned Business Requirements for Federal ProjectsRead the Press Release
NEWARK, N.J. –A Union County, New Jersey, woman today admitted accepting kickbacks in exchange for using her company as a “straw” contractor that allowed non-minority owned firms to circumvent regulations on federally funded transportation projects, U.S. Attorney Paul J. Fishman announced.
Carol Sanzo, 69, of Cranford, New Jersey, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an information charging her with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
The U.S. Department of Transportation requires that general contractors seeking to perform certain work on federally funded transportation projects must either subcontract, or demonstrate a good faith effort to subcontract, a percentage of the work to Disadvantaged Business Enterprises (DBEs), which include small businesses that are at least 51 percent owned by women, Hispanic Americans, African Americans, Native Americans, and Asian Americans.
Sanzo owned Sanzo Ltd., a purported broker and supplier of construction materials that she operated as a DBE. Sanzo admitted that in return for kickbacks, her company would act as a “straw” or “pass-through” DBE and accept payment for goods and services that were actually provided by non-DBE contractors on federally funded projects.
For instance, Sanzo admitted that from 2008 through July 2011, she acted as a pass-through between a prime contractor and a non-DBE fuel provider on the Willis Avenue Bridge Project in New York. In order to circumvent the DBE requirements, Sanzo submitted multiple documents that falsely represented that Sanzo Ltd. was supplying fuel to the Willis Avenue Bridge Project when it was actually being supplied by the non-DBE fuel company.
The wire fraud conspiracy to which Sanzo pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for Oct. 18. 2016.
U.S. Attorney Fishman credited special agents with the U.S. Department of Transportation, Office of Inspector General, under the direction of Special Agent in Charge Douglas Shoemaker, and criminal investigators of the Port Authority, Office of Inspector General, under the direction of Inspector General Michael Nestor, with the investigation leading to today’s guilty plea.
The government is represented by Special Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Economic Crimes Unit and Barbara Ward, Acting Chief of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit in Newark.
Defense counsel: Raymond Brown, Esq., Woodbridge, New Jersey
New Jersey Medical Device Manufacturer Admits Selling Contaminated Ultrasound Gel; Court Orders Permanent InjunctionRead the Press Release
Pharmaceutical Innovations Inc., based in Newark, New Jersey, pleaded guilty today to criminal charges and resolved a civil lawsuit arising from the company’s distribution of ultrasound gel contaminated with bacteria, the Department of Justice announced. The devices at issue are gels that doctors and hospitals use to take ultrasound scans, sonograms, EKGs and similar procedures.
Pharmaceutical Innovations Inc. pleaded guilty before U.S. District Court Judge Esther Salas in Newark federal court to an information charging it with two misdemeanor counts of introducing adulterated medical devices into interstate commerce. In addition to placing the company on two years of probation, Judge Salas ordered the company to pay a criminal fine of $50,000 and to forfeit an additional $50,000 – the approximate value of the adulterated gel.
In a related civil settlement, which was also resolved today, Pharmaceutical Innovations agreed to the forfeiture and destruction of particular gel products that tested exceptionally high for infectious bacteria and agreed to a permanent injunction that requires independent experts and auditors to conduct regular inspections and certifications at the company’s expense.
“The sale of adulterated medical devices puts patients at great risk,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Device manufacturers that fail to comply with good manufacturing practices, thereby threatening patient safety, will be held accountable.”
“Pharmaceutical Innovations shipped defective products that exposed hospital patients to dangerous bacterial contamination,” said U.S. Attorney Paul J. Fishman for the District of New Jersey. “Today’s plea agreement and civil settlement require Pharmaceutical Innovations to accept responsibility for the contamination and take the necessary steps to prevent it from happening again.”
According to documents filed in the case and statements made in court:
Doctors and hospitals use ultrasound gel to take ultrasound scans, sonograms, EKGs and similar procedures. In February 2012, a Michigan hospital reported that 16 surgical patients were infected with Pseudomonas aeruginosa, a bacterial pathogen. The hospital believed the infections were associated with a particular lot of Pharmaceutical Innovations ultrasound gel.
A sample of that lot then tested positive for Pseudomonas aeruginosa. A second lot was shipped in April 2012 and found to be contaminated with two types of bacteria, Pseudomonas aeruginosa and Klebsiella oxytoca, both at the Michigan hospital, and at the company’s Newark facility.
The U.S. Department of Justice filed suit in October 2014 against Pharmaceutical Innovations and its founder, owner, and longtime president, Gilbert Buchalter. (Gilbert Buchalter was later dropped from the case; his son, Charles Buchalter, became company president and was added to the case.) The civil complaint alleged that the company was selling medical devices that the U.S. Food and Drug Administration (FDA) had not approved or cleared, that it was violating current good manufacturing practices and that it failed to take required actions after receiving reports in February 2012 of serious injuries associated with its products.
The Consent Decree of Permanent Injunction requires Pharmaceutical Innovations to submit a detailed compliance plan to FDA within 20 days, and to have outside experts certify in writing by Oct. 31, that the company meets current good manufacturing practice requirements. The FDA will then conduct a follow-up inspection at the company’s expense. For the next three years, Pharmaceutical Innovations must hire outside auditors to conduct and submit detailed audit reports to FDA. In addition, the company will forfeit and pay for the destruction of contaminated “Other Sonic Gel” that the U.S. Marshals Service seized in April 2012 as part of a seizure and forfeiture case filed by the United States.
The criminal investigation in this matter was handled by special agents of the FDA’s Office of Criminal Investigations’ New York Field Office, under the direction of Acting Special Agent in Charge Jeffrey Ebersole.
The criminal prosecution was handled by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office for the District of New Jersey’s Health Care and Government Fraud Unit, with the assistance of Associate Chief Counsel Lynn M. Marshall of the Department of Health and Human Services’ Office of General Food-Food and Drug Division. The civil cases were handled by Trial Attorney Daniel K. Crane-Hirsch of the Civil Division’s Consumer Protection Branch and by Senior Counsel Michele Lee Svonkin and Associate Chief Counsel Julie A. Dohm of the Department of Health and Human Services’ Office of General Counsel–Food and Drug Division. Additional assistance in the civil cases was provided by Assistant U.S. Attorneys Lucy Muzzy, Marion Purcell, Peter Gaeta and Jacob Elberg of the U.S. Attorney’s Office for the District of New Jersey.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of New Jersey, visit its website at https://www.justice.gov/usao/district/nj.
