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22 July 2016
Choctaw Man Pleads Guilty to Second Degree MurderRead the Press Release
Jackson, Miss –James Bell, Jr., 21, of Choctaw, Mississippi, entered a guilty plea on July 19, 2016 to second degree murder, announced U.S. Attorney Gregory K. Davis. The murder occurred in the Pearl River Community of the Choctaw Indian Reservation near Philadelphia, Mississippi.
Bell will be sentenced by U.S. District Judge Daniel Jordan III on October 17, 2016. He faces a maximum statutory sentence of life in prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation and the Choctaw Police Department. Assistant United States Attorneys Patrick Lemon and Darren J. LaMarca are prosecuting the case.
Canton Man Indicted for Federal Drug and Firearm OffensesRead the Press Release
BOSTON – A Canton man was charged yesterday in U.S. District Court in Boston in connection with being a felon in possession of a firearm and distribution of cocaine.
Hollis Owens, 44, was indicted on one count of being a felon in possession of a firearm and ammunition, four counts of distribution of a controlled substance and one count of possessing a firearm in furtherance of a drug trafficking crime. Owens was previously charged by complaint and arrested in April 2016.
According to court documents, in the spring of 2016, law enforcement officers were investigating illegal distribution of cocaine in Framingham. During that time, officers conducted several controlled purchases of cocaine from Owens. In April 2016, a search of Owen’s residence revealed approximately 18 grams of crack cocaine, a loaded Smith & Wesson 9mm hand gun, 114 rounds of various caliber ammunition and $1,869 in cash.
Owens was prohibited from possessing a firearm because he had a prior state felony conviction.
The charge of being a felon in possession of ammunition provides a sentence of no greater than 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of distribution of a controlled substance provides a sentence of no greater than 20 years in prison, five years of supervised release and a fine of $1 million. The charge of possessing a firearm in furtherance of a drug trafficking crime provides a minimum mandatory sentence of five years in prison and no greater than a lifetime which must be served consecutive to any other imposed sentence, five 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 Lawrence J. Panetta, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Nicholas Soivilien of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
California Man Found Guilty on Narcotics Trafficking ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JUAN PABLO ARREOLA was found guilty yesterday of conspiring to distribute kilogram quantities of heroin. ARREOLA was convicted after a four-day jury trial before U.S. District Judge Richard M. Berman.
Manhattan U.S. Attorney Preet Bharara said: “As a jury unanimously found in convicting him, Juan Pablo Arreola flooded the streets of New York with more than 40 kilograms of heroin in the span of just three years. Arreola now stands convicted of profiting from the destructive heroin and opioid epidemic that has afflicted too many of our communities.”
According to the evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
Between 2013 and August 2015, ARREOLA conspired with others to traffic in excess of 40 kilograms of heroin from California to New York. ARREOLA and other members of the drug trafficking organization shipped heroin via the mail, with the heroin hidden in protein powder containers, and via a long-haul trucking company, with the heroin hidden in copy machines and stereo boxes.
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ARREOLA, 37, of Compton, California, faces a mandatory minimum sentence of 10 years in prison, and a maximum sentence of life in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Sentencing is scheduled for October 27, 2016, before Judge Berman.
Mr. Bharara praised the outstanding investigative work of the DEA’s New York Organized Crime Drug Enforcement Strike Force, which comprises officers of the DEA, the New York City Police Department, Immigration and Customs Enforcement – Homeland Security Investigations (HSI), the New York State Police, the U. S. Internal Revenue Service Criminal Investigation Division, the Federal Bureau of Investigation, U.S. Secret Service, the U.S. Marshal Service, New York National Guard, the New York Department of Taxation and Finance, the Rockland County Sheriff’s Office, the Clarkstown Police Department, Port Washington Police Department, and New York State Department of Corrections and Community Supervision. The Strike Force is partially funded by the New York/New Jersey High Intensity Drug Trafficking Area (HIDTA), which is a federally funded crime fighting initiative.
This case is being prosecuted by the Office’s Narcotics Unit. Assistant United States Attorneys Robert W. Allen and Rebekah Donaleski are in charge of the prosecution.
Butte County Company to Pay $1.5 Million Following Investigation Regarding Immigration ViolationsRead the Press Release
SACRAMENTO, Calif. – Mary’s Gone Crackers Inc., a natural food company based in Gridley, has agreed to pay $1.5 million and to establish a corporate compliance program under a nonprosecution agreement reached with the United States Attorney’s Office for the Eastern District of California following an investigation into potential criminal violations of federal immigration laws, Acting United States Attorney Phillip A. Talbert announced.
According to the agreement, in March 2012, Immigration and Customs Enforcement audited Mary’s Gone Crackers’ I-9 immigration forms for its employees. Later, in May 2012, ICE notified Mary’s Gone Crackers that 49 of its employees appeared not to be authorized to work in the United States. After one employee provided corrected documentation, Mary’s Gone Crackers informed ICE that the other 48 had all resigned or been terminated. However, within less than a month, Mary’s Gone Crackers rehired at least 13 employees that it claimed had been terminated or resigned, all of them under new names. One of those 13, an operations supervisor, never stopped working for Mary’s Gone Crackers at all, but instead continued to work under a new assumed name and received payment as an independent contractor, rather than through the company’s ordinary payroll. Several other Mary’s Gone Crackers employees knew that the operations supervisor was not eligible to work in the United States. When a search warrant was executed at the company’s Gridley facility in January 2013 by federal law enforcement, at least 12 of the 13 rehired individuals were still working at Mary’s Gone Crackers.
"Protecting the integrity of the nation's immigration system is a top priority for HSI," said Ryan L. Spradlin, special agent in charge for HSI San Francisco. "Our agents are determined to hold those who choose to defraud the system accountable in order to reduce the demand for illegal employment and protect employment opportunities for the nation’s lawful workforce."
As further described in the agreement, during the course of the I-9 audit and its rehiring of individuals, Mary’s Gone Crackers had at times consulted with an outside counsel from the Chico area. After the search warrant, Mary’s Gone Crackers cooperated with the government’s investigation and took remedial measures, including terminating employees, stopping use of the outside counsel involved, and taking various steps to ensure compliance with immigration laws and I-9 regulations, including use of E-Verify and the Social Security Verification Service. The company also established an anonymous tip line so that employees can report any potential I-9 issues. The nonprosecution agreement requires Mary’s Gone Crackers to establish a corporate compliance program covering its I-9 procedures and its use of the E‑Verify system, and requires timely and complete disclosure of violations of immigration laws or regulations within 24 hours of discovery. It also requires Mary’s Gone Crackers to provide corporate compliance reporting to the United States Attorney’s Office for two years. No federal criminal charges will be brought against Mary’s Gone Crackers for the investigated conduct if the company complies with the terms of the nonprosecution agreement. The agreement is only between the government and the company Mary’s Gone Crackers, and does not pertain to specific individuals.
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). The government was represented by Assistant United States Attorney Christopher S. Hales.
Berkeley County man indicted on federal firearm chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – A federal grand jury returned an indictment charging Jonathan Leigh Wienke, 45, of Martinsburg, West Virginia with multiple firearm charges, United States Attorney William J. Ihlenfeld, II, announced.In June 2016, Wienke allegedly possessed a .22 caliber pistol, a firearm silencer, and materials to manufacture firearm silencers in Berkeley County, WV. Wienke is charged with one count of "Making a Firearm in Violation of the National Firearms Act,” two counts of “Receipt or Possession of Firearms Made in Violation of the National Firearms Act,” two counts of “Receipt or Possession of an Unregistered Firearm,” and two counts of “Receipt or Possession of Firearm Unidentified by Serial Number,”
He faces up to ten years in prison and a fine up to $10,000 for each charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Anna Z. Krasinski is handling the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Department of Homeland Security are investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Battle Creek Sex Traffickers Charged FederallyRead the Press Release
GRAND RAPIDS, MICHIGAN –A federal grand jury indicted four Battle Creek men, William Jeffrey-Davis Edwards (age 24), Dakota Dale Walters (age 24), James Gabriel Smith (age 26), and Michael Ray Noble II (age 20), on multiple counts of sex trafficking two minors, both age 14. Calhoun County previously charged all four defendants with human trafficking upon their arrest in June, and those charges will be dismissed in light of the federal prosecution. Homeland Security Investigations has been working closely with the Battle Creek Police Department on a coordinated state and federal investigation.
The defendants face up to life in prison on the sex trafficking counts, sex offender registration, and up to lifetime on intensive federal supervised release after prison. The minors will be able to seek monetary restitution for counseling, treatment, and other damages if the defendants are convicted. In addition to being charged with sex trafficking, Smith faces up to 10 years in prison on one count of being a felon in possession of a firearm.
This case, prosecuted by Assistant U.S. Attorney Tessa K. Hessmiller, is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office; county prosecutor’s offices; and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
The charges in an indictment are merely accusations, and the defendants are presumed innocent until and unless proven guilty in a court of law.
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Bangor Resident Sentenced for Distributing CocaineRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Kliton Xhemali, 33, of Bangor was sentenced by U.S. District Judge John A. Woodcock today to eighteen months imprisonment and a three-year term of supervised release on his conviction for distribution of cocaine.
According to court records, on April 2, 2015, Xhemali sold approximately one ounce of cocaine to a government informant who was working with an undercover agent of the United States Drug Enforcement Administration (DEA). The sale took place at Xhemali’s residence in Bangor. At the sentencing hearing, the court found that Xhemali was responsible for four ounces of cocaine in addition to the amount that he sold on April 2 based on conduct that occurred on other dates.
In imposing the sentence, Judge Woodcock described as “mystifying” Xhemali’s decision to turn to drug dealing. The court observed that the defendant came from a good family in the Country of Albania who provided him with opportunities in this country, was highly educated, charismatic, a few credits away from earning a Master’s Degree in Business Administration, and a one-time owner of a pizzeria in Hampden, Maine. Considering all this, the judge stated “to whom much has been given, much is expected” and told Xhemali that “you used your gifts to distribute poison to the people of this area.”
The case was investigated by the U.S Drug Enforcement Administration and the Maine Drug Enforcement Agency.
Area Restaurant, and Its Owners, Sentenced for Conspiracy to Defraud the Internal Revenue ServiceRead the Press Release
Lotawata Creek, Inc., d/b/a Lotawata Creek Southern Grill, a restaurant located in Fairview Heights, Illinois, and its two owners, Rodney Archer, 50, and Kenneth Archer, 52, were each sentenced for the offense of Conspiracy to Obstruct the Internal Revenue Service in the Assessment and Collection of Federal Income Taxes, Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today. Lotawata Creek, Inc. d/b/a Lotawata Creek Southern Grill was sentenced to five years' probation and its owners, Kenneth Archer and Rodney Archer were each sentenced to four years' probation. The company (restaurant) and each owner were required to pay direct restitution totaling $219,183.23. This amount has already been paid prior to sentencing. Each of the defendants are required to pay additional penalties and interest (amounts are being determined) to the Internal Revenue Service, and, they will also have to pay unpaid taxes plus penalties and interest to the Illinois Department of Revenue, as well.
"Stealing from the government, by failing to pay your fair taxes, is stealing from all of the citizens of the United States." noted United States Attorney Boyce. "Our office will continue to ferret out and prosecute tax cheats wherever they may be or whatever their scheme."
The convictions are the result of a scheme by Rodney Archer, Kenneth Archer, and Lotawata Creek, Inc., d/b/a Lotawata Creek Southern Grill, beginning in 2010, through in or about July, 2015, where they altered and manipulated the information in the restaurant's point of sale system to lower the reported cash sales and then removed the corresponding amount of cash from the business prior to being deposited and reported as gross receipts. This had the effect of
lowering the total gross receipts reported on the tax returns and thereby lowering the total taxable income reported to the Internal Revenue Service.
The successful prosecution is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations. The prosecution of the case was handled by Assistant U.S. Attorney Norman R. Smith.
Alleged Member of Violent Robbery Crew Charged with Firearm-Related MurderRead the Press Release
Earlier today, Nestor Marcelino Delacruz Santana (Delacruz) was arraigned on an indictment before United States District Judge Nicholas G. Garaufis in Brooklyn federal court. Delacruz is charged with the 2003 firearm-related homicide of Francisco De Orbe.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division. The investigation was led by the DEA’s New York Drug Enforcement Task Force comprising agents and officers from the DEA, New York City Police Department, and the New York State Police.
As detailed in the indictment and other court filings by the government, Delacruz was an associate of a violent New York-based robbery crew that operated in Philadelphia and elsewhere. The crew targeted drug dealers who had access to large sums of narcotics and drug proceeds. Crew members would kidnap their intended victims and torture them until they disclosed the location of their drugs and cash, which the crew then stole.
On or about May 9, 2003, in Frankford, Pennsylvania, a suburb of Philadelphia, Delacruz and other crew members kidnapped and tortured De Orbe until he revealed the location of his drugs and cash. The crew then stole several thousand dollars in cash and more than a kilogram of cocaine from De Orbe.
Having predetermined that De Orbe would be killed after he was robbed, at Delacruz’s direction one of his co-conspirators injected De Orbe with an overdose of heroin. When that failed to kill De Orbe, he was shot in the neck, and his body was discarded.
