Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 19 May 2016
Sterling Heights Man Sentenced to 30 Years in Prison for Child Exploitation CrimesRead the Press Release
A Sterling Heights man was sentenced to more than 30 years in federal prison after having been convicted in January by a jury of producing child pornography and enticing a minor online, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation.
Dennis George Dehate, 51, was sentenced yesterday by United States District Judge Sean Cox in Detroit.
Evidence presented during the trial established that DeHate preyed upon a 13-year-old girl, convincing her to produce sexually explicit images and videos for him. DeHate used the text message application, KIK, to communicate with the child, who lived out of state.
“Cell phone technology now provides a virtual doorway for sexual predators to enter children’s bedrooms from many states away,” McQuade said. “We urge parents to talk to their children about the dangers of communicating with strangers online, and to assure children that if they are victimized, they should never be ashamed to ask for help.”
“The sentencing of Dehate is a tremendous victory for the many investigators, counselors and non-government organizations tirelessly working to protect our nation’s children from online threats. The fight to eradicate such predators continues and the FBI asks anyone with information regarding such activity to immediately contact their nearest FBI field office or law enforcement agency,” Gelios said.
This case was investigated by Special Agents of the Federal Bureau of Investigation. The case is part of the Project Safe Childhood initiative, and was prosecuted by Assistant United States Attorney Maggie Smith.
St. Louis Area Woman Sentenced on Charges Involving a Credit Card Fraud SchemeRead the Press Release
St. Louis, MO – Cherri Barton was sentenced to 57 months in prison on charges involving a scheme to defraud several elderly victims and credit card issuers of more than $112,588 between August 2012 and May 2015. Barton called elderly individuals and told them their accounts were past due in order to obtain their identifying information and bank account information. She then used the information to purchase items, including gift cards.
According to court documents, in August 2012, Barton began telephoning elderly people with a ruse that their utilities were in danger of being disconnected due to lack of payment. In order to continue service, they were required to provide a credit card number. In further discussions, Barton also obtained identifying information, such as social security numbers and dates of birth. Using this information, Barton contacted the victims’ creditors and added herself as an authorized user to the credit accounts. In order to perpetrate the scheme, Barton also transferred the telephone services of some of the victims to her cell phone so when creditors attempted to contact the legitimate account holders, they reached the defendant.
Barton, St. Louis County, pled guilty in January to one felony count of aggravated identity theft and three felony counts of access device fraud. She appeared today for sentencing before United States District Judge Carol E. Jackson.
The case was investigated by the Postal Inspection Service, St. Louis County Police Department and the cities of Maryland Heights, Florissant, Overland, St. Louis, Clayton, Webster Groves and University City. Assistant United States Attorney Tracy Berry handled the case for the U.S. Attorney’s Office.
St. Joseph Man Indicted for Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man was indicted by a federal grand jury today for robbing UMB Bank.
Terry L. Hager, 48, of St. Joseph, was charged in a federal indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Hager stole $13,957 from UMB Bank, 1211 N. Belt Hwy., St. Joseph, on March 5, 2016.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Alison D. Dunning. It was investigated by the St. Joseph, Mo., Police Department and the FBI.
St. John Man Indicted for Theft of Social Security MoniesRead the Press Release
HAMMOND- United States Attorney David A. Capp announced today that a federal grand jury in Hammond returned a two-count indictment charging a Jerald W. Markward, 62, of Saint John, Indiana with one count of theft of federal money and one count of social security fraud for allegedly applying for and receiving Social Security Disability Insurance Benefits (“SSDIB”) payments despite not being eligible to receive those payments.
The indictment alleges that from about June 2011 to about May 2015, Markward stole $107,291 in SSDIB payments which he was not eligible to receive because he was simultaneously performing outside work in heating, cooling, and refrigeration, and failing to report that additional income as he was required to do.
The case is being investigated by the Social Security Administration and prosecuted by Assistant U.S. Attorney Maria N. Lerner.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
# # #
Springfield Man Indicted on Federal Firearm ChargeRead the Press Release
BOSTON – Kenneth Finch, Jr., 29, of Springfield, was indicted by a federal grand jury in Springfield on one count of being a convicted felon in possession of a firearm.
According to court documents, in June 2015, law enforcement received information that Finch was a source for firearms in the Springfield area. On June 3, 2015, Finch sold a Ruger Model P-90 .45 caliber pistol and six rounds of .45 caliber ammunition to two undercover officers in exchange for $1,200. Finch had prior felony convictions in North Carolina for possession of a firearm by a convicted felon, breaking and entering, attempted burglary in the second degree, and possession with intent to distribute marijuana.
The charge provides a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Katharine A. Wagner of Ortiz’s Springfield Branch Office.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Seven Brockton Residents Indicted on Fentanyl and Firearms ChargesRead the Press Release
BOSTON – Seven Brockton residents were indicted in U.S. District Court in Boston with trafficking fentanyl and with firearms-related charges.
Luis DaCosta, 21, aka “Jesse” and “Slu;” Gilvan Monteiro, 25, aka “G;” Edson Gomes, 19, aka “E” and “Evil;” Seidica Monteiro, 27; Jeffrey Oliveira, 21, aka “Chubbs;” and Justin Marceline, 33, were charged with one count of conspiracy to possess with intent to distribute fentanyl. Gomes and DaCosta are also charged with possession of a firearm in furtherance of a drug trafficking crime. Gabriel Nieves, 24, is also charged with one count of being an unlawful user of controlled substance in possession of a firearm and ammunition.
DaCosta, Gomes and Monteiro were already in federal custody following their arrests on a criminal complaint on April 4, 2016. Monteiro was arrested this morning and detained pending a detention hearing scheduled for May 24, 2016. Marceline is scheduled to appear in U.S. District Court in Boston tomorrow. Oliveira remains a fugitive and information on his whereabouts, should be directed to the Brockton Police Department. Nieves was already in state custody on related state charges.
According to charging documents, from December 2015 to March 2016, the defendants sold fentanyl on numerous occasions in the Brockton area, and several times the drug was seized by law enforcement officers from the defendants’ associates. In addition, on Feb. 11, 2016, law enforcement officers seized a loaded Smith and Wesson .40 caliber handgun from an associate of Gomes’s during a vehicle stop, and seized a loaded Smith and Wesson 9mm handgun and more than 30 grams of fentanyl from the hotel room in which both Monteiro and DaCosta were staying when they were arrested on April 5, 2016.
According to the complaint affidavit, the defendants are alleged to have violent histories and gang associations. Monteiro has a lengthy criminal record which includes narcotics and firearms offenses and assault and battery with a dangerous weapon. According to the affidavit, law enforcement seized fentanyl from Monteiro’s customers on numerous occasions. Gomes, who also has a violent criminal history, is alleged to have engaged in gang-related shootings and a car chase with police as recently as December 2015. According to the affidavit, DaCosta was recently released on bail after he allegedly shot a person in Rhode Island on March 19, 2016. DaCosta also allegedly sold fentanyl to a person that overdosed in February 2016.
This case is brought as part of the federal response to the growing opioid abuse epidemic in Massachusetts and other New England states. A recent surge in overdose deaths has been attributed in part to the addition of Fentanyl to heroin. Fentanyl is a powerful synthetic opiate that is 50 to 100 times more potent than morphine and, when added to heroin, creates a toxic mixture substantially more potent, and more dangerous, than heroin alone.
The conspiracy charge provides a sentence of no greater than 20 years in prison, a minimum of three years of supervised release and a fine of $1 million. The charge of firearm possession in furtherance of drug trafficking provides an additional five years in prison to the sentence. The charge of unlawful user of a controlled substance in possession of a firearm and ammunition carries a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy Cruz; and Brockton Police Chief John Crowley, made the announcement today. The case was investigated by the Federal Bureau of Investigation, the Massachusetts State Police assigned to the Plymouth Country District Attorney’s Office, MSP CAT Team, MSP Gang Unit, the New England High Intensity Drug Trafficking Area (HIDTA), and the Brockton and Randolph Police Departments. The case is being prosecuted by Assistant U.S. Attorney Glenn A. MacKinlay of Ortiz’s Organized Crime and Gang Unit.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Serial Armed Robber Pleads GuiltyRead the Press Release
Baltimore, Maryland – Michael Toliver, age 40, of Baltimore, pleaded guilty today to robbery.
The plea agreement 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; Commissioner Kevin Davis of the Baltimore Police Department; and Chief Gary Gardner of the Howard County Police Department.
According to his plea agreement and court documents, from May 17 to June 4, 2014, Toliver and others robbed commercial businesses located in Baltimore, Baltimore County and Howard County at gunpoint. In several of the robberies co-defendant Marcus Gray stood at the door and acted as the lookout, while Toliver pointed a gun at employees and demanded money. Toliver admitted to robbing the following stores in Maryland:
Exxon gas station, Forest Rd., Columbia, on May 17;
Burger King, Rolling Mills Road, Dundalk, on May 17;
Bob Evans, Wholesale Club Dr., Nottingham, on May 19;
Safeway Food Stores, Harford Rd., Baltimore, on May 23;
Dunkin Donuts, Reisterstown Rd., Baltimore on May 23;
Sprint, Baltimore National Pike, Baltimore, on May 24;
Royal Farms, Pulaski Highway, Baltimore, on May 31;
BP gas station, Park Heights Ave., Baltimore, on May 31;
Royal Farms, Southwick Dr., Baltimore, on May 31; and
Royal Farms, Edmondson Ave., Baltimore, on June 4.
During the Dunkin Donuts robbery, Toliver struck the manager in the head with a handgun, causing injury. During the Sprint store and BP gas station robberies, Toliver fired his gun into the floor or ceiling, when the managers of each store did not open the store’s safe.