New Jersey Medical Device Manufacturer Admits Selling Contaminated Ultrasound GelRead the Press Release
NEWARK, N.J. – Pharmaceutical Innovations Inc., based in Newark, New Jersey, pleaded guilty today to criminal charges and resolved a civil suit arising from the company’s distribution of ultrasound gel contaminated with bacteria, U.S. Attorney Paul J. Fishman of the District of New Jersey and Principal Deputy Assistant Attorney General Benjamin C. Mizer of Justice Department’s Civil Division announced.
Pharmaceutical Innovations pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging it with two misdemeanor counts of introducing adulterated medical devices into interstate commerce. In addition to placing the company on two years of probation, Judge Salas ordered the company to pay a criminal fine of $50,000 and to forfeit an additional $50,000 – the approximate value of the adulterated gel.
In the civil settlement, which was also resolved today, Pharmaceutical Innovations agreed to the forfeiture and destruction of particular gel products that tested exceptionally high for infectious bacteria and agreed to a permanent injunction that requires independent experts and auditors to conduct regular inspections and certifications at the company’s expense.
“Pharmaceutical Innovations shipped defective products that exposed hospital patients to dangerous bacterial contamination,” U.S. Attorney Fishman said. “Today’s plea agreement and civil settlement require Pharmaceutical Innovations to accept responsibility for the contamination and take the necessary steps to prevent it from happening again.”
“The sale of adulterated medical devices puts patients at great risk,” said Principal Deputy Assistant Attorney General Mizer. “Device manufacturers that fail to comply with good manufacturing practices, thereby threatening patient safety, will be held accountable.”
According to documents filed in the case and statements made in court:
Doctors and hospitals use ultrasound gel to take ultrasound scans, sonograms, EKGs, and similar procedures. In February 2012, a Michigan hospital reported that 16 surgical patients were infected with Pseudomonas aeruginosa, a bacterial pathogen. The hospital believed the infections were associated with a particular lot of Pharmaceutical Innovations ultrasound gel.
A sample of that lot then tested positive for Pseudomonas aeruginosa. A second lot was shipped in April 2012 and found to be contaminated with two types of bacteria, Pseudomonas aeruginosa and Klebsiella oxytoca.
The U.S. Department of Justice filed a civil suit in October 2014 against Pharmaceutical Innovations and its founder, owner, and longtime president, Gilbert Buchalter (Gilbert Buchalter was later dropped from the case; his son, Charles Buchalter, became company president and was added to the case). The civil complaint alleged that the company was selling medical devices that the Food and Drug Administration (FDA) had not approved or cleared, that it was violating current good manufacturing practices, and that it failed to take required actions after receiving reports in February 2012 of serious injuries associated with its products.
The Consent Decree of Permanent Injunction requires Pharmaceutical Innovations to submit a detailed compliance plan to FDA within 20 days, and to have outside experts certify in writing by Oct. 31, 2016 that the company meets current good manufacturing practice requirements. At the company’s expense, the FDA will then conduct a follow-up inspection. For the next three years, Pharmaceutical Innovations must hire outside auditors to conduct and submit detailed audit reports to FDA. In addition, the company will forfeit and pay for the destruction of contaminated gel that the U.S. Marshals Service seized in April 2012 as part of a seizure and forfeiture case filed by the United States.
The investigations leading to the corporate guilty plea and civil settlements were conducted by special agents of the FDA’s Office of Criminal Investigations’ New York Field Office, under the direction of Acting Special Agent in Charge Jeffrey Ebersole.
Assistant U. S. Attorney R. David Walk Jr. of the District of New Jersey’s Health Care and Government Fraud Unit represented the government in the criminal prosecution, with the assistance of Associate Chief Counsel Lynn M. Marshall of the Department of Health and Human Services’ Office of General Counsel-Food and Drug Division. The government was represented in the civil cases by Trial Attorney Daniel K. Crane-Hirsch of the Department’s Consumer Protection Branch, Senior Counsel Michele Lee Svonkin and Associate Chief Counsel Julie A. Dohm of the Department of Health and Human Services’ Office of General Counsel–Food and Drug Division, Assistant U.S. Attorney Lucy Muzzy of the District of New Jersey’s Health Care and Government Fraud Unit, and Peter Gaeta of the District of New Jersey’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Fishman reorganized the health care fraud practice at the U.S. Attorney’s Office of the District of New Jersey, including creating a stand-alone Health Care and Government Fraud Unit, which handles both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.29 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: A. Ross Pearlson Esq., West Orange, New Jersey
Navajo Man from To’hajiilee Arraigned on Indictment Charging Him with Assaulting a Federally Commissioned Tribal OfficerRead the Press Release
ALBUQUERQUE – Bruce Piaso, 34, an enrolled member of the Navajo Nation from To’hajiilee, N.M., was arraigned today in federal court in Albuquerque, N.M., on an indictment charging him with assaulting a federal officer. Piaso entered a not guilty plea to the indictment and was ordered detained pending trial which has yet to be scheduled.
Piaso was arrested on June 3, 2016, on a criminal complaint charging him with assaulting a federal officer. According to the complaint, Piaso allegedly attacked an officer of the Navajo Nation Division of Public Safety on May 28, 2016, on the Navajo Indian Reservation by punching and kicking the officer while attempting to avoid arrest. Piaso allegedly jumped on the officer and attempted to take control of the officer’s weapon. At the time of the alleged assault, the tribal officer was commissioned as a Special Law Enforcement Officer by the BIA’s Office of Justice Services. Piaso was taken into tribal custody on May 28, 2016, and remained in tribal custody until his arrest on the federal charge.
Piaso was indicted on June 30, 2016, and charged with assault on a federal officer resulting in bodily injury, and assault on a federal officer with a dangerous weapon. The indictment alleged that Piaso committed the crimes on May 28, 2016, in Cibola County, N.M.
If convicted of the crimes charged in the indictment, Piaso faces a maximum penalty of 20 years in federal prison. Charges in complaints and indictments are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Nicholas Marshall is prosecuting the case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Cibola County, under this initiative.
Morgantown man pleads guilty to synthetic marijuana distribution, money laundering chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Randolph Kocan, 61, of Morgantown, West Virginia, pled guilty to distribution of synthetic marijuana and money laundering, United States Attorney William J. Ihlenfeld, II, announced.
Kocan was the manager of Mid Nite Adult in Morgantown, WV where he sold synthetic cannabinoids, commonly referred to as “spice”, “K2”, “incense”, or “fake weed” for nearly two years. Synthetic cannabinoids are designer drugs that resemble a controlled substance in molecular structure and actual or intended physiological effect.
