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2 August 2016
Pair Sentenced to Total of 16 Years in Federal Prison for Drug TraffickingRead the Press Release
Hot Springs, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that two defendants were sentenced last week for drug trafficking. Michael Weldon Fryar, age 32 of Pearcy, Arkansas, was sentenced on July 28 to 110 months in federal prison followed by three (3) years of supervised release on one count of Conspiracy to Distribute Methamphetamine. Larry Nevels, Jr., age 29, of Mountain Pine, Arkansas, was sentenced on July 29 to 84 months in federal prison followed by three (3) years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Susan O. Hickey presided over the sentencing hearings in the United States District Court in Hot Springs.
Fryar: According to the court records, in June, 2015, investigators with Homeland Security Investigations (HSI) as well as the 18th East Drug Task Force in Garland County began receiving reports that Fryar was distributing methamphetamine in the area. Further investigation revealed that Fryar and his associates were transporting the methamphetamine from Fayetteville to the Hot Springs area. On July 21, 2015, while performing surveillance, investigators identified Fryar and Garry Rogers both driving separate vehicles and traveling south on Highway 71 near Mansfield. A traffic stop was initiated on Roger’s vehicle, and he was arrested for driving with a suspended license. Fryar continued to drive on in his vehicle but came back to the scene of the traffic stop. Officers ordered him out of his vehicle, but allowed him to leave after they interviewed his passenger. A search incident to the arrest of Rogers revealed a Tupperware container which contained approximately 362 grams of methamphetamine. Investigators also located a cell phone and motel keys. A search warrant was obtained for the cell phones of Fryar and Rogers which revealed discussions regarding the trafficking of methamphetamine. Fryar was indicted by a federal grand jury in September, 2015 and pleaded guilty to the charge in November, 2015. Garry Rogers was indicted by a federal grand jury in September, 2015, pleaded guilty to the charge in March, 2016, and is awaiting sentencing.
Nevels: According to court records, on August 13, 2014, officers with the Mountain Pine Police Department initiated a traffic stop on a vehicle in which Nevels was a passenger. Upon making contact with the occupants, officers could smell a strong odor of marijuana coming from the vehicle. They requested and received consent from the driver to search the vehicle. During the search, officers located a hidden compartment behind the stereo in the dashboard containing two bags of methamphetamine, numerous hydrocodone pills, zanax bars, and a loaded Ruger .22 caliber pistol, which was reported stolen out of Garland County, Arkansas. Nevels and the driver were both arrested and taken into custody. During a search, officers located $1,000.00 in Nevel’s pants pocket. He was later interviewed at the Garland County jail by an agent with HSI as well as a detective from the Drug Task Force. Subsequent to being advised of and waiving his Miranda rights, he admitted to selling methamphetamine and to being in possession of the drugs found in the car. The drugs located in the vehicle were sent to the Arkansas State Crime lab for testing where they were determined to be 7.1 grams of methamphetamine; 27 grams of hydrocodone; 2.7 grams of alprazolam; and, 27 grams of codeine. Nevels was indicted by a federal grand jury in November, 2014 and pleaded guilty to the charge in April, 2015.
Agencies involved in the investigation of these cases were Homeland Security Investigations, 18th East Drug Task force in Garland County, Garland and the Mountain Pine Police Department. Assistant United States Attorney David Harris prosecuted the cases for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Owner of Cake Shop Sentenced to Prison for Money LaunderingRead the Press Release
NORFOLK, Va. – Cheron Marie Johnson, 31, of Portsmouth, was sentenced today to 90 months in prison for conspiracy to commit money laundering and for false statement in a tax filing. According to the plea agreement, Johnson will pay $338,860 in criminal forfeiture and $211,278 in restitution.
According to court documents, Johnson laundered over $840,000 through 11 bank accounts over the course of a four year conspiracy with her husband, Vernon Norvell, who was sentenced on July 19 to 16 years in prison for his role in distributing over 126 pounds (57 kilograms) of cocaine.
Johnson deposited nearly a half-million dollars in cash into numerous accounts, and together with Norvell, used a real estate transaction and cake business, “G’s Cake Shop – Cake For All Occasions” in Virginia Beach to launder the drug proceeds. In 2014, Johnson claimed unemployment benefits for six months while simultaneously depositing over $322,000 into her various accounts.
Johnson and Norvell used the proceeds of his cocaine distribution to purchase a home in the Crystal Lake neighborhood of Portsmouth, several automobiles, expensive clothing and other material items.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Karl C. Colder, Special Agent in Charge of Drug Enforcement Administration (DEA) Washington Field Division; and Thomas Jankowski, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation, made the announcement after sentencing by U.S. District Chief Judge Rebecca Beach Smith. Special Assistant U.S. Attorney John F. Butler and Assistant U.S. Attorneys Andrew C. Bosse and Joseph E. DePadilla prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-48
Owner of Boston Cab Charged with Tax and Fraud OffensesRead the Press Release
BOSTON – Edward J. Tutunjian, who has owned and operated Boston Cab for more than four decades, was charged today in U.S. District Court with payroll tax evasion, employing illegal aliens and with failing to pay overtime wages.
Tutunjian’s company, EJT Management, Inc., through which he operated Boston Cab, also was charged with defrauding the U.S. Department of Housing and Urban Development (HUD) by enabling EJT employees to obtain federal housing subsidies to which they were not entitled. Both Tutunjian and EJT have signed plea agreements in which they agree to make full restitution for their crimes, totaling more than $2.3 million.
Tutunjian, 66, of Belmont, was charged in an Information with five counts of tax evasion, one count of employing illegal aliens and one count of violating the Fair Labor Standards Act for failing to pay overtime wages. EJT Management, Inc. was charged in the same Information with aiding and abetting the theft of public money.
Since approximately 1972, Tutunjian and EJT have operated the Boston Cab taxicab business in the greater Boston area. By 2014, Tutunjian and EJT owned approximately 372 taxi medallions – a government license permitting a car to be used to transport passengers for hire – which they leased to drivers and for which Tutunjian and EJT received millions of dollars in gross revenues each year, mostly in cash. Although the taxi drivers were self-employed, Tutunjian and EJT directly employed mechanics, dispatchers, office workers, and others. It is alleged that a number of those employees were undocumented aliens who, because of that status, were not authorized to work in the United States.
Tutunjian allegedly concealed the size of the company payroll from the IRS, and thereby concealed the amount of federal employment taxes he and EJT would be responsible for paying. He did this by paying employees entirely or partially in cash and keeping such cash payments off the books. By doing this, he ensured there would be no record of cash payments that could be inspected by the IRS. Employees who were illegal aliens, and therefore not authorized to work in the United States, were allegedly paid entirely in cash. EJT did not issue W-2 forms to those employees and did not withhold or pay federal income tax, Social Security tax, or Medicare tax with regard to those illegal alien employees.
Other employees who were citizens or permanent resident aliens received their wages partly in cash and partly by check. Tutunjian filed quarterly employment tax returns for EJT which did not include the amounts which had been paid in cash to EJT employees. In this way, EJT evaded, and aided and abetted its employees in evading, approximately $739,204 in taxes from 2009 to 2013.
Tutunjian also allegedly did not pay the required overtime rate to employees who worked more than 40 hours a week. To conceal this, Tutunjian required certain employees to punch in 40 or fewer hours per week on an electronic time clock whose information was sent to the outside payroll company that prepared the payroll checks and W-2s, even though those employees had actually worked more than 40 hours per week, in some instances 50 or 60 hours a week. It is alleged that Tutunjian paid those workers in cash for their overtime hours, at the regular-time rate rather than the required time-and-a-half.
According to documents filed with the Court, a number of EJT’s employees were living in federally subsidized housing in Cambridge and elsewhere, some of which had waiting lists for prospective tenants. The amount of the federal housing subsidy, as well as the eligibility to live in the units, depended on the tenant’s income. HUD did not rely solely on a tenant’s statement of his/her income, but also compared it to the tenant’s W-2 wages and generally required employers such as EJT to provide written verification. From January 2009 to about May 2013, EJT allegedly aided certain employees to receive housing benefits to which they were not entitled, by providing payroll information, including W-2s, which did not reflect the wages paid to these employees in cash. Additionally, during the same period, EJT provided certifications to the state agency administering the housing subsidy program, which falsely reported the income of certain employees to be only the amounts paid by check but which did not include the wages paid to these employees in cash. In this manner, EJT aided certain employees to obtain HUD housing subsidies to which they were not entitled.
According to the plea agreements also filed today, Tutunjian has agreed to pay $1,391,012 in restitution to the IRS for taxes, interest and penalties, and an additional $699,717 to employees in unpaid overtime wages. EJT has agreed to pay restitution of $219,307 to HUD for the fraudulent housing subsidies. Two of Tutunjian’s relatives, who also operate taxi companies, have agreed to pay $195,903 to the IRS in unpaid taxes for tax years 2009 through 2014. These relatives have not been charged.
In a related case, EJT dispatcher Girma Tilahun, 60, and his wife, Wudnesh Wolde, 53, of Cambridge, have agreed to plead guilty to immigration fraud and pay $234,987 in unpaid federal income taxes and $62,340 to HUD. Tilahun and Wolde allegedly arranged a sham marriage for one of Tilahun’s relatives to a U.S. citizen so that the relative could fraudulently gain legal status in the United States.
Another former EJT employee, Raffi Chapian, 44, of Waltham, has agreed to plead guilty to failing to pay income taxes from 2010 to 2014. Chapian has agreed to serve six months in prison and pay $72,335 in unpaid taxes.
The charge of tax evasion provides a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000, or twice the gross gain or loss. The charge of employment of unauthorized aliens provides for a sentence of no greater than six months in prison and a fine of $3,000 per alien. The charge of violating the Fair Labor Standards Act provides for a sentence of no greater than one year of probation and a fine of $10,000. The charge of aiding and abetting the theft of public money provides for a sentence of no greater than five years of probation and a fine of $500,000. The charge of immigration fraud provides for a sentence of no greater than five years in prison and a fine of $250,000. The charge of failing to pay income tax provides for a sentence of no greater than one year in prison and a fine of $100,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development; Office of Inspector General, Northeast Regional Office; Nikitas Splagounias, Assistant Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Boston Police Commissioner William Evans; and Cambridge Police Acting Commissioner Christopher Burke, made the announcement today. The Wage and Hour Division and the Employee Benefits Security Administration of the Department of Labor also assisted with the investigation. The case is being prosecuted by Assistant U.S. Attorneys Michael L. Tabak and Sandra S. Bower of Ortiz’s Criminal Division.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
North Carolina Couple Pleads Guilty to Bank Fraud and Tax Fraud Related to Their Online BusinessRead the Press Release
Defendants Failed to Report More Than $1 Million Earned from Sales Through eBay and Amazon
A Greensboro, North Carolina, couple, who operated an online sales business, pleaded guilty today to bank fraud and tax fraud charges announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney Ripley Rand of the Middle District of North Carolina.
Daniel Balson, 51, pleaded guilty to one count of filing a false tax return for 2010 and one count of making a false statement on a loan application. Renee Balson, 53, pleaded guilty to one count of making a false statement on a loan application.
