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Thursday 16 June 2016
Garrett County Developer Sentenced to Federal Prison in $5.7 Million Bank Fraud SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Samuel R. VanSickle, age 52, of Accident, Maryland today to two years in prison followed by five years of supervised release for conspiring to commit bank fraud arising from three fraudulent bank loans in which VanSickle received proceeds from the sale of real property in Garrett County, Maryland, and Cheat Lake, West Virginia, totaling over $5.7 million. Judge Garbis also ordered VanSickle to forfeit and pay restitution of $2,755,102.50, and forfeit his interest in 40 properties held in his name or in the names of others that are located in Maryland, West Virginia and Pennsylvania, up to the value of $2,755,102.50.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
VanSickle and co-defendant Louis Strosnider owned and developed property in Garrett County, Maryland. Strosnider operated Stony Brook Development Company, located in McHenry, Maryland,
According to his plea agreement, from December 2001 to May 2005, Strosnider fraudulently obtained real estate loans from banks to buy properties controlled, through aliases, by VanSickle. VanSickle concealed from the lenders his role as seller of the properties and recipient of the sales proceeds through fictitious identities such as “Donald Blunt, Trustee for Gospel Church,” “Donald Blunt, Trustee for Freedom Church,” “Equity Exchange,” “Unity Mortgage,” “Jacob Aiken” and “Allen Helms.” The scheme also involved fictitious down payments, inflated collateral, and false contracts.
For example, in 2002, VanSickle provided $600,000 for the purchase of Red Run, a restaurant and bed and breakfast which bordered on Deep Creek Lake in Garrett County, Maryland. In April 2003, VanSickle caused Red Run to be transferred for $0 to “Donald Blunt, Trustee for Gospel Church” - a fictitious church with a fictitious trustee. In February 2004, Strosnider signed a contract to buy Red Run from Gospel Church for $3 million. The contract recited a fictitious $750,000 down payment. Strosnider applied to a bank for a loan to complete the purchase of Red Run. When the bank required additional collateral, VanSickle supplied a timber contract for land in Garrett County with a valuation signed by “Paul Walsh” of “Noble Forest Consultants.” Both “Noble Forest Consultants” and “Paul Walsh” were fictitious. The settlement for the sale of the property was conducted by attorney Angela Blythe. Blythe failed to collect Strosnider’s funds to close the loan. At VanSickle’s direction, Blythe paid over the sales proceeds of $1.6 million to “Unity Mortgage,” which was VanSickle. “Unity Mortgage” did not, in fact, have a mortgage on Red Run.
VanSickle and Strosnider used similar fraudulent methods in Strosnider’s purchase from VanSickle of 5.87 acres on State Park Road, bordering Deep Creek Lake, and 116 acres of undeveloped land on Cheat Lake, West Virginia.
VanSickle received over $5.7 million in sales proceeds from the fraudulent transactions. Strosnider defaulted on all three loans. As a result of the scheme, the loss to the financial institutions was $2,755,102.50, the amount of the loans minus the recovery from foreclosure and sale of the collateral.
Louis W. Strosnider, III, age 50, of Oakland, Maryland, previously pleaded guilty to his participation in the conspiracy and awaits sentencing. In a related case, Angela M. Blythe, age 52, of Oakland, Maryland, was convicted by a federal jury on October 9, 2015, after a nine day trial, of conspiring with VanSickle to commit bank fraud, bank fraud, and two counts of making a false statement to a bank. U.S. District Judge William D. Quarles sentenced Blythe to a year and a day in prison, and entered an order requiring Blythe to forfeit $696,517 and pay restitution of $948,203.25.
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 praised the FBI for its work in the investigation and thanked Assistant United States Attorneys Joyce K. McDonald and Philip A. Selden, who prosecuted the case.
Gardiner Man Pleads Guilty to Wire Fraud ChargesRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Ervin Morrison III, 23, of Gardiner, Maine, pleaded guilty today in U.S. District Court to wire fraud charges.
According to court records, between about June 2014 and July 2015, Morrison entered into contracts promising goods and services to five individuals and companies and for which he collected over $27,000 in advance payments. At the time he entered the contracts, Morrison had no intention or ability to provide the goods and services and he did not provide them.
The defendant faces up to 20 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Federal Bureau of Investigation, the Maine State Police, the Brunswick Police Department, and the Monson, Massachusetts Police Department.
Gainesville Defendant Sentenced to 10 Years in Prison for Child Sex TraffickingRead the Press Release
GAINESVILLE, FLORIDA – Tawanda LaKaye Burkett, 40, was sentenced today to 10 years in prison for sex trafficking of a minor. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
At Burkett’s trial, which concluded on January 28, 2016, the government presented evidence that in August 2014, Burkett, Black, and Carter, all of Gainesville, Florida, were involved in a scheme to make money using a 15-year-old girl to perform sex acts. The defendants posted the victim’s photo in an online advertisement on a website section for “escort services.” The true purpose of the advertisement was to offer the victim for commercial sexual activity. The defendants also provided the victim with a cellular telephone so that “clients” could contact her. When the “clients” responded to the advertisements, Burkett, Black, and Carter transported the victim to private residences and hotels for sexual activity. The defendants shared the proceeds of the victim’s commercial sex acts.
Codefendant Hal Bernard Black, 21, was sentenced on January 25, 2016, to 135 months in prison, and Codefendant Ranell Carter Jr., 25, is scheduled to be sentenced on July 25, 2016, at 3:30 p.m. at the United States Courthouse in Gainesville.
This case resulted from investigations by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Gainesville Police Department, and the Alachua County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Frank Williams.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Franklinton Man Sentenced for Structuring over $100,000 in Financial TransactionsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JERRY COX, age 72, of Franklinton, was sentenced today after previously pleading guilty to structuring financial transactions to avoid federal reporting requirements.
U.S. District Judge Nannette Jolivette Brown sentenced COX to five years probation and a $100 special assessment. In October 2015, COX pled guilty and cooperated with the United States, including testifying in the trial of United States v. Walter and Steven Reed.
According to court documents, in September 2011, COX made, and caused to be made, a series of cash withdrawals from Citizens Savings Bank and Resource Bank that were designed to evade certain reporting requirements under federal law, namely the obligation of financial institutions to report currency transactions over $10,000. COX did so as part of a pattern of activity totaling $102,050 in a twelve-month period. Specifically, COX caused a series of seven withdrawals on September 20, 2011, September 24, 2011, two on September 27, 2011, September 30, 2011, October 4, 2011, and October 11, 2011, in amounts between $7,650 and $9,500. COX used the Resource account to conduct seven additional withdrawals in the manner, and for the same purpose of avoiding reporting requirements, between July 24, 2012, and August 4, 2012, totaling approximately $39,900. COX was aware of the reporting requirements, and he engaged in the withdrawals to avoid causing the banks to generate reports.
U.S. Attorney Polite praised the work of the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
Former Loan Processor Indicted in Mortgage Fraud SchemeRead the Press Release
Tampa, Florida - United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Mayory Calvo (34, Doral) with one count of mortgage fraud conspiracy, two counts of bank fraud, and one count of loan and credit application fraud. If convicted, she faces a maximum penalty of 30 years in federal prison on each charge. The indictment also notifies Calvo that the United States is seeking a money judgment for the proceeds of the charged offenses.
According to the indictment and court proceedings, Calvo, who worked at Elite Mortgage Funding, participated in a mortgage fraud conspiracy where some conspirators entered into agreements to purchase properties for amounts in excess of the original asking price. The conspirators then inserted false and fraudulent information on mortgage loan applications, or Fannie Mae Form 1003s, that were submitted in support of the loan requests.
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 Federal Bureau of Investigation and the Federal Housing Finance Agency Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Jay Trezevant.
Former CEO of Community Action of Minneapolis Pleads Guilty to 16-Count Indictment for Conspiracy, Fraud and Theft of Public FundsRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of WILLIAM JAMES DAVIS, 65, for conspiring to steal funds from Community Action of Minneapolis (CAM). DAVIS pleaded guilty today before U.S. District Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minn.
“Improving people’s lives was the mission of Community Action of Minneapolis,” said U.S. Attorney Luger. “Instead, Bill Davis stole from those in need to line his own pockets. The evidence of fraud was overwhelming, and the defendant’s guilty plea to all of the charges against him is a just result.”
According to the defendant’s guilty plea, CAM’s primary funding sources included federal grants administered by the Minnesota Department of Commerce and Minnesota Department of Human Services. CAM also received funding from CenterPoint Energy and Xcel Energy in exchange for providing certain conservation and weatherization services to qualifying homeowners.
According to his guilty plea, DAVIS concealed his diversion of CAM funds to his personal use by charging the majority of his CAM-paid personal expenses to a slush fund on CAM’s books that was not subject to the same oversight as CAM’s state and federal grant proceeds. DAVIS could therefore instruct CAM’s fiscal staff to charge personal expenses to this slush fund with less risk of detection.
According to his guilty plea, DAVIS concealed from CAM’s Board of Directors that he was using his position as CAM’s CEO to divert CAM funds to his personal use and that of his family and friends.
According to his guilty plea, between March 2007 and October 2014, DAVIS diverted at least $5,000 per year in CAM funds intended to be used to provide services to low-income residents of Minneapolis to his own personal use and the use of his family and friends, including JORDAN DAVIS. As part of the scheme, DAVIS used CAM funds for personal expenses, including airline tickets, hotel stays, rental cars and a Caribbean cruise.
According his guilty plea, DAVIS also used CAM funds to pay for his personal vehicle, a 2011 Chrysler 300. In May 2011, DAVIS traded in a 2005 Chrysler 300 owned by CAM. He then used the $10,079.53 in proceeds from the trade-in of the CAM vehicle and $36,430 in additional CAM funds to buy a new car for himself.
According to his guilty plea, DAVIS also used CAM funds to pay his son JORDAN DAVIS for a no-show job at a Ben & Jerry’s ice cream shop operated by CAM as a PartnerShop near the University of Minnesota campus in Minneapolis. Ben & Jerry’s waived its standard franchise fees so that CAM operated the store to provide job and entrepreneurial training to underprivileged youth facing barriers to employment.
According to the defendant’s guilty plea, between 2002 and October 2006, WILLIAM DAVIS’s son JORDAN DAVIS worked as the manager of the Ben & Jerry’s PartnerShop. In October 2006, JORDAN DAVIS obtained employment with the Minneapolis Police Department, and thereafter stopped working at the Ben & Jerry’s.
According to the defendant’s guilty plea, DAVIS instructed CAM’s fiscal staff to continue issuing JORDAN DAVIS the full paycheck he had been receiving for managing the ice cream shop. From at least March 2007 until January 2011, J. DAVIS continued to receive his full paycheck, $1,320 biweekly, for his work at the Ben & Jerry’s, even though he was doing no work for the ice cream shop.
In April 2011, CAM closed the Ben & Jerry’s PartnerShop because CAM could no longer afford the rent for the store, and CAM terminated its youth job skills training program.
In October 2013, the Minnesota Department of Human Services (DHS) began an audit intended to determine whether CAM was using the federal and state grant funds that it received through DHS in accordance with the applicable contracts. DHS personnel sought documents and information about the purposes of various CAM expenditures.
According to the defendant’s guilty plea, DAVIS sent correspondence to the Commissioner of DHS containing false material representations about his personal travel.
On October 13, 2014, W. DAVIS was suspended from his position as CEO without pay.
This case is the result of an investigation conducted by the Federal Bureau of Investigation, United States Department of Health and Human Services Office of the Inspector General, Internal Revenue Service – Criminal Investigation and the United States Department of Energy Office of the Inspector General.
This case is being prosecuted by Assistant United States Attorneys Kimberly A. Svendsen and Amber M. Brennan.
Defendant Information:WILLIAM JAMES DAVIS, 65
Brooklyn Park, Minn.Convicted:
• Conspiracy to commit theft concerning programs receiving federal funds, 1 count
• Mail fraud, 10 counts
• Wire fraud, 1 count
• Theft concerning programs receiving federal funds, 4 countsFormer Bureau of Prisons Employee Pleads Guilty to Felony OffenseRead the Press Release
FORT WORTH, Texas — A former Bureau of Prisons (BOP) employee assigned to Carswell Federal Medical Center (FMC) in Fort Worth, Texas, Yvonne Marrufo, appeared in federal court yesterday before U.S. Magistrate Judge Jeffrey L. Cureton and pleaded guilty to an indictment charging one count of sexual abuse with a ward, announced U.S. Attorney John Parker of the Northern District of Texas.
Marrufo, 41, of Fort Worth, faces a maximum statutory sentence of 15 years in federal prison and a $250,000 fine. She will remain on bond pending sentencing, which is set for October 27, 2016, before U.S. District Judge Terry R. Means.
According to documents filed in the case, Marrufo worked at Carswell FMC as a BOP Cook Supervisor. Beginning in approximately 2015, Marrufo engaged in a sexual act with an inmate she supervised at Carswell FMC.
The Office of the Inspector General for the Department of Justice conducted the investigation. Assistant U.S. Attorney Brian Poe is in charge of the prosecution.
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Florida Man Sentenced to 15 Months for Interstate StalkingRead the Press Release
Contact: James W. Chapman, Jr.
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Charles Mack, 51, of Clearwater, Florida, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to 15 months in prison to be followed by three years of supervised release for interstate stalking. Mack pleaded guilty to the charge on March 3, 2016.
Court records reveal that between January 2014 and May 2015, Mack sent numerous harassing emails and text messages to his ex-wife, who was living in Maine, despite her repeated requests that he stop the communications. Mack’s conduct caused the victim and her family substantial emotional distress.
This case was investigated by the FBI and the Falmouth Police Department.
Florida Department of Health Supervisor Charged with Accepting Bribe from Home BuildersRead the Press Release
A Florida Department of Health supervisor in Broward County was charged with accepting a bribe from home builders.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
The one-count Information charges Anthony Johnson, 58, of Tamarac, Florida, with extortion under color of official right, in violation of Title 18, United States Code, Section 1951. Johnson is scheduled to appear in federal court on Friday, June 17, 2016, at 10:00 a.m. before U.S. Magistrate Judge Dave Lee Brannon in West Palm Beach, Florida.
