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Tuesday 31 May 2016
Rigby Man Sentenced for Bankruptcy FraudRead the Press Release
POCATELLO – Kim Thompson, 49, of Rigby, Idaho, was sentenced today to three years of probation, including six months of home confinement for bankruptcy fraud, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Thompson to pay a fine of $3,000. Thompson pleaded guilty on February 10, 2016.
According to the plea agreement, on October 14, 2010, Thompson filed bankruptcy in the United States Bankruptcy Court for the District of Idaho. As part of those proceedings, Thompson testified under oath at the meeting of creditors that he had no aircraft or accessories. Thompson subsequently admitted that he had purchased a Piper Arrow aircraft in 2009. He admitted that he lied under oath about his ownership of the plane and stated that he never transferred the registration or ownership documents into his name in order to conceal ownership of the airplane from the bankruptcy trustee. He further stated that he hoped to use the plane in a business after completion of the bankruptcy and was afraid he would lose the plane if he disclosed it to the trustee.
The case was investigated by the Internal Revenue Service, Criminal Investigations (IRS-CI).
Raven, Virginia Man Pleads Guilty to Child Pornography, Gun ChargesRead the Press Release
ABINGDON, VIRGINIA – A Virginia man, who admitted to viewing depictions of child pornography and to possessing an illegal firearm, pled guilty to related charges in Federal Court, United States Attorney John P. Fishwick Jr. announced today.
Tony Michael Spencer, 42, of Raven, Virginia, pled guilty today to one count of receiving a depiction of a minor engaged in sexual explicit conduct and one count of possessing a short barreled shotgun.
“Protecting our children from predators who wish to exploit them is the most important thing we in law enforcement can do,” United States Attorney John P. Fishwick Jr. said today. “Technology is evolving at speeds that are difficult to keep up with, but we must be vigilant in talking to our children and keeping them safe online and knowing who they are spending their time with, both online and in person.”
“Children should be cared for and nurtured, not victimized and exploited. The FBI will continue to use investigative resources available to them to identify and hold accountable those who prey on these innocent victims,” said Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Division.
According to evidence presented at the guilty plea hearing by Assistant United States Attorney Zachary T. Lee, after obtaining information that Spencer was part of a group of individuals utilizing a website on the internet to distribute child pornography, the Federal Bureau of Investigation executed a search warrant on Spencer’s residence on August 6, 2015. At the time of the search warrant, Spencer admitted to viewing child pornography on the website and FBI agents also located an unregistered sawed-off shotgun in the residence.
To date, the FBI’s examination of Spencer’s computers seized at the time of the search has located more than 300,000 images of child pornography.
The investigation of the case was conducted by Federal Bureau of Investigation. Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
Oakland Dentist Pleads Guilty to Tax EvasionRead the Press Release
OAKLAND – Jack Carlo Isaacs pleaded guilty today to tax evasion announced United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf.
According to the plea, Isaacs, 73, of Oakland, has been a practicing dentist since 1972, specializing in endodontics, root canals, and dental implants. From 1997 through the present, Isaacs owned and operated Isaacs Dental, Inc. Isaacs acknowledged that as of September 26, 2012, he knew he had unpaid federal income tax liabilities for 2002, 2003, 2005, 2009, 2010 and 2011in the amounts of $35,128.09; $47,313.00; $6,418.00; $31,692.00; $41,739.00; and $9,013.00, respectively. Further, Isaacs admitted that between September 26, 2012, and April 2, 2013, he attempted to evade and defeat the payment of his federal income tax liabilities by committing various affirmative acts, including the following:
- On or about September 26, 2012, Isaacs sent a check to the IRS in the amount of $414,300, to be applied to his tax liabilities for 2003, 2005, 2009 and 2010, knowing that there were insufficient funds in that account, and that he had closed the account.
- On or about November 9, 2012, Isaacs sent a check to the IRS in the amount of $9,122, to be applied to his 2011 tax liability, knowing there were insufficient funds in that account, and that he had also closed this account.
- On or about March 8, 2013, Isaacs caused fake money orders to be sent to the IRS to be applied to his 2002, 2003, 2005, 2009, 2010 and 2011 tax liabilities. He did so knowing that these money orders were fake because they were drawn on a fictitious account at the Federal Reserve Bank.
- On or about August 26, 2013, Isaacs filed a Petition to Cease and Desist in the United States District Court for the Northern District of California, Case No. 13-cv-01394-WHO (N.D. Calif.) requesting that the court order the IRS to “cease and desist all collection activities” because Isaacs had paid his taxes. He filed the suit to mislead the Court into believing that his taxes had been paid with the fake money orders referenced above, along with submitting a copy of another fake money order to the district court and to the IRS in the amount of $1,272,338.
Issacs was charged on April 21, 2016, with one count of attempting to evade and defeat the payment of tax for 2002, 2003, 2005, 2009, 2010 and 2011. He pleaded guilty to the charge. He also agreed to pay $219,371.08 to the IRS which includes the sum of the taxes he owed plus interest. Isaacs is scheduled to be sentenced by the Honorable James Donato on October 27, 2016, at 9:30 a.m., in Oakland.
The maximum statutory penalty for attempting to evade and defeat the payment of tax, in violation of 26 U.S.C. § 7201, is five years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Cynthia Stier is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Newark Hospital to Pay $450,000 for Allegedly Billing Health Care Programs for Unnecessary ProceduresRead the Press Release
NEWARK, N.J. – Saint Michael’s Medical Center Inc., located in Newark, New Jersey, has agreed to pay $450,000 to resolve allegations that it falsely billed Medicare and Medicaid for medically unnecessary cardiac procedures, U.S. Attorney Paul J. Fishman announced today.
Under Medicare and Medicaid rules, health care providers have a duty to provide services only when they are medically necessary. In addition, government health care programs only authorize payment for reasonable and necessary medical services. Today’s settlement resolves allegations that, during the period from Jan. 1, 2009, through Jan. 1, 2015, Saint Michael’s allegedly submitted claims for percutaneous coronary interventions, catheterizations, and stents performed in its cardiac catheterization lab that were not medically necessary.
The allegations were raised in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act. The act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and the U.S. Department of Health and Human Services, Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorneys Lucy Muzzy and Bernard J. Cooney of the Health Care and Government Fraud Unit and Assistant U.S. Attorney Eamonn J. O’Hagan of the office’s Financial Litigation Unit.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.29 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Defense counsel: Bruce Levy Esq., Newark.
Relator’s counsel: David J. Caputo Esq., Philadelphia
Nelson Man Sentenced to 87 Months in Federal Prison for Conspiring to Distribute in Excess of One Kilogram of HeroinRead the Press Release
CONCORD, NEW HAMPSHIRE – United States Attorney Emily Gray Rice announced today that Jason Daigle, age 39, of Nelson, New Hampshire has been sentenced by United States District Judge Joseph A. DiClerico to 87 months in federal prison for conspiracy to distribute one kilogram or more of heroin, in violation of Title 21, United States Code, Sections 846 and 841(b)(1)(A)(i). The Grand Jury for the District of New Hampshire indicted Daigle for the crime September 23, 2015. Daigle pleaded guilty to the charge on January 11, 2016.
After a lengthy investigation, law enforcement determined that Daigle was employed as a runner for a drug trafficking organization headed, authorities allege, by Ross Gould, age 28, of Richmond, New Hampshire. Daigle distributed heroin for Gould to individuals in and around Keene. As part of the conspiracy, Daigle also met with Gould’s Lawrence, Massachusetts-based sources of heroin at the Rockingham Mall, Salem, New Hampshire to take delivery of up to two kilograms of heroin, which Daigle then transported back to Gould for distribution.
On March 10, 2015, a search by law enforcement of a locked safe Gould maintained at Daigle’s residence resulted in the seizure of over a kilogram of heroin and large quantities of cocaine and prescription pills. The same day, a search executed at Gould’s Richmond, New Hampshire residence resulted in the seizure of additional narcotics, currency and 14 firearms.
On March 16, 2015, Gould was charged federally with possession with the intent to distribute heroin.
“The United States Attorney’s Office is committed to working with our local, state and federal law enforcement partners to address the significant presence of heroin in New Hampshire, by continuing to target drug trafficking organizations which are responsible for the importation of large quantities of heroin into New Hampshire,” stated United States Attorney Emily Gray Rice.
The investigation was conducted by the: (1) Immigration and Customs Enforcement, Homeland Security Investigations; (2) New Hampshire Attorney General’s Drug Task Force; (3) Bureau of Alcohol, Tobacco, Firearms and Explosives; (4) New Hampshire State Police; (5) Keene, New Hampshire Police Department; (6) Richmond, New Hampshire Police Department; and (7) Salem, New Hampshire Police Department. Assistant United States Attorney Jennifer Cole Davis is prosecuting the case.
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Medina Woman Sentenced for Stealing Social Security BenefitsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Heather Brooks, 33, of Medina, NY, who was convicted of theft of public money, was sentenced to two years probation by U.S. Magistrate Judge Jeremiah J. McCarthy.Assistant U.S. Attorney Scott S. Allen, Jr., who handled the case, stated that between June 1, 2010 and May 1, 2013, the defendant willfully stole Social Security Income benefits from the United States Social Security Administration by purposely under reporting income she received from two separate employers. Brooks was asked to recertify her income on two occasions, and on both occasions, she purposely under reported. In total, the defendant received $19,317.87 that she was not entitled to receive. In addition to her period of probation, the defendant was ordered to pay restitution totaling $19,317 to the Social Security Administration.
The sentencing is the result of an investigation by the Social Security Administration, Office of Inspector General, under the direction of Edward J. Ryan.
Media Advisory: Dubuque Hosts Hate Crimes/Bias Incident ForumRead the Press Release
CEDAR RAPIDS, IA – The United States Attorney’s Office for the Northern District of Iowa is joining with the FBI, DOJ’s Community Relations Service, Dubuque County Attorney and Sheriff’s Offices, Dubuque Police Department, and the city’s Human Rights Commission to host a forum designed to identify and address key issues related to hate crime reporting, investigation, prosecution and prevention. The forum is designed to build collaboration among key partners in an effort to prevent and respond to bias incidents and hate crimes.
U.S. Attorney Kevin W. Techau will be present and joined by Darryck Dean, a DOJ Conciliation Specialist with the Community Relations Service located in Kansas City. Mr. Dean was actively involved in community conciliation efforts following the incidents in Ferguson, Mo. A flyer announcing the forum is attached.
Event Details
When: Wednesday, June 1, 2016
Where: Mindframe Theaters, 555 John F. Kennedy Rd (behind Kennedy Mall), Dubuque, IA
Time: Starts at 6:00 p.m., ends at 8:00 p.m.
hate_crimes_forum_flyer.pdf
This is a “pen and pad” opportunity for the press. Photography permitted. A press release will be provided and interview opportunities will be available.
Follow us on Twitter @USAO_NDIA.
Maryland Man Pleads Guilty to an Armed Robbery Conspiracy and the Robbery of a St. Mary’s County Jewelry Store and PharmacyRead the Press Release
Greenbelt, Maryland – Abdelrahim Ayyad, a/k/a Sahid, age 50, of White Plains, Maryland, pleaded guilty today to: an armed robbery conspiracy; two armed commercial robberies; and to using and brandishing a firearm in relation to a crime of violence. Ayyad was originally scheduled to go to trial today on those charges, but instead pleaded guilty to the superseding indictment.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; and St. Mary’s County Sheriff Tim Cameron.
According to court documents, in June 2014, Ayyad conspired with Furman Troy, Darrell Lee and Michael Burgess, to rob commercial businesses in St. Mary’s County, Maryland. For example, on June 18, 2014, Ayyad admitted that he drove to Washington, D.C. and picked up Troy, Lee and Burgess and drove them to a jewelry store in Charlotte Hall, Maryland in order to commit a robbery. Ayyad handed Troy a bag containing a gun. Troy and Lee entered the store and Lee brandished a firearm at the owner of the store. Troy subsequently bound the victim with duct tape. The robbers then demanded the key to the jewelry counter from an employee of the store and stole jewelry worth more than $8,800, cash, a laptop computer and other items. On June 22, 2014, Ayyad and Burgess drove to a pharmacy in Mechanicsville, Maryland, with Troy and Lee following in another vehicle. Ayyad and Burgess waited in their vehicle while Troy and Lee robbed the pharmacy. During the robbery Lee again brandished a gun and Troy bound the pharmacy employee with duct tape. According to their plea agreements, Troy and Lee stole cash and prescription bottles containing oxycodone, methadone, hydrocodone and endocet, valued at $8,897.
U.S. District Judge George J. Hazel has scheduled sentencing for Ayyad on September 12, 2016, at 2:00 p.m.
Furman Troy, age 45, and Darrell Lee, age 48, both of Charlotte Hall, Maryland, and Michael Burgess, age 54, of Alexandria, Virginia, previously pleaded guilty to their roles in the robberies. Furman was sentenced to 12 years in prison. Lee and Burgess are awaiting sentencing
United States Attorney Rod J. Rosenstein commended the FBI and St. Mary’s County Sheriff’s Office for their work in the investigation and recognized the St. Mary’s County State’s Attorney’s Office for its assistance in the case. Mr. Rosenstein thanked Assistant United States Attorneys Leah J. Bressack and Thomas P. Windom, who are prosecuting the case.