He pled guilty today to one count of “Conspiracy to Distribute Synthetic Cannabinoids and Schedule I Controlled Substance Analogue,” and one count of “Engaging in a Monetary Transaction with Cash Derived from Specified Unlawful Activity.” He faces up to twenty years in prison and a fine of up to $1,000,000 for the conspiracy charge and up to ten years in prison and a fine of up to $250,000 for the monetary laundering charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force and the Three Rivers Drug Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Mission Man Sentenced for Abusive Sexual Contact with a Child Under 12 Years OldRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Abusive Sexual Contact was sentenced on July 5, 2016, by U.S. District Judge Roberto A. Lange.
Graham Brody Good Shield, age 20, was sentenced to 9 years in custody, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution has been left open for 90 days.
Good Shield was indicted on two counts of Aggravated Sexual Abuse of a Child by a federal grand jury on August 11, 2015. He pled guilty to Abusive Sexual Contact on March 29, 2016.
In June 2015, Good Shield was at a home in Rosebud, when he began drinking alcohol. An 11-year-old child, the victim, was also at the home. Good Shield intentionally made sexual contact with the victim and knew that the victim was a minor at the time.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Good Shield was immediately turned over to the custody of the U.S. Marshals Service.
Metairie Man Sentenced for Receiving Images and Videos Depicting the Sexual Victimization of ChildrenRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ANDREW HUTCHINSON, age, 25, of New Orleans, was sentenced today after previously pleading guilty to crimes involving the sexual exploitation of children. Specifically, HUTCHINSON pleaded guilty to receiving and attempting to receive sexually explicit images of children.
U.S. District judge Ivan L.R. Lemelle sentenced HUTCHINSON to 60 months imprisonment, to be followed by 10 years of supervised release. Additionally, HUTCHINSON is required to register as a sex offender pursuant to the Sex Offender Registration Notification Act. HUTCHINSON was also ordered to pay $12,000 in restitution ($2,000 to victims in each of the six series that requested restitution).
According to court documents, HUTCHINSON used a mobile cellular phone chat application to converse with a twelve-year-old boy in Seattle, Washington, between July 24, 2014, and July 27, 2014. HUTCHINSON and the boy exchanged approximately 113 chat messages. Knowing that the boy was only twelve, HUTCHINSON requested and received approximately fifteen sexually explicit images of the boy via the messaging application. In exchange, HUTCHINSON provided the boy with sexually explicit images of minor females as young as approximately five years old. HUTCHINSON also provided the boy with a link to an online cloud storage account that contained approximately 1766 images and 19 videos depicting minor females as young as approximately eighteen months old being forced to engage in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
Mescalero Apache Man Pleads Guilty to Failing to Update his Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Dabert Wayne Comanche, 34, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., pled guilty this morning in federal court in Albuquerque, N.M., 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.
Comanche was charged in a criminal complaint on Feb. 23, 2016, with violating SORNA by failing to update his sex offender registration. On March 23, 2016, Comanche was indicted on that same charge. According to the indictment, Comanche failed to update his registration between April 7, 2014 and Feb. 20, 2016, San Juan County, N.M.
According to the criminal complaint, Comanche was convicted of sexual abuse of a minor in Indian Country in April 2003 and was sentenced to a 78-month prison term. On June 1, 2011, Comanche registered as a sex offender in Mescalero, and agreed to notify the jurisdiction to which he moved if he relocated outside of the jurisdiction. Thereafter, Comanche failed to register as a sex offender with the Mescalero Apache Tribe.
During today’s hearing, Comanche pled guilty to the indictment and admitted that he was convicted of aggravated sexual abuse of a child in April 2003, and was required to register as a sex offender as a result of that conviction. Comanche further admitted that he last reported to the Mescalero Apache Nation on Jan. 7, 2014 and should have reported in April 2014, but failed to comply.
At sentencing, Comanche faces a maximum statutory penalty of ten years in federal prison followed by not less than five years of supervised release. Comanche will be required to register as a sex offender following his prison sentence.
This case was investigated by the U.S. Marshals Service and the San Juan County Sheriff’s Office. Assistant U.S. Attorney Nicholas Marshall is prosecuting the case.
Memphis Man Pleads to Child Porn Production, Facing up to 170 YearsRead the Press Release
Memphis, TN – A man who created child pornography and engaged in sexually explicit conduct with two prepubescent female minors has entered a plea to his criminal conduct. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the plea today.
According to information presented in court, Terrence Milam, 37, of Memphis, Tennessee, produced photographs and videos of himself sexually abusing two female minors between October 2013 and late January 2015. He used a smartphone to record the videos and take the images.
The abuse of the two victims came to light when a Memphis Police Department (MPD) officer on routine patrol discovered Milam and one of the children parked in a deserted school parking lot. When the officer approached the vehicle, he saw Milam struggling to put on his pants. Law enforcement obtained search warrants to review the contents of two cell phones found in the vehicle. This led to discovery of sexually explicit images and the identification of a second victim.
Milam’s abuse of the two children began when one of the victims was approximately nine years old and the other was 11.
On Tuesday, July 5, 2016, Milam entered an Alford plea before U.S. District Judge Samuel H. Mays to five counts of production of child pornography and one count of possession of child pornography.
Milam is scheduled to be sentenced by Judge Mays on October 6, 2016. He faces a minimum sentence of 15 years imprisonment and a maximum of 170 years.
Milam also faces charges of child rape in state court.
This case is being investigated by the FBI’s Child Exploitation Task Force and the MPD.
Assistant U.S. Attorney Deb Ireland is prosecuting this case on the government’s behalf.
Media Advisory: Former Superintendent of Effigy Mounds National Monument to be SentencedRead the Press Release
CEDAR RAPIDS, IOWA – The United States Attorney’s Office for the Northern District of Iowa will hold a media availability opportunity this Friday to discuss the sentencing of the former superintendent of Effigy Mounds National Monument.
The Assistant United States Attorney who prosecuted the case will be joined by National Park Service personnel.
Event Details
When: Friday, July 8, 2016
Where: United States Federal Courthouse, Second Floor, 111 7th Avenue S.E., Cedar Rapids, Iowa
Time: 10:45 a.m. (or immediately after sentencing, whichever first occurs).
Press interested in attending should contact AUSA Steve Young. His contact information is listed above.
A press release will be will be available.
Maryville Sex Offender Pleads Guilty to Child Porn, Faces at Least 15 Years in PrisonRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Maryville, Mo., man who is a registered sex offender pleaded guilty in federal court today to charges related to child pornography.
Edward Grimes, 58, of Maryville, pleaded guilty before U.S. Chief District Judge Greg Kays to the charges contained in a Sept. 19, 2014, federal indictment. Grimes, a registered sex offender, has prior felony convictions for sexual abuse and a criminal sexual act in New York.
