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20 July 2016
July Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 9 indictments charging 10 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Uriel Cabrera-Reyes, age 25, of Omaha, is charged with illegal reentry into the United States on or about July 11, 2016. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release and a $100 special assessment.
* Arturo Garcia, age 34, of Walthill, is charged with assault by strangulation of an intimate partner or spouse on or about July 5, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Abel Lopez-Perez, age 46, of Grand Island, is charged with illegal reentry into the United States on or about February 8, 2016. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release and a $100 special assessment.
* James Manske, age 28, of Omaha and Alex Pearson, age 28, of Elkhorn, are charged in a two-count Indictment. Counts I and II of the Indictment charge the defendants with harboring illegal aliens on or about July 18, 2016 and continuing to on or about March 17, 2016 and on or about April 8, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment for each count.
* Wyatt Metoyer, age 19, of Omaha, is charged with user in possession of a firearm on or about May 30, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Sergio Rodriguez Ruiz, age 29, of Omaha, is charged with illegal reentry into the United States after an aggravated felony conviction on or about July 7, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release and a $100 special assessment.
* Eric Sayer, age 27, of Lincoln, is charged with failure to register as a sex offender between on or about May 2015 and June 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, supervised release for life and a $100 special assessment.
* Justo Soria-Andrade, age 47, is charged with illegal reentry into the United States on or about May 9, 2016. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release and a $100 special assessment.
* James Washington, a/k/a James Plunkett; a/k/a James A. Plunkett; a/k/a James A. Plunkett, Jr.; a/k/a James A. Plunkett III, age 30, of Omaha, is charged with felon in possession of a firearm on or about June 14, 2016. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
John 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 JOHN GALANIS, a/k/a “Yanni,” 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 and securities fraud before U.S. Magistrate Judge Sarah Netburn.
U.S. Attorney Preet Bharara said: “John Galanis helped develop and execute an elaborate plan to secretly obtain undisclosed control of millions of shares of Gerova Financial Group stock, falsely pump up the demand, and then cash out, making millions in ill-gotten profits. For John Galanis, this is just the latest chapter in a lifetime of fraud that has included three prior convictions, including one that resulted in a prison sentence of 27 years.”
According to the allegations contained in the Indictment filed against JOHN GALANIS and his co-conspirators and statements made in related court filings and proceedings[1]:
From 2009 to 2011, JOHN GALANIS, along with his co-conspirators Jason 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 obtaining secret control over millions of shares of Gerova stock and then manipulating the market for the stock as the defendants caused their secretly held shares to be sold. As part of the scheme, the defendants fraudulently generated demand for Gerova stock by bribing investment advisers to purchase for client accounts the Gerova stock that was sold by the defendants, thereby enabling the defendants to cash out from the scheme and make millions in illegal profits.
As a part of the scheme to defraud, Jason Galanis obtained 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 identifying himself as an officer or director of Gerova to avoid the SEC-imposed bar that prohibited him from holding such positions at publicly traded companies. Among other means and methods, Jason Galanis, with the assistance of Hirst, caused more than 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 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, JOHN GALANIS, among others, with the knowledge and approval of Jason Galanis, 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 and others, 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 present case represents JOHN GALANIS’s fourth conviction. In 1973, JOHN GALANIS was convicted in this District on charges of securities fraud and bribery and was sentenced to six months in prison. In 1988, JOHN GALANIS was convicted in this District of multiple counts of racketeering, tax fraud, securities fraud, bank fraud, and bribery and was sentenced to 27 years in prison. That same year, JOHN GALANIS was convicted in New York County Supreme Court of Grand Larceny and was sentenced to seven to 17 years in prison.
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JOHN GALANIS, 73, pled guilty 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. 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.
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 Jason Galanis, Gary Hirst, Derek Galanis, and Jared Galanis is scheduled to commence on 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 Jason Galanis and Jared Galanis, on charges of investment advisor 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 (Jason Galanis, Gary Hirst, Derek Galanis, and Jared Galanis) the description of the charges set forth herein constitute only allegations.
IARA Pleads Guilty to Transferring Nearly $1.4 Million to Iraq in Violation of SanctionsRead the Press Release
JEFFERSON CITY, Mo. B Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the Islamic American Relief Agency (IARA), formerly headquartered in Columbia, Mo., pleaded guilty in federal court today to transferring nearly $1.4 million to Iraq in violation of federal sanctions.
IARA, through a representative of the board of directors, pleaded guilty before U.S. District Judge Nanette K. Laughrey to one count of conspiracy to violate the International Emergency Economic Powers Act, one count of conspiracy to commit money laundering and one count of obstructing the administration of internal revenue laws, which were contained in an Oct. 21, 2008, federal indictment.
IARA served as the U.S. office of the Islamic Relief Agency (ISRA), an international organization headquartered in Khartoum, Sudan. IARA took in between $1 million and $3 million in contributions annually from 1991 to 2003. It also received funds from the United States Agency for International Development (USAID). IARA employed approximately six full-time employees and 10-12 part-time employees.
IARA was closed in October 2004 after being identified by the U.S. Treasury Department as a specially designated global terrorist organization. IARA was reconstituted in order to resolve this criminal matter. When this case is resolved, IARA will dissolve itself as a corporation for all time. IARA and its board of directors agree that it will not form a new corporation to conduct the activities that IARA formerly conducted.
By pleading guilty today, IARA admitted that it secretly funneled $1,375,000 to Iraq in violation of United States economic sanctions. President George H.W. Bush declared a national emergency with respect to Iraq in August 1990, which resulted in sanctions against sending or transferring money, funds or goods directly or indirectly to any person in Iraq or to the government of Iraq. In violation of the Iraqi sanctions, IARA collected funds that were illegally transferred to Iraq with the assistance of a Jordanian national. According to today’s plea agreement, this individual either took the cash into Iraq or purchased items in Jordan and transported them into Iraq.
IARA corruptly endeavored to impair and impede the due administration of the Internal Revenue laws by using its tax-exempt status to solicit funds, representing that they were legitimate charitable contributions, and to misuse part of those funds by transferring those funds to Iraq, a purpose prohibited by law. During the entire period in which the Iraq sanctions were in effect, IARA solicited donations through various means, including pamphlets, flyers, newsletters and personal correspondence, requesting contributions to pay for projects in Iraq. IARA did not disclose the fact that the organization had provided funds for projects and persons in Iraq in its annual filings with the Internal Revenue Service.
Several officials and employees of IARA have previously pleaded guilty and been sentenced.
IARA Executive Director Mubarak Hamed, a naturalized U.S. citizen originally from Sudan, was sentenced to four years and 10 months in federal prison without parole. Hamed pleaded guilty to conspiring to illegally transfer more than $1 million to Iraq in violation of federal sanctions. Hamed also pleaded guilty to obstructing the administration of the laws governing tax‑exempt charities by misusing IARA=s tax‑exempt status, providing false information to the IRS, and lying to federal agents.
IARA fundraiser Abdel Azim El-Siddig was sentenced to two years of probation. El-Siddig pleaded guilty to conspiring to lobby for IARA=s removal from a Senate Finance Committee list of charities suspected of having terrorist ties, while concealing this advocacy and not registering with the proper authorities.
IARA board member Ali Mohamed Bagegni, a native of Libya who is a naturalized U.S. citizen, and IARA fundraiser Ahmad Mustafa, a citizen of Iraq and a lawful permanent resident alien, were each sentenced to six months of probation. Federal prosecutors asked the court to give Bagegni and Mustafa credit for their substantial assistance to the government in the investigation and prosecution of the case. Bagegni pleaded guilty to his role in the conspiracy to illegally transfer funds to Iraq in violation of federal sanctions. Mustafa was a fundraiser for IARA from 1996 until it was closed in 2004, but at the time he worked for the organization he was unaware it had no permission to send funds to Iraq. Mustafa pleaded guilty to illegally transferring funds to a family member in Iraq in violation of federal sanctions.
Hamed and El‑Siddig hired Mark Deli Siljander in 2004 to lobby for IARA=s removal from a U.S. Senate Finance Committee list of charities suspected of funding international terrorism, and its reinstatement as an approved government contractor. IARA lost its status as an approved government contractor in 1999, when the U.S. Agency for International Development (USAID) terminated grants for two relief projects in Mali, Africa.
Siljander, who operated a Washington, D.C. consulting business called Global Strategies, Inc., had been a member of the U.S. House of Representatives from Michigan and was a U.S. Ambassador to the United Nations General Assembly. Earlier in 2004, Siljander had assisted IARA in hiring another former congressman and lobbyist (identified as “R.P.H.”), who was paid $15,000 to advocate for IARA’s removal from the list and reinstatement as an approved government contractor.
Siljander, Hamed and El‑Siddig agreed with each other to conceal Siljander=s efforts on IARA=s behalf. In order to do so, Siljander instructed Hamed and El‑Siddig to transfer $75,000 of IARA=s funds to him by funneling them through nonprofit entities. El-Siddig carried at least three checks issued to Siljander=s charities from Chicago to Washington, D.C., and gave them to Siljander.
In exchange for the payments, during the summer of 2004, Siljander acted as an agent for IARA by contacting persons at the U.S. Senate Finance Committee, USAID, the Department of Justice, and the Department of the Army, in an effort to have IARA removed from the USAID list of debarred entities, and to remove IARA from the Senate Finance Committee=s list of charities suspected of funding terrorism. Federal law requires anyone who serves as an agent of a foreign entity, including an organization, to register with the U.S. Attorney General.
Siljander admitted that in two separate interviews he repeatedly lied to FBI agents and prosecutors acting on behalf of a federal grand jury. Siljander obstructed justice by falsely denying that he was hired to advocate for IARA, and by falsely claiming that the payments from IARA were charitable donations intended to assist him in writing a book about bridging the gap between Islam and Christianity.
Siljander was sentenced to one year and one day in federal prison without parole after pleading guilty to obstruction of justice and acting as an unregistered foreign agent.
Under the terms of today’s plea agreement, the government will recommend that no fines be assessed as the organization will voluntarily be terminated and divest itself of all its funds and property. The plea agreement acknowledges that, due to its designation as a specially designated global terrorist and the subsequent blocking of all its property, IARA has no funds readily available to it to pay any fine.
This case is being prosecuted by Assistant U.S. Attorneys Anthony P. Gonzalez, Steven M. Mohlhenrich, and Brian Casey from the U.S. Attorney=s Office for the Western District of Missouri, and Trial Attorney Paul G. Casey from the National Security Division of the U.S. Department of Justice. The case was investigated by the FBI, IRS-Criminal Investigation and U.S. Agency for International Development, Office of the Inspector General.
Heroin Dealers Sentenced to PrisonRead the Press Release
EUGENE, Ore. – Nicholas Jacobson and his twin brother Matthew Jacobson, 30, of Jackson County Oregon, were sentenced to prison on Wednesday, July 20, 2016, by U.S. District Judge Ann Aiken for conspiracy to distribute 100 grams or more of heroin. Nicholas Jacobson was sentenced to 97 months in prison, and Matthew Jacobson was sentenced to 78 months in prison. Following their release from prison, both defendants will be on supervised release for five years.
In July 2014, the Douglas Interagency Narcotics Team (DINT) and the DEA began investigating the Jacobson brothers who were well known to DINT as having been involved in dealing heroin in Douglas and Jackson counties for years. Assisted by a confidential informant, DINT and the DEA began making controlled buys of heroin from the Jacobson brothers, who lived in Jackson County on a large rural property.
A search warrant was executed at the Jacobsons’ property in Jackson County on October 9, 2014. Approximately four pounds of heroin and $20,000 was located, along with body armor, night vision googles and 17 firearms. The firearms—most of which were loaded—included multiple assault rifles and pistols, along with extended capacity magazines. Most of the heroin and firearms were located in the main residence where Nicholas lived, although a large amount of heroin paraphernalia, $1237 and two pistols were located in Matthew’s trailer. Law enforcement determined that the brothers worked together to deal heroin but that Nicholas had more involvement than Matthew.
Within a month after being charged in federal court and placed on pre-trial release, the Jacobsons absconded. They were arrested four months later in Medford, Oregon at a residence where officers also found approximately six ounces of heroin and $10,000.
The investigation of this case was conducted by the Douglas Interagency Narcotics Team and the Drug Enforcement Administration, with assistance by the Medford Area Drug and Gang Enforcement Task Force. The case was prosecuted by Assistant U.S. Attorney Jeffrey Sweet.
Grand Rapids Man Sentenced for Distribution of Child Pornography on the Dark WebRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick A. Miles, Jr., announced today that Seth Edward Piccolo, 44, of Grand Rapids, was sentenced to 60 months’ imprisonment for his role as a member of a dark website for the distribution of child pornography, including images of very young prepubescent children being sexually assaulted. Piccolo pled guilty to charges of possession and access with intent to view child pornography in April of this year, followed by a guilty plea to distribution of child pornography in May. The pleas were accepted and the sentence imposed by U.S. District Judge Robert Holmes Bell.