Marion Man Sentenced for Weapons ChargesRead the Press Release
BOSTON – A Marion man was sentenced today in connection with illegally possessing a revolver, a sawed-off shotgun and ammunition.
Jeffrey E. Tosca, Jr., 32, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 10 years in prison and three years of supervised release. In March 2016, on the second day of trial, Tosca pleaded guilty to being a felon in possession of a firearm and ammunition and possession of an unregistered firearm.
On Sept. 14, 2013, Tosca made threats over the phone from his home in Marion to shoot members of law enforcement, his father and others. Law enforcement, including a SWAT team, quickly responded and took steps to secure the area. Several hours later, law enforcement officers arrested Tosca without incident and seized a fully loaded revolver and a 12 gauge sawed-off shot gun, and over 100 pieces of assorted ammunition discovered in a storage container buried on the grounds of his residence.
Tosca had previously been convicted on multiple criminal charges, including 2012 and 2010 convictions on state weapons charges, a 2010 conviction for possession of narcotics, knowingly receiving stolen property and resisting arrest, and convictions in 2005 and 2006 for possession with intent to distribute controlled substances.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The Marion Police Department and the Plymouth County Sheriff’s Department also assisted with the investigation. The case was prosecuted by Assistant U.S. Attorneys Suzanne Sullivan Jacobus and Mary B. Murrane of Ortiz’s Major Crimes Unit.
MEDIA ADVISORY - U.S. Attorney Damon P. Martinez to Address Rotary Club of Rio Rancho SunriseRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez will address the Rotary Club of Rio Rancho Sunrise at 7:00 A.M. on WEDNESDAY, JUNE 1, 2016. U.S. Attorney Martinez will discuss the role of the U.S. Attorney’s Office in addressing the public safety challenges facing New Mexico.
WHO: U.S. Attorney Damon P. Martinez, District of New Mexico
WHAT: Presentation to the Rotary Club of Rio Rancho Sunrise on the role of the U.S. Attorney’s Office in addressing New Mexico’s public safety challenges.
WHEN: WEDNESDAY, JUNE 1, 2016, 7:00 a.m.
WHERE: Club Rio Rancho, 500 Country Club Dr. SE, Rio Rancho, NM 87124
U.S. Attorney Martinez’s remarks will cover the response of the U.S. Attorney’s Office to the violent crime crisis and the heroin and prescription opioid epidemic confronting New Mexico. The U.S. Attorney also will discuss his Office’s efforts to address the public safety challenges in tribal communities, particularly crimes against Native American women and children, and its commitment to provide training to tribal officers and coordinate other law enforcement resources available to New Mexico’s Pueblos and Tribes. The discussion will cover the Office’s civil rights and affirmative civil enforcement work, and its efforts to safeguard the important national security assets located in New Mexico.
Latrobe Woman Admits Defrauding Highmark to Obtain Prescription DrugsRead the Press Release
PITTSBURGH - A resident of Latrobe, Pennsylvania, pleaded guilty in federal court to charges of health care fraud and obtaining prescription drugs through fraud, United States Attorney David J. Hickton announced today.
Kari Richards, 29, of Latrobe, Pennsylvania pleaded guilty to two counts before Senior United States District Judge Maurice B. Cohill, Jr.
In connection with the guilty plea, the court was advised that Richards, while addicted to prescription pain killers, caused Highmark to pay more than $600,000 in connection with claims in which she sought treatment over a 16-month period from more than 100 hospitals in 11 states on more than 300 occasions. Through this behavior, Richards obtained approximately 190 prescriptions for pain medications, including prescriptions for Schedule II controlled substances Oxycodone-Acetaminophen, Hydrocodone-Acetaminophen, Hydrocodone, and Oxycodone. As part of the scheme, Ms. Richards falsely represented the circumstances of injuries, which were mainly shoulder dislocations. She also misrepresented the medications that she received and her medical history.
Judge Cohill scheduled sentencing for September 7, 2016. The law provides for a total sentence of fourteen years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Richards.
Large-Scale Heroin Dealer Sentenced to 12 Years in Federal PrisonRead the Press Release
PITTSBURGH – Eric Ewell, formerly of Pittsburgh, Pennsylvania, pled guilty and was sentenced to 144 months in prison for conspiring to distribute at least one kilogram of heroin, United States Attorney David J. Hickton announced today.
Ewell, age 33, was sentenced in Pittsburgh by United States District Judge Nora Barry Fischer. Judge Fischer also imposed a 5-year term of supervised release to follow the federal prison sentence.
In conjunction with the guilty plea, the Court was informed that, between 2011 and 2013, Ewell resided in North Carolina, but frequently returned to his native Pittsburgh for several days at a time. One of the reasons for many of Ewell’s return trips to Pittsburgh was to distribute heroin in Western Pennsylvania. Ewell acknowledged as part of his plea agreement that he was responsible for the distribution of between three and ten kilograms of heroin.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration in Pittsburgh, Charlotte (North Carolina), and New York City, the Internal Revenue Service, the Pennsylvania State Police, the Pittsburgh Police Department, the Allegheny County Police Department, the Pennsylvania Attorney General's Office, the Wilkins Township Police Department, the East Pittsburgh Police Department, the New York Police Department, the Blair County District Attorney's Office, and the Allegheny County District Attorney's Office conducted the investigation leading to the conviction and sentence in this case.
Lancaster Man Charged with Robbing MarketRead the Press Release
PHILADELPHIA - Joshua Matthew Ortiz, 24, of Lancaster, PA, was charged today by Indictment with robbery which interferes with interstate commerce, using and carrying a firearm during a crime of violence, and with being a convicted felon in possession of a firearm, announced U.S. Attorney Zane David Memeger.
According to the indictment, on January 29, 2016, Ortiz committed a gun-point robbery of the Turkey Hill Minit Market, located at 410 East Chestnut Street, in Lancaster, Pennsylvania.
If convicted of all counts, Ortiz faces a maximum sentence of life in prison, with a mandatory seven-year minimum sentence, a possible fine, five years of supervised release, and a $300 special assessment.
This case has been investigated by the Federal Bureau of Investigation and the Lancaster City Bureau of Police. It is being prosecuted by Assistant United States Attorney Thomas M. Zaleski.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Justice Department Settles Immigration-Related Discrimination Claim Against California Skilled Nursing FacilityRead the Press Release
The Justice Department reached a settlement agreement today with Villa Rancho Bernardo Care Center (VRB), a skilled nursing facility in San Diego. The agreement resolves the department’s investigation of VRB for discrimination against work-authorized non-U.S. citizens in violation of the Immigration and Nationality Act (INA).
The department’s investigation found that VRB discriminated against lawful permanent residents by requiring them to produce specific documents to prove their work authorization, while permitting U.S. citizens to show any valid work authorization documentation they chose. Specifically, during the interview and hiring processes, including in certain online job postings, VRB requested that lawful permanent residents produce a permanent resident card (often known as a “green card”). Lawful permanent residents are not required to show employers their permanent resident cards to work; like all workers, they can present their choice of valid documentation from the Department of Homeland Security’s lists of acceptable documents to establish their identity and work authorization. For example, lawful permanent residents can establish their work authorization by presenting a state or federal identification document and an unrestricted Social Security card.
Under the settlement agreement, VRB will pay $24,000 in civil penalties to the United States, undergo department-provided training on the anti-discrimination provision of the INA and be subject to monitoring requirements.
“The Civil Rights Division is committed to ensuring that individuals who are authorized to work in the United States do not face unlawful, discriminatory barriers,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department's Civil Rights Division. “It is essential that employers review their employment eligibility verification practices to make sure they are in compliance with the law.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship, immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices in employment eligibility verification; retaliation; and intimidation.
To learn more about the protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they have been subjected to: different documentary requirements based on their citizenship status, immigration status or national origin; or discrimination based on their citizenship status, immigration status or national origin in hiring, firing or recruitment or referral, should contact OSC’s worker hotline for assistance.
Jury Finds Jackson Man Guilty in Felon in Possession of a Firearm CaseRead the Press Release
Jackson, Miss - Following a five day trial in United States District Court in Jackson, a jury found Aaron Charles Harris, age 30, of Jackson, guilty of possession of a firearm by a convicted felon, announced U.S. Attorney Gregory K. Davis.
The crime took place on July 4, 2015 on Beaverbrook Road in Jackson. Federal agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives arrived at the location after hearing gunshots in the area. Once agents arrived, they witnessed Harris throw a firearm. Upon further investigation, another firearm was located in a vehicle belonging to Harris. Harris had previously been convicted of a felony in Hinds County Circuit Court.
Harris will be sentenced by U.S. District Judge Henry T. Wingate on August 12, 2016 at 9:30 a.m. The maximum penalty for felon in possession of a firearm is 10 years in federal prison and a $250,000 fine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives along with the Jackson Police Department, and prosecuted by Deputy Criminal Chief Darren LaMarca and Assistant U.S. Attorney Shundral H. Cole.Judge Sentences Pittsburgh Man to 25 Years in Federal Prison for Drug and Gun OffensesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 25 years in prison on his conviction of conspiracy to distribute one kilogram or more of heroin, possession with the intent to distribute 100 grams or more of heroin, possession of firearms in connection with a drug trafficking offense, possession of firearms by a convicted felon, and possession of an unregistered firearm, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Richard Bush, 53, of Pittsburgh, Pennsylvania.
According to information presented to the court, Bush supplied heroin to members of a violent street gang called the East Hills Bloods, who operated out of the East Hills section of Pittsburgh. A search warrant executed at his home on March 14, 2012 led to the seizure of more than 9,000 stamp bags of heroin and a cache of firearms secreted throughout his home, including a sawed-off shotgun. Bush conspired with among others, Mayank Mishra and Willis Wheeler, both of whom are awaiting sentencing. Mishra participated in the heroin distribution conspiracy by supplying stamp bags and material used to dilute heroin to Bush and numerous other Pittsburgh area heroin dealers for more than a decade at his Rock America store, which was operated out of the Northway Mall. Search warrants executed at Rock American and at Mishra’s home on Feb. 26, 2013 led to the seizure of more than two million stamp bags, which, if filled with heroin, would have amounted to more than 75 kilograms of heroin. Federal agents also seized a vast inventory of materials used to dilute heroin and more than $900,000 in cash, which the jury forfeited to the United States as proceeds of his crimes. Wheeler, who was convicted at a trial earlier this year, supplied the undiluted heroin that Bush processed for retail distribution in a laboratory he maintained in the basement of his home. On March 14, 2012, the federal agents found more than 700 grams of heroin in Wheeler’s car and an apartment he maintained for the purposes of storing heroin.
Assistant United States Attorneys Brendan T. Conway and Donovan Cocas prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Greater Pittsburgh Safe Streets Task Force for the investigation leading to the successful prosecution of Bush, Mishra and Wheeler. The Greater Pittsburgh Safe Streets Task Force consists of Pittsburgh Bureau of Police, Allegheny County Sheriff's Office, Wilkinsburg Police Department, Allegheny County Police Dept., Oakdale Police Dept, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Federal Bureau of Investigation. The Greater Pittsburgh Safe Streets Task Force also received assistance in this case from the Pennsylvania State Police.
JSG Capital Investments’ Officers Charged with Wire FraudRead the Press Release
SAN FRANCISCO - On May 24, 2016, a federal grand jury in San Francisco indicted both Jaswant Singh Gill, also known as Jason Gill, the Chief Executive Officer of JSG Capital Investments LLC in San Diego (“JSG Capital”), and Javier Carlos Rios, the Strategic Relationship Manager at JSG Capital, with one count of conspiracy to commit wire fraud and one count of wire fraud, announced United States Attorney Brian Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
According to the indictment, Gill, 48, of San Diego, Calif., and Rios, 33, of National City, Calif., are alleged to have made false and misleading representations and promises to investors in JSG Capital, including, but not limited to, promises to purchase so-called pre-IPO shares of private companies like Uber Technologies and Airbnb using investor funds. In fact, Gill and Rios are alleged to have fraudulently diverted and stolen investor funds for their own personal use and benefit by, among other things, converting investor funds into cash, transferring investor funds to their own personal bank accounts, and using investor funds for personal expenses like rent, restaurants, nightclubs, hotels, and retail shopping. Gill and Rios allegedly concealed their fraud by paying earlier investors “interest” payments or so-called lulling payments using more recent investor funds in a manner that was consistent with a classic Ponzi scheme. In this manner, Gill and Rios raised in excess of $9.3 million in investor funds and are alleged to have fraudulently diverted and stolen in excess of $5.5 million.