According to the Information, Johnson was an Environmental Supervisor at the Broward County office of the Florida Department of Health located in Fort Lauderdale, Florida. Two individuals were building a home in Southwest Ranches, Florida, and the home builders sought to obtain a series of approvals, including permits for sewage and water from the Florida Department of Health. On or about June 16, 2015, Johnson told one of the home builders that he would take care of the permits, “but you have to give me some money.” On or about June 22, 2015, the home builders met Johnson at a counter in the Broward County office of the Florida Department of Health. Johnson provided the homebuilders with approved permits for sewage and water. Johnson then escorted the home builders to the elevator and entered the elevator with the home builders. While in the elevator, the home builders provided the previously agreed-upon amount of $500 in U.S. currency to Johnson, which defendant Johnson placed in his pocket.
If convicted of the charges in the Information, Johnson faces a possible maximum statutory sentence of up to 20 years in prison.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
An Information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Couple Sentenced to Prison for Involvement in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
Conspired to File Fraudulent Income Tax Returns Claiming Over $1.5 Million in Tax Refunds Using Stolen Names and Social Security Numbers
A Pembroke Pines, Florida couple was sentenced to prison for their role in a stolen identity tax refund fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Wifredo Ferrer of the Southern District of Florida and Special Agent in Charge Kelly Jackson of the Internal Revenue Service–Criminal Investigation (IRS-CI).
On June 16, U.S. District Judge Beth Bloom for the Southern District of Florida sentenced Rhonda Perry Gittens, 35, to serve 75 months in prison, followed by three years of supervised release. Gittens’ boyfriend and co-conspirator, Walther Wilson Godfrey, 37, was previously sentenced on April 15 to serve 75 months in prison, followed by three years of supervised release. Judge Bloom also ordered Godfrey and Gittens to pay $792,442 in restitution to the IRS. Godfrey and Gittens pleaded guilty in January to one count of a multi-object conspiracy to defraud the United States, commit wire fraud and commit aggravated identity theft, one count of aggravated identity theft and one count of access device fraud.
“The sentences imposed by Judge Bloom reflect the serious harm caused by the defendants’ scheme to enrich themselves at the expense of the U.S. Treasury and their identity theft victims,” said Acting Assistant Attorney General Ciraolo. “The defendants attempted to hide behind a veneer of corporate and nominee identities that ultimately provided no bar to the investigative efforts of our law enforcement partners. Return preparers who seek to profit through false tax returns face harsh punishment and the result in this case should deter other individuals from engaging in similar schemes.”
“This sentence should serve as a warning to anyone who seeks to commit tax fraud or identity theft that federal law enforcement resources will be marshalled against them to discover their crimes and bring them to justice," said U.S. Attorney Ferrer. "We will continue to work tirelessly with all our law enforcement partners to prosecute those crimes.”
“IRS Criminal Investigation (CI) will continue to investigate those who attempt to defraud our nation’s tax system, and we will continue to fight for the innocent victims whose identities are being used in these stolen identity tax refund fraud schemes,” stated Special Agent in Charge Jackson of IRS-CI. “We are pleased with these sentences, as the defendants are being held accountable for attempting to steal more than $1.5 million from the IRS, possessing device-making equipment for driver’s licenses and credit cards, and recruiting another individual to participate in the crime.”
According to court documents and evidence presented at the sentencing hearing, between July 2009 and August 2014, Godfrey, Gittens and others conspired to defraud the United States by filing false federal income tax returns using stolen identities. Gittens owned and operated 2G, Inc., a tax return preparation business, and G&G Check Cashing Inc., a check cashing business, both of which were located in Pembroke Pines. Godfrey and Gittens obtained the personal identification information of actual individuals, some deceased, including names, social security numbers, addresses and dates of birth, without the individuals’ authorization, to prepare and file false income tax refund claims for the years 2009 through 2011. Godfrey and Gittens recruited a co-conspirator, Marc Brown, to put Electronic Filing Identification Numbers (EFINs) in his name through which fraudulent income tax returns would be filed. In addition, Godfrey and Gittens directed Brown to set up companies and bank accounts in his name to negotiate the fraudulently obtained income tax refund checks. Godfrey and Gittens filed more than 700 fraudulent tax returns requesting more than $1.5 million in income tax refunds. In addition, Godfrey and Gittens possessed device-making equipment including an identification card printer, a credit card embosser, hologram stickers for driver’s licenses and credit cards and blank credit cards.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Ferrer commended special agents of IRS-CI, who investigated the case and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Five Ms-13 Members Admit Racketeering, Murder Conspiracy, Gang ActivityRead the Press Release
NEWARK, N.J. – Five members of the international street gang “Mara Salvatrucha” (also known as MS-13) – including two top-ranking members who were directing gang operations from California prison cells – today admitted their roles in crimes including racketeering, conspiracy to commit murder, extortion and drug trafficking, U.S. Attorney Paul J. Fishman announced.
The defendants include Amilcar Romero, 47, a/k/a “Chichi,” and Joel Antonio Cortez, 41, a/k/a “Pee Wee,” both currently serving state prison sentences in California, and both of whom served as chief deputies to the leader of Mara Salvatrucha’s “national program.” They pleaded guilty today before U.S. District Judge Stanley Chesler in Newark federal court.
According to documents filed in this case and statements made in court:
The “national program,” also known as the “unification of the barrio,” sought to bring all of Mara Salvatrucha’s local sets, or “cliques,” in the United States under a single, cohesive leadership structure. The goal of the national program was to increase the nationwide collection of extortion proceeds, known as “rent,” and to use these rent-collection networks to establish new drug distribution channels from California to the East Coast. Mara Salvatrucha leaders allegedly struck a deal with the Mexican Mafia, a California prison gang, and certain Mexican drug cartels, including La Familia Michoacana, to supply methamphetamine and other drugs at cheap prices to gang members on the East Coast, including in New Jersey.
Three members of the “Hudson Locotes Salvatruchas”—a local branch, or “clique,” based in Hudson County, New Jersey, pleaded guilty to their roles in conspiring to murder an MS-13 member that had violated the gang’s rules and the member’s brother, who was alleged to belong to a rival gang. Luis Lopez-Guzman, 26, a/k/a “Nino, of Union City, New Jersey;” Hector Carranza-Solis, 32, a/k/a “Blackie;” of West New York, New Jersey, and Rudy Gutierrez, 24, a/k/a “Chiqui,” of Union City, admitted that they participated in telephone calls and other discussions with the leadership of the gang in the United States and El Salvador to seek permission to kill the rival gang members. Law enforcement learned of the murder plot during the course of this investigation and arrested the defendants before it could be completed.
Romero and Cortez served as the top deputies to Jose Juan Rodriguez-Juarez. Rodriguez-Juarez was a made member, or “carnale,” in the Mexican Mafia, and he leveraged his status within the powerful prison gang to assert control over all Mara Salvatrucha activities in the United States. Within Mara Salvatrucha, Rodriguez-Juarez was known by his gang moniker, “Dreamer,” but when he assumed control of the national program, he became known as “Sacerdote,” Spanish for “the priest.”
By autumn 2013, Rodriguez-Juarez had assigned Romero to serve as the primary point-of-contact between the leadership of Mara Salvatrucha in the United States and El Salvador, while Cortez assumed responsibility for recruiting Mara Salvatrucha cliques on the East Coast to join the national program. Both are also alleged to have ordered violence on the East Coast, including Cortez’s authorization of the November 2013 murder plot in Hudson County, and Romero’s order to east coast-based gang members to collect money on behalf of the gang by force and violence. Romero and Cortez collaborated with MS-13 gang leaders in New Jersey, Virginia, Maryland, and elsewhere to establish a distribution chain for cheap Mexican cartel drugs, including heroin and crystal methamphetamine. Part of the profit from that drug distribution chain would then be funneled back to the gang’s leadership in California to further promote the gang’s criminal activity.
All five defendants who pleaded guilty today will be sentenced Sept. 14, 2016. (See chart below.)
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s guilty pleas. The investigation also involved substantial assistance from multiple FBI field offices, including the Los Angeles, California, office. U.S. Attorney Fishman also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, and the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace H. Park, for their work on this case. He also acknowledged the U.S. Attorney’s Office for the Central District of California for their assistance in the ongoing investigation.
The government is represented by Assistant U.S. Attorneys James M. Donnelly and J. Jamari Buxton of the U.S Attorney’s Office Organized Crime/Gangs Unit in Newark.
Defense counsel:
Romero: John P. McDonald Esq., Somerville, New Jersey
Cortez: Howard Brownstein Esq., Union City, New Jersey
Carranza-Solis: Laurie M. Fierro Esq., Kinnelon, New Jersey
Gutierrez: Jerome A. Ballarotto Esq., Trenton, New Jersey
Lopez-Guzman: A. Paul Condon Esq., Jersey City, New Jersey
Maximum Penalties
Count
Charge
Defendants
Maximum Penalty
Racketeering Conspiracy
Romero
Cortez
Gutierrez
Life in prison
(Romero, Cruz)
20 years in prison
(Gutierrez)
4
Conspiracy to Commit Murder in Aid of Racketeering
Gutierrez
Carranza-Solis
Lopez-Guzman
10 years in prison
Five Members of A Bronx-Based Drug Trafficking Organization Arrested on Narcotics Conspiracy and Money Laundering ChargesRead the Press Release
A two-count indictment was unsealed this week in the United States District Court in Brooklyn charging six defendants with conspiracy to distribute cocaine and/or money laundering. Yesterday, a United States Postal Carrier assigned to the Highbridge Postal Station in the Bronx was arraigned before Magistrate Judge Viktor V. Pohorelsky at the federal courthouse in Brooklyn. Today, four additional members of the organization were arrested. Three of the defendants are scheduled to be arraigned today before Magistrate Judge Pohorelsky. The fifth defendant, Carlos Bello Tirado, will be arraigned today in the Middle District of Florida, and the government will seek his removal to New York.
The charges and arrests were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Angel M. Melendez, Special Agent-in-Charge, New York Field Office, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI); Phillip R. Bartlett, Postal Inspector-in-Charge, United States Postal Inspection Service, New York Field Office, and Eileen Neff, Special Agent-in-Charge, United States Postal Service, Office of Inspector General (OIG), Northeast Field Office.
As detailed in the indictment and other court filings by the government, between approximately 2011 and 2013, the defendants Kelvin Cisnero Santos, Saul Ovalles Corniel, Carlos Bello Tirado, Ernest Pena, and Jermaine Sandifer were members of a large-scale drug trafficking organization based in the Bronx. The organization purchased hundreds of kilograms of cocaine from suppliers in Puerto Rico, packaged the drugs, and sent the drug-laden parcels through the mail from Puerto Rico to pre-arranged addresses in the Bronx. The defendant Sandifer, a United States postal carrier, intercepted those parcels at the post office and delivered them to members of the organization. According to the detention letter filed by the government, each parcel sent to Sandifer contained approximately one to two kilograms of cocaine, and Sandifer was paid between $1,000 and $5,000 per parcel. The defendants also conspired to mail cocaine from Puerto Rico to numerous post office boxes operated by the organization in Queens, Brooklyn, the Bronx, and New Jersey. The cocaine was sold to various distributors in New York and New Jersey.
Defendants Santos, Corniel, Tirado, Pena, and others laundered proceeds from the drug sales through bank accounts in the New York metropolitan area to pay suppliers and make additional purchases of cocaine.
“However creative drug traffickers are in delivering their lethal product to our shores and the streets of our communities, we and our partners in law enforcement are committed to stopping them. The defendants will now be held to account,” stated United States Attorney Capers. Mr. Capers extended his grateful appreciation to the Drug Enforcement Administration, New York Field Office; the Internal Revenue Service, Criminal Investigations, New York Field Office; the Port Authority of the New York and New Jersey Police Department; the New York City Police Department; and the Queens District Attorney’s Office for their assistance in this case.
“This U.S. postal employee allegedly used his trusted position as a letter carrier to conspire with others to flood our streets with hundreds of kilos of cocaine,” said Special Agent-in-Charge Melendez. “HSI and its law enforcement partners are committed to dismantling drug trafficking organizations that wreak havoc on our neighborhoods.”
“Postal Inspectors along with our law enforcement partners take the security and safety of the U.S. Mail very seriously, and will vigorously pursue and bring to justice anyone who uses our nations mail system to facilitate the transport of illegal drugs,” said Inspector-in- Charge Bartlett.
Special Agent-in-Charge Neff stated, “USPS-OIG investigations help to maintain the integrity of Postal Service processes and personnel. In rare situations such as this, with a Postal Service employee allegedly abusing a position of trust, our Special Agents work jointly with our law enforcement partners to investigate those who transport illegal narcotics through the U.S. Mail.”
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face a mandatory minimum sentence of ten years and a maximum penalty of life imprisonment.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Douglas M. Pravda and Julia Nestor are in charge of the prosecution.
The Defendants:
KELVIN CISNERO SANTOS
Age: 48
Bronx, New YorkSAUL OVALLES CORNIEL
Age: 40
Newark, New JerseyCARLOS BELLO TIRADO
Age: 40
Leesburg, FloridaERNEST PENA
Age: 40
Bronx, New YorkJermaine sandifer
Age: 40
Perth Amboy, New JerseyE.D.N.Y. Docket No. 16-CR-309
Federal Jury Finds Washington County Man Guilty on Charges of Child Sexual ExploitationRead the Press Release
PITTSBURGH – On June 15, 2016, after deliberating for approximately two hours, a federal grand jury of eight men and four women found Christopher Welshans guilty of Distribution and Possession of Material Depicting the Sexual Exploitation of a Minor, United States Attorney David J. Hickton announced today.
Christopher Welshans, age 39, of Atlasburg, PA, was tried before United States District Judge Donetta W. Ambrose in Pittsburgh, PA.
According to Assistant United States Attorneys Jessica Lieber Smolar and Shanicka L. Kennedy, who prosecuted the case, on or about February 11, 2014, Christopher Welshans distributed videos and images containing material depicting the sexual exploitation of minors. In addition, on or about March 21, 2014, Christopher Welshans knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
United States District Judge Ambrose scheduled sentencing for October 24, 2016 at 10 am. The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Pennsylvania Office of the Attorney General and Federal Bureau of Investigation conducted the investigation leading to the prosecution of Christopher Welshans.
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.justice.gov/psc.