Piccolo was a member of a website that operated on the "dark web." The dark web is a description given to websites that are only accessible through specialized software that utilizes layers of encryption to hide the identity of the users. Australian law enforcement authorities, in cooperation with the FBI, discovered the illegal website that was dedicated to trading child pornography. Piccolo established his membership credentials by uploading images from his own collection of child pornography. Once admitted, he was able to access and download images from the website and images posted by other users. The FBI and Australian authorities identified hundreds of members who were scattered across the globe leading to Piccolo’s apprehension and conviction. Piccolo made further attempts to conceal his activities by utilizing encryption and evidence destroying software on his home computer.
"The dark web is no sanctuary for criminal activity," U.S. Attorney Miles said. "Law enforcement in the Western District of Michigan is committed to tracking down criminals who try to use technology to evade detection of their crimes, including child exploitation offenses."
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutors’ offices, the Internet Crimes Against Children task force ("ICAC"), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The case was investigated by the FBI’s WEBCHEX Task Force and the Australian Queensland Police Service’s Task Force Argos. Assistant U.S. Attorney Justin M. Presant prosecuted the case.
END
Global Head of HSBC’s Foreign Exchange Cash-Trading Desks Arrested for Orchestrating Multimillion-Dollar Front Running SchemeRead the Press Release
Charges Also Unsealed Against Former Head of Foreign Exchange Cash-Trading Desk for Europe, Middle East and Africa
The head of global foreign exchange cash trading at HSBC Bank plc, a subsidiary of HSBC Holdings plc (collectively HSBC), and HSBC’s former head of foreign exchange cash trading for Europe, the Middle East and Africa were charged with conspiring to defraud a client of HSBC through a scheme commonly referred to as “front running.”
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Robert L. Capers of the Eastern District of New York, Acting Inspector General Frederick W. Gibson of the Federal Deposit Insurance Corporation (FDIC) and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office made the announcement.
Mark Johnson, 50, a U.K. citizen and U.K. and U.S. resident, and Stuart Scott, 43, a U.K. citizen and resident, were charged by complaint with conspiracy to commit wire fraud. Johnson was arrested last night at JFK International Airport in Queens, New York, and will be arraigned later today before U.S. Magistrate Judge Lois Bloom of the Eastern District of New York.
“The defendants allegedly betrayed their client’s confidence, and corruptly manipulated the foreign exchange market to benefit themselves and their bank,” said Assistant Attorney General Caldwell. “This case demonstrates the Criminal Division’s commitment to hold corporate executives, including at the world’s largest and most sophisticated institutions, responsible for their crimes.”
“As alleged, the defendants placed personal and company profits ahead of their duties of trust and confidentiality owed to their client, and in doing so, defrauded their client of millions of dollars,” said U.S. Attorney Capers. “When questioned by their client about the higher price paid for their significant transaction, the defendants wove a web of lies designed to conceal the truth and divert attention away from their fraudulent trades. The charges and arrest announced today reflect our steadfast commitment to hold accountable corporate executives and licensed professionals who use their positions to fraudulently enrich themselves.”
“The Federal Deposit Insurance Corporation Office of Inspector General is pleased to join the Department of Justice and our law enforcement colleagues in announcing this arrest,” said Acting Inspector General Gibson. “Our collective efforts help ensure public confidence in the financial markets. It is critically important to hold individuals accountable for their actions, particularly those who abuse their positions of public trust. We will continue to pursue justice for those involved as this case moves forward.
“These individuals are accused of defrauding clients by misusing confidential information to manipulate currency prices for the benefit of the bank and themselves,” said Assistant Director in Charge Abbate. “The FBI will continue to work aggressively with our partners to prevent, investigate and prosecute criminal fraud in the financial markets.”
According to the complaint, in November and December 2011, Johnson and Scott misused information provided to them by a client that hired HSBC to execute a foreign exchange transaction related to a planned sale of one of the client’s foreign subsidiaries. HSBC was selected to execute the foreign exchange transaction – which was going to require converting approximately $3.5 billion in sales proceeds into British Pound Sterling – in October 2011. HSBC’s agreement with the client required the bank to keep the details of the client’s planned transaction confidential. Instead, Johnson and Scott allegedly misused confidential information they received about the client’s transaction. On multiple occasions, Johnson and Scott allegedly purchased Pound Sterling for HSBC’s “proprietary” accounts, which they held until the client’s planned transaction was executed. The complaint alleges that, as part of the scheme, both Johnson and Scott made misrepresentations to the client about the planned foreign exchange transaction that concealed the self-serving nature of their actions. Specifically, the complaint alleges that Johnson and Scott caused the $3.5 billion foreign exchange transaction to be executed in a manner that was designed to spike the price of the Pound Sterling, to the benefit of HSBC and at the expense of their client. In total, HSBC allegedly generated profits of roughly $8 million from its execution of the FX Transaction for the Victim Company, including profits generated from the front running conduct by Johnson, Scott, and other traders whom they directed.
The investigation is being conducted by the FDIC’s Office of Inspector General and the FBI’s Washington Field Office. Trial Attorney Melissa Aoyagi and Senior Litigation Counsel Carol Sipperly of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jacquelyn Kasulis of the Eastern District of New York’s Business and Securities Fraud Section are prosecuting the case.
The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The charges in this case 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.
Global Head of HSBC’S Foreign Exchange Cash-Trading Desks Arrested for Orchestrating Multimillion-Dollar Front Running SchemeRead the Press Release
BROOKLYN, N.Y. – The head of global foreign exchange cash trading at HSBC Bank plc, a subsidiary of HSBC Holdings plc (collectively HSBC), and HSBC’s former head of foreign exchange cash trading for Europe, the Middle East and Africa, were charged with conspiring to defraud a client of HSBC through a scheme commonly referred to as “front running.”
U.S. Attorney Robert L. Capers of the Eastern District of New York, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting Inspector General Frederick W. Gibson of the Federal Deposit Insurance Corporation (FDIC), and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, made the announcement.
Mark Johnson, 50, a U.K. citizen and U.K. and U.S. resident, and Stuart Scott, 43, a U.K. citizen and resident, were charged by complaint with conspiracy to commit wire fraud. Johnson was arrested last night at JFK International Airport in Queens, New York, and will be arraigned later today before U.S. Magistrate Judge Lois Bloom of the Eastern District of New York.
“As alleged, the defendants placed personal and company profits ahead of their duties of trust and confidentiality owed to their client, and in doing so, defrauded their client of millions of dollars,” stated United States Attorney Capers. “When questioned by their client about the higher price paid for their significant transaction, the defendants wove a web of lies designed to conceal the truth and divert attention away from their fraudulent trades. The charges and arrest announced today reflect our steadfast commitment to hold accountable corporate executives and licensed professionals who use their positions to fraudulently enrich themselves.”
“The defendants allegedly betrayed their client’s confidence, and corruptly manipulated the foreign exchange market to benefit themselves and their bank,” said Assistant Attorney General Caldwell. “This case demonstrates the Criminal Division’s commitment to hold corporate executives, including at the world’s largest and most sophisticated institutions, responsible for their crimes.”
“The Federal Deposit Insurance Corporation Office of Inspector General is pleased to join the Department of Justice and our law enforcement colleagues in announcing this arrest,” said FDIC Acting Inspector General Gibson. “Our collective efforts help ensure public confidence in the financial markets. It is critically important to hold individuals accountable for their actions, particularly those who abuse their positions of public trust. We will continue to pursue justice for those involved as this case moves forward.”
“These individuals are accused of defrauding clients by misusing confidential information to manipulate currency prices for the benefit of the bank and themselves,” said Assistant Director in Charge Abbate. “The FBI will continue to work aggressively with our partners to prevent, investigate and prosecute criminal fraud in the financial markets.”
According to the complaint, in November and December 2011, Johnson and Scott misused information provided to them by a client that hired HSBC to execute a foreign exchange transaction related to a planned sale of one of the client’s foreign subsidiaries. HSBC was selected to execute the foreign exchange transaction – which was going to require converting approximately $3.5 billion in sales proceeds into British Pound Sterling – in October 2011. HSBC’s agreement with the client required the bank to keep the details of the client’s planned transaction confidential. Instead, Johnson and Scott allegedly misused confidential information they received about the client’s transaction. On multiple occasions, Johnson and Scott allegedly purchased Pound Sterling for HSBC’s “proprietary” accounts, which they held until the client’s planned transaction was executed. The complaint alleges that, as part of the scheme, both Johnson and Scott made misrepresentations to the client about the planned foreign exchange transaction that concealed the self-serving nature of their actions. Specifically, the complaint alleges that Johnson and Scott caused the $3.5 billion foreign exchange transaction to be executed in a manner that was designed to spike the price of the Pound Sterling, to the benefit of HSBC and at the expense of their client. In total, HSBC allegedly generated profits of roughly $8,000,000 from its execution of the FX Transaction for the Victim Company, including profits generated from the front running conduct by Johnson, Scott, and other traders whom they directed.
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The investigation is being conducted by the FDIC’s Office of Inspector General and the FBI’s Washington Field Office. Trial Attorney Melissa Aoyagi and Senior Litigation Counsel Carol Sipperly of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jacquelyn Kasulis of the Eastern District of New York’s Business and Securities Fraud Section are prosecuting the case.
The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
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The charges in this case 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.
Franklinville Man Pleads Guilty to Gun Charge; Violating Supervised ReleaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Salvatore Faliero, 53, of Franklinville, NY, pleaded guilty to being a felon in possession of a firearm before Senior U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine. In addition, the defendant, who is currently on federal supervised release following a 2009 conviction of accessory after the fact, also plead guilty to violation of supervised release which could carry an additional 24 months in prison.
According to Assistant U.S. Attorneys Michael J. Adler and Thomas S. Duszkiewiz, who handled the case, on November 29, 2015, New York State Troopers began investigating a complaint that the defendant was shooting a firearm from his vehicle.
• One witness stated that Faliero admitted to him that he had shot a gun.
• Another witness stated that on December 1, 2015, he saw the defendant put a gun into his vehicle.
• On December 3, 2015, troopers received another report of the defendant using a firearm.Soon after this third complaint, troopers observed the defendant driving his red Honda CRV and stopped the vehicle. Troopers discovered a loaded Marlin, Model 336W, 30-30 caliber lever action rifle on the back seat of the vehicle. Ammunition for the firearm was found on the center console. Faliero admitted that he had been using the rifle.
In September 1985, the defendant was convicted in state court of Attempted Criminal Possession of a Controlled Substance. In October 1998, Faliero was convicted in Cattaraugus County Court of Attempted Burglary followed by his 2009 federal conviction. As a result, the defendant is prohibited from legally possessing a firearm.
The plea is the culmination of an investigation by the New York State Police, under the direction of Major Steven Nigrelli and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid.
Sentencing is scheduled for October 26, 2016 at 11:00 a.m. before Judge Skretny.
Four St. Joseph Family Members Indicted for $1.5 Million Tax FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that four St. Joseph, Mo., residents were indicted by a federal grand jury today for their roles in a $1.5 million tax fraud scheme as well as individual tax fraud.
Dinorah Stoll-Weaver, 48, her sister, Dawn Langlais (formerly Ankrom-Brown), 58, her husband, Thad Weaver, 45, and Langlais’s daughter, Jennifer Sturgis, 37, all of St. Joseph, were charged in a 23-count indictment returned by a federal grand jury in Kansas City, Mo.
From 2001 through early 2010, Stoll-Weaver owned, and with the assistance of Langlais, operated Homeward Bound Health Services, Inc., a home health provider located in St. Joseph. In 2010, Stoll-Weaver changed Homeward Bound’s name to Silver Linings, Inc., and put in place nominee owners. According to the indictment, these nominee owners signed the checks but made no business decisions; Stoll-Weaver and Langlais maintained control and continued to operate Silver Linings, which closed in 2013.
Stoll-Weaver and Langlais employed other relatives at Homeward Bound and Silver Linings, including Weaver and Sturgis.
Today’s indictment alleges that Stoll-Weaver and Langlais participated in a conspiracy to willfully fail to pay over employment taxes to the IRS and to steal from a health care benefit program from Oct. 1, 2009, to Jan. 31, 2013. Stoll-Weaver and Langlais withheld $508,088 in employment taxes from the paychecks of their employees, the indictment says, but instead of forwarding those taxes to the government, took them as additional income for themselves and for relatives.