Gill was arrested on May 27, 2016 by the FBI in Nashville, Tennessee, and will make his initial appearance today in federal court in the Middle District of Tennessee. Rios was arrested on May 25, 2016 by the FBI in San Diego, Calif., and will also make his initial appearance today in federal court in the Southern District of California. The United States Attorney’s Office anticipates that both cases will be moved to San Francisco for an appearance in federal court in Northern District of California on a date that remains to be scheduled. The case has been assigned to the Honorable William H. Orrick, U.S. District Court Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. This indictment charged both defendants with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and one count of wire fraud, in violation of 18 U.S.C. § 1343. If convicted, the defendants face, on each count, a maximum sentence of twenty years in prison; a fine of $250,000 (or twice the gain or loss, whichever is greater); asset forfeiture and restitution, if appropriate, in amounts to be determined by the court; and other penalties. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Adam A. Reeves is prosecuting the case with the assistance of Paralegal Specialist Daniel Charlier-Smith and Legal Assistant Bridget Kilkenny. The prosecution is the result of an investigation by the FBI. The San Francisco Regional Office of the United States Securities and Exchange Commission provided assistance during the investigation.
Investment Bank Director Charged in Manhattan Federal Court with Insider TradingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of STEVEN MCCLATCHEY, a director at an investment bank in Manhattan (the “Investment Bank”), on charges of participating in a scheme to commit insider trading in connection with potential mergers and acquisitions (“M&A”) in which the Investment Bank was involved. In addition, charges against GARY PUSEY were unsealed. PUSEY pled guilty and admitted to his participation in the scheme last week.
MCCLATCHEY was arrested this morning in Long Island, New York, and will be presented this afternoon in Manhattan federal court before U.S. Magistrate Judge Kevin Nathaniel Fox. On Friday, May 27, 2016, PUSEY pled guilty before U.S. District Judge Katherine Polk Failla to conspiracy, securities fraud, and wire fraud.
In a separate action, the Securities and Exchange Commission (“SEC”) filed civil charges against MCCLATCHEY and PUSEY.
U.S. Attorney Preet Bharara said: “Insider trading continues to tarnish our securities markets. As alleged, Steven McClatchey abused his position at a major investment bank, feeding sensitive information about mergers and acquisitions to his close friend, Gary Pusey, who in turn traded on that material, nonpublic information. McClatchey did not tip Pusey for free, allegedly receiving cash kickbacks and home renovations from Pusey in exchange. A free and fair marketplace is what securities investors deserve and is what we seek to enforce through prosecutions like this one.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “As alleged, Steven McClatchey violated his confidentiality duty at an investment bank when he shared insider material information with his boat dock buddy, Gary Pusey, who ultimately used the information to make trades. McClatchey allegedly benefited from thousands of dollars cash payments and home repairs. Investing in our markets should be fair to all investors with equal access to information, not boat-side chats that give certain investors advantage. The FBI will continue to work with our partners to ensure our markets are fair and equitable to all.”
According to the allegations in the charging documents unsealed today in Manhattan federal court, including the Complaint and Information, and statements made in court proceedings[1]:
MCCLATCHEY, who had served as a director at the Investment Bank since at least 2008, routinely possessed material, nonpublic information (“Inside Information”) concerning pending mergers and acquisitions in which the Investment Bank was involved. Indeed, among MCCLATCHEY’s responsibilities at the Investment Bank was the tracking of the status of all such pending transactions and the likely date on which such transactions would be publicly announced. MCCLATCHEY breached his duty of confidentiality to the Investment Bank and to its clients by providing Inside Information about pending M&A transactions to his close friend, PUSEY. PUSEY, in turn, used the Inside Information to execute profitable securities trades ahead of at least 10 separate M&A announcements.
Specifically, from February 2014 through September 2015, MCCLATCHEY and PUSEY participated in a scheme to commit insider trading in advance of and in connection with more than 10 separate mergers and acquisitions. MCCLATCHEY and PUSEY were close friends who owned boats docked in a Long Island marina and who spent most Saturdays on their boats, at the marina, or playing pool and watching sports.
MCCLATCHEY learned about the deals as part of his employment with the Investment Bank, which generally advised either (i) the company to be acquired in the transaction; (ii) the acquiring company; or (iii) a company which ultimately lost a bid to acquire the company involved in the transaction.
Having learned the Inside Information about these impending transactions, MCCLATCHEY, in breach of fiduciary duties and other duties of trust and confidence owed to the Investment Bank and its clients, tipped PUSEY so that PUSEY could use the information to trade and with the expectation that PUSEY would confer a benefit upon MCCLATCHEY. Among the benefits that MCCLATCHEY received as part of the insider trading scheme were thousands of dollars of cash payments by PUSEY and the provision of home renovation services.
PUSEY used the Inside Information that he received from MCCLATCHEY to make profitable trades in, among other securities: Forest Oil Corporation, Questcor Pharmaceuticals, Inc., Zygo Corporation, Pepco Holdings, Inc., Measurement Specialties, Inc., Entropic Communications, Inc., PetSmart, Inc., Emulex Corporation, Omnicare, Inc., and TECO Energy, Inc. PUSEY reaped approximately $76,000 in ill-gotten gains from this scheme.
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MCCLATCHEY, 58, of Long Island, New York, is charged with one count of conspiracy to commit securities and wire fraud, which carries a maximum sentence of 25 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and 11 counts of securities fraud, each carrying a maximum sentence of 25 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense.
On May 30, 2016, PUSEY, 47, of Long Island, New York, pled guilty to one count of conspiracy to commit securities and wire fraud, which carries a maximum sentence of 25 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and 11 counts of securities fraud, each carrying a maximum sentence of 25 years in prison. The charges also carry a maximum fine of $5 million, 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 sentences for the defendants will be determined by the judge.
Mr. Bharara praised the work of the FBI, 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. Attorney Rebecca Mermelstein is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Houston, MO, Woman Sentenced for Sister's Murder-For-HireRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Houston, Mo., woman was sentenced in federal court today for hiring someone to murder her sister.
Leta Faye Douglas, 52, of Houston, was sentenced by U.S. District Judge M. Douglas Harpool to seven years and three months in federal prison without parole.
Douglas, who pleaded guilty on Jan. 4, 2016, admitted that she agreed to pay another person – who was actually an undercover law enforcement officer – $2,000 to murder her sister. Douglas must forfeit the $2,000 she paid the undercover officer to the government.
According to court documents, Douglas sent a letter to an individual in January 2015, asking for his help. This person, who lives in Nebraska, had not maintained contact with Douglas for about 18 years. When he called her in response to receiving the letter, Douglas told him that she wanted her sister killed. Douglas told him that her parents were in a home for the elderly and that her sister was in charge of their finances. He believed that Douglas wanted to have access to her parents' financial estate.
That individual contacted law enforcement authorities. An undercover employee of the Missouri State Highway Patrol contacted Douglas and made arrangements to meet in the Walmart parking lot in Houston on Feb. 9, 2015. The undercover, who was wearing an audio recording device, approached Douglas’s vehicle and got into the front passenger’s seat. During the initial conversation, she provided the undercover with a photograph of her sister and a hand-drawn map to her sister’s residence.
The entire conversation between Douglas and the undercover was recorded. Douglas told the undercover that her sister’s husband would also be home and that they had two dogs inside the house. She handed him an envelope that contained $2,000.
Douglas was arrested at her residence a few days later.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the FBI, the Missouri State Highway Patrol and the South Central Drug Task Force.
Four Newport News Gang Members Plead Guilty to 2015 ShootingRead the Press Release
NEWPORT NEWS, Va. – Eric Edmunds, II, 20, pleaded guilty today to criminal charges relating to his participation in a gang shooting outside a Sonic restaurant in Hampton in 2015.
“Gangs and the violence they bring to our neighborhoods and communities cannot continue,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “We are prepared on a federal and local level to take a stand against gangs and the violence they perpetrate. Only by working together at every level and in every community, will we make progress towards ending this threat to our youth and their families.”
Edmunds pleaded guilty to charges of attempted murder in of aid of racketeering activity, and discharge of a firearm in the commission of a violent crime. Quantavius Durham, 19, Raiquan Turner, 20, and Raquille Jackson, 22, also of Newport News, previously entered guilty pleas to the same charges. Each of the defendants was a member or associate of the 36th Street Bang Squad.
Defendant
Guilty Plea Date
Sentencing Date
Raquille Jackson
February 24
July 18
Raiquan Turner
March 11
June 7
Quantavius Durham
March 14
July 18
Eric Edmunds, II
May 31
September 12
In a statement of facts filed with the plea agreement, these four men, all members or associates of the 36th Street Bang Squad, a hybrid criminal street gang, followed a Hampton Public School bus looking for a rival gang member on June 5, 2015. According to court documents, the men did not find the rival, whom they suspected of killing a fellow gang member a few days earlier. The men returned to their vehicle, which was parked at the Sonic Restaurant on Floyd Thompson Boulevard. A short time later, Turner observed rival gang members walking toward the Sonic restaurant, and Jackson, the driver of the vehicle, called the rivals over to the vehicle. As the rivals approached, Jackson and Edmunds opened fire. Edmunds used a firearm provided to him by Durham. Hampton Police quickly stopped the fleeing vehicle only miles from the location, and all four defendants were removed from the vehicle. Ballistic tests of the firearms recovered from the vehicle matched casings left at the scene of the shooting, and all four men were positive for gunshot residue.
All four defendants were indicted by a federal grand jury on Nov. 17, 2015. Each of the defendants faces a mandatory minimum of 10 years in prison, and a maximum penalty of life in prison when sentenced. The minimum and maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Office; and Terry L. Sult, Chief of the Hampton Police Division, made the announcement, after Edmunds’ plea was accepted by U.S. District Judge Robert G. Doumar. Managing Assistant U.S. Attorney Howard Zlotnick and Special Assistant U.S. Attorney Amy E. Cross are prosecuting the case. The case was investigated by the ATF, with significant assistance from the Hampton Police and Newport News Police.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:15cr80.
Former pastor sentenced to more than five years in prison for having thousands of images of child exploitationRead the Press Release
A former pastor was sentenced to more than five years in prison for receiving material involving the sexual exploitation of children, said Acting U.S. Attorney Carole S. Rendon.
Gerald B. Searle, 51, of Liberty Center, had thousands of images involving child pornography and exploitation on his computer between 2013 and 2015, according to court documents
The investigating agency in this case is the U.S. Postal Inspection Service, with the assistance of the Ohio Bureau of Criminal Investigation and the Erie County Sheriff’s Office. The case is being handled by Assistant United States Attorney Tracey Tangeman.
Former U.S. Soldier Sentenced in Manhattan Federal Court to 20 Years in Prison for Conspiracy to Murder A DEA Agent and A DEA Informant and Other CrimesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that JOSEPH HUNTER, a former member of the U.S. Army, was sentenced today to 20 years in prison based on his convictions for conspiracy to murder an agent of the Drug Enforcement Administration (“DEA”) and a DEA informant, conspiracy to import cocaine into the United States, and conspiracy to possess a firearm in furtherance of a crime of violence. HUNTER pled guilty on February 13, 2015, before U.S. District Judge Laura Taylor Swain, who imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “The sentencing of Joseph Hunter, an admitted contract killer, convicted drug trafficker, and ringleader of trained assassins, ends another chapter in a chilling criminal case that spanned the globe. Hunter and his cohorts turned from serving their countries as soldiers to becoming mercenaries for hire, plotting to kill a DEA agent and informant and trafficking in massive quantities of cocaine. Thanks to the outstanding investigative work of the DEA, these soldiers of fortune have met their rightful fate, long sentences in federal prison.”
According to the Indictment and Superseding Indictments filed against HUNTER and co-defendants Timothy Vamvakias, Dennis Gogel, Slawomir Soborski, and Michael Filter; other documents publicly filed in this case; and statements made during court proceedings, including today’s sentencing:
All five defendants previously served in the armed forces of their respective nations. HUNTER served in the U.S. Army between approximately 1983 and 2004; Vamvakias served in the U.S. Army between approximately 1991 and 2004; Gogel served in the German armed forces until 2010; Filter served in the German armed forces until 2009; and Soborski served in the Polish armed forces until 2011. HUNTER served as a sniper instructor and a senior drill sergeant, training other soldiers in marksmanship and tactics. Vamvakias attained the rank of sergeant and served both as infantryman and a military police officer. Gogel, Soborski, and Filter were also trained as snipers.
In 2013, HUNTER recruited Vamvakias, Gogel, Soborski, and Filter to serve as security for a Colombian drug trafficking organization and to perform contract killings. For example, in March 2013, HUNTER described the work to Soborski, Filter, and Gogel as follows: “It’s just like a military mission. Right. This is a real [expletive]. You know, you see everything. You see James Bond in the movie and you’re saying, ‘Oh, I can do that.’ Well, you’re gonna do it now.” During the same recorded meeting, HUNTER described in detail his previous participation in weapons trafficking, using grenades to conduct an attack, and shootings, as well as his participation in two actual murders-for-hire in the Philippines.