Law enforcement reviewed video recordings of the robberies and identified Toliver as one of the robbers. On June 4, 2014, law enforcement arrested Toliver and executed a search warrant on his car. They seized a handgun and ammunition, along with a BB gun, a SWAT vest and gloves. Gray was arrested the following day. Law enforcement executed additional search warrants and seized from Toliver’s residence another handgun, ammunition, $3,780 in coins or cash, and clothing worn by Toliver during several robberies. Subsequent investigation revealed that the gun seized from Toliver’s vehicle was the gun fired during the BP Gas station robbery.
Toliver and the government have agreed that if the Court accepts the plea agreement, Toliver will be sentenced to 15 years in prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for August 25, 2016 at 11:00 a.m.
Marcus Gray, age 42, of Baltimore, previously pleaded guilty to his participation in several of the robberies and awaits sentencing.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Baltimore City Police Department, Howard County Police Department and Baltimore County, City and Howard County State’s Attorney=s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Debra L. Dwyer, who prosecuted the case.
Sentencings for May 16 - May 19, 2016Read the Press Release
Jose Luis Perez-Arias, 31, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 19, 2016, for illegal re-entry of a previously deported alien into the United States. Perez-Arias was arrested in Rock Springs, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Eric Duff, 38, of Wright, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 19, 2016, for possession of child pornography. Duff was arrested in Cheyenne, Wyoming. He was sentenced to eight months of home confinement, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment, restitution in the amount of $4,000.00 and a Justice for Victims of Trafficking Act assessmernt in the amount of $1,000.00. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force and the Federal Bureau of Investigation.
Emory Christian, 19, of Fort Washakie, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 18, 2016, for assault resulting in serious bodily injury. Christian was arrested in Fort Washakie, Wyoming. He received time served, to be followed by two and a half years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $42,573.01. This case was investigated by the Federal Bureau of Investigation.
Dale Allen Bennett, 39, of Shoshoni, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 18, 2016, on two counts of distribution of methamphetamine, one count of possession with intent to distribute methamphetamine and one count of carrying a firearm during and in relation to a drug trafficking crime. Bennett was arrested in Riverton, Wyoming. He received 130 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a fine of $500.00 and a $400.00 special assessment. This case was investigated by the Riverton Police Department, the Fremont County Sheriff’s Office, and the Wyoming Division of Criminal Investigation.
Joshua Arlint, 33, of Helena, Montana, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 18, 2016, for possession of child pornography. Arlint was arrested in Cheyenne, Wyoming. He received 57 months imprisonment, to be followed by ten years of supervised release, and was ordered to pay a $100.0 special assessment and restitution in the amount of $2,000.00. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force and the Federal Bureau of Investigation.
James Michael Underwood, 41, of Yakima, Washington, was sentenced by Federal District Court Judge Scott W. Skavdahl on May 18, 2016, for being a felon in possession of a firearm. Underwood was arrested in Torrington, Wyoming. He received 26 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Erik Kane Sehnert, 39, of Cody, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on May 16, 2016, for possession with intent to distribute 50 grams or more of methamphetamine and for carrying a firearm during and in relation to a drug trafficking crime. Sehnert received 90 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $200.00 special assessment and restitution in the amount of $1,000.00. This case was investigated by the Wyoming Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Savannah Man Sentenced to Federal Prison for Manufacturing Counterfeit CurrencyRead the Press Release
SAVANNAH, GA: De’von Le’edward Walker, 21, of Savannah, Georgia, was sentenced earlier this week by U.S. District Court Judge William T. Moore, Jr. to 30 months in federal prison for his role in the manufacturing and selling of counterfeit U.S. currency.
According to court documents and evidence presented at hearings, Walker and a partner- in-crime created thousands of dollars of counterfeit Federal Reserve Notes. Walker then sold the counterfeit currency to others in exchange for real money. Investigation by the U.S. Secret Service revealed that many of the counterfeit notes manufactured by Walker had been passed in Georgia, South Carolina, Florida and Rhode Island.
U.S. Secret Service Special Agent Matthew Britsch investigated Walker with assistance from the Chatham County Sheriff’s Office. Assistant United States Attorney Theodore S. Hertzberg prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Sallisaw Woman Pleads Guilty to Theft of Federal Program FundsRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JADE LaRAE OBREGON, age 38, of Sallisaw, Oklahoma, pled guilty to THEFT OF FEDERAL PROGRAM FUNDS, in violation of Title 18, United States Code, Section 1341, punishable by up to 10 years imprisonment, up to $250,000.00 fine or both.
The Indictment alleged that on or about January 1, 2012, and continuing through December 31, 2013, in the Eastern District of Oklahoma, JADE LaRAE OBREGON, defendant herein, being an agent of Sequoyah Memorial Hospital, said organization receiving in the one year period beginning January 1, 2012, benefits in excess of $10,000 from federal health care programs, embezzled, stole, obtained by fraud, and knowingly converted to the use of a person not the rightful owner, property worth at least $5,000 and owned by such organization, that is diabetic test strips.
The charge arose from an investigation by the Federal Bureau of Investigation. The defendant was indicted in March, 2016.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Melody Nelson represented the United States.
Portland Woman Sentenced for Theft of Government BenefitsRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that United States District Judge D. Brock Hornby sentenced Tammy J. Mc Kenney, 50, of Portland, Maine to 2 years of probation and $26,646.60 worth of restitution for Theft of Public Money.
According to court documents, VA dependency and indemnity compensation is a monthly benefit paid to eligible survivors of military service members or veterans who died as a result of a service-related injury. A friend of Mc Kenney was the recipient of VA survivor benefits and those benefits were being paid into an account which Mc Kenney held jointly with her friend. When the friend died in 2012, the benefit payments continued to be paid into the joint account. Mc Kenney regularly accessed the account and spent the benefit money until the VA learned of the friend’s death. In all, McKenney received more than $26,000 worth of benefits to which she was not entitled.
The investigation of the case was conducted by the Department of Veteran’s Affairs Office of Inspector General.
Parsonsfield Woman Sentenced for Misappropriation of Postal FundsRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that United States District Court Judge D. Brock Hornby sentenced Carol L. Carter, 58, of Parsonsfield, Maine to 2 years’ probation and $2,713.08 worth of restitution for Misappropriation of Postal funds.
According to court documents, between April and September of 2014, while working as a postmaster relief in the East Parsonsfield Post Office, Carol L. Carter stole $2,713.08 worth of postal funds by selling money orders, pocketing the cash, and either not reporting the sale of the money orders until she could cover the shortfall with a subsequent sale or not reporting the sale at all.
When interviewed, Carter admitted selling the money orders without reporting their sale and using the money to pay personal expenses.
The case was investigated by the United States Postal Service Office of Inspector General.
Palmer Couple Indicted for Maintaining Drug Residence Where Teenager Overdosed, Related Drug and Gun CrimesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an indictment has been returned charging a Palmer couple with multiple drug and gun felonies, including one count of maintaining a drug house where a teenager overdosed and died earlier this year.
Tod James Rodolph, 40, and Jessica Elizabeth Hopkins, 35, are both named in the five-count indictment. The first count charges the couple with conspiring with each other and others to distribute both heroin and methamphetamine. They are also charged with using their Palmer home to both use and distribute drugs. Finally, the couple is charged with possessing several firearms in furtherance of their drug crimes.
The indictment separately charges Rodolph with possessing both heroin and methamphetamine with the intent to distribute it and with being a convicted felon in possession of four firearms. It is alleged that, over the course of 2015 and early 2016, Rodolph traveled from Alaska to the area of Seattle, Washington, approximately 20 times to purchase large quantities of heroin and methamphetamine. He then traveled back to Alaska where he sold the drugs for profit.
The indictment stems from an investigation launched by the Drug Enforcement Administration (DEA) and the Alaska State Troopers (AST) into the death of A.F., a teenager who attended a party at Rodolph and Hopkins’ residence, consumed drugs, and later died. According to the indictment, Rodolph and Hopkins’ drug trafficking activities created an environment in which their teenage daughter and her friends were able to consume illegal drugs at their Palmer residence. The indictment goes on to allege that, in the early morning hours of January 10, 2016, A.F. consumed drugs at the house and began having a negative reaction. When Rodolph learned of the teenager’s condition, he failed to call 911 and instead instructed another teenager to drive A.F. to the hospital. A.F. later died of what the medical examiner determined to be the acute toxic effects of methamphetamine.
Assistant U.S. Attorney Stephanie C. Courter, who presented the case to the grand jury, indicated that both Rodolph and Hopkins face a mandatory minimum penalty of 5 years up to 40 years in prison for their involvement in a drug conspiracy, plus an additional five years on the gun charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendants.
The charges against Rodolph and Hopkins are the latest in the ongoing efforts of federal and state law enforcement to combat the increasing prevalence of heroin and methamphetamine in our community. The DEA and the AST, as well as the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) all contributed to the investigation leading to the indictment in this case.
Rodolph and Hopkins will be arraigned in federal court in the coming days. An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Oregon Man Pleads Guilty to Threatening Vietnamese Neighbors and Interfering with their Housing RightsRead the Press Release
John Blayne Vangastel, 37, of Klamath Falls, Oregon, pleaded guilty today in the District of Oregon to one count of using threats of force to injure, intimidate and interfere with his neighbors in the enjoyment of their housing rights because they are a family of Vietnamese descent.