According to the indictment, between 2009 - 2012, when the employment taxes were withheld but not paid to the IRS, Stoll-Weaver and Langlais personally spent approximately $868,565 from business accounts by transferring funds to their own account for personal expenses. They also wrote checks to cash and made cash withdrawals.
Homeward Bound and Silver Linings allegedly withheld and collected $341,996 in federal income taxes, Social Security taxes, and Medicare taxes from employees from 2010 to 2012 and then kept those withheld taxes instead of paying them.
Additionally, Homeward Bound allegedly failed to pay the employer portion of Social Security and Medicare taxes from 2010 to 2012 totaling $166,091. Homeward Bound allegedly failed to pay federal income tax withholdings, and both the employee and employer portions of Social Security tax and Medicare tax, for years prior to 2010. Total employment taxes due and owing for Homeward Bound and Silver Linings from 2005 to 2010 are $765,748.
Homeward Bound and Silver Linings allegedly failed to pay federal unemployment taxes for 2002 to 2009 totaling $24,049. Homeward Bound and Silver Linings allegedly withheld and failed to pay over Missouri state income taxes from 2007 to 2010 totaling $291,204. In like manner, Homeward Bound and Silver Linings withheld from employee paychecks and kept child support payments, employee IRA contributions and medical and dental insurance payments. The theft of these payments from employees had negative collateral consequences for their employees.
The total criminal tax loss for failure to pay employment taxes due and owing from 2001 to 2012 is $1,502,760.
All of the defendants allegedly failed to declare and properly report their income on their personal federal income tax returns.
From at least 2009 to 2012, Stoll-Weaver, Langlais, Weaver and Sturgis all received income from Homeward Bound and Silver Linings, the indictment says, which they failed to report on their individual federal income tax forms, and as a result, underpaid their federal income taxes. According to the indictment, Langlais has not filed an income tax return since 2008. Additionally, from 2009 to 2012, Stoll-Weaver, Weaver, and Sturgis each allegedly claimed personal federal income tax refunds, knowing that Homeward Bound and Silver Linings had not paid any income taxes to the IRS.
In addition to the conspiracy, Stoll-Weaver and Langlais are charged together in one count of theft from a health care benefit program and 11 counts of willful failure to pay over taxes totaling $282,056.
Stoll-Weaver and Weaver are also charged together in four counts of making false statements on tax returns by failing to report a total of $257,826 of unreported income. Sturgis is charged with three counts of making false statements on tax returns by failing to report a total of $150,192 of unreported income. Langlais is also charged with three counts of failing to file tax returns for tax years 2010, 2011 and 2012.
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 Kathleen D. Mahoney. It was investigated by IRS – Criminal Investigation.
Four More Plead Guilty in Dexter Area Drug Conspiracy CaseRead 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 Mark Tasker, a/k/a “Mackie”, 49, of Dexter, Maine; Greg Tasker, 28, of Stetson, Maine; and Eugene Moulton, 67, and Antoinette Perreault, a/k/a “Toni”, 48, both of Harmony, Maine, pleaded guilty today U.S. District Court to conspiring to distribute and possess with the intent to distribute oxycodone and cocaine.
According to court records, between January 2002 and November 2014, the defendants conspired to distribute oxycodone and/or five kilograms or more of cocaine in the Dexter area. The drugs were acquired in Rhode Island. Father and son, Mark and Greg Tasker, distributed oxycodone and cocaine. Moulton and Perreault distributed cocaine. Mark Tasker also pled guilty to maintaining a drug-involved premises for allowing his Liberty Street residence in Dexter to be used for drug distribution activities.
Co-defendants John Williams, Cynthia Williams, Whitney Chadbourne, and Corey Pomerleau pled guilty in the case on January 25, 2016 and await sentencing.
Mark Tasker faces between 10 years and life in prison, a $10,000,000 fine, and between five years and life on supervised release on the conspiracy charge and up to 20 years in prison, a $500,000 fine and three years of supervised release on the premises charge. Greg Tasker, Moulton and Perreault face up to 20 years in prison, a $1,000,000 fine and between three years and life on supervised release.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency, with assistance provided by the Dexter Police Department, and the Penobscot County and Piscataquis County Sheriff’s Offices.
Four Area Residents, Mexican National Indicted for Drug Trafficking Resulting in MurderRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three Nixa, Mo., residents, a Springfield, Mo., resident and a Mexican national were indicted by a federal grand jury today for their roles in a conspiracy to distribute methamphetamine, which resulted in the murder of a Mexican national, Oscar Adan Martinez-Gaxiola.
Brooke Danielle Beckley, 19, Nathaniel Austin Lee, 18, and Jourdan Ashley McGinnis, 27, all of Nixa, Anthony Edward Donovan, 19, of Springfield, and Yovanny Aroldo Mendivil-Balderrama, 22, a citizen of Mexico, were charged in a four-count indictment returned by a federal grand jury in Springfield. These defendants were originally charged by Webster County Prosecuting Attorney Ben Berkstresser; those state charges will be dismissed in lieu of federal prosecution.
Today’s indictment alleges that Beckley, Donovan, Lee, McGinnis and Mendivil-Balderrama participated in a conspiracy to distribute methamphetamine in Greene County, Dallas County, Webster County and Christian County, Mo., from April 28, 2015, to April 26, 2016.
In addition to the conspiracy, Beckley, Donovan, Lee and Mendivil-Balderrama are charged together with using firearms in relation to a drug-trafficking crime, resulting in the murder of Martinez-Gaxiola on April 25, 2016 in Webster County. A Stoeger .40-caliber pistol, a Glock .40-caliber handgun and a Taurus 9mm handgun allegedly were used during the drug-trafficking conspiracy.
Beckley and McGinnis are also charged together in one count of possessing methamphetamine with the intent to distribute. Beckley is also charged with possessing a firearm in furtherance of a drug-trafficking crime. Beckley allegedly was in possession of a Sears Roebuck & Company 20-gauge bolt-action shotgun with a sawed-off barrel and stock and a Phoenix Arms .22-caliber pistol on April 8, 2016, in furtherance of the drug-trafficking conspiracy.
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 Timothy A. Garrison. It was investigated by the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, the Christian County, Mo., Sheriff’s Department, the Greene County, Mo., Sheriff’s Department, the Lawrence County, Mo., Sheriff’s Department, the Webster County, Mo., Sheriff’s Department, the Seymour, Mo., Police Department, the Rogersville, Mo., Police Department, the Springfield, Mo., Police Department and the Combined Ozarks Multijurisdictional Enforcement Team (COMET).
Former Wells Fargo Branch Manager and Two Others Charged with Laundering Proceeds of Trademark ScamRead the Press Release
Charges against the former manager of a Wells Fargo Bank branch in Glendale, California, were unsealed late yesterday, alleging that he was part of a scheme to launder the proceeds of a mass mailing scam targeting holders of U.S. trademarks. Two other California men had previously been charged for perpetrating the scam and committing bank fraud in furtherance of the scam.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, Inspector in Charge Robert Wemyss of the U.S. Postal Inspection Service (USPIS) Los Angeles Division, Inspector in Charge Maria Kelokates of the USPIS Washington Division and Acting Special Agent in Charge Aimee E. Schabilion of the Internal Revenue Service-Criminal Investigation (IRS-CI) Los Angeles Field Office made the announcement.
Albert Yagubyan, 36, of Burbank, California; Artashes Darbinyan, 36, of Glendale; and Orbel Hakobyan, 41, of Glendale, were charged with one count of conspiracy to commit money laundering in a second superseding indictment filed on July 14, 2016, in the Central District of California. Yagubyan was also charged with four counts of concealment money laundering, one count of false bank entries and one count of witness tampering. Hakobyan was charged with three counts of concealment money laundering. Darbinyan was charged with four counts of mail fraud, three counts of aggravated identity theft, five counts of concealment money laundering and one count of bank fraud.
According to the second superseding indictment, Yagubyan was the manager of a Wells Fargo branch in Glendale until October 2015. The second superseding indictment alleges that from 2013 to 2015, Yagubyan allowed Darbinyan and Hakobyan to open bogus bank accounts at the Wells Fargo branch through which proceeds of the trademark scam could be laundered in exchange for a share of the proceeds. Darbinyan and Hakobyan deposited checks from the victims of the mass mailing scam into bogus accounts at Wells Fargo, then Yagubyan allegedly instructed Wells Fargo employees to approve withdrawals by Darbinyan and Hakobyan from those accounts, even though the two men were not the signatories on the accounts, according to the second superseding indictment. The indictment unsealed yesterday alleges that with Yagubyan’s assistance, Darbinyan and Hakobyan were able to launder $1.29 million into gold and cash through Wells Fargo.
Yagubyan is charged with a separate count of false bank entries for allegedly instructing a Wells Fargo employee to open an account for Darbinyan under the identity of another person. The second superseding indictment also charges Yagubyan with witness tampering for instructing a Wells Fargo employee to withhold the truth from federal investigators.
Darbinyan was originally charged in October 2015 with 12 counts of mail fraud and four counts of aggravated identity theft. A first superseding indictment filed in January 2016 charged Darbinyan and Hakobyan each with conspiracy to commit bank fraud and one count of bank fraud. Darbinyan was additionally charged with mail fraud, aggravated identity and money laundering counts.
The charges and allegations in the second superseding indictment, as well as those in the original and first superseding indictments, are merely accusations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The USPIS and IRS-CI investigated the case. Trial Attorneys William E. Johnston and Brian K. Kidd of the Criminal Division’s Fraud Section are prosecuting the case.
Former Montromgery Lawyer Pleads Guilty to Defrauding HUDRead the Press Release
Montgomery, Ala. – A Georgia resident who was previously a practicing attorney in Montgomery, Alabama pled guilty Thursday, July 14, 2016 to wire fraud affecting a financial institution, announced the United States Attorney’s Office. Christopher B. Pitts, 46, now of Atlanta, Georgia, admitted to operating a scheme to defraud the United States Department of Housing and Urban Development (HUD).
According to court documents, between 2005 and 2008 Pitts served as a closing attorney for the sales of all homes owned by HUD in northern and central Alabama. As the closing attorney, it was Pitts’s responsibility to receive purchase money, pay closing costs, and transmit to HUD the remaining purchase money. In court yesterday, Pitts admitted that, on numerous occasions, he did not actually remit payments to HUD. As a result of Pitts’s fraud, HUD never received the money it was owed for the sales of HUD-owned houses. Pitts was arrested on February 8, 2016 following a federal grand jury indictment on this charge.
A date for sentencing has yet to be scheduled. Pitts faces a maximum sentence of 30 years in prison, as well as substantial monetary penalties.
This case was investigated by HUD’s Office of Inspector General. Assistant U.S. Attorney Jonathan S. Ross is prosecuting the case.
Former Manager of HD York Federal Credit Union Sentenced for Evading Federal Income Taxes on Embezzled FundsRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Sherry Garner, age 54, Red Lion, PA, the former CEO-Manager of the HD York Federal Credit Union in York, Pennsylvania was sentenced by United States District Court Judge John E. Jones, III in Harrisburg to 24 months in federal prison for evading federal income taxes on money she embezzled from the Credit Union.
According to United States Attorney Peter Smith, Garner previously pled guilty on February 19, 2016, to a Criminal Information charging her with bank larceny and tax evasion. Garner embezzled $252,106 from the HD York Credit Union between 2010 and 2013 and failed to report $70,983 in stolen income on her federal income tax return for 2011, thereby evading $19,069 in federal income taxes.
In a plea agreement filed with the Information, Garner also admitted the total tax loss to the IRS on her unreported $252,106 income ($58,034 in 2010, $70,983 in 2011, $64,308 in 2012, and $58,780 in 2013) was $62,704. Garner agreed to make restitution to both the York Federal Credit Union and the IRS as ordered by the Court.
Judge Jones ordered Garner to pay $252,106 in restitution to CUMIS Insurance Society, Inc. and $62,704 to the IRS. Garner is to surrender to the Bureau of Prisons on September 19, 2016.
The case was investigated by the Harrisburg Offices of the Internal Revenue Service and the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Kim Douglas Daniel.
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Former Leader of FAM Mob Sentenced for Violating RICO ActRead the Press Release
Memphis, TN – The former leader of notorious street gang FAM Mob has been sentenced to federal prison for violating the RICO Act. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, James Earl McCracken, 28, of Memphis, Tennessee, served as the head governor of FAM Mob. The street gang has a presence throughout the Northern section of Memphis and Shelby County, including Frayser, Northhaven, Raleigh and Millington. FAM Mob's hierarchy consists of a head governor, governors, CEOs, "big homies" and "little homies."
As head governor of FAM Mob, McCracken was responsible for calling membership meetings and enforcing violations of the gang's rules.
Alleged racketeering acts associated with FAM Mob include robberies, drug trafficking, and murder.