During meetings in Asia, Africa, and the Caribbean that began in January 2013 and continued through late September 2013, HUNTER communicated with three confidential sources (the “CSs”) working with the DEA, who purported to be Colombian narcotics traffickers. HUNTER agreed to serve as the head of security for the CSs’ purported narcotics trafficking organization, and assembled a “security team” consisting of Vamvakias, Gogel, Filter, and Soborski. HUNTER explained to his co-defendants that this work would involve “tons of cocaine” and “millions of dollars,” and that they would also have the opportunity to do “bonus work, that is, assassination” for which they would be paid at least $25,000, and “depending on the threat level, the price goes up.”
HUNTER and his co-defendants thereafter agreed, in meetings and communications with the CSs, to provide security and surveillance services to the narcotics trafficking organization. In late-March 2013, in Thailand, Gogel, Filter, and Soborski surveilled a vessel on behalf of the CSs’ purported narcotics trafficking organization and reported their activities to HUNTER. In April 2013, in Mauritius, at the direction of the CSs, Gogel, Filter, and Soborski provided security for meetings at which the participants – including Scott Stammers and Philip Shackels, who were later extradited to the Southern District of New York and pled guilty to a drug-trafficking offense before U.S. District Judge Andrew L. Carter, Jr., in United States v. Stammers, et al., 13 Cr. 579 (ALC) (S.D.N.Y.) – discussed actual weapons trafficking activities and the distribution of illegal narcotics to the United States. In late June 2013, Vamvakias, Gogel, Filter, and Soborski conducted surveillance of a purported U.S.-registered aircraft at the direction of the third CS (“CS-3”), who posed as a member of the CSs’ narcotics trafficking organization. CS-3 informed the defendants that the aircraft was to be loaded with 300 kilograms of cocaine to be shipped to New York. The security team reported their activities to HUNTER.
Furthermore, HUNTER, Vamvakias, and Gogel agreed to commit murders-for-hire in Liberia by assassinating both a DEA Special Agent and a person who, according to the CSs, was providing information to the DEA about the CSs’ narcotics trafficking organization. In exchange for the murders, Vamvakias and Gogel were together to be paid approximately $700,000, and HUNTER was to receive an additional $100,000 for supervising the hit team. Communications between the defendants and the CSs occurred by telephone, over e-mail, and in a series of surreptitiously audio-recorded and videotaped meetings over an approximately nine-month period.
In mid-May 2013, at a meeting with the CSs in Thailand, HUNTER, Vamvakias, Gogel, and Soborski were told that a “bonus job” – that is, a contract killing – was in the offing, due to a leak within the CSs’ narcotics trafficking organization. In late May 2013, in email communications, HUNTER confirmed that his team would be willing to murder both a U.S. law enforcement agent and a source (a boat captain), who was purportedly providing information to U.S. law enforcement authorities about the CSs’ narcotics trafficking organization. HUNTER confirmed by email that his team would kill both the DEA agent and the informant. At a meeting in late June 2013, CS-3 explained to Vamvakias and Gogel that “the job is to kill a U.S. DEA agent and a source with the DEA,” who would be located in Liberia. Vamvakias and Gogel discussed the weapons that could be used and masks to be worn for the murders, and Vamvakias stated that it would be better to “hit the agent first” and then “the snitch.” In early July 2013, HUNTER sent via e-mail a list of the items needed for the murders, including “[t]wo Submachine Guns with silencers . . . [t]wo .22 pistols with Silencers.”
In mid-August 2013, at a meeting in Thailand, HUNTER, Vamvakias, and Gogel discussed in detail the weapons that would be used and the possibility of entering Liberia without having their passports stamped. They suggested that CS-3 fly them out of the country via private plane following the murders. Vamvakias stated that, among other weapons, a sub-machine gun and two .22 caliber pistols would be needed for the murders, and CS-3 agreed to deliver the weapons to Liberia. The next day, at a meeting with Gogel, CS-3 confirmed that an order for the requested weapons had been made. Later that same day, Gogel met again with CS-3 and provided CS-3 with two highly sophisticated latex facemasks, which can make the wearer appear to be of another race, for CS-3 to transport to Liberia.
In late September 2013, Vamvakias and Gogel arrived in Liberia to commit the planned murders-for-hire.
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In addition to the prison sentence, Judge Swain also sentenced HUNTER, 51, to 10 years of supervised release and to pay a $300 special assessment.
Vamvakias, 44, pled guilty on January 9, 2015, to conspiracy to murder a DEA agent and a DEA informant, conspiracy to import cocaine into the United States, conspiracy to possess a firearm in furtherance of a crime of violence, and conspiracy to distribute cocaine on board an aircraft, and was sentenced by Judge Swain on July 16, 2015, to 20 years in prison. Gogel, 30, pled guilty on January 13, 2015, to conspiracy to murder a DEA agent and a DEA informant, conspiracy to import cocaine into the United States, conspiracy to possess a firearm in furtherance of a crime of violence, and conspiracy to distribute cocaine on board an aircraft, and was sentenced by Judge Swain on September 24, 2015, to 20 years in prison. Filter, 31, pled guilty on February 10, 2015, to conspiracy to import cocaine into the United States, and was sentenced by Judge Swain on September 9, 2015, to eight years in prison. Finally, Soborski, 44, pled guilty on February 10, 2015, to conspiracy to import cocaine into the United States, and is scheduled to be sentenced by Judge Swain on June 10, 2016.
Today’s sentencing was the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York; DEA’s Special Operations Division; DEA’s Bangkok, Ghana, Pretoria, Bucharest, Manila, Nassau and Copenhagen Offices; the Royal Thai Police Narcotics Suppression Bureau and Crime Suppression Division; the Royal Thai Immigration; the Royal Thai Attorney General’s Office; Republic of Liberia’s National Security Agency; the Republic of Liberia’s Attorney General’s Office; the Estonian Police and Border Guard; the Estonian National Criminal Police, Investigative Bureau; the Estonian State Prosecutors Office; the Royal Bahamas Police Force and Drug Enforcement Unit; Interpol; and the U.S. Department of Justice’s Office of International Affairs.
The prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Emil J. Bove III, Michael D. Lockard, Aimee Hector, and Anna Skotko are in charge of the prosecution.
Former Fugitive Convicted of Kidnapping and Alien Smuggling, Both Resulting in DeathRead the Press Release
A former fugitive who was illegally residing in Houston has entered a guilty plea today, admitting that he engaged in an alien smuggling conspiracy that resulted in two deaths and kidnapped two women, one of whom was killed.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
Noe Aranda-Soto, aka Diablo, 36, of San Carlos, Michoacan, Mexico, pleaded guilty to kidnapping resulting in death, use of a firearm during and in relation to a crime of violence resulting in death and conspiracy to transport aliens for private financial gain resulting in death. U.S. District Judge John D. Rainey of the Southern District of Texas accepted the guilty plea and has set sentencing for Sept. 12, 2016. Aranda-Soto faces a mandatory term of life in federal prison.
In his plea agreement, Aranda-Soto admitted that from 2010 until his arrest in 2012, he led an alien-smuggling and hostage-taking organization that transported aliens from areas near the south-Texas checkpoints to local stash houses in Houston and to points north. On Aug. 1, 2010, his brother was driving a vehicle loaded with illegal aliens when it rolled over near Victoria, Texas. One victim died as a result of the accident, while another victim who had been left behind in the brush and died of exposure and dehydration. A third victim was in a coma for nearly a year and now suffers from permanent injuries, according to the plea.
Law enforcement stopped Aranda-Soto a few days later, but he fled. Still a fugitive on the 2010 charges, Aranda-Soto admitted he returned to Houston in 2012 and began to hold aliens hostage in Houston-area stash houses. After law enforcement rescued a group of aliens being held hostage and arrested several of Aranda-Soto’s employees from one of the locations in October 2012, Aranda-Soto planned to escape from Houston with two female employees.
According to the plea agreement, while on Interstate 10 near Katy, Texas, Aranda-Soto became agitated and shot both the driver and the other female passenger multiple times. The injured driver jumped from the moving car and survived. Aranda-Soto then purposefully drove the car erratically, causing the other woman to be ejected from the moving vehicle onto the highway where she was subsequently run over by multiple other vehicles and killed, according to admissions in the plea agreement.
At the hearing today, the court heard that as the driver jumped from the moving car, she had apologized to the other woman. That victim then screamed in return “tell my children I love them.”
Law enforcement arrested Aranda-Soto a week later at yet another stash house, which was full of illegal aliens whom Aranda-Soto and his co-conspirators were holding hostage.
With Aranda-Soto’s plea, all of those charged in relation to the 2010 and 2012 criminal activity have now been convicted.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Border Patrol agents with the South Texas Campaign and South Texas Border Intelligence Center, Houston Police Department, Harris County Sheriff’s Office and the U.S. Marshals Service investigated the case. Trial Attorney Jeffrey Zick of the Criminal Division’s Capital Case Section and Assistant U.S. Attorneys Patti H. Booth and Casey N. MacDonald of the Southern District of Texas are prosecuting the case.
Former Fugitive Convicted of Kidnapping and Alien Smuggling, Both Resulting in DeathRead the Press Release
VICTORIA, Texas – A former fugitive who was illegally residing in Houston has entered a guilty plea today, admitting he engaged in an alien smuggling conspiracy that resulted in two deaths and kidnapped two women, one of whom was killed.
U.S. Attorney Kenneth Magidson of the Southern District of Texas and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division made the announcement.
Noe Aranda-Soto, aka “Diablo,” 36, of San Carlos, Michoacan, Mexico, pleaded guilty to kidnapping resulting in death, use of a firearm during and in relation to a crime of violence resulting in death and conspiracy to transport aliens for private financial gain resulting in death. U.S. District Judge John D. Rainey accepted the guilty plea and has set sentencing for Sept. 12, 2016. Aranda-Soto faces a mandatory term of life in federal prison.
In his plea agreement, Aranda-Soto admitted that from 2010 until his arrest in 2012, he led an alien-smuggling and hostage-taking organization that transported aliens from areas near the south-Texas checkpoints to local stash houses in Houston and to points north. On Aug. 1, 2010, his brother was driving a vehicle loaded with illegal aliens when it rolled over near Victoria. One victim died as a result of the accident, while another had been left behind in the brush and died of exposure and dehydration. A third victim was in a coma for nearly a year and now suffers from permanent injuries, according to the plea.
Law enforcement stopped Aranda-Soto a few days later, but he fled. Still a fugitive on the 2010 charges, Aranda-Soto admitted he returned to Houston in 2012 and began to hold aliens hostage in Houston-area stash houses. After law enforcement rescued a group of aliens being held hostage and arrested several of Aranda-Soto’s employees from one of the locations in October 2012, Aranda-Soto planned to escape from Houston with two female employees.
According to the plea agreement, while on Interstate 10 near Katy, Aranda-Soto became agitated and shot both the driver and the other female passenger multiple times. The injured driver jumped from the moving car and survived. Aranda-Soto then purposefully drove the car erratically, causing the other woman to be ejected from the moving vehicle onto the highway where she was subsequently run over by multiple other vehicles and killed, according to admissions in the plea agreement.
At the hearing today, the court heard that as the driver jumped from the moving car, she had apologized to the other woman. That victim then screamed in return “tell my children I love them.”
Law enforcement arrested Aranda-Soto a week later at yet another stash house, which was full of illegal aliens whom Aranda-Soto and his co-conspirators were holding hostage.
With Aranda-Soto’s plea, all of those charged in relation to the 2010 and 2012 criminal activity have now been convicted.
The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Border Patrol agents with the South Texas Campaign and South Texas Border Intelligence Center, Houston Police Department, Harris County Sheriff’s Office and the U.S. Marshals Service investigated the case. Assistant U.S. Attorneys Patti H. Booth and Casey N. MacDonald are prosecuting the case along with Trial Attorney Jeffrey Zick of the Criminal Division’s Capital Case Section.
Former Connecticut Group Home Operator Pays $1.5 Million to Settle Overbilling AllegationsRead the Press Release
U.S. Attorney Deirdre M. Daly and Connecticut Attorney General George Jepsen today announced that REM CONNECTICUT COMMUNITY SERVICES, INC. (“REM”) has entered into a civil settlement agreement with the federal and state governments in which it will pay $1.5 million to resolve allegations that it received overpayments from the Connecticut Medicaid Program.
REM, formerly located in Middletown, Conn., operated various group homes that provided residential and day services to the intellectually disabled and at-risk youth. REM ceased operating in Connecticut at the end of 2014.
The allegations against REM arose from REM’s submission of Annual Reports of Residential and Day Services (“cost reports”) to the State of Connecticut related to its operation of group homes during the period from July 1, 2007 through June 30, 2014. The government contended that REM reported certain interest expenses as allowable costs in the cost reports that were in fact not allowable under the State of Connecticut’s Cost Standards. As a result, the government alleges that REM received overpayments that it was not entitled to receive from the Connecticut Medicaid Program.
“Providers who bill government health insurance programs, such as Medicaid, must scrupulously follow the rules and regulations, and the failure to do so will have serious consequences,” said U.S. Attorney Daly. “The U.S. Attorney’s office will vigorously pursue health care providers who receive payments from federal health care programs that they are not entitled to receive.”