According to court documents, Daniel Balson owned and operated Southern Sales Online (SSO), an online retail business that sold a variety of merchandise through eBay and Amazon, including scrapbooking and art materials, books, inspirational DVDs, pet supplies and tools. Daniel Balson admitted selling stolen merchandise through SSO. Although SSO earned over $1 million in gross receipts during tax years 2005 through 2011, the Balsons failed to report those gross receipts on their tax returns. The Balsons also failed to report the income from SSO on a bank application for a mortgage loan modification in 2011.
The sentencing hearing has been scheduled for Nov. 3. The Balsons each face a statutory maximum sentence of 30 years in prison for making a false statement on a loan application. Daniel Balson also faces a statutory maximum sentence of three years for filing a false tax return. The Balsons also face substantial monetary penalties and restitution.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rand commended special agents of the Internal Revenue Service Criminal Investigation, who investigated the case and Assistant Chief Todd A. Ellinwood and Trial Attorney Mara A. Strier of the Tax Division, who are prosecuting the case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office of the Middle District of North Carolina for their assistance.
North Carolina Couple Pleads Guilty to Bank Fraud and Tax Fraud Related to Their Online BusinessRead the Press Release
WASHINGTON - A Greensboro, North Carolina, couple, who operated an online sales business, pleaded guilty today to bank fraud and tax fraud charges announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney Ripley Rand of the Middle District of North Carolina.
Daniel Balson, 51, pleaded guilty to one count of filing a false tax return for 2010 and one count of making a false statement on a loan application. Renee Balson, 53, pleaded guilty to one count of making a false statement on a loan application.
According to court documents, Daniel Balson owned and operated Southern Sales Online (SSO), an online retail business that sold a variety of merchandise through eBay and Amazon, including scrapbooking and art materials, books, inspirational DVDs, pet supplies and tools. Daniel Balson admitted selling stolen merchandise through SSO. Although SSO earned over $1 million in gross receipts during tax years 2005 through 2011, the Balsons failed to report those gross receipts on their tax returns. The Balsons also failed to report the income from SSO on a bank application for a mortgage loan modification in 2011.
The sentencing hearing has been scheduled for Nov. 3. The Balsons each face a statutory maximum sentence of 30 years in prison for making a false statement on a loan application. Daniel Balson also faces a statutory maximum sentence of three years for filing a false tax return. The Balsons also face substantial monetary penalties and restitution.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rand commended special agents of the Internal Revenue Service Criminal Investigation, who investigated the case and Assistant Chief Todd A. Ellinwood and Trial Attorney Mara A. Strier of the Tax Division, who are prosecuting the case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office of the Middle District of North Carolina for their assistance.
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Newton Investment Adviser Sentenced for FraudRead the Press Release
BOSTON – A Newton investment adviser was sentenced today in U.S. District Court in Boston in connection with defrauding clients out of more than $1.4 million.
Paul J. Jackson, 59, of Wellesley, was sentenced by U.S. District Court Judge F. Dennis Saylor, IV to 33 months in prison, three years of supervised release and ordered to pay restitution. In October 2015, he pleaded guilty to investment adviser fraud and wire fraud.
Jackson owned and operated Paul J. Jackson & Associates, LLC in Newton, through which he managed retirement funds for clients. Beginning in 2010, Jackson started offering clients, close friends, and family members, what appeared to be attractive investment opportunities. The investments Jackson offered typically involved initial public offerings (IPOs) of high-profile companies, but Jackson did not invest the money as promised. Instead, he took more than $1.4 million dollars of investor money for his own use. For example, Jackson stole more than $500,000 from his brother-in-law, and over $400,000 from a close friend, based on a series of phony offers to invest in companies like Facebook, Twitter, and Alibaba. When investors requested their money back, Jackson lied repeatedly, offering false excuses and never telling them that he had simply taken their money. Jackson even used funds taken from a victim to make a partial repayment to another victim he defrauded.
The Massachusetts Securities Division previously filed a separate administrative action against Jackson, charging him with fraud and seeking to bar him from working in the securities industry.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The United States Attorney’s Office received valuable assistance from the Securities & Exchange Commission during the investigation of this matter. The case was prosecuted by Assistant U.S. Attorney Eric P. Christofferson of Ortiz’s Economic Crimes Unit.
Naperville Man Admits Lying to U.S. Immigration Officials About Past Membership in Chinese Communist PartyRead the Press Release
CHICAGO — A Naperville man admitted in federal court today that he willingly failed to disclose his prior membership in the Chinese Communist Party when seeking naturalized citizenship in the United States.
LU LIN, 59, pleaded guilty to one count of making a false statement to an immigration officer. The conviction is punishable by up to five years in prison and a fine of up to $250,000.
U.S. District Judge Edmond E. Chang scheduled a sentencing hearing for Nov. 9, 2016, at 10:00 a.m.
According to the plea agreement, Lin is a citizen of the People’s Republic of China who reported on his application for naturalized United States citizenship that he had never used other names and had never been a member of the Chinese Communist Party. Lin made the same assertions while under oath in an interview with officials in the Chicago office of the Department of Homeland Security’s U.S. Citizenship and Immigration Services, the plea agreement states.
In reality, Lin had been a member of the Chinese Communist Party from 1987 to 1997, and had received an identification document identifying him as “Yeung Yung.” Lin admitted in the plea agreement that he made the misrepresentations so he would be granted U.S. citizenship. He further acknowledged that his misrepresentations were material to the United States’ subsequent decision to grant him citizenship.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Department of Homeland Security’s U.S. Citizenship and Immigration Services assisted in the investigation.
Plea Agreement
Morgantown man charged with multiple oxycodone distribution chargesRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury returned an indictment charging Shawn Collins, 43, of Morgantown, West Virginia with distribution of oxycodone, United States Attorney William J. Ihlenfeld, II, announced.
In February through May of 2015, Collins was allegedly in possession with the intent to distribute oxycodone in Monongalia County, WV on three separate occasions.
Collins was charged with three counts of “Distribution of Oxycodone.” He faces up to twenty years in prison and a fine up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is handling the case on behalf of the government. The West Virginia State Police - BCI are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Monessen Man Charged with Federal Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH- A former resident of Westmoreland County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal drug and firearm laws, United States Attorney David J. Hickton announced today.
The three-count indictment named Laurenti James Robertson, 25.
According to the indictment, on Oct. 24, 2015, Robertson possessed a 9 mm caliber semi-automatic Kel-Tec pistol, Serial Number SEL07, and 9 mm caliber ammunition after having been convicted of multiple crimes punishable by more than one year in prison. Those cases include one robbery conviction and one theft by deception conviction. The indictment further alleges that on Oct. 24, 2015, Robertson possessed with intent to distribute heroin, a Schedule I controlled substance. On that same date, Robertson possessed the firearm in furtherance of that drug trafficking crime.
The law provides for a term of imprisonment of not less than five years and up to life, a fine of up to $1,000,000, and the forfeiture of the gun, ammunition, money, and electronics. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Ross E. Lenhardt is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Homestead Police Department conducted the investigation leading to the Indictment in this case.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Miramar Resident Convicted of Access Device Fraud and Aggravated Identity TheftRead the Press Release
A Miramar, Florida resident was convicted by a Southern District of Florida jury of access device fraud and aggravated identity theft following a two-day trial.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Miami Office (DOL-OIG), and William Hernandez, Chief, North Miami Beach Police Department, made the announcement.
Marletta Jasmine Knowles, 26, of Miramar, Florida, was convicted at trial of one count of use of one or more unauthorized access devices to obtain anything of value aggregating $1,000 or more, in violation of Title 18, United States Code, Section 1029(a)(2), and four counts of aggravated identity theft, in violation of Title 18 United States Code, Section 1028A(a)(1). She faces a statutory maximum penalty of 18 years in prison. Sentencing is scheduled for October 7, 2016 before U.S. District Judge Beth Bloom.
The evidence at trial established that between December 30, 2014 and February 21, 2015, Knowles used fraudulent debit cards to obtain $3,000 in money orders at Publix Super Markets in Miami-Dade County. These debit cards had been issued using the names, dates of birth, and social security numbers of two victims.
Mr. Ferrer commended the investigative efforts of the ICE-HSI, DOL-OIG and the North Miami Beach Police Department. The case was prosecuted by Assistant United States Attorneys Joshua S. Rothstein and Breezye Telfair.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Minnesota Man Sentenced for Possession with Intent to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Randolph J. Seiler announced that an Ellsworth, Minnesota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on August 1, 2016, by U.S. District Judge Roberto A. Lange.
Lugene Rayfeal Russell, age 47, was sentenced to 22 months in custody, 2 years of supervised release, $1,000 fine, a special assessment to the Federal Crime Victims Fund in the amount of $100, and forfeiture of a firearm, ammunition, and U.S. currency seized by law enforcement.
Russell was indicted by a federal grand jury on January 21, 2016. He pled guilty on May 9, 2016.
The conviction stemmed from an incident on November 16, 2015, when Bureau of Indian Affairs (BIA) Officers made contact with a vehicle in which Russell was a passenger, in Fort Thompson, South Dakota. At that time, Russell had in his possession 31 small individual baggies of marihuana, weighing a total of .31 ounces (8.8 grams), and a larger bag containing
marihuana weighing a total of .97 ounces (27.5 grams), which he intended to distribute to others. He also possessed a Beretta, model 950 BS, .25 caliber pistol, bearing serial number BR91469V, and ammunition. A comprehensive search of the vehicle on November 20, 2015, revealed $3,923 in U.S. currency bundled together in a compartment found behind the glove box.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force and the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Russell was immediately turned over to the custody of the U.S. Marshals Service.
Michigan Man Sentenced to 15 Years in Federal Prison for Child PornographyRead the Press Release
Fort Smith, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that David Henry, age 54, of Flint, Michigan, was sentenced to 180 months in federal prison and five (5) years of supervised release on each of two counts of Production of Child Pornography; the sentences are to run concurrently. The sentencing hearing took place before the Honorable Chief Judge P. K. Holmes, III in the United States District Court in Fort Smith.
According to the Plea Agreement, Henry began chatting online with a 14-year-old female who was living in Fort Smith in the fall of 2015. While using the Facebook Messenger application, Henry specifically instructed the victim to take pictures of herself in certain nude poses while engaging in sexually explicit conduct. He then convinced her to send these images to him while also sending her nude images of himself. When the victim expressed concern to Henry that her mother would find out about her sending him nude images, Henry mailed her a tablet so that they could continue their chats without detection. On November 5, 2015, the victim’s mother ultimately discovered these messages and images on the victim’s cell phone and reported it to law enforcement. Henry was interviewed by the Michigan State Police and admitted that he had been chatting online with the victim and that he believed her to be 15 years old. He was indicted by a federal grand jury on January 27, 2016, and pleaded guilty to the charges on March 10, 2016.
This case was investigated by the Fort Smith Police Department and the Michigan State Police. Assistant United States Attorney Ashleigh Buckley prosecuted the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and their Criminal Division Child Exploitation and Obscenity Sections (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Mexican National Sentenced for Receiving Child PornographyRead the Press Release
Angel Sauzo-Martinez, age 40, was sentenced in federal court in Omaha, Nebraska, for receiving child pornography. The Honorable Laurie Smith Camp, Chief Judge, sentenced Sauzo-Martinez, a Mexican National, to 72 months’ imprisonment. There is no parole in the federal penal system. After his release from prison, if not deported, Sauzo-Martinez must serve a 5-year term of supervised release and will be required to register as a sex offender.