“As charged in the indictment, Delacruz was a member of a vicious robbery crew that hunted down and murdered its victims for drugs and money,” stated United States Attorney Capers. “Law enforcement pursued him for nearly a decade, demonstrating our commitment to ridding the streets of our communities from the scourge of drug trafficking and its related violence.”
DEA Special Agent-in-Charge Hunt stated, “A little more than a kilogram of cocaine and thousands of dollars was the price Delacruz put on his victim’s head. This historical investigation brought a brutal killer to justice after 13 years on the lam. I commend the men and women of the New York Drug Enforcement Task Force for their dutiful commitment to this investigation.”
“The NYPD will continue to investigate and arrest those who carry out this type of brazen violence that threatens the public safety,” said NYPD Police Commissioner Bratton. “With the hard work of the U.S. Attorney’s Office for the Eastern District of New York and the Drug Enforcement Task Force, we will continue to root out organized drug trafficking and the inevitable violence that follows.”
NYSP Superintendent Beach stated, “The work of the New York Drug Enforcement Task Force and our partners has resulted in a dangerous man being taken off the streets. This man and his associates are a prime example of the dangerous crimes that are associated with drug trafficking. State Police and our partners will continue to work together to rid our communities of these dangerous substances, and the violence that comes with them.”
The charges in the indictment are merely allegations, and Delacruz is presumed innocent unless and until proven guilty. If convicted, he faces a maximum penalty of life imprisonment, or possibly the death penalty.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Julia Nestor and Craig R. Heeren are in charge of the prosecution.
The Defendant:
NESTOR MARCELINO DELACRUZ SANTANA
Philadelphia, Pennsylvania
Age: 44EDNY Docket No. 16-CR-337
21 July 2016
Wilkes-Barre Post Office Mail Carrier Assistant Charged with Destruction and Delay of MailRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that charges relating to the improper disposal of mailed items were filed against David T. Clocker on July 20. Clocker, age 34, of Wilkes-Barre, Pennsylvania, was charged with one count of misdemeanor destruction of mail in a Criminal Information filed today in U.S. District Court in Scranton.
According to U.S. Attorney Peter Smith, Clocker is charged with delay and destruction of mail between January and March 2016. The charges stem from an investigation by the Office of Inspector General, United States Postal Service.
Along with the Information, a plea agreement was filed in which Clocker agrees to plead guilty to the delay and destruction of mail charge. The plea agreement must be approved by the court. Clocker faces a maximum of one year in prison and a $100,000 fine, Smith said.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is one year of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
The case was investigation by OIG-USPS. The case is being prosecuted by Assistant United States Attorney Todd K. Hinkley.
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West Haven Woman Sentenced to 3 Years in Prison for Distributing NarcoticsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that NATALI MARTINEZ, 30, formerly of West Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 36 months of imprisonment, followed by three years of supervised release, for distributing narcotics.
According to court documents and statements made in court, at approximately 11:00 a.m. on July 4, 2015, an explosion took place on Wintergreen Avenue in Hamden. Responding law enforcement located a deceased white male, who had been wrapped in plastic garbage bag material and bound by rope material, in a wooded area close to where the explosion had occurred. An explosive-type device and debris were also located in close proximity to the body. The victim, who had also sustained three apparent gunshot wounds, was subsequently identified as Edward Brooks, 39, of West Haven.
After West Haven Police informed investigators that Brooks had been residing at 59 Front Avenue in West Haven, and that the residents of 59 Front Avenue, including MARTINEZ, were subjects of an ongoing narcotics investigation, investigators executed a state narcotics search and seizure warrant at 59 Front Avenue and seized numerous items, including pipe bomb making materials that were consistent with the materials found at the Wintergreen Avenue explosion scene, approximately 16 grams of crack cocaine, approximately 10.6 grams of methamphetamine and narcotics packaging material. Investigators also seized a surveillance DVR, which captured video surveillance from eight cameras placed around the residence.
MARTINEZ has been detained since her arrest on July 13, 2015. On March 9, 2016, she pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine base (“crack cocaine”).
This matter is being investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, U.S. Postal Inspection Service, Connecticut State Police and West Haven Police Department. The case is being prosecuted by Assistant U.S. Attorneys Vanessa Richards, Stephen Reynolds and Jacabed Rodriguez-Coss. This investigation and prosecution is being coordinated with the State’s Attorney’s Office for the Judicial District of Ansonia-Milford.
Valley Forge Business Owner Charged with Bribery of Former Treasurer of PennsylvaniaRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that as a part of the ongoing investigation into pay-to-play activities at the Pennsylvania Treasury, a grand jury in Harrisburg has indicted a Valley Forge business owner for making hundreds of thousands of dollars in secret campaign contributions to the Pennsylvania Treasurer in a bid to influence the awarding of hundreds of millions of dollars in Pennsylvania state investments.
According to First Assistant United States Attorney Dennis Pfannenschmidt, Richard W. Ireland, age 79, of Coatesville, was indicted for secretly making over a half-million dollars in campaign payments to former Treasurer of Pennsylvania Robert M. McCord as part of a seven-year long bribery scheme designed to influence investment decisions at Treasury and the State Employees Retirement System (SERS). Ireland also promised to put McCord on “his payroll” after he left office in exchange for McCord’s influence. The secret campaign contributions were made during McCord’s two campaigns for Pennsylvania Treasurer and in his unsuccessful 2014 bid for Governor of Pennsylvania.
The investigation revealed that Ireland used straw campaign contributors to support McCord’s campaigns. At least $375,000 in campaign contributions were funneled through charities to conceal from the public that Richard Ireland was the true source of McCord’s campaign contributions. Hundreds of thousands of dollars in other campaign contributions were funneled through employees, who as straw campaign donors, hid Ireland as the true source of the campaign contributions. Between 2009 and 2014, over $500,000 in secret campaign contributions were given to McCord.
These secret campaign contributions were given in exchange for McCord’s official decisions to continue to invest in businesses affiliated with Ireland. These businesses had contracts with the Pennsylvania Treasury to manage hundreds of millions of dollars in Pennsylvania state assets. Because of fee sharing agreements, these businesses paid Ireland as much as 50% of all the fees they received from Pennsylvania Treasury. Over the years of this scheme, Ireland and these related businesses earned over $10,000,000 in fees.
First Assistant U. S. Attorney Pfannenschmidt was designated United States Attorney for this case because United States Attorney Peter J. Smith recused himself. Mr. Smith previously worked for former Treasurer Robert M. McCord for a short period of time at the Pennsylvania Treasury Department.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, and the Pennsylvania State Police. The case is assigned to Assistant United States Attorneys Michael A. Consiglio and William S. Houser.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine for each of the bribery charges brought against Richard Ireland. The false statements charge has a maximum 5 years of imprisonment as well as a fine and a term of supervised release. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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United States Attorney Announces Appointment of SDNY Civil Division ChiefRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced the appointment of Jeffrey Oestericher as the Chief of the Civil Division of the United States Attorney's Office for the Southern District of New York. Mr. Oestericher follows Sara Shudofsky, who served as the Office’s Civil Division Chief since June 2012. He will supervise all litigation for the Civil Division’s Units and further expand on the affirmative litigation work of the Civil Frauds Unit.
Mr. Oestericher has been with the Office for 22 years, and has been a Deputy Chief in the Civil Division since March 2003.
Mr. Oestericher began his career as an Assistant United States Attorney for the Southern District of New York in the Civil Division in June 1994. Five years later, he became the Deputy Chief of Appeals. During his tenure, Mr. Oestericher played an important role in many significant civil cases, including as lead attorney in U.S. v. Wells Fargo et al., a mortgage fraud case that resulted in a $1.2 billion judgment and admissions. He received the Henry L. Stimson Medal from the New York City Bar Association in 2003.
Mr. Oestericher is a 1987 graduate of the University of Rochester and a 1990 graduate of Yale Law School.
U.S. Attorney Preet Bharara said of the appointment: “Jeff has contributed so much to the mission of this office during his 22-year tenure here, and I am thrilled to have him now lead one of the most influential U.S. Attorney’s Office Civil Divisions in the country. I have no doubt that Jeff will continue the tradition of excellence in his new role.”
Two Men Charged with Armed Home Invasion of Paterson, New Jersey, Residence While Posing as Law EnforcementRead the Press Release
NEWARK, N.J. – Two men will appear in federal court today to face charges that they attempted to rob a Paterson, New Jersey, residence while dressed in Passaic County Sheriff uniforms and wielding a firearm, U.S. Attorney Paul J. Fishman announced.
Clemente R. Carlos, 29, of Newark, New Jersey, and Jason Thompson, 33, of Paterson, New Jersey, were charged in a superseding criminal complaint with one count of conspiracy to commit Hobbs Act robbery. Both men will appear this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. The complaint also charges Thompson with being a felon in possession of a firearm.
According to the complaint:
On Aug. 12, 2015 at around 7:00 a.m., Carlos and Thompson, both dressed in Passaic County Sherriff’s uniforms, accosted a female victim and her infant as the victim was leaving her residence in Paterson, New Jersey. The two men, posing as members of the Passaic County Sherriff’s Office, led the victim back into her apartment inside the residence.
Once inside, Thompson removed a firearm from a sidearm holster and pointed it at the victim’s brother, who had been sleeping inside the apartment. Thompson then used a zip-tie to restrain the man’s hands behind his back and instructed him to kneel on the floor. After searching the apartment and failing to find the money they were looking for, Carlos and Thompson then left the residence.
In December 2015, the Passaic County Prosecutor’s Office charged both Carlos and Thompson with multiple crimes arising from the home invasion, including kidnapping, weapons offenses, endangering the welfare of a minor, and robbery.
The Hobbs Act conspiracy charge carries a statutory maximum of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The charge of being a felon in possession of a firearm carries a maximum of 10 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 in Newark, and members of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes, with the investigation leading to today’s charges. He also thanked the Passaic County Sheriff’s Office and the Paterson Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Josh Hafetz of the U.S. Attorney’s Organized Crime/Gangs Unit in Newark.
Defense counsel:
Carlos: Gary Cutler Esq, Newark
Thompson: Sean McGovern Esq., Newark
Three Dallas Residents Sentenced for Roles in ID Theft Scheme to Fraudulently Obtain Unemployment Insurance BenefitsRead the Press Release
DALLAS — Two Dallas residents who admitted their roles in an identity theft scheme to fraudulently obtain unemployment insurance benefits from the Texas Workforce Commission (TWC) were sentenced today by U.S. District Judge Jane J. Boyle, announced U.S. Attorney John Parker of the Northern District of Texas.
Romar Bernard, 35, and Corey Toney, 30, were each sentenced today to 74 months in federal prison. Each pleaded guilty to one count of conspiracy to commit mail fraud and one count of aggravated identity theft. Co-conspirator Latavia Glover, 30, was sentenced last month by Judge Boyle to serve 24 months in federal prison. She pleaded guilty to one count of conspiracy to commit mail fraud. Each was ordered to pay, jointly and severally, more than $250,000 in restitution. Bernard has been in custody since his arrest in January 2015. Toney must surrender to the Bureau of Prisons in 30 days, and Glover was ordered to report earlier this month.
The unemployment insurance program in Texas is administered by the TWC. Its purpose is to lessen the effects of unemployment through payments made directly to laid-off workers (claimants).
The conspirators provided TWC false and fictitious employer names and addresses that they controlled and/or to which they had access. They also created fictitious companies, including Corey Toney’s Tax Service, Bernard Enterprises, LTG Tax Services, Interests Solutions, and Todd T. Plumbing, and filed fictitious wage reports for alleged employees of the fictitious companies. However, the names and associated Social Security numbers of the alleged employees listed on these reports were of actual individuals who were unaware of the scheme and the fact that their identities were being used. The identities of the individuals listed as employees on the reports were then used to file for unemployment insurance benefit claims. Upon filing an unemployment insurance claim, a debit card would be issued in the individual’s name and mailed to an address controlled by one of the conspirators. Upon receipt of the debit cards, the conspirators would and did make numerous cash withdrawals at ATMs.
The U.S. Department of Labor Office of Inspector General investigated the case. Special Assistant U.S. Attorney Dan Gividen and Assistant U.S. Attorney Aaron Wiley were in charge of the prosecution.
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Texas Man Sentenced for Operating Bitcoin Ponzi SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that TRENDON T. SHAVERS, a/k/a “pirateat40,” was sentenced today to 18 months in prison for one count of securities fraud stemming from his involvement in a Bitcoin-related Ponzi scheme. SHAVERS was the founder and operator of Bitcoin Savings and Trust (“BCS&T”), which offered and sold Bitcoin-based investments through the Internet. In total, SHAVERS fraudulently obtained approximately 146,000 Bitcoin in BCS&T investments, which amounted to approximately $807,380 based on the average price of Bitcoin over the duration of the scheme. SHAVERS pled guilty on September 21, 2015, to one count of securities fraud before U.S. Magistrate Judge Sarah Netburn. Today’s sentence was imposed by U.S. District Judge Lewis A. Kaplan.