To resolve its liability, REM will pay $1.5 million to the federal and state governments. Part of the settlement amount will be satisfied by the government retaining $1,189,025 that had been suspended by the State of Connecticut because of REM’s questionable billing practices. The additional $310,975 will be paid by REM collectively to the federal and state governments at the time the settlement agreement is executed.
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot and by Assistant Attorney General Richard M. Porter of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Former Charleston man pleads guilty to failing to register as a sex offenderRead the Press Release
HUNTINGTON, W.Va. – A former Charleston resident faces up to 10 years in federal prison after pleading guilty today to failing to register as a sex offender, announced Acting United States Attorney Carol Casto. James Roy Arthur, 45, entered his guilty plea before Chief United States District Judge Robert C. Chambers.
Arthur was convicted in 1996 in Kanawha County Circuit Court of Second Degree Sexual Assault. As a result of this conviction, Arthur was required to register as a sex offender. Around January 1, 2016, Arthur moved to Fort Gay in Wayne County, and did not register as a sex offender, despite knowing it was required by law. Arthur continued to reside in Wayne County until his arrest on January 31, 2016. Arthur’s sentencing is scheduled for August 29, 2016.
The United States Marshals Service and the West Virginia State Police conducted the investigation. Assistant United States Attorney Jennifer Rada Herrald is in charge of the prosecution.
This case is being brought as part of the U.S. Attorney’s Office’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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Former CalPERS CEO Sentenced to 54 Months’ Imprisonment for Role in Corruption ConspiracyRead the Press Release
SAN FRANCISCO – Fred Buenrostro, the former Chief Executive Officer of the California Public Employee Retirement System (CalPERS) was sentenced today to 54 months in prison for corruption and fraud charges stemming from a conspiracy to trade official acts for cash and benefits, announced U.S. Attorney Brian J. Stretch, Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett, U.S. Postal Inspection Service (USPIS) Inspector in Charge Rafael Nuñez, and U.S. Secret Service (USSS) Special Agent in Charge David Thomas. The sentence follows Buenrostro’s guilty plea entered July 11, 2014.
Buenrostro, 67, of Sacramento, is the former Chief Executive Officer (CEO) of CalPERS and admitted that in 2004 he began receiving secret benefits from a placement agent for the purpose of influencing him in the exercise of his powers and duties as CEO. Buenrostro admitted the placement agent gave him approximately $250,000, as well as gifts, domestic and international travel, meals, entertainment, and payment for Buenrostro’s wedding. Further, Buenrostro admitted he also improperly received employment at ARVCO Capital Research LLC (ARVCO) after he left CalPERS in May of 2008. In exchange, Buenrostro attempted to influence the CalPERS investment staff and Board to the benefit of the placement agent and his clients, and provided the agent with access to CalPERS’ confidential information relating to investments, internal deliberations, and other proprietary matters.
In addition, Buenrostro conspired to create a series of fraudulent investor disclosure letters in a scheme to secure fees from a private equity firm based in New York City and agreed with a co-conspirator to make false misrepresentations to, and concealed information from, the Securities and Exchange Commission (SEC), the USPIS, and the FBI after these agencies opened investigations into the operations of ARVCO and its role as a placement agent in connection with CalPERS' investments.
Buenrostro was originally charged by indictment on March 14, 2013, but later charged by superseding information on July 11, 2014, with a single count of conspiracy, in violation of Title 18, United States Code, Section 371. Buenrostro pleaded guilty to the charge in the superseding information.
The sentence was handed down by the Honorable Charles R. Breyer, United States District Judge. In sentencing Buenrostro, Judge Breyer stated the defendant’s conduct amounted to “a spectacular breach of trust for the most venal of purposes.” Judge Breyer also remarked that, “without trust, our public institutions cannot function.” Judge Breyer also imposed a $250,000 fine on the defendant but allowed that fine to be reduced if Buenrostro makes payments in response to certain proceedings brought by the State of California or the SEC.
Buenrostro currently is in custody and will begin to serve his term immediately.
Assistant United States Attorneys Timothy J. Lucey and Philip A. Guentert are prosecuting the case with the assistance of Laurie Worthen and Beth Margen. The prosecution is the result of an investigation by the USPIS and the FBI, with substantial assistance from the Los Angeles Regional Office of the SEC as well as the USSS.
Former Bank Manager Sentenced to Prison for Role in Massive Mortgage FraudRead the Press Release
BOSTON – A former bank manager was sentenced on Friday, May 27, 2016 in connection with a multi-year, multi-property mortgage fraud scheme in Dorchester.
Arthur Samuels, 41, of Mattapan, was sentenced by U.S. District Court Senior Judge Mark L. Wolf to one year and one day in prison, two years of supervised release, and was ordered to pay restitution of $2,229,492. In 2012, Samuels pleaded guilty to four counts of wire fraud and one count of bank fraud.
From 2007 to 2008, Samuels engaged in a scheme with Michael David Scott, and others, to purchase multi-family residences and then sell individual condominium units in the buildings to straw buyers. Scott, a former realtor and developer, arranged to purchase multi-family residences and then sold individual condominium units to straw buyers recruited as investors by him, Samuels, and co-conspirators, Jerold Fowler and Thursa Raetz. Scott and his co-conspirators recruited straw buyers with promises that they would not have to make down payments, pay any funds at closing, or be responsible for mortgage payments, and would share in profits when the units were resold. In order to obtain mortgage loans for some of the straw buyers, Samuels created bogus bank deposits falsely representing that the straw buyers’ accounts had large balances with his bank. Scott then submitted mortgage loan applications that falsely represented key information, such as the buyers’ income, personal assets, down payment, and intention to reside in the condominiums. The mortgage lenders, (nine national mortgage companies and one local bank) were led to believe that the straw buyers had made substantial down payments and paid substantial sums at closing. In addition, Samuels also recruited a straw buyer for the purchase of two condominiums, and acted as a straw buyer himself on three properties.
In November 2015, Scott was sentenced to 135 months in prison, and Fowler and Raetz were sentenced to two years in prison.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Victor A. Wild and Ryan M. DiSantis of Ortiz’s Criminal Division.
Former Bakersfield Police Department Detective Pleads Guilty to Bribery, Drug Trafficking, and Filing a False Tax ReturnRead the Press Release
FRESNO, Calif. — Damacio Diaz, 44, of McFarland, formerly a detective with the Bakersfield Police Department, pleaded guilty today to bribery, possession and attempted possession with the intent to distribute methamphetamine, and making and subscribing a false income tax return, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, between April 2012 and February 2015, while employed as a police officer with the Bakersfield Police Department (BPD), Diaz handled a criminal informant who was involved in the large-scale sale and distribution of methamphetamine. Diaz continued to operate the informant even though he was fully aware of the informant’s ongoing criminal activity. During this time, Diaz received bribes from the informant in return for intelligence on law enforcement activities as well as protection from investigation and arrest.
In addition to accepting illegal bribes, Diaz also engaged in drug trafficking while with the BPD. On September 20, 2012, while on duty, Diaz stopped a vehicle operated by two individuals from Yakima, Washington and used a BPD dog handler and police dog to search the vehicle. The search uncovered an ice chest containing approximately 10 pounds of methamphetamine divided into multiple bags. The BPD dog handler did not seize any of the drugs from the vehicle, but turned the scene over to Diaz and his partner to secure the methamphetamine and oversee the investigation of the incident. A week later, Diaz booked approximately one pound of methamphetamine from the vehicle stop into evidence. Diaz and his partner maintained possession of the remaining nine pounds of methamphetamine, and they ultimately sold it for their own personal gain.
According to the plea agreement, Diaz also filed a joint income tax return for the calendar year 2012 that falsely reported total income of $168,485 and did not include additional income of at least $97,900.
Acting U.S. Attorney Talbert stated: “The defendant attempted to take advantage of the trust placed in law enforcement officers for his personal gain. Law enforcement officers who accept bribes put the public and other law enforcement officers in danger. We appreciate the full cooperation of the Bakersfield Police Department and Chief Williamson, as well as our federal partners, in the investigation of this case.”
“Law enforcement officers who abuse their authority for personal gain betray the community they have been sworn to protect,” stated DEA Special Agent in Charge John J. Martin. “DEA is committed to working with our law enforcement partners to hold those accountable who participate in criminal activity that tarnishes the badge.”
“When individuals working in an official capacity violate the trust of their communities by abusing that power, they undermine the hard work of the entire law enforcement community,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “In exchange for cash, Detective Damacio Diaz agreed to tip-off and protect a known drug dealer. IRS CI followed the funds in his accounts and determined how much of the illegal proceeds did not make it to his tax returns. IRS-CI will continue to work with our law enforcement partners to ensure that those who attempt to illegally profit from their trusted positions are brought to justice.”
“The public rightfully expects every law enforcement officer to obey all laws they are sworn to enforce. Damacio Diaz’s illegal activities were in conflict with public safety, the law, and the safety of his fellow officers,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation Sacramento field office. “Such illegal and dangerous activity is not tolerable—especially when committed by an officer sworn to protect and service his community—and the FBI will continue to work with its partners to ensure any officer who engages in illegal activities and damages public trust in law enforcement faces justice.”
Diaz has also agreed to the forfeiture of $128,000, which constitutes property which was derived from, or is traceable to the proceeds obtained directly or indirectly from the commission of his criminal conduct. This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, and the Bakersfield Police Department. Assistant United States Attorneys Brian K. Delaney and Angela Scott are prosecuting the case.
Diaz is scheduled to be sentenced by Judge Lawrence J. O'Neill on September 26, 2016. Diaz faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Five Cleveland mail carriers indicted for conspiring to deliver shipments of marijuanaRead the Press Release
Five U.S. Postal carriers were charged with conspiring to distribute marijuana after helping arrange shipments of marijuana shipped via the U.S. mail and gave them to another drug dealer, said Carole S. Rendon, Acting U.S. States Attorney for the Northern District of Ohio
Named in the 11-count indictment are Aaron L. Kelly, 28, Dartagnan B. Mitchell, 28, Tamika S. Embry, 32, Devon Blake, 25 and Rashon Blake, 25, all of Cleveland.
Count 1 of the indictment charges all five defendants with conspiracy to possess with the intent to distribute a controlled substance between May and July 2015. Count 2 through 6 charge the defendants individually with public corruption violations for accepting things of value in return for official actions in relation to their jobs. Count 7 through 11 charge the defendants individually with possession with intent to distribute marijuana.
The five postal carriers informed Kevin Collins of their work schedules and addresses on their respective routes. Collins then arranged for packages of marijuana to be shipped to addresses on the routes of the defendants and sent them when he knew the defendants were scheduled to be working, according to the indictment.
Blake, Blake, Embry, Kelly and Mitchell took the parcels containing marijuana and, instead of delivering them to the listed addresses, gave the packages directly to Collins. They often improperly scanned or did not scan the marijuana packages in an effort to disguise the package’s delivery status, according to the indictment.
Collins paid cash to the defendants in return for their actions, according to the indictment.
Collins has pleaded guilty to charges of conspiracy to possess with intent to distribute marijuana and using firearm during drug trafficking crime. He is awaiting sentencing.
“These mail carriers used their positions not to serve the public, but to be spokes in a drug-trafficking organization,” Rendon said. “They violated the trust of the public and their employer, and now must answer to criminal charges.”
U.S. Postal Service Office of Inspector General Special Agent in Charge of the Eastern Area Field Office Monica S. Weyler, said: “The vast majority of the nation’s 400,000 postal employees are honest, hard-working individuals. It is troubling when a few of those employees choose to violate the trust given to them to use their positions for personal gain. These investigations show that USPS OIG special agents and postal inspectors will work diligently to find those few employees who choose to deliver drugs instead of the mail, and will seek their criminal prosecution and removal from the Postal Service. The employees named in these charges threw away their federal career for a few hundred dollars. Other employees who are engaging in this conduct should ask themselves, is it worth it? To report postal employee misconduct or criminal activity, contact special agents at 888-USPS-OIG or www.uspsoig.gov.”
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the Defendant’s role in the offenses and the unique characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorneys Matthew B. Kall and Daniel J. Riedl. The investigation was conducted by the U.S. Postal Inspection Service and Office of Inspector General, Cleveland.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Final Bakersfield Defendants Plead Guilty in Bank Fraud ConspiracyRead the Press Release
FRESNO, Calif. — Edgar Alexander Gomez, 41, and Jennifer Grace Barthel, 36, both of Bakersfield, pleaded guilty today to conspiracy to commit bank fraud, Acting United States Attorney Phillip A. Talbert announced. Gomez additionally pleaded guilty to aggravated identity theft.
According to court documents, between July and September 2012, Gomez and Barthel stole identity documents from the U.S. mail, including driver's licenses, social security cards, and credit and debit cards. On several occasions, Gomez and Barthel attempted to open bank accounts at federally insured financial institutions using the identities of people whose mail they had stolen. In connection with one of their attempts to fraudulently open bank accounts, Gomez and Barthel attempted to negotiate a check after forging the payee’s signature.