The RICO Act prohibits persons associated with a criminal enterprise from engaging in unlawful activities, such as robbery, murder, drug trafficking, and other crimes affecting interstate and foreign commerce.
One example of McCracken’s criminal activity took place in July 2011. Along with other members of FAM Mob, McCracken robbed a drug dealer who was trafficking narcotics manufactured outside of the district.
In November 2014, McCracken was indicted for violating the Hobbs Act, which makes it a federal crime to commit a robbery that interferes with interstate commerce.
Following McCracken’s 2014 indictment, Jarvis Lewis became the new head governor of FAM Mob. Lewis was later arrested for felony firearm possession, and convicted by a federal jury of the crime in November 2015. Lewis was sentenced to 120 months in federal prison in February 2016.
In December 2015, McCracken pleaded guilty before U.S. District Judge John T. Fowlkes Jr. to one count of racketeering conspiracy.
In July 2016, Jude Fowlkes sentenced McCracken to 120 months in federal prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Multi-Agency Gang Unit.
Assistant U.S. Attorneys Kevin Whitmore and Reagan Taylor prosecuted this case on the government’s behalf.
Former Lawrence Hall of Science Employee Sentenced to 18 Months in Prison for EmbezzlementRead the Press Release
OAKLAND - DeSondra Michell Ward was sentenced yesterday to 18 months in prison, and ordered to pay $389,948.57 in restitution for stealing from and defrauding the University of California, Berkeley’s Lawrence Hall of Science, announced United States Attorney Brian J. Stretch and FBI Special Agent in Charge John F. Bennett.
Ward pleaded guilty on February 9, 2016, to five counts of theft from a program receiving federal funds. According to the plea agreement, Ward admitted to stealing $389,948.57 while working at U.C. Berkeley, a public university, from 2008 through 2014. Ward worked at U.C. Berkeley’s Lawrence Hall of Science, first as an administrative assistant with the Full Option Science System (“FOSS”) program and later as a financial analyst with budget and finance responsibilities over FOSS. Ward admitted to using the university’s travel systems to arrange personal air travel for herself, her family, and her friends, and also purchasing tickets which she sold to individuals for her own profit. She also admitted that she used her university-issued procurement card for personal transactions and processed vouchers to generate payments to herself, her family, and her friends.
The Lawrence Hall of Science’s FOSS program developed and maintains a science curriculum for elementary and middle school students. FOSS also undertakes research projects to improve the learning and teaching of science. Each year U.C. Berkeley receives funding and other benefits from the federal government. In fact, 25% of the Lawrence Hall of Science’s annual budget is comprised of federal funding.
Ward, 45, formerly of Pinole, California, was charged in an information filed on November 16, 2015. She was charged with five counts of theft from programs receiving federal funds in violation of 18 U.S.C. § 666(a)(1)(A). The sentence was handed down by The Honorable Jeffrey S. White, U.S. District Court Judge, following Ward’s guilty pleas to all five charged counts. Judge White also sentenced the defendant to a three-year period of supervised release and ordered her to forfeit $308,817.58. Ward is currently out of custody on bond, but was ordered to surrender and begin serving her sentence on October 20, 2016.
Andrew S. Huang is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Vanessa Quant and Stephanie Mitchell. The prosecution is the result of an investigation by the Federal Bureau of Investigation, with significant assistance from the University of California Police Department and U.C. Berkeley’s Audit and Advisory Services.
Former Healthcare Employee Pleads Guilty to Participating in Stolen Identity Tax Refund Fraud Conspiracy Using Patient InformationRead the Press Release
A Montgomery, Alabama, resident pleaded guilty today to one count of a multi-object conspiracy to commit identity theft and wire fraud and one count of aggravated identity theft, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.
According to court documents, Alana Wells worked at a healthcare company where she had access to patient information protected from disclosure under the Health Insurance Portability and Accountability Act of 1996. Wells admitted that she stole the names, dates of birth and social security numbers of patients from her employer’s database and provided these identities to co-conspirator Fredrick Hill. Hill then provided the stolen personal identification information to another co-conspirator, Christopher Davis, who, along with others, used it to file fraudulent federal tax returns with the Internal Revenue Service (IRS) requesting tax refunds. Hill and Davis were previously prosecuted and sentenced to 74 months and 60 months in prison, respectively.
A date for Wells’ sentencing hearing has not yet been set. She faces a maximum sentence of five years in prison for conspiracy and a mandatory two-year prison sentence for aggravated identity theft, as well as a term of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Jason H. Poole and Kathryn A. Kimball of the Tax Division and Assistant U.S. Attorney Jonathan S. 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.
Former Federal Employee Labor Union President Sentenced in White Plains Federal Court for Stealing Union FundsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that WILLIAM DAVIS, the former president of the Federation of Government Employees (“AFGE”) Local 1119 (the “Union”), was sentenced today to 15 months in prison in connection with embezzling approximately $150,000 of the Union’s funds. DAVIS pled guilty on April 6, 2016, and was sentenced today in White Plains federal court by U.S. District Judge Kenneth M. Karas.
According to the allegations in the Indictment:
The AFGE is a national labor union that represents approximately 670,000 workers employed by the federal government across all agencies and departments. The Union is a local union chapter of AFGE that represents approximately 300 employees of the Veterans Affairs Medical Center-Montrose (the “Hospital”), and maintains offices on the Hospital’s campus in Montrose, New York. At all times relevant to the Indictment, the Union maintained a checking account (the “Union Bank Account”) for Union funds, including members’ dues payments.
From at least January 2008 through in or about October 2012, DAVIS served as the elected president of the Union. As the president, it was DAVIS’s duty to preside over the Union’s meetings and conduct the day-to-day affairs of the Union. During that time period, DAVIS used a debit card for the Union Bank Account (the “Union Debit Card”) issued to a deceased former Union officer to make hundreds of charges and cash withdrawals for non-Union expenses and without the authorization of the Union. For example, DAVIS used the Union Debit Card at stores and online retailers including Apple, Best Buy, Wal-Mart, and Radio Shack, purchasing items for his personal benefit including electronics, music downloads, video games, cellphones, men’s clothing, gasoline, and cigarettes. DAVIS purchased money orders using the Union Debit Card that totaled at least $30,000 from the United States Post Office in Montrose, New York. On several occasions, DAVIS paid for rent for his residence using the money orders he purchased with the Union Debit Card. DAVIS also used the Union Debit Card to make over 900 cash withdrawals from ATM machines in the Southern District of New York and elsewhere, in the process incurring thousands of dollars of ATM fees and fees for insufficient funds. Between January 2008 and June 2012, the unauthorized purchases and cash withdrawals that DAVIS made with the Union Debit Card totaled in excess of $120,000.
In order to conceal his misuse and theft of Union funds, DAVIS also made false statements and omissions in annual Department of Labor Office of Labor-Management Standards reports for the fiscal years 2008, 2009, 2010, and 2011, reporting a total of only $7,000 in allowances and disbursements to himself as president.
In addition to the prison sentence, DAVIS, 56, of Wappingers Falls, New York, was sentenced to two years of supervised release. The Court further ordered that Davis pay $150,000 in restitution.
Mr. Bharara thanked and praised the U.S. Department of Labor Office of Labor-Management Standards and the U.S. Department of Veterans Affairs, Office of the Inspector General for their work in this investigation.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney Jessica K. Feinstein is in charge of the prosecution.
Former Acclarent, Inc. Executives Convicted of Crimes Related to the Sale of Medical DevicesRead the Press Release
BOSTON – The former Chief Executive Officer and Vice President of Sales of Acclarent, Inc., a medical device company, were convicted by a federal jury in connection with distributing adulterated and misbranded medical devices.
William Facteau, 47, of Atherton, Cal., and Patrick Fabian, 49, of Lake Elmo, Minn., were convicted by a jury following a six week trial of 10 counts of introducing adulterated and misbranded medical devices into interstate commerce.
The jury concluded that Facteau and Fabian caused the unlawful distribution of a medical device known as the Relieva Stratus Microflow Spacer (“Stratus”) for uses not cleared or approved by the U.S. Food and Drug Administration. Despite the fact that the company had told the FDA that the Stratus was a medical device intended to maintain an opening to a patient’s sinus, Facteau and Fabian launched the product intending it to be used as a steroid delivery device. The FDA, however, had specifically refused Acclarent’s request to clear the Stratus for marketing as a drug delivery device without further submissions to support that use.
The evidence at trial demonstrated that Facteau and Fabian sought to quickly develop and market products, including the Stratus as a drug delivery device, to create a projected revenue stream that would make Acclarent an attractive business for either an initial public offering or acquisition.
The jury acquitted Facteau and Fabian on 14 felony counts of fraud. The 10 counts of conviction were misdemeanor counts related to the same conduct.
The charge of violating the Food, Drug and Cosmetics Act provides for a sentence of no greater than one year in prison on each count, one year of supervised releaseand fine of $100,000 or twice the gross gain or loss. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations; Craig Rupert, Special Agent in Charge of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeastern Field Office; and Jeffrey Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office. The case is being prosecuted by Assistant U.S. Attorneys Sara Miron Bloom, Patrick Callahan and William Weinreb of Ortiz’s Criminal Division with the assistance of Trial Attorney Raquel Toledo of the Justice Department’s Consumer Protection Branch and Beth Weinman of the FDA’s Office of General Counsel.
Filipino National Admits Running $9 Million Stolen Credit and Debit Card Cybercrime RingRead the Press Release
NEWARK, N.J. – A Filipino national today admitted running an international cashing operation that monetized stolen credit and debit card information obtained through computer hacking and ATM skimming operations, U.S. Attorney Paul J. Fishman announced.
Angelo Virtucio, a/k/a “ZaiR,” a/k/a “ZaiRe,” a/k/a “Omega,” a/k/a “Omega10,” 30, of Quezon City, Philippines, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of conspiracy to commit bank fraud. Virtucio was arrested in the Southern District of Florida on Jan. 29, 2015 and was extradited to the District of New Jersey on Feb. 11, 2015.
According to documents filed in this case and statements made in court:
Virtucio monetized millions from stolen credit and debit card data using a global network of “cashers” that he employed to enter into unauthorized financial transactions using the accounts related to the stolen information.
The stolen credit card data was primarily obtained through computer hacking. The stolen debit card data was mostly obtained through ATM skimming operations. After purchasing the stolen data from other cybercriminals, Virtucio and his conspirators encoded it onto counterfeit credit and debit cards. The cashers then used the counterfeit cards to make unauthorized ATM withdrawals and purchases at physical retail locations.
The conspiracy to commit bank fraud charge is punishable by a potential maximum of 30 years in prison and a $1 million fine. Sentencing is scheduled for Oct. 24, 2016.
U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, Newark Division, under the direction of Special Agent in Charge Mark McKevitt, with the ongoing investigation.
The government is represented by Assistant U.S. Attorney Andrew S. Pak of the Computer Hacking and Intellectual Property Section of the Economic Crimes Unit.
Defense counsel: Kathleen Theurer Esq. and A. Paul Condon Esq.
Felon Charged with Possessing Firearm and AmmunitionRead the Press Release
Muadhdhin Bey, age 33, of Philadelphia, Pennsylvania, was charged today by Indictment1 with possessing a firearm and ammunition on March 28, 2016, after having been convicted of a felony offense, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum of 10 years in prison, a special assessment of $100, a 3 year term of supervised release, and a potential fine.
The case was investigated by the Philadelphia Police Department and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jonathan B. Ortiz.
1An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Jury in New Mexico Convicts Mexican National on Methamphetamine Trafficking Conspiracy ChargeRead the Press Release
ALBUQUERQUE – A federal jury sitting in Las Cruces, N.M., returned a verdict today finding Javier Amador-Flores, 49, guilty on a methamphetamine trafficking conspiracy charge after a three-day trial. U.S. Attorney Damon P. Martinez, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Chief Patrol Agent Jeffrey D. Self of the U.S. Border Patrol El Paso Sector, and Commander Byron Wester of the Lea County Drug Task Force, announced the guilty verdict.
Amador-Flores, a permanent resident from Mexico who lived in Denver City, Texas, was arrested on July 29, 2015, on an indictment charging him and four co-defendants, three of whom are Mexican nationals, with participating in a conspiracy to distribute methamphetamine in Lea County, N.M., from May 1, 2015 through May 6, 2015. Three of Amador-Flores’ co-defendants, Joel Dominguez-Morales, 41, Maria Marcelina Cardoza-Burciaga, 40, and Myrna Orozco, 32, a U.S. citizen, were also arrested. The fourth co-defendant, Jose Manuel Trujillo, 41, has yet to be arrested and is considered a fugitive.