An investigation by the Nebraska State Patrol identified Sauzo-Martinez as someone sharing child pornography through a file-sharing network. Ten videos of child pornography were downloaded from Sauzo-Martinez’s computer. On October 30, 2014, officers with the Nebraska State Patrol served a search warrant at Sauzo-Martinez’s home. Forty-nine videos of child pornography were recovered. The videos involved minors, mostly prepubescent, engaged in sexually explicit conduct with adults or other minors.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol.
Lee's Summit Woman Pleads Guilty to Stealing $5.3 Million from EmployerRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., woman pleaded guilty in federal court today to embezzling nearly $5.3 million from her employer.
Jane Barnes, 53, of Lee’s Summit, waived her right to a grand jury and pleaded guilty before U.S. District Judge Roseann Ketchmark to a federal information that charges her with wire fraud, bank fraud and aggravated identity theft.
Barnes began working for ACI Boland Architects, a prominent architecture company in Kansas City, Mo., in 1998 and worked as the office manager from 2008 until her resignation in March 2016. By pleading guilty today, Barnes admitted that she conducted two schemes to defraud and embezzle a total of at least $5,293,300 from ACI Boland.
In Barnes’ first fraud scheme, she used the payroll system to pay herself unauthorized amounts in excess of her approved salary/bonus. Barnes inflated her bi-weekly salary without the authorization of ACI Boland. Barnes admitted that she embezzled at least $1,622,078 in her first scheme, which lasted from at least 2006 until 2011.
In her second fraud scheme, Barnes created unauthorized payroll checks to herself, which did not reflect on her W-2 forms; thus federal income and other taxes were not deducted from her checks through this scheme. Barnes issued 359 unauthorized checks to herself directly from ACI Boland’s payroll account. Barnes signed the checks with the forged signature of one of the principals of ACI Boland and deposited them into her personal bank accounts. Barnes admitted that she embezzled a total of $3,671,222 from ACI Boland in her second scheme, which began in 2010 and lasted until her resignation in March 2016.
The investigation to date revealed Barnes’ spending of the embezzled funds, included, but were not limited, to:
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$1,969,210 in various credit card payments;
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$770,393 in transfers to relatives;
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$425,493 in entertainment, retail and travel;
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$424,945 in vehicle expenses, including car loan payments;
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$302,636 in cash and cash equivalents;
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$253,856 in home expenses, excluding mortgage payments;
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$124,412 in taxes
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$119,375 in insurance and medical expenses; and
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$107,683 in restaurant and food expenses.
By pleading guilty today, Barnes also agreed to forfeit to the government any property derived from the proceeds of her fraud, including $5,293,300, a 2014 Ford F150 Crew Cab Raptor 4WD, a 2014 Ford Explorer Utility 4D Sport 4WD and a 2013 Lincoln MKS.
Under federal statutes, Barnes is subject to a sentence of up to 20 years in federal prison without parole for wire fraud and up to 30 years in federal prison without parole for bank fraud, plus a mandatory consecutive sentence of two years in federal prison without parole for aggravated identity theft. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the FBI.
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Lackawanna Woman Sentenced for Distribution of Crack CocaineRead 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 Charisma Royster, 25, of Lackawanna, NY, who was convicted of possession with intent to distribute, and distribution of, crack cocaine, was sentenced to two years probation by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Edward H. White, who handled the case, stated that on September 15, 2014, the defendant sold a quantity of crack cocaine to a confidential informant working with officers of the Lackawanna Police Department. Subsequent analysis confirmed the presence of crack cocaine.
Royster is one of 18 defendants arrested in a drug trafficking operation that included sales made in and near the Gates Housing Project in Lackawanna. To date, six defendants have been convicted. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Adam S. Cohen, Special Agent in Charge.Kansas City, Kan., Man Sentenced to 12 Years on Carjacking, Firearm ChargesRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., man who shot his way out when a gas station clerk tried to lock him in the store was sentenced Tuesday to 12 years in federal prison, Acting U.S. Attorney Tom Beall said.
Nathaniel Germany, 27, Kansas City, Kan., pleaded guilty to one count of carjacking and one count of possessing a firearm in furtherance of a crime of violence. In his plea, Germany admitted that on Sept. 1, 2015, he pointed a gun at a driver parked at the BP Gas Station at 900 N. 5th Street in Kansas City, Kan. Germany took the driver’s car and fled.
On Sept. 7, 2015, a clerk at the BP Gas Station recognized Germany when he came into the store with another man. The clerk, who was behind bullet-resistant glass, used a button to lock the men in the store while he called police. Germany produced a .40 caliber handgun and fired two shots into a glass door in order to escape.
Three days later, Germany’s parole officer recognized him from surveillance photos and notified police, who arrested Germany.
Beall commended the Kansas City, Kan., Police Department, the Kansas Department of Corrections, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Terra Morehead for their work on the case.
Jeannette Man Charged with Heroin PossessionRead the Press Release
PITTSBURGH – A Westmoreland County resident has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal drug laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Anthony Wayne Canady, 43.
According to the indictment, on or about Dec. 15, 2015, Canady possessed with intent to distribute a quantity of heroin.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephen S. Gilson is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Westmoreland County Drug Task Force, the Westmoreland County District Attorney’s Office, the Greensburg Police Department, and the Pittsburgh Bureau of Police 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.
Israeli Man Charged with Operating FOREX Ponzi SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that FADI EWIESS, a/k/a “Fadi Awise,” was arrested Saturday morning on wire fraud charges stemming from his participation in a scheme to defraud investors through the operation of a purported foreign exchange (“forex”) trading company. EWIESS was charged with raising over $5.8 million by representing to investors that his company would trade foreign currencies on their behalf, that he would generate high rates of return in so doing, and that his investors’ capital would be guaranteed by third-party financial institutions. Instead of engaging in forex transactions with his investors’ money, however, EWIESS largely spent the money on personal expenses like gambling or making distributions to other investors. EWIESS was arrested Saturday morning in Fort Lauderdale, Florida.
U.S. Attorney Preet Bharara said: “As alleged, Fadi Ewiess lied to prospective investors about his company’s expertise in the foreign exchange markets and sent them forged ‘guarantees’ from New York banks to lure them into investing with him. Through his fraud scheme, Ewiess allegedly raised more than $5.8 million from victims around the globe, spending much of that money on his own gambling and personal expenses.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “As alleged, Ewiess ran a multimillion dollar ponzi scheme under the guise of a foreign exchange trading company. Instead of using investor money for foreign exchanges, Ewiess traveled and gambled the money away or paid investors to continue to invest in his scheme. Making sure our markets are fair to all investors and bringing charges against those who profit remains a top priority for the FBI.”
According to the Complaint unsealed today in Manhattan federal court[1]:
From 2015 through 2016, EWIESS operated a company (the “Company”) that purported to host an online foreign currency trading platform. Investors could either trade currencies themselves, or have the Company trade on their behalf. EWIESS represented that the Company had expertise in forex trading and could achieve outsized returns, and that investor funds being traded by the Company would be fully guaranteed against losses by a particular United States bank—assuming that the investor provided a sufficiently high amount of money. To substantiate this purported guarantee, moreover, EWIESS distributed forged documents that appeared to have been (but in actuality were not) issued by the relevant bank. EWIESS also employed other individuals in his scheme, promising large commissions, as well as prizes like watches and cellular telephones, to individuals who raised money for the scheme.
EWIESS and others raised more than $5.8 million during the course of the scheme, with much of this money coming from investors in Saudi Arabia and other countries. Instead of using investor proceeds to trade currencies, as the he and the Company had promised, however, EWIESS spent millions of his investors’ money on personal expenses like travel and hotels, on gambling trips, and on transfers to his family members. Other investor money was used to pay returns to investors so that they would invest or refer additional money to EWIESS and the Company, thereby allowing the scheme to continue for a longer period of time.
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EWIESS, 38, of Israel, is charged with one count of conspiring to commit wire fraud and one count of wire fraud. Each count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
The charges were brought 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.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Robert Allen is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
16-215 ###
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Individual Responsible for Telephone-Related Extortion Schemes to Appear Today in Federal CourtRead the Press Release
Earlier today, a complaint was unsealed charging Hani Kabbara, a Canadian citizen, with conspiracy to commit access device fraud. According to the complaint, the defendant was the mastermind of a sophisticated scheme that used overseas call centers to conduct telephone extortion scams to extract from victims financial products called MoneyPaks. These Moneypaks were then sold in online criminal forums or converted to cash by Kabbara using fraudulently-obtained prepaid debit cards. The defendant is scheduled to appear this afternoon before United States Magistrate Judge Steve M. Gold at the U.S. Courthouse in the Brooklyn New York.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI).
As alleged in the complaint, the defendant obtained hundreds of thousands of dollars in MoneyPaks from victims of his extortion schemes he ran from his overseas call centers. He demanded payment from his victims in the form of MoneyPaks, which are vouchers that can be loaded with funds and used to fund prepaid debit cards. The defendant sold the MoneyPaks in online criminal forums or, with his co-conspirators, transferred the funds onto prepaid debit cards, which themselves were obtained using stolen personally identifiable information. The defendant and his co-conspirators, who communicated with each other anonymously in cyberspace through dark web forums and encrypted chat applications, then used a crew of workers in and around the New York metropolitan area to withdraw funds from the debit cards, consolidate the cash, and send it back to the defendant in Canada.
The defendant was arrested in New York City on August 1, 2016.
“Cybercriminals terrorize innocent, often elderly, victims through the use of telephone extortion schemes and believe they can operate with impunity behind encrypted chats and online monikers,” stated United States Attorney Capers. “Today’s arrest sends the message that we are watching, we will find you, and we will bring you to justice.”
“As alleged, Kabbara was a mastermind of schemes. First, he used a call center to extort victims for hundreds of thousands of dollars using Moneypaks. Then he and his co-conspirators moved those funds to pre-paid debt cards, which were obtained using stolen personal information. The FBI is committed to investigating those who commit cybercrime and bringing them to justice, no matter where in the world they may reside,” stated FBI Assistant Director in Charge Rodriguez.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorney Una A. Dean is in charge of the prosecution.
The Defendant:
HANI KABBARA
Age: 31
Nationality: CanadianE.D.N.Y. Docket No. 16-M-691
Ilion Man Sentenced for Sexual Exploitation of His DaughterRead the Press Release
SYRACUSE, NEW YORK -- An Ilion, New York man who portrayed himself on social media as a teenage boy to sexually exploit his own daughter, was sentenced today to serve 20 years in prison for his crimes, announced United States Attorney Richard S. Hartunian.
In court papers and as part of his guilty plea, the defendant admitted that in 2013 he assumed the false identity of “Dan Smithson” and used social media to contact, befriend, and sexually exploit his then 14 year old daughter. As a part of the ruse, “Dan Smithson” became the child’s “boyfriend,” encouraged her to engage with him in sexually explicit chats, and when the child attempted to end the relationship, blackmailed her into taking and sending him sexually explicit images of herself – by threatening to reveal their explicit correspondence to her father, who was in reality sending her the messages himself.
The defendant previously pled guilty to all twelve counts of the federal superseding indictment, including charges of sexual exploitation of a minor; receipt, transportation and distribution of child pornography; and transferring obscene material to a minor younger than sixteen.
Earlier this year, in Herkimer County Court, the defendant was sentenced to imprisonment for six years for his actual physical sexual abuse of the daughter, which occurred after he concocted the fake “suicide” of “Smithson,” the fictitious online boyfriend.