San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated: “We are working closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those responsible for complex identity fraud schemes and to protect postal customers' mail and personal information from theft.”
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant United States Attorneys Megan Richards and Christopher Baker are prosecuting the case.
Co-defendant Augustine Castro Salazar, 47, also of Bakersfield, pleaded guilty on November 16, 2015, to theft of U.S. mail. In his plea agreement, Salazar admitted that he and Gomez, on five occasions in August 2012, broke open and stole mail from mail boxes at several U.S. Postal Service facilities in Bakersfield. Salazar remains in custody awaiting sentencing.
Gomez and Barthel are scheduled to be sentenced by U.S. District Judge Lawrence J. O'Neill on September 26, 2016. They face a maximum statutory penalty of 30 years in prison and a $1 million fine for conspiracy to commit bank fraud. Gomez additionally faces a mandatory minimum sentence of two years in prison for aggravated identity theft. Salazar is scheduled to be sentenced on July 25, 2016, and faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Fall River Woman Arrested for Identity Theft and Theft of Social Security BenefitsRead the Press Release
BOSTON – A Jamaican woman living in Fall River was arrested today for using her sister’s identity to enter the United States and collect over $100,000 in Social Security benefits.
Sandra McDonald, 51, was charged in a criminal complaint with aggravated identity theft, theft of public money, passport fraud, and falsely representing a Social Security number. She is scheduled to appear in U.S. District Court in Boston today at 2:30 p.m.
According to the criminal complaint, McDonald was born in Jamaica. In 1990, McDonald obtained a U.S. resident alien card under her sister’s name, but with her own photograph and fingerprint on the card. Shortly after entering the United States under her sister’s identity, McDonald obtained a Social Security card, also in her sister’s name. It is also alleged that in 1996, McDonald applied for Social Security Supplemental Security Income benefits under her sister’s identity, and to date she has received more than $134,000 in benefits illegally.
McDonald also obtained a Massachusetts driver’s license in her sister’s name, but with her own photo on it. In 2008, McDonald used her sister’s identity to apply for a passport for her own son. In 2012, McDonald obtained a Massachusetts state ID card in the name of a third woman.
The charge of aggravated identity theft provides for a mandatory term of two years in prison. The charges of passport fraud and theft of public money each provide for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of misrepresenting a Social Security number provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston 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; Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
El Departamento de Justicia Resuelve una Denuncia de Discriminación Relacionada con la Inmigración contra un Centro de Ancianos y Rehabilitación en CaliforniaRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia llegó hoy a un acuerdo con Villa Rancho Bernardo Care Center (VRB, por sus siglas en inglés), un centro de ancianos y rehabilitación en San Diego. El acuerdo resuelve la investigación de VRB liderada por el Departamento de Justicia en cuanto a su discriminación contra individuos que no son ciudadanos de los EE. UU. pero que sí cuentan con autorización para trabajar, lo cual representa una vulneración de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés).
La investigación del departamento encontró que VRB había discriminado a residentes permanentes legales al requerir que presentaran documentos específicos para demostrar su autorización para trabajar, mientras que permitía a ciudadanos estadounidenses que presentaran cualquier documento válido de autorización para trabajar que quisieran. En concreto, durante los procesos de entrevista y contratación, incluyendo en ciertos anuncios de trabajo virtuales, VRB exigió a residentes permanentes legales que presentaran una tarjeta de residencia permanente (a la que se suele llamar “tarjeta verde”). Los residentes permanentes legales no están obligados a enseñar sus tarjetas de residencia permanentes a empleadores para poder trabajar. Como todo trabajador, pueden presentar los documentos válidos de su libre elección de las listas de documentos aceptables del Departamento de Seguridad Nacional para establecer su identidad y autorización para trabajar. Por ejemplo, los residentes permanentes legales pueden establecer su autorización para trabajar al presentar un documento de identificación estatal o federal y una tarjeta de seguro social sin restricciones.
En virtud del acuerdo de resolución, VRB pagará $24,000 en sanciones civiles a los Estados Unidos, participará en la capacitación sobre la disposición antidiscriminatoria de la INA brindada por el departamento y se someterá a los requisitos de supervisión.
“La División de Derechos Civiles se compromete a asegurar que los individuos con autorización para trabajar en los Estados Unidos no se enfrenten a barreras ilícitas o discriminatorias,” declaró la Secretaria de Justicia Auxiliar Adjunta Principal, Vanita Gupta, Directora de la División de Derechos Civiles. “Es esencial que los empleadores revisen sus prácticas de verificación de la elegibilidad para trabajar para asegurarse de que éstas cumplan con la Ley.”
La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas con la Inmigración (OSC, por sus siglas en inglés) es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus de ciudadanía, estatus migratorio y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad de empleo; las represalias y la intimidación.
Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias federales, llame a la línea directa de la OSC para trabajadores al 1‑800‑255‑7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); matricúlese para un seminario virtual gratuito en www.justice.gov/crt/about/osc/webinars.php; mande un correo electrónico a [email protected] o visite la página web de la OSC en www.justice.gov/crt/about/osc.
Los aspirantes o empleados que creen haber sido víctimas de: requisitos documentales diferentes por motivos de su estatus de ciudadanía, estatus migratorio o nacionalidad de origen; o discriminación por motivos de su estatus de ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión deben comunicarse con la línea directa de la OSC para trabajadores para pedir ayuda.
Deloitte Consulting LLP Agrees to Pay $11 Million for Alleged False Claims Related to General Services Administration ContractRead the Press Release
The Department of Justice announced today that Deloitte Consulting LLP (Deloitte) has agreed to pay $11.38 million to resolve allegations under the False Claims Act that it submitted false claims under a General Services Administration (GSA) contract. Deloitte is a nationwide consulting company headquartered in New York City.
“Contractors are expected to deal fairly with federal agencies when receiving taxpayer funds,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “As this settlement demonstrates, we will take action against those who knowingly fail to live up to the terms of their government contracts.”
In 2000, GSA awarded Deloitte a contract for the provision of information technology services. The contract required Deloitte to reduce the prices it charged the government if it offered lower prices to specific commercial customers during the course of the contract. This settlement resolves allegations that between 2006 and 2012, Deloitte failed to comply with the price reductions clause in its contract, resulting in government customers paying more for Deloitte’s services than comparable commercial customers.
“American taxpayers deserve fair deals and prices from GSA contractors,” said GSA Inspector General Carol Fortine Ochoa. “I appreciate the hard work and dedication that led to this significant recovery.”
This case was handled by the Civil Division’s Commercial Litigation Branch and the GSA Office of Inspector General.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Conspirator Sentenced to over 12 Years in Prison for Robbing Four BanksRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Malcolm Xavier Green, age 24, of Temple Hills, Maryland, today to 154 months in prison followed by three years of supervised release for bank robbery conspiracy, bank robbery, armed bank robbery and brandishing a firearm in relation to a bank robbery. Judge Bennett also ordered Green to pay restitution of $10,593.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; Chief Hank Stawinski of the Prince George’s County Police Department; Kent County Sheriff John F. Price IV; Loudoun County Sheriff Michael L. Chapman; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, Green and co-defendant Andrew Walker robbed three banks in Maryland and one bank in Virginia. On July 1, 2015, Green and Walker entered the BB&T Bank on Allentown Road in Camp Springs, Maryland. Walker passed a note to a teller demanding money in large and small bills. When the bank teller stated that she did not have large bills, Walker patted his waistband with his hand. The teller believed that this motion was meant to indicate that Walker had a weapon. The teller provided money and the defendants left.
On July 13, the defendants presented a demand note to a teller at the Essex Bank on Ingleside Road in Baltimore. The teller provided cash and the defendants left with approximately $100. A dye pack ignited in Green’s pants, burning his legs and ruining the money.
On July 17, the defendants walked into the BB&T Bank on Cypress Avenue in Millington, Maryland. Green passed the teller a note demanding money, and threatening to come back shooting if his demands were not met. When the teller hesitated, Walker pulled out a gun from his waistband, brandishing it several times. The teller provided cash and the defendants left.
On July 24, 2015, the defendants entered the BB&T Bank in Lovettsville, Virginia. Green brandished a gun and gave the teller a note demanding money and no dye packs. The teller provided money and the defendants left.
The total amount that the defendants stole from the banks was in excess of $10,590.
Investigators identified the defendants through fingerprint analysis on a robbery note, law enforcement databases and surveillance footage of the robberies. Green and Walker were arrested on August 3, 2015.
Andre Antoine Walker, age 23, of Temple Hills, previously pleaded guilty to his participation in the conspiracy and is scheduled to be sentenced on July 21, 2016 at 3:00 p.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Prince George’s County Police Department, Kent County Sheriff’s Office, Loudoun County Sheriff’s Office and the Maryland State Police for their work in the investigation. Mr. Rosenstein thanked the Loudoun County Commonwealth’s Attorney’s Office for their assistance, and Assistant United States Attorney Aaron S. J. Zelinsky, who prosecuted the case.
California Man Pleads Guilty to Defrauding Investors of More Than $550,000Read the Press Release
ROCKFORD — A California man pleaded guilty today before U.S. District Judge Philip G. Reinhard to wire fraud. According to the written plea agreement, TRAVIS OLIVER, 39, admitted to defrauding investors by making false representations regarding their investments in Electus Asset Holdings.
In the plea agreement, Oliver admitted that he was the sole managing member of Electus Asset Holdings, and that both he and his co-defendant, TODD C. SMITH, 48, of Rockford, engaged in a scheme between July 15, 2009, and March 2012, to defraud investors. Oliver admitted that he falsely represented to potential investors that their investments would be returned in one year, yielding a guaranteed rate of interest per month, and that the funds could be withdrawn at any time without penalty. Oliver further admitted that he knew a majority of the investors’ funds was used to pay for his own personal expenses and other items, including sales commissions paid to Oliver and Smith.
Oliver further admitted that in order to conceal his scheme and prevent the investors from demanding the return of their investments, he used funds from new investors to pay interest and principal to prior investors in Electus Asset Holdings and in a previous investment Oliver had offered. Oliver admitted that he had mailed monthly statements and IRS forms to investors that falsely stated the investors had earned interest on their investments.
According to the plea agreement, when investors requested the return of their interest and principal, Oliver made false statements and promises to conceal the fact the investors’ money had been spent or lost in high risk investments, including that investors’ checks were going to be issued shortly, that their checks were lost in the mail, and that investors’ funds had been invested in a company whose assets had been frozen by the Federal Trade Commission.
Wire fraud carries a maximum penalty of 20 years in prison, and a maximum fine of $250,000 or twice the loss or twice the gain derived from the offense, whichever is greater. Sentencing is set for September 19, 2016, at 9:00 a.m.
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; and Antonio Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The Illinois Secretary of State's Securities Department assisted in the investigation.
As to co-defendant Todd C. Smith, the public is reminded that an indictment contains only charges and is not evidence of guilt. Smith is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
Businessman Charged with Sex Trafficking a MinorRead the Press Release
PROVIDENCE, R.I. – Lewis Valenti, 41, a West Kingston, R.I., businessman with residences in Reading, Mass., and East Greenwich, R.I., made an initial appearance in U.S. District Court in Providence today on a criminal complaint charging him with conspiracy to transport a minor interstate for prostitution and transporting a minor interstate for prostitution.
U.S. District Court Magistrate Judge Lincoln D. Almond ordered Valenti released on $50,000 unsecured bond to home confinement at his Massachusetts residence, with electronic monitoring.
Earlier this month, Kedwin Vargas, 25, and Rene A. Laureano, 30, of Roxbury, Mass., were arrested and ordered detained in this matter. Vargas and Laureano are charged by way of federal criminal complaints with conspiracy to transport a minor interstate for prostitution and transporting a minor interstate for prostitution.
The charges against Valenti, Vargas and Laureano are announced by United States Attorney Peter F. Neronha, Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI, and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
According to court documents, it is alleged that in March 2016, Lewis Valenti contacted Rhode Island State Police and alleged that Kedwin Vargas was attempting to extort him by threatening to provide a video and audio recording to his family which contained information regarding sexual encounters he allegedly had with a minor female in exchange for payment. An investigation by Rhode Island State Police and the FBI revealed numerous text messages and cell phone conversations between Vargas and others with Lewis, in which it is alleged that Vargas is identified as the person allegedly attempting to extort $10,000 in cash from Valenti.
According to court documents, the investigation revealed that more than a year ago, Vargas allegedly began posting ads on backpage.com offering a minor female for prostitution. It is alleged that on numerous occasions, Laureano, who was previously employed at Valenti’s agriculture business in West Kingston, R.I., would drive the female to meet with customers, including Valenti. It is alleged in court documents that Valenti admitted to investigators that he had sexual contact with the female on numerous occasions over the past two years at his East Greenwich apartment and at several local hotels.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The cases are being prosecuted by Assistant U.S. Attorney William J. Ferland.