According to court documents, on the evening of Dec. 30, 2015, Vangastel, who had been living next door to a family of Vietnamese descent for approximately three months, entered the family’s property without permission. Vangastel admitted that he then forcibly blocked their front commercial gate so that family members could not park their vehicles on their property after returning from work. When one of the family members told Vangastel to let go of the gate and get off of the family’s property, Vangastel told the family member to “push [him] off the property.” He then raised his hand and balled up his fist as though he was going to assault one of the female family members. Vangastel further admitted that he then repeatedly tried to instigate a fight with the rest of the family, threatening to hit them and making comments like, “You are trash;” “You are not even white;” and “You smell like salmon-fish.” He also told the family something to the effect of, “I’ll beat you because you are Asian,” and “You [expletive] Vietnamese – you don’t deserve to live here.”
The incident was the culmination of Vangastel’s repeated intimidation of his neighbors, who had lived at their residence for 20 years without incident. As a result of Vangastel’s conduct, the family became so fearful that they moved out of their home.
“Our country guarantees all people the right to live in their homes without fearing violence or intimidation because of their national origin,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Threatening force against people because of where they or their relatives come from violates our civil rights laws and offends our values of human dignity, decency and respect. As this conviction shows, the Department of Justice will continue to aggressively and effectively prosecute hate crimes.”
“This case exemplifies the powerfully negative impact of bigotry and xenophobia,” said U.S. Attorney Bill J. Williams of the District of Oregon. “It is the moral obligation of every citizen to promote tolerance and diversity in our communities so that no one is subjected to intimidation or assault because of their heritage. The U.S. Attorney’s Office, with our partners at the Civil Rights Division, are dedicated to protecting the civil rights of all Oregonians. We will vigorously investigate and prosecute hate crimes to obtain justice for victims of unlawful discrimination.”
A sentencing hearing has not yet been set.
This case is being investigated by the FBI Portland Division’s Medford Resident Agency in cooperation with the Oregon State Police and the Klamath County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney William E. Fitzgerald of the District of Oregon and Trial Attorney Fara Gold of the Civil Rights Division’s Criminal Section.
Oregon Man Pleads Guilty to Threatening Vietnamese Neighbors and Interfering with Their Housing RightsRead the Press Release
WASHINGTON – John Blayne Vangastel, 37, of Klamath Falls, Oregon, pleaded guilty today in the District Court of Oregon to one count of using threats of force to injure, intimidate and interfere with his neighbors in the enjoyment of their housing rights because they are a family of Vietnamese descent.
According to court documents, on the evening of Dec. 30, 2015, Vangastel, who had been living next door to a family of Vietnamese descent for approximately three months, entered the family’s property without permission. Vangastel admitted that he then forcibly blocked their front commercial gate so that family members could not park their vehicles on their property after returning from work. When one of the family members told Vangastel to let go of the gate and get off of the family’s property, Vangastel told the family member to “push [him] off the property.” He then raised his hand and balled up his fist as though he was going to assault one of the female family members. Vangastel further admitted that he then repeatedly tried to instigate a fight with the rest of the family, threatening to hit them and making comments like, “You are trash;” “You are not even white;” and “You smell like salmon-fish.” He also told the family something to the effect of, “I’ll beat you because you are Asian,” and “You [expletive] Vietnamese – you don’t deserve to live here.”
The incident was the culmination of Vangastel’s repeated intimidation of his neighbors, who had lived at their residence for 20 years without incident. As a result of Vangastel’s conduct, the family became so fearful that they moved out of their home.
“This case exemplifies the powerfully negative impact of bigotry and xenophobia,” said Oregon’s U.S. Attorney, Billy J. Williams. “It is the moral obligation of every citizen to promote tolerance and diversity in our communities so that no one is subjected to intimidation or assault because of their heritage. The U.S. Attorney’s Office, with our partners at the Civil Rights Division, are dedicated to protecting the civil rights of all Oregonians. We will vigorously investigate and prosecute hate crimes to obtain justice for victims of unlawful discrimination.”
“Our country guarantees all people the right to live in their homes without fearing violence or intimidation because of their national origin,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Threatening force against people because of where they or their relatives come from violates our civil rights laws and offends our values of human dignity, decency and respect. As this conviction shows, the Department of Justice will continue to aggressively and effectively prosecute hate crimes.”
A sentencing hearing has not yet been set.
This case is being investigated by the FBI Portland Division’s Medford Resident Agency in cooperation with the Oregon State Police and the Klamath County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney William E. Fitzgerald of the District of Oregon and Trial Attorney Fara Gold of the Civil Rights Division’s Criminal Section.
Operator of Costa Mesa Boiler Room at Center of $11 Million Oil and Gas Investment Scam Sentenced to 10 Years in Federal PrisonRead the Press Release
SANTA ANA, California – A former Orange County resident who oversaw a company that claimed to be developing oil and gas wells and bilked investors by, among other things, falsely claiming they would see 50 percent annual returns has been sentenced to 10 years in federal prison.
Jerry L. Aubrey, 51, who at the time of the fraud lived in Santa Ana, was sentenced Monday for his in role in the scheme that caused investors in the Costa Mesa-based Progressive Energy Partners (PEP) to suffer over $9 million in losses.
United States District Judge James V. Selna imposed the decade-long sentence and ordered Jerry Aubrey to pay $9,408,184 in restitution to nearly 200 victims.
Jerry Aubrey was sentenced after pleading guilty in January to one count of mail fraud. As prosecutors noted in sentencing papers filed with the court, Jerry Aubrey orchestrated the PEP scheme from October 2005 until April 2010 – and after that he served a five-year prison term in Florida for another fraud scheme that he was involved in prior to PEP.
“This defendant orchestrated a classic investment fraud that promised extravagant returns while investors’ money was simply being used to line the pockets of the scammers,” said United States Attorney Eileen M. Decker. “This is a serial offender who was deserving of a lengthy sentence.”
PEP raised more than $11 million in five unregistered securities offerings for the purported purpose of developing and supporting oil and gas wells. According to court documents, most of the money went to pay the personal expenses of PEP principals, huge commissions to salespersons, and Ponzi-like payments to early investors. As part of the scheme, PEP salespersons used purchased “lead lists” to make cold calls to potential investors, who were told about the alleged profits they could earn from investing in PEP. The victims were not told that, in reality, less than 10 percent of their investments would be used to develop oil and gas wells, according to Jerry Aubrey’s plea agreement.
Along with Jerry Aubrey, two other people were named in a federal grand jury indictment returned in September 2013. They are:
-
Jerry Aubrey’s brother, Timothy J. Aubrey, 56, of Moreno Valley, a manager and salesperson at PEP, who is scheduled to go on trial before Judge Selna on mail fraud and wire fraud charges on October 25; and
-
Aaron M. Glasser, 33, a former Mission Viejo resident who now lives in San Jacinto, was a PEP salesman who pleaded guilty in February to one count of mail fraud and is scheduled to be sentenced by Judge Selna on December 19, at which time he will face a statutory maximum sentence of 20 years in federal prison.
In 2012, the Securities and Exchange Commission obtained permanent injunctions against the three defendants in a lawsuit filed in relation to the PEP investment scheme.
The criminal investigation was conducted by the FBI.
-
Ohio Man Admits Being Cocaine Courier for Drug Trafficking OrganizationRead the Press Release
ERIE, Pa. – A former resident of Akron, Ohio, pleaded guilty in federal court to a charge of violating federal drug laws, United States Attorney David J. Hickton announced today.
Safa Gobah, 23, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from June 2013 through February 2015, Gobah engaged in a conspiracy with eighteen co-defendants to distribute and possess with intent to distribute cocaine. The Court was advised that Gobah’s specific role in the conspiracy was to assist in driving vehicles to the Houston, Texas area to pick up loads of cocaine and then to transport the cocaine to Erie, Pennsylvania and elsewhere, with the cocaine concealed in hidden compartments. According to information provided to the Court, on November 1, 2014, Gobah was driving one of the load vehicles with another co-conspirator as a passenger when they were stopped by the Arkansas State Police while traveling east near milepost 253 on Interstate 40. The Court was advised that Gobah and her co-conspirator had just traveled to the Houston, Texas area to pick up a load of cocaine destined for delivery to Erie, Pennsylvania and elsewhere. The Court was further advised that a search warrant was executed on the vehicle and that individually wrapped packages of cocaine were located in a hidden compartment in the vehicle. The packages were discovered to contain more than 5 kilograms of cocaine.
Judge Cercone scheduled sentencing for September 15, 2016 at 11:30 a.m. The law provides for a maximum total sentence of life in prison, a fine of $4,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Homeland Security Investigations, the Drug Enforcement Administration, the Pennsylvania State Police, U.S. Border Patrol, the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section, the U.S. Postal Inspection Service, the U.S. Marshals Service, and the Bureau of Alcohol Tobacco Firearms and Explosives, and the Arkansas State Police conducted the investigation that led to the prosecution of Gobah.
OC Pilot Indicted for Flying Planes Without FAA LicenseRead the Press Release
Update:
Today, a federal grand jury returned an indictment charging Arnold Gerald Leto III with two counts of piloting a plane without a license. Leto was charged for flying a Cessna Citation turbojet aircraft from Santa Monica, California, to Phoenix, Arizona, on or about January 30, 2015, and a Falcon 10 turbojet aircraft from Van Nuys Airport to Las Vegas, Nevada, on or about April 8, 2016.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Each charge alleged in the indictment carries a statutory maximum penalty of three years federal prison.
Original Release:
Orange County Pilot Charged with Flying Private Jet
without Having Proper License Issued by FAA
LOS ANGELES – An Irvine man was arrested this morning on federal charges of illegally flying a twin-engine Falcon 10 turbojet airplane with passengers onboard without having a valid pilot’s license.