Dominguez-Morales, Cardoza-Burciaga and Orozco pled guilty to participating in the methamphetamine trafficking conspiracy charged. Amador-Flores elected to proceed to trial.
Amador-Flores’ trial began July 18, 2016, and concluded this afternoon when the jury returned a verdict of guilty on the sole count indictment. The evidence at trial established that Amador-Flores participated in the methamphetamine trafficking conspiracy by receiving and storing shipments of methamphetamine at the residence he shared with Orozco in Denver City. Other members of the conspiracy distributed the methamphetamine in Lea County.
According to trial testimony, on May 1, 2015, an undercover agent arranged to purchase methamphetamine from Trujillo. On May 6, 2015, Trujillo informed the undercover agent that Dominguez-Morales would be delivering the methamphetamine to the agent. Thereafter, Dominguez-Morales met with the undercover agent at a restaurant in Hobbs and directed the agent to meet him at an abandoned bar in a rural area outside of Hobbs, where a woman would deliver the methamphetamine. Later that day, law enforcement officers arrested Dominguez-Morales and Cardoza-Burciaga near the abandoned bar and seized almost four kilograms of methamphetamine.
As part of their continuing investigation, on May 6, 2015, the officers executed a consensual search at the residence shared by Amador-Flores and Orozco, where they seized additional methamphetamine. During the trial, the jury learned that after his arrest, Amador-Flores made a statement to law enforcement officers in which he acknowledged that Trujillo and Dominguez-Morales were his friends and that he was aware of their drug trafficking activities. He also stated that Trujillo offered to pay him $2,000 to deliver the methamphetamine to the undercover agent on May 6, 2015. The evidence established that although Amador-Flores agreed to make the delivery for Trujillo, he did not do so because Dominguez-Morales was able to make the delivery.
The jury returned a guilty verdict after deliberating approximately two and a half hours.
Amador-Flores remains in custody pending his sentencing hearing, which has yet to be scheduled. At sentencing, Amador-Flores faces a statutory mandatory minimum of ten years and a maximum of life in prison. He will be deported after completing his prison sentence.
His co-defendants Dominguez-Morales, Cardoza-Burciaga and Orozco each face a statutory maximum penalty of 20 years in prison. Dominguez-Morales and Cardoza-Burciaga will be deported after serving their prison sentences.
The charges against Trujillo are merely accusations and he is presumed innocent unless found guilty in a court of law.
This case was investigated by the Las Cruces office of Homeland Security Investigations, U.S. Customs and Border Protection and the Lea County Drug Task Force, with assistance from the Yoakum County (Texas) Sheriff’s Office. Assistant U.S. Attorneys Brock Taylor and Matthew Beck of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the NM HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Federal Grand Jury Indicts Cherokee Woman in International Parental Kidnapping CaseRead the Press Release
CHARLOTTE, N.C. – United States Attorney Jill Westmoreland Rose announced today that a federal grand jury sitting in Charlotte returned yesterday a criminal indictment against Shira Elizabeth Mattocks, aka Shira Elizabeth Raman, 27, of Cherokee, N.C., for kidnapping her three children and fleeing to Mexico. Mattocks was first charged by a criminal complaint filed in the Western District of North Carolina on June 20, 2016, and she was arrested the same month upon returning to the United States.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief James Dike Sneed of the Cherokee Indian Police Department join U.S. Attorney Rose in making today’s announcement.
According to allegations contained in the criminal complaint and the bill of indictment, Mattocks was involved in ongoing custody disputes with the fathers of her three young children, identified in court documents as E.A., J.O. and S.O.As alleged in court documents, sometime after November 14, 2014, Mattocks kidnapped E.A., J.O. and S.O., and fled the United States with the intent to obstruct the lawful exercise of the fathers’ parental rights.Law enforcement located Mattocks in Mexico and with the assistance and cooperation of the Mexican authorities Mattocks was deported back to the United States.On June 22, 2016, Mattocks was taken into custody upon her arrival at Hartfield-Jackson Atlanta International airport.
In making today’s announcement U.S. Attorney Rose said, “As alleged in the indictment, Mattocks abducted her three young children and fled to another country, where she hid for more than a year and a half.Rather than deal with pending custody issues, Mattocks chose to run, causing significant distress to the children’s fathers and potentially exposing the young victims to a great deal of psychological harm.Thanks to the diligent efforts of our law enforcement partners, the children have safely returned to the United States to resume a normal childhood and Mattocks will face the consequences of her actions.”
“The FBI is uniquely positioned to investigate cases involving charges related to international parental kidnapping. Through our Legal Attaché offices covering more than 200 countries, the FBI can work directly with other law enforcement agencies to bring justice to children whose parents try to take the law into their own hands,” said FBI’s Special Agent in Charge Strong.
Mattocks is currently in federal custody. Her arraignment has been scheduled for July 27, 2016, at 9:40 a.m. before U.S. Magistrate Judge Dennis Howell in Asheville. Mattocks is charged with three counts of international parental kidnapping. Each charge carries a maximum term of three years in prison.
The charges 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.
In making today’s announcement, U.S. Attorney Rose commended the FBI and the Cherokee Indian Police Department for their investigation of the case, and thanked LEGAT Mexico City, Guadalajara Sub-office, participating officers with the Instituto Nacional de Migración and La Policía Federal for their invaluable assistance.
Assistant U.S. Attorney John Pritchard of the U.S. Attorney’s Office in Asheville is prosecuting the case.
Family Members Convicted of $1.2 Million Tax Refund Fraud ConspiracyRead the Press Release
TALLAHASSEE, FLORIDA – After a six-day trial, a federal jury convicted Jennifer Maldonado, 29, and her father Jorge Maldonado, 52, both of Oviedo, Florida, of conspiracy, wire fraud, theft of government property, and aggravated identity theft. Co-conspirators Sharon Glover and Diane White, both 54 of Sanford, Florida, pled guilty in February 2016 to conspiracy, theft of government property, and aggravated identity theft. The verdicts and guilty pleas were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, between 2009 and 2011, Jorge Maldonado and his daughter Jennifer, who were both tax preparers, conspired with Glover and White to obtain more than $1.2 million in income tax refunds issued on fraudulent tax returns. The Maldonados filed returns that generated refunds. Glover and White cashed refund checks issued as a result of the fraudulent returns at a Tallahassee supermarket. They deposited cash proceeds of the checks into the Maldonados’ bank accounts or delivered the cash to the Maldonados. Glover and White cashed 505 checks by using fraudulent powers of attorney, approximately 16 different forged notary seals, and forged taxpayer signatures.
The defendants face a maximum of 20 years in prison for conspiracy and wire fraud, and a maximum of 10 years in prison for theft of government property. The defendants also face a mandatory term of two years in prison for aggravated identity theft, which must be served consecutively to any penalty they receive on the other counts.
The sentencing hearings are scheduled as follows at the United States Courthouse in Tallahassee:
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Jorge Maldonado: October 5, 2016, at 9:30 a.m.;
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Jennifer Maldonado: October 5, 2016, at 2:30 p.m.;
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Sharon Glover: August 4, 2016, at 10:30 a.m.; and
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Diane White: September 16, 2016, at 2:30 p.m.
This case resulted from an investigation by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorneys Herbert S. Lindsey and Gary K. Milligan are prosecuting the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]-
Embezzler Receives Enhanced Sentence for Faking Terminal ConditionRead the Press Release
HOUSTON – A former employee of Southwestern Energy Co. has been ordered to prison following her conviction of embezzlement, announced U.S. Attorney Kenneth Magidson. Kendra Walker, 28, pleaded guilty to embezzling $452,025.56.
Today, U.S. District Judge Nancy Atlas found that Walker had obstructed justice and enhanced her sentence, ordering her to serve a total of 36 months in federal prison. In handing down the sentence, Judge Atlas noted that “this crime is inexcusable."
In an attempt to receive a more lenient sentence, Walker had claimed she was being treated at a hospice for a terminal condition and submitted a three-page report purportedly created by her hospice. However, the U.S. Attorney’s Office noticed that this report claimed Walker had been diagnosed with “stage 5” breast cancer, whereas stage 4 is regarded as the gravest stage by the National Cancer Institute.
The FBI investigated further and found the report Walker submitted to not be genuine. Further, Walker had never been a hospice patient. Walker also claimed to have been recently treated at M.D. Anderson Cancer Center, but hospital representatives confirmed there were no records of her having been treated there.
Walker had previously pleaded guilty to embezzling from her former employer, Southwestern Energy Co., where she had been employed in its accounts payable department. Starting in February 2014, Walker abused her position to access her employer’s accounts payable system and fraudulently changed vendor records to instead list her own bank accounts. She then caused Southwestern Energy Co.’s accounts payable system to pay invoices that, in reality, the vendors did not submit. Instead, these payments were transmitted into her bank accounts because Walker had changed the vendors’ bank account information.
From February 2014 to February 2015, Walker embezzled $452,025.56. As part of her sentencing, the court also ordered Walker to pay full restitution to Southwestern Energy Co.
Walker was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI investigated. Assistant U.S. Attorney Michael Chu is prosecuting the case.
Drug Dealer Sentenced to 9 Years in Federal Prison for Distributing Heroin/Fentanyl to Two Customers who OverdosedRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Edward Dewy Viens, age 30, of North Beach, Maryland, today to 108 months in federal prison, followed by three years of supervised release, for conspiracy to distribute and possession with intent to distribute controlled substances. Judge Grimm also ordered Viens to forfeit $1,302, seized during the investigation.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Calvert County Sheriff Mike Evans; Calvert County State’s Attorney Laura Martin; and Anne Arundel County State’s Attorney Wes Adams.
“More than 50 Marylanders die every month from heroin, which may be poisoned with deadly additives, according to the Maryland Department of Health and Mental Hygiene,” said U.S. Attorney Rod J. Rosenstein. “If you know someone who uses heroin, get them help today before they become the next statistic.”
According to his plea agreement, from October to December 30, 2014, Viens obtained heroin and fentanyl from a supplier in Annapolis, and redistributed those drugs to users in Prince George’s, Calvert and Anne Arundel Counties.
On November 30, 2014, a Calvert County Sheriff’s Office (CCSO) patrol officer attempted to pull over a vehicle in Owings, Maryland for a traffic violation. When the officer activated his lights, the vehicle turned abruptly into a driveway and stopped. Viens got out of the vehicle and threw approximately 13 grams of heroin to the ground as he ran away, eluding arrest.
On December 21, 2014, Viens met one of his regular customers at a gas station in Calvert County and sold a gram of mixture containing heroin and/or fentanyl for $120. Afterwards, the customer and an acquaintance drove to a secluded area where the customer ingested the drugs. Almost immediately, the customer lost consciousness. The acquaintance called emergency personnel who performed CPR on the victim and administered Naloxone Hydrochloride (Narcan). The victim was subsequently admitted to a hospital and diagnosed with a heroin overdose.
A few days later on December 27, Viens met another customer in Calvert County and sold 1.5 grams of a mixture containing heroin and/or fentanyl for $210. Veins warned the customer to “be careful, people have been falling out over this. It’s fire, so just please be careful.” The customer drove to a nearby parking lot and ingested a small amount of the drugs. The customer then dropped off an acquaintance and drove to a second parking lot, ingesting more of the drugs. The customer drove a short distance from the parking lot, lost consciousness and struck a telephone pole. CCSO officers found the victim unconscious and unresponsive. They administered Narcan, and the victim was taken to a hospital and diagnosed with a heroin overdose.
On December 30, 2014, law enforcement officers executed a search warrant at Viens’ hotel room in Annapolis. They detained Viens, who was attempting to flush drugs and drug paraphernalia down the toilet. They seized a digital scale with heroin residue, material used to package drugs, a bag containing alprazolam and oxycodone pills, syringes and a residue from a table that contained fentanyl, caffeine and quinine. Law enforcement also recovered $302 from Viens’ wallet, and $1,000 from Viens’ front pants pocket, or that had spilled out of his pocket.
United States Attorney Rod J. Rosenstein commended the DEA, Calvert County Sheriff’s Office, and the Calvert County and Anne Arundel County State Attorney’s Offices for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Thomas M. Sullivan and Daniel C. Gardner, who prosecuted the case.
District Man Pleads Guilty to Federal Charge for Impersonating a Congressional Chief of StaffRead the Press Release
WASHINGTON – Jarrett Lewis, 35, pled guilty today to a federal charge stemming from his impersonation of the chief of staff of a member of Congress, announced U.S. Attorney Channing D. Phillips and Matthew R. Verderosa, Chief of the U.S. Capitol Police.
Lewis, of Washington, D.C., pled guilty in the U.S. District Court for the District of Columbia to a charge of false personation of an employee or officer of the United States. The charge carries a statutory maximum of three years in prison and potential financial penalties. Under federal sentencing guidelines, Lewis could face up to six months in prison and a fine. The Honorable Rudolph Contreras scheduled sentencing for Oct. 13, 2016.