By pleading guilty today, Grimes admitted that he attempted to distribute child pornography over the Internet on March 29, 2013; that he attempted to receive child pornography over the Internet on Dec. 31, 2013; and that he possessed child pornography on Feb. 12, 2014. Grimes must forfeit to the government two desktop computers, a laptop computer, four hard drives and a thumb drive that were used to commit the offenses.
The government also filed notice today of intent to rely on Grimes’s prior felony sex offenses for purposes of sentencing, which would subject Grimes to a mandatory minimum sentence of 15 years in federal prison without parole for each of the counts of attempting to distribute and to receive child pornography over the Internet, and to a mandatory minimum sentence of 10 years in federal prison without parole for possessing child pornography. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Man facing al-Qaeda terrorism charges indicted for plotting to murder federal judge presiding over his caseRead the Press Release
A Toledo grand jury returned a three-count indictment against Yahya Farooq Mohammad today, charging him with soliciting the murder of a federal judge, announced U.S. Attorney Barbara L. McQuade for the Eastern District of Michigan.
McQuade was joined in the announcement by Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Field Division and U.S. Marshal Peter J. Elliott of the Northern District of Ohio.
Mohammad, 37, from the United Arab Emirates, was charged with attempted first degree murder of a federal officer, solicitation to commit a crime of violence and use of interstate commerce facilities in commission of murder for hire.
Mohammad was indicted last year on charges of conspiring with three other men to travel to Yemen to provide thousands of dollars to Anwar Al-Awlaki in an effort to support violent jihad against U.S. military personnel in Iraq, Afghanistan and throughout the world. That case remains pending and is assigned to U.S. District Judge Jack Zouhary of the Northern District of Ohio.
In the most recent charges, Mohammad is accused of soliciting someone to kidnap and murder Judge Zouhary.
On April 8, Mohammad allegedly told another inmate in the Lucas County Corrections Center in Toledo that he wanted Zouhary kidnapped and murder. That inmate then introduced Mohammad to an undercover FBI employee, according to the indictment.
The indictment alleges that Mohammad told the inmate that he was willing to pay $15,000 to have Zouhary killed. Mohammad also allegedly told the undercover employee that he could send a down payment through a mail courier or that the undercover could meet Mohammad’s wife in Chicago to pick up the money. When asked when he wanted the murder committed, Mohammad stated: “The sooner would be good, you know,” according to the indictment.
On May 5, Mohammad’s wife, identified in the indictment as N.T., met the undercover agent at a post office in Bolingbrook, Illinois, and provided $1,000 in cash inside a white envelope, according to the indictment.
On May 11, Mohammad informed the inmate that the rest of the money for the murder was coming from Dubai to Texas to Chicago to N.T., and then to the undercover agent, according to the indictment.
According to the indictment, on May 16, the undercover agent and N.T. met, and the undercover agent showed N.T. a photograph that purported to be of Zouhary’s dead body. The undercover agent told N.T. he needed the rest of the money owed to him. N.T. said she would contact Mohammad and then she would contact the undercover agent, according to the indictment.
“According to the charges in the indictment, this defendant not only attempted to have a federal judge murdered, but he did so to obstruct justice in a terrorism case against him,” said U.S. Attorney McQuade. “This prosecution seeks to hold the defendant accountable for attempting to victimize the judge and for trying to undermine our criminal justice system.”
“Conspiring to have a judge killed is not the way to avoid being prosecuted - now Mohammad will be held accountable for additional serious federal charges,” said Special Agent in Charge Anthony. “The FBI will continue to work with our partners to ensure the safety of those that uphold the rule of law. “
“Protecting the federal judiciary is our highest priority,” said U.S. Marshal Elliott. “This is an example where we were able to work with our law enforcement partners to protect a judge and bring charges against a dangerous individual.”
The case is prosecuted by Assistant U.S. Attorneys Michael Freeman and Matthew Shepherd of the Northern District of Ohio following an investigation by the FBI. The U.S. Attorney for the Northern District of Ohio has recused herself from this case.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record (if any), the defendant’s role in the offenses and the characteristics of the violations. Counts one and two of the indictment carry a maximum statutory penalty of 20 years in prison and count three carries a statutory maximum penalty of 10 years in prison.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Man Sentenced to 5 1/2 Years in Prison for Firearm and Drug Offense Following Dooly County Traffic StopsRead the Press Release
United States Attorney G.F. “Pete” Peterman, III announces that Kenneth Wallace, age 44, of Hayneville, Georgia, was sentenced today to serve 5 ½ years in prison for possession with intent to distribute Methamphetamine and possession of a firearm by a convicted felon. U.S. District Court Judge Marc T. Treadwell handed down the sentence in Macon.
Mr. Wallace entered a plea of guilty to the charges on February 18, 2016. The facts stipulated in his plea agreement state that on February 1, 2015, Mr. Wallace’s vehicle was stopped by the Dooly County Sheriff’s Office after the Sheriff’s Office received information about suspicious vehicles in the area of the prison. During the stop, Mr. Wallace gave officer’s permission to search his vehicle where they found a semi-automatic rifle. Because Mr. Wallace had previously been convicted of a felony offense and was not allowed to possess a firearm, officers took him into custody. While traveling to the jail, Mr. Wallace admitted that he had methamphetamine in his groin. Upon arriving at the jail, officers seized what was later confirmed to be 6.95 grams of methamphetamine. Mr. Wallace admitted that he intended to sell this methamphetamine.
On March 26, 2015, Mr. Wallace was again stopped by the Dooly County Sheriff’s Office. This traffic stop was following a call regarding a domestic dispute. Mr. Wallace spoke with officers about the dispute and gave officer’s permission to search his vehicle where they found a 12-gauge pump action shotgun with a shortened barrel and obliterated serial number. After officers found the shotgun, Mr. Wallace fled the scene on foot.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Dooly County Sheriff’s Office. Assistant United States Attorney Beth Howard prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Man Sentenced to 10 Years in Prison for Attempted Online Enticement of A MinorRead the Press Release
Amado Becerra Lomas, age 33 of East Dublin, Georgia, was sentenced in Macon today to serve 10 years in prison for attempted online enticement of a minor announced United States Attorney G.F. “Pete” Peterman, III. The sentence was handed down by U.S. District Court Judge Marc T. Treadwell. Mr. Lomas’ incarceration is to be followed by a lifetime of supervision and registration as a sex offender. Mr. Lomas, a citizen of Mexico, also faces potential consequences with respect to his immigration status.