Arnold Gerald Leto III, 36, was charged in a criminal complaint filed yesterday in United States District court with operating an aircraft in air transportation without a valid airman’s certificate.
The affidavit in support of the criminal complaint alleges that Leto’s pilot’s license was revoked earlier this year, he operated the Falcon without having the required co-pilot, and he was never certified to fly this type of aircraft.
Leto is scheduled to be arraigned on the felony offense this afternoon in United States District Court.
Leto is charged will illegally flying the Falcon 10 from Van Nuys Airport to Las Vegas, Nevada, on April 8. Leto allegedly operated the aircraft with approximately eight passengers on board.
“Federal regulations governing the operation of aircraft and other common carriers are designed to protect the traveling public,” said United States Attorney Eileen M. Decker. “The investigation into Mr. Leto shows that he flagrantly violated these rules – and continued to do so after the FAA took action to take him out of the air. A swift and thorough investigation by the Department of Transportation has now improved the safety of all air travelers.”
According to the complaint, the aircraft that Leo piloted alone is a complex aircraft that requires two pilots to operate. Furthermore, Leto’s defendant’s pilot certificate – which he failed to surrender after it was revoked by the Federal Aviation Administration in January – did not have a turbojet-type rating that would authorize him to fly that airplane.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The charge alleged in the complaint carries a statutory maximum penalty of three years federal prison.
This case was investigated by the Department of Transportation – Office of Inspector General, with assistance by the Federal Aviation Administration.
Nineteen Defendants Charged with Marriage and Visa Immigration FraudRead the Press Release
Jackson, Miss – United States Attorney Gregory K. Davis and Special Agent in Charge Raymond R. Parmer Jr., of Immigration and Customs Enforcement (ICE) Homeland Security Investigations - New Orleans Field Office, announced today the unsealing of two federal indictments charging multiple defendants with U-Visa fraud and marriage fraud.
In the 16 count U-Visa Fraud indictment, it is alleged that Law Enforcement Certification forms purporting to certify that aliens were victims of certain crimes, were submitted to the U.S. Customs and Immigration Service (USCIS) along with the U-Visa applications. To be eligible for a U-Visa, the alien must have (1) been a victim of a certain crime; (2) suffered mental or physical abuse as a result of the crime; and (3) helped law enforcement officials in the investigation and/or prosecution of the crime. The Law Enforcement Certification forms contain the description of the crimes. In this case, the forms fraudulently listed individuals as victims of certain crimes in an effort to obtain U-Visas.
The Indictment alleges that Simpson Lloyd Goodman, a licensed attorney, submitted fraudulent documents to USCIS for the purpose of obtaining U-Visas for other co-defendants. The false documents submitted to USCIS included falsified police reports allegedly prepared by Officer Ivory Lee Harris of the Jackson Police Department. Other defendants engaged in and caused various acts which enabled defendants to attempt to obtain U-Visas from USCIS.
The following defendants have been charged in the U-Visa fraud indictment for their roles in a conspiracy to commit fraud and misuse of Visa permits:
Sachin Girishkumar Patel, 33, of Clinton, Mississippi;
Tarunkumar Purushottambhai Patel, 49, of Kingdom City, Missouri;
Simpson Lloyd Goodman, 29, of Waynesboro, Georgia;
Ivory Lee Harris, 45, of Jackson, Mississippi;
Sanjay Rathilal Patel, 35, of Lakewood, New Jersey;
Maheshkumar Mangaldas Patel, 50, of Houston, Texas;
Ashaben Mukeshbhai Patel, 38, of Covington, Louisiana;
Rajan Nareshkumar Patel, 31, currently incarcerated in Adams County, Mississippi;
Gopaldas Khodabhai Patel, 55, of Byram, Mississippi;
Sachin Khodidas Patel, 27, of Byram, Mississippi; and
Baldevbhai Ramabhai Patel, 34, of Baton Rouge, Louisiana.
In the 16 count marriage fraud indictment, it is alleged that the aliens would enter into marriages between persons who were already citizens of the United States solely for the purpose
of obtaining immigration status to which the aliens would not otherwise be entitled. These marriages were not entered into because of mutual love and affection between the parties, but solely to create a legal status that would provide a basis for immigration status for the alien partner and usually for some economic benefit to the United States citizen.
The following defendants have been charged in the marriage fraud indictment for their roles in a conspiracy to commit marriage fraud:
Sachin Girishkumar Patel, 33, of Clinton, Mississippi;
Tarunkumar Purushottambhai Patel, 49, of Kingdom City, Missouri;
Simpson Lloyd Goodman, 29, of Waynesboro, Georgia;
Chirag Nilesh Patel, 27, of St. Louis, Missouri;
Dana Cheetara Adams, 29, of Plano, Texas;
Brandy Nicole Edwards, 34, of Crystal Springs, Mississippi
Terilynn Rankin, 48, of Mendenhall, Mississippi
Sejal Sanjay Kakadia, 52, of Covington, Louisiana
Jayantibhai Kalidas Chaudhari, 47, of Covington, Louisiana
Virendra Rambachan Rajput, 45, of Lawrence, Massachusetts; and
Javona Shanice Rajput, 27, of Jackson, Mississippi
"The defendants allegedly circumvented the laws and submitted fraudulent documents that are critical to obtaining immigration status," said U.S. Attorney Gregory K. Davis. "These arrests were made as a result of the great work of our law enforcement partners who stopped 19 people who sought to undermine the integrity of our nation’s immigration system."
"Immigration fraud poses a significant threat to national security by allowing individuals to enter or remain in the United States under false pretenses with unknown intentions," said Raymond R. Parmer Jr., Special Agent in Charge of HSI New Orleans. "The alleged involvement of attorneys and law enforcement officers in this particular scheme is particularly troubling, and shows that HSI will investigate and hold accountable those who violate our nation’s laws regardless of their position in society." Parmer oversees a five-state area of operations to include Mississippi, Alabama, Arkansas, Louisiana and Tennessee.
The maximum penalties for the crimes charged in the indictments are: conspiracy to commit fraud and misuse of visa permits - 5 years in prison and $250,000 fine per count; fraud and misuse of Visa permits - 10 years in prison and a $250,000 fine per count; mail fraud - 20 years in prison and a $250,000 fine per count; and wire fraud – 20 years in prison and a $250,000 fine.
Arraignments on these indictments are scheduled for today, May 19, 2016, at 1:30 p.m. before U.S. Magistrate Judge Linda R. Anderson in Jackson.
This case was investigated by Homeland Security Investigations, the Mississippi Attorney General’s Office, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Jerry Rushing.
The public is reminded that an indictment is a formal charge that a defendant has committed a violation of the federal criminal laws. All defendants are presumed innocent unless and until proven guilty.
New Orleans Man and his Restaurant Sentenced for Employing Unauthorized Aliens and Making False StatementsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KE LIAN ZHAO, age 50, of Kenner, was sentenced today after previously pleading guilty to employing aliens at his restaurant, LA JUMBO CHINA BUFFET (“JUMBO BUFFET”). The restaurant, JUMBO BUFFET, was also sentenced for making false statements.
U.S. District Judge Jane Triche Milazzo sentenced ZHAO to one year of probation and a $100 special assessment. ZHAO was also ordered to pay $52,305.75 in restitution to the victims, which has been paid. JUMBO BUFFET was sentenced to one year of probation and a $400 special assessment.
According to court documents, ZHAO and JUMBO BUFFET had been employing aliens at the restaurant for almost four years. A federal investigation revealed that between August 2011 and March 2015, ZHAO recruited, hired, and continued to employ personnel he knew were unlawfully present in the United States. During this time frame, JUMBO BUFFET knowingly and willfully provided materially false, fictitious, or fraudulent statements or representations to agents of the United States Department of Homeland Security and the United States Department of Labor’s Wage and Hour Division. Furthermore, when investigators requested payroll information from JUMBO BUFFET, the company altered payroll documents to make it look as if it had complied with minimum wage and overtime pay requirements, when witness statements, surveillance, and other evidence showed that employees worked in excess of a 40 hour work week, without being paid overtime, or minimum wage.
U.S. Attorney Polite praised the work of the U.S. Department of Labor, Wage and Hour Division, the U.S. Department of Labor, Office of Inspector General, the U.S. Department of Homeland Security, and the Federal Bureau of Investigation, in investigating this matter. Assistant U.S. Attorney Sharan Lieberman was in charge of the prosecution.
Monroe man pleads guilty to methamphetamine possession chargeRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced today that a man from Monroe pleaded guilty to possessing methamphetamine for later sale.
Travis C. Mills, 34, of Monroe, pleaded guilty before U.S. Magistrate Judge Karen L. Hayes to one count of possession of methamphetamine with intent to distribute. The plea will become final when accepted by U.S. District Judge Robert G. James. According to the guilty plea, law enforcement agents arrested Mills on October 7, 2015, as he was leaving his home. They found 115 grams of methamphetamine in a brown paper bag in the front seat of his car. His home was also searched, and 84 grams of methamphetamine were found.
Mills faces five to 40 years in prison, at least four years of supervised release and a $5 million fine. A sentencing date of September 7, 2016 was set.
The DEA and Ouachita Parish Metro Narcotics Task Force conducted the investigation. Assistant U.S. Attorneys Jonathan S. Drucker and James G. Cowles Jr. are prosecuting the case.
Michigan Man Charged with Possessing CocaineRead the Press Release
PITTSBURGH - A Michigan resident has been indicted by a federal grand jury in Pittsburgh on a charge of violating the federal drug laws, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on May 17, named Carl McDaniel, age 52, of Helen, Michigan.
According to the indictment, on or about March 22, 2016, McDaniel possessed with intent to distribute a quantity of cocaine.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Ryan K. Hart is prosecuting this case on behalf of the government.