According to a statement of offense submitted as part of the plea, from September 2014 through May 2015, Lewis falsely claimed to be a chief of staff for the Honorable John Lewis, a member of the U.S. House of Representatives. He did so to request admission and special privileges at a high-end restaurant, bar and lounge in Miami’s South Beach area and to seek field passes from the Washington Redskins for a football game. The scheme came to the attention of Congressman Lewis’s actual chief of staff, and led to a law enforcement investigation.
In announcing the plea, U.S. Attorney Phillips and Chief Verderosa commended the work of those who investigated the case from the U.S. Capitol Police. They also acknowledged the efforts of those who worked on the case at the U.S. Attorney’s Office, including Assistant U.S. Attorney Mervin A. Bourne, Jr., who is prosecuting the matter.
Court Shuts Down Houston-Area Tax Return PreparerRead the Press Release
Houston Man Allegedly Falsely Overstated Customers’ Itemized Deductions
A Houston, Texas, tax return preparer fraudulently lowered his clients’ federal income taxes by overstating the deductions they claimed on Schedule A (Itemized Deductions), according to a lawsuit filed by the Justice Department in May. Now a federal court has barred the defendant in that case from preparing tax returns for others.
Charles Lee Harrison admitted to the allegations in the government’s complaint, including that he prevented his clients from realizing that their returns contained false items by not reviewing the returns with his clients and by sometimes not showing his clients the Schedule A that contained he false deductions. Harrison also occasionally prepared returns that contained false credits and false Schedule F (Profit or Loss from Farming) losses. Harrison did business under the names Harrison and Harrison Services and Harrison Tax & Legal Services in Grimes County and Harris County, Texas. In 2014, Harrison pleaded guilty to willfully aiding and assisting in the preparation and presentation of a false tax return.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Corcoran Man Indicted for Multimillion Dollar Fraud in the Bakken Oil FieldsRead the Press Release
United States Attorney Andrew M. Luger today announced an indictment charging RONALD DAVID JOHNSON, 50, for stealing more than $2.1 million from victims hoping to invest successfully in the North Dakota oil boom. JOHNSON is charged with five counts of wire fraud, one count of money laundering. JOHNSON is expected to appear tomorrow before Magistrate Judge Becky R. Thorson in U.S. District Court in Saint Paul, Minn.
According to the indictment and documents filed in court, JOHNSON came up with an investment idea to address the need to house oil workers in the Bakken in North Dakota and Montana. The idea, registered as Indoor RV Parks, LLC, would allow oil workers to eschew more common barracks-style housing in favor of comfortable indoor RV parks, which would have been large warehouses where oil workers could park their RVs and have access to shared amenities like laundry and vending machines.
According to the indictment, JOHNSON fraudulently solicited $2.1 million from four investors in Indoor RV Parks, LLC, telling the investors that their money would be used to build and manage indoor RV parks for oil workers. Instead of using the invested money for RV parks, JOHNSON used more than $1.8 million to fund his personal cattle farm, take vacations, buy vintage Chevrolets, and purchase real estate, including an entire 17-acre island on Mink Lake in Maple Lake, Minn.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS and the FBI.
This case is being prosecuted by Assistant U.S. Attorney Joseph H. Thompson.
Defendant Information:RONALD DAVID JOHNSON, 50
Corcoran, Minn.Charges: • Wire fraud, 5 counts
• Money laundering, 1 countCoffee County Man Sentenced to Serve 262 Months in PrisonRead the Press Release
CHATTANOOGA, Tenn. – On July 20, 2016, Brian Lee Fielding, a.k.a. “Bull”, 35, of Coffee County, Tenn., was sentenced to serve 262 months in prison by the Honorable Curtis L. Collier, U.S. District Judge.
Fielding pleaded guilty in March 2016 to a federal indictment charging him with, among other things, conspiracy to distribute and possess with the intent to distribute 50 grams or more of methamphetamine (actual) and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
Information on file with the U.S. District Court, shows that Fielding conspired with others to distribute and possess with the intent to distribute methamphetamine in the Eastern District of Tennessee and elsewhere from January 2015 until at least September 2015. His role in the conspiracy was to obtain methamphetamine for others to distribute in furtherance of the conspiracy. As part of his plea agreement, Fielding admitted that he personally distributed one kilogram of methamphetamine (actual) in furtherance of the conspiracy.
Fielding was classified as a “career offender” under federal law because he had two prior drug trafficking convictions, including a 2009 conviction for distribution of cocaine in Coffee County. He committed the instant offense shortly after being released from prison on his conviction for distribution of cocaine. His federal sentence reflected his prior state convictions and the risk of harm his conduct posed to society. Judge Collier also recommended that Fielding participate in a drug treatment program while he is in prison.
The indictment and subsequent conviction of Fielding was the result of an investigation conducted by the Federal Bureau of Investigation, Manchester Police Department, Coffee County Sheriff’s Office, Winchester Police Department, and Tennessee Highway Patrol. Assistant U.S. Attorney Michael D. Porter represented the United States.
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Cleveland man pleads guilty to crack cocaine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Donny Deshawn Parker, 24, of Cleveland, Ohio, pled guilty to crack cocaine distribution in federal court today, United States Attorney William J. Ihlenfeld, II, announced.
Parker pled guilty to one count of “Distribution of Cocaine Base.” He admitted to selling crack cocaine in Marshall County, WV. He faces up to twenty years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Marshall County Drug Task Force investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Chicago-Based Drug Courier Sentenced to Four Years in Federal Prison for Participating in Multi-State Heroin Trafficking ConspiracyRead the Press Release
SCRANTON-The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 37-year-old Mexican national who resided in Chicago at the time of his arrest was sentenced on Tuesday to serve four years in prison by U.S. District Court Judge Robert D. Mariani in Scranton for his role in a drug conspiracy that was responsible for distributing large quantities of heroin during a four-year time period in Monroe, Carbon, Montgomery, and Berks Counties in Pennsylvania.
According to United States Attorney Peter Smith, the defendant, Gilberto Bautista-Ocampo, previously admitted to acting as a courier to transport heroin from Chicago to Pennsylvania during February 2014.
Bautista-Ocampo was indicted by a federal grand jury in March 2014, as a result of an investigation by the Drug Enforcement Administration (DEA), Homeland Security Investigations, the Pennsylvania State Police, the Pennsylvania Attorney General’s Office, Berks County Detectives and Montgomery County Detectives.
Judge Mariani also noted that the defendant faces possible deportation as a result of his criminal conduct.
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.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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Chicago Man Sentenced to More Than 72 Years for Multiple Armed Bank RobberiesRead the Press Release
GRAND RAPIDS, MICHIGAN —U.S. Attorney Patrick A. Miles, Jr., announced today that Dominick T. Johnson, 34, of Chicago, Illinois, was sentenced to 72 years and eight months in prison by U.S. District Judge Gordon J. Quist. Johnson was convicted by a jury in January of seven crimes—including conspiracy, bank robbery, and firearms charges—after a two-week trial.
Johnson planned and served as the get-away driver for three completed bank robberies in and around Kalamazoo: the May 29, 2014, robbery of PNC Bank in Galesburg, the July 29, 2014, robbery of Comerica Bank in Comstock Township, and the January 8, 2015, robbery of Old National Bank in Oshtemo Township. Johnson’s half-brother, Nathan Benson, previously pled guilty for his role in the robberies. In all three robberies, Benson brandished a loaded firearm and pointed it at bank employees. In two of the robberies, Benson forced the employees into the bank’s vault. The conspiracy also involved three planned bank robberies that were unsuccessful; two were disrupted by law enforcement and one was thwarted by a traffic accident. One significant piece of evidence that led to the conviction of Johnson was the recovery of DNA evidence from a partially eaten hamburger recovered from the bank robbers’ path of flight from the Old National Bank robbery. Johnson also listened to two of the robberies via cell phone calls to Benson, while Johnson’s cell phone was registering with towers near the banks. Benson was sentenced to 14 years’ imprisonment in March.
“The Court’s sentence is an unambiguous message: violent crime will not be tolerated in Western Michigan,” said U.S. Attorney Miles. “The defendant placed the lives of bank employees and customers in extraordinary danger by orchestrating these robberies, and now he will face the consequences of his decisions.”
The investigation was led by the FBI and the Kalamazoo County Sheriff’s Office. Other assisting agencies were the Michigan State Police, the Kalamazoo Department of Public Safety, the Baroda-Lake Township Police Department, the Galesburg Police Department, and the Van Buren County Prosecutor’s Office.
Assistant U.S. Attorneys Justin M. Presant and Hagen W. Frank prosecuted the case.END
Canadian Woman Pleads Guilty to Attempting to Enter the United States IllegallyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Marta Sawicka, 35, of Canada, pleaded guilty to attempting to enter the United States at a time or place other than as designated by immigration officers, before U.S. Magistrate Judge H. Kenneth Schroeder. The defendant was then sentenced to time served.
According to Assistant U.S. Attorney Aaron J. Mango, who handled the case, on July 18, 2016, Sawicka was found illegally entering the United States from Canada by walking across the upper level of the Whirlpool Rapids Bridge around 2:30 a.m. The upper level of the Whirlpool Rapids Bridge is designated solely for railroad traffic and is clearly marked with signs as a no trespassing area. The lower level of the Whirlpool Rapids Bridge is designated for passenger vehicle traffic and is in operation only between the hours of 7:00 a.m. and 11:00 p.m. daily. Outside of these hours the lower level of the bridge is closed with locked gates preventing vehicle or pedestrian traffic between the United States and Canada. The defendant was spotted by a Border Patrol officer and arrested.
During processing at the Border Patrol Station, Sawicka was fingerprinted which revealed prior immigration history. In February 2016, the defendant attempted to enter the United States at the Highgate Springs Port of Entry in Vermont but was stopped by Customs and Border Protection Officers. Sawicka was removed and was barred from reentering the United States for a period of five years.
The plea and sentencing are the culmination of an investigation by U.S. Border Patrol, under the direction of Chief Patrol Agent Brian Hastings.
California Man Sentenced for Fraud Scheme Involving Bank of AmericaRead the Press Release
RICHMOND, Va. – Danny Lamar Andrews, 54, of Richmond, California, was sentenced today to 84 months in prison for bank fraud and aggravated identity theft. He was also ordered to pay $69,500 restitution to Bank of America and to serve five years of supervised release when released from prison.
Andrews pleaded guilty on March 18. According to court documents, Andrews entered Bank of America branches in Pennsylvania, New Jersey, and Virginia while impersonating Bank of America account holders. He withdrew funds from their accounts using stolen debit card numbers and false identifications. Bank of America incurred $69,500 in actual losses and Andrews attempted other unsuccessful transactions totaling $46,000 in intended losses arising from aborted transactions. Over the last 17 years Andrews has a dozen prior convictions, 10 of which were for fraud or theft related offenses, over the last seventeen years.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Douglas F. Mease, Special Agent in Charge of the U.S. Secret Service’s Richmond Field Office; and Humberto I. Cardounel, Jr., Chief of Henrico County Police Division, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr. Assistant U.S. Attorney Michael C. Moore prosecuted the case.
This case was investigated by the Metro-Richmond Identity Theft Task Force. They were assisted by the police departments in Pennsylvania and New Jersey. Prosecutions for the Task Force are handled by the U.S. Attorney’s Office and the Office of the Attorney General for the Commonwealth of Virginia.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:16-cr-34.
Buffalo Woman Indicted for Conspiring to Threaten, Solicit Violence on TwitterRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that additional charges have been filed against a Buffalo, Mo., woman for conspiring to solicit violence against federal agents and military service members by utilizing various Twitter accounts.
Safya Roe Yassin, 38, of Buffalo, was charged in a three-count superseding indictment returned by a federal grand jury in Springfield, Mo., on Tuesday, July 19, 2016. The superseding indictment replaces an indictment returned on Feb. 23, 2016, and includes an additional count of transmitting a threatening communication and a new conspiracy count.
The federal indictment alleges that Yassin conspired with others from May 2015 to Feb. 18, 2016, and utilized Twitter to disseminate information that they believed to be from the Islamic State of Iraq and the Levant (ISIL). That information allegedly included threats and solicitations of violence against two current employees of the FBI and two former U.S. service members.
When Twitter suspended an account for violations of its terms of service, the indictment says, Yassin and her co-conspirators created new accounts in a manner that could be readily identified, so that followers of their prior accounts could find the new accounts. When new accounts were established, Yassin and her co-conspirators promoted the newly created Twitter accounts of other co-conspirators in order to maintain a constant presence of Twitter accounts providing information that they believed to be from ISIL.