U.S. Attorney Preet Bharara said: “Applying a modern spin to an age-old fraud, Trendon Shavers used a Bitcoin business to run a classic Ponzi scheme. Shavers raised money in the form of Bitcoins by promising spectacular returns and personal guarantees, when all he was really doing was paying back old investors with new investors’ Bitcoins. Thanks to the FBI and prosecutors in this Office, the first federal securities case involving Bitcoins has ended in Trendon Shavers being sentenced to prison.”
According to the Indictment, other public records, and statements made today in open court:
From at least in or about September 2011 up through and including in or about September 2012, SHAVERS operated a Ponzi scheme. Specifically, SHAVERS solicited investments in BCS&T on the “Bitcoin Forum” – a public, Internet-based forum where, among other things, Bitcoin[1] investment opportunities were posted. SHAVERS’s offer to investors was straightforward: investors who lent Bitcoin to BCS&T would be paid up to seven percent interest weekly – an annualized interest rate of 3,641% per year – and investors could withdraw their investments in BCS&T at any time. SHAVERS claimed that the Bitcoin invested by BCS&T investors would be used to support a Bitcoin market-arbitrage strategy, which included (i) lending Bitcoin to others for a fixed period of time; (ii) trading Bitcoin via online exchanges; and (iii) selling Bitcoin locally via private, off-market transactions – i.e., “over-the-counter transactions.” SHAVERS also personally guaranteed to cover any losses in the event of a market change. In truth, SHAVERS largely failed to execute the claimed market arbitrage strategy, failed to honor all of his investors’ redemption requests as well as his personal guarantee, and failed to deliver the agreed-upon rates of interest.
In the end, BCS&T was simply a Ponzi scheme through which SHAVERS used Bitcoin from new investors to make purported interest payments and cover investor withdrawals on outstanding BCS&T investments. In addition, SHAVERS diverted investors’ Bitcoin for day trading in his own account on a Bitcoin currency exchange, and exchanged investors’ Bitcoin for U.S. dollars to pay his personal expenses. At the peak of the scheme, SHAVERS raised, and had in his possession, about seven percent of all the Bitcoin that was in public circulation at the time. In the end, at least 48 of approximately 100 investors lost all or part of their investment in BCS&T.
* * *
SHAVERS, 33, was sentenced to 18 months in prison, 3 years of supervised release, and a $100 special assessment. In addition to the prison sentence, Judge Kaplan ordered SHAVERS to pay $1,228,660.93 in forfeiture, and $1,228,660.93 in restitution.
On September 18, 2014, in a separate civil action, the United States District Court for the Eastern District of Texas entered final judgment against both SHAVERS and BCS&T, and ordered SHAVERS to pay more than $40 million in disgorgement and prejudgment interest, and a civil penalty of $150,000 related to BCS&T.
Mr. Bharara praised the work of the Federal Bureau of Investigation, and thanked the SEC for its invaluable assistance.
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 www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Daniel S. Goldman and Michael Ferrara are in charge of the prosecution.
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[1] Bitcoin are a decentralized form of electronic currency, existing entirely on the Internet and not in any physical form. The currency is not issued by any government, bank, or company, but rather is generated and controlled automatically through computer software operating on a “peer-to-peer” network. Bitcoin transactions are processed collectively by the software-enabled computers composing the network.
Securities Fraud Related to Biodiesel Fraud Scheme Convicted in Jury TrialRead the Press Release
U.S. Attorney Josh J. Minkler for the Southern District of Indiana announced today the guilty verdict after an eight-day jury trial of Jeffrey Wilson of Evansville, Indiana, who was charged with securities fraud related to a massive multi-state fraud scheme. Wilson’s crimes centered on the e-biofuels biodiesel business in Middletown, Indiana, which was a wholly-owned subsidiary of Imperial Petroleum. Wilson, the Chief Executive Officer (CEO) and President of Imperial Petroleum, was convicted in federal court before U.S. District Judge Sarah Evans Barker for the Southern District of Indiana Wednesday night for securities fraud, filing false reports with the Securities and Exchange Commission (SEC), falsely certifying reports to the SEC, lying to the company’s outside auditor and lying to federal investigators.
“Wilson’s conviction represents the end of the line for a group of fraudsters in Indiana, New Jersey and Oregon who bent and twisted programs designed to increase America’s energy independence to line their own pockets,” said U.S. Attorney Minkler. “Wilson, as the CEO of a publicly-traded company, was obligated to tell the truth the moment he knew about fraud, instead he presented any cover up story he could to keep things going and drive up share price, while giving himself extra stock and writing himself checks from the Imperial’s coffers.”
The verdict in the securities fraud was directly related to wire fraud crimes committed by Craig Ducey, Chad Ducey of Fishers, Indiana, and Chris Ducey of North Webster, Indiana; Joseph Furando and Katirina Tracy of Park Ridge, New Jersey; and Brian Carmichael of Bend, Oregon. The Ducey brothers, Furando, Tracy and Carmichael were charged with conspiracy to commit wire fraud, tax fraud, false statements to the Environmental Protection Agency (EPA) and other crimes in a separate indictment in September 2013. They all pleaded guilty prior to Wilson’s trial: Carmichael in September 2013, Tracy in July 2014, Furando in April 2015 and the Ducey brothers in April 2015.
The companies CIMA Green, Caravan and e-biofuels have all pleaded guilty as well. Carmichael is serving a five year prison sentence for his role in the fraud. Chris Ducey has begun a six year sentence. And Joseph Furando, the leader of the New Jersey part of the conspiracy, has been sentenced to twenty years imprisonment. The other defendants have yet to be sentenced.
The underlying fraud involved Furando and Tracy purchasing biodiesel through their New Jersey companies CIMA Green and Caravan Trading. The conspirators knew that this biodiesel had already been used to claim tax credits and an EPA credit associated with renewable fuel, known as a “renewable identification number” (RIN). Furando and Tracy would sell this biodiesel to Carmichael and the Ducey brothers, who used the e-biofuels facility in Middletown, Indiana, to pretend to manufacture what they had bought and then illegally reassigned the tax credit and the RIN. On average, the conspirators added in excess of $1.60 per gallon for doing nothing to the biodiesel other than move it around.
All told, the underlying fraud involved more than $140 million in revenue and $56 million in criminal profits. The securities fraud case tried over the last eight days involved over $20 million in loss to investors and a $25 million attempted fraud that was foiled by a due diligence team inspecting the e-biofuels facility.
Wilson’s conviction yesterday is the final chapter in the investigation and prosecution of this complex fraud. Wilson’s crimes began in November 2010. On May 24, 2010, Imperial Petroleum bought e-biofuels. Soon thereafter, if not before the acquisition, he learned that the facility was not making biodiesel as outsiders were told, but bought biodiesel from Caravan and CIMA Green. Nevertheless, Wilson filed an Imperial Petroleum annual report with the SEC on Nov. 15, 2010, that presented the e biofuels manufacturing cover story in describing Imperial’s new acquisition. From then on, Wilson consistently presented false information about e-biofuels to the public, to investors, to auditors and investigators. He was convicted of counts related to relate to all of these lies.
“Yesterday's jury verdict convicting Imperial Petroleum's former CEO, Jeffrey Wilson, of multiple violations of the federal securities laws shows that executives who illegally hide material information from shareholders, like Wilson did, will be held accountable for their actions,” said Associate Regional Director Robert Burson of SEC’s Chicago Office. “The cooperation among federal agencies that led to yesterday's verdict shows that the SEC will work with its federal partners to protect investors, maintain fair, orderly and efficient markets, and facilitate capital formation.”
“Identifying and eliminating fraud is key to ensuring a level playing field for biofuels companies that play by the rules,” said Special Agent in Charge Jeffrey Martinez of EPA’s Criminal Enforcement Program in Indiana. “Yesterday’s verdict shows that the EPA will stand by its federal law enforcement partners to ensure that those who blatantly ignore the law will be held to account.”
“IRS Criminal Investigation will continue to work with its law enforcement partners to investigate corporate officers who misuse their positions of trust and hold them accountable,” said Special Agent in Charge James Robnett for IRS-Criminal Investigation. “We will continue to protect American taxpayers and our economy by vigorously pursuing individuals who prey upon the integrity of our great country.”
“The guilty verdict of CEO Jeff Wilson was the culmination of the largest tax and securities fraud scheme in Indiana history,” said Special Agent in Charge W. Jay Abbott of the Indiana FBI. “The investigation uncovered significant fraudulent activity which included conspiracy, wire fraud, false tax claims, false statements under the Clean Air Act, obstruction of justice, money laundering and securities fraud. This was a collaborative investigation, led by the FBI. Partner agencies included EPA’s Criminal Investigation Division, IRS-Criminal Investigation, the Securities and Exchange Commission, U.S. Department of Agriculture and Indiana Department of Environmental Management
These cases were prosecuted by Senior Litigation Counsel Steven D. DeBrota of the U.S. Attorney’s Office, along with Senior Counsel Thomas Ballantine of the Environmental Crimes Section in the Department of Justice’s Environment and Natural Resources Division and Jake Schmidt, a Special Assistant U.S. Attorney at the U.S. Attorney’s Office and Senior Attorney for the Securities and Exchange Commission. Also providing valuable assistance were the EPA’s Criminal Investigation Division, the Federal Bureau of Investigation, the IRS-Criminal Investigation Division and Scott Hlavacek, an accountant with the Securities and Exchange Commission.
Second Man Sentenced for Tying Rope Around Neck of James Meredith Statue on Ole Miss CampusRead the Press Release
OXFORD, Miss. - United States Attorney Felicia C. Adams and Special Agent in Charge Donald Alway, FBI, announce that Austin Reed Edenfield, of Kennesaw, Georgia, was sentenced today to twelve months probation and ordered to complete fifty hours of uncompensated community service for tying a rope and Confederate flag around the neck of the James Meredith Statue at the University of Mississippi.
Edenfield pled guilty to one count of using a threat of force to intimidate African-American students and employees because of their race or color on March 24, 2016. He was charged by Information shortly before pleading guilty. Another defendant, Graeme Phillip Harris, pled guilty to the same charge in June 2015 and was sentenced to six months in prison.
“The U.S. Attorney’s Office, in conjunction with the Department of Justice Civil Rights Division, will aggressively prosecute hate crimes and other civil rights violations which occur in our district. I seriously appreciate the assistance of the FBI and the University of Mississippi in the investigation and prosecution of this case”, said U.S. Attorney Adams.
"The FBI remains dedicated to protecting the cherished freedoms of all Americans and, as in this case, we will vigorously investigate allegations of crimes motivated by hate,” said Special Agent in Charge Alway.
Edenfield and Harris acknowledged that they used the cover of darkness to tie the rope and an outdated version of the Georgia state flag – which prominently depicts the Confederate battle flag – around the neck of the statue in the early morning hours of Feb. 16, 2014. The statue honors Meredith’s role as the university’s first African-American student after its contentious 1962 integration. At the time of the incident, both men were students at the university.Edenfield admitted as part of his plea that the appearance of the rope and flag display would be threatening and intimidating to African-American students.
This case was investigated by the FBI’s Jackson Division’s Oxford Resident Agency and the University of Mississippi Police Department. The case is being prosecuted by the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office of the Northern District of Mississippi.
Sacramento Man Indicted for Transmitting Online Threats to Blizzard Entertainment, a Video-Game CompanyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Stephen Cebula, 28, of Sacramento, charging him with making threats to injure employees of the video-game company Blizzard Entertainment Inc., Acting United States Attorney Phillip A. Talbert announced.
According to court documents, between July 2, 2016, and July 3, 2016, Cebula transmitted messages over the internet to Blizzard Entertainment, in which he stated that he “may or may not pay [Blizzard] a visit with an AK47 amongst some other ‘fun’ tools,” and “might be inclined to ‘cause a disturbance’ at [Blizzard’s] headquarters in California with an AK47 and a few other ‘opportunistic tools.’” Cebula was arrested on July 12, 2016, and is in custody. He is scheduled to be arraigned July 26, 2016.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Heiko P. Coppola and Owen Roth are prosecuting the case.
If convicted, Cebula faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Russian Agent Sentenced to 10 Years for Acting as Unregistered Russian Government Agent and Leading Scheme to Illegally Export Controlled Technology to Russian MilitaryRead the Press Release
Alexander Fishenko, a dual citizen of the United States and Russia, was sentenced today to 10 years in prison and ordered to forfeit more than $500,000 in criminal proceeds following his guilty plea on Sept. 9, 2015 to a 19-count indictment. Fishenko pleaded guilty to acting as an agent of the Russian government within the United States without prior notification to the Attorney General, conspiring to export and illegally exporting controlled microelectronics to Russia, conspiring to launder money and obstruction of justice.
The sentence was announced by Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Robert L. Capers of the Eastern District of New York.
Fishenko, 10 other individuals and two corporations – ARC Electronics Inc. (ARC) and Apex System LLC (Apex) – were indicted in October 2012. Five defendants previously pleaded guilty, three individuals were convicted in October 2015 after trial and three individuals remain at large. ARC is now defunct and Apex, a Russian-based procurement firm, failed to appear in court.