The Homeland Security Investigations (HSI) Immigration and Customs Enforcement (ICE) and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Mexican citizen sentenced to 30 months in prison for transporting cocaineRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that a Mexican citizen was sentenced to 30 months in prison for taking part in a conspiracy to transport and sell cocaine.
Omar Sanchez Ortuno, 23, of Puebla, Mexico, was sentenced by U.S. District Judge Patricia Minaldi on one count of conspiracy to distribute and possess with intent to distribute cocaine. He was also sentenced to four years of supervised release. According to the February 12, 2016 guilty plea, law enforcement agents monitored a deal and delivery involving Ortuno on April 29, 2014. Omar delivered 1.5 kilograms of cocaine from Houston to cocaine distributors in Lake Charles. The vehicles involved in the deal were stopped and the individuals involved were arrested, and authorities seized the vehicle, cocaine and $33,000 in cash. The agents had been investigating Ortuno and his co-conspirators prior to his arrest. The investigation revealed multiple deliveries of cocaine from Ortuno to his Louisiana contacts, who then redistributed the cocaine in smaller amounts in the Lake Charles community. Ortuno was identified by law enforcement as a delivery person or runner, and as a minor participant.
Homeland Security Investigations, Immigrations and Customs Enforcement, Louisiana State Police, and the Calcasieu Parish Anti-Drug Task Force conducted the investigation. Assistant U.S. Attorney Myers P. Namie prosecuted the case.
May Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 8 indictments charging 9 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Alvaro Hugo Carreto Diaz, age 31, of Omaha, is charged with illegal reentry into the United States on or about April 19, 2016, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Stephanie Lynn Cogle, age 29, of Gainsville, Georgia, is charged with possession with intent to distribute 500 grams of a mixture of methamphetamine on or about March 22, 2015. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Thomas J. Fischer, age 29, of Omaha, is charged in a three-count Indictment. Counts I and II of the Indictment charges the defendant with distribution of 50 grams of methamphetamine on or about November 24, 2015 and on or about December 7, 2015. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment for each count. Count III of the Indictment charges Fischer with distribution of a mixture of methamphetamine on or about January 7, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jaime Guerrero-Robledo, age 33, is charged with illegal reentry into the United States on or about May 2, 2016, following deportation after a felony conviction. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Marcos Gutierrez-Morales, age 42, is charged with illegal reentry into the United States on or about May 12, 2016, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Brandon Jackson, of Omaha, is charged with felon in possession of a firearm on or about January 22, 2016. The maximum possible penalty if convicted is $10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Scott Kornahrens, age 43, is charged with possession with intent to distribute a mixture of methamphetamine on or about March 14, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jose Luis Sandoval, a/k/a Gallo, age 46, and Martha Tapia, age 37, both of South Sioux City, Nebraska, are charged in a six-count Indictment. Count I of the Indictment charges the defendants with conspiracy to distribute and possess with intent to distribute 50 grams or more of a mixture containing methamphetamine beginning on or about April 1, 2016, and continuing to on or about May 9, 2016. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Sandoval and Tapia with distribution of a mixture containing methamphetamine on or about April 7, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III of the Indictment charges Tapia with distribution of a mixture containing methamphetamine on or about April 12, 2016. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count IV of the Indictment charges the defendants with possession with intent to distribute a mixture containing methamphetamine on or about May 9, 2016. The maximum possible penalty if convicted is 20 years imprisonment, $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count V of the Indictment charges Sandoval with carrying a firearm during and in relation to a drug trafficking crime on or about May 9, 2016. The maximum possible penalty if convicted is no less than 5 years to no more than life to underlying count, a $250,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count VI of the Indictment charges Tapia with carrying a firearm during and in relation to a drug trafficking crime on or about May 9, 2016. The maximum possible penalty if convicted is no less than 5 years to no more than life to underlying count, a $250,000 fine, a 5 year term of supervised release, and a $100 special assessment.
Massachusetts Man Pleads Guilty in Texas-to-Pennsylvania Drug ConspiracyRead the Press Release
ERIE, Pa. – A former resident of Lawrence, Massachusetts, pleaded guilty in federal court to a charge of violating federal drug laws, United States Attorney David J. Hickton announced today.
Wilson Enrique-Reyes, 33, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that from July 2014 through January 2015, Enrique-Reyes engaged in a conspiracy with two other individuals to distribute and possess with intent to distribute between 5 and 15 kilograms of cocaine. According to information provided to the Court, Enrique-Reyes worked with his associates to have kilograms of cocaine transported from Houston, Texas to Erie, Pennsylvania and elsewhere. Further, the Court was advised that prior to his arrest in February 2015, law enforcement officers discovered that Enrique-Reyes and his associate in Erie, Pennsylvania, were working to modify an Audi vehicle with a hidden compartment large enough to conceal 10 kilograms of cocaine. When Enrique-Reyes was arrested in Lawrence, Massachusetts in February, 2015, the Audi vehicle, equipped with the electronically controlled hidden compartment, was found and was seized.
Judge Cercone scheduled sentencing for September 15, 2016 at 1:00 p.m. The law provides for a maximum total sentence of life in prison, a fine of $4,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Homeland Security Investigations, the Drug Enforcement Administration, the Pennsylvania State Police, U.S. Border Patrol, the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section, the U.S. Postal Inspection Service, the U.S. Marshals Service, and the Bureau of Alcohol Tobacco Firearms and Explosives, conducted the investigation that led to the prosecution of Enrique-Reyes.
Marion, N.C. Man Sentenced to Prison for Passport FraudRead the Press Release
ASHEVILLE, N.C. – James Timothy Wilson, 66, of Marion, N.C. was sentenced today to 45 months in prison on passport fraud and aggravated identity theft charges, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Wilson was also ordered to serve two years under court supervision after he is released from prison.
Thomas Haycraft, Special Agent in Charge of the Washington Field Office, U.S. Department of State, Diplomatic Security Service and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI) join U.S. Attorney Rose in making today’s announcement.
According to filed plea documents and today’s sentencing hearing, in June 2009, Wilson stole the identities of two individuals who were employed by Henderson-based Quality Rubber Manufacturing Company Inc. (QRMC), a company previously owned by Wilson. Using the stolen information, Wilson obtained North Carolina Driver’s Licenses and birth certificates in each of the victim’s name, which he then used as proof of identity to apply for and fraudulently obtain U.S. passports. According to court records, Wilson used the fraudulent passports to fly internationally, including to Colombia and Mexico.
According to court records, Wilson accessed and used without permission a third individual’s passport to fly internationally. The victim, who also worked at QRMC, discovered his passport was missing after he had left it on his desk at work. Later, the victim discovered his passport had been returned, and noticed the pages were stamped, indicating international travel. Wilson had used that victim’s passport to fly to Colombia and to Costa Rica.
In announcing today’s sentence, U.S. District Judge Martin Reidinger said that Wilson engaged “in a pattern of dishonesty,” and ordered Wilson to pay $3,000 fine in addition to the prison term imposed.
Wilson pleaded guilty in February 2016 to three counts of making a false statement on an application and two counts of aggravated identity theft.
The investigation was handled by the U.S. Department of State’s Diplomatic Security Service and IRS-CI.
Assistant U.S. Attorney Don Gast, of the U.S. Attorney’s Office in Asheville, is prosecuting the case.
Mansfield woman indicted for stealing $339,000 from her employerRead the Press Release
A grand jury returned an indictment charging Yatkia Wallace, 42, of Mansfield, with one count of embezzlement in connection with health care, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office.
The indictment alleges that Wallace embezzled $339,198 from her former employer, D & I Associates and converted it for her own personal use.
If convicted, the defendant’s sentence will be determined by the dourt after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Carmen E. Henderson following an investigation by the Federal Bureau of Investigation.
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.
Man Who Set Fire to Somali Restaurant in Grand Forks, North Dakota, Pleads Guilty to Hate CrimeRead the Press Release
FARGO – On May 19, 2016, Matthew Gust, 25, pleaded guilty today to a federal hate crime for setting fire to a Somali restaurant in Grand Forks, North Dakota, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Christopher C. Myers of the District of North Dakota.
According to his plea agreement, Gust admitted that he set the Dec. 8, 2015, fire in order to intimidate and interfere with the Somali employees and patrons of the Juba Café. Early that morning, he drove to a gas station and purchased a small amount of gasoline, which he used to fill a 40 oz. beer bottle, turning it into a Molotov cocktail. Gust then drove to the café, donned a face mask, punched a hole through the front window of the café, lit the Molotov cocktail, threw it through the window and fled. The Molotov cocktail exploded on impact, creating an explosion and fire that engulfed Juba Café and caused at least $90,000 worth of damages.
Gust pleaded guilty to an arson charge as well as to the hate-crime charge. He was by charged by information with those two counts on March 20, 2016. He had earlier been indicted
by a grand jury for using a destructive device in the commission of a crime; that charge will be dismissed as part of his plea agreement.
"We will not tolerate violence that attempts to divide us by targeting individuals based on their national origin," said Principal Deputy Assistant Attorney General Gupta. "The Civil Rights Division will continue to bring to justice those who attempt to intimidate and drive out members of our community."
"This case exemplifies the strong partnership between local, state, and federal authorities working together to ensure the rights of all members of our community are protected from criminal conduct motivated by hate," said U.S. Attorney Myers. "In such circumstances, the response from all levels of law enforcement in North Dakota will be swift and certain."
"Investigating these types of attacks will always remain a priority for the FBI," said Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Division. "Attacks such as these have no place in our society and those who would commit them should know that they will be aggressively pursued by the FBI."