Mr. Lomas entered a plea of guilty to the charge on February 18, 2016. Mr. Lomas admitted in his plea agreement that he responded to an online advertisement posted during an undercover operation conducted by the Federal Bureau of Investigation. From March 16, 2015, through March 21, 2015, Mr. Lomas talked online and via text message with whom he believed to be a 14-year old female named “M.C.” In reality, M.C. was an undercover agent. During his conversations, Mr. Lomas was told that M.C. would be in Macon, Georgia with her mother on a business trip and would be alone in a hotel while her mother was at work. Mr. Lomas indicated that he and M.C. would “have fun together” when they were alone in her hotel room and agreed to meet M.C. on March 21, 2015. Mr. Lomas told M.C. that he was “eager to be with” her and that he wanted to be with her in bed and have sex with her. Mr. Lomas traveled to the hotel in Macon, Georgia, where M.C. indicated she was located. Mr. Lomas proceeded to a hotel room and was encountered by law enforcement officers. Mr. Lomas agreed to speak with law enforcement and acknowledged that he was at the hotel to have sex with a minor. Law enforcement officers found that Mr. Lomas had two condoms with him.
This case was investigated by the Federal Bureau of Investigation (FBI) with the assistance of the FBI’s Metro Atlanta Child Exploitation Task Force and the Bibb County Sheriff’s Office. Assistant United States Attorney Beth Howard prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Man Pleads Guilty to Scheme to Illegally Buy and Smuggle Guns for Members of the Indonesian Secret ServiceRead the Press Release
CONCORD, N.H. – Audi N. Sumilat, a resident of El Paso, Texas, pleaded guilty in federal court to participating in a scheme to illegally buy numerous guns and then smuggle them out of the country for the benefit of members of the protective security detail of the President and the Vice President of the Republic of Indonesia -- also known as the Indonesian Presidential Guard. Sumilat pleaded guilty to one count of conspiracy to make false statements in connection with the acquisition of firearms, to make false statements in records required to be kept by federal firearms dealers and to smuggle firearms from the U.S. Sumilat is 36 years old.
According to statements made during his plea hearing, Sumilat joined a conspiracy to buy guns in Texas and New Hampshire for members of the Indonesian Presidential Guard with the understanding that the guns then would be smuggled out of the U.S. Specifically, Sumilat – on active duty with the U.S. Army – admitted that he and three members of the Presidential Guard came up with the plan in October 2014, when they were all stationed together for training in Fort Benning, Georgia. Sumilat further admitted that in September and October 2015, as part of the plan, he purchased guns in Texas for members of the Indonesian Presidential Guard that members of that protective detail could not lawfully buy in the U.S. themselves. Sumilat also admitted that, to facilitate those purchases, he certified to the gun dealers from which he bought the guns that he was the actual buyer of the guns even though the actual buyers were the members of the Presidential Guard. Sumilat further admitted that he then shipped the guns to a co-conspirator, Feky R. Sumual, in New Hampshire who delivered them and other firearms to members and representatives of members of the Presidential Guard, who were in the U.S. on official state visits both in Washington, D.C., and with the U.N. General Assembly in New York, N.Y. Finally, Sumilat acknowledged that, he understood that the members of the Presidential Guard then would smuggle the illegally purchased guns from the U.S. to Indonesia. Lawfully exporting the guns – which were included as defense articles on the U.S. Munitions List – required both an exporter’s license and a license covering the specific guns exported. No such licenses had been issued.
United States Attorney Emily Gray Rice commented, “The consequences of international gun trafficking can be grave. Firearms exported overseas illegally can easily end up in the wrong hands. International gun trafficking will be prosecuted to the fullest extent possible to protect innocent individuals, both American and foreign, from the criminal use of U.S. weapons abroad.” United States Attorney Rice added, “The fact that members of another country’s security force were the immediate beneficiaries of this scheme presented some unique challenges to this investigation. I am grateful for the incredibly valuable work of our law enforcement partners in detecting this scheme and in developing the evidence needed to shut it down.”
Lawrence Panetta, Acting Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco and Firearms stated, “Straw purchasing of firearms is one of the ways firearms are trafficked from legal to illegal commerce. With its federal, state and local law enforcement partners, ATF will continue to pursue and arrest anyone who commits this criminal act; where firearms are surreptitiously purchased, possessed and unlawfully transferred into the hands of those wanting to commit more crime.”
Sumilat will be sentenced on October 11, 2016. He faces a maximum sentence of five years and a fine of $250,000. One of Sumilat’s co-conspirators, Feky R. Sumual, also has been charged and is presently scheduled for trial on July 19, 2016.
This matter was investigated by the Bureau of Alcohol, Tobacco and Firearms in both Manchester, N.H., and in El Paso, Texas, as well as Immigration and Customs Enforcement, Homeland Security Investigations, in Manchester, N.H. The Bureau of Diplomatic Security of the U.S. Department of State, the Dover (N.H.) Police Department and the Indonesian National Police provided important support. The case is being prosecuted by Assistant United States Attorney Bill Morse.
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Man Facing Al-Qaeda Terrorism Charges Indicted for Plotting to Murder Federal Judge Presiding over His CaseRead the Press Release
A Toledo, Ohio, grand jury returned a three-count indictment against Yahya Farooq Mohammad today, charging him with soliciting the murder of a federal judge, announced U.S. Attorney Barbara L. McQuade for the Eastern District of Michigan.
U.S. Attorney McQuade was joined in the announcement by Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Field Division and U.S. Marshal Peter J. Elliott of the Northern District of Ohio.
Mohammad, 37, from the United Arab Emirates, was charged with attempted first degree murder of a federal officer, solicitation to commit a crime of violence and use of interstate commerce facilities in commission of murder for hire.
Mohammad was indicted last year on charges of conspiring with three other men to travel to Yemen to provide thousands of dollars to Anwar Al-Awlaki in an effort to support violent jihad against U.S. military personnel in Iraq, Afghanistan and throughout the world. That case remains pending and is assigned to U.S. District Judge Jack Zouhary of the Northern District of Ohio.
In the most recent charges, Mohammad is accused of soliciting someone to kidnap and murder Judge Zouhary.
On April 8, Mohammad allegedly told another inmate in the Lucas County Corrections Center in Toledo that he wanted Zouhary kidnapped and murder. That inmate then introduced Mohammad to an undercover FBI employee, according to the indictment.
The indictment alleges that Mohammad told the inmate that he was willing to pay $15,000 to have Zouhary killed. Mohammad also allegedly told the undercover employee that he could send a down payment through a mail courier or that the undercover could meet Mohammad’s wife in Chicago to pick up the money. When asked when he wanted the murder committed, Mohammad stated: “The sooner would be good, you know,” according to the indictment.