Federal Court Sentences Davenport Man for Possessing Child PornographyRead the Press Release
DAVENPORT, IA- On June 15, 2016, Philipp Johnson, age 40, of Davenport, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 120 months imprisonment on the charge of possession of child pornography, announced United States Attorney Kevin VanderSchel. Johnson was also ordered to serve 10 years of supervised release following his prison term, pay $100 towards the Crime Victims Fund, and pay $3,000.00 to each of the two identified victims. Forfeiture of the electronic device used to possess the child pornography was also ordered.
Johnson pled guilty to this crime on January 25, 2016. On December 1, 2014, the Davenport, Iowa Police Department was notified that Johnson’s cellular phone contained suspected child pornography. A forensic examination showed that the phone was activated on October 24, 2014, and last accessed November 20, 2014. The examination revealed that the user was actively browsing the internet for pornographic websites. The examiner found 496 images containing child pornography, some of which showed children under the age of twelve years old and a minor engaged in bestiality. Upon searching the Iowa Sex Offender Registry, it was confirmed that Johnson is a registered sex offender with the State of Iowa, for a prior conviction of Sexual Abuse 3rd (Iowa Code 709.4) on August 4, 2000. His victim was a female between the ages of 0-13.
This matter was investigated by the Davenport Police Department and the National Center for Missing and Exploited Children. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Childhood initiative.
Eagle Butte Woman Sentenced for Voluntary ManslaughterRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman convicted of Voluntary Manslaughter was sentenced on June 14, 2016, by U.S. District Judge Roberto A. Lange.
Richelle Bowker, age 37, was sentenced to 126 months in custody, followed by 3 years of supervised release, $9,464.76 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Bowker was indicted by a federal grand jury for Second Degree Murder on July 14, 2015. She pled guilty to Voluntary Manslaughter on March 8, 2016.
Bowker and the victim had been in a relationship for approximately eight years. The conviction stemmed from an incident on June 9, 2015, when Bowker and the victim began arguing. At some point, the victim took Bowker’s phone and broke it in half. Bowker went to the kitchen, grabbed a steak knife and stabbed him with it six times. The victim was stabbed three times in his chest, twice in his right shoulder and back, and once in his left hand. He died as a result of the multiple stab wounds.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Jay Miller prosecuted the case.
Bowker was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Sentenced for Possession of Firearm by Prohibited PersonRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Possession of Firearm by Prohibited Person was sentenced on June 13, 2016, by U.S. District Judge Roberto A. Lange.
Nelson Red Bird, age 26, was sentenced to 37 months in custody, 2 years of supervised release, a $500 fine, and a special assessment of $100 to the Federal Crime Victims Fund. Red Bird also forfeits $1,157 in cash, a firearm and ammunition seized during a search of his vehicle.
Red Bird was indicted by a federal grand jury on January 21, 2016. He pled guilty on March 8, 2016.
Red Bird was convicted of a felony in federal court in November 2010 and was sentenced to 40 months of custody. His initial supervised release began in 2013, but was revoked in March 2015 when urine samples tested positive for both marijuana and methamphetamine. Red Bird’s second term of supervised release began on June 8, 2015. On August 24, 2015, Red Bird absconded from the Community Alternatives of the Black Hills. On August 25, 2015, Cheyenne River Sioux Tribe Law Enforcement was dispatched to investigate a report that a man in a white vehicle in a motel parking lot appeared to be under the influence. Due to Red Bird’s suspicious actions inside the vehicle and his providing false names to the officers, Red Bird was detained and a police service dog was deployed around the vehicle. When the dog indicated on the driver side door, the vehicle was searched and marijuana, drug paraphernalia, $1,157 in cash, a shotgun and ammunition were found in the vehicle.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Red Bird was immediately turned over to the custody of the U.S. Marshals Service.
District Man Sentenced to 30 Months in Prison for Fraud Schemes Targeting Tenants at Apartment Complex He ManagedRead the Press Release
WASHINGTON – Tyi Michael Tunstall, 30, of Washington, D.C., was sentenced today to 30 months in prison for various schemes in which he used personal identifying information from others to steal more than $75,000, announced U.S. Attorney Channing D. Phillips and Brian J. Ebert, Special Agent in Charge, Washington Field Office, U.S. Secret Service.
At the time of these offenses, Tunstall was on probation in an earlier fraud case. He used some of the proceeds of these schemes to pay his court-ordered restitution in the earlier case.
Tunstall pled guilty in March 2016, in the U.S. District Court for the District of Columbia, to wire fraud and obstruction of justice. He was sentenced by the Honorable James E. Boasberg. Following his prison term, Tunstall will be placed on three years of supervised release. He also must perform 100 hours of community service and pay $21,614 in restitution and an identical amount as a forfeiture money judgment.
Tunstall previously pled guilty in September 2013 to a charge of mail fraud. He was sentenced in March 2014 in the U.S. District Court for the District of Columbia to five years of probation, with special conditions that he complete six months of home confinement to be followed by 20 weekends in jail. He also was ordered to pay $61,543 in restitution in that case.
According to a statement of offense, signed by the defendant as well as the government, Tunstall worked from July 2014 to July 2015 for a company that managed a senior citizens’ apartment complex in Washington, D.C., first as an office assistant and later as the complex’s manager. From Sept. 8 through Oct. 27, 2015, he worked at a staffing agency that assigned him to a call center for three credit unions. He used both workplaces as a means to carry out his schemes, as outlined below:
Identity Theft and Fraud at the Apartment Complex:
In one scheme, Tunstall stole the personal identifying information of an 83-year-old resident of the complex and used the information to open multiple accounts at financial institutions from March 2015 to October 2015. He used one card multiple times, causing American Express to incur $1,785 in losses. Tunstall also placed orders on a credit account at Montgomery Ward, causing $225 in losses.
In a separate scheme, Tunstall diverted to himself at least 22 checks and money orders from tenants to the apartment complex, totaling $8,723. These checks and money orders were intended to be used for rent, cable and community room rental. Tunstall added his name to the payee and/or memo line of the checks and money orders and kept them for his personal use.
Tunstall also created 18 additional counterfeit checks, using the names of the apartment complex and two other persons whose information he obtained. Some of these checks were returned, but Tunstall eventually received $1,640.
Identity Theft and Fraud at the Call Center:
While working at the credit union call center, Tunstall accessed a credit union member’s bank accounts. He created a counterfeit check using this account information in the amount of $61,525 and deposited it into his personal bank account. He also transferred $20,000 of the victim’s money to an account that he controlled and that he had set up in the name of the 83-year-old victim.
Tunstall used $52,512 of the proceeds from these schemes to pay off his restitution balance in the earlier case at the U.S. District Court for the District of Columbia.
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In addition to these acts, while he was on probation, Tunstall made a series of false representations to his probation officer and submitted forged documents to the Court, regarding his employment and other issues. This led to a probation revocation hearing on Oct. 29, 2015. At that time, Tunstall told the Court that he was able to pay the balance of his restitution because his grandmother had provided the money. In fact, as Tunstall well knew, he used the money that he had fraudulently obtained from others to pay off the restitution balance. His probation was revoked after the hearing and he has remained in custody ever since.
In announcing the sentence, U.S. Attorney Phillips and Special Agent in Charge Ebert commended those who investigated the case from the Secret Service’s Washington Field Office. They also expressed appreciation for the assistance provided by the Montgomery County, Md. Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Thomas Swanton, who assisted with forfeiture issues; Criminal Investigator Nicole Hinson; Document Management Analyst John Lowell; Paralegal Specialist Christopher Toms, and Victim/Witness Advocates Yvonne Bryant and James Brennan.
Finally, they commended the work of Assistant U.S. Attorney Peter C. Lallas, who prosecuted the matter.
District Man Sentenced to 21 Years in Prison for Child Pornography and Sexual Abuse ChargesRead the Press Release
WASHINGTON – Franklin “Giovanni” Torres, 33, of Washington, D.C., has been sentenced to 21 years in prison on child pornography and sexual abuse charges involving a teenage boy, U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), announced today.
Torres was found guilty by a jury on March 11, 2016, in the U.S. District Court for the District of Columbia, of production of child pornography, distribution of child pornography, possession of child pornography, and first-degree sexual abuse of a minor. He was sentenced on June 15, 2016, by the Honorable Senior Judge Ellen S. Huvelle. Following completion of his prison term, he will be placed on supervised release for the rest of his life.
According to the government’s evidence, Torres resided from January 2014 until April 2015 with the victim’s family at an apartment in Northwest Washington. The victim, a teenage boy, had only been in the U.S. for less than two years since immigrating from El Salvador and reuniting with his parents, who had come to the U.S. several years earlier, planning to obtain jobs and then send for their son. The boy’s parents allowed Torres to stay in their apartment after he lost his job and needed a place to stay. After Torres was living with the family for several months, the victim’s mother discovered a naked photo of a male child with his face obscured on the defendant’s Facebook page. The boy in the photo turned out to be the victim, and the photo was taken by Torres during an incident in which Torres had sexually abused him.
Shortly after the victim’s mother confronted Torres about the photo, he deleted it from Facebook and apologized to her. The victim’s mother later surreptitiously obtained a copy of the deleted photo from Torres’s cell phone, and she found additional naked photos of the victim. She and her son reported the activities to the police several months later, after Torres moved out of their apartment. The boy also revealed to police that Torres sexually abused him.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Chief Lanier commended the work of those who investigated the case from the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Joyce Arthur and Troy Griffith; Information Technology Specialists Anisha Bhatia and Aneela Bhatia, Criminal Investigator John Marsh, and Victim/Witness Advocate Yvonne Bryant. Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Andrea L. Hertzfeld and Denise A. Simmonds, who prosecuted the case.
Department of Justice and the National Institute of Standards and Technology Name Two Experts as New Members of National Commission on Forensic ScienceRead the Press Release
The Department of Justice and the Department of Commerce’s National Institute of Standards and Technology (NIST) today announced the appointment of Rebecca J. Ferrell, Ph.D. and Sgt. Troy Lawrence to the National Commission on Forensic Science.
The commission, created in 2013, develops forward-looking policy recommendations for the Attorney General to enhance the practice and improve the reliability of forensic science.
The commission is co-chaired by Deputy Attorney General Sally Q. Yates and Under Secretary of Commerce for Standards and Technology and NIST Director Dr. Willie E. May. Deputy Assistant Administrator Nelson Santos of the Drug Enforcement Administration’s Office of Forensic Sciences and Special Assistant to the NIST Director for Forensic Science John M. Butler serve as vice-chairs.
“The commission has been diligently developing important recommendations to strengthen forensic science in this country. These two new members will ensure that the commission continues to benefit from a wide range of perspectives, including those from the scientific community and from state and local law enforcement,” said Deputy Attorney General Yates. “Dr. Ferrell and Sgt. Lawrence are eminently qualified to continue the good work of the commission.”
“Since its inception, the Commission has benefitted from the contributions of some of America's most prominent scientists and forensic practitioners,” said Under Secretary May. “I have no doubt that our newest commissioners will continue this proud tradition as we work together to strengthen the science that underpins the forensic evidence used in the U.S. judicial system.”
Dr. Ferrell is the Program Director for the Biological Anthropology Program at the National Science Foundation in Arlington, Virginia. She is replacing outgoing Commissioner Mark Weiss who recently retired from the National Science Foundation. Sgt. Lawrence is the Director of the Digital Forensic Lab for the Fort Worth Police Department. He is replacing Bill Crane, who will be relocating to a new position overseas.
The commission includes federal, state and local forensic science service providers; research scientists and academics; law enforcement officials; prosecutors, defense attorneys and judges; and other stakeholders from across the country. This breadth of experience and expertise reflects the many different entities that contribute to forensic science practice in the United States and will ensure that these broad perspectives are represented on the commission and in its work.
The commission was established in 2013 and re-chartered for another two-year period in April 2015. The new members announced today are replacing individuals whose tenures with the commission recently ended.
The commission’s next meeting will be held from June 20 to 21, at the Office of Justice Programs, 3rd Floor Main Conference Room, 810 7th Street, N.W., Washington, D.C. 20531. More information about the commission can be found at http://www.justice.gov/ncfs.
Daughter Who Helped Father Sell Heroin and Cocaine in Monroe and Wayne Counties Sentenced to 27 Months in PrisonRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 26-year-old woman who admitted to participating in a heroin and cocaine trafficking conspiracy headed by her father in Monroe and Wayne Counties in 2011-2014, was sentenced to 27 months in prison today by U.S. District Court Judge Malachy E. Mannion in Scranton.
According to United States Attorney Peter Smith, the defendant, Rubie Cruz, of Tobyhanna, previously pleaded guilty to conspiracy to distribute heroin and cocaine. Cruz admitted to being responsible for the distribution of more than 80 grams of heroin, which is equivalent to more than 2000 retail bags of heroin.
Cruz was indicted by a federal grand jury in Scranton in August 2014, as a result of an investigation by agents of the Drug Enforcement Administration, investigators from the Pennsylvania State Police, the Wayne County District Attorney’s Office, and Pocono Mountain Regional Police.
Two of Cruz’s siblings, Tiffanyann Cruz, age 22, and Brandon Cruz, age 24, were previously sentenced to prison for their roles in the drug conspiracy.
Carlos Cruz, the father who was a leader of the conspiracy, was previously sentenced to eight years in prison.
Judge Mannion also ordered Rubie Cruz to serve three years on supervised release following her prison sentence.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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Danbury Man Sentenced to 9 Years in Prison for Trafficking Oxycodone, Cocaine and MarijuanaRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALFRED CATINO, also known as “Alphonse Catino,” “Frank Ross,” “Frank Russo,” “Anthony Vitacco,” “Chico,” “the Old Man” and “Herbie,” 75, of Danbury, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 108 months of imprisonment, followed by five years of supervised release, for trafficking narcotics.
This matter stems from a year-long investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Norwalk Police Department into the distribution of oxycodone, cocaine and marijuana in Fairfield County. A total of 16 individuals were charged as a result of the investigation, which revealed that CATINO and Demetrios “Jimmy” Papadakos were long-time associates who headed the narcotics trafficking ring.
CATINO has been detained since arrest on May 8, 2012. On June 24, 2014, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine, oxycodone and marijuana.