“Alexander Fishenko illegally shipped millions of dollars of high-technology products to Russian military affiliated actors in clear violation of United States law,” said Assistant Attorney General Carlin. “Export laws exist as an important part of our national security framework and protecting national assets from ending up in the hands of our potential adversaries is one of our highest priorities.”
“U.S. export laws exist to check the proliferation overseas of dangerous military technologies but Fishenko, while working illegally as an agent of the Russian government, flouted these laws in order to line his pockets,” stated U.S. Attorney Capers. “Today’s sentence sends a powerful message of deterrence to others, who like Fishenko and his co-conspirators, would be willing to sacrifice the national security of the United States for their personal financial gain.”
In 1998, Fishenko founded ARC and also served as an executive of Apex. Between approximately October 2008 and October 2012, Fishenko led a conspiracy to obtain advanced, technologically cutting-edge microelectronics from manufacturers and suppliers located within the United States and to export those high-tech goods to in Russia while evading the government licensing system set up to control such exports. These commodities have applications and are frequently used in a wide range of military systems, including radar and surveillance systems, missile guidance systems and detonation triggers. Russia does not domestically produce many of these sophisticated goods. Between 2002 and 2012, ARC shipped approximately $50 million worth of microelectronics and other technologies to Russia. ARC’s largest clients – including Apex subsidiaries – were certified suppliers of military equipment for the Russian Ministry of Defense.
To induce manufacturers and suppliers to sell these high-tech goods to ARC and to evade applicable export controls, Fishenko and his co-conspirators provided false end-user information in connection with the purchase of the goods, concealed the fact that they were exporters and falsely classified the exported goods on export records submitted to the Department of Commerce.
Ultimate recipients of ARC’s products included a research unit for the Russian FSB internal security agency, a Russian entity that builds air and missile defense systems and another that produces electronic warfare systems for the Russian Ministry of Defense.
Today’s sentencing took place before Senior U.S. District Judge Sterling Johnson Jr. of the Eastern District of New York.
Assistant Attorney General Carlin joined U.S. Attorney Capers in extending his grateful appreciation to the FBI’s Houston Field Office and the Department of Commerce for their leading roles in the investigation.
The government’s case is being handled by the U.S. Attorney’s Office’s National Security & Cybercrime Section. The case is being prosecuted by Assistant U.S. Attorneys Richard M. Tucker and Una A. Dean of the Eastern District of New York and Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section. Assistant U.S. Attorney Claire Kedeshian of the Eastern District of New York is handling the forfeiture aspects of the case.
Russian Agent Sentenced to 10 Years for Acting as an Unregistered Agent of the Russian Government and Leading Scheme to Illegally Export Controlled Technology to the Russian MilitaryRead the Press Release
Earlier today, Alexander Fishenko, a dual citizen of the United States and Russia, was sentenced to 120 months’ imprisonment and ordered to forfeit more than $500,000 in criminal proceeds following his guilty plea on September 9, 2015 to a nineteen-count indictment. Fishenko was charged with acting as an agent of the Russian government within the United States without prior notification to the Attorney General, conspiring to export, and illegally exporting, controlled microelectronics to Russia, conspiring to launder money, and obstruction of justice.
Fishenko, ten other individuals, and two corporations – ARC Electronics, Inc. (ARC) and Apex System, L.L.C. (Apex) – were indicted in October 2012. Five individual defendants previously pleaded guilty, three individuals were convicted in October 2015 after trial, and three remain at large. ARC is now defunct, and Apex, a Russian-based procurement firm, failed to appear in court.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and John P. Carlin, Assistant Attorney General for National Security.
“U.S. export laws exist to check the proliferation overseas of dangerous military technologies, but Fishenko, while working illegally as an agent of the Russian government, flouted these laws in order to line his pockets,” stated United States Attorney Capers. “Today’s sentence sends a powerful message of deterrence to others, who like Fishenko and his co-conspirators, would be willing to sacrifice the national security of the United States for their personal financial gain.” Mr. Capers extended his grateful appreciation to the Federal Bureau of Investigation, Houston Field Office and the Department of Commerce for their leading roles in the investigation.
“Alexander Fishenko illegally shipped millions of dollars of high-technology products to Russian military affiliated actors in clear violation of United States law,” said Assistant Attorney General Carlin. “Export laws exist as an important part of our national security framework and protecting national assets from ending up in the hands of our potential adversaries is one of our highest priorities.”
In 1998, Fishenko founded ARC, and he also served as an executive of Apex. Between approximately October 2008 and October 2012, Fishenko led the conspiracy to obtain advanced, technologically cutting-edge microelectronics from manufacturers and suppliers located within the United States and to export those high-tech goods to in Russia, while evading the government licensing system set up to control such exports. These commodities have applications and are frequently used in a wide range of military systems, including radar and surveillance systems, missile guidance systems, and detonation triggers. Russia does not produce many of these sophisticated goods domestically. Between 2002 and 2012, ARC shipped approximately $50,000,000 worth of microelectronics and other technologies to Russia. ARC’s largest clients – including Apex subsidiaries – were certified suppliers of military equipment for the Russian Ministry of Defense.
To induce manufacturers and suppliers to sell these high-tech goods to ARC, and to evade applicable export controls, Fishenko and his co-conspirators provided false end user information in connection with the purchase of the goods, concealed the fact that they were exporters, and falsely classified the goods they exported on export records submitted to the Department of Commerce.
Ultimate recipients of ARC’s products included a research unit for the Russian FSB internal security agency, a Russian entity that builds air and missile defense systems and another that produces electronic warfare systems for the Russian Ministry of Defense.
Today’s sentencing took place before United States District Senior Judge Sterling Johnson, Jr.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Richard M. Tucker and Una A. Dean, as well as Trial Attorney David Recker from the Department of Justice’s Counterintelligence and Export Control Section, are in charge of the prosecution. Assistant United States Attorney Claire Kedeshian is handling the forfeiture aspects of the case.
The Defendant:
ALEXANDER FISHENKO
Age: 50
Houston, TexasE.D.N.Y. Docket No. 12 CR 626 (SJ)
Reading Man Charged with Production of Child PornographyRead the Press Release
Sean Fager, 51, of Reading, PA, was charged today by Indictment1 with two counts of production of child pornography, one count of transportation of child pornography, and two counts of possession of child pornography, announced United States Attorney Zane David Memeger.
If convicted, the defendants face a mandatory minimum sentence of fifteen years’ imprisonment and a maximum sentence of thirty years’ imprisonment on each of counts one and two, a mandatory minimum sentence of five years’ imprisonment and a maximum sentence of twenty years imprisonment on count three, a maximum sentence of 20 years’ imprisonment on each of counts four and five, a $1,250,000 fine, a mandatory minimum period of five years up to lifetime period of supervised release, and a $500 special assessment.
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
The case was investigated by the Federal Bureau of Investigation, the Berks County Detectives, with assistance from the Berks County District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Michelle L. Morgan.
[1] An Information, Indictment or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Raytown, KC Men Indicted for Bankruptcy FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Raytown, Mo., man and a Kansas City, Mo., man have been indicted by a federal grand jury for engaging in a bankruptcy fraud scheme in order to prevent dozens of rental properties from being sold by the county for failure to pay property taxes.
Kenneth Mabrie, 66, of Raytown, and Curtis Jones, 53, of Kansas City, were charged in a five-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, July 20, 2016. That indictment was unsealed and made public today upon the arrests and initial court appearances of Mabrie and Jones.
According to the indictment, Mabrie and Jones failed to pay Jackson County property taxes on approximately 37 rental properties they owned in Kansas City, Mo. They filed for bankruptcy protection on the day of, or a few days before the properties were scheduled to be sold by the county at auction, the indictment says, which prevented the sale. Their bankruptcy petitions were dismissed shortly thereafter. The total delinquent county property tax due and owing by Mabrie and Jones on the properties listed in the bankruptcy petitions was $173,640.
The indictment charges Mabrie with one count of bankruptcy fraud and charges Mabrie and Jones together in five additional counts of bankruptcy fraud.
Mabrie failed to pay Jackson County property taxes on at least 23 rental properties he owned in Kansas City from 2006 through 2013, the indictment says. The properties would go into foreclosure and be scheduled to be sold by the county via auction, a process that takes four years.
Mabrie filed a bankruptcy petition in 2011 listing eight tax delinquent properties, five days prior to the auction sale. The bankruptcy petition prevented the sale of the properties by Jackson County. Shortly thereafter, the indictment says, the bankruptcy petition was dismissed for failure to file necessary information.
Jones filed a bankruptcy petition in 2012 listing 31 tax delinquent properties, five days prior to the auction sale. Seventeen of the properties were deeded from Mabrie one day prior to the bankruptcy filing. Seven of the properties were included in the petition filed by Mabrie in 2011. Two other properties were actually owned by Holman Investments, LLC, a Mabrie business, at the time of the filing. The bankruptcy petition prevented the sale of the properties by Jackson County. Shortly thereafter, the bankruptcy petition was dismissed for failure to file necessary information.
Jones filed a bankruptcy petition in 2013 listing 29 tax delinquent properties, on the same day as the auction sale. Two of the properties were deeded from Mabrie on the same day as the bankruptcy filing. Twenty-six of the properties had been included in the 2012 petition. The bankruptcy petition prevented the sale of the properties by Jackson County. Shortly thereafter, the bankruptcy petition was dismissed for failure to file necessary information.
Following the filing of the bankruptcy petitions, Mabrie continued to collect rent on the rental properties. Mabrie also continued to receive Housing Assistance Payments totaling $18,722 through the Housing Choice Voucher Program (HCVP), commonly referred to as “Section 8” tenants. This program is funded by the U.S. Department of Housing and Urban Development and administered by the Housing Authority of Kansas City, Mo.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI and the U.S. Department of Housing and Urban Development – Office of Inspector General.
Philadelphia Man Gets over 11 Years in Prison for Conspiracy to Traffic Firearms from Philadelphia to Camden, New JerseyRead the Press Release
CAMDEN, N.J. – A Philadelphia man was sentenced today to 135 months in prison for his role in a conspiracy to obtain firearms from Philadelphia-area licensed dealers and resell them in New Jersey for a profit, U.S. Attorney Paul J. Fishman announced.
Michael Wayne Lee, 35, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with one count of conspiring to deal firearms without a license and one count of possession of a firearm by a previously convicted felon. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Between June 30, 2012, and July 19, 2012, Rosselyn M. DeJesus, 29, of Philadelphia, bought five pistols from Philadelphia-area gun shops, which she then transferred for resale to Lee. Lee, a previously convicted felon, resold them. Two of the five weapons were sold by a third individual, Ammie Steward, 41, of Pennsauken, New Jersey, to a witness cooperating with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). These two weapons are now in the custody of law enforcement.
Also in connection with this investigation, on May 5, 2014, ATF agents arrested Wendelle L. Ford, 43, of Camden. Ford was charged with conspiracy to deal firearms without a license.
From January 2012 through July 2012, Ford obtained firearms from different sources, who purchased them in gun shops in Philadelphia and pawn shops in North Carolina. Ford then resold the firearms, including at least two firearms to Steward, who in turn sold the weapons to an ATF informant. In total, Ford dealt 15 firearms without a license.
In addition to the prison term, Judge Bumb sentenced Lee to three years of supervised release.
DeJesus previously pleaded guilty to conspiracy to deal firearms without a license and was sentenced to one year in prison on Oct. 20, 2015. Steward previously pleaded guilty to dealing firearms without a license and possessing a firearm as a previously convicted felon. He is scheduled to be sentenced Sept. 23, 2016.
The charges and allegations contained in the complaint against Ford are merely accusations, and he is considered innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge George P. Belsky, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office in Camden.
Defense counsel: Stanley King Esq., Woodbury, New Jersey
Pasco Man Sentenced to Life Imprisonment following Jury Conviction for Murder in Connection with a Drug Trafficking CrimeRead the Press Release
Spokane -- Michael C. Ormsby, the United States Attorney for the Eastern District of Washington announced that Domingo Valdovinos (a.k.a. Junior), age 28, of Pasco, Washington, was sentenced to a life term in federal prison after a jury found him guilty of murder in connection with a drug-trafficking conspiracy. Senior United States District Judge W. Fremming Nielsen also imposed two 30-year terms of imprisonment for Valdovinos’s convictions for methamphetamine-trafficking offenses.
According to the information disclosed during court proceedings, during the late evening hours of February 28, 2014, the victim identified by the initials D. W. was lured to a residence on Knox Street in Spokane, Washington, under the guise of resolving a drug debt. Upon arriving at the residence, D. W. was beaten with baseball bats, tied up, and driven to a remote location in Stevens County. At that location Valdovinos and his uncle, Benito Baldovinos, doused D. W. with gasoline, shot him multiple times, then set D. W.’s body on fire. The investigation was initially conducted by the Spokane Police Department, Idaho State Police, Stevens County Sheriff’s Department and Pasco Police Department. After discovering the murder was connected to a methamphetamine-trafficking organization with ties to the Eastern District of Washington, Mexico, North Dakota and Idaho, the Spokane-based DEA and United States Attorney’s Office became involved.