On May 5, Mohammad’s wife, identified in the indictment as N.T., met the undercover agent at a post office in Bolingbrook, Illinois, and provided $1,000 in cash inside a white envelope, according to the indictment.
On May 11, Mohammad informed the inmate that the rest of the money for the murder was coming from Dubai to Texas to Chicago to N.T., and then to the undercover agent, according to the indictment.
According to the indictment, on May 16, the undercover agent and N.T. met, and the undercover agent showed N.T. a photograph that purported to be of Zouhary’s dead body. The undercover agent told N.T. he needed the rest of the money owed to him. N.T. said she would contact Mohammad and then she would contact the undercover agent, according to the indictment.
“According to the charges in the indictment, this defendant not only attempted to have a federal judge murdered, but he did so to obstruct justice in a terrorism case against him,” said U.S. Attorney McQuade. “This prosecution seeks to hold the defendant accountable for attempting to victimize the judge and for trying to undermine our criminal justice system.”
“Conspiring to have a judge killed is not the way to avoid being prosecuted - now Mohammad will be held accountable for additional serious federal charges,” said Special Agent in Charge Anthony. “The FBI will continue to work with our partners to ensure the safety of those that uphold the rule of law. “
“Protecting the federal judiciary is our highest priority,” said U.S. Marshal Elliott. “This is an example where we were able to work with our law enforcement partners to protect a judge and bring charges against a dangerous individual.”
The case is prosecuted by Assistant U.S. Attorneys Michael Freeman and Matthew Shepherd of the Northern District of Ohio following an investigation by the FBI. The U.S. Attorney for the Northern District of Ohio has recused herself from this case.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record (if any), the defendant’s role in the offenses and the characteristics of the violations. Counts one and two of the indictment carry a maximum statutory penalty of 20 years in prison and count three carries a statutory maximum penalty of 10 years in prison.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Loose Creek Sex Offender Sentenced for Possessing Child PornRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Loose Creek, Mo., sex offender was sentenced in federal court today for possessing child pornography.
Richard Dale Hays, 50, of Loose Creek, was sentenced by U.S. District Judge Stephen R. Bough to seven years and three months in federal prison without parole, which is the toughest penalty recommended under the federal sentencing guidelines.
On Feb. 1, 2016, Hays pleaded guilty to possessing child pornography.
According to court documents, Google notified law enforcement on Oct. 21, 2014, that an image of child pornography had been uploaded to Hays’s e-mail account. Officers executed a search warrant at his residence. The image which was uploaded was not located on any of the phones searched, and the only computer found in the home had its hard drive removed. Hays reported that he had removed and thrown away the hard drive.
According to court documents, Hays committed this offense after a long history of failed supervision by probation and parole officers. Throughout supervision, Hays has refused sexual offender counseling and treatment.
Hays was convicted of rape and attempted rape in Boone County, Mo., in 1985 and sentenced to 25 years in state prison. In both offenses, Hays broke into a home, and with the use of a knife either forced a female victim to have sexual intercourse with him, or attempted to force the victim to have sexual intercourse with him.
After being released on parole on April 15, 2003, Hays was returned to confinement less than six months later for violations including failure to participate in sex offender counseling, consumption of alcohol and possession of drug paraphernalia. His girlfriend reported that Hays raped her, but no charges were filed. On May 15, 2007, Hays was again released on parole.
Hays’ second parole release in 2007 lasted less than five months, and the violations noted during this time frame included the possession of drug paraphernalia, use of cocaine, accessing pornography and the unsuccessful completion of sex offender counseling. As a result, Hays was temporarily placed in an inpatient treatment program, but was discharged after making inappropriate comments to a female staff member.
While on parole in 2009, Hays failed to register as a sex offender. On April 12, 2010, Hays pleaded guilty to the felony of failing to register as a sex offender, and was placed on probation for five years. Less than six months later, Hays’s probation was revoked for violations including testing positive for cocaine and failing to complete substance abuse counseling. He was ordered to inpatient treatment, and while there wrote sexually explicit letters to other female patients, which led to his being discharged from the program. Hays again declined to participate in sex offender counseling, and absconded after his sexually explicit letters were discovered.
On September 3, 2012, Hays was again released, but less than two months later he was again revoked for violations including having contact with his brother’s four-year-old child without the prior consent from his supervision team and masturbating to pornographic images on television. Hays again absconded, was revoked on July 2, 2013, and returned to confinement. He was discharged on October 17, 2013. A year later, Google notified law enforcement of the child pornography that had been uploaded to his e-mail account.
This case was prosecuted by Assistant U.S. Attorney Anthony P. Gonzalez. It was investigated by the St. Charles, Mo., Police Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Lincoln County oxycodone dealer sentenced to 8 years in federal prisonRead the Press Release
CHARLESTON, W.Va. – A Lincoln County man was sentenced today to 8 years in federal prison for conspiring to illegally distribute oxycodone and other prescription pills, Acting U.S. Attorney Carol Casto announced. Timothy Hallam, 34, of Branchland, West Virginia, was part of a drug scheme that involved prescription pills brought from Florida for sale in West Virginia.
From May 2012 through May 2014, Hallam conspired with individuals in Florida and Lincoln County to distribute quantities of oxycodone, also known as “Roxicodone,” and other prescription pills. Hallam further conspired with individuals in Lincoln County and Florida to launder the proceeds of the oxycodone distribution by depositing the proceeds in to bank accounts in West Virginia owned by Lester W. Taylor, the source of the oxycodone, so that Taylor could withdraw the proceeds from his bank accounts in Florida. The money was deposited in West Virginia in an effort to conceal the source of the cash as drug proceeds, to conceal Taylor as the source of the pills, and to conceal the location of the proceeds of the pill distributions.
Beginning in May 2012 and continuing until May 2014, Hallam obtained oxycodone pills from Lester Taylor, who resided in Florida, for distribution in Lincoln County, West Virginia. Taylor acquired oxycodone pills in Florida and West Virginia and would front the pills to Hallam and other individuals in Lincoln County to distribute. Once Hallam sold the oxycodone pills in West Virginia, he would deposit the proceeds in to L.W. Taylor’s bank accounts at various banks in Barboursville, West Virginia and Huntington, West Virginia. Once the money was deposited in West Virginia, L.W. Taylor and others would withdraw the money in Florida. From May 2012 through May 2014, Hallam deposited approximately $40,325 in drug proceeds into L.W. Taylor’s bank accounts in Barboursville for withdrawal in Florida.