CATINO’s extensive criminal history includes multiple federal convictions for narcotics trafficking. He received his first federal conviction in 1967 for selling 115 grams of heroin to an undercover DEA agent. He was most recently convicted in 1998 and received a sentence of 140 months of imprisonment.
Papadakos, of Danbury, pleaded guilty and, on December 17, 2014, was sentenced to 121 months of imprisonment.
This matter was investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Norwalk Police Department, with assistance provided by the Connecticut State Police and the Bridgeport, Stamford, Stratford and Westport Police Departments. The case is being prosecuted Assistant U.S. Attorneys Vanessa Richards and Michael Runowicz.
Credit Union robber convicted at trialRead the Press Release
Evansville – United States Attorney Josh J. Minkler announced today that a Bridgeport, Illinois, man has been convicted of credit union robbery, carrying a firearm in furtherance of a crime of violence, and being a felon in possession of a firearm. Elmer F. Wiman, 68, was convicted following a jury trial before United States District Court Judge Larry J. McKinney, in Evansville. The investigation which led to the charges against Wiman was a cooperative effort by the Vanderburgh County Sheriff’s Department, the Indiana State Police, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
“Threatening employees in a federally protected financial institution with a handgun will not be tolerated,” said Minkler. “Reducing violent crime in our communities is one of my office’s highest priorities.”
Government attorneys presented evidence at trial that on March 17, 2015, at approximately 1:00 p.m., law enforcement officers were dispatched to the Heritage Federal Credit Union, 331 E. Boonville-New Harmony Road, on a report of a bank robbery. Witnesses described the suspect as a white male with a denim hat, denim clothing, and white gloves. Witnesses advised that the suspect was armed with a handgun and demanded the tellers to provide him with the Credit Union’s money while displaying a handgun. He then put the currency provided in a cooler and drove away in a gray Ford Taurus.
Indiana State Police troopers received the description of the vehicle and the suspect and conducted a traffic stop of a white male driving a vehicle that matched that description. The vehicle pulled into a gas station in Haubstadt, Indiana, a few miles immediately north of the robbery location. While conducting the traffic stop, troopers saw cash and a handgun inside the vehicle. The driver of the vehicle, identified as Elmer Floyd Wiman, was taken into custody. The vehicle contained a handgun, cooler, a hat like the one worn by the robber, white gloves, and approximately $3,091 in United States currency, nearly the exact amount believed to have been stolen from the Credit Union.
Wiman was taken into custody and transported to the Vanderburgh County Sheriff’s Department Command Post and interviewed. Wiman admitted that he robbed the Credit Union in order to get money to cover bills. Wiman reported that he planned the robbery over the previous two weeks, including conducting surveillance of the location before the robbery. The car Wiman was driving is owned by his former wife. She allowed Wiman to borrow the car after Wiman told her he needed it to visit a friend. Wiman switched the license plates on the car prior to the robbery and placed tape over the make and model identifiers on the car to avoid being caught.
According to Assistant United States Attorneys Kyle Sawa and Todd Shellenbarger who are prosecuting this case for the government, Wiman faces a term of imprisonment of up to 20 years for robbery of the credit union, up to a 10 year term of imprisonment for being a felon in possession of a firearm, and up to life in prison for use of a firearm during a crime of violence. A sentencing hearing will be set before Judge McKinney.
Conneaut Lake Man Charged with Possessing and Distributing Child PornographyRead the Press Release
ERIE, Pa. - A resident of Conneaut Lake, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
The two-count indictment named John P. Hoffman, 53, as the sole defendant.
According to the indictment presented to the court, Hoffman distributed and possessed computer images depicting minors engaging 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.justice.gov/psc.
The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Coalgate Man Sentenced to 24 Months Probation, $13,400 Restitution for Theft of Government FundsRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that JOHN RICHARD FLOURNOY, age 47, of Coalgate, Oklahoma, was sentenced to 24 months of probation and was ordered to pay $13,402.50 in restitution, for THEFT OF GOVERNMENT FUNDS, in violation of Title 18, United States Code, Section 641 and a FORFEITURE ALLEGATION.
The charges arose from an investigation by the Social Security Administration, Office of Inspector General. The defendant was indicted in December 2015 and pled guilty in January 2016.
The Indictment alleged that beginning in or about February, 2011, and continuing until on or about December 23, 2013, within the Eastern District of Oklahoma, the defendant, did willfully and knowingly steal and purloin money of the Social Security Administration, a department or agency of the United States, namely, Social Security Administration Supplemental Security Income payments to which he knew he was not entitled, having a value in excess of $1,000.00.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Rob Wallace represented the United States.
Cleveland attorney convicted of money laundering for accepting $20,000 in purported drug profitsRead the Press Release
A Cleveland attorney was convicted of money laundering for accepting $20,000 in purported drug proceeds and agreeing to launder the money, said Carole Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Matthew J. King, 45, was convicted on one count of attempted money laundering and two counts of money laundering following a weeklong jury trial. He is scheduled to be sentenced by U.S. District Judge Donald C. Nugent on Aug. 30.
King accepted $20,000 in cash purported to be the proceeds of the sale of narcotics. He then wrote two checks totaling $4,000 in early 2014, according to trial testimony and court documents.
This case was prosecuted by Assistant U.S. Attorneys Michelle M. Baeppler and Margaret A. Sweeney following an investigation by the Northern Ohio Law Enforcement Task Force. The NOLETF is a task force comprised of investigators from the Federal Bureau of Investigation, Cleveland Division of Police, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Cuyahoga County Sheriff’s Office, Ohio Bureau of Criminal Investigation and the police departments of Cleveland Heights, Euclid, Lakewood, the Regional Transit Authority, Westlake and Shaker Heights. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area initiatives, which supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
Chelmsford Man Convicted of Defrauding Disabled Veterans Program of More Than $100 MillionRead the Press Release
BOSTON – Yesterday, a federal jury found David E. Gorski, of Chelmsford, guilty of conspiracy to defraud the United States and wire fraud.
The jury found that Gorski conspired to defraud the United States by impairing the lawful governmental function of the Department of Veterans Affairs, the General Services Administration, the Army, and the Navy in the implementation and administration of the Service Disabled Veteran Owned Small Business (“SDVOSB”) Program.
Gorski established a company, Legion Construction, Inc., in 2006 after recruiting a disabled veteran of the Korean War to act as the company’s straw owner for the sole purpose of obtaining federal construction contracts set aside under the SDVOSB Program. The purpose of the SDVOSB program is to provide federal contracting assistance to service-disabled veterans who own small businesses by creating set-aside and sole source acquisitions for such businesses. When the veteran’s absence from the business became too conspicuous, Gorski hired a second disabled veteran, Peter Ianuzzi, to serve as the figurehead owner of Legion. Legion acquired more than $110 million in federal contracts between 2006 and November 2010, after Gorski falsely represented to federal contracting officers that the company was owned and operated by service-disabled veterans.
In March 2010, a different SDVOBS registered a bid protest against Legion, alleging that Legion should not have been awarded a contract with the VA at its medical center in White River Junction, VT. The company specifically challenged Legion’s SDVOSB status, noting that it appeared that Gorski, not one of the veterans, was the person really running Legion. After retaining the services of a large Boston law firm to assist him, Gorski filed an opposition to the bid protest that contained false information. The Small Business Administration denied the bid protest based on Legion’s submission. Gorski then began exploring ways to siphon money from Legion that would not appear as compensation exceeding the pay of the nominal veteran owner, Ianuzzi, in violation of federal regulations, including Ianuzzi “gifting” him $900,000 and establishing private bank accounts into which the company would deposit $2.5 million for Gorski’s benefit. Before the bank accounts could be opened, however, a federal grand jury issued subpoenas to Legion and several witnesses.
Gorski faces up to five years in prison, to be followed by up to three years of supervised release and a maximum fine of $250,000 on the count of conspiracy to defraud the United States. On the wire fraud counts, Gorski faces up to 20 years in prison, to be followed by up to three years of supervised release and a maximum fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Jeffrey Hughes, Special Agent in Charge, Department of Veterans Affairs, Office of the Inspector General, Northeast Field Office; Luis A. Hernandez, Special Agent in Charge, General Services Administration, Office of the Inspector General; Kevin Kupperbusch, Special Agent in Charge, Small Business Administration, Office of the Inspector General; Michael D. Conner, Regional Agent in Charge, U.S. Army Criminal Investigation Command, Boston Fraud Office; and Leo Lamont, Special Agent in Charge, Naval Criminal Investigative Service, Northeast Field Office. The case was prosecuted by William F. Bloomer of Ortiz’s Public Corruption Unit and Carlos A. Lopez of Ortiz’s Narcotics and Money Laundering Unit.Cameron Park Man Sentenced to over 8 Years in Prison for Defrauding the United Auburn Indian CommunityRead the Press Release
SACRAMENTO, Calif. — Darrell Patrick Hinz, 51, of Cameron Park, was sentenced today by United States District Judge Troy L. Nunley to eight years and one month in prison and ordered to pay $18,830,000 in restitution for defrauding the United Auburn Indian Community (UAIC), conspiring to launder monetary instruments, and filing false tax returns, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, between October 2006 and December 2007, Hinz, together with Gregory Scott Baker, of Newcastle, and Bart Wayne Volen, of San Diego, engaged in a scheme to defraud the UAIC of over $18 million.
“The role of IRS Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Darrell Patrick Hinz and his co-defendants created a scheme to defraud the UAIC in over $18 million in proceeds and purchased numerous high valued assets for himself and other co-defendants totaling over $1.4 million. Hinz also failed to report his ill-gotten gains on his federal tax returns. This sentence should serve as a deterrent to those who might contemplate similar fraudulent actions.”
According to court documents, in October 2006, the UAIC hired Volen, a developer, to finish construction on a school, a community center, and administrative offices on UAIC‑owned property on Indian Hills Road in Auburn. Baker was the UAIC tribal administrator whose duties included overseeing the Indian Hills office project. In this position of trust, he was subordinate only to the UAIC tribal council. Hinz was a contract employee hired by the UAIC to manage the construction at the Indian Hills office project site. Both Baker and Hinz were required to approve all invoices before the UAIC tribal council would sign checks to pay for completed work.
In carrying out the scheme, Volen submitted false and inflated invoices to the UAIC, and Hinz and Baker approved the fraudulent invoices based on a kickback agreement between the three men. Both Hinz and Baker engaged in conduct to ensure that the tribal council would pay for the inflated and fraudulent invoices submitted by Volen. They were later paid by Volen for their participation in the scheme.
According to court documents, Hinz, Baker, and Volen called themselves the “A-Team.” As a member of the A-Team, Hinz surreptitiously funneled over $1.4 million in fraud proceeds to Baker for his assistance in the scheme. Hinz also purchased a number of things for Baker, including personal property (such as a $70,000 BMW and a mobile home), seven investment homes, a vacation condominium in South Lake Tahoe, and a $54,000 pool at Baker’s primary residence. All of these transactions were conducted for the purpose of concealing the proceeds from the UAIC fraud.
With regard to the tax offense, Hinz failed to report the income he derived from the scheme. As a result, the United States suffered a tax loss of $830,000.
When imposing the sentence in this case, Judge Nunley stated that Hinz was part of “a massive fraud” that was committed by people that the UAIC trusted. The judge noted that the UAIC had taken in Hinz “as a member of their family” and that, through his actions and those of his co-conspirators, “the UAIC was taken advantage of.”
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorneys Michael M. Beckwith, John K. Vincent, and Kevin C. Khasigian are prosecuting the case.
Baker and Volen previously pleaded guilty to similar charges in this case. On May 26, 2016, Baker was sentenced to more than five years in prison and ordered to pay restitution. Volen is scheduled to be sentenced on August 4, 2016. Chris W. Eatough previously pleaded guilty to a felony related to this case on June 20, 2013 (case number 2:13-cr-214 TLN). Eatough is scheduled to be sentenced on July 28, 2016.
Cahokia Man Sentenced to over 44 Years in Prison for Armed RobberiesRead the Press Release
LaMarcus D. Jackson, 29, of Cahokia, Illinois was sentenced to 44 ½ years in prison on a six-count indictment charging him with two counts of Conspiracy to Interfere with Commerce by Robbery and Interference with Commerce by Robbery, which are violations of the Hobbs Act, and with two counts of Use and Carry of a Firearm During a Crime of Violence in connection with the armed robbery of the Alps Grocery Store that occurred in Cahokia on December 11, 2014, and the armed robbery of Shop n’ Save that occurred in Cahokia on January 11, 2015, James L. Porter, Acting United States Attorney for the Southern District of Illinois announced today. Jackson was also ordered to pay $8,700 in restitution to the victims and a $600 special assessment. Jackson will be on supervised release for 5 years once he is released from prison.
Documents filed in the U.S. District Court establish that on December 11, 2014, Jackson, Undray Webb and Byron Holton entered the Alps Grocery Store, located at 800 Upper Cahokia Road, in Cahokia, Illinois, masked and armed with three firearms. Jackson, Webb, and Holton pointed the firearms at the store employees and demanded money. Jackson, Webb, and Holton took approximately $1,700 from the registers and a safe and fled the store.
The documents further establish that one month later, on January 11, 2015, Jackson, Holton, Webb, and a fourth conspirator, Devante Hodges entered the Shop n’ Save, located at 1028 Camp Jackson Road in Cahokia, Illinois, masked, gloved and armed with four firearms. Jackson, Webb, Holton and Hodges pointed the firearms at employees and customers within the store. Holton jumped the service counter and demanded the employees place money from the safe into a black book bag while Jackson, Webb and Hodges stood guard at the door with their firearms. Jackson, Webb, Holton and Hodges then left the store and fled the area in a vehicle being driven by a getaway driver, Durand Harper. Approximately $7,000 was stolen during the robbery.
Jackson was arrested and interviewed by law enforcement. During the interview Jackson admitted to being one of the three gunmen who robbed the Alps Grocery Store and identified Byron Holton and Undray Webb as the other two gunmen. Jackson also admitted to being one of the four gunmen who robbed the Shop n’ Save a month later and identified Byron Holton, Undray Webb and Devante Hodges as the other three gunmen and Durand Harper as the getaway driver. Jackson admitted that he receive approximately $1,000 in proceeds from the Shop n’ Save robbery.