The Warwick, R.I., and Boston Police Departments assisted the FBI and Rhode Island State Police in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
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Broward Resident Sentenced to Prison for his Participation in a Jamaica Based Lottery Fraud SchemeRead the Press Release
A Broward County resident was sentenced to prison today for his role in a Jamaica based telemarketing fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Raymond Moss, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
Delroy Drummond, 25, of Hollywood and Miami Gardens, was sentenced to 41 months’ imprisonment, to be followed by three years of supervised release. Drummond was also ordered to pay $421,411 in restitution for his role in a Jamaica based lottery fraud scheme. Drummond previously pled guilty to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349.
According to documents and information presented in court, beginning in or about April 2015, Drummond’s co-conspirators contacted elderly victims in the United States and falsely informed them that they had won a lottery. These co-conspirators told victims they had to pay several thousand dollars in taxes and fees in order to collect their purported lottery winnings. The co-conspirators then instructed the victims on how to send this money, and to whom, including directing that the funds be sent to Drummond.
In September 2013, Drummond was contacted in Miami, Florida, by law enforcement regarding a package, which was sent through the mail, containing money from a victim of the fraudulent scheme. At that time, Drummond was confronted with the fact that he was participating in a lottery scheme and was warned by law enforcement to stop receiving money from victims of telemarketing fraud.
In April 2015, Drummond obtained money wired to him under a fictitious name from a victim who had been falsely told he/she had won a $2.5 million lottery prize. Drummond used fraudulent identification in order to receive these funds. In May 2015, Drummond obtained money wired to him under a fictitious name from another victim who was falsely informed he/she had won a lottery prize. Between April 2015 and December 2015, Drummond received numerous packages containing money via the United States Mail, Federal Express, and United Parcel Service from multiple victims located throughout the United States.
Mr. Ferrer commended the investigative efforts of USPIS, Homeland Security Investigations, U.S. Marshal Service, Broward Sheriff’s Office Narcotics Interdiction Task Force and the Miami Dade Police Department Economic Crimes Unit. The case was prosecuted by Assistant United States Attorney Randy Katz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Attorney General Presents Irving Police Department Detective with Award at National Missing Children's Day CeremonyRead the Press Release
DALLAS — A detective with the Irving Police Department, Joe DelFierro, was honored Wednesday by Attorney General Loretta E. Lynch at the Department of Justice’s Office of Juvenile Justice and Delinquency Prevention’s National Missing Children’s Day Ceremony held in Washington, D.C., announced U.S. Attorney John Parker of the Northern District of Texas and Chief Larry Boyd of the Irving Police Department.
Detective DelFierro was presented the Missing Children’s Law Enforcement Award, which is awarded to a law enforcement officer who made a significant investigative or program contribution to the safety of children. Detective DelFierro was recognized for his work in recovering a group of young girls, ages 11 to 14, who ran away from a mental health facility and were subsequently prostituted by two sex traffickers. Those sex traffickers were federally prosecuted in the Northern District of Texas, where they were convicted and sentenced to federal prison terms of 293 months and 188 months.
“Detective DelFerrio's relentless and noble efforts to identify and neutralize those responsible for these girls’ horrific experience are profoundly inspiring,” said U.S. Attorney Parker. “I am honored to join in recognizing his tireless service on the front lines of protecting the most vulnerable among us.”
“We are all proud of Detective DelFerrio for receiving this well-deserved recognition,” said Chief Larry Boyd. “It was through his dedicated efforts that these girls were rescued from a desperate and dangerous situation. The girls can now start recovering from their traumatic experience with the assurance that the predators who victimized them will be locked away for a very long time.”
President Ronald Reagan proclaimed May 25, 1983, the first National Missing Children’s day to remember Etan Patz, a six-year-old boy who disappeared from a New York City street corner on May 25, 1979. Missing Children’s Day honors his memory and the memories of children still missing, and every year, citizens, public agencies and private organizations gather to commemorate the day and renew their commitment to find missing children.
“The extraordinary people we honor today remind us that our nation has no more solemn obligation and no greater responsibility than the protection of our children,” said Attorney General Lynch. “The Department of Justice is proud to stand with them – and with law enforcement officers, advocates and families throughout the country – as we work toward a safer and brighter future for all our young people.”
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Friday 27 May 2016
Waynesville Apartments Owner Pleads Guilty to $18.2 Million Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of apartment complexes in Pulaski County, Mo., pleaded guilty in federal court to an $18.2 million fraud scheme.
James J. Laughlin, 74, of Waynesville, Mo., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush on Thursday, May 26, 2016, to a federal information that charges him with making false statements and reports on a loan application.
Laughlin, one of the operators of 4-J Apartments, admitted that he provided false information to the Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) in order to obtain an $18,219,400 loan in 2012 for the operation and maintenance of 232 apartments and complexes in Pulaski County.
Laughlin involved Richard Newman DeLong, 50, of Newburg, Mo., an employee of Brookshire Concrete, in the fraud scheme. Delong, who was fired by the company for his role in the scheme, worked with Laughlin to make it appear that Brookshire Concrete was renting apartments from 4-J. This would allow 4-J to artificially inflate its occupancy levels in order to qualify for the FHA loan.
Delong, while employed by Brookshire Concrete, issued numerous checks that were made payable to 4J Apartments. These checks contained the forged signature of the company’s owner.
Laughlin submitted rent roll documents to FHA and HUD that indicated Brookshire Concrete was renting 20 apartments from 4-J to house some of its workers. Laughlin admitted, however, that none of Brookshire’s employees ever lived in any of 4-J’s apartments. Laughlin repaid the monies received from Brookshire Concrete by issuing checks from 4-J to Brookshire Concrete, ostensibly for concrete work. These gave the appearance that rent was being paid by Brookshire Concrete while 4-J was paying for concrete work in return.
According to the plea agreement, Laughlin had been denied funding by HUD in 2010 and again in 2012 because the occupancy rates at 4-J’s apartments were below 95 percent. HUD noted that the loan would not be approved because there would be insufficient rental income to repay the loan, creating a high risk of default. By inflating occupancy rates with the fraudulent rental roll documents, it appeared that 4-J’s occupancy rate was 95.7 percent; HUD reversed itself and approved Laughlin’s request for funding. The actual occupancy rate was only approximately 86 percent – below the level HUD and FHA set as a condition for approving the loan.
DeLong pleaded guilty to his role in the fraud scheme and is scheduled to be sentenced on June 15, 2016.
Laughlin must forfeit to the government $18,219,400. Under federal statutes, Laughlin is subject to a sentence of up to 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Department of Housing and Urban Development, Office of Inspector General.
Washington, DC Man Sentenced to 75 Years in Prison for Armed Robbery and Carjacking ShootingsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Anthony Terrell Cannon, age 26, of Washington, D.C., today to 75 years in prison, followed by five years of supervised release, for conspiracy, robbery, carjacking, and two counts of discharging a gun during a crime of violence, and interstate transportation of a stolen vehicle, in connection with an armored car robbery and a carjacking in which a victim was shot in the arm and head. Cannon was convicted on September 12, 2014.
Judge Chasanow ordered that 50 years of today’s sentence is to be served consecutive to the 60 year sentence Cannon previously received in the U.S. District Court for the Eastern District of Virginia for other crimes. Cannon has also been sentenced to life in prison in the Prince George’s County Circuit Court.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; the members of the FBI Cross Border Task Force - Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; Assistant Director in Charge Paul M. Abbate of the Federal Bureau of Investigation - Washington Field Office; Chief Hank Stawinski of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; Chief Alan Goldberg of the Takoma Park Police Department; Montgomery County State’s Attorney John McCarthy; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to the evidence presented at Cannon’s two week trial, on October 26, 2012, Cannon, Tonnie Floyd, and Marcellus Ramone Freeman, a/k/a Derrick Relando Pitts, driving a stolen Jeep, followed a Garda Cash Logistics armored transport vehicle to the Cricket store located in the 1300 block of University Boulevard East, Takoma Park, Maryland. A Garda employee exited the armored truck, went into the store and picked up a bag containing $3,911. As the employee returned to the armored truck, he was confronted by two co-conspirators with guns. The Garda employee dropped the money bag and at least one co-conspirator fired a gun at the employee. The employee shot back. One of the co-conspirators picked up the money bag. The co-conspirators ran back to the stolen Jeep. As the co-conspirators drove away, the employee continued to fire his handgun at the Jeep, striking a tire and the back window. Floyd was wounded in the shoulder during the gunfire.
The co-conspirators left the Jeep in a neighborhood nearby because it had a flat tire as a result of the shooting. They saw a man entering a vehicle, and shot the man in the arm and head, causing permanent and life-threatening bodily injury, then stole his vehicle. They drove the vehicle into the District of Columbia, where they set it on fire.
Police evidence personnel recovered blood containing DNA of Floyd from the back seat of the Jeep. Floyd went to a hospital in the District of Columbia for medical treatment of his gunshot wound on October 26, 2012 at approximately 8:20 p.m. The Garda money bag was found in the Jeep and the bag had Freeman’s finger and palm prints upon it. A drink bottle was recovered from the front console area of the Jeep Cherokee that had DNA of Cannon on the top area that would have come into contact with his mouth when drinking.
The evidence also included a recorded call between Cannon and an inmate at Prince George’s County Detention Center in which Cannon acknowledged his participation in the crimes and expressed disappointment in leaving an evidence trail in the stolen Jeep.
Co-conspirator Tonnie Floyd, age 23, of Washington, D.C., previously pleaded guilty to robbery, and discharging a gun during the robbery and carjacking and was sentenced to 222 months in prison. Marcellus Ramone Freeman, a/k/a Derrick Relando Pitts, age 24, also of Washington, D.C., pleaded guilty to the same offenses. Freeman and the government have agreed that if the Court accepts his plea, Freeman will be sentenced to between 241 months and 30 years in prison at his sentencing on June 6, 2016.
United States Attorney Rod J. Rosenstein praised the FBI Baltimore and Washington Field Offices, the Prince George’s County and Montgomery County Police Departments, the Metropolitan Police Department, the Takoma Park Police Department and the Prince George’s County and Montgomery County State’s Attorney’s Offices for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Bryan E. Foreman, who prosecuted the case.
Virginia Man Indicted for Conspiracy to Provide Material Support to ISILRead the Press Release
Mahmoud Amin Mohamed Elhassan, 26, of Woodbridge, Virginia, was indicted by a grand jury late yesterday on charges of conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization; aiding and abetting the provision of material support to ISIL; and making false statements to the FBI.
The indictment was announced by Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Dana J. Boente of the Eastern District of Virginia.
According to the indictment, from on or about Aug. 1, 2015, until Jan. 15, 2016, Elhassan unlawfully and knowingly conspired with Joseph Hassan Farrokh to provide material support or resources to ISIL. In furtherance of the conspiracy, on Jan. 15, 2016, Elhassan drove Farrokh to Richmond, Virginia, in order to enable Farrokh to fly to overseas to join ISIL.
According to the indictment, Elhassan also attempted to provide material support or resources to ISIL by aiding and abetting Farrokh’s attempt to join ISIL. Elhassan’s aiding and abetting included introducing Farrokh to an individual that Elhassan believed could facilitate Farrokh’s travel overseas; driving Farrokh from Farrokh’s home to Richmond so that Farrokh could embark on his travel to join ISIL; and making false statements to the FBI about Farrokh’s travel in order to hinder the government’s investigation of Farrokh’s travel.
According to the indictment, Elhassan knowingly, unlawfully and willfully made material false, fictitious and fraudulent statements and representations in a matter involving international terrorism, including: On Jan. 15, 2016, Elhassan falsely stated to FBI agents that Farrokh had flown out of Dulles Airport earlier that day on a flight to California to attend a funeral; that Farrokh had said that he would be back in about two weeks; that neither he nor Farrokh supported ISIL; and neither he nor Farrokh ever tried to find someone to help them get to ISIL.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty.
If convicted, Elhassan faces a maximum sentence of 48 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
The case is being investigated by the FBI Washington Field Office Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Dennis M. Fitzpatrick and Gordon D. Kromberg of the Eastern District of Virginia, along with Trial Attorney D. Andrew Sigler of the National Security Division’s Counterterrorism Section.
Valencia County Man Sentenced to Federal Prison for Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Erik Molinar-Gonzalez, 32, of Los Lunas, N.M., was sentenced yesterday in federal court in Albuquerque, N.M., to 70 months in prison followed by four years of supervised release for his heroin trafficking conviction.
Molinar-Gonzalez was arrested in Sept. 2015, and was charged by criminal complaint with heroin and methamphetamine trafficking offenses. According to the complaint, on Sept. 9, 2015, New Mexico State Police (NMSP) officers found a kilogram of heroin in a vehicle during a traffic stop on Interstate 40 in Albuquerque. Investigation revealed that the heroin was to be delivered to Molinar-Gonzalez later that same day. Later that day, agents of Homeland Security Investigations (HSI) and NMSP officers arrested Molinar-Gonzalez and executed searches of his vehicle and residence. The officers found 7.35 grams of methamphetamine in his vehicle and 45.5 grams of methamphetamine and 9.17 grams of heroin in his residence.