At sentencing, Senior Judge Nielsen found that Valdovinos was the leader and organizer of the methamphetamine-trafficking conspiracy. Senior Judge Nielsen further recounted the heinous nature of the murder. The Judge specifically noted that the amount of drugs trafficked by Valdovinos’ organization was one of the largest he had seen in over twenty years on the Federal bench. He noted both Valdovinos’ leadership of the organization, which was responsible for upwards of 50 pounds per month of methamphetamine transported into this area, and orchestration of the murder of D.W.
Co-conspirators Benito Baldovinos, Joseph Gillespie, and Dillon Casteel, plead guilty to their involvement in the murder of D. W. Co-coconspirators Christopher Teuscher and Jorge Mednoza Sanchez, who were not implicated in the murder, plead guilty to their involvement in the methamphetamine-trafficking conspiracy.
Michael C. Ormsby said, “This case presented a perfect example of the dangers involved in the trafficking of illegal drugs. Not only did the members of this criminal organization distribute a stunning amount of drugs, but they resorted to a very violent murder as part of their operation.” USA Ormsby went on to state, “This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes. I commend the federal, county, and local law enforcement agencies for their hard work and thorough investigation in this matter. Each individual involved made significant contributions to the successful investigation and prosecution of this case.”
This OCDETF investigation was conducted by the Drug Enforcement Administration (Spokane and Seattle Divisions), the Spokane Regional Drug Task Force, the Idaho State Police and the Spokane Police Department. The case was prosecuted by Stephanie A. Van Marter and Russell E. Smoot, Assistant United States Attorneys for the Eastern District of Washington.
Pakastani Man Arrested for Making False Statements Regarding Assault Rifle AccessoriesRead 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 Agha Muhammad Khan Durrani, 27, of Pakistan, was arrested and charged by criminal complaint with making false statements during an attempt to unlawfully export merchandise consisting of weapons parts. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
“As this case demonstrates, our nation’s borders must continue to be guarded against a wide variety of threats, including that posed by international arms traffickers,” said U.S. Attorney Hochul. “Border authorities from both the United States and Canada should be commended for their diligence in capturing this particular defendant.”
“Preventing the exportation of weapon parts is a crucial part of CBP’s mission and protecting our borders,” said Acting Director Rose Hilmey of Customs and Border Protection’s Buffalo Field Office. “Our close working relationship with both HSI and the U.S. Attorney’s office ensured that this discovery was pursued and the person will face criminal charges. I’m extremely proud of the dedication our officers display each and every day, ensuring our nation is safe and protecting the public.”
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the complaint, on July 19, 2016, the defendant and his father were escorted by the Canada Border Services Agency (CBSA) to Customs and Border Protection (CBP) officers at the Rainbow Bridge. Durrani told a CBP officer that he and his father were going to Cabela’s Sporting Goods in Cheektowaga, NY to return assault rifle accessories and a scope purchased on July 18, 2016. The defendant attempted to bring the items into Canada.
The items specifically consisted of:
• Assault rifle rail systems
• Assault rifle grips
• Assault rifle mounting system
• Assault rifle buffer system
• Assault rifle stocks
• Assault rifle hand guards
• Assault rifle back up lightsAccording to the complaint, such items are included on the United States Munitions List and require a license to export which Durrani did not have.
During a secondary inspection, the defendant told a CBP officer he wanted to bring the assault rifle accessories back to Pakistan to be used for hunting and defending his family’s property and land.
Subsequent investigation determined that Durrani’s cellular telephone included photographs of multiple variants of assault rifles and hand guns and rifle components and accessories. There was also a photograph of a Nightforce BEAST 5-25x56mm F1 Riflescope on Amazon.com with the message “This item does not ship to Canada. Please check other sellers who may ship internationally.”
A check of the defendant’s email showed a series of messages with another individual dated July 14, 2016. This email chain showed that Durrani had a shipment of similar weapons accessories ready to be picked up in Thailand with a value of $10,800. In the email the defendant responded that he was currently in Canada and that he would have to pick his shipment up at a later date and time.
The complaint further states that while Durrani initially told CBP officers the weapon parts would only be used for personal use, the defendant later admitted that he sells guns, gun parts, ammo, and accessories in Pakistan through a business that he owns there.
The defendant made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder and was ordered detained.
The complaint is the culmination of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and Customs and Border Protection, under the direction of Acting Director of Field Operations Rose Hilmey.
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.
Owner of Juvenile Mental Health Facilities Convicted in Bribery SchemeRead the Press Release
The owner of two Arkansas mental health companies that provide inpatient and outpatient mental health services to juveniles was found guilty yesterday of engaging in a scheme to bribe a former deputy director of the Arkansas Department of Human Services (ADHS), announced Assistant Attorney General Leslie R. Caldwell of the Department of Justice’s Criminal Division.
Theodore E. Suhl, 50, of Warm Springs, Arkansas, was convicted by a federal jury of two counts of honest services fraud, one count of federal funds bribery and one count of interstate travel in aid of bribery.
The evidence presented at trial showed that Suhl bribed former deputy director of ADHS, Steven B. Jones, using intermediaries Phillip W. Carter and a local pastor. Trial evidence demonstrated that beginning in approximately April 2007, Suhl, Jones and Carter periodically met at restaurants in Memphis, Tennessee, or in rural Arkansas in order for Suhl to request assistance for his companies from Jones in his capacity as deputy director of ADHS. Jones agreed to perform official acts that benefitted Suhl and Suhl’s businesses and provided internal ADHS information to Suhl, according to evidence presented at trial. The trial evidence also showed that, in exchange for Jones’s agreement to perform official acts, Suhl paid Jones by funneling cash payments through the pastor’s church and providing the bribe payments to Jones in cash so that the transactions would not be easily traceable.
Jones pleaded guilty to federal funds bribery and conspiracy for his involvement in the scheme and was sentenced to 30 months in prison. Carter pleaded guilty to conspiracy to commit federal funds bribery and honest services wire fraud and was sentenced to 24 months in prison.
The FBI’s Little Rock Field Office investigated the case. Trial Attorneys Lauren Bell, John D. Keller and Amanda R. Vaughn of the Criminal Division’s Public Integrity Section are prosecuting the case.
Oregon Man Sentenced to Prison for Hacking into Hundreds of E-Mail Accounts and Stealing Personal Photos Belonging to VictimsRead the Press Release
LOS ANGELES – An Oregon man was sentenced today to six months in federal prison for a computer hacking scheme that gave him illegal access to 363 Apple and Google e-mail accounts, including those belonging to members of the entertainment industry in Los Angeles.
Andrew Helton, 29, of Portland, Oregon, was sentenced today by United States District Judge John A. Kronstadt, who also ordered the defendant to pay a $3,000 fine.
Helton pleaded guilty in February to one count of unauthorized access to a protected computer to obtain information. He admitted that he ran a phishing scheme from March 2011 to May 2013 in which he was able to collect approximately 448 usernames and passwords for 363 e-mail accounts.
“For over two years, Helton targeted unsuspecting victims with phishing e-mails that gave him full access to their private e-mail accounts,” said United States Attorney Eileen M. Decker. “He systematically searched for and stole intimate images and stored them in his own computer for personal use, which meant the victims continued to suffer as a result of his voyeurism. Helton's crime was a deep invasion of privacy that caused real harm."
In the scheme, Helton sent fraudulent e-mails that resembled legitimate e-mails from Apple or Google to hundreds of victims asking them to “verify” their accounts. Helton sent the phishing e-mails to acquaintances, strangers, and celebrities living in the Los Angeles area. When victims clicked on the link provided, they were taken to bogus websites resembling Apple or Google log-in pages, where they were prompted to enter their usernames and passwords. After that, Helton had full access to their accounts.
After gaining access to the victims’ accounts, Helton scoured their e-mails and found 161 sexually explicit, nude and/or partially nude images of approximately 13 victims, which included some celebrities. Helton saved these images to his personal computer.
“Whether a victim of cyber intrusion is a celebrity or not, the lasting distress resulting from the privacy violation is the same,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI reminds users of computers and personal devices to report suspicious activity to ic3.gov and to protect their private information by verifying the authenticity of websites before providing personal data online.”
Helton was ordered to begin serving his prison sentence by October 11.
The case against Helton is the product of an investigation by the Federal Bureau of Investigation.
The case is being prosecuted by Assistant United States Attorney Stephanie S. Christensen of the Cyber and Intellectual Property Crimes Section.
Operator of Chinatown Game Rooms Sentenced to 37 Months ImprisonmentRead the Press Release
HONOLULU - Senior United States District Court Judge Susan Oki Mollway sentenced Delvin Phuong Pham, a.k.a. "Kevin Pham," age 49, to 37 months in prison yesterday for operating illegal gambling businesses and conspiring to bribe an agent of an organization receiving federal funds. Pham’s sentence also included forfeiture of over $96,000, personal property and 14 illegal gambling machines. Pham plead guilty as charged on March 8, 2016.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that information produced to the court reflected that Pham was operating numerous illegal game rooms in the Chinatown and Kalihi neighborhoods which allowed patrons to illegally gamble through the use of slot machines, "fish" video game machines and Bacarrat card tables. According to records and information obtained during the investigation, Pham received proceeds of between $10,000 to $28,000 per week from his illegal gambling operations. In addition, Pham initiated contact and through four transactions paid over $7,200 in bribes to an HPD officer pretending to be willing to accept the money for the protection of Pham’s illegal gambling operations from law enforcement actions and for the return of illegal gambling machines previously seized during the execution of search warrants.
This case was investigated by an extensive Organized Crime Drug Enforcement Task Force investigation using a network of confidential informants and undercover police officers overseen by Homeland Security Investigations, the Internal Revenue Service and the Honolulu Police Department. Assistant United States Attorney Chris A. Thomas prosecuted the case.
Ohio Man Pleads Guilty to Federal Charge of Transporting a Minor to Engage in Illegal Sexual ActivityRead the Press Release
Baltimore, Maryland –Michael L. Fischer, age 42, of Toledo, Ohio, pleaded guilty today to the federal charge of transportation of a minor with intent to engage in criminal sexual activity. Fisher admitted that he transported a girl from Maryland to Ohio to engage in sexual activity.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation - Baltimore; Special Agent in Charge Stephen D. Anthony of the Federal Bureau of Investigation – Cleveland, Ohio; Commissioner Kevin Davis of the Baltimore Police Department; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, in the summer of 2014, Fischer and the victim met online and communicated using chat rooms, social media, and telephone during the summer and fall of 2014. The victim told Fischer that she was 15 years old from their earliest communications, and prior to Fischer meeting the victim in person. In August and early September 2014, Fischer travelled from Ohio to Maryland and engaged in sexual activity with the girl. On September 19, 2014, Fisher and his wife travelled from Ohio to Maryland and picked the girl up near her home in the early morning of September 20, 2014. Fischer and his wife then transported the girl to Fischer’s home in Toledo. At the time, Fisher’s wife was not aware that Fisher had been engaging in sexual conduct with the victim. Between September 20 and 26, 2014, Fischer engaged in sexual conduct with the victim in Ohio.
On September 23, 2014, the Fischers were contacted by law enforcement regarding the victim’s whereabouts. According to his plea agreement, prior to meeting with law enforcement, the Fischers dropped the victim off at a store in Toledo. Fischer lied to law enforcement officers that he did not know where the victim was and suggested to law enforcement that he believed she may be in Florida. After the meeting, Fischer transported the victim from Ohio to Brighton, Michigan, and left the victim with one of his relatives. She was recovered by law enforcement officers two days later.
Fischer and the government have agreed that if the Court accepts the plea agreement Fischer will be sentenced to between 84 and 151 months in prison, followed by between 10 and 20 years of supervised release. U.S. District Judge Ellen L. Hollander has scheduled sentencing for October 20, 2016 at 10:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the “resources” tab on the left of the page.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children.
United States Attorney Rod J. Rosenstein commended the FBI Baltimore, Cleveland, Ohio and Detroit, Michigan Field Offices, the Baltimore Police Department, Maryland State Police, and the Toledo Child Exploitation Task Force for their work in the investigation, and thanked the Brighton, Michigan Police Department, the Livonia, Michigan Police Department and the Michigan State Police for their assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Zachary A. Myers and Ayn B. Ducao, who are prosecuting the case.
Northport Man Sentenced for Possessing Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Wesley A. Roberts, 64, formerly of Northport, Nebraska, was sentenced today in Lincoln, Nebraska, to 2 years in prison by United States District Judge John M. Gerrard, for possession of child pornography. After release from prison, Roberts will also serve a term of 5 years on supervised release and be required to register as a sex offender.
Roberts came to the attention of the Nebraska State Patrol based on an investigation initially conducted by the Durango Police Department in Colorado. On December 18, 2013, an officer of the Durango Police Department received a cell phone from a concerned citizen who had stated she had been receiving harassing text messages on her phone. She indicated that the text messages contained possible child pornography and the police department took the phone with the citizen's permission. The phone was reviewed by law enforcement officers of the Durango Police Department and it was determined that text messages had been sent with attachments containing child pornography.
Based on this information, an undercover operation was devised by the Durango Police Department in order to see if the individual sending the text messages and child pornography would continue to send them to an undercover officer, which he did.