As to Byron Holton, his case is still pending, therefore, he is presumed innocent of the charges unless or until proven guilty beyond a reasonable doubt.
The case was investigated by the Cahokia Police Department, the Sauget Police Department and the Federal Bureau of Investigation. The case is assigned to Assistant United States Attorney Ali Summers for prosecution.
Businessman Pleads Guilty to Foreign Bribery and Tax Charges in Connection with Venezuela Bribery SchemeRead the Press Release
The owner of multiple U.S.-based energy companies pleaded guilty today to foreign bribery and tax charges for his role in a scheme to corruptly secure energy contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Acting Special Agent in Charge Sean McElroy of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Houston, and Special Agent in Charge Richard Goss of Internal Revenue Service-Criminal Investigation’s (IRS-CI) Houston Field Office made the announcement.
Roberto Enrique Rincon Fernandez (Rincon), 55, of The Woodlands, Texas, pleaded guilty today in federal court in Houston to an information charging him with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), one count of violating the FCPA and one count of making false statements on his 2010 federal income tax return. U.S. District Judge Gray H. Miller of the Southern District of Texas accepted Rincon’s plea and imposed a personal money judgment against Rincon, who agreed to a forfeiture. Sentencing is scheduled for Sept. 30, 2016.
Rincon was arrested on Dec. 16, 2015, after a grand jury in the Southern District of Texas returned an 18-count indictment against him and Abraham Jose Shiera Bastidas (Shiera), 53, of Coral Gables, Florida.
According to admissions made in connection with Rincon’s plea, Rincon and Shiera worked together to submit bids to provide equipment and services to PDVSA through their various companies. Rincon admitted that beginning in 2009, he and Shiera agreed to pay bribes and other things of value to PDVSA purchasing analysts to ensure that his and Shiera’s companies were placed on PDVSA bidding panels, which enabled the companies to win lucrative energy contracts with PDVSA. Rincon also admitted to making bribe payments to other PDVSA officials in order to ensure that his companies were placed on PDVSA-approved vendor lists and given payment priority so that they would get paid ahead of other PDVSA vendors with outstanding invoices. In his plea agreement, Rincon admitted that he willfully failed to report on his 2010 federal tax return over $6 million in foreign dividend income he received from a Venezuelan corporation he owned.
Rincon is the sixth individual to plead guilty as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. Shiera previously pleaded guilty before Judge Miller to one count of conspiracy to violate the FCPA and commit wire fraud and one count of violating the FCPA and is scheduled to be sentenced on Sept. 30, 2016. In March 2016, Judge Miller also unsealed charges against four other individuals charged in connection with the ongoing investigation, including three foreign officials. The foreign officials admitted that while employed by PDVSA or its wholly owned subsidiaries or affiliates, they accepted bribes from Rincon and Shiera in exchange for taking certain actions to assist companies owned by Rincon and Shiera in winning energy contracts with PDVSA. The foreign officials also conspired with Rincon and Shiera to launder the proceeds of the bribery scheme, they admitted. As part of their plea agreements, Rincon, Shiera and the other defendants all agreed to forfeit proceeds from their criminal activity.
ICE-HSI and IRS-CI are conducting the ongoing investigation, with assistance from the FBI. Trial Attorneys Aisling O’Shea and Jeremy R. Sanders of the Criminal Division’s Fraud Section and Deputy Chief John Pearson and Assistant U.S. Attorney Robert S. Johnson of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorneys Kristine Rollinson and Vincent Carroll of the Southern District of Texas are handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs and the Swiss Federal Office of Justice also provided assistance.
Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Businessman Pleads Guilty to Foreign Bribery and Tax Charges in Connection with Venezuela Bribery SchemeRead the Press Release
HOUSTON – The owner of multiple U.S.-based energy companies pleaded guilty today to foreign bribery and tax charges for his role in a scheme to corruptly secure energy contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).
U.S. Attorney Kenneth Magidson made the announcement along with Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting Special Agent in Charge Sean McElroy of Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Houston and Special Agent in Charge Richard Goss of Internal Revenue Service-Criminal Investigation’s (IRS-CI) Houston Field Office.
Roberto Enrique Rincon Fernandez (Rincon), 55, of The Woodlands, pleaded guilty today to an information charging him with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), one count of violating the FCPA and one count of making false statements on his 2010 federal income tax return. U.S. District Judge Gray H. Miller accepted Rincon’s plea and imposed a personal money judgment against him, who agreed to a forfeiture. Sentencing is scheduled for Sept. 30, 2016.
Rincon was arrested on Dec. 16, 2015, after a grand jury returned an 18-count indictment against him and Abraham Jose Shiera Bastidas (Shiera), 53, of Coral Gables, Florida.
According to admissions made in connection with Rincon’s plea, Rincon and Shiera worked together to submit bids to provide equipment and services to PDVSA through their various companies. Rincon admitted that beginning in 2009, he and Shiera agreed to pay bribes and other things of value to PDVSA purchasing analysts to ensure that his and Shiera’s companies were placed on PDVSA bidding panels, which enabled the companies to win lucrative energy contracts with PDVSA. Rincon also admitted to making bribe payments to other PDVSA officials in order to ensure that his companies were placed on PDVSA-approved vendor lists and given payment priority so that they would get paid ahead of other PDVSA vendors with outstanding invoices. In his plea agreement, Rincon admitted he willfully failed to report on his 2010 federal tax return over $6 million in foreign dividend income he received from a Venezuelan corporation he owned.
Rincon is the sixth individual to plead guilty as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. Shiera previously pleaded guilty before Judge Miller to one count of conspiracy to violate the FCPA and commit wire fraud and one count of violating the FCPA and is scheduled to be sentenced on Sept. 30, 2016. In March 2016, Judge Miller also unsealed charges against four other individuals charged in connection with the ongoing investigation, including three foreign officials. The foreign officials admitted that while employed by PDVSA or its wholly owned subsidiaries or affiliates, they accepted bribes from Rincon and Shiera in exchange for taking certain actions to assist companies owned by Rincon and Shiera in winning energy contracts with PDVSA. The foreign officials also conspired with Rincon and Shiera to launder the proceeds of the bribery scheme. As part of their plea agreements, Rincon, Shiera and the other defendants all agreed to forfeit proceeds from their criminal activity.
ICE-HSI and IRS-CI are conducting the ongoing investigation with assistance from the FBI. Deputy Chief John Pearson and Assistant U.S. Attorney Robert S. Johnson are prosecuting the case along with Trial Attorneys Aisling O’Shea and Jeremy R. Sanders of the Criminal Division’s Fraud Section. Assistant U.S. Attorneys Kristine Rollinson and Vincent Carroll are handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs and Swiss Federal Office of Justice also provided assistance.
Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Broken Bow Man Sentenced to 24 Months for Assault with Dangerous WeaponRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that ANTONIO JUAN PAREDES, age 26, of Broken Bow, Oklahoma, was sentenced to 24 months imprisonment, followed by 3 years of supervised release for ASSAULT WITH A DANGEROUS WEAPON, in violation of Title 18, United States Code, Sections 1153, 1151 and 113(a)(3).
The charge is a result of an investigation by the Choctaw Nation Tribal Police, the Broken Bow Police Department and the Federal Bureau of Investigation. The defendant was indicted in December, 2015 and pled guilty in January 2016.
The Indictment alleged that on or about July 21, 2012, in the Eastern District of Oklahoma, at the Choctaw Travel Plaza in Broken Bow, Oklahoma, in Indian Country, within the special maritime and territorial jurisdiction of the United States, the defendant, ANTONIO JUAN PAREDES, an Indian, assaulted M.C. with a dangerous weapon, with the intent to do bodily harm.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparoleable sentence.
Assistant United States Attorney Edward Snow represented the United States.
Baltimore City Landfill Employee Sentenced to 2 Years in Federal Prison for Stealing Scrap Metal and Filing False Tax ReturnsRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Jarrod Terrell Hazelton, age 33, of Parkville, Maryland, a former employee at the Quarantine Road Landfill (Landfill), today to two years in prison followed by three years of supervised release for conspiracy and wire fraud in connection with a scheme to unlawfully sell scrap metal from the Landfill and the Northwest Transfer Station, while falsely representing to the Baltimore Department of Public Works (DPW) that he was performing his job; and for filing a false tax return. Judge Garbis also ordered Hazelton to pay restitution of $400,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
Baltimore City’s waste management system generates revenue by collecting and selling recyclable scrap metal dumped at the City’s trash collection facilities, including household appliances, steel cables, copper wires, car parts, computer parts, door and window frames. The City awards contracts to private salvage companies to purchase and remove such scrap metal from its trash collection facilities.
DPW employees at the Landfill and other trash collection sites are required to segregate the recyclable scrap metal from general refuse and place it in separate bins provided by the salvage companies. The companies regularly pick up the scrap metal, weigh it and send a tonnage report to the City. Based on predetermined prices per ton, the City sends an invoice to the companies requesting payment for the value of the scrap metal the companies removed during a given period of time. Salvaging by employees, also referred to as “junking,” was strictly prohibited and employees were put on notice that any salvaging of metal constituted theft of City property.
According to his plea agreement, from 2005 until May 2015, Hazelton, who was employed by DPW at the Landfill, and other DPW employees, including Michael Bennett and supervisor William Nemec, unlawfully collected and sold scrap metal for personal gain during work hours, while representing to DPW that they were doing the jobs for which they were being paid. Hazelton was a leader in the scheme and coordinated the daily collection of scrap metal at the Landfill.
Hazelton and other employees used part of the sale proceeds of the stolen scrap metal to pay other DPW employees for their help in locating, setting aside, collecting and loading the scrap metal onto their trucks. Hazelton, Bennett and other employees at the Landfill used their personal cell phones to communicate when and where recyclable scrap metals were being dumped at the Landfill, and to coordinate their arrival at the private salvage yard. Hazelton, Bennett and others uses their personal pickup trucks to transport the scrap metal to a private salvage company, frequently making multiple trips during a single, eight-hour work shift.
The sale of the stolen scrap metal resulted in a loss of revenue to the City of at least $400,000.
In order to conceal the junking scheme, Hazelton and Bennett paid cash to Nemec and other supervisors to not report them for collecting and transporting the stolen scrap metal, and to authorize and submit false time and attendance records. Hazelton prepared and submitted false time and attendance records which falsely claimed he had been working, when in fact, he was instead illegally collecting and selling the scrap metal, resulting in wages being paid to Hazelton for work he did not perform.
In addition, for tax years 2011 through 2015, Hazelton failed to report approximately $476,703 of income received from the illegal junking scheme. For example, for tax year 2013, Hazelton reported $14,009 in total income to the IRS on his individual tax return, when Hazelton knew that he received $126, 293 of additional income that year from the illegal junking scheme.
Former DPW employees Tamara Oliver Washington, age 55, William Charles Nemec, Sr., age 56; and Michael Theodore Bennett, age 47, all of Baltimore, previously pleaded guilty to their roles in the schemes. Nemec was sentenced to 78 months in prison, and Bennett to 46 months in prison. Judge Garbis also ordered Bennett to pay restitution of $400,000. Washington is scheduled to be sentenced on August 12, 2016, at 11:30 a.m.
Five other commercial trash haulers have also pleaded guilty and a sixth commercial trash hauler has been convicted by a federal jury, in connection with their participation in a scheme. Four of these trash haulers have been sentenced: Quentin Turgot Glenn, age 50, of Hanover, Maryland, who owned and operated Glenn Services, LLC, a trash hauling business, was sentenced to three years in prison; Jessie Lee Wilson, Jr., age 41, of Baltimore, who was employed by Glenn Services as a truck driver, to three years of probation, with the first year to be spent in community confinement; Adam Williams, Jr., age 53, of Randallstown, to one year in prison; and Larry Lowry, age 61, of Orchard Beach, Maryland, to 30 months in prison. Judge Garbis also ordered that Glenn pay restitution of $306,000; Williams pay restitution of $900,000; and Lowry pay restitution of $180,000.
United States Attorney Rod J. Rosenstein praised the FBI, IRS-CI, Baltimore Office of Inspector General and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Martin J. Clarke and Leo J. Wise, who prosecuted the case.
Alabama Real Estate Investor Pleads Guilty to Mail Fraud Conspiracy Involving Foreclosed HomesRead the Press Release
An Alabama real estate investor pleaded guilty for his role in a conspiracy to commit mail fraud at public real estate foreclosure auctions held in southern Alabama, the Department of Justice announced today.
Adrian J. Beach admitted that he conspired with others to, among other things, defraud financial institutions, homeowners and others with a legal interest in rigged foreclosure properties, out of proceeds from foreclosure auctions. Beach is charged with participating in the conspiracy from January 2004 through March 2010. Financial institutions and homeowners suffered monetary losses as a result of the conspiracy.
“Adrian Beach schemed to rig home foreclosure auctions for his own benefit,” said Principal Deputy Assistant Attorney General Renata Hesse, head of the Justice Department’s Antitrust Division. “Real estate investors should know that the division and its colleagues in law enforcement will hold them accountable for conspiring to defraud banks and homeowners by depriving them of competitive auctions.”
“Honesty and integrity in business practices are a hallmark of the American way and those who engage in illegal activities to obtain a business advantage which lines their pockets with ill-gotten gain will be held accountable by the FBI for their action,” said FBI Mobile Division Special Agent in Charge Robert F. Lasky.
Beach is the fourteenth defendant prosecuted in the Antitrust Division’s ongoing investigation of bid rigging and other fraudulent conduct in the Alabama real estate foreclosure industry.
The investigation into fraud and bid rigging in the Alabama real estate foreclosure industry is being conducted by the Washington Criminal II Section of the Antitrust Division, and the FBI’s Mobile Field Office, with the assistance of the U.S. Attorney’s Office for the Southern District of Alabama. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Washington Criminal II Section of the Antitrust Division at 202-598-4000, call the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, or visit www.justice.gov/atr/contact/newcase.htm.