While he was sexually abusing his daughter, the defendant also continued to harass her with anonymous electronic communications sending the sexually explicit images and graphically describing his sexual desires and intentions for her.
United States Attorney Richard S. Hartunian said: “The defendant’s grotesque manipulation of his own daughter is shocking even to those of us who have seen depravity in its rawest form in prior cases. His incestuous crimes were deviously planned and ruthlessly executed. The outstanding work of local police and the FBI in bringing this predator to justice reflects our resolve to use all the resources of the law to protect our children.”
“The defendant used the anonymity of the internet to target and victimize his own daughter,” said Special Agent in Charge Andrew W. Vale. “He has betrayed every law of human decency. His actions are as appalling as they are unimaginable. Predators like him are on notice, their horrific crimes will not remain hidden. The FBI, together with our law enforcement partners, will bring them to justice.”
In addition to imprisonment, the sentence imposed by United States District Judge Brenda K. Sannes included a lifetime term of supervised release and required registration as a sex offender.
The case was investigated by the Ilion Police Department, the Herkimer County District Attorney’s Office, and the Federal Bureau of Investigation, and prosecuted by Assistant U.S. Attorney Lisa M. Fletcher, as a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Houston man sentenced to 87 months in prison for cocaine chargeRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced that a Texas man was sentenced last week to 87 months in prison for possessing cocaine for later sale.
David Matthews, 54, of Houston, Texas, was sentenced Thursday by U.S. District Judge Patricia Minladi on one count of possession with intent to distribute cocaine. He was also sentenced to five years of supervised release. According to the guilty plea, a Calcasieu Parish Sheriff’s officer stopped Matthews’ vehicle on March 20, 2012 for a traffic violation. After a search of the vehicle, the officer found 2 kilograms of powder cocaine and 118 pounds of marijuana in three large trash bags in the vehicle’s extended cab.
Homeland Security Investigations and the Calcasieu Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Jamilla A. Bynog and John Luke Walker prosecuted the case.
Honduran Man Sentenced for Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KEVIN CALIX-TORRES, age 26, a native of Honduras, was sentenced today after previously pleading guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Court Judge Jay C. Zainey sentenced CALIX to time served, followed by one year of supervised release, and a $100 special assessment fee. CALIX will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on July 7, 2016, CALIX was found in the United States after having been previously deported from the United States on June 2, 2008.
U.S. Attorney Polite praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Heroin Trafficker Convicted at Trial, Faces Life in Federal PrisonRead the Press Release
Contact Person: Sean Kittrell (843) 727-4381
Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Kenneth Kennedy Shannon, 51 years old, from Vance, South Carolina, who was a defendant charged in a conspiracy involving more than a kilogram of heroin, has been convicted after a trial in federal court in Charleston. Acting United States Attorney Drake noted that the indictment was the result of the work of the Charleston Drug Enforcement Task Force, which is comprised of federal agents and task force officers from local Charleston area agencies. She said that there is an effort underway to address heroin trafficking in the Charleston community. Ms. Drake advised that Assistant United States Attorney Sean Kittrell and Assistant United States Attorney Matt Austin of the Charleston office coordinated the investigation and prosecuted the case.
Evidence presented during the trial showed that the investigation began after a series of overdoses affected the Charleston community. Over time, Shannon was identified as a major source of supply effort. Assistant United States Matt Austin said that Shannon was intercepted on a wiretap and investigators learned that he was bringing a load of heroin down by train from New York on February 27, 2014. He got off the train in Kingstree, South Carolina, and went to his stash house in Vance, South Carolina. The next day, Shannon, essentially a wholesaler, drove to meet with one of his retail distributors. The DEA Task Force, working with the North Charleston Police Department, made a traffic stop on the in which he was riding Tahoe. Shannon, the passenger, was being driven by a close relative who had his 8 month old grandchild in a car seat in the back of the SUV. After the driver got out of the vehicle to speak with police, Shannon jumped over the console into the driver’s seat. He took off and led police on a high speed chase. That chase was called off as soon as police realized that there was a child in the car. While Shannon was fleeing from police, a citizen saw the driver of the Chevrolet Tahoe throw a baseball sized bag out of the window near Tony Way and flagged down an alert North Charleston police officer involved in the chase. Assistant United States Sean Kittrell said that although the bag was run over by another vehicle, the officer was able to recover approximately two (2) grams of heroin (or enough for about 67 bags or doses of heroin, according to Kittrell). Shannon also threw another package out on the ramp at Montague Avenue which was later recovered by DEA agents. The box held 500 bags containing, altogether, 9 grams of heroin (or enough for about 300 bags or doses of heroin, according to Kittrell). The bags were light blue. Testimony revealed that this was a marketing tool and that the blue heroin was regarded as a great product.
The task force learned where Shannon was and arrested him in the Tahoe later that same afternoon. It had residue powder on the driver’s side door. Agents concluded that the residue came from throwing the baseball sized bag of heroin out of the SUV. Because the baby was not in the car, the task force immediately began to attempt to ascertain the child’s location. Once they learned the baby was safe, agents executed a search warrant for Shannon’s stash house in Vance, South Carolina. Inside, agents recovered approximately 130 grams of heroin (enough for about 4,334 bags or doses of heroin, according to Kittrell), a Krupp’s coffee grinder with heroin residue along with two metal strainers, a digital scale, and a glass pestle (all used to chop up compressed blocks of heroin ); twelve small cardboard brown boxes, each holding about 600 unused individual "bindle" bags (all packaging for individual drug sales); a green grocery bag with many more "bindle" bags; two digital scales; a traffic citation issued to Kenneth Kennedy Shannon; and seven bars of Mannite "Cicogna" which is used as a cutting agent by heroin traffickers to increase the weight of drugs to create more product.
Testimony during the trial established that Shannon was the head of a distribution chain which distributed an excess of a kilogram of heroin from 2012 till his arrest on February 28, 2012. That is the equivalent of over 33,000 bags or doses of heroin, with a street value of well over $600,000.00 according to Kittrell. Under federal sentencing laws, he faces a sentence of life in federal prison without parole. Kittrell said that there was an unusually dramatic moment during the trial, when Shannon jumped up and started screaming at the court and the jury. He had to be subdued by deputy United States Marshals and removed from the courtroom.
Chief Greg Mullen of the City of Charleston Police Department said that the partnership between the federal agencies and local police, which led to the conviction, is truly effective. “This trial is an example of how law enforcement teamwork can effectively combat the sources of supply of heroin which have been plaguing our community. Here, the City of Charleston Police Department, the North Charleston Police Department, the Federal Drug Enforcement Administration, all of us, worked closely together to identify, investigate and prosecute a major heroin dealer. Heroin is on the rise, and it needs to come off of the street. It is reaching all aspects of community, in all our neighborhoods. Only by working together with strong inter-agency partnerships will we be able to fight this. Shannon faces a life sentence, and sentences like that greatly impact dealers who decide whether to stay in business."
Jason Sandoval, Resident Agent in Charge of the local DEA office commented, “The Charleston community is not immune to the heroin problem devastating communities across the country. Shannon's secretive, insular, and evasive methods enabled him to remain a significant heroin source of supply for far too long. The guilty verdict against Shannon on all counts sent a clear message that enough is enough. The successful conclusion of this investigation was made possible by the unyielding efforts of a law enforcement coalition of local agencies, DEA, and the US Attorney’s Office dedicated to protecting our community. This success speaks to the effectiveness we can realize when we work together as a coalition of concerned citizens, police, and prosecutors. The DEA task force is dedicated to being a full partner of local and federal agencies, citizen advocacy groups, and all others who wish to stem the scourge of heroin in our community.”
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Hartford Man Involved in 2010 Murder Sentenced to More Than 17 Years in PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that KERONN MILLER, also known as “Fresh,” 25, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 210 months of imprisonment, followed by five years of supervised release, for aiding and abetting the 2010 murder of Ian Francis.
On December 21, 2010, Ian Francis was shot multiple times while sitting in his vehicle on Sigourney Street in Hartford. Francis succumbed to his injuries on January 15, 2011.
On December 4, 2014, MILLER pleaded guilty to one count of aiding and abetting witness tampering by committing second degree murder. In pleading guilty, he admitted that he lured Francis to Sigourney Street where Dominique Mack was waiting to shoot and kill Francis.
On April 27, 2016, Mack was convicted by a federal jury for conspiring with MILLER and others to murder Francis to prevent Francis from providing information to law enforcement about Mack’s whereabouts. Mack was being sought by the FBI following his indictment on federal narcotics charges when Francis was murdered.
Mack is scheduled to be sentenced on September 1, 2016, when he will face a mandatory term of life imprisonment.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes and Gang Task Force and the Hartford Police Department’s Major Crimes Division. The case is being prosecuted by Assistant U.S. Attorneys Brian Leaming and Jennifer Laraia.
Harrison County man pleads guilty to unlawful possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – David Keith Stover, Jr., 37, of Stonewood, West Virginia, pled guilty to unlawfully possessing a firearm in federal court today, United States Attorney William J. Ihlenfeld, II, announced.
Stover, who had previously been convicted of a felony offense of Nighttime Burglary in Harrison County, WV, was discovered in possession of three rifles in May 2015. He pled guilty to one count of “Felon in Possession of a Firearm.”
He faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Stonewood Police Department investigated.
U.S. District Judge Irene M. Keeley presided.
Great American Tower Shooter Pleads Guilty to Federal Gun ChargeRead the Press Release
CINCINNATI – Rayshaun L. Herald, 23, of Cincinnati, pleaded guilty in U.S. District Court to possessing a firearm after having been convicted of a felony offense.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Brad Earman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Cincinnati Police Chief Eliot Isaac announced the plea entered into before U.S. District Judge Susan J. Dlott.
Herald was indicted by a federal grand jury on March 16 of one count of possession of a firearm by a convicted felon. Specifically, he possessed a loaded 9mm after having been convicted for trafficking in cocaine and having weapons while under disability.
Investigators linked Herald to shootings in Walnut Hills in May 2015 and The Great American Tower at Queen City Square in January 2015 through the use of a national database called the National Integrated Ballistic Information Network (NIBIN).
Possession of a firearm by a prohibited person carries a potential maximum sentence of 10 years in prison.
Acting U.S. Attorney Glassman commended the investigation of this case by the ATF and Cincinnati Police and assistance of the U.S. Marshals Service Southern Ohio Fugitive Apprehension Strike Team, as well as Criminal Chief Kenneth L. Parker, who is representing the United States in this case.
Gloucester County, New Jersey, Woman Admits Role in $600,000 Embezzlement and Money Laundering SchemeRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, woman today admitted embezzling more than $600,000 from dormant TD Bank customer accounts, U.S. Attorney Paul J. Fishman announced.
Telisha Trent, 43, of Williamstown, New Jersey, pleaded guilty before U.S. District Judge Renee Marie Bumb in Camden federal court to an information charging her with one count of bank fraud and one count of money laundering.
According to documents filed in this case and statements made in court:
From Aug. 9, 2014, through Sept. 11, 2015, Trent used her position as a financial services representative and bank teller at a TD Bank branch in Sewell, New Jersey, to identify dormant checking and savings accounts, primarily held by elderly TD Bank customers. Trent would research the account holder in order to assess the risk of whether the account holder would notice that the funds in the account were removed. She would steal the money in the dormant account by transferring the funds to accounts she controlled or have a cashier’s check issued in her name.