In January of 2014, Roberts was contacted by investigators with the Nebraska State Patrol. During an interview with investigators, Roberts stated that when he received pictures of child pornography, he would send those images to other individuals to look at. Roberts allowed an investigator to look at his phone and two different text messages that contained images of child pornography were located.
In all, investigators found 66 images of child pornography on the phone.
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.
New Port Richey Man to Pay over $50,000 for Failing to Disclose Employment While Collecting Federal Unemployment BenefitsRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Kenneth Joseph Skelly (64, New Port Richey) will pay $52,608.86 to settle allegations that he failed to disclose his employment by, and participation in, a business while he was collecting federal workers’ compensation benefits.
The Federal Employees’ Compensation Act (FECA) is the workers’ compensation program for federal employees. Like many workers’ compensation programs, FECA pays disability, survivors, and medical benefits, without fault, to employees who are injured or become ill in the course of their federal employment and to the survivors of employees killed on the job. Federal workers who receive such benefits are required to file reports every 15 months disclosing, among other things, whether they have been employed, have had any involvement in the operations of a business, or done any volunteer work. This information allows the Government to determine whether it is appropriate to adjust the amount of compensation being paid.
Skelly was employed by the National Aeronautics and Space Administration (NASA) as a safety engineer when he suffered an injury during his employment. Since December 1989, and continuing today, Skelly has received compensation for total disability. During the last decade, he engaged in various activities that he did not disclose on his regular reports, including: starting and helping to run a business that sold safety information to first responders; playing in a band that was paid for its performances; and recording and offering the band’s music for sale. Many of these endeavors netted little income, but all were required to be disclosed on his regular reports.
The most egregious omission was work that Skelly and his company performed between early 2005 and early 2006, after hurricanes hit the Gulf Coast area. For example, Skelly worked nearly four months in New Orleans following Hurricane Katrina. He contended that all of his work was on a volunteer basis for which he received no reimbursement, however, he regularly filled out time cards and submitted expenses. Further, the monies that his company was paid for his work went into a bank account linked to a debit card that he used for personal and other expenses, thus effectively drawing a paycheck.
Had Skelly disclosed his work on the hurricane recovery efforts, he would not have been entitled to the $35,072.57 in worker’s compensation benefits that he was paid between 2005 and 2006.
“Federal employees receiving worker’ compensation must truthfully report income earned from other sources” said U.S. Attorney Bentley. “Here, Mr. Skelly failed to do so and was paid over $35,000 to which he was not entitled. Such dishonesty, which threatens the viability of an important program, warrants a payment by Mr. Skelly in excess of the amount fraudulently obtained.”
"I commend Special Agent Ryan Sims and the USAO for the Middle District of Florida for their outstanding efforts in safeguarding the integrity of FECA," said Michael W. Sonntag, Special Agent in Charge of the Office of Investigations, NASA Office of Inspector General.
The settlement resolves a lawsuit filed by the United States against Skelly, which was scheduled for trial in September. That suit was filed as a result of proactive investigative efforts by the NASA Office of the Inspector General.
This case was investigated jointly by Assistant U.S. Attorney Charles Harden of the United States Attorney’s Office for the Middle District of Florida and the NASA Office of Inspector General.
The lawsuit was filed in the Middle District of Florida, and is captioned United States v. Skelly, Case No. 8:14-cv-2470-T-35-MAP (M.D. Fla.).
The claims resolved by the settlement are allegations only; there has been no determination of liability.
New Orleans Man Indicted for Conspiracy to Alter U.S. Postal Money OrdersRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JARVIS WHEELER, age 28, of New Orleans, was charged today in a one-count Indictment for conspiracy to alter U.S. Postal money orders.
According to the Indictment, WHEELER conspired with others to buy U.S. Postal money orders in small amounts, typically $1.00. The money orders were then sent out of state where they were altered to much higher amounts. WHEELER, working with other conspirators, enlisted individuals to deposit the altered U.S. Postal money orders into local bank accounts. Once the money orders cleared, the funds were withdrawn and split by WHEELER and the co-conspirators.
If convicted, WHEELER faces up to five years imprisonment, a fine of up to $250,000, up to three year of supervised release following any term of imprisonment, and $100.00 special assessment.
U.S. Attorney Polite reiterated that the Indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Postal Inspector Office in investigating this matter. Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.
New Jersey Man Sentenced to 12 1/2 Years in Prison for Role in Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Newark, New Jersey man was sentenced to 151 months in prison today by Senior U.S. District Court Judge James M. Munley in Scranton, for distributing heroin in Luzerne County during October 2014.
According to United States Attorney Peter Smith, the defendant, Shaquan Murphy, age 29, previously pleaded guilty on October 11, 2014 to distributing heroin to Luzerne County-based drug traffickers. Murphy was responsible for distributing between 100 and 400 grams of heroin, equivalent to between 3,300 and 13,000 retail bags of heroin.
Murphy was indicted by a federal grand jury in Scranton in October 2014 as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Kingston Police, Plymouth Police and the Luzerne County District Attorney’s Office.
Judge Munley also ordered Murphy to forfeit his interest in more than $7000 in cash and a vehicle seized during the investigation and placed him on three years of supervised release following his prison sentence.
Murphy was one of six people charged in connection with the drug trafficking operation. Desmond Mercer, the leader of the drug operation, pleaded guilty to conspiracy to distribute heroin and was sentenced to 14 years in prison. Co-defendant Shaliek Stroman also pleaded guilty to conspiracy and was sentenced to 151 months in prison. Antuan Jamison, who helped Murphy deliver the drugs on October 11, pleaded guilty to conspiracy and received a five-year prison sentence.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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Navajo Man Sentenced to Prison for Failing to Update his Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Darrick Negale, 30, an enrolled member of the Navajo Nation who resides in Albuquerque, N.M., was sentenced today in federal court to 16 months in prison followed by five years of supervised release for violating the Sex Offender Registration and Notification Act (SORNA). Negale will be required to register as a sex offender after completing his prison sentence. The sentence was announced by U.S. Attorney Damon P. Martinez and U.S. Marshal Conrad E. Candelaria.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Negale was charged in a criminal complaint on Oct. 26, 2012, with violating SORNA by failing to update his sex offender registration. On Sept. 10, 2013, Negale was indicted on that same charge. According to the indictment, Negale failed to update his registration between Sept. 25, 2012 and Oct. 10, 2012, in Bernalillo County, N.M.
Negale was convicted of sexual abuse of a minor in Indian Country in June 2007. On May 6, 2010, Negale registered as a sex offender in Bernalillo County and agreed to notify the sheriff of the county to which he moved if he relocated outside of the county. Negale last registered as a sex offender on Oct. 3, 2011, in Bernalillo County and subsequently failed to notify the U.S. Probation Office of his whereabouts when he left a residential reentry program in Albuquerque without permission on Sept. 27, 2012. Negale pled guilty to the indictment on Nov. 10, 2015, without the benefit of a plea agreement.
This case was investigated by the U.S. Marshals Service and was prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
Middlesex Man Sentenced for Drug ConspiracyRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court, United States District Judge Terrence W. Boyle sentenced HAROLD DEVON SCARBORO, 25, of Middlesex, North Carolina to 18 months imprisonment, followed by 3 years of supervised release.
SCARBORO was named in an Indictment filed on July 7, 2015 charging him with conspiracy to distribute and possess with the intent to distribute cocaine, cocaine base (crack), and marijuana. On March 2, 2016, SCARBORO pled guilty to that charge.
SCARBORO was identified as one of several cocaine distributors at an open-air drug market located at 357 Barns Lake Road, Middlesex, North Carolina, known as “Blazin Saddles.”
Investigation of this case was conducted by the Johnston County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney Lawrence J. Cameron represented the government.
Marion County Convicted Felon Sentenced to 15 Years in Prison for Possessing A Firearm and AmmunitionRead the Press Release
Ocala, Florida – Senior U.S. District Judge Wm. Terrell Hodges today sentenced Kenneth Everette Robinson, Jr. (31, Marion County) to 15 years in federal prison for possession of a firearm and ammunition by a convicted felon. The Court also ordered him to forfeit the semi-automatic firearm and ammunition involved in the offense. Robinson previously pleaded guilty on January 19, 2016.
According to court documents, an Ocala police officer stopped Robinson for speeding on March 10, 2015. Robinson, who had no driver’s license, provided conflicting answers about the identity of the vehicle’s owner. He also admitted that he had marijuana inside the vehicle. During a subsequent search, the officer recovered Robinson’s wallet, marijuana, a digital scale, and a loaded .45 caliber semi-automatic pistol. When Robinson denied any knowledge of the firearm, law enforcement obtained a DNA sample from Robinson and submitted the firearm for further testing. Results of the test subsequently confirmed the presence of Robinson’s DNA on the firearm. Robinson later admitted that the loaded firearm belonged to him.
Robinson has nine prior state felony convictions, including multiple convictions for drug distribution, qualifying him for a sentencing enhancement as an Armed Career Criminal. Moreover, as a convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the City of Ocala Police Department. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Man Sentenced to over 112 Years in Prison for Robberies of Five Businesses in Las Vegas Area During Summer of 2014Read the Press Release
LAS VEGAS, Nev. – A Las Vegas man who robbed a convenience store, two liquor stores, a payday loan company, and an electronics retailer in the Las Vegas area during the summer of 2014, was sentenced today to 1,354 months or over 112 years in prison and five years of supervised release, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Dominique Wells, 29, was sentenced this morning by U.S. District Judge James C. Mahan. Wells was convicted by a jury in April of five counts of interference with commerce by robbery, two counts of conspiracy to interfere with commerce by robbery, and five counts of using a firearm during and in relation to a crime of violence. Two co-defendants, Christopher Dobbins, 28, and Andre Hall, 27, pleaded guilty in 2015. Dobbins was sentenced on July 13 to four years in prison, and Hall is awaiting sentencing.
“The prosecution of persons who commit violent robberies of commercial establishments with guns in southern Nevada is a top priority of our violent crime program,” said U.S. Attorney Bogden. “The defendants who are prosecuted federally for these robberies are typically recidivist felons who are using firearms to terrorize our community. Like in this case, the consequences of conviction for these repeat, violent offenders are severe.”
According to court records and trial testimony, on June 15, 2014, Wells robbed a convenience store in Henderson using a handgun and wearing a black mask and gloves, black t-shirt and camouflage shorts. Four days later, on June 19, 2014, Wells robbed a liquor store in Las Vegas using a handgun with a laser sight, and wearing camouflage shorts, a black t-shirt, and a black face mask/ski mask. Two days after that, on June 21, 2014, Wells robbed a liquor store on the Boulder Highway in Las Vegas using a black handgun with a laser sight and wearing camouflage shorts, a black t-shirt and a black face mask/ski mask. On June 26, 2014, Wells robbed a payday loan store in Henderson using a black handgun with a laser sight. Wells and a co-defendant used duct tape to tie up three individuals inside the payday loan store. On July 3, 2014, Wells robbed an electronics retailer in Henderson using a black handgun. Wells and a co-defendant used zip ties to tie up the employees in that robbery. Wells obtained on average only $100 to $250 in each robbery.
Over the last five years, 94 persons have been charged federally with using firearms to commit commercial robberies in southern Nevada. Following are links to the news releases for some of those cases.
https://www.justice.gov/usao-nv/pr/las-vegas-cinched-hoodie-robber-sentenced-life-prison
https://www.justice.gov/usao-nv/pr/femal-getaway-driver-convicted-robberies-13-banks-and-stores-las-vegas-area-during-2012
https://www.justice.gov/usao-nv/pr/man-sentenced-over-14-years-prison-six-armed-robberies
https://www.justice.gov/usao-nv/pr/men-sentenced-prison-kidnapping-conspiracy-and-thefts-delivery-drivers-and-warehouses
https://www.justice.gov/usao-nv/pr/last-30-minutes-or-less-robbers-gets-16-years-prison
https://www.justice.gov/usao-nv/pr/man-sentenced-over-11-years-federal-prison-robbing-local-jewelry-store-stolen-handgun
https://www.justice.gov/usao-nv/pr/man-who-robbed-las-vegas-mini-mart-convicted-jury
This case was investigated by the FBI, the Las Vegas Metropolitan Police Department, and the Henderson Police Department, as part of the Safe Streets Task Force and Project Safe Neighborhoods program.
The case was prosecuted by Assistant U.S. Attorneys Phillip N. Smith, Jr. and Lisa Cartier-Giroux.
Man Charged with Robbery of Center City Philadelphia RestaurantRead the Press Release
James Parker, 50, of Philadelphia, Pennsylvania was charged today by Indictment1 with robbery which interferes with interstate commerce and using, carrying, and brandishing a firearm during and in relation to a crime of violence, announced United States Attorney Zane David Memeger. The charges arise from the defendant’s violent robbery of the Tavern on Broad restaurant, located at 200 S. Broad Street in Philadelphia, Pennsylvania, during which, the Indictment alleges, the robber held a gun to the back of the victim employee’s neck, beat him repeatedly in the head with a gun, before forcing him to open the business’ safe, from which he stole approximately $8,000.
If convicted the defendant faces a maximum possible sentence of life imprisonment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Yvonne Osirim.