These charges have been filed in connection with the president’s Financial Fraud Enforcement Task Force. The president established the task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information about the task force, please visit www.StopFraud.gov. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Washington Criminal II Section of the Antitrust Division at 202-598-4000, call the Antitrust Division’s Citizen Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
Additional Defendant Charged in Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a federal grand jury has returned a superseding indictment charging Robert Hall, 40, of Buffalo, NY, with conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, and attempted possession with intent to distribute 500 grams or more of cocaine. The charges carry mandatory minimum 10 years in prison, a maximum of life, and a $10,000,000 fine. In addition, Clarence Adams, 34, of Buffalo, NY, who was previously charged by complaint in this case, was also indicted on the same two charges.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that according to the previously filed complaint and superseding indictment, on May 13, 2016, law enforcement officers seized three packages containing suspected cocaine that were shipped from Texas to Buffalo. The cocaine was hidden inside air purifiers. Officers seized two of the packages before they were delivered and set up controlled deliveries to addresses on Tyler and Custer Streets in Buffalo.
The three packages contained a total of five kilograms of cocaine. Hall allegedly paid the intended recipients of the packages in crack cocaine.
During a subsequent search of a Mount Vernon Street residence where Adams lived, officers recovered a drug ledger that calculated the amount necessary to purchase 5 kilograms of cocaine from Adams’s bedroom. Also recovered were a digital scale and other drug preparation materials.
Adams and Hall were arraigned before U.S. magistrate Judge Jeremiah J. McCarthy. Adams and Hall are both being held.
The superseding indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast, and the Cheektowaga Police Department, under the direction of Chief David Zack.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
9 Defendants Named in Federal Indictment that Alleges $6 Million in Losses Resulting from Jewelry Store Robberies across SouthlandRead the Press Release
LOS ANGELES – Law enforcement authorities this morning arrested four defendants who are charged in a federal indictment with participating in a conspiracy that planned and executed a series of brazen smash-and-grab robberies that targeted millions of dollars worth of Rolex and other high-end Swiss watches being sold at retail outlets across Southern California.
The indictment charges a total of nine defendants, six of whom allegedly planned and organized the robberies, and three of whom allegedly participated in one or more of the robberies. In addition to four defendants arrested this morning by special agents with ATF and deputies with the Los Angeles County Sheriff’s Department, three defendants are already in custody. Authorities are continuing to search for two remaining defendants.
Members of conspiracy allegedly selected jewelry stores based on their inventory of expensive watches, including those manufactured by Rolex, Audemar Piguet and TAG Heuer. The organizers of the conspiracy recruited financially desperate young men to perform the smash-and-grab robberies, often by promising large sums of money if they were successful. However, when those involved in the actual robberies were eventually paid, they often received much less than what they had promised, despite stealing watches and other jewelry worth approximately $6 million.
“The organizers of this ring carefully planned and executed a series of daylight robberies that terrified and endangered store employees and bystanders,” said United States Attorney Eileen M. Decker. “The indictment and arrests today demonstrate that ringleaders cannot escape prosecution by sending lower-level participants in to commit the crimes on their behalf.”
The 13-count indictment, which was returned under seal by a federal grand jury in Santa Ana on June 8, charges all nine defendants with violating the Hobbs Act by conspiring to interfere with commerce by robbery. The conspiracy count alleges a string of 10 robberies between early August 2015 and April of this year. One heist at a store in the Century City mall allegedly netted watches worth more than $1.6 million and involved one of the robbers firing a shot from a rifle at a security guard who was trying to secure the store.
“Those who plan, equip or facilitate violent crime do not avoid accountability by never brandishing a firearm,” said ATF Special Agent in Charge Eric D. Harden. “ATF stands ready to combine resources with our state and local partners to pursue federal criminal charges against all that use violence to victimize businesses and endanger the public that patronizes them, regardless of their role.”
“This is a fine example of another successful collaborative effort between the Los Angeles County Sheriff’s Department’s Major Crimes Bureau and the Bureau of Alcohol, Tobacco, Firearms and Explosives,” said Captain Myron Johnson of the LASD’s Major Crimes Bureau. “Investigators from both agencies worked countless hours to bring several individuals who operated a highly sophisticated robbery crew to justice. This crew victimized a number of luxury, high-end watch establishments causing millions of dollars in losses to the victims."
The nine defendants are each charged in at least one of six counts alleging a Hobbs Act robbery. Five of the defendants are charged in at least one of six counts of using a firearm in relation to a crime of violence.
The nine defendants named in the indictment are:
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Darrell Dent, 39, of Inglewood, who was arrested and who is accused of being the leader of the conspiracy;
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Keith Walton, 45, of Los Angeles, another key figure in the conspiracy, who was already in federal custody on an unrelated charge;
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Robert Johnson, 27, of Inglewood, who was arrested and who allegedly recruited robbers and supplied firearms used during several of the robberies;
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Stanley Ford, 47, of Los Angeles, who was arrested and who is accused of being an organizer of the robberies;
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Justin Henning, 28, of Inglewood, who was arrested and who allegedly helped recruit some of the robbers;
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Evan Scott, 27, of Inglewood, currently a fugitive, who allegedly was a gunman in two of the robberies;
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Kenneth Paul, 21, of Los Angeles, currently a fugitive, who allegedly helped recruit robbers;
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Jameson Laforest, 24, of Inglewood, who was already in state custody on an unrelated charge and who allegedly received watches stolen during a robbery in Torrance; and
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Marshawn Marshall, 18, of Inglewood, who was already in federal custody after being arrested in March 2016 on charges of participating in a jewelry store robbery in Mission Viejo.
Those arrested this morning are expected to be arraigned on the indictment this afternoon in United States District Court in downtown Los Angeles.
According to the indictment, the organizers planned the details of the robberies, including selecting the display cases to be smashed, and providing the firearms, tools, disguises and stolen cars used in the robberies.
The conspiracy count in the indictment alleges that 10 robberies were committed:
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the August 3, 2015 robbery of Edward George Jewelers in Canoga Park, during which approximately $59,105 in watches and engagement rings were stolen;
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the August 24, 2015 armed robbery of Rolex Boutique Geary’s in the Century City Mall, during which 40 Rolex watches with an approximate retail value of $1.63 million were stolen;
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the October 21, 2015 armed robbery of Frederic H. Rubel Jewelers in the Shops at Mission Viejo, during which 40 Rolex watches and David Yurman jewelry with an approximate retail value of $595,000 were stolen;
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the January 22, 2016 armed robbery of Manya Jewelry in Woodland Hills, during which three Rolex watches and other assorted watches and jewelry with an approximately retail value of $192,410 were stolen;
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the February 7, 2016 robbery of Ben Bridge Jewelers in the Oaks Mall in Thousand Oaks, during which 35 Rolex watches with an approximate retail value of $298,000 were stolen;
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the February 17, 2016 armed robbery of Westime in West Hollywood, during which 18 Audemars Piguet watches with an approximately retail value of $576,200 were stolen;
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the February 29, 2016 armed robbery of Ben Bridge Jewelers in the Del Amo Fashion Center in Torrance, during which 30 Rolex watches with an approximate retail value of $456,325 were stolen;
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the March 9, 2016 armed robbery of Ben Bridge Jewelers in Canoga Park, during which 36 Rolex watches with an approximate retail value of $662,650 were stolen;
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the March 22, 2016 robbery of Westime in Malibu, during which 66 Audermar Piguet, Breitling, Franck Muller, Omega and Hublot watches with an approximate retail value of $1.42 million were stolen; and
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the April 24, 2016 robbery of Ben Bridge Jewelers in Santa Monica, during which three Rolex watches and other assorted watches and jewelry with an approximate retail value of $192,000 were stolen.
Along with the nine defendants named in the indictment unsealed today, another nine defendants were previously named in a series of indictments that accuse them of participating in various jewelry store robberies.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The seven counts that allege violations of the Hobbs Act each carry a statutory maximum penalty of 20 years in federal prison. The charges that allege use of a firearm during the robberies carry a consecutive sentence of seven years, or 10 years if the gun is discharged during the underlying offense.
The investigation into the robbery ring is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Los Angeles County Sheriff's Department.
The cases resulting from the investigation are being prosecuted by Assistant United States Attorneys Scott D. Tenley of the Santa Ana Branch Office and Jeffrey M. Chemerinsky of the Violent and Organized Crime Section.
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Wednesday 15 June 2016
Yorba Linda Chiropractor Sentenced to Four Years in Prison for Defrauding Investors in $2 Million Real Estate Ponzi SchemeRead the Press Release
SANTA ANA, California – A Yorba Linda chiropractor who solicited more than $2 million from investors in a real estate scam has been sentenced to four years in federal prison.
Bobby Hamby, 56, of Yorba Linda, was sentenced Monday afternoon by United States District Judge Cormac J. Carney, who also ordered the defendant to pay $1,257,628 in restitution.
Hamby pleaded guilty in May 2015 to two counts of wire fraud in connection with a real estate investment scheme he operated while doing business as B+E Family Investments LLC.
Hamby told investors that he would use the money invested in B+E to purchase and improve properties, resell the properties at a profit, and then share the profits with investors. Hamby falsely assured victims that their investments would be secure because he would put their names on the property deeds. At least 22 victims – some of whom were elderly – invested nearly $2.5 million with B+E during the scheme that ran from May 2008 through December 2011.
According to a plea agreement filed in this case, Hamby did not invest the victims’ money as promised. Instead, he spent the majority of his victims’ money to pay for personal expenses. Among other things, Hamby used the money to pay his mortgage, dues at the Yorba Linda Country Club, car payments, attorney fees, medical and dental bills, and expenses incurred at restaurants and several retail stores.
“As a result of Mr. Hamby’s scheme, a number of victims will live out their lives under a dark cloud of financial uncertainty,” said United States Attorney Eileen M. Decker. “Mr. Hamby must now trade the comfortable life that he financed with his victims’ money for this federal prison sentence.”
In addition to the real estate scheme, Hamby also fraudulently solicited investors to finance laser equipment for his chiropractic office. In this separate scheme, Hamby collected approximately $150,000 from November 2010 through May 2011, but used only about $5,000 on laser equipment, spending most of the money on personal expenses that including mortgage payments and private school tuition for his children.
After returning some of the investor’s money in Ponzi-style payments, the total loss for both schemes totaled approximately $1.25 million.
This case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney Gregory W. Staples.
Wetumka Man Sentenced to 108 Months for Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that RODNEY GENE BENNETT, age 25, of Wetumka, Oklahoma, was sentenced to 108 months imprisonment, followed by 4 years of supervised release for POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
The charge is a result of an investigation by the Seminole Nation Tribal Police and the Drug Enforcement Administration. The defendant was indicted in December, 2015.
The Indictment alleged that on or about August 5, 2015, in the Eastern District of Oklahoma, the defendant, RODNEY GENE BENNETT, did knowingly and intentionally possess with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshals Service pending transportation to the designated federal facility at which he will serve his nonparoleable sentence.
Assistant United States Attorney Timothy G. E. Hammer represented the United States.
Vice President of Local Drywall Company Indicted in Income Tax Fraud, False Statements CaseRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged Robert Porter, 52, of Westerville, Ohio with five counts of willfully filing a false income tax return with the Internal Revenue Service (IRS), and one count of making a false statement.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office, James Vanderberg, Special Agent in Charge, the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, Brad Geary, Special Agent in Charge, United States Department of Housing and Urban Development, Office of Inspector General, and Marlon V. Miller, Special Agent in Charge, Homeland Security Investigations announced the indictment that was returned yesterday.
The indictment alleges that Porter, Vice President of Porter Drywall, Inc., filed false personal income tax returns with the IRS for the 2009 through 2013 income tax years in which he omitted $236,064 in income.
In addition, it has been alleged that between June 2011 and December 2011, Porter, as a contractor for a HUD project, made false statements and representations relative to the filing of 29 false U.S. Department of Labor Forms (Forms WH-347). On the Forms, Porter attested to being in compliance with all federal, state, local and F.I.C.A. (Federal Insurance Contributions Act) tax laws with respect to the employees of Porter Drywall, Inc. who worked on the HUD project. Porter allegedly knew the information on the Forms was neither accurate nor complete.
Filing a false income tax return with the IRS is a crime punishable by up to three years imprisonment and a fine of up to $250,000, and making a false statement is a crime punishable by up to five years imprisonment and a fine of up to $250,000.
Acting U.S. Attorney Glassman commended the investigation of this case by the IRS, U.S. Department of Labor, U.S. Department of Housing and Urban Development, and Homeland Security Investigations, and Assistant U.S. Attorney Daniel A. Brown, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
U.S. Postal Service Employee Pleads Guilty to Fraudulently Obtaining Workers Compensation BenefitsRead the Press Release
Greenbelt, Maryland – U.S. Postal Service employee Doreen Allen, age 51, of Temple Hills, Maryland, pleaded guilty today to theft of government property arising from a scheme to fraudulently obtain over $25,000 in worker’s compensation benefits.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul L. Bowman of the U.S. Postal Service, Office of Inspector General;and Special Agent in Charge Robin Blake, of the Washington Regional Office, U.S. Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
According to her plea agreement, Allen was employed by the United States Postal Service as a city carrier at the Capital Heights, Maryland, Processing and Distribution Facility. On September 27, 2002, Allen filed an injury claim which qualified her for Worker’s Compensation. Allen began receiving benefits in November 2002 from the Office of Worker’s Compensation Programs (OWCP), including reimbursement for travel expenses for medical treatment related to her injury.
Between July 2012 and September 2015, Allen received reimbursement for travel expenses for medical care related to one of her injury claims. This compensation was based on vouchers that Allen submitted for 721 trips to receive medical care. Allen admitted that approximately 27 of those trips were for medical care, while the remaining 694 were unrelated. Allen submitted numerous forms to OWCP falsely certifying that she had driven round trip from her home in Temple Hills to a doctor’s office in Laurel, Maryland for medical treatment related to her injury. As a result, Allen fraudulently received $27,639.10 in travel reimbursements.
Allen faces a maximum sentence of 10 years in prison. U.S. District Judge Paula Xinis scheduled Allen’s sentencing for September 13, 2016, at 9:30 a.m.
United States Attorney Rod J. Rosenstein commended the U.S. Postal Service, Office of Inspector General and U.S. Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud Investigations for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Hollis R. Weisman, who is prosecuting the case.
Two Japanese Auto Parts Companies, U.S. Subsidiaries, and Five Executives Indicted for Rigging Automotive Parts BidsRead the Press Release
More Than 100 Charged in Wide-Spread Auto Parts Investigation
A federal grand jury in the U.S. District Court for the Southern District of Ohio returned two indictments charging Japanese automotive parts companies, their U.S. subsidiaries, and a total of five executives for their alleged participation in international conspiracies to eliminate competition in the sale of automotive parts sold in the United States and elsewhere, the Justice Department announced today.