Trent then transferred the funds through a series of accounts that she controlled in order to hide her fraud. Also, in order to avoid detection, Trent closed the dormant accounts. Trent admitted obtaining $608,000 in cash from eight TD Bank customers in New Jersey, Connecticut, and Ohio. She admitted to spending the money on home renovations, lavish trips, two luxury BMW sedans, items for her children, and other items.
After the fraud was discovered, TD Bank reimbursed the victims for the money and funds stolen by Trent.
The count of bank fraud carries a maximum potential penalty of 30 years in prison and a $1 million fine; the count of money laundering carries a maximum potential penalty of 10 years in prison and $250,000 fine. Sentencing is scheduled for Nov. 7, 2016.
U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge William F. Sweeney Jr. in Philadelphia, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office in Camden.
Defense counsel: James Conley Esq., Haddon Heights, New Jersey
Georgia Trader Pleads Guilty to Largest Known Computer Hacking and Trading SchemeRead the Press Release
Earlier today, Leonid Momotok, of Suwanee, Georgia, pleaded guilty to conspiracy to commit wire fraud for his role in an international scheme to hack into three business newswires and steal yet-to-be published press releases containing non-public financial information that was then used to make trades that generated approximately $30 million in illegal profits. The guilty plea was entered before United States Magistrate Judge Ramon E. Reyes, Jr. at the federal courthouse in Brooklyn, New York. When sentenced, Momotok faces up to 20 years in prison, as well as restitution, criminal forfeiture, and a fine.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
“Using non-public press releases stolen by overseas hackers, Momotok and his group of traders engaged in a brazen scheme that was unprecedented in its scope, impact and sophistication,” stated United States Attorney Capers. “Today’s guilty plea demonstrates our steadfast commitment and preparedness to combating the ever-evolving threat of cybercrime and to protecting the integrity of our financial markets.” Mr. Capers thanked the Securities and Exchange Commission (SEC) and the Department of Justice’s Office of International Affairs (OIA) for their cooperation and assistance in the investigation.
“In one of the most sophisticated insider trading cases we’ve seen to-date, Momotok and other traders used information to trade on from not yet released press releases obtained by hackers from newswire services. The scheme profited the traders approximately $30 million in ill-gotten profits. Today’s guilty plea should send a message to others who seek to cheat the system for a lucrative payday- these schemes only end with prison time and forfeiture of those profits,” stated Assistant Director-in-Charge Rodriguez.
According to court filings and facts presented at the plea hearing, between February 2010 and August 2015, computer hackers based in Ukraine gained unauthorized access into the computer networks of Marketwired L.P., PR Newswire Association LLC (PRN), and Business Wire (collectively, the “Newswire Companies”). The hackers used a series of sophisticated cyber-attacks to gain access to the Newswire Companies’ computer networks. Once in the computer networks, the hackers stole press releases about upcoming announcements by public companies concerning earnings, gross margins, revenues, and other confidential and material financial information. At one point, one of the hackers sent an online chat message in Russian to another individual stating, “I’m hacking prnewswire.com.” In another online chat, the hackers stated that they had compromised the log-in credentials of 15 Business Wire employees.
To capitalize on this stolen information, the hackers shared the stolen press releases with Momotok and other traders through overseas servers. In a series of emails, the hackers provided the traders with credentials and instructions on how to access and use the overseas servers. To assist the hackers steal the most valuable information, the traders created “shopping lists” or “wish lists” for the hackers listing desired upcoming press releases from Marketwired and PRN for publicly traded companies. Once Momotok and the other traders received the stolen press releases, they used that information to execute trades ahead of the issuance of the press release. In order to execute trades before the press releases were made public, Momotok and the other traders sometimes had to execute trades in extremely short windows of time. Frequently, all of this illegal trading activity occurred on the same day. Momotok and the other traders traded on stolen press releases containing material nonpublic information about publicly traded companies that included, among hundreds of others: Align Technology Inc.; Caterpillar Inc.; Hewlett Packard; Home Depot; Panera Bread Co.; and Verisign Inc.
Momotok and his co-conspirators’ gained more than $30 million from their illegal trades. In exchange for providing Momotok and the other traders with the stolen press releases, the hackers received a percentage of the illegal proceeds, which were transferred to them through foreign shell companies.
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The government’s case is being prosecuted by the Office’s Business and Securities Fraud and National Security and Cybercrime Sections. Assistant United States Attorneys Christopher A. Ott, Christopher L. Nasson and Richard M. Tucker are in charge of the prosecution, with assistance provided by Assistant United States Attorneys Brian D. Morris and Tanisha Payne of the Office’s Civil Division, which is responsible for the forfeiture of assets.
The charges were brought 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 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 on the task force, please visit ww.StopFraud.gov.
The Defendant:
LEONID MOMOTOK
Age: 48
Residence: Suwanee, GeorgiaE.D.N.Y. Docket No. 15-CR-381 (RJD)
Georgia Tax Return Preparer Pleads Guilty to Refund FraudRead the Press Release
An Atlanta, Georgia, based tax return preparer pleaded guilty today to one count of wire fraud, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney John A. Horn for the Northern District of Georgia.
According to court documents, Cheryl Singleton, 29, owned and operated Advanced Tax Services, a tax preparation business with multiple locations throughout the Atlanta area. From 2012 through 2015, Singleton and her employees filed false tax returns that fraudulently inflated clients’ refunds. In addition, Singleton and her employees falsely advised individuals that they could qualify for a $1,000 government stimulus payment. Singleton and others used these individuals’ personal identification information to electronically file false income tax returns in those individuals’ names, without their knowledge or consent. Court documents further allege that Singleton used healthcare financing credit cards held in the names of other individuals to fraudulently obtain payment for cosmetic dental care services.
Sentencing is scheduled for Oct. 12. Singleton faces a statutory maximum sentence of 20 years in prison, a term of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Horn commended special agents of the Internal Revenue Service Criminal Investigation, who investigated the case and Trial Attorney Melanie Smith of the Tax Division and Assistant U.S. Attorney Samir Kaushal of the Northern District of Georgia, who are prosecuting this case.
Georgia Man who Entered Beaver County Theater with Gun and Ammo Charged with Violating Federal Firearms LawsRead the Press Release
PITTSBURGH – A Georgia man who carried a gun and ammunition into a Beaver County movie theater on July 23 has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
The one-count indictment named William D. Gossett, 21, as the sole defendant.
According to the indictment, on July 23, 2016, William D. Gossett, a convicted felon, was in possession of a Phoenix Arms .25 caliber semi-automatic handgun and a box of .25 caliber ammunition. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
“This case is a direct result of community vigilance,” said U.S. Attorney Hickton. “Center Township Police acted promptly and arrested William Gossett without incident. Federal agents continue to investigate Gossett’s intentions for entering the Cinemark Theater on July 23rd carrying a gun and ammunition.”
The law provides for a maximum total sentence of not more than 10 years 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 offense and the prior criminal history of the defendant.
Assistant United States Attorney Barbara K. Doolittle is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Center Township 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.
Former Whitman Police Sergeant Charged with Embezzling Funds from Disabled VeteransRead the Press Release
BOSTON – A former Whitman Police Sergeant was arrested today and charged in connetion with misappropriating funds from the accounts of disabled veterans while he was a U.S. Department of Veterans Affairs-appointed fiduciary and for preparing false income tax returns for clients of his tax preparation business.
Glenn P. Pearson, 60, was arrested today and charged in an indictment unsealed today with wire fraud, misappropriation by a federal fiduciary, making false statements, and preparing fraudulent tax returns. Pearson was arrested today and released on conditions following an arraignment in U.S. District Court in Boston.
According to the indictment, from 2007 to 2012, Pearson was a U.S. Department of Veterans Affairs-appointed fiduciary for eight disabled veterans of the armed forces. Pearson allegedly took advantage of his position to misappropriate and embezzle VA-issued benefit money out of the accounts of several veterans for whom he served as fiduciary. Pearson allegedly used the money to, among other things, pay down the mortgage on his house.
Beginning in 2012, Pearson operated a tax preparation business called FTS Tax Services. From 2012 through 2016, Pearson allegedly prepared numerous returns that included false credits and fictitious deductions in an effort to get his clients larger refunds than they actually were owed. In addition, the indictment alleges that Pearson filed false personal income tax returns for himself from 2010 through 2014, and took steps to obstruct the IRS, such as by preparing false documents for his clients to submit to the IRS during audits.
The charge of wire fraud provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charges of misappropriation of funds by a fiduciary and making false statements provide a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of preparing fraudulent tax returns provides a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000. The charge of attempting to interfere with the administration of internal revenue laws provides a sentence of no greater than three years in prison, one year of supervised release and a 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; Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division Caroline D. Ciraolo; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Jeffrey Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Vassili Thomadakis of Ortiz’s Criminal Division and Karen E. Kelly, Assistant Chief of the Department of Justice’s Tax Division.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Army Private Sentenced for Stealing Fellow Soldiers’ IdentitiesRead the Press Release
TOPEKA, KAN. – A former private in the U.S. Army who was stationed at Fort Riley pleaded guilty and was sentenced Tuesday to two years in federal prison for stealing his fellow soldiers’ identities, Acting U.S. Attorney Tom Beall said today. In addition, he was ordered to pay more than $23,400 in restitution.
Todd M. Newbrough, 24, pleaded guilty to one count of aggravated identity theft. In his plea, he admitted he used his position with the Army to access personal identifying information about fellow soldiers in his unit at Fort Riley. The records he accessed included Leave and Earnings Statements, Enlisted Record Briefs and Alpha Rosters. They contained personal information including names, Social Security numbers, dates of birth and places of birth. Newbrough used the information to obtain credit cards and lines of credit in the names of the soldiers.
Beall commended the Defense Criminal Investigative Service, the United States Army Criminal Investigation Command, Computer Crime
Investigative Unit (CCIU), the Riley County Police Department and Special Assistant U.S. Attorney Robin Graham for their work on the case.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Nancy Wicker (803) 929-3000
Columbia, South Carolina ----- Acting United States Attorney Beth Drake stated today that a Federal Grand Jury, returned Indictments against the following:
Seven People Charged in $350 Million Government Construction Fraud Scheme
Thomas Brock, age 49 of Camden, Jerry Eddins, age 66 of Aspermont, Texas, Harry Michael White, age 65 of Columbia, Cory J. Adams, age 43 of Columbia, Tory Brock, age 51 of Camden, Alfonza McCutchen Jr., age 39 of Irmo and Allison Amanda Sauls, 46, of New York, New York were charged in an eighteen count Indictment with various frauds related to the award of nearly $350 million dollars’ worth of federal government construction contracts. According to an Indictment filed in federal court, the scheme took advantage of construction contracts administered through the Department of Veterans Affairs and the Small Business Administration. These construction contracts were earmarked to be given to minority-owned, woman-owned, veteran-owned and disabled person-owned construction companies. However, the Indictment alleges that the defendants hid the fact that construction companies were not controlled by minorities, veterans, women or the disabled in order to receive the lucrative contracts.