"There is no place for hate in our communities, and these targeted acts of violence won’t be tolerated," said Special Agent in Charge Jim Modzelewski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) St. Paul, Minnesota, Field Division. "ATF will continue to diligently investigate these crimes, to ensure that all of our residents feel safe and welcomed."
Gust is scheduled to be sentenced on Aug. 29, 2016. The hate-crime charge carries a maximum sentence of 20 years in prison, while the arson charge carries a maximum sentence of 10 years in prison.
This case was investigated by Grand Forks Police Department, the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Megan A. Healy of the District of North Dakota and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.
Man Who Set Fire to Somali Restaurant in Grand Forks, North Dakota, Pleads Guilty to Hate CrimeRead the Press Release
Matthew Gust, 25, pleaded guilty today to a federal hate crime for setting fire to a Somali restaurant in Grand Forks, North Dakota, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Christopher C. Myers of the District of North Dakota.
According to his plea agreement, Gust admitted that he set the Dec. 8, 2015, fire in order to intimidate and interfere with the Somali employees and patrons of the Juba Café. Early that morning, he drove to a gas station and purchased a small amount of gasoline, which he used to fill a 40 oz. beer bottle, turning it into a Molotov cocktail. Gust then drove to the café, donned a face mask, punched a hole through the front window of the café, lit the Molotov cocktail, threw it through the window and fled. The Molotov cocktail exploded on impact, creating an explosion and fire that engulfed Juba Café and caused at least $90,000 worth of damages.
Gust pleaded guilty to an arson charge as well as to the hate-crime charge. He was by charged by information with those two counts on March 20, 2016. He had earlier been indicted by a grand jury for using a destructive device in the commission of a crime; that charge will be dismissed as part of his plea agreement.
“We will not tolerate violence that attempts to divide us by targeting individuals based on their national origin,” said Principal Deputy Assistant Attorney General Gupta. “The Civil Rights Division will continue to bring to justice those who attempt to intimidate and drive out members of our community.”
“This case exemplifies the strong partnership between local, state, and federal authorities working together to ensure the rights of all members of our community are protected from criminal conduct motivated by hate,” said U.S. Attorney Myers. “In such circumstances, the response from all levels of law enforcement in North Dakota will be swift and certain.”
“Investigating these types of attacks will always remain a priority for the FBI,” said Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Division. “Attacks such as these have no place in our society and those who would commit them should know that they will be aggressively pursued by the FBI.”
“There is no place for hate in our communities, and these targeted acts of violence won’t be tolerated,” said Special Agent in Charge Jim Modzelewski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) St. Paul, Minnesota, Field Division. “ATF will continue to diligently investigate these crimes, to ensure that all of our residents feel safe and welcomed.”
Gust is scheduled to be sentenced on Aug. 29, 2016. The hate-crime charge carries a maximum sentence of 20 years in prison, while the arson charge carries a maximum sentence of 10 years in prison.
This case was investigated by Grand Forks Police Department, the FBI and ATF. The case is being prosecuted by Assistant U.S. Attorney Megan A. Healy of the District of North Dakota and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.
Gust Plea Agreement
Man Who Attempted to Flush Heroin Down Cedar Rapids Police Department Toilet Pleads GuiltyRead the Press Release
A man who tried to discard his heroin in a toilet at the Cedar Rapids Police Department pled guilty today in federal court in Cedar Rapids.
Julius Montgomery, Jr., age 48, from Chicago, IL, was convicted of possession with intent to distribute heroin.
In a plea agreement, Montgomery admitted that the DEA conducted a controlled buy of heroin from a Toyota Echo in which Montgomery was a passenger on November 10, 2015. The Echo was subsequently stopped and searched for drugs. An officer at the scene noticed Montgomery was standing with his buttocks clenched tightly, but defendant denied he was concealing anything. Montgomery was transported to the CRPD for questioning, and later asked to use a bathroom. Investigators offered a bathroom for defendant to use, but the bathroom offered to defendant was equipped with a toilet designed for prisoners. The toilet cannot be flushed by the prisoner inside the room, and can only be flushed from an exterior location. Prior to Montgomery using the bathroom, investigators searched the toilet and noted it was empty. After Montgomery finished in the bathroom, investigators entered and found a bag in the toilet water. The bag contained 23 individual packages of heroin, totaling 2.1 grams. Montgomery also admitted in the plea agreement to selling heroin to confidential informants twice in 2014.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Montgomery remains in custody of the United States Marshal pending sentencing. Montgomery faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and a lifetime of supervised release following any imprisonment.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Cedar Rapids Police Department and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Cedar Rapids Police Department; the Linn County Sheriff's Office; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement, and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-12-LRR.
Follow us on Twitter @USAO_NDIA.
Lexington Man Convicted of Distributing Drugs Resulting in DeathRead the Press Release
LEXINGTON — A Lexington man faces a minimum of 20 years in prison after he was convicted by a federal jury of distributing heroin and fentanyl which resulted in the death of an individual.
On Tuesday evening, the jury convicted 43 year-old Christopher Allen for distribution of heroin and fentanyl resulting in death, conspiracy to distribute heroin and fentanyl, and possession with intent to distribute heroin and fentanyl. The jury returned the verdict after approximately two hours of deliberation following two days of trial.
“Trafficking in deadly drugs such as heroin and fentanyl has increased dramatically in Lexington and surrounding communities over the last few years,” said Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky. “The results have been deadly. Fayette County documented 29 overdose deaths in 2008. By 2015, that number had risen to 137. The victims grow younger every year and these tragedies reach every area of our community. This is a crisis that requires us to use every available tool to fight back. One such tool is the federal law that imposes a prison sentence of 20 years to life, with no parole, on those who illegally distribute drugs that cause death or serious injury. Those involved in drug trafficking should know that we are using this tool with increasing frequency, working closely with our law enforcement partners.”
According to testimony, in September of 2015, Allen distributed heroin and fentanyl to a Lexington woman who used the drugs, overdosed and died. The woman was found by her boyfriend in her home.
Authorities were able to verify that Allen supplied the drugs to the victim. A toxicologist testified that the woman died as a result of the toxic effects of the heroin and fentanyl. The toxicologist further testified that the victim ingested a lethal dose of fentanyl, three times the normal therapeutic range.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Timothy J. Plancon, Special Agent in Charge of the Detroit Division of the Drug Enforcement Administration; and Mark Barnard, Chief of Lexington Police, jointly made the announcement today.
The investigation was conducted by the Lexington Police and DEA. Assistant U.S. Attorneys Todd Bradbury and Cindy Rieker, prosecuted this case on behalf of the federal government.
Allen is scheduled to be sentenced on August 22. He faces a minimum of 20 years in prison and a maximum of life. However, the Court will impose sentence after considering the U.S. Sentencing Guidelines and the federal statutes.
Lehigh County Woman Charged with Theft of Government FundsRead the Press Release
PHILADELPHIA - Dorothea Terfinko, 56, of Laury’s Station, Pennsylvania, was charged by Information, filed yesterday, with one count of theft of government funds, announced United States Attorney Zane David Memeger. According to the Information, the defendant improperly received Social Security disability payments after she concealed her marriage in her application for benefits. The defendant’s alleged actions resulted in a loss to the government of approximately $48,435.13.
If convicted, the defendant faces a term of imprisonment, a three‑year period of supervised release, restitution to the government of $48,435.13, a possible fine, and a $100 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Leaders of California-Based Cocaine Trafficking Organization Sentenced to 15 Years in PrisonRead the Press Release
BOSTON – Two California men were sentenced on Tuesday, May 17, 2016 in U.S. District Court in Boston for trafficking cocaine from Mexico into the United States.
Armando Meras Chavez, 37, of Visalia, Calif., and Arturo Rodriguez Ornelaz, 39, of Sanger, Calif. were sentenced by U.S. District Court Judge Nathaniel M. Gorton to 15 years in prison and five years of supervised release. In November 2015, Chavez and Ornelaz pleaded guilty to conspiracy to possess with intent to distribute and to distribution of five kilograms or more of cocaine and conspiracy to commit money laundering.
The charges resulted from a lengthy investigation that began in 2010 into the drug trafficking activities of the Chavez family, many of whom are Mexican nationals based in Washington and California. Chavez and Ornelaz were the leaders within the organization, which imported kilograms of cocaine into the United States from Mexico, transported the cocaine across the country using tractor trailers, and sold it to a local cocaine distributor based in Dorchester. During the course of the investigation, law enforcement seized approximately 50 kilograms of drugs and over $1 million in drug proceeds.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement. The case was prosecuted by Assistant U.S. Attorneys Nathaniel R. Mendell and Katherine Ferguson of Ortiz’s Narcotics and Money Laundering Unit.
Leader of Multi-Million Dollar Bank ‘Bustout’ Scheme that used Counterfeit Checks Sentenced to over 5 Years in Federal PrisonRead the Press Release
LOS ANGELES – A West Los Angeles man who masterminded a bank account ‘bustout’ scheme that defrauded financial institutions such as Bank of America and Chase Bank and cumulatively caused more than $15 million in losses has been sentenced to serve 63 months in federal prison.
Jae Ho Chung, 46, who resides in Westwood, received the prison sentence on May 12 from United States District Judge John A. Kronstadt, who also ordered the defendant to pay nearly $2.1 million in restitution to a variety of banks.
The overall scheme involved approximately $15 million in losses, but Chung was directly involved in criminal conduct that netted him approximately $2 million – money that prosecutors said Chung used to support his lifestyle, which included a home in Bel Air and gambling at casinos.