The case was investigated by the West Virginia State Police, the IRS-CID, the Metro Drug Enforcement Network Team, and the Drug Enforcement Agency. Assistant U.S. Attorney Monica Coleman handled the prosecution. The sentenced was imposed by United States District Judge John T. Copenhaver, Jr.
KC Man Pleads Guilty to Armed Bank Robbery, Faces 15 Years in PrisonRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man who was tackled by a security guard while making his escape pleaded guilty in federal court today to armed bank robbery.
Sidney A. Williams, 62, of Kansas City, pleaded guilty before U.S. Chief District Judge Greg Kays to the charge contained in a Nov. 17, 2015, federal indictment.
By pleading guilty today, Williams admitted that he stole $6,493 at gunpoint from Bank Midwest, 7904 Ward Parkway, Kansas City, Mo., on Nov. 10, 2015.
According to court documents, Williams was wearing a black ski mask and black gloves when he entered the bank and ordered everyone in the lobby to the ground. Williams entered the security guard’s office, grabbed his shirt and forced him to the ground. Williams pointed a .38-caliber revolver at bank employees, including the security guard and the assistant branch manager. Two bank employees placed money into a blue canvas grocery bag that Williams was carrying.
When Williams ran out the door of the bank after the robbery, the security guard chased after him. The security guard tackled Williams across the street from the bank and a struggle ensued. Williams pointed the revolver at the security guard before he was able to disarm him. The security guard received assistance from a passerby in subduing Williams. Law enforcement officers recovered a blue canvas bag of cash, the handgun and a black ski mask from the area where Williams was taken into custody.
Under the terms of today’s plea agreement, Williams will be sentenced to 15 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Patrick C. Edwards and Jeffrey Q. McCarther. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Jury Convicts Lake County Man of MurderRead the Press Release
SAN FRANCISCO – Jonathan Mota was convicted of murder caused by a firearm; for Hobbs Act robbery; and use and carry of a firearm during and in relation to that robbery, announced United States Attorney Brian J. Stretch and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder. The guilty verdict, delivered yesterday, followed a four-week jury trial before the Honorable Jon S. Tigar, U.S. District Judge.
According to the evidence presented at trial, on January 18, 2013, Mota, 34, of Lake County, Calif., a convicted felon, parked a stolen vehicle in the vicinity of the Mount Konocti Gas & Mart in Kelseyville, Calif., to rob it. Mota left an unwitting passenger in the vehicle and wore a hoodie, ski mask, baggy jeans, and gloves in an attempt to hide his identity. Store clerk Forrest Seagrave was mopping up and preparing to end his shift when Mota arrived brandishing a silver handgun. Seagrave did not know Mota was armed when Seagrave attempted to interrupt the robbery. Mota shot Seagrave in the neck, causing Seagrave to bleed to death on the floor of the convenience store. Video footage from the store cameras showed Mota stepping over Seagrave’s body to grab the money from the cash register.
“Today’s verdict is the result of cooperation and months of tireless work between state and federal law enforcement partners, including the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lake County District Attorney, and the Lake County Sheriff’s Office,” said U.S. Attorney, Brian J. Stretch. “I want to thank all the members of the team who contributed the time and resources necessary to bring Mr. Mota to justice.”
"Through this cooperative effort, ATF and our partners were able to apprehend and successfully prosecute a violent and dangerous individual who posed a significant threat to the public," said ATF Special Agent in Charge Jill A. Snyder. "Today we took a killer off our streets."
A federal grand jury handed down a Superseding Indictment on June 27, 2013, charging Mota with murder caused by a firearm; Hobbs Act robbery; and use and carry of a firearm during and in relation to that robbery. With yesterday’s verdict, Mota has been convicted of all of these charges.
Sentencing has been scheduled for October 28, 2016, before Judge Tigar. The maximum statutory penalty for use and carry of a firearm during and in relation to the Hobbs Act robbery, in violation of Title 18 U.S.C. § 924(c), is life imprisonment and a fine of $250,000. The maximum statutory penalty for the use of the firearm resulting in murder, in violation of 18 U.S.C. § 924(j), is life imprisonment and a fine of $250,000. The maximum statutory penalty for Hobbs Act robbery, in violation of 18 U.S.C. § 1951(a), is 20 years’ imprisonment and a fine of $250,000. Mota’s sentence also may include a 10-year consecutive prison term for discharging the firearm during the robbery. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case was tried by Assistant United States Attorneys Damali Taylor and Sarah Hawkins, with assistance from Kurt Kosek. The prosecution is the result of an investigation led by the ATF and the Lake County Sheriff’s Office.
Jacksonville Woman Indicted for Sex Trafficking by Force, Conspiracy to Distribute Cocaine, and Possession of Multiple FirearmsRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of a superseding indictment charging Shaquana Quenella Brookins (31, Jacksonville) with two counts of sex trafficking by force, fraud, and coercion; one count of conspiracy to distribute “crack” cocaine; on count of maintaining a drug-involved premise; and two counts of possession of a firearm by a convicted felon. If convicted on all counts, she faces up to life in federal prison. The indictment also notifies Brookins that the United States intends to forfeit any assets alleged to be traceable proceeds of the offense.
According to the indictment, at various times in 2014 and 2015, Brookins used force, threats of force, fraud, and coercion to cause her victims to engage in commercial sex acts; conspired with others to manufacture and distribute cocaine base, commonly known as “crack” cocaine; maintained a place for the purpose of manufacturing, distributing, and using controlled substances, including cocaine, crack cocaine, and heroin; and unlawfully possessed three firearms after being previously convicted of felonies.
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Jacksonville Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Laura Cofer Taylor.
Information Technology Companies to Pay $5.8 Million for Misrepresentations Relating to Small Business Status and Contract Fee PaymentsRead the Press Release
En Pointe Gov. Inc., En Pointe Technologies Inc., En Pointe Technologies Sales Inc., Dominguez East Holdings LLC and Din Global Corp., all of Gardena, California, have agreed to resolve allegations that they violated the False Claims Act by falsely certifying that En Pointe Gov. Inc. was a small business in order to obtain contracts set aside for small businesses and underreporting sales under a General Services Administration (GSA) contract to avoid the payment of fees, the Department of Justice announced today. Under the settlement agreement, the companies have agreed to pay slightly more than $5.8 million. En Pointe Gov. Inc. is now known as Modern Gov IT Inc.; En Pointe Technologies Sales Inc. is now known as Collab9 Inc.; and En Pointe Technologies Inc. is now known as Dinco Inc.
“Contractors who misrepresent their eligibility for government contracts, or fail to pay amounts owed under those contracts, undermine the integrity of the procurement process,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Justice Department will take action to fully protect taxpayer funds.”