Thomas Brock, Jerry Eddins, Harry Michael White, Cory Adams, Tory Brock and Alfonza McCutchen were charged with conspiracy to defraud the government in violation of Title 18, United States Code Section 371. The maximum penalty for conspiracy is a fine of $250,000 and imprisonment for 5 years. Thomas Brock, Jerry Eddins, Harry Michael White and Amanda Sauls were also charged with wire fraud in violation of Title 18, United States Code Section 1343. The maximum penalty the defendants could receive for wire fraud is 20 years imprisonment and a fine of $250,000. Two companies, Automatic Cash L.L.C. and EEC L.L.C. were also charged with major fraud against the United States in violation of Title 18, United States Code Section 1031. The maximum penalty the companies could receive for that charge is a fine of $10,000,000.
The case was investigated by agents of the Defense Criminal Investigative Service, Small Business Administration-Office of Inspector General (OIG), United States Department of Agriculture-OIG, Department of Energy-OIG, United States Army Criminal Investigation Division, Air Force Office of Special Investigations, Defense Contract Audit Agency, and Veterans Affairs OIG and is assigned to Assistant United States Attorney T. DeWayne Pearson of the Columbia office for prosecution.
The Acting United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Eagle Butte Woman Charged with Distribution of MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman has been indicted by a federal grand jury for Distribution of a Controlled Substance.
Duciana Eagle Chasing, a/k/a Duciana Ranay Comes Flying, age 40, was indicted on July 19, 2016. She appeared before U.S. Magistrate Judge Mark A. Moreno on August 1, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, at least 3 years and up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on three different days in May of 2016, Eagle Chasing knowingly and intentionally distributed methamphetamine, a Scheduled II controlled substance, in South Dakota.
The charges are merely accusations and Eagle Chasing is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services Narcotics Division. Assistant U.S. Attorney SaraBeth Donovan is prosecuting the case.
Eagle Chasing was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
EOIR Swears in Five Immigration JudgesRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced the investiture of five new immigration judges. Acting Chief Immigration Judge Michael C. McGoings presided over the investiture during a ceremony held July 29, 2016, in the ceremonial courtroom of the E. Barrett Prettyman U.S. Courthouse in Washington, D.C.
After a thorough application process, Attorney General Loretta E. Lynch appointed Elisa Castrolugo, Samuel B. Cole, Kathryn L. DeAngelis, Lisa Ann J. de Cardona and Eva S. Saltzman to their new positions.
“We are pleased to welcome these five appointees to the immigration judge corps,” said McGoings. “Their arrival brings our immigration judge corps to an all-time high of 277 immigration judges and is another step forward in our efforts to begin reducing our pending caseload of more than 500,000.”
Biographical information follows.
Elisa Castrolugo, Immigration Judge, Houston Immigration Court
Attorney General Loretta E. Lynch appointed Elisa Castrolugo to begin hearing cases in August 2016. Judge Castrolugo earned a Bachelor of Arts degree in 1999 from the University of Texas at Austin and a Juris Doctor in 2003 from the Columbia University School of Law. From 2010 to July 2016, she served as an assistant U.S. attorney for the Southern District of Florida, U.S. Attorney’s Office, Department of Justice (DOJ). From 2005 through 2010, she served as an assistant U.S. attorney for the Western District of Michigan, U.S. Attorney’s Office, DOJ, entering on duty through the Attorney General’s Honors Program. From 2003 through 2005, she served as a law clerk for the Honorable Andrew W. Austin, U.S. District Court, Western District of Texas. From 1995 through 1999, she served as a staff sergeant for the 147th Medical Squadron, Texas Air National Guard. From 1991 through 1995, she served as a senior airman for the 963rd Airborne Air Control Squadron, U.S. Air Force. Judge Castrolugo is a member of the State Bar of Texas.
Samuel B. Cole, Immigration Judge, Chicago Immigration Court
Attorney General Loretta E. Lynch appointed Samuel B. Cole to begin hearing cases in August 2016. Judge Cole earned a Bachelor of Arts degree in 1995 from Rice University and a Juris Doctor in 1998 from the Harvard Law School. From 2003 to July 2016, he served as an assistant U.S. attorney, U.S. Attorney’s Office, Department of Justice, in Chicago. From 1999 through 2003, he served as an associate attorney for McDermott, Will & Emery, in Chicago. Judge Cole is a member of the Illinois State Bar.
Kathryn L. DeAngelis, Immigration Judge, Chicago Immigration Court
Attorney General Loretta E. Lynch appointed Kathryn L. DeAngelis to begin hearing cases in August 2016. Judge DeAngelis earned a Bachelor of Science degree in 1997 from Southampton College, a Master of Science degree in 2000 from the University of Hawaii, and a Juris Doctor in 2005 from the University of Arizona. From 2006 to July 2016, she served as a trial attorney for the Office of Immigration Litigation, Civil Division, Department of Justice. Judge DeAngelis is a member of the State Bar of California.
Lisa Ann J. de Cardona, Immigration Judge, Philadelphia Immigration Court
Attorney General Loretta E. Lynch appointed Lisa Ann J. de Cardona to begin hearing cases in August 2016. Judge de Cardona earned a Bachelor of Arts degree in 1986 from St. Joseph’s University and a Juris Doctor in 1990 from the Widener University School of Law. From 2013 to May 2016, she served as associate program director for the Office of Legal Access Programs, Executive Office for Immigration Review (EOIR), Department of Justice (DOJ). From 2012 through 2013, and previously from 2002 through 2007 and 1991 through 1998, she served as an attorney advisor for the Board of Immigration Appeals (BIA), EOIR, DOJ. From 2007 through 2011, she served as a supervisory attorney advisor for the BIA. From 1990 through 1991, she served as a law clerk for the Office of the Chief Administrative Hearing Officer, EOIR, DOJ, entering on duty through the Attorney General’s Honors Program. Judge de Cardona is a member of the New Jersey State and Pennsylvania Bars.
Eva S. Saltzman, Immigration Judge, Newark Immigration Court
Attorney General Loretta E. Lynch appointed Eva S. Saltzman to begin hearing cases in August 2016. Judge Saltzman earned a Bachelor of Arts degree in 1999 from the University of Wisconsin and a Juris Doctor in 2002 from the Benjamin N. Cardozo School of Law. From 2006 to July 2016, she served as a supervisory staff attorney for the Staff Attorney’s Office, U.S. Court of Appeals for the Second Circuit, in New York. From 2005 through 2006, she served as an associate attorney for Wildes, Weinberg, Grunblatt & Wildes PC, in New York. From 2002 through 2005, she served as an associate attorney for Avirom & Associates LLP, in New York. Judge Saltzman is a member of the Connecticut, District of Columbia, and New York State Bars.
Del City Man Sentenced to Serve 327 Months in Prison for Producing Child PornographyRead the Press Release
Oklahoma City, Oklahoma – Today, DONNIE RAY SCHULTZ, 45, of Del City, Oklahoma, was sentenced to serve 327 months in federal prison for producing child pornography depicting of a 15-year-old girl with whom he engaged in sexually explicit conduct, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma.
According to court records, in July 2014, Schultz began engaging in sex acts with the then 14-year-old girl, whom he met through a religion class he taught at a Del City church. According to those records, the sex acts occurred between July 2014 and November 2015, and took place in various locations in the Oklahoma City metroplex, including the church’s parking lot, the child victim’s house, and Schultz’s own house. According to court records, Shultz produced over 173 images of sexual acts involving the child with his iPhone.
Schultz was indicted by a federal grand jury on February 16, 2016. During the plea hearing on April 26, 2016, before United States District Judge Robin Cauthron, Schultz admitted that on September 26, 2014, he engaged in sexually explicit conduct with the victim and took photographs with his iPhone.
Schultz faced a higher mandatory-minimum sentence due to his prior Cleveland County conviction for second degree rape, which also involved a 14-year-old girl. In addition to sentencing him today to 327 months in prison, Judge Cauthron also ordered Schultz to pay $4,266.13 in victim restitution.
This case is the result of an collaborative investigation by the Del City Police Department, Homeland Security Investigations and the United States Secret Service Electronic Crimes Task Force. The case was prosecuted by Assistant U.S. Attorney Brandon Hale.
Convenience Store Owner Sentenced in Conspiracy to Distribute SpiceRead 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 Adel Abdullah, 32, of Lackawanna, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, controlled substance analogues, was sentenced to 12 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorneys Thomas S. Duszkiewicz and Wei Xiang, who handled the case, stated that the conspiracy involved the sale of synthetic cannabinoids, also known as “spice,” at the Speedy Market, a convenience store at 1799 Genesee Street in Buffalo in 2011 and 2012. Abdullah owned and operated the store. The defendant regularly ordered shipments of the spice from sources across the country. Abdullah and his clerks then sold the spice as potpourri not for human consumption, yet gave customers complimentary cigars as rolling paper to smoke the spice.
By 2012, spice and the myriad chemicals used to approximate its marijuana effect were becoming a major public health hazard. In April 2012, an Erie County health inspector served an order on Abdullah’s store from the New York State Department of Health banning the sale of spice. Yet in May 2012, the store still sold spice and agents still found stockpiles of synthetic cannabinoids and packaging material at the store and at Abdullah’s home. Agents also recovered a package containing 2400 vials of synthetic cannabinoids, invoiced by a New Mexico supplier on May 15, 2012. According to invoices and other records in the case, some of what was being sold at Abdullah’s store for $10 per vial or packet only cost him $2.50.
The sentencing is the culmination of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office and the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast.
Colombian National Charged for Unlawfully Injecting Silicone into Victims’ BodiesRead the Press Release
A Colombian national was charged criminally for unlawfully injecting silicone into victims’ bodies for aesthetic enhancements, without a medical license or approval by the U.S. Food and Drug Administration.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Robert J. West, Special Agent in Charge, U.S. Food & Drug Administration, Office of Criminal Investigations (FDA-OCI), Miami Field Office, made the announcement.
Juan David Acosta, 44, of Hallendale Beach, is charged by criminal information with two counts of receipt in interstate commerce of a misbranded device and delivery for pay with intent to defraud or mislead, in violation of Title 21, United States Code, Sections 331(c) and 333(a)(2). If convicted, Acosta faces a maximum statutory sentence of three years in prison as to each count.
According to the information, Acosta engaged in the business of administering injections of polydimethylsiloxane, commonly referred to as silicone, into the bodies of other individuals. Acosta was paid thousands of dollars for this service. Specifically, on July 29, 2015 and again on August 9, 2015, Acosta, at his residence in the Southern District of Florida, injected silicone into the buttocks of two victims in order to affect the size, contour, and structure of that portion of the human body for aesthetic purposes. The injection of silicone into the human body in this manner, regardless of whether such injection was dispensed and administered by a licensed practitioner, requires an FDA-approved application. Acosta did not advise the victims that silicone was being injected into their bodies. Acosta is not a licensed medical practitioner and he had not received FDA approval to administer the injections.
Mr. Ferrer commended the investigative efforts of the FDA-OCI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Palm Beach County Sherriff’s Office Narcotics Unit. The case is being prosecuted by Assistant United States Attorney Randy Katz.
An information is merely an allegation and every 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.
Cibola County Man Pleads Guilty to Federal Bank Robbery ChargeRead the Press Release
ALBUQUERQUE – Daniel Albert Chavez, 53, of Acoma, N.M., pled guilty today in federal court in Albuquerque, N.M., to robbing a Wells Fargo Bank branch in Grants, N.M.