Chung pleaded guilty in October 2015 to two counts of bank fraud, admitting that he “conspired over a period of more than five years with 14 others to defraud banks by depositing fraudulent checks to inflate account balances so that, in the brief period that credited and reflected those deposits, defendant and others could withdraw provisionally-granted funds for their benefit,” according to a sentencing memorandum recently filed in federal court. “This scheme was defendant’s brain child.”
According to documents filed in the case, beginning in July 2008 and continuing until October 2013, Chung conspired with Michael Yeon Cho and 13 other co-defendants to defraud banks through the bustout scheme that used counterfeit checks to inflate account balances so that withdrawals could promptly be made before the banks learned that the deposited checks were worthless. Chung created and directed others to create counterfeit checks, directed others to arrange the establishment of “shell” corporations make it appear that bank accounts were legitimate; and withdrew funds from bustout accounts and transferred the fraudulent proceeds to himself and others.
“While members of the public may be familiar with high-tech scam such as so-called phishing schemes, they may not have heard of bustout schemes that have plagued financial institutions for years,” said United States Attorney Eileen M. Decker. “This type of fraud is very common and the threat is growing. Whether it is one person with a stolen credit or a sophisticated operation with numerous participants, the losses from one bustout scheme can be huge. We are continuing to work with the financial industry to address the problem and to prosecute those responsible for exploiting the goodwill banks extend to their customers.”
“This case shows that the appearance of success can be a mask for a tangled financial web of lies,” stated acting Special Agent in Charge Anthony J. Orlando for IRS Criminal Investigation’s Los Angeles Field Office. “Bustout schemes can thrive for a while until the source of funds is scrutinized and the perpetrators are identified. Now that time is gone, and as this sentence shows, it’s time for Mr. Chung to be held accountable.”
Cho, who was Chung’s primary co-conspirator, a 32-year-old Pacific Palisades resident, previously pleaded guilty and is scheduled to be sentenced by Judge Kronstadt on December 1.
Out of the remaining 13 defendants, the charges against 12 of them have been resolved either through pre-trial diversion or through guilty pleas. Several of those defendants have been sentenced to prison terms as long as 33 months. One remaining defendant is scheduled to go on trial in September.
The case against Chung, Cho and the 13 other defendants is the result of Operation “Check Kkang,” a multi-agency investigation into the bustout scheme that victimized financial institutions such as Bank of America, JPMorgan Chase, U.S. Bank and Wells Fargo Bank. Check Kkang refers to a Korean term that describes check kiting.
The investigation was jointly conducted by special agents with the Federal Bureau of Investigation and IRS Criminal Investigation.
Last of Six Defendants Pleads Guilty to Charges Related to Las Vegas Oxycodone RingRead the Press Release
COLUMBUS, Ohio – Rashod D. Todd, 28, of Columbus, pleaded guilty in U.S. District Court to conspiracy to one count each of conspiracy to possess with intent to distribute Oxycodone and conspiracy to commit money laundering.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Timothy Plancon, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, Christopher White, Assistant Inspector in Charge, U.S. Postal Inspection Service (USPIS) and Ohio Attorney General Mike DeWine announced the plea entered into today before U.S. District Judge Michael H. Watson.
According to court documents, between 2012 and November 2015, Rashod Todd, Dajaun Brooks, Jordon Herring and Stephvon Covington conspired to possess and distribute Oxycodone from Las Vegas to Columbus, as well as conspiring to commit money laundering by concealing the source of the proceeds from the narcotics trafficking.
Todd obtained bulk amounts of Oxycodone from middle men. The Oxycodone was then transported and sold in Columbus for profit on the street to drug users. Todd frequently directed other members of the conspiracy to conceal the Oxycodone and cash inside containers before they were shipped through the U.S. mail. Additionally, on numerous occasions, Todd personally carried Oxycodone on commercial airline flights between Las Vegas and Columbus where the Oxycodone was distributed on the streets of Columbus through a network of individuals at Todd’s direction.
Todd attempted to conceal his illicit proceeds by depositing money into the bank accounts of other individuals. These cash deposits funded the purchase of airline tickets that enabled couriers to transport Oxycodone to Columbus and to transport bulk amounts of cash back to Todd in Las Vegas.
Todd pleaded guilty to one count each of conspiracy to possess with intent to distribute Oxycodone and conspiracy to commit money laundering. Each crime is punishable by up to 20 years in prison.
On March 16, 2016 Danny R. Williams, 29, and Sukita M. Williams, 43, both of Las Vegas, pleaded guilty in U.S. District Court to one count each of conspiracy to possess with intent to distribute Oxycodone and conspiracy to commit money laundering. A sentencing date has not been set.
According to court documents, since November 2012, the pair went to physicians to obtain fraudulent prescriptions and either arranged for others to do the same or used middlemen to obtain Oxycodone. Once they obtained bulk amounts of the drug, the pills were transported to Columbus via the mail or on commercial airlines to be sold on the street to drug users. In addition, the couple attempted to conceal their illicit proceeds by depositing money into bank accounts of other individuals.
On May 4, 2016 Joquline D. Harris, 28, of Columbus, pleaded guilty in U.S. District Court to one count of conspiracy to commit money laundering. A sentencing date has not been set.
Harris conducted financial transactions to funnel the proceeds of the illegal distribution of Oxycodone through two separate Ohio bank accounts opened by Sukita Williams, to bank accounts owned by Sukita Williams in Las Vegas. Harris further utilized the monies contained in these bank accounts and other illicit drug proceeds from Sukita Williams to purchase airline tickets for members of the drug trafficking organization to facilitate the transporting of Oxycodone and drug proceeds between Las Vegas and Columbus. In addition, Harris also utilized these illegal proceeds to make vehicle payments to a financial institution in Ohio for a vehicle that Sukita Williams operated in furtherance of drug and money laundering conspiracy.
On April 19, 2016, Dontonyo Courtney, 21, of Columbus, pleaded guilty in U.S. District Court to one count of conspiracy to possess with intent to distribute Oxycodone. A sentencing date has not been set.
Also, today, Alfred David James, Sr., 35, of Columbus, pleaded guilty in U.S. District Court to one count of conspiracy to possess with intent to distribute Oxycodone. A sentencing date has not been set.
“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Acting U.S. Attorney Glassman commended the cooperative investigation by the DEA, IRS, USPIS and Ohio Bureau of Criminal Investigation (BCI), as well as OCDETF Chief Michael J. Hunter, who is representing the United States in this case.
Lake Charles woman pleads guilty to stealing more than $230,000 from employerRead the Press Release
LAKE CHARLES – United States Attorney Stephanie A. Finley announced today that a Lake Charles woman pleaded guilty to stealing more than $230,000 from her employer’s bank account.
Melissa D. Crookshank, 33, of Lake Charles, pleaded guilty before U.S. District Judge Patricia Minaldi to one count of wire fraud. According to the guilty plea, Crookshank, who worked as a bookkeeper for a Hackberry, La., company, stole $235,155.79 from her employer starting in 2009 and continuing until January of 2015. Crookshank issued checks to herself during that time without authorization from the company owners, which she deposited into her own bank accounts for personal use.
Crookshank faces 20 years in prison, three years of supervised release, a $250,000 fine and restitution. A sentencing date of August 25, 2016 was set.
The U.S. Secret Service and the Calcasieu Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Howard C. Parker is prosecuting the case.
Kittanning Man Indicted on Health Care Fraud ChargesRead the Press Release
PITTSBURGH - A resident of Armstrong County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of health care fraud, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on May 17, named Samirkumar J. Shah, 53 of Kittanning, PA, as a defendant.
According to the information presented to the court, Shah knowingly and willfully executed and attempted to execute a scheme to defraud health care benefit programs, such as, Medicare, Medicaid, Highmark, UPMC and Gateway, in connection with the delivery of and payment for health care benefits, items and services.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nelson P. Cohen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania Office of the Attorney General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Kenner Tax Preparer Pleads Guilty to Lying on Tax Returns and Failing to Declare More than $300,000 in IncomeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHRISTIE ROBINSON, 39, of LaPlace, pled guilty yesterday to four counts of false statements on tax returns, in violation of 26 U.S.C. § 7206(1).
According to court records, ROBINSON is the owner and operator of a tax return preparation business in Kenner, Louisiana, called CRR Services, LLC. ROBINSON received fees charged for the preparation of individuals’ tax returns. ROBINSON failed to include all of the substantial fees she received for income tax return preparation on her own returns. In 2007, she declared $80,000 in fees and failed to disclose $195,000. In 2009, she disclosed $100,000 but failed to include an extra $28,000. In 2010, she declared $76,000 but failed to declare $82,000. Finally, in 2011 she declared $175,000 but excluded $8,000. The total undeclared income for the four years 2007, 2009, 2010, 2011 is approximately $315,000. The total taxes due and owing are approximately $104,000.
ROBINSON faces a possible maximum sentence of three years imprisonment on each count, and/or a fine of $100,000 and up to three years of supervised release. as well as having to reimburse the United States for the cost of the investigation. U.S. District Judge Ivan L.R. Lemelle set sentencing for August 17, 2016.
U.S. Attorney praised the work of the Internal Revenue Service, Criminal Investigation Division, in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit is in charge of the prosecution.
KC Man Sentenced to 15 Years for Drug Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute crack cocaine and for illegally possessing several firearms.
Marcus McIntosh, 60, of Kansas City, was sentenced by U.S. District Judge Stephen R. Bough to 15 years in federal prison without parole.
On Dec. 2, 2015, McIntosh was convicted at trial of his role in leading a conspiracy to distribute crack cocaine between April 1 and Aug. 8, 2014. McIntosh was also found guilty of distributing crack cocaine and being a felon in possession of several firearms.