“These companies defrauded the government in two ways, each of which cost taxpayers,” said U.S. Attorney Eileen M. Decker for the Central District of California. “Small businesses, in some cases, are eligible to receive a preference when government contracts are issued. Large companies that fraudulently solicit and obtain contracts under small business set-aside programs, like the companies in this case, not only abuse the system but also harm legitimate small businesses by taking those contracts away from them.”
The government alleged that, between 2011 and 2014, the defendants were liable for false representations that En Pointe Gov. Inc. met Small Business Administration (SBA) requirements to obtain work that was only available to small businesses. In particular, the government alleged that En Pointe Gov Inc.’s affiliation with the other defendants rendered it a non-small business and, thus, ineligible for the small business set-aside contracts it obtained.
The government also alleged that defendants caused En Pointe Gov. Inc. to file false quarterly reports with the GSA between 2008 and 2015 underreporting sales made under a GSA schedule contract that allowed other federal agencies to purchase from En Pointe. Under the terms of the contract, En Pointe was supposed to return to GSA a percentage of its sales receipts. By allegedly misrepresenting the amount of its sales, En Pointe underpaid the fees that it owed to GSA.
“GSA contractors must be forthright in their dealings with the United States,” said GSA Inspector General Carol Fortine Ochoa.
“Federal contracts set aside for small businesses are intended to grow the economic base of the nation,” said SBA Inspector General Peggy E. Gustafson. “The Office of Inspector General will aggressively investigate such misrepresentations to ensure only eligible businesses are awarded these contracts. I want to thank the U.S. Department of Justice for its dedication to pursuing justice in this case.”
“This case represents the cooperative effort of SBA and the Department of Justice to uncover and remedy fraud in federal contracting with small businesses,” said SBA General Counsel Melvin F. Williams, Jr. “Uncovering and pursuing fraud cases is one of SBA’s highest priorities.”
The settlements resolve allegations filed in a lawsuit by Minburn Technology Group, LLC (Minburn), a Virginia company that sells information technology products and services, and Anthony Colangelo, Minburn’s managing member. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Minburn and Mr. Colangelo will receive approximately $1.4 million.
This settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Central District of California and the GSA and SBA Inspector General Offices.
The case is captioned United States ex rel. Colangelo et al. v. En Pointe Gov., Inc., et al., CV14-5865-RGK (JPRx) (C.D. Cal.). The claims resolved by the settlements are allegations only and there has been no determination of liability.
Information Technology Companies to Pay $5.8 Million for Misrepresentations Relating to Small Business Status and Contract Fee PaymentsRead the Press Release
WASHINGTON – En Pointe Gov. Inc., En Pointe Technologies Inc., En Pointe Technologies Sales Inc., Dominguez East Holdings LLC and Din Global Corp., all of Gardena, California, have agreed to resolve allegations that they violated the False Claims Act by falsely certifying that En Pointe Gov. Inc. was a small business in order to obtain contracts set aside for small businesses and underreporting sales under a General Services Administration (GSA) contract to avoid the payment of fees, the Department of Justice announced today. Under the settlement agreement, the companies have agreed to pay slightly more than $5.8 million. En Pointe Gov. Inc. is now known as Modern Gov IT Inc.; En Pointe Technologies Sales Inc. is now known as Collab9 Inc.; and En Pointe Technologies Inc. is now known as Dinco Inc.
“Contractors who misrepresent their eligibility for government contracts, or fail to pay amounts owed under those contracts, undermine the integrity of the procurement process,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Justice Department will take action to fully protect taxpayer funds.”
“These companies defrauded the government in two ways, each of which cost taxpayers,” said U.S. Attorney Eileen M. Decker for the Central District of California. “Small businesses, in some cases, are eligible to receive a preference when government contracts are issued. Large companies that fraudulently solicit and obtain contracts under small business set-aside programs, like the companies in this case, not only abuse the system but also harm legitimate small businesses by taking those contracts away from them.”
The government alleged that, between 2011 and 2014, the defendants were liable for false representations that En Pointe Gov. Inc. met Small Business Administration (SBA) requirements to obtain work that was only available to small businesses. In particular, the government alleged that En Pointe Gov Inc.’s affiliation with the other defendants rendered it a non-small business and, thus, ineligible for the small business set-aside contracts it obtained.
The government also alleged that defendants caused En Pointe Gov. Inc. to file false quarterly reports with the GSA between 2008 and 2015 underreporting sales made under a GSA schedule contract that allowed other federal agencies to purchase from En Pointe. Under the terms of the contract, En Pointe was supposed to return to GSA a percentage of its sales receipts. By allegedly misrepresenting the amount of its sales, En Pointe underpaid the fees that it owed to GSA.
“GSA contractors must be forthright in their dealings with the United States,” said GSA Inspector General Carol Fortine Ochoa.
“Federal contracts set aside for small businesses are intended to grow the economic base of the nation,” said SBA Inspector General Peggy E. Gustafson. “The Office of Inspector General will aggressively investigate such misrepresentations to ensure only eligible businesses are awarded these contracts. I want to thank the U.S. Department of Justice for its dedication to pursuing justice in this case.”
“This case represents the cooperative effort of SBA and the Department of Justice to uncover and remedy fraud in federal contracting with small businesses,” said SBA General Counsel Melvin F. Williams, Jr. “Uncovering and pursuing fraud cases is one of SBA’s highest priorities.”
The settlements resolve allegations filed in a lawsuit by Minburn Technology Group, LLC (Minburn), a Virginia company that sells information technology products and services, and Anthony Colangelo, Minburn’s managing member. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. Minburn and Mr. Colangelo will receive approximately $1.4 million.
This settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Central District of California and the GSA and SBA Inspector General Offices.
The case is captioned United States ex rel. Colangelo et al. v. En Pointe Gov., Inc., et al., CV14-5865-RGK (JPRx) (C.D. Cal.). The claims resolved by the settlements are allegations only and there has been no determination of liability.
Honduran National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that NATANAEL MORALES-TRINIDAD, a/k/a Samael Morales, a/k/a Natanael K. Morales, a/k/a Nathaniel Morales, age 46, a citizen of Honduras, pled guilty today to a one-count Bill of Information for illegal reentry.
According to the Bill of Information, on or about May 1, 2016, MORALES-TRINIDAD was found in the United States after having been officially deported and removed on or about May 8, 2013, after a conviction for cocaine possession.
MORALES-TRINIDAD faces a maximum term of imprisonment of ten years and a fine of $250,000, three years supervised release after imprisonment, and a $100.00 special assessment. U.S. District Judge Susie Morgan set sentencing for October 5, 2016.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.