Chavez was arrested on March 29, 2016, on an indictment charging him with robbing two banks in Cibola County, N.M. According to the indictment, Chavez robbed the Bank of New Mexico branch located at 824 West Santa Fe Ave. in Grants on Feb. 20, 2015, and the Wells Fargo Bank branch located at 201 North First St. in Grants on Oct. 20, 2015.
During today’s plea hearing, Chavez pled guilty to one bank robbery charge, and admitted robbing the Wells Fargo Bank located at 201 North First St. in Grants, on Oct. 20, 2015.
At sentencing, Chavez faces a statutory maximum penalty of 20 years in federal prison. Chavez remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and the Grants Police Department. Assistant U.S. Attorney Edward Han is prosecuting the case.
California Man Pleads Guilty to Cashing Fraudulent and Stolen ChecksRead the Press Release
Cashed Tax Refund and Social Security Checks at Walmart Stores
A San Pablo, California, resident pleaded guilty to his role in a conspiracy to commit theft of government property, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, U.S. Attorney Brian J. Stretch of the Northern District of California and Special Agent in Charge Michael T. Batdorf for the Internal Revenue Service’s Criminal Investigation (IRS-CI).
According to the plea agreement, from about August 2013 through April 2015, Devonnie Davison, participated in a conspiracy to illegally obtain money from the federal government by negotiating misappropriated U.S. Treasury checks. He pleaded guilty to one count of conspiracy to commit theft of public money and two counts of theft of public money. Davison admitted that some of the checks were obtained by filing false tax returns with the IRS while others were stolen U.S. Treasury checks acquired by his coconspirators. Davison cashed those checks under false pretenses at Walmart stores in the Bay Area. To carry out the scheme, Walmart cashiers were paid by members of the conspiracy to cash the fraudulent and stolen U.S. Treasury checks. Davison also conspired with other individuals who prepared and filed false tax returns with the IRS and attempted to cash stolen U.S. Treasury checks during 2013, 2014 and 2015, which totaled $521,318.
Davison, along with 10 codefendants, was charged on Nov. 5, 2015, in a 71-count indictment with conspiracy to commit theft of public money, theft of public money, wire fraud, and aggravated identity theft.
Davison faces a statutory maximum term of five years in prison for the count of conspiracy to commit theft of public money and 10 years in prison for the count of theft of public money. He also faces a term of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo, U.S. Attorney Stretch and Special Agent in Charge Batdorf commended special agents of IRS-CI, who investigated the case and Assistant U.S. Attorneys Thomas Newman and Jose A. Olivera and Trial Attorney Gregory Bernstein of the Justice Department’s Tax Division, who are prosecuting the case.
California Attorney and Two Brothers Charged in Stock Manipulation SchemeRead the Press Release
BOSTON – A California-licensed attorney and his two brothers were charged in U.S. District Court in Boston in connection with a scheme to manipulate the market for the stock of a publicly traded microcap company.
Jehu Hand, 59, was charged in a superseding indictment with conspiracy to commit securities fraud and wire fraud, securities fraud, and wire fraud. His brother Learned Hand, 57, was charged today in an Information with conspiracy to commit securities fraud. His other brother, Adam Hand, 51, previously pleaded guilty to an Information charging him with conspiracy to commit securities fraud. All of the charges arise out of the Hand brothers’ involvement in a pump-and-dump scheme to manipulate the market for the stock of Crown Marketing, a microcap or “penny stock” company that claimed to own patented drug delivery technology. In December 2015, Jehu Hand was charged with destruction of records in a federal investigation as well as charges related to his participation in a scheme to pump and dump the publicly traded securities of another penny stock company, Greenway Technology.
According to the superseding indictment, Jehu Hand and his co-conspirators engaged in a scheme to conceal their control over the majority of Crown’s free-trading stock so that they could “pump” up the company’s share price and then secretly “dump” their shares into the market. Jehu Hand filed false registration statements with the Securities and Exchange Commission (SEC) so that stock that the co-conspirators controlled could be sold to the public. Meanwhile, the co-conspirators, including Learned Hand, who had been named Crown’s CEO, orchestrated the distribution of press releases containing false and misleading statements regarding patented drug delivery technology purportedly owned by Crown. Crown’s share price and trading volume shot up as a result of the hype created by the false press and a related promotional campaign, and the co-conspirators, including Adam Hand, then proceeded to sell millions of shares of Crown stock to unwitting investors at inflated prices. The superseding indictment further alleges that later, in March 2016, after he had already been indicted for his alleged involvement in the Greenway Technology scheme, Jehu Hand deleted thousands of electronic records in an effort to obstruct the government’s ongoing investigation of his activities.
According to court documents, the conspirators’ sales of Crown stock often occurred after the dissemination of blast e-mails touting Crown’s stock to investors.
These charges arise out of a multi-year investigation focusing on preventing fraud in the microcap stock markets. Microcap companies are small publicly traded companies whose stock often trades at pennies per share. Fraud in the microcap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the SEC.
The United States Attorney’s Office received valuable assistance from the SEC during the investigation of this matter.
The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. The charges of securities fraud and wire fraud provide for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. The charge of destruction of records in a federal investigation provides for a sentence of no greater than 20 years in prison, three years of supervised release and a 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 and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Vassili Thomadakis of Ortiz’s criminal division and SEC attorneys Andrew Palid and Eric Forni, who were appointed as Special Assistant U.S. Attorneys.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If you purchased shares of Crown between September 2012 and July 2013 and believe that you may be a victim of the alleged scheme, please contact the United States Attorney’s Office at [email protected].
Buffalo Man Pleads Guilty to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today Antonio Eldridge, 28, of Buffalo, NY, pleaded guilty before U.S. District Court Judge Richard J. Arcara to being a felon in possession of a firearm. The charge carries a maximum sentence of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that on March 11, 2016, the Buffalo Police Department received information that the defendant, a convicted felon, had displayed a firearm to children. During this investigation, officers located Eldridge hiding in a basement crawl space of the children’s residence. Officers further recovered a Winchester Model 69A .22 caliber rifle hidden under a mattress in this residence. As a convicted felon, the defendant is prohibited from legally possessing a firearm.
The plea is the culmination of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.
Sentencing is scheduled for December 2, 2016, at 12:30 p.m. before Judge Arcara.
Bronx Tax Preparer Pleads Guilty to $500,000 Tax Fraud, Aggravated Identity Theft and Passport FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (“IRS-CI”), announced that REBECCA BAYUO pled guilty today to charges related to her preparation and filing of false and fraudulent income tax returns that resulted in inflated refunds to taxpayers, and her use of stolen identities to collect fraudulent tax refunds. BAYOU’s conduct resulted in a loss to the United States government of more than $500,000. BAYUO pled guilty to aiding and assisting in the preparation of false and fraudulent United States income tax returns, theft of government funds, passport fraud, and aggravated identity theft before U.S. District Court Judge John G. Koeltl.
Manhattan U.S. Attorney Preet Bharara said: “Rebecca Bayuo used her Bronx tax preparation business to file fraudulent tax returns for her clients, costing the government over $500,000 in lost tax revenue. Bayou went beyond simply falsely overstating expenses, business losses, and charitable gifts, also using stolen identifying information to claim false minor dependents.”
IRS-CI Special Agent in Charge Shantelle P. Kitchen said: “Today, Ms. Bayuo is held accountable for the frauds she committed, including using stolen identities on tax returns she prepared for her clients and on her own tax returns. IRS-Criminal Investigation remains committed to investigating individuals who allegedly prepare false tax returns to obtain fraudulent refunds. We are especially vigilant when it comes to schemes involving stolen identities, as these frauds victimize not only law-abiding taxpayers, but specifically the individuals whose identities were stolen.”
According to the allegations contained in the Indictment filed against BAYUO, and statements made in related court filings and proceedings:
BAYUO owned and operated a tax preparation business located in the Bronx, New York. From 2010 through 2012, BAYUO prepared and submitted to the IRS false and fraudulent tax returns for her clients that resulted in increased tax refunds by fabricating or overstating unreimbursed employment expenses, gifts to charity, and business losses. BAYUO also charged clients additional fees to use stolen identifying information of minors, including names, dates of birth, and social security numbers, to claim false minor dependents on their tax returns to increase the taxpayers’ refund amount.
In addition, from 2010 through 2014, BAYUO used stolen identifying information to file fraudulent income tax returns that generated tax refunds to which BAYUO was not entitled. Finally, BAYUO used the stolen identifying information of one victim to illegally obtain a United States passport, which she used to travel internationally on multiple occasions from 2007 through 2014.
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BAYUO, 45, of Bronx, New York, pled guilty to one count of aiding and assisting in the preparation of false and fraudulent United States income tax returns, which carries a maximum sentence of three years in prison; one count of theft of government funds, which carries a maximum sentence of 10 years in prison; one count of passport fraud, which carries a maximum sentence of 10 years in prison; and one count of aggravated identity theft, which carries a mandatory, consecutive term of two years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
In pleading guilty, BAYUO agreed to forfeit to the United States a sum of money no less than $102,865.67 and to pay restitution to the IRS in the amount of $575,000.
She is scheduled to be sentenced by Judge Koeltl on December 2, 2016, at 11:00 a.m.
Mr. Bharara praised the investigative work of IRS-CI.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Jason M. Swergold is in charge of the prosecution.
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Attorney General Loretta E. Lynch, Justice Department Officials to Participate in National Night Out Events in Detroit to Promote Community-Police PartnershipsRead the Press Release
Attorney General Loretta E. Lynch and Department of Justice officials will travel to Detroit on TUESDAY, AUGUST 2, 2016 as part of the 33rd Annual National Night Out. The Attorney General will deliver remarks at the Detroit Police Department’s 6th and 8th Precincts along with U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Mayor Mike Duggan of Detroit, Police Chief James Craig, and National Association of Town Watch Executive Director Matt Peskin. Senior Department of Justice Officials and U.S. Attorneys in districts around the country are expected to also participate in National Night Out events as part of a department wide effort to bring attention to events that build stronger community-police relations.
“For more than 30 years, National Night Out has helped to prevent crime, strengthen community-police relationships, and empower neighborhoods across the United States,” said Attorney General Lynch. “By giving law enforcement and local residents a chance to gather in a positive and supportive environment, National Night Out forges the bonds of trust that are so essential to the creation of stronger, safer, and more united communities where every American can flourish. The Department of Justice is working tirelessly to help build those vibrant communities throughout our nation, and we are proud to stand alongside National Night Out in that vital effort.”
National Night Out is an annual community-building campaign that promotes police-community partnerships and neighborhood camaraderie to make our neighborhoods safer, better places to live. In most areas of the country, the program culminates annually on the first Tuesday of August. National Night Out organizers expect to hold more than 16,000 community events around the country this year.
Established in 1984 from a Department of Justice Bureau of Justice Assistance (BJA) grant, the goal of National Night Out is to build relationships with and between communities and law enforcement, to promote crime prevention efforts, and to send a message to criminals that neighbors are paying attention and are prepared to work together to keep each other safe.
National Night Out Event with the Detroit Police Department’s 6th and 8th Precincts:
WHO: Attorney General Loretta E. Lynch
WHEN: TUESDAY, AUGUST 2, 2016
6:00 p.m. EDT
WHERE: Detroit Police Department, 6th & 8th Precincts
Fitzpatrick Play Field
11450 Warwick Street
Detroit, MI 48228
OPEN PRESS
National Night Out Event with the Detroit Police Department’s 2nd Precinct:
WHO: Head of the of the Civil Rights Division Vanita Gupta
Director Ron Davis of the Office of Community Oriented Policing Services
WHEN: TUESDAY, AUGUST 2, 2016
6:00 p.m. EDT
WHERE: 13530 Lesure St.