[1] An Information, Indictment or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Local Man Heads to Prison After Posting Photo with Gun and Ballistic VestRead the Press Release
CORPUS CHRISTI, Texas - A 29-year-old man has been ordered to federal prison following his conviction as a felon in possession of a firearm and ammunition, announced U.S. Attorney Kenneth Magidson. Marcus Colunga, of Corpus Christi pleaded guilty April 7, 2016.
Today, U.S. District Judge Nelva Gonzalez Ramos sentenced Colunga to 40 months imprisonment to be followed by three years of supervised release.
In May 2015, law enforcement received a photograph of a Facebook posting showing an individual wearing a ballistic vest and holding an SKS rifle. They identified the individual as Colunga. With a prior felony conviction, he is prohibited by federal law of firearms.
During the investigation, agents recovered an SKS rifle and a stolen ballistic vest, later determined to be the same items Colunga possessed in the photograph.
In federal custody since his arrest, Colunga will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation along with the Corpus Christi Police Department. Assistant U.S. Attorney Lance Watt prosecuted the case.
Loan Company Employee Sentenced to Prison for Stealing Identities Used to File False Tax ReturnsRead the Press Release
A Montgomery County, Alabama, resident was sentenced to 48 months in prison for her role in a stolen identity refund fraud scheme, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.
Wendy Huff, 32, admitted that between January 2013 and August 2015, she worked at two loan companies in Montgomery, Alabama, and had access to the personal identifying information of customers. Huff agreed to steal information from her employers and provide it to her co-conspirator James Vernon Battle, 31. Battle used that information to file over 335 returns claiming more than $400,000 in fraudulent refunds and directed the requested tax refunds to prepaid debit cards and U.S. Treasury checks, which were mailed to addresses in Montgomery, including Huff’s residence. Battle also brought several U.S. Treasury tax refund checks to Huff’s workplace where she used her position to cash them. Huff returned half of the proceeds to Battle and kept the balance for herself.
Huff pleaded guilty in March to one count of conspiracy to commit mail fraud and one count of aggravated identity theft. In addition to the prison term, U.S. District Judge Joel Dubina for the Middle District of Alabama sentenced Huff to three years of supervised release and ordered her to pay $102,322 in restitution to the Internal Revenue Service (IRS). Battle is scheduled to be sentenced on Aug. 31.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of IRS-Criminal Investigation and the U.S. Secret Service, who investigated the case and Trial Attorneys Michael C. Boteler and Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Loan Company Employee Sentenced to Prison for Stealing Identities Used to File False Tax ReturnsRead the Press Release
Montgomery, Alabama – A Montgomery County resident was sentenced to 48 months in prison for her role in a stolen identity refund fraud scheme, announced U.S. Attorney George L. Beck Jr. of the Middle District of Alabama, and Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
Wendy Huff, 32, admitted that between January 2013 and August 2015, she worked at two loan companies in Montgomery, Alabama, and had access to the personal identifying information of customers. Huff agreed to steal information from her employers and provide it to her co-conspirator James Vernon Battle, 31. Battle used that information to file over 335 returns claiming more than $400,000 in fraudulent refunds and directed the requested tax refunds to prepaid debit cards and U.S. Treasury checks, which were mailed to addresses in Montgomery, including Huff’s residence. Battle also brought several U.S. Treasury tax refund checks to Huff’s workplace where she used her position to cash them. Huff returned half of the proceeds to Battle and kept the balance for herself.
Huff pleaded guilty in March to one count of conspiracy to commit mail fraud and one count of aggravated identity theft. In addition to the prison term, U.S. District Judge Joel Dubina for the Middle District of Alabama sentenced Huff to three years of supervised release and ordered her to pay $102,322 in restitution to the Internal Revenue Service (IRS). Battle is scheduled to be sentenced on Aug. 31.
U.S. Attorney Beck and Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation and the U.S. Secret Service, who investigated the case and Trial Attorneys Michael C. Boteler and Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who are prosecuting this case.
Laurel Man Sentenced to 35 Years in Federal Prison for His Role in the Murder of a Robbery VictimRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Taylor King Pepe, age 21, of Laurel, Maryland today to 35 years in federal prison, followed by five years of supervised release, for an armed robbery conspiracy, and for aiding and abetting the brandishing and use of a gun during a crime of violence, arising from the robbery of Russell Rowe, who was shot and killed. There is no parole in the federal criminal justice system. At today’s sentencing hearing, Judge Russell found that Pepe was an organizer and leader of the armed robbery conspiracy.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Daniel L. Board, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Gary Gardner of the Howard County Police Department; and Howard County State’s Attorney Dario Broccolino.
According to his plea agreement, on January 23, 2014, Pepe, Desmick Lewis, Amanda McAdoo and Lauren Maready planned to rob Russell Rowe of Oxycodone pills. Maready drove the conspirators to the location where McAdoo had arranged to meet Rowe, purportedly to buy the pills from him.
When they arrived at the meeting place, Lewis hid behind a fence and McAdoo went to meet Rowe in his car, while Pepe and Maready remained in her car. Lewis approached Rowe’s car and began shooting. Upon hearing the shots, Pepe and Maready drove away, leaving Lewis and McAdoo. Rowe was discovered by Howard County Police a short time later, after his car had run into a tree. There were bullet holes in the driver’s side window and Rowe had been shot several times in the head. He subsequently died. The conspirators met a short time later near McAdoo’s residence in Laurel, close to where the shooting occurred. Pepe told Maready to drive them to his friend’s home in Elkridge, Maryland, where Pepe and McAdoo went inside and discussed the robbery/murder. Maready then drove Pepe, McAdoo and Lewis to Lewis’ grandmother’s house in Columbia, Maryland. Avery Terry and Donte Powell joined them later and they discussed the robbery/murder. Terry then drove Pepe, McAdoo and Lewis, along with the gun, to Pepe’s home.
On January 25, 2014, Pepe, McAdoo, and Maready were arrested in connection with the robbery and shooting. On January 26, 2014, Lewis went to Pepe’s residence, which had not yet been searched, and retrieved an item from the basement. Lewis texted Terry, who met him at Lewis’ grandmother’s house. Law enforcement officers had set up surveillance at the residence. They saw Terry trying to shield Lewis from view as the two men left the home and got into Terry’s car. Police stopped Terry’s car and arrested Lewis. A black .38 caliber revolver was recovered from Terry’s car. Rowe was killed with a .38 caliber revolver.
Avery Terry, age 23, of Laurel, pleaded guilty in U.S. District Court to an unrelated robbery of a CVS Pharmacy on January 21, 2014, in Elkridge, Maryland, and to using and brandishing a firearm during that robbery. In addition, Terry pleaded guilty to being an accessory after the fact to the January 23, 2014 robbery that resulted in the death of Russell Rowe. Terry was sentenced to 181 months in prison.
At his guilty plea on July 18, 2016, Donte Powell, a/k/a “Rain,” age 29, a Crips gang member who resides in Washington, D.C. and Columbia, admitted to committing the CVS robbery with Avery Terry, and to being a felon in possession of a gun. Powell is currently serving a state sentence for an unrelated armed robbery. A .40 caliber pistol seized during Powell’s arrest in that case is the gun that was used in the CVS robbery. U.S. District Judge George L. Russell III scheduled Powell’s sentencing in federal court for August 22, 2016 at 2:00 p.m.
Amanda McAdoo, age 21, of Laurel, Lauren Maready, age 21, of Highland, Maryland; and Desmick Lewis, age 24, of Columbia, pleaded guilty in Howard County Circuit Court to their roles in the January 23, 2014 robbery and murder. Lewis was sentenced to life in prison, McAdoo was sentenced to 30 years in prison and Maready was sentenced to 15 years in prison.
United States Attorney Rod J. Rosenstein commended the ATF, Howard County Police Department and Howard County State’s Attorney’s Office, especially Assistant State’s Attorneys Brian Furlong and Devora Kirschner, for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorney Sandra Wilkinson and Special Assistant United States Attorney Lauren E. Perry, who prosecuted the federal case.
Las Vegas Man with Lengthy Criminal History of Burglary and Robbery Sentenced to over 12 Years in PrisonRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man who robbed two tourists in the parking lot of their hotel at gunpoint and stole their vehicle, was sentenced this morning to 147 months in prison and three years of supervised release, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Brandon Michael White, 34, was sentenced by U.S. District Judge Gloria M. Navarro. White pleaded guilty on April 11 to one count of carjacking and one count of using a firearm during and in relation to a crime of violence.
According to the guilty plea agreement, on Dec. 26, 2014, at approximately midnight, White approached a man and a woman in the parking lot of their hotel on East Flamingo Road just after they parked their vehicle. White pointed a revolver at their feet and told them to give him everything, including their car keys. White took the female victim’s purse and the male victim’s cellular telephone and the car keys, and drove off in their vehicle. White was captured hiding in a yard near another hotel, where he had discarded the stolen items and the handgun he used to commit the robbery.
White has seven prior felony convictions in Las Vegas for burglary, robbery, and theft, and numerous misdemeanor convictions.
This case was investigated by the FBI and the Las Vegas Metropolitan Police Department, as part of the Safe Streets Task Force and Project Safe Neighborhoods program.
The case was prosecuted by Assistant U.S. Attorney Phillip N. Smith, Jr.
KC Man Sentenced to 15 Years for Producing Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for attempting to produce child pornography.
Michael Dye, 48, of Kansas City, was sentenced by U.S. District Judge Howard F. Sachs to 15 years in federal prison without parole.
Dye, who pleaded guilty on Feb. 19, 2016, admitted that he used a minor between the ages of 12 and 16 (identified as “Child Victim #2”) to produce child pornography between June 15, 2005, and Aug. 18, 2008.
Dye also admitted that he distributed those images of child pornography over the Internet to others, including co-defendant Thomas O’Brien, 56, of Rhode Island. O’Brien was sentenced to 18 months in federal prison after pleading guilty to the attempted sex trafficking of a child, to be served consecutively to his sentence of six years, followed by supervised release for the rest of his life, in the District of Rhode Island.
Dye admitted that this conduct constituted a pattern, in that there were multiple, separate instances involving prohibited sexual conduct involving Child Victim #2 and others during this time.
This case was prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the FBI, the Western Missouri Cyber Crimes Task Force, the Clay County, Mo., Sheriff’s Department, the Platte County, Mo., Sheriff’s Department, the Naval Criminal Investigative Service, the Newport, R.I., Police Department, the Rhode Island State Police, the Winnipeg, Manitoba Police Service in Canada, the Royal Canadian Mounted Police, the Crown’s Attorney’s Office in Canada and the Child Exploitation and Online Protection Centre in the United Kingdom.
Justice Department and State Attorneys General Sue to Block Anthem’s Acquisition of Cigna, Aetna’s Acquisition of HumanaRead the Press Release
Lawsuits Challenge Unprecedented Consolidation in the Health Insurance Industry
The U.S. Department of Justice and attorneys general from multiple states and the District of Columbia sued today to block Anthem’s proposed acquisition of Cigna and Aetna’s proposed acquisition of Humana, alleging that the transactions would increase concentration and harm competition across the country, reducing from five to three the number of large, national health insurers in the nation.
The department and state attorneys general filed these two merger challenges in the U.S. District Court for the District of Columbia. The complaints allege that the two mergers – valued at $54 billion and $37 billion – would harm seniors, working families and individuals, employers and doctors and other healthcare providers by limiting price competition, reducing benefits, decreasing incentives to provide innovative wellness programs and lowering the quality of care.
“Competitive insurance markets are essential to providing Americans the affordable and high-quality healthcare they deserve,” said Attorney General Loretta E. Lynch. “These mergers would restrict competition for health insurance products sold in markets across the country and would give tremendous power over the nation’s health insurance industry to just three large companies. Our actions seek to preserve competition that keeps premiums down and drives insurers to collaborate with doctors and hospitals to provide better healthcare for all Americans.”
“We all, including seniors, everyday workers and the previously uninsured and underinsured deserve affordable health insurance options,” said Principal Deputy Associate Attorney General Bill Baer. “Competition today drives these four successful firms to fight to give us affordable options. There is no reason to put that dynamic at risk and that is why we are asking the court to stop these mergers and keep competition working for the benefit of the American consumer.”
“The proposed mergers would eliminate two innovative competitors – Cigna and Humana – at a time when competition has been pressuring insurers to develop new models of care designed to keep Americans healthier, to deliver healthcare more efficiently and to control the costs of providing care,” said Deputy Assistant Attorney General Sonia Pfaffenroth of the Justice Department’s Antitrust Division. “The department will continue to work with our state colleagues to protect competition and innovation in this vitally important industry.”
Eleven states – California, Colorado, Connecticut, Georgia, Iowa, Maine, Maryland, New Hampshire, New York, Tennessee and Virginia – and the District of Columbia joined the department’s challenge of Anthem’s $54 billion acquisition of Cigna. Eight states –Delaware, Florida, Georgia, Iowa, Illinois, Ohio, Pennsylvania and Virginia – and the District of Columbia joined the department’s challenge of Aetna’s $37 billion acquisition of Humana.