In addition to the conspiracy, Yassin is charged with two counts of transmitting a threatening communication over the Internet.
According to the indictment, on Aug. 24, 2015, Yassin posted on Twitter a message previously posted by another user with the explicit phrase “Wanted to kill” followed by the first and last name, status as an employee of the FBI, city of residence, zip code and phone number of Victim 1. In the same communication, Yassin allegedly repeated the same explicit “Wanted to kill” phrase followed by the first and last name, status as an employee of the FBI, city of residence, zip code and phone number of Victim 2. This charge was contained in the original indictment.
According to the indictment, on Oct. 8, 2015, Yassin posted on Twitter a message previously posted by another user that contained a link to a document with the name and home address for a former U.S. service member identified as Victim 3, photos of Victim 3 with his family, and the names of Victim 3’s spouse and children along with the explicit phrase “to eventually hunt him down & kill him.” The document also contained the name and home address of Victim 4, a former U.S. service member who had been the previous target of solicitations to commit a crime of violence and threats on social media.
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. Attorneys Brian Casey and Abram McGull II. It was investigated by the FBI.
Bogalusa Man Sentenced for Oxycodone DistributionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DONALD FONTENOT, age 63, of Bogalusa, was sentenced today after previously pleading guilty to four counts of selling oxycodone tablets to an undercover Drug Enforcement Administration agent. Oxycodone is a prescription-only Schedule II controlled substance and a highly addictive and abused opioid drug.
U.S. District Judge Kurt D. Engelhardt sentenced the defendant to a term of imprisonment of 24 months, 3 years of supervised release, and a $400 special assessment.
U.S. Attorney Polite praised the work of the DEA Tactical Diversion Squad in investigating this matter. Assistant United States Attorney Michael B. Redmann was in charge of the prosecution
Basin Man Sentenced to 18 Months for Clean Water Act Violations and Destruction of U.S. PropertyRead the Press Release
MISSOULA – Joseph David Robertson, 77, was sentenced today to eighteen months in prison and three years’ supervised release for unauthorized discharge of pollutants into waters of the United States and injury or depredation of United States property. Robertson must also pay $129,933.50 in restitution. U.S. District Court Judge Donald W. Molloy issued the sentence and ordered that Robertson be detained immediately. Robertson was convicted in April following a four day federal trial.
Robertson was indicted by a grand jury in May of 2015 as a result of illegal ponds he built on two parcels of land near Basin, Montana, one on Beaverhead-Deerlodge National Forest land and the other on adjacent private property. Robertson has continually asserted that he owns the property where ponds were built, but he does not. The ponds resulted in the discharge of dredged and fill material into a tributary stream and adjacent wetlands and caused widespread damage to both properties.
At trial, the government introduced evidence that in October of 2013, a United States Forest Service (USFS) Special Agent visited the National Forest property to determine whether Robertson had complied with previously issued conditions of probation for misdemeanor violations of USFS regulations. The Agent testified at trial that during the site visit, she observed multiple ponds dug into an existing stream on both USFS and adjacent private property not owned by Robertson.
During a subsequent site visit in November of 2013, Robertson admitted to Environmental Protection Agency (EPA) and USFS Criminal Special Agents that he had performed the work on the National Forest property using an excavator. State and federal officials visited the site again in May of 2014, and observed that Robertson had done additional work. The site was now approximately 1.2 acres in size, and extended beyond the National Forest property to a private property that he did not own. The work consisted of nine ponds of varying sizes, including some as large as approximately 4900 square feet that were placed directly in the stream and wetlands area. Unconsolidated dredged material from the ponds had been used to create the berms and had been placed in and around the stream and wetlands. Robertson admitted that he had completed the additional work. Additional investigation revealed that Robertson continued to construct ponds on the USFS property after May of 2014, despite being told repeatedly that he had no legal right to do so.
One of the central legal issues at trial was whether the waters polluted by Robertson were “waters of the United States” for purposes of the Clean Water Act. The United States introduced evidence and expert testimony from the Army Corps of Engineers and the EPA that the stream and wetlands had a significant nexus to traditional navigable waters, and therefore were “waters of the United States.” Fishery biologists from the Montana Fish, Wildlife and Parks (FWP) and the USFS testified that this headwater and wetland complex provided critical support to trout in downstream rivers and fisheries, including the Boulder and Jefferson Rivers.
“Robertson damaged federal land that the government holds in trust for the people of the United States,” said United States Attorney for the District of Montana Mike Cotter. “Clean waterways and healthy riparian ecosystems benefit the people who are the true owners of our public lands. This is not merely an issue of dumping a little dirt into a small stream, it is an illustration of the fact that waterways and riparian ecosystems are interconnected, and this type of destruction has significant environmental consequences downstream. This sentence sends a message that meaningful enforcement of environmental laws serves to protect resources owned by all Americans.”
“Like all Americans, Montana residents expect their local waterways to be clean and free of pollution,” said Jeffrey Martinez, Special Agent in Charge of EPA’s criminal enforcement program in Montana. “This defendant is a repeat violator, with the conduct in this case affecting a Montana waterway, National Forest Service Lands, and private property not belonging to the defendant. The EPA and its law enforcement partners are committed to protecting public health and our nation’s natural resources.”
The case was prosecuted by Assistant U.S. Attorney Bryan Whittaker and Special Assistant U.S. Attorney Eric Nelson from the United States Environmental Protection Agency. This case was investigated by multiple state and federal agencies including the United States Forest Service, the Environmental Protection Agency Criminal Investigation Division, the Army Corps of Engineers, and the Jefferson County Sheriff’s Office. Other agencies that assisted the investigation included Montana Fish, Wildlife and Parks and the Jefferson Valley Conservation District.
Baltimore Armed Robber Sentenced to over 15 Years in Federal Prison for Two Store RobberiesRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Donte Maurice Johnson, age 30, of Baltimore, Maryland, to 183 months in federal prison, followed by five years of supervised release, for two commercial robberies and for using and brandishing a firearm during a crime of violence. The sentencing was held on July 19, 2016.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Commissioner Kevin Davis of the Baltimore Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his plea agreement, on November 2, 2013, Johnson robbed a grocery on Claremont Avenue in Baltimore. Johnson held a shotgun to the store owner’s head and demanded money. A co-conspirator stood inside the door as a look-out. The robbers took between $600 and $700.
On November 25, 2013, Johnson and the co-conspirator robbed a convenience store, located on Philadelphia Road in Baltimore. Specifically, two employees were working at the counter area of the store and two men approached the counter. Donte Johnson pointed a shotgun at both employees and demanded that they open the registers. In fear for their lives, the clerks complied. Johnson reached over the counter and obtained money from one register. The co-conspirator walked behind the counter and retrieved money from another register. The total loss to the store was $153.
Donte Johnson continued to rob the store’s customers. As this was happening, a customer was able to leave the store and get into his vehicle, which was parked in the store’s parking lot. He called 911 and waited for the robbers to exit. The customer saw the robbers run across Philadelphia Road to the parking lot of a bar across the street, and enter a dark green Honda Civic. The customer followed Johnson and the co-conspirator so he would be able to give directions to the police. Once the robbers turned onto Square Ridge Road, the car stopped, and Donte Johnson fired one round from a shotgun at the customer in his vehicle.
Baltimore County Police detectives were able to locate the shotgun used in the convenience store robbery. The shotgun had two unfired shotgun shells lying on the ground next to it and one fired shotgun shell casing loaded in the action of the gun.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Baltimore City Police Department and the Baltimore County and Baltimore City State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys David Metcalf and Bonnie S. Greenberg, who prosecuted the case.
Australian Man Pleads Guilty to Traveling to the U.S. to Engage in Illicit Sexual Conduct with a 6-Year-Old BoyRead the Press Release
LOS ANGELES – An Australian geneticist pleaded guilty this morning to traveling to Los Angeles to engage in illicit sexual conduct with a 6-year-old boy.
Michael Quinn, 33, of Melbourne, pleaded guilty today before United States District Judge John F. Walter, who scheduled a sentencing hearing for October 3.
“Mr. Quinn traveled to the United States to have sex with a young child,” said United States Attorney Eileen M. Decker. “Fortunately, law enforcement was able to ensure that no child was put in harm’s way and that Mr. Quinn would face severe consequences for his conduct.”
Quinn was arrested on May 21 by special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) when he arrived at a Los Angeles-area hotel to buy a 6-year-old boy for sex.
According to documents filed in the case, the investigation began in May 2016 after undercover agents met Quinn on a social networking site that caters to individuals with a sexual interest in children. Quinn admitted during today’s hearing that he told undercover agents he was traveling to Los Angeles and wanted to “meet up with a dad who shares his young ones.” Specifically, Quinn told the agents, whom he believed were like-minded people, that he was hoping to meet “other pervs” in the U.S.
Quinn ultimately agreed to pay a human trafficker $250 to provide him with a young boy with whom he could engage in illicit sex. Once Quinn arrived in Los Angeles, he was arrested after paying another undercover agent $260. According to Quinn, “a dominant purpose of his travel was to anally sodomize someone he knew was a 6-year-old boy.”
“As this case makes clear, Homeland Security Investigations is using all of the tools and resources at its disposal to combat the sexual exploitation of children by pedophiles who’re trolling the internet searching for victims,” said Joseph Macias, special agent in charge for HSI Los Angeles. “Pedophiles in the United States, or anywhere in the world, who believe they can escape the detection of law enforcement by traveling to another county to commit heinous crimes against children should be on notice. Cyberspace and international borders will not be barriers to bringing you to justice.”
Pursuant to the plea agreement, if ultimately accepted by the Court, Quinn will face a federal prison sentence of between 10 years and 160 months.
This case is a product of Project Safe Childhood, a Department of Justice initiative launched in 2006 to combat the growing epidemic of child sexual exploitation and abuse, and HSI’s Operation Predator, an international initiative to protect children from sexual predators.
The case against Quinn is being prosecuted by Assistant United States Attorney Joey Blanch of the Violent and Organized Crime Section.
Led by the U.S. Attorneys’ Offices and the DOJ Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals state and local resources to locate, apprehend and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Attorney General Loretta E. Lynch Statement on Court of Appeals Ruling in Texas Voter ID CaseRead the Press Release
Attorney General Loretta E. Lynch released the following statement today after the Fifth Circuit Court of Appeals ruled against Texas’s voter ID law:
“I am pleased with today’s decision by the full U.S. Court of Appeals for the Fifth Circuit holding that Texas’s 2011 photographic voter identification law violates Section 2 of the Voting Rights Act. This decision affirms our position that Texas’s highly restrictive voter ID law abridges the right to vote on account of race or color, and orders appropriate relief before yet another election passes.”
Alexandria man sentenced to 20 months in prison for trying to send obscene images to a minorRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that an Alexandria man was sentenced to 20 months in prison for attempting to send obscene material to a minor.
William Ware, 40, of Alexandria, La., was sentenced by U.S. District Judge Dee D. Drell on one count of attempting to transfer obscene material to a minor. He was also sentenced to three years of supervised release and must register as a sex offender. According to the April 12, 2016 guilty plea, on December 9, 2014, Ware contacted what he believed was a 13-year-old minor female using social media over the internet. He then sent the purported minor two sexually explicit videos using an internet chat service. The minor was in fact an undercover law enforcement agent, and Ware was later arrested.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Jamilla A. Bynog is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, 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 U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) also encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
Albuquerque Man Pleads Guilty to Federal Bank Robbery ChargeRead the Press Release
ALBUQUERQUE – Christian Tafolla, 26, of Albuquerque, N.M., pled guilty today in federal court to robbing an Albuquerque-area Wells Fargo Bank branch on March 18, 2016.
Tafolla was arrested on March 21, 2016, and charged by criminal complaint with robbing the Wells Fargo Bank located at 8100 Wyoming Blvd. in Albuquerque, on March 18, 2016. The complaint alleged that Tafolla robbed the bank by handing the bank teller a note demanding money. Tafolla was arrested later that day after Albuquerque Police Department officers observed Tafolla entering a store near the Wells Fargo Bank.
Tafolla subsequently was indicted on April 12, 2016. During today’s proceedings, Tafolla pled guilty to the indictment and admitted robbing the bank on March 18, 2016.
At sentencing, Tafolla faces a maximum penalty of 20 years in federal prison. Tafolla remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Edward Han is prosecuting the case.
19 July 2016
Woman Sentenced in Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a Jennifer L. Cadwallader, 39, who was convicted of wire fraud and filing false tax returns, was sentenced to five years probation, including six months home confinement, by Chief U.S. District Judge Frank P. Geraci.
According to Assistant U.S. Attorney Trini E. Ross, who handled the case, the defendant was employed as the Office Manager for American Paving and Excavating, LLC (“American Paving”) from 2009 to 2015. Cadwallader’s responsibilities included accounts payable, maintaining books and records, the accounting system, paying bills, payroll, and deposits.