Detroit, MI 48227
OPEN PRESS
National Night Out Event with the Detroit Police Department’s 11th Precinct:
WHO: Assistant Attorney General Karol Mason of the Office of Justice Programs
Director Paul Monteiro of the Community Relations Service
WHEN: TUESDAY, AUGUST 2, 2016
6:00 p.m. EDT
WHERE: 5100 Nevada St
Detroit, MI 48234
OPEN PRESS
For information on National Night Out events in your community, visit https://natw.org/. Click here for a list of U.S. Attorneys’ offices that are participating in community events across the country.
Arizona Man Sentenced in Real Estate Fraud CaseRead the Press Release
KANSAS CITY, KAN. – An Arizona man was sentenced Tuesday to two years in federal prison for taking part in a real estate fraud scheme in which developers borrowed to build townhomes at Table Rock Lake, Acting U.S. Attorney Tom Beall said today. In addition, he was ordered to pay more than $14.2 million in restitution.
James B. Clarkson, 45, Casa Grande, Ariz., pleaded guilty to one count of conspiracy to commit bank fraud.
In his plea, he admitted that while he was working as a mortgage broker he entered into an agreement with co-defendants David Drake and Donald Snider to advertise and obtain investors for their Indian Ridge Project. Drake and Snider planned to construct townhomes near Table Rock Lake and sell them as vacation homes.
Clarkson prepared loan applications for buyers in which he made false statements. He inflated borrowers’ income to make sure they qualified for loans.
Drake and Snider obtained 51 construction loans for their project. The loan agreements required construction costs be paid before seeking reimbursement. Instead, Drake and Snider failed to do enough construction to justify the funding they received. Only 13 homes were started and none of them were completed. Drake and Snider used the money from the loans for personal expenses and expenses related to other construction projects.
Drake and Snider are awaiting sentencing.
Beall commended the Federal Deposit Insurance Corporation, the Internal Revenue Service, the U.S. Secret Service and Assistant U.S. Attorney Chris Oakley for their work on the case.
Allen County, Kentucky, Tobacco Farmers Guilty of Crop Insurance FraudRead the Press Release
Both defrauded crop insurance companies of more than $1 million each
BOWLING GREEN, Ky. – Two Allen County, Kentucky, farmers pleaded guilty in United States District Court today, before Magistrate Judge H. Brent Brennenstuhl, to a single charge each of crop insurance fraud announced United States Attorney John E. Kuhn, Jr.
According to the separate plea agreements, David Manion, 53, and Henry Manion, 48, aided and abetted by others, admitted to knowingly making false statements and reports on applications for insurance. Both defendants made false statements for the purpose of influencing the actions (insurance payments) of the Federal Crop Insurance Corporation (FCIC) and Producers Agriculture Insurance Company (ProAg), a company insured by the Federal Crop Insurance Corporation. Additionally, David Manion had crop insurance provided by Rural Community Insurance Services (RCIS), a company insured by the Federal Crop Insurance Corporation (FCIC).
The violations by Henry Manion occurred between August 10, 2009, and February 14, 2012, in Allen and Simpson Counties in Kentucky. The violations by David Manion occurred between August 25, 2009, and February 7, 2012, in Allen, Simpson and Warren Counties in the Western District of Kentucky. At all relevant times, their tobacco crops were covered by companies insured by the FCIC.
According to the plea agreement, David Manion had eight (8) separate tobacco crop insurance policies on eight (8) different crops. David Manion, aided and abetted by others, admitted to intentionally overstating crop damage for each crop on a crop insurance claim, resulting in a loss of $1,133,498.
According to a separate plea agreement, Henry Manion had five (5) separate tobacco crop insurance policies on five (5) different crops. Henry Manion, aided and abetted by others, admitted to intentionally overstating crop damage for each crop on a crop insurance claim form, resulting in a loss of $1,104,087.
According to the terms of the plea agreements, at sentencing the United States agrees to recommend a sentence for both defendants at the lowest end of the sentencing guideline range and each defendant will be required to make full restitution to the FCIC. If convicted at trial, Henry Manion and David Manion each faced a maximum prison term of 30 years and a maximum fine of $1,000,000.
Sentencing is scheduled before U.S. District Judge Gregory N. Stivers on December 5, 2016 at 10:00 a.m. in Bowling Green, Kentucky.
These cases are being prosecuted by Assistant United States Attorney David Weiser and are being investigated by the United States Department of Agriculture (USDA) Office of Inspector General (OIG). manion_david_plea_8-2-16.pdf manion_henry_plea_8-2-16.pdf
Albuquerque Man Pleads Guilty to Armed Robbery of Walmart Store and Agrees to 18 Year Prison SentenceRead the Press Release
ALBUQUERQUE – Raymond Castillo, 27, of Albuquerque, N.M., pled guilty today in federal court to violating the Hobbs Act by participating in the armed robbery of a Walmart store in Albuquerque in Oct. 2014. Under the terms of his plea agreement, Castillo will be sentenced to 216 months in prison followed by a term of supervised release to be determined by the court.
Castillo was arrested on Dec. 12, 2014, on a criminal complaint charging him with conspiring to rob a business involved in interstate commerce at gunpoint in violation of the Hobbs Act. The criminal complaint charged Castillo and a co-conspirator with the armed robbery of convenience store located at 1111 Lomas Blvd. NW in Albuquerque on Dec. 7, 2014. The complaint further alleged that the co-conspirator, who was wearing a hooded sweatshirt and a bandana that covered his face, shot and injured the store clerk during the robbery, and that Castillo drove the co-conspirator away from the scene of the robbery.
On Jan. 21, 2015, Castillo and five co-defendants were charged with violating the Hobbs Act and federal firearms laws in a five-count indictment. Count 1 charged Castillo and five other Albuquerque residents, Reyes Lujan, 27, Daniel Maestas, 36, Johnny Ramirez, 30, Frank Gallegos, 31, and Henry Lujan, 23, with conspiring to violate the Hobbs Act. Count 2 charged the six men with violating the Hobbs Act by robbing a Walmart Store in Bernalillo County, N.M., on Oct. 29, 2014. Count 3 charged Castillo with brandishing a firearm during the robbery of the Walmart store, and Count 4 charges Maestas with using and carrying a firearm during the robbery. Count 5 charged Ramirez, Gallegos, Reyes Lujan and Henry Lujan with aiding and abetting the use of firearms during the robbery.
The indictment was superseded in May 2015, by adding a new defendant, Reynaldo Marquez, 26, of Albuquerque, and two new counts. One of the new counts charged Castillo and Marquez with interfering with interstate commerce by robbing a 7-11 convenience store located in Bernalillo County on Dec. 7, 2014. The other charged Marquez with discharging a firearm during that robbery.
On Oct. 19, 2015, Reyes Lujan entered a guilty plea, and was sentenced on March 8, 2016, to 71 months in prison followed by three years of supervised release. Gallegos, Ramirez and Maestas also have entered guilty pleas and have yet to be sentenced.
Marquez and Henry Lujan have entered pleas of not guilty to the superseding indictment. Charges in indictments are merely accusations, and all criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorneys Norman Cairns and Samuel A. Hurtado are prosecuting this case.
This case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. In recognition that New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community has come together to is collaborating the initiative is significantly exceed the national average.
Albany Man Sentenced to 60 Months for Child Pornography DistributionRead the Press Release
ALBANY, NEW YORK – Michael G. Isaacson, age 34, of Albany, was sentenced today to 60 months in prison for distributing and possessing child pornography, announced U.S. Attorney Richard S. Hartunian.
Senior U.S. District Judge Gary L. Sharpe also sentenced Isaacson to 25 years of supervised release, to be served after his release from prison. Isaacson will also be required to register as a sex offender.
As part of his plea on March 1, Isaacson admitted that he distributed child pornography files over the Internet. He also admitted to possessing more than 1,000 image files, and more than 30 video files, depicting minors engaged in sexually explicit poses or conduct.
This case was investigated by the Colonie Police Department and the Federal Bureau of Investigation’s Albany Division, and was prosecuted by Assistant U.S. Attorney Michael Barnett.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ 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 http://www.justice.gov/psc/.
Airline Passenger Charged with Abusive Sexual Contact of Sleeping Woman on Flight from Los Angeles to New JerseyRead the Press Release
NEWARK, N.J. - An airline passenger was charged with sexually touching a sleeping woman who did not know him aboard a flight from Los Angeles International Airport to Newark Liberty International Airport, U.S. Attorney Paul J. Fishman announced today.
Veerabhadrarao Kunam, 58, of Visakhapatnam, India, is charged by complaint with one count of abusive sexual contact. He appeared yesterday afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was released on $50,000 secured bond.
Kunam was arrested on July 30, 2016 – the day his flight arrived in Newark – and was taken into federal custody by the FBI.
According to the complaint:
Kunam was seated next to a woman who occupied a middle seat on a Virgin America redeye flight from Los Angeles to Newark. While the plane was in the air, the woman fell asleep. She awoke to find Kunam massaging her genitals and rubbing his bare feet against her bare feet.
Upon noticing Kunam touching her, the victim alerted her male travel companion who traded seats with the victim and confronted Kunam. Kunam allegedly told the victim’s travel companion that he wanted everyone to forget about the incident and offered to buy the travel companion a drink for any trouble he may have caused. The travel companion declined Kunam’s offer and alerted a flight crew member about what had occurred.
A member of the flight crew then moved Kunam to another seat and instructed him not to return to his original seat. Kunam allegedly told the flight crew member that he would not touch the victim again.
The federal government has exclusive jurisdiction over all sexual abuse cases that occur on aircraft in flight in the United States.
The abusive sexual contact charge carries a maximum potential penalty of two years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and the Port Authority Police Department, under the direction of Superintendent Michael A. Fedorko, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Francisco J. Navarro of the U.S. Attorney’s Office Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Alexander Spiro Esq., New York
1 August 2016
U.S. Attorney’s Office to take part in National Night OutRead the Press Release
WHEELING, WEST VIRGINIA – U.S. Attorney William J. Ihlenfeld, II announced that he and members of his staff will join law enforcement and community leaders on Tuesday, August 2nd in Bridgeport, Clarksburg, Martinsburg, and Wheeling as part of the annual National Night Out crime and drug prevention event.
According to Ihlenfeld, National Night Out is designed to heighten crime and drug prevention awareness, generate support for and participation in local anti-crime efforts, and strengthen neighborhood spirit and police-community partnerships.
“It’s more important than ever before that we bring the police and the community together,” said Ihlenfeld. “We already have great trust between communities and law enforcement in Northern West Virginia, and National Night Out is a wonderful opportunity to build upon what we have and make it even stronger.”
The United States Attorney’s Office will be present at four National Night Out events, to include the events at the Benedum Civic Center in Bridgeport, the VA Park in Clarksburg, the War Memorial Park in Martinsburg, and Wheeling Park in Wheeling. Each of these events will begin at 6 p.m.
National Night Out organizers are expecting over 16,000 communities and 38 million people to take part in community events on Tuesday across the country.