The suit against Anthem and Cigna alleges that their merger would substantially reduce competition for millions of consumers who receive commercial health insurance coverage from national employers throughout the United States; from large-group employers in at least 35 metropolitan areas, including New York, Los Angeles, San Francisco, Denver and Indianapolis; and from public exchanges created by the Affordable Care Act in St. Louis and Denver. The complaint also alleges that the elimination of Cigna threatens competition among commercial insurers for the purchase of healthcare services from hospitals, physicians and other healthcare providers. The merger would eliminate substantial head-to-head competition in all these markets, and it would remove the independent competitive force of Cigna, which has been a leader in the industry’s transition to value-based care.
The lawsuit against Aetna and Humana alleges that their merger would substantially reduce Medicare Advantage competition in more than 350 counties in 21 states, affecting more than 1.5 million Medicare Advantage customers in those counties. Before seeking to acquire Humana, Aetna had pursued aggressive expansion in Medicare Advantage. Aetna, the nation’s fourth-largest Medicare Advantage insurer by membership, has nearly doubled its Medicare Advantage footprint over the past four years. Humana is the nation’s second-largest Medicare Advantage insurer by membership. The lawsuit also alleges that Aetna’s purchase of Humana would substantially reduce competition to sell commercial health insurance to individuals and families on the public exchanges in 17 counties in Florida, Georgia and Missouri, affecting more than 700,000 people in those counties. The lawsuit alleges that by buying Humana, Aetna would eliminate one of its strongest and most capable competitors in these markets.
Anthem, Inc. is headquartered in Indianapolis, Indiana. It is the nation’s second-largest health insurer and the largest member of the Blue Cross and Blue Shield Association. It holds the Blue Cross license in 14 states and provides health insurance to 39 million people. In 2015, Anthem reported over $79 billion in revenues.
Cigna Corp. is headquartered in Hartford, Connecticut. It is the nation’s fourth-largest health insurer. It operates in every state and the District of Columbia and provides health insurance to 15 million people. In 2015, Cigna reported $38 billion in revenues.
Aetna Inc. is headquartered in Hartford, Connecticut. It is the nation’s third-largest health insurer. It operates in every state and the District of Columbiaand provides health insurance to 23 million people. In 2015, Aetna reported $60 billion in revenues.
Humana Inc. is headquartered in Louisville, Kentucky. It is the nation’s fifth-largest health insurer, operates in every state and the District of Columbia and provides health insurance to 14 million people. In 2015, Humana reported $54 billion in revenues.
Aetna-Humana Complaint
Anthem-Cigna Complaint
Justice Department Files Suit Against Bensalem Township, Pennsylvania, over Denial of Zoning Approval for MosqueRead the Press Release
The Justice Department announced today that it has filed a lawsuit against Bensalem Township, Pennsylvania, alleging that the township violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it denied zoning approval to allow the Bensalem Masjid to build a mosque on three adjoining parcels of land in the township.
The complaint, filed in the Eastern District of Pennsylvania, alleges that Bensalem Township’s denial of a variance imposed a substantial burden on the Bensalem Masjid’s religious exercise, treated the Bensalem Masjid less favorably than the township treats nonreligious assemblies and discriminated against the Bensalem Masjid on the basis of religion. According to allegations in the complaint, the township placed unreasonable limitations on religious assemblies through its land use regulations. The complaint also alleges that the township only permits places of worship in one district without a variance or rezoning by the township and that no properties were available in that district when the Bensalem Masjid acquired the property.
“Our Constitution protects the rights of religious communities to build places of worship free from unlawful interference and unnecessary barriers,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Department of Justice will continue to challenge unjustified local zoning actions around the country when they encroach upon this important civil right.”
RLUIPA contains multiple provisions prohibiting religious discrimination and protecting against unjustified burdens on religious exercise. Persons who believe that they have been subjected to religious discrimination in land use or zoning may contact the Civil Rights Division’s Housing and Civil Enforcement Section at (800) 896-7743.
More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Bensalem Township Complaint
Jason Galanis Pleads Guilty in Manhattan Federal Court to Market ManipulationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JASON GALANIS pled guilty today to manipulating the market for Gerova Financial Group, Ltd. (“Gerova”), a publicly traded company listed on the New York Stock Exchange, and to defrauding the shareholders of that company. GALANIS pled guilty to conspiracy to commit securities fraud, securities fraud, and investment adviser fraud before U.S. Magistrate Judge Sarah Netburn.
U.S. Attorney Preet Bharara said: “As the ringleader of this multimillion-dollar fraud scheme, Jason Galanis put together a team of co-conspirators that carried out a strategy to secretly acquire shares of a publicly traded company and then cash out through a scheme of market manipulation. If that wasn’t enough, Jason Galanis also ran a separate scheme to defraud investors whose money was used by Galanis to pay obligations he owed to another set of investors.”
According to the allegations contained in the Indictment filed against JASON GALANIS and his co-conspirators, and statements made in related court filings and proceedings[1]:
The Gerova Scheme
From 2009 to 2011, JASON GALANIS, along with his co-conspirators John Galanis, Jared Galanis, Gary Hirst, Derek Galanis, Ymer Shahini, and Gavin Hamels, engaged in a scheme to defraud the shareholders of a publicly traded company called Gerova Financial Group, Ltd. (“Gerova”), and the investing public, by effecting securities transactions in Gerova stock for the purpose of conferring millions of dollars of undisclosed remuneration to JASON GALANIS and his co-conspirators, without adequate disclosure of JASON GALANIS’s role in directing the transactions or the benefits received by JASON GALANIS and his co-conspirators.
As a part of the scheme to defraud, JASON GALANIS obtained sufficient control over Gerova so as to be able to cause Gerova to enter into transactions of his design, and for his benefit, including the issuance of Gerova stock. JASON GALANIS obtained this control without causing himself to be identified as an officer or director of Gerova so as to purport to abide by an SEC-imposed bar that forbade him from holding such positions at publicly traded companies. Among other means and methods, JASON GALANIS, with the assistance of Hirst, caused over 5 million shares of Gerova stock, which represented nearly half the company’s public float and which were intended for JASON GALANIS’s ultimate benefit, to be issued to and held in the name of Ymer Shahini, who knowingly served as a foreign nominee for JASON GALANIS. JASON GALANIS, John Galanis, Jared Galanis, Derek Galanis, Hirst, and Shahini understood that the purpose of the stock grant to Shahini was to disguise JASON GALANIS’s ownership interest in the stock, and to evade the SEC’s regulations for issuing unregistered shares of stock.
At the same time, and as a further part of the scheme to defraud, JASON GALANIS’s co-conspirators, with his knowledge and approval, opened and managed brokerage accounts in the name of Shahini (the “Shahini Accounts”), effected the sale of Gerova stock from the Shahini Accounts, and received and concealed the proceeds, knowing that this activity was designed to conceal from the investing public JASON GALANIS’s ownership of and control over the Gerova stock.
JASON GALANIS, among others, also fraudulently induced investment advisers, including Gavin Hamels, to purchase shares of Gerova stock in the investment advisers’ client accounts by offering compensation and/or other benefits to the respective investment adviser. By causing the purchase of Gerova stock at the time, quantity, and/or price of their choosing, JASON GALANIS and others were able to, among other things, effectuate the sale of large quantities of Gerova stock from the Shahini Accounts that JASON GALANIS controlled while artificially maintaining the price of Gerova stock through coordinated match trading. Such coordinated trading served to manipulate the market for Gerova stock and deceive the investing public. As a result, JASON GALANIS and his co-conspirators reaped nearly $20 million in profits.
The Scheme to Defraud Clients of Investment Firm-2
From 2007 to 2010, JASON GALANIS along with an investment adviser identified in the Indictment as “CC-2,” participated in a scheme to defraud the clients of CC-2’s investment advisery firm, identified in the Indictment as “Investment Firm-2.” Oftentimes in exchange for compensation from JASON GALANIS, CC-2 caused Investment Firm-2 clients to invest in notes issued by entities associated with JASON GALANIS.
When obligations owed by entities associated with JASON GALANIS became due, CC-2 used client funds to either purchase notes issued by other entities associated with JASON GALANIS, or publicly-traded shares held by such entities. The funds generated were then used to pay the original obligations owed to other Investment Firm-2 clients. Through these securities trades, funds in client accounts of one set of Investment Firm-2 investors were used to pay obligations owed to a different set of Investment Firm-2 investors by entities associated with JASON GALANIS.
* * *
JASON GALANIS, 46, pled guilty to two counts of conspiracy to commit securities fraud, each carrying a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000 or twice the gross gain or loss from the offense; and one count of investment adviser fraud, which carries a maximum sentence of five years in prison and a maximum fine of $10,000 or twice the gross gain or loss from the offense.
John Galanis, 73, pled guilty on July 20, 2016, to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; and one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000 or twice the gross gain or loss from the offense.
Gavin Hamels, 40, pled guilty on March 22, 2016, to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense; one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5,000,000 or twice the gross gain or loss from the offense; and one count of investment adviser fraud, which carries a maximum sentence of five 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 sentence for the defendant will be determined by the judge.
Trial against defendants Gary Hirst, Derek Galanis, and Jared Galanis is scheduled for September 12, 2016, on charges of conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, and wire fraud, and with regard to Jared Galanis, on charges of investment adviser fraud. Defendant Ymer Shahini remains a fugitive. The allegations contained in the Indictment as to those defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Mr. Bharara praised the work of the U.S. Postal Inspection Service and the Federal Bureau of Investigation, and thanked the SEC.
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 www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brian Blais, Aimee Hector, and Rebecca Mermelstein are in charge of the prosecution.
[1] As for the defendants who have not pled guilty (Gary Hirst, Derek Galanis, Jared Galanis, and Ymer Shahini), the description of the charges set forth herein constitute only allegations.
Individual Sentenced to 20 Years in Prison for His Participation in A Carjacking with Serious Bodily HarmRead the Press Release
SAN JUAN, P.R. –Yonnedil Carror-Torres was sentenced to 20 years in prison for his participation in the carjacking and sexual assault of a female victim, and carrying a firearm during and in relation to a crime of violence, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Defendant Carror-Torres pled guilty to the charges on March 2, 2016.
On April 29, 2013 the defendant and three others approached two victims and announced a carjacking: “This is a robbery, get inside”. The two victims were forced to move to the rear seat of the vehicle. Carror-Torres had a silver handgun with a black grip and another subject had a shotgun; Carror-Torres demanded money and began to hit the male victim with the handgun on the head inflicting an open wound. A short time later the male victim jumped out of the vehicle. The defendant, along with his co-conspirators fled the area at high speed with the female victim.
At some point Carror-Torres lost control of the vehicle and had an accident. The female victim was then placed in another vehicle with Carror-Torres and another co-conspirator. Later, Carror-Torres sexually assaulted the female victim in the back seat of the second car, while another co-conspirator was in the driver’s seat. In the early hours of April 30, 2013, Trujillo Alto Municipal Officers arrested Carror-Torres and his co-conspirator in the second car where they also found the female victim. Co-conspirators Wilfredo Garay-Sierra and Jovanny Cortes-Malave were previously sentenced to prison terms for the same offense.
The case was prosecuted by Assistant United States Attorney Kelly Zenón-Matos.
Hudson County, New Jersey, Man Charged with Assaulting A Federal Officer with A Deadly WeaponRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man appeared in court today on charges he tried to run down a federal officer with a 2009 Jeep Grand Cherokee, U.S. Attorney Paul Fishman announced.
Hakim G. Taylor, a/k/a “Scott Taylor,” a/k/a “Hakeem Horton,” a/k/a “Anthony Lance,” a/k/a “Hakim Smith,” of Bayonne, New Jersey, is charged by complaint with assault on a federal officer. He appeared today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was detained.
According to the complaint:
On July 19, 2016, federal law enforcement agents were conducting surveillance in Newark when they observed Taylor and other individuals engage in suspected narcotics transactions. Upon being alerted to the presence of law enforcement officers, Taylor and another associate entered the Jeep Grand Cherokee, with Taylor in the driver’s seat. As Taylor began to drive, law enforcement agents maneuvered themselves and their vehicles in an effort to box in the Jeep to conduct further investigation.
A special agent of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), identified in the complaint as “Victim One,” activated his red and blue flashing emergency lights and exited his undercover vehicle to approach the Jeep. The agent was wearing an HSI-issued external ballistic vest carrier, which is marked with large white letters stating “POLICE – HSI” on both the front and back and also displays a large gold “Special Agent” badge. The agent identified himself as police and repeatedly ordered Taylor to stop and not to move. Taylor accelerated the Jeep and aimed it toward the agent, striking the agent as Taylor drove away.
The agent was hit on his left shoulder and arm by the Jeep, and the momentum of the impact threw the agent to the road, causing multiple lacerations and abrasions. The agent was subsequently treated at a hospital emergency room. If convicted, Taylor faces a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of HSI, under the direction of Special Agent in Charge Terence S. Opiola, with the investigation leading to today’s charges.
The government is represented by Special Assistant U.S. Attorney Stephanie Raney of the U.S. Attorney’s Office General Crimes Unit.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense Counsel: John Yauch Esq., Assistant Federal Public Defender, Newark