Between 2012 and 2014, the defendant accessed American Paving’s bank account and electronically transferred $338,329.12 from the corporate bank account to her personal credit card accounts. These electronic transfers were not authorized by American Paving and were done without American Paving’s knowledge or consent. In an attempt to conceal the theft, Cadwallader recorded the payments to her personal credit card accounts as credit card and fuel expenses on American Paving’s books and records.
In that same time period, the defendant failed to report the income from the electronic transfers totaling $338,329.12 to the Internal Revenue Service. Taxes due on the income totaled $108,026.00.
The sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen.
West Haven Man Sentenced to Federal Prison for Distributing Heroin Involved in Overdose DeathRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHRISTOPHER FOGLER, 31, of West Haven, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for distributing heroin that was involved in an overdose death in Milford in January 2015.
According to court documents and statements made in court, on January 12, 2015, a 39-year-old male died from an apparent heroin overdose at a residence in Milford. The investigation, which included analysis of text messages captured from the decedent’s cellular telephone, revealed that FOGLER and Alyssa Jelliffe sold the decedent $170 worth of heroin on the evening of January 11, 2015.
On January 16, 2015, a court-authorized search of FOGLER and Jelliffe’s residence revealed approximately 10 bags of heroin and assorted drug paraphernalia, including a digital scale, razor blades and cut straws.
FOGLER and Jelliffe were arrested on January 16, 2015.
On April 19, 2016, FOGLER pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin. Jelliffe, 23, pleaded guilty to the same charge on July 15, 2016. She awaits sentencing.
U.S. Attorney Daly noted that the U.S. Attorney’s Office, DEA and police departments across Connecticut are working together to investigate and prosecute narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
This investigation was conducted by the DEA’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Milford Police Department. The case is being prosecuted by Assistant U.S. Attorney Alina P. Reynolds.
Warren County Man Pleads Guilty to Transporting a Minor Across State LinesRead the Press Release
St. Louis, MO – Christopher Schroeder pled guilty to transporting a minor across state lines to engage in criminal sexual activity.
According to court documents, in late October 2015 or early November 2015, Schroeder met fifteen-year-old female A.B. through KIK, an internet chat forum. A.B. was living in Brooklyn, Ohio, at the time.
On or about November 8, 2015, Schroeder drove to Brooklyn, Ohio, and picked up fifteen-year-old A.B. at an agreed upon location.
Schroeder drove them to his residence in Marthasville. Sometime after arriving at his home, he engaged in sexual intercourse with A.B. Two of these sex acts were recorded by Schroeder without the victim’s knowledge.
Schroeder, Marthasville, MO, pled guilty to one felony count of transportation of a minor with intent to engage in criminal sexual activity before United States District Judge Henry Autrey. Sentencing has been set for October 19, 2016.
This charge carries a penalty range of ten years to life in prison and/or fines up to $250,000, followed by supervised release for life. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation, the Brooklyn Police Department, St. Charles County Internet Crimes Against Children Task Force and the Warren County Sheriff’s Department. Assistant United States Attorney Colleen Lang is handling the case for the U.S. Attorney’s Office.
United States Files Suit against DynCorp International Alleging Submission of False Claims under State Department ContractRead the Press Release
The United States filed a False Claims Act complaint against DynCorp International Inc. (DynCorp) alleging that it knowingly submitted inflated claims in connection with a State Department contract to train Iraqi police forces (CIVPOL contract), the Department of Justice announced today. The United States filed the complaint in the U.S. District Court for the District of Columbia. DynCorp, which is headquartered in McLean, Virginia, is a wholly-owned subsidiary of Delta Tucker Holdings Inc.
In April 2004, the State Department’s Bureau for International Narcotics and Law Enforcement Affairs awarded the CIVPOL contract to DynCorp to provide training for civilian police forces in Iraq and other services needed to support that effort, such as trainers, guards, translators, vehicles and living quarters for contractor personnel. In its complaint, the United States alleges that DynCorp knowingly allowed one of its main CIVPOL subcontractors to charge excessive and unsubstantiated rates for hotel lodging, translator, security guard and driving services and overhead expenses, and included these charges in the claims it submitted under the CIVPOL contract to the State Department. The complaint also alleges that DynCorp added its own markup to its subcontractor’s excessive charges, thereby further inflating the claims it submitted to the government.
“Companies that contract with the United States have an obligation to deal fairly and openly with the government,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Attempting to take advantage of the American taxpayers in times of war is a shameful abuse of this responsibility.”
“The United States relies on its contractors to be forthcoming with accurate information and to act responsibly in return for receiving the taxpayers’ money,” said U.S. Attorney Channing D. Phillips of the District of Columbia. “Our office is committed to recovering funds from those who fail to adhere to those responsibilities and obligations.”
The civil complaint in this action is the result of an investigation by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Columbia and the State Department’s Office of Inspector General.
The case is captioned United States v. DynCorp International, Inc., No. 1:16-cv-01473 (D.D.C.). The claims asserted in the complaint are allegations only, and there has been no determination of liability.
United States Files Suit Against DynCorp International, Alleging the Submission of False Claims Under State Department ContractRead the Press Release
WASHINGTON - The United States filed a False Claims Act complaint against DynCorp International Inc. (DynCorp) alleging that it knowingly submitted inflated claims in connection with a State Department contract to train Iraqi police forces (CIVPOL contract), the Department of Justice announced today. The United States filed the complaint in the U.S. District Court for the District of Columbia. DynCorp, which is headquartered in McLean, Virginia, is a wholly-owned subsidiary of Delta Tucker Holdings Inc.
In April 2004, the State Department’s Bureau for International Narcotics and Law Enforcement Affairs awarded the CIVPOL contract to DynCorp to provide training for civilian police forces in Iraq and other services needed to support that effort, such as trainers, guards, translators, vehicles and living quarters for contractor personnel. In its complaint, the United States alleges that DynCorp knowingly allowed one of its main CIVPOL subcontractors to charge excessive and unsubstantiated rates for hotel lodging, translator, security guard and driving services and overhead expenses, and included these charges in the claims it submitted under the CIVPOL contract to the State Department. The complaint also alleges that DynCorp added its own markup to its subcontractor’s excessive charges, thereby further inflating the claims it submitted to the government.
“Companies that contract with the United States have an obligation to deal fairly and openly with the government,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Attempting to take advantage of the American taxpayers in times of war is a shameful abuse of this responsibility.”
“The United States relies on its contractors to be forthcoming with accurate information and to act responsibly in return for receiving the taxpayers’ money,” said U.S. Attorney Channing D. Phillips. “Our office is committed to recovering funds from those who fail to adhere to those responsibilities and obligations.”
The civil complaint in this action is the result of an investigation by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Columbia and the State Department’s Office of Inspector General.
The case is captioned United States v. DynCorp International, Inc., No. 1:16-cv-01473 (D.D.C.). The claims asserted in the complaint are allegations only, and there has been no determination of liability.
Two Members of Violent Drug Trafficking Ring Sentenced to PrisonRead the Press Release
Two men who were significantly involved in a violent drug trafficking organization distributing meth, heroin and cocaine in the Seattle area were sentenced today in U.S. District Court in Seattle, announced U.S. Attorney Annette L. Hayes. SON T. NGUYEN, aka “Nine Fingers” aka “Kim,” 43, of Seattle, was sentenced to ten years in prison and LONG V. TRONG aka “Black Long,” 43, of Seattle, was sentenced to six years in prison. The two men were both mid-level members of the drug ring, distributing drugs and using firearms to enforce rules and protect their drug territory. U.S. District Judge John C. Coughenour imposed the sentence.
The two year investigation lead by the FBI’s Seattle Safe Streets Task Force (SSTF) and Bellevue Police Department’s Eastside Narcotics Task Force (ENTF) revealed that each month the organization distributed 15-20 kilos of cocaine, 10-15 kilos of heroin and five kilos of methamphetamine across a wide swath of the greater Seattle metro area. The two leaders of the drug ring were convicted at trial in April 2016.
Drug activity associated with the organization occurred over a wide geographic area with many drug sales occurring in the “Jungle” homeless encampment, as well as at homes and near businesses in Seattle, Renton, Shoreline and Kent. LONG V. TRONG controlled the drug sales in an area of the ‘Jungle’ and had other people working for him as drug sellers in the area. Evidence obtained during a court authorized wiretap of phones associated with the criminal group revealed TRONG and others discussed assaults and a homicide in the Jungle tied to the drug trafficking activity.
On multiple occasions members of the drug trafficking organization were arrested with firearms. SON T. NGUYEN delivered a firearm to one of the coconspirators intending that it be used in a violent crime. When he was arrested, SON T. NGUYEN also possessed numerous firearms despite a lengthy criminal history which barred him from possessing guns.
These defendants have already pleaded guilty and been sentenced to prison:
Phuong A. Nguyen, aka “P,” 42, of Kent, Washington – 12 years
Brieanna K. Carlson, 27, of Seattle, Washington – three years
Kimberle S. Alojasin, aka “Nguyen,” 56, of South King County – four years
Kenneth W. Thomas, 55, of SeaTac, Washington – four years
Yen T. Vu, 55, of Seattle – three years
Tony V. Nguyen, 23, of Seattle – two years
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved. This investigation was led by the FBI’s Seattle Safe Streets Task Force (SSTF) and Bellevue Police Department’s Eastside Narcotics Task Force (ENTF). The SSTF includes task force officers from the Seattle Police Department, and the ENTF is composed of Bellevue Police Department officers, and agents and officers from the Washington State Patrol, U.S. Postal Inspection Service, and the Redmond, Kirkland, and Mercer Island police departments in partnership with the King County Prosecuting Attorney’s Office. Additional assistance was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Drug Enforcement Administration (DEA) and ICE’s Homeland Security Investigations (HSI), King County Sheriff’s Office, the Washington State Department of Corrections, and the Kent and Tukwila police departments, and the Seattle Fire Department.
The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and Kate Vaughan.
Twice Convicted Armed Robber Hammered with 54-Year Prison TermRead the Press Release
HOUSTON – A Houston man, already sentenced to 330 months for one bank robbery, just received another 319-month-term of imprisonment for his role in the armed robbery of a bank in The Woodlands in 2014, announced U.S. Attorney Kenneth Magidson.
Keith Stephens, 28, pleaded guilty Feb. 26, 2016, to aiding and abetting bank robbery and brandishing a firearm in commission of a crime of violence related to the armed bank robbery of the Chase Bank on West Panther Creek in The Woodlands, on June 27, 2014. Today, U.S. District Judge Melinda Harmon considered the role Stephens played in the robbery, the use of a gun in the offense, the way the victims were treated and amount of money taken. She also determined that Stephens had planned and organized the armed robbery. She sentenced him to 235 months for the bank robbery and a consecutive 84 months for the firearms charge.
Stephens was also convicted in the armed robbery of the JP Morgan Chase Bank located on South Fry Road in Katy on July 16, 2014. Last week, U.S. District Judge David Hittner ordered Stephens to serve a total of 330 months in federal prison for that crime.
In handing down the sentence today, Judge Harmon ordered Stephens’ term of imprisonment to be served consecutively to the previous sentence, resulting in a total of 649 months in prison, more than 54 years.
“Prosecutions of those involved in serial bank and armored car robberies will continue to be a priority for federal law enforcement and their state and local partners,” said Magidson. “The severe sentence handed down today should serve as a significant deterrent to others who participate in violent crimes that put life in jeopardy.”
On June 27, 2014, while Stephens waited outside as a lookout, Crystal Lashay Lewis, 23, of Houston, entered the bank and checked the interior for armed surveillance. Also acting as lookout was Zachary Loudd, 24, of Houston. Once Lewis had exited the bank, Stephens ordered Jerrell Devon James, 22, and Andrew Demon Holley, 23, both of Houston, to enter.
They robbed the bank while wearing masks, gloves and carrying handguns. During the robbery, they also pointed their guns at employees and customers. After exiting with the stolen money, they drove a stolen pickup truck to a predetermined site where they abandoned the vehicle and entered an SUV driven by Randale Deshay Jackson, 29, also of Houston. Jackson drove the men to Stephens’ residence where the money was divided among them.
James, Loudd, Lewis and Holley, who also pleaded guilty to their respective roles in the robbery, are scheduled to be sentenced before Judge Harmon later this month.
Jackson is charged in a separate case with the armed robbery of a pharmacy in Tomball on Sept. 11, 2014.
The Montgomery County Sheriff’s Office and the FBI conducted the investigation. Assistant U.S. Attorneys Celia Moyer and Richard D. Hanes are prosecuting the case.