Molinar-Gonzalez was indicted on Oct. 7, 2015, and charged possessing heroin and methamphetamine with intent to distribute. On Jan. 12, 2016, Molinar-Gonzalez pled guilty to possessing heroin with intent to distribute.
This case was investigated by the Albuquerque office of HSI and the NMSP. Assistant U.S. Attorney David M. Walsh prosecuted the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Undocumented Alien Sentenced to 15 Months’ Imprisonment for Assaulting a Douglas Border Patrol AgentRead the Press Release
TUCSON – On May 27, 2016, Juan Pablo Vasquez-Campos, 38, of Aguas Calientes, Mexico, was sentenced by U.S. District Judge Cyndy K. Jorgenson to 15 months’ imprisonment to be followed by three years of supervised release. Vasquez-Campos had previously pleaded guilty to assault on a federal officer and illegal re-entry.
Vasquez-Campos resisted arrest and scuffled with a Border Patrol agent in the desert terrain near Douglas, Ariz. During the struggle, Vasquez-Campos struck the agent with his elbow in an effort to avoid apprehension.
The investigation in this case was handled by the United States Border Patrol. The prosecution was handled by Raquel Arellano, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-16-00533-TUC-CKJ
RELEASE NUMBER: 2016-051_Vasquez-Campos
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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U.S. Servicemember Admits to Illegally Retaining Photos Taken Inside Nuclear Submarine and Impeding InvestigationRead the Press Release
Kristian Saucier, 29, of Arlington, Vermont, pleaded guilty today before U.S. District Judge Stefan R. Underhill of the District of Connecticut to one count of unauthorized possession and retention of national defense information.
The guilty plea was announced by Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Deirdre M. Daly of the District of Connecticut.
According to court documents and statements made in court, from September 2007 to March 2012, Saucier served as a machinist’s mate aboard the USS Alexandria, which is a U.S. Navy Los Angeles-class nuclear attack submarine based at the Naval Submarine Base New London in Groton, Connecticut. On at least three separate dates in 2009, Saucier used the camera on his personal cellphone to take photographs of classified spaces, instruments and equipment of the USS Alexandria, documenting the major technical components of the submarine’s propulsion system.
On Jan. 19, 2009, Saucier took two photos, one of the auxiliary steam plant panel and the other of the reactor compartment viewed through a portal. On March 22, 2009, Saucier took two photos that, when placed side by side, provided a panoramic array of the maneuvering compartment, the room from which the propulsion system of the boat is operated. On July 15, 2009, Saucier took two photos documenting the reactor head configuration of the nuclear reactor and a view of the reactor compartment from within that compartment.
Saucier had a secret clearance and knew that the photos depicted classified material and that he was not authorized to take them. He retained these photos and failed to deliver them to any officer or employee of the United States entitled to receive it.
The investigation began in March 2012 when Saucier’s cellphone was found at a waste transfer station in Hampton, Connecticut. Saucier was interviewed by the FBI and Naval Criminal Investigative Service (NCIS) in July 2012 and was confronted with the classified images from his phone. Following that interview and in an effort to impede the federal investigation, Saucier returned to his home and immediately destroyed a laptop computer, a personal camera and the camera’s memory card. Pieces of a laptop computer were subsequently found in the woods on a property in Connecticut owned by a member of Saucier’s family.
Saucier was arrested on a criminal complaint on May 28, 2015, and was subsequently indicted.
Judge Underhill scheduled sentencing for Aug. 19, 2016, at which time Saucier faces a maximum sentence of 10 years in prison and a fine of up to $250,000. He is released on a $100,000 bond.
Saucier is currently enlisted in the U.S. Navy as a Petty Officer First Class assigned to the Naval Support Activity Base, Saratoga Springs, New York. He is awaiting an administrative separation board proceeding.
This matter has been investigated by the FBI and NCIS. The case is being prosecuted by Assistant U.S. Attorneys Vanessa Richards and Jacabed Rodriguez-Coss of the District of Connecticut and Trial Attorney Will Mackie of the National Security Division’s Counterintelligence and Export Control Section, with the assistance of the U.S. Attorney’s Office of the Northern District of New York.
U.S. Servicemember Admits to Illegally Retaining Photos Taken Inside Nuclear Sub, Impeding InvestigationRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Assistant Attorney General for National Security John P. Carlin announced that KRISTIAN SAUCIER, 29, of Arlington, Vt., pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of unauthorized possession and retention of national defense information.
According to court documents and statements made in court, from September 2007 to March 2012, SAUCIER served as a machinist’s mate aboard the USS Alexandria, which is a U.S. Navy Los Angeles-class nuclear attack submarine based at the Naval Submarine Base New London in Groton, Conn. On at least three separate dates in 2009, SAUCIER used the camera on his personal cellphone to take photographs of classified spaces, instruments and equipment of the USS Alexandria, documenting the major technical components of the submarine’s propulsion system.
On January 19, 2009, at approximately 4:00 a.m., SAUCIER took two photos, one of the auxiliary steam plant panel and the other of the reactor compartment viewed through a portal. On March 22, 2009, at approximately 1:30 a.m., SAUCIER took two photos that, when placed side by side, provided a panoramic array of the Maneuvering Compartment, the room from which the propulsion system of the boat is operated. On July 15, 2009, at 12:47 p.m., SAUCIER took two photos documenting the reactor head configuration of the nuclear reactor and a view of the reactor compartment from within that compartment.
SAUCIER had a Secret clearance and knew that the photos depicted classified material and that he was not authorized to take them. He retained these photographs and failed to deliver them to any officer or employee of the U.S. entitled to receive it.
The investigation began in March 2012 when SAUCIER’s cellphone was found at a waste transfer station in Hampton, Conn. SAUCIER was interviewed by the Federal Bureau of Investigation and Naval Criminal Investigative Service in July 2012 and confronted with the classified images from his phone. Following that interview and in an effort to impede the federal investigation, SAUCIER returned to his home and immediately destroyed a laptop computer, a personal camera and the camera’s memory card. Pieces of a laptop computer were subsequently found in the woods on a property in Connecticut owned by a member of SAUCIER’s family.
SAUCIER was arrested on a criminal complaint on May 28, 2015 and was subsequently indicted.
Judge Underhill scheduled sentencing for August 19, 2016, at which time SAUCIER faces a maximum term of imprisonment of 10 years and a fine of up to $250,000. He is released on a $100,000 bond.
SAUCIER is currently enlisted in the U.S. Navy as a Petty Officer First Class assigned to the Naval Support Activity Base, Saratoga Springs, N.Y. He is awaiting an administrative separation board proceeding.
This matter has been investigated by the Federal Bureau of Investigation and the Naval Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorneys Vanessa Richards and Jacabed Rodriguez-Coss, and Trial Attorney Will Mackie from the Justice Department’s National Security Division, with the assistance of the U.S. Attorney’s Office for the Northern District of New York.
U.S. Reaches ADA Settlement with Village of Byesville, OHIORead the Press Release
COLUMBUS, Ohio – The United States has reached a settlement agreement with the Village of Byesville, Ohio in Guernsey County after initiating a compliance review under the Americans with Disabilities Act (ADA).
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, announced the settlement finalized last week.
The U.S. Attorney’s Office for the Southern District of Ohio initiated a compliance review in the village after receiving a citizen complaint stating that many buildings and facilities in the village were inaccessible to individuals with disabilities.
Specifically, the review included: the Byesville Village Hall, sidewalks and curb cuts near the Village Hall, the Byesville Village Park and Byesville Water Treatment Plant. Based on its review, the United States concluded that qualified individuals with disabilities are excluded from participation in or denied the benefits of many of Byesville’s programs, services or activities.
The settlement agreement sets out general and specific remedies, which include making facilities readily accessible to individuals with disabilities, by making modifications to sidewalks, curb ramps, entry and internal doors, signage, door knobs, counters, maneuvering clearance, restrooms and the parking lot at Village Hall, among other things.
Changes to be made at the Village Park will include accessible parking spaces with signage, modifications to the vending machines and accessible routes to picnic tables, benches, drinking fountains, park shop, park pavilion and gazebo.
Remedies at the Water Treatment Plant include modifications to the restroom and parking lot spaces, slope and access.
“This settlement represents our commitment both to ensuring full compliance with the ADA and working cooperatively with local governments and businesses to guarantee that compliance, thereby ensuring equal access for all Americans,” Acting U.S. Attorney Glassman said.
The agreement will remain in effect for three years and is effective immediately.
Acting U.S. Attorney Glassman commended Byesville Mayor Jay Jackson and Brennan Dudley, Village Administrator, for their cooperation, as well as Assistant U.S. Attorney John J. Stark and Special Assistant U.S. Attorney Leah M. Wolfe, who are representing the United States in this matter. He also recognized the efforts of Department of Justice Division of Civil Rights Attorney Elizabeth Johnson and Department of Justice Architect Thomas Fodor.
Two Men Sentenced for Wildlife TraffickingRead the Press Release
James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced today that Billy Michael Reed, 61, of Benton, Illinois, and Matthew Michael Adams, 32, of Arad, Alabama, have pled guilty and have been sentenced on charges of trafficking wildlife under the Lacey Act. On March 21, 2016, and on May 23, 2016, the United States District Court in Benton, Illinois sentenced Reed and Adams, respectively, to one year of probation and ordered each to pay $2,500 in restitution to the Illinois Department of Natural Resources,
Court proceedings indicated that the defendants, who operated M&M Outfitters, an outfitting and guide business, conducted the business for the hunting deer without the required permits and had such deer transported outside the state to Pennsylvania. The Illinois Wildlife Code requires that, before any person provides or offers to provide, for compensation, outfitting services for deer hunting, the person must apply for and receive a permit from the Illinois Department of Natural Resources. Federal law prohibits the interstate transport of illegally-gotten game.
The case was investigated by the U.S. Fish and Wildlife Service – Office of Law Enforcement and the Illinois Department of Natural Resources – Conservation Police. The case is being prosecuted by Assistant United States Attorney William E. Coonan.
Two California Men Sentenced to Combined 70 months in Federal Prison for Conspiracy to Distribute Oxycodone and HydromorphoneRead the Press Release
BOISE – Michael Kulikoff, 30, and Kenneth Miller, 57, both of California City, California, were sentenced yesterday for their role in a conspiracy to distribute oxycodone and hydromorphone, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill sentenced Kulikoff to 24 months in prison, three years of supervised release, and ordered him to forfeit $15,000 in cash proceeds. Judge Winmill sentenced Miller to 46 months in prison, three years of supervised release, and ordered him to forfeit $8,000 in cash proceeds. Both Kulikoff and Miller pleaded guilty on March 8, 2016.
According to the plea agreement and court proceedings, Kenneth Miller, Diana Miller, and Crystal Clark sold their prescriptions of oxycodone to Kulikoff. Kulikoff admitted to distributing those and other prescription pills in Boise, Idaho. Kulikoff admitted that he distributed between 500 and 1750 30mg pills of oxycodone to a confidential informant and an undercover officer in Idaho. At sentencing, Judge Winmill found that Miller obstructed justice by threatening a witness in California, and imposed a higher sentence on him.
Co-defendants Diana Miller, 41, and Crystal Clark 43, also of California City, California, were previously sentenced to prison. Diana Miller was sentenced on January 15, 2016, to 15 months in prison, five years of supervised release, and was ordered to forfeit $1,400 in cash proceeds. Crystal Clark was sentenced on April 21, 2016, to 18 months in prison, three years of supervised release, and was ordered to forfeit $8,000 in cash proceeds.
The case was investigated by the Drug Enforcement Administration and the Boise Police Department as an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation. OCDETF partners include the Federal Bureau of Investigation; Drug Enforcement Administration (DEA); Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement’s; Homeland Security Investigations; Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service.
The case was initiated and investigated by the Boise Police Department, and the DEA led Tactical Diversion Squad which is comprised of law enforcement personnel from the DEA, Ada County Sheriff’s Office, Boise Police Department, Idaho State Police, Meridian Police Department, Nampa Police Department and U.S. Department of Health and Human Services Office of Inspector General.
Twin Falls Man Sentenced to 40 Months in Federal Prison for Firearm OffensesRead the Press Release
BOISE – Shem Kirk Hansen, 37, of Twin Falls, Idaho, was sentenced yesterday to 40 months in prison for unlawful possession of firearms and possession of a sawed-off shotgun, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Hansen to serve three years of supervised release, to pay a $500 fine, and to forfeit the firearms that he possessed. Hansen pleaded guilty on March 7, 2016.
According to the plea agreement, a state search warrant was served on Hansen’s trailer in Gooding County on September 28, 2015. Law enforcement seized five firearms from the trailer. On October 16, 2015, the defendant was arrested in a vehicle in Hailey, Idaho, and was found to be in possession of three shotguns, one of which was sawed-off. Hansen had previously been convicted of burglary and possession of a controlled substance and was therefore prohibited from possessing any firearms.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Gooding County Sheriff’s Department and the Blaine County Sheriff’s Department.