One of the indictments, filed today in Cincinnati, charges Tokai Kogyo Co. Ltd., its wholly-owned U.S. subsidiary, Green Tokai Co. Ltd., and Akitada Tazumi with conspiring to rig bids for and fix the prices of automotive body sealing products sold to Honda Motor Company Ltd. and certain of its subsidiaries and affiliates for installation in vehicles manufactured and sold in the United States and elsewhere. Automotive body sealing products consist of body-side opening seals, door-side weather-stripping, glass-run channels, trunk lids and other smaller seals, which are installed into automobiles to keep the interior dry from rain and free from wind and exterior noises.
In a separate indictment, also filed in Cincinnati, Maruyasu Industries Co. Ltd., its wholly-owned U.S. subsidiary, Curtis-Maruyasu America Inc. (CMA), Tadao Hirade, Satoru Murai, Kazunori Kobayashi and Yoshihiro Shigematsu were charged with conspiring to fix prices, allocate customers, and rig bids for automotive steel tubes sold in the United States and elsewhere. Automotive steel tubes are used in fuel distribution, braking, and other automotive systems and are sometimes divided into two categories – chassis tubes and engine parts. As their names suggest, chassis tubes, such as brake and fuel tubes, tend to be located in the body of a vehicle while engine parts, such as fuel injection rails, oil level tubes, and oil strainer tubes, are associated with the function of a vehicle’s engine.
“These defendants, as is their right, have chosen to put the government to its burden of proof, and we accept that challenge without hesitation,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “We will not be deterred from holding those involved – both corporations and individuals – accountable for their actions, and we welcome the opportunity to prove our cases to a jury.”
“The FBI is committed to aggressively investigating individuals who engage in criminal conduct that corrupts the global marketplace,” said Special Agent in Charge Howard Marshal of the FBI’s Louisville Division. “We will continue our work with the Department of Justice Antitrust Division to uncover schemes aimed at creating an unfair competitive advantage by way of price fixing, bid rigging or other illegal means.”
“The Department of Commerce Office of Inspector General is dedicated to working in conjunction with the DOJ Antitrust Division in protecting the U.S. economy from the type of criminal activity revealed in this case,” said Special Agent in Charge Duane Townsend of the Department of Commerce’s Office of Inspector General. “The charges today represent our diligent cooperative efforts to identify such activity and seek prosecution, whether committed by domestic or international sources, and to deter future attempts to damage our economy through criminal enterprise.”
According to the indictment charging Tokai Kogyo, Green Tokai, and Tazumi, the defendants, along with their co-conspirators, participated in meetings and conversations to discuss the allocation of sales of automotive body sealing products, and the bids and price quotations that they would submit to Honda. The indictment charges that the conspirators agreed on, and exchanged information about, bids, price quotations, and price adjustments to be submitted to Honda, and agreed to allocate sales of automotive body sealing products sold to Honda. The conspirators concealed their conduct by using code in e-mails and instructing e-mail recipients to delete e-mails referencing coordination with competitors, according to the charge.
Tokai Kogyo, Green Tokai, and Tazumi allegedly participated in the automotive body sealing products conspiracy from at least as early as March 2008 until at least August 2011. During this period, Tazumi served as Assistant General Manager at Tokai Kogyo, an Obu, Japan-based company that manufactured and sold automotive body sealing products.
According to the indictment charging Maruyasu Industries, CMA, Hirade, Murai, Kobayashi and Shigematsu, the defendants, along with their co-conspirators, participated in and directed subordinate employees to participate in meetings conversations, and communications in which they agreed to customer allocations as well as bids, prices and price adjustments to be submitted to customers in the United States and elsewhere. The indictment also alleges that the defendants and their conspirators employed measures to conceal their conduct, including meeting surreptitiously and adopting means and methods of communication designed to avoid detection.
Maruyasu Industries, CMA, Hirade, Murai, Kobayashi and Shigematsu allegedly participated in the automotive steel tubes conspiracy from at least as early as December 2003 until at least as late as July 9, 2011. During this period, Hirade, Murai, Kobayashi and Shigematsu served as sales executives at Maruyasu Industries, headquartered in Aichi Prefecture in Japan. Additionally, Kobayashi and Shigematsu each served as sales coordinators at Kentucky-based CMA for several years during the conspiracy.
The charges contained in these indictments are allegations and not evidence of guilt. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The companies charged today are the first companies to be indicted in the ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. A total of 64 individuals and 44 companies have been charged and have agreed to pay more than $2.7 billion in criminal fines. These indictments were brought by the Antitrust Division’s Chicago Office, the FBI’s Louisville Field Office, Covington Resident Agency, and the Department of Commerce’s Denver Field Office, with the assistance of the FBI’s International Corruption Unit, the FBI’s Cincinnati Field Office, and the U.S. Attorney’s Office of the Southern District of Ohio. Anyone with information about anticompetitive conduct in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit www.justice.gov/atr/contact/newcase.html or the FBI’s Louisville Field Office at 502-263-6000.
Tokai Kogyo et al. Indictment
Maruyasu Indictment
Two Arkansas Men Charged in Large-Scale Marijuana and Money Laundering ConspiracyRead the Press Release
CORPUS CHRISTI, Texas - Two men have been taken into custody in an Organized Crime Drug Enforcement Task Force (OCDETF) operation dubbed Operation Black Mask, announced U.S. Attorney Kenneth Magidson.
A federal grand jury indicted David Lee Perry, 45, of Little Rock, Arkansas, and Trolaurice Vaughnzedrick Walker aka T.W., 39, of Texarkana, Arkansas, May 11, 2016. The court unsealed the indictment following their arrests yesterday and today. Perry and Walker are expected to make appearances in court before U.S. Magistrate Judges Beth Deere in Little Rock and Barry Bryant in Texarkana, respectively.
Both are charged with conspiracy to possess with intent to distribute more than 1,000 kilograms of marijuana. Perry is also charged with conspiracy to commit money laundering. The indictment alleges the offenses spanned from 2013 to the present.
Also included in the indictment is a notice of criminal forfeiture regarding a Bank of America bank account in the name of Perry’s Auto Sales Inc. and property derived from proceeds of the criminal conduct or used to commit the violations. The government intends to seek a personal money judgment from the defendants in the amount of $250,000.
If convicted of the marijuana conspiracy, both face a minimum of 10 years and up to life in federal prison and a possible $10 million fine. Walker also another 20 years, upon conviction, as well as a possible $500,000 fine or twice the value of the monetary instrument or funds involved in the transactions or both.
The OCDETF investigation was conducted in Corpus Christi, McAllen, Mission, Falcon Dam, Rio Grande City, Texarkana and Houston. Investigating agencies included Homeland Security Investigations; Internal Revenue Service - Criminal Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Customs and Border Protection; Texas Department of Public Safety; Starr County High Intensity Drug Trafficking Area task force; sheriff’s offices in the Texas counties of Jim Wells, Hidalgo, Hunt and Harris; Miller County, Arkansas, Sheriff’s Office; police departments in Alice, McAllen, Pharr and Texarkana; and the U.S. Marshals Service.
Assistant U.S. Attorney Julie K. Hampton is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Twin Falls County Man Sentenced to 42 Months for Unlawful Possession of FirearmsRead the Press Release
BOISE – Michael A. Southerland, 26, of Twin Falls County, Idaho, was sentenced yesterday to 42 months in prison for unlawful possession of firearms, U.S. Attorney Wendy J. Olson announced. Chief United States District Judge B. Lynn Winmill also ordered Southerland to serve three years of supervised release and to pay a $1,000 fine. Southerland pleaded guilty on March 21, 2016.
According to the plea agreement, Southerland admitted that on October 28, 2015, he knowingly possessed two firearms after having been convicted of felony possession of a destructive device in California.
Southerland was arrested after law enforcement responded to a 911 call to the residence that he shared with his girlfriend, Lillian Cawley, and her daughter. The residence formerly belonged to Glen Cawley, Lillian Cawley’s estranged husband. In March 2015, Glen Cawley was found dead at the residence, having been shot in the back of the head with a shotgun. Lillian Cawley and Southerland subsequently moved into the residence. The murder of Glen Cawley is still under investigation.
The case was investigated by the FBI, the ATF, and the Twin Falls County Sheriff’s Office.
Tulsa Wife and Husband Sentenced in Tax Fraud SchemeRead the Press Release
TULSA, Okla.—A Tulsa woman was sentenced to 30 months in prison for her role in a fraudulent tax return scheme that falsely generated refunds totaling over $472,000 from the United States Treasury.
United States Attorney Danny C. Williams Sr. of the Northern District of Oklahoma, Special Agent in Charge Damon Rowe of the IRS-Criminal Investigation Dallas Field Office, and Resident Agent in Charge Ted Maliga of the United States Secret Service Tulsa Office made the announcement.
Chanesha Makala Jones, 33, and her husband Cory Mack Jones, 37, were each charged by a superseding indictment on May 5, 2015, and in August 2015, both defendants pleaded guilty to one count of conspiracy to defraud the government and two counts of false claims against the government.
In November 2015, Cory Jones was sentenced to 24 months in prison, and ordered to repay $472,021 as restitution to the Internal Revenue Service which today the court also ordered Chanesha Jones to pay.
According to court documents filed in the case, from January 2010 to April 2012, Chanesha and Cory Jones filed false tax returns using stolen personally identifiable information of various individuals. As part of the scheme, Chanesha Jones obtained personal information from living individuals, and Cory Jones obtained personal information of deceased individuals. Cory Jones used false income and employment information along with the genuine personal information obtained to create fraudulent tax returns. Chanesha Jones admitted to submitting two of the fraudulent tax returns to the IRS.
Based on the false personal information, each fraudulent tax return qualified for the refundable Earned Income Credit, generating tax refunds which the IRS deposited into either the bank account of Cory Jones or the bank account of a friend of the Joneses. The friend would then pay the money to the Joneses and Chanesha and Cory Jones would share the refund money between themselves. They would also pay some of the refund money to the individuals whose personal information they used to create the fraudulent tax returns.
The case was investigated by IRS-Criminal Investigation and the United States Secret Service. Assistant United States Attorneys Kevin Leitch and Clemon Ashley prosecuted the case.
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Treasurer of Mahopac Volunteer Fire Department Charged with Embezzling More Than $5.7 Million and Failing to Report the Income to the IRSRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Shantelle P. Kitchen, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service - Criminal Investigation (“IRS-CI”), Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), George Beach, Superintendent, New York State Police, and Thomas P. DiNapoli, New York State Comptroller, today announced the arrest of MICHAEL KLEIN, the former treasurer of the Mahopac Volunteer Fire Department (“MVFD”), on charges of wire fraud and subscribing to false tax returns.
Manhattan U.S. Attorney Preet Bharara stated: “Michael Klein repaid the trust his fellow volunteer firefighters placed in him by allegedly stealing $5.7 million of their money over a period of more than 13 years as their elected treasurer. As alleged, Klein lavished the embezzled money on himself, buying yachts, jewelry, and a second home in Florida, and then failed to report any of it on his tax returns. Public corruption victimizes the public generally, but here, the people of Mahopac and its volunteer firefighters have suffered specifically and directly, having lost almost $6 million that could have been used for good, but instead was allegedly squandered away by Klein. ”
IRS Special Agent in Charge Shantelle P. Kitchen said: “Criminal tax investigations are often intertwined with investigations of alleged thefts by individuals entrusted with the stewardship of an organization’s assets. Individuals who have access to an organization’s bank accounts, books and records, and financial resources should seriously consider all of the consequences if they are inclined to embezzle. In addition to charges relating to the underlying financial theft, embezzlers expose themselves to federal criminal tax charges when they willfully fail to declare the proceeds of the thefts on their tax returns.”
FBI Assistant Director in Charge Diego Rodriguez said: “The subject of this investigation spent more than a decade living life in high style, while his fellow firefighters were busy volunteering their time to save people’s homes and lives. He allegedly embezzled millions of dollars in money that could have gone to help the firefighters in his department do their jobs. The FBI and our law enforcement partners won’t allow this type of greed to overshadow the great service the men and women on this volunteer fire department do each and every day they show up for work.”
New York State Police Superintendent George Beach said: “I commend the work performed on this case by our investigators from Troop K, the State Comptroller’s Office, and our federal partners. Our investigation revealed that this individual took millions of dollars meant to support the community’s fire department, and instead used it for his own personal gain. We will have no tolerance for those who abuse their position.”
New York State Comptroller Thomas P. DiNapoli said: “Mr. Klein allegedly stole nearly six million dollars from the Mahopac Volunteer Fire Department. Rather than protecting his neighbors as he pledged, they paid the price for his alleged thievery. I thank United States Attorney Preet Bharara, the Federal Bureau of Investigation, the New York State Police, and the Internal Revenue Service for their work with my office to bring Mr. Klein to justice.”
As alleged in the Indictment unsealed today in White Plains federal court[1]:
Michael Klein was first elected treasurer of the MVFD in 2001. From in or about January 2002 to in or about September 2015, Klein embezzled MVFD funds under his control by writing checks to the two businesses he owned, Abbie Graphic Services, Ltd. (“Abbie Graphic”) and Buckshollow Emergency Equipment Corp. (“BEEC”). Klein then deposited the checks to bank accounts held by Abbie Graphics or BEEC. He entered these checks into the MVFD’s books as having been made payable to various vendors, other than Abbie Graphics or BEEC, that sold firefighting equipment or services used by fire departments.
Klein embezzled more than $5.7 million by writing more than 275 checks over a period of more than 13 years. He used the money to purchase, among other things, yachts, including a 55-foot Neptunus motor yacht named “K’Bam;” a second residence in Palm City, Florida; and jewelry. He also used the money to support Abbie Graphic and BEEC. Klein also failed to report any of this income on his personal tax returns for the period from 2009 through 2014, thereby subscribing to false tax returns for each of these years.
Following the discovery by law enforcement in the fall of 2015 of Klein’s embezzlement, Klein offered K’Bam for sale with a yacht broker in Florida for $229,000. He rejected an offer he received of $175,000 but sold K’Bam to an automobile dealer for the $136,850 he owed on a loan secured by K’Bam. The dealer is now offering K’Bam for sale for $260,000.