McIntosh sold crack cocaine to undercover detectives and confidential informants on several occasions between May and August 2014. On Aug. 8, 2014, law enforcement officers executed a search warrant at a residence that McIntosh was using as a “trap house,” a place to store and sell crack cocaine. McIntosh was placed under arrest; an adult woman and a child were also inside the residence.
During their search of the residence, investigators found a safe under the bed in a bedroom that contained approximately 49.6 grams of crack cocaine, approximately 29.2 grams of powder cocaine and $1,820. In another bedroom, investigators found a loaded Ruger .22-caliber handgun on top of an entertainment center, a Remington 12-gauge shotgun located next to the entertainment center and a loaded PW Arms 9mm handgun between the mattresses on the bed.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. McIntosh has prior felony convictions for possessing crack cocaine with the intent to distribute, distributing cocaine, possessing cocaine with intent to distribute, carrying a concealed weapon and robbery.
Two co-defendants, who are brothers, have pleaded guilty to participating in the conspiracy by distributing crack cocaine that was supplied to them by McIntosh. Tyrone Campbell, Jr., 30, of Raytown, was sentenced to eight years in federal prison. Tyronn Campbell, 25, of Kansas City, Mo., was sentenced to three years and 10 months in federal prison without parole.
This case was prosecuted by Assistant U.S. Attorneys Brent Venneman and Adam Caine. It was investigated by the Kansas City, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Justice Department Reaches Agreement with Philadelphia-Area YMCA to Ensure Equal Opportunities for Children with DiabetesRead the Press Release
The Justice Department reached a settlement agreement today with the Philadelphia Freedom Valley YMCA – Rocky Run Branch to resolve allegations that it violated the Americans with Disabilities Act (ADA) by denying a child the opportunity to participate in after-school and summer camp programs because of her type 1 diabetes.
Title III of the ADA prohibits discrimination on the basis of disability by public accommodations, including private camps and childcare programs. Under the ADA, such entities must make reasonable modifications to their policies, practices or procedures when necessary to provide equal access to a child with a disability, unless a modification would fundamentally alter the nature of the goods and services. When a parent and a child’s physician determine that it is appropriate for a trained layperson to assist a child with diabetes care, a camp or childcare program must provide this as a reasonable modification under the ADA, unless doing so would fundamentally alter the program.
The Philadelphia Freedom Valley YMCA – Rocky Run Branch refused to perform diabetes related tasks, including administering glucagon in the event of a low blood glucose level emergency and supervising the child to self-administer insulin. YMCA also limited the child’s participation in the after-school program by allowing her to attend only until 4:00 p.m., even though the program ran until 6:00 p.m. Finally, YMCA asked the child’s parents to supply an aide to monitor the child in the summer day camp program.
“After-school and camp programs enable children to learn and socialize with their friends, and enable parents to ensure that their children are well-cared for, and YMCAs are one of the key providers parents turn to for that care,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Such providers may not exclude children with disabilities, and the Department of Justice will continue to aggressively fight all forms of discrimination that deny children with disabilities the protections and opportunities they deserve.”
Under the terms of the agreement, the YMCA will:
• adopt a non-discrimination policy;
• develop a sample diabetes medical management plan;
• remove unnecessary inquiries from its application materials that tend to screen out individuals with disabilities;
• train its staff on the ADA and diabetes management;
• provide information for parents on how to request modifications for children with disabilities;
•designate an ADA compliance officer who will monitor compliance with the agreement and review requests for reasonable modifications, among other duties; and
• report annually to the United States on its compliance.
ADA enforcement is a top priority of the Justice Department’s Civil Rights Division. Those interested in finding out more about this settlement or the obligations of camps and child care programs under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint/.
Philadelphia Freedom Valley YMCA – Rocky Run Branch
Honduran National Pleads Guilty to Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RONY GAVARRETTE, age 23, a native of Honduras, pled guilty yesterday to a one-count Indictment for illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to court documents, GAVARRETTE was previously removed from the United States on September 26, 2011. GAVARRETTE was later found in the Eastern District of Louisiana on November 10, 2015, and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
GAVARRETTE faces a maximum term of imprisonment of ten years, as well as a fine of $250,000. U.S. District Court Judge Martin L.C. Feldman set sentencing for September 7, 2016.
U.S. Attorney Polite praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Heroin Dealer Sentenced to 35 Years for Overdose DeathRead the Press Release
NORFOLK, Va. – Gregory Hatt, 29, of Virginia Beach, was sentenced today to 420 months in prison for distribution of heroin resulting in death.
“The heartbreak for the Beaudry family is a tragedy unfolding in nearly every community across our country,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “While justice cannot restore the Beaudry’s daughter to their family, law enforcement can continue to aggressively prosecute those who seek to prey upon vulnerable members of our community. Law enforcement, however, does not possess the complete answer. We must continue to strive for increases in opioid awareness, education, prevention and treatment so that our communities can ride themselves of this invasive agent of human misery.”
“Burying a child is every parent's worst nightmare and my heart breaks every time I meet a family, like the Beaudrys, that has lost a child to these powerful drugs,” said Mark Herring, Attorney General of Virginia. “These families have such love for their children and they mourn the promising future that men like Gregory Hatt took from them. Even after his drugs claimed a life and shattered a family, Hatt continued to deal heroin and profit from addiction, showing no remorse or recognition of the damage he was causing. As we work to build a comprehensive, community-wide effort to prevent addiction and educate Virginians about the dangers of heroin and prescription opioids, we will continue to partner with U.S. Attorney Boente and local law enforcement to get these deadly drugs off the streets and bring the dangerous criminals that deal them to justice.”
“The Naval Criminal Investigative Service is committed to working with our law enforcement partners to bring to justice those who are driving the deadly heroin wave which is taking lives and destroying families in the Tidewater area, said Tim Quick, Special Agent in Charge of the NCIS Norfolk Field Office. “NCIS will use our unique authorities, resources and capabilities in combatting this growing problem, to help protect Sailors, Marines, Department of the Navy civilians and families, and the communities in which we work and live.”
According to court documents, Hatt sold heroin, cocaine, and other narcotics out of a rented house in Virginia Beach from December 2014 through July 2015. On Dec. 26, 2014, Hatt called Monica Beaudry, a 23-year-old Virginia Beach woman, to come to his house for what he described as “a birthday present.” Hatt distributed heroin to Beaudry and she subsequently displayed signs of an overdose by foaming at the mouth, exhibiting troubled breathing, and losing consciousness. Others at the house implored Hatt to call 911, but he refused. Approximately 40 minutes after displaying symptoms of overdose, Beaudry was driven to Chesapeake Regional Medical Center where she was pronounced dead. Hatt became aware of Beaudry’s death, but continued to distribute heroin from his residence and from other Virginia Beach locations for the following seven months. In February 2015, he distributed heroin to an active duty U.S. Navy sailor stationed on an aircraft carrier in Norfolk. That sailor and another sailor on the carrier also overdosed. Both sailors were immediately treated by medical personnel and survived. On July 24, 2015, law enforcement agents with Naval Criminal Investigative Service (NCIS) and officers with the Virginia Beach Police Department executed a search warrant on Hatt’s residence and recovered quantities of heroin, cocaine, various drug paraphernalia, and multiple firearms, including a loaded sawed-off shotgun.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Mark R. Herring, Attorney General of Virginia, Timothy Quick, Special Agent in Charge for the NCIS Norfolk Field Office, made the announcement after U.S. District Judge Raymond A. Jackson announced the sentence. Special Assistant U.S. Attorneys Alyssa Nichol and John F. Butler prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-153.
Grand Forks Bank Robber Pleads GuiltyRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on May 18, 2016, Charlene Mae Corona, 39, Crookston Minn., pled guilty before US District Judge Ralph R. Erickson to two counts of Bank Robbery.
At approximately 1:30 p.m. on September 30, 2015, a female entered the Bremer Bank at 921 North Washington St., in Grand Forks, ND and demanded money from the teller. The female pulled out a knife and pointed it at one of the employees. The employee provided money to the individual who put it into a tote bag. The FBI and Grand Forks Police Department began an investigation.
Then, on October 12, 2015, a female entered the Citizens Community Credit Union at 1215 N. 42nd St. Grand Forks and while displaying a handgun she threw down a black bag and demanded money from a bank teller. Again law enforcement investigated this robbery.
Surveillance video from each of the robberies showed that the same female committed both of the robberies. Law enforcement received tips that the robber was the defendant Charlene Mae Corona. She was later arrested in Moorhead, Minnesota.
Corona faces a maximum of 20 years in prison, a $250,000 fine, and three years of supervised release on each count. A sentencing will be set before Judge Ralph Erickson in United States District Court in Fargo North Dakota.
This case is being investigated by Federal Bureau of Investigation (FBI), Grand Forks Police Department, Grand Forks Sheriff’s Department, and the Moorhead Police Department.
First Assistant US Attorney Keith Reisenauer prosecuted the case.
Franklinville Man Sentenced for Illegally Buying and Selling Elephant TusksRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. — U.S. Attorney William J. Hochul, Jr., announced today that Ferdinand E. Krizan, 78, of Franklinville, NY, who was convicted of trafficking in prohibited wildlife, was fined $30,000 by Chief U.S. District Judge Frank P. Geraci.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that on November 6, 2013, Krizan, owner of Fred’s Antiques in Franklinville, purchased two elephant tusks from an auction house in Montreal, Quebec for $4,320 Canadian dollars. The defendant then had the tusks shipped to an address in Niagara Falls, Ontario.
On November 28, 2013, Krizan transported the tusks from Niagara Falls, Ontario into the United States through the Rainbow Bridge port of entry, violating the Endangered Species