* * *
KLEIN, 48, of Mahopac, New York, and Palm City, Florida, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and six counts of subscribing to false tax returns, each of which carries a maximum sentence of three years in prison.
Mr. Bharara praised the outstanding investigative work of the IRS, FBI, New York State Police, and New York State Comptroller. He thanked the Putnam County District Attorney’s Office for its assistance in the investigation.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney James McMahon is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Topeka Man Sentenced for Gas Station RobberyRead the Press Release
TOPEKA, KAN. - A Topeka man was sentenced today to three years in federal prison for robbing a gas station, Acting U.S. Attorney Tom Beall said.
Darrian Michael Stewart, 22, Topeka, Kan., pleaded guilty to one count of bank robbery. In his plea, he admitted that on June 20, 2014, he robbed a BP convenience store at 1401 S.W. Huntoon Avenue in Topeka. He entered the store about 8:23 p.m. before approaching the clerk at the counter with what appeared to be a black handgun and demanding money. He fled the store on foot. Later he was identified from surveillance video and arrested.
Beall commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Three Homewood Men Charged with Attempted Robbery and Violating Firearms LawsRead the Press Release
PITTSBURGH – Three Pittsburgh residents have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy and attempt to commit robbery and violating federal firearms laws, United States Attorney David J. Hickton announced today.
The six-count indictment, returned on June 14, named Anthony Bailey, age 37; Raymond Denson, age 36; and David Lipinski, age 35; all of Pittsburgh.
According to the indictment presented to the Court, the defendants conspired and attempted to rob an individual of pharmaceutical products on April 27, 2016, and brandished a firearm while doing so. The indictment also alleges that the defendants, each of whom is a convicted felon, possessed firearms despite being prohibited by law from doing so.
The law provides for a minimum sentence for each defendant of not less than seven years and a maximum of life in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter, and prosecute gun crime. Assistant United States Attorney Conor Lamb is prosecuting this case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Northern Regional Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Thirty-Two Charged in Manhattan Federal Court for Narcotics and Firearm OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Delano A. Reid, Special Agent in Charge of the New York Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), and William J. Bratton, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing this morning of two indictments, charging a total of 32 defendants with participating in conspiracies to distribute and possess with intent to distribute large quantities of crack cocaine in around the Lincoln Housing Development in East Harlem, New York (the “Lincoln Houses”). Six defendants are also charged with possessing and using firearms in connection with one of the narcotics trafficking conspiracies. Twenty-three defendants were taken into custody today and are expected to be presented in Manhattan federal court later today before U.S. Magistrate Judge James C. Francis IV. Five defendants are incarcerated in various locations in New York and are expected to be transported to the Southern District of New York within the next two weeks. Four defendants remain at large.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, these defendants blanketed the entire expanse of the Lincoln Houses with their round-the-clock drug dealing operation, using guns and violence to protect it. All New Yorkers, including the residents of NYCHA housing, are entitled to live in neighborhoods free of drugs and the inevitable violence that comes with it. Our actions today, with our partners at the ATF and NYPD, are a step toward making that a reality for the residents of the Lincoln Houses in East Harlem.”
ATF Special Agent in Charge Delano A. Reid said: “These defendants attempted to consolidate power over narcotics distribution in and around the Lincoln Houses, turning that community into an open air drug market. In the process they are alleged to have had access to firearms and to have engaged in acts of violence to protect and maintain their drug business. Today we say no more. The members of this criminal organization thought that they could use firearms and violence to shield themselves and their illicit activities. Instead, they have made themselves the targets of ATF and our law enforcement partners. Today’s arrests will help to preserve dignity and restore safety for law abiding residents of the Lincoln Houses and surrounding communities. To those that think they can use firearms and violence as tools to further their criminal ambitions, let this be a warning that we in law enforcement will be at the ready to ensure that your fate is the same as those arrested today. ATF would like to thank the NYPD and United States Attorney’s Office for their professionalism and perseverance during this long term investigation.”
NYPD Commissioner William J. Bratton said: “This long term investigation targeted key members of an East Harlem gang who, as alleged, distributed crack cocaine and engaged in rampant gun violence, willfully disregarding the safety of residents living in the Lincoln Houses. I commend both my NYPD detectives and our federal partners, whose diligence and perseverance have disrupted this criminal operation.”
As alleged in the indictments and in other documents previously filed in Manhattan federal court[1]:
The New York City Housing Authority (“NYCHA”) operates, among others, a housing development in the East Harlem neighborhood of Manhattan, New York: the Lincoln Houses, spanning an area between East 132nd Street and East 135th Street to the North and South, and Park Avenue and Fifth Avenue, to the East and West.
From at least in or about 2008, up to and including in or about 2016, in the Southern District of New York and elsewhere, RASHEED BAILEY, a/k/a “Ciroc,” WILLIAM BRYANT, a/k/a “Kenny,” KEVIN CHAVIS, JEFFREY CHILDS, a/k/a “Pap,” a/k/a “CJ,” TYRONE GLADDEN, a/k/a “Ty Boogie,” a/k/a “Ty Zooted,” TRAVIS HARRY, a/k/a “Trav Game,” RICHARD HILL, MICHAEL JOHNSON, a/k/a “Air,” KEVIN LEWIS, a/k/a “Ice,” DONTE McGILL, TORELL NIUELDER, a/k/a “Young,” a/k/a “Relli,” TUQUAN ROGERS, a/k/a “Tay,” DONALD ROSE, JAMAL RUSSEL, a/k/a “Mally,” LUKE RYANT, a/k/a “Berger,” KEVIN SAXON, a/k/a “Sax,” ANDREW SINGLETON, a/k/a “Drew,” SEON THOMAS, a/k/a “Cee,” a/k/a “Goon,” HENRY TRENTON, a/k/a “Kay,” a/k/a “Kels,” RENE VELEZ, a/k/a “White Boy,” TREVOR WATSON, a/k/a “Trev Wild,” and TYLER WILLIAMS, a/k/a “Ty Cracks,” and others known and unknown, conspired to distribute significant amounts of crack cocaine, in and around, among other places, the “West Side” of Lincoln Houses. Specifically, these defendants sold narcotics most frequently on public streets and inside public housing developments between East 132nd Street and East 135th Street, to the North and South, and between Madison Avenue and Fifth Avenue, to the East and West.
During the same time period, KAREEM ALLEN, a/k/a “Rocket,” HAROLD HILL, a/k/a “Dee Wee,” AARON JOHNSON, a/k/a “A,” ANTOINE MITCHELL, a/k/a “Red,” JEREL POOL, a/k/a “Nast,” DEREK SMITH, a/k/a “Ice,” MARK SMITH, NAJHEA SMITH, a/k/a “Boogz,” QWAME THOMAS, a/k/a “Afro,” BERNARD WALKER, a/k/a “M,” the defendants, and others known and unknown, conspired to distribute significant amounts of crack cocaine in and around, among other places, the “East Side” of Lincoln Houses. Specifically, these defendants sold narcotics most frequently on public streets and inside public housing developments between East 132nd Street and 135th Street, to the North and South, and Park Avenue to Madison Avenue, to the East and West.
The narcotics organizations operating on the West Side and the East Side of the Lincoln Houses distributed crack cocaine 24 hours each day, seven days each week.
In addition, members of the West Side organization had access to firearms and engaged in acts of violence in order to, among other reasons, protect and maintain their drug business, including JEFFREY CHILDS, a/k/a “Pap,” a/k/a “CJ,” TUQUAN ROGERS, a/k/a “Tay,” JAMAL RUSSEL, a/k/a “Mally,” LUKE RYANT, a/k/a “Berger,” SEON THOMAS, a/k/a “Cee,” and TREVOR WATSON, a/k/a “Trev Wild.”
* * *
All of the defendants face mandatory minimum prison terms ranging from 10 years to 15 years, and maximum terms of life in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentences imposed on the defendants will be determined by the Court.
A chart containing the names of the defendants who were arrested today, and the charges and maximum penalties they face, is attached.
Mr. Bharara praised the outstanding investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New York City Police Department.
The prosecution is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Amanda Houle, Hadassa Waxman, and Michael Gerber are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
CHARGE(S)
DEFENDANTS
MAXIMUM PENALTIES
Conspiracy to distribute and possess with intent to distribute 280 grams and more of crack cocaine.
RASHEED BAILEY, WILLIAM BRYANT, KEVIN CHAVIS,JEFFREY CHILDS, TYRONE GLADDEN, TRAVIS HARRY, RICHARD HILL, MICHAEL JOHNSON, KEVIN LEWIS, DONTE McGILL, TORELL NIUELDER, TUQUAN ROGERS, DONALD ROSE, JAMAL RUSSEL, LUKE RYANT, KEVIN SAXON, ANDREW SINGLETON, SEON THOMAS, HENRY TRENTON, RENE VELEZ, TREVOR WATSON, TYLER WILLIAMS, KAREEM ALLEN, HAROLD HILL, AARON JOHNSON, ANTOINE MITCHELL, JEREL POOL, DEREK SMITH, MARK SMITH, NAJHEA SMITH, QWAME THOMAS, and BERNARD WALKER.
Life in prison
Mandatory minimum: 10 years in prison
Possession of a firearm in furtherance of a narcotics trafficking offense
JEFFREY CHILDS, TUQUAN ROGERS, JAMAL RUSSEL, LUKE RYANT, SEON THOMAS, and TREVOR WATSON
Life in prison
Mandatory minimum: 5 years in prison, to be imposed consecutively to any other sentence
[1] As the introductory phrase signifies, the entirety of the text of the Indictments, and the description of the Indictments set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Stamford Resident Admits Orchestrating Murder for Hire SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Daniel J. Kumor, Special Agent in Charge of the ATF Boston Field Division, announced that LARRY TALLEDO-TORREJON, 29, a citizen of Peru last residing in Stamford, pleaded guilty today in Hartford federal court to orchestrating a murder for hire scheme.
According to court documents and statements made in court, in early December 2015, TALLEDO-TORREJON, as part of a contract to purchase a restaurant in Stamford for $300,000, provided the seller of the restaurant with $150,000 in cashier checks and an additional $150,000 in checks drawn on bank accounts with insufficient funds. On December 5, TALLEDO-TORREJON directed an individual who owed him $5,000 to follow the manager of the restaurant (“G.R.”) to his home in New York and to murder him. In exchange for doing so, TALLEDO-TORREJON agreed to forgive the $5,000 debt and to pay the individual an additional $5,000 in cash. The individual subsequently contacted law enforcement to report the incident, and then contacted TALLEDO-TORREJON to tell him that he had kidnapped G.R. and was holding him.
On December 7, 2015, TALLEDO-TORREJON provided the individual with a manila folder containing two copies of a receipt that falsely stated that TALLEDO-TORREJON had provided G.R. with $150,000. TALLEDO-TORREJON directed the individual to provide the receipts to G.R., coerce G.R. into signing them, and then kill him. TALLEDO-TORREJON told the individual that his pre-existing debt had been cancelled, and also suggested that they could start a business kidnapping and extorting money from persons.
On December 8, TALLEDO-TORREJON made a complaint with the Stamford Police Department falsely claiming that G.R. had stolen $150,000 that TALLEDO-TORREJON had provided G.R. to complete the purchase of the restaurant.
TALLEDO-TORREJON was arrested on December 8 after the individual provided him with the receipts signed by G.R., and TALLEDO-TORREJON provided the individual with $500 in partial payment for the murder.
TALLEDO-TORREJON is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on September 7, 2016, at which time he faces a maximum term of imprisonment of 10 years. He has been detained since his arrest.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant U.S. Attorney Rahul Kale.
St. Louis Area Man Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – Stacey Wilson was sentenced to 81 months in prison on charges involving wire and bank fraud.
According to court documents, on or about November 1, 2013, and continuing to on or about December 1, 2015, Stacey Wilson and his accomplice recruited approximately 53 individuals to open checking accounts at U.S. Bank with nominal amounts of money, or provide access to their existing checking accounts. The recruited individuals provided their debit cards and checks issued on the accounts. In addition to checks and debit cards received from the recruited individuals, they obtained checks and debit cards from the victims of motor vehicle break-ins. Wilson and his accomplice drafted the checks in amounts ranging from $195.00 to $2,300.00 before depositing them into different fraudulently issued accounts through electronic wire transmissions of the checks’ images or through direct deposits. As soon as the funds were deposited, Wilson and others obtained funds from the financial institutions through automated teller machine transactions, counter withdrawals or debit card purchases. Unbeknownst to the financial institutions which accepted the fraudulently obtained checks for deposit, the accounts upon which the checks had been drawn were artificially inflated or had been closed as being fraudulent. As a result of the scheme, Wilson and others obtained, and attempted to obtain, more than $79,000.00 through more than 270 fraudulent transactions.
Wilson, of St. Louis City, pled guilty March 16, 2016, to felony counts of aggravated identity theft, wire fraud and access device fraud. He appeared today for sentencing before United States District Judge Ronnie L. White. In addition to the sentence of 81 months imprisonment, Wilson was ordered to pay restitution in the amount of $44,325.66.
The case was investigated by the United States Postal Inspection Service. Assistant United States Attorney Tracy Berry handled the case for the U.S. Attorney’s Office.
St. Albans man sentenced to five years in Federal prison for drug-related gun crimeRead the Press Release
CHARLESTON, W.Va. – A St. Albans man caught with fentanyl, marijuana, several pistols, and three assault rifles was sentenced today to five years in federal prison, announced Acting United States Attorney Carol Casto. O’Neil Anthony Peart, 37, previously pleaded guilty to possession of firearms in furtherance of drug trafficking offenses.
On December 4, 2015, drug task force officers executed a search warrant at Peart’s Walnut Street apartment in St. Albans. Among other items, police seized eight firearms, including three “AR”-style assault rifles with high-capacity magazines, approximately 21 grams of fentanyl, approximately 7.5 pounds of marijuana, and more than $5,300 in cash. All but two of the firearms were loaded.
The Metropolitan Drug Enforcement Network Team, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the St. Albans Police Department investigated this case. Assistant United States Attorney Joshua Hanks is in charge of the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This case was prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime. This case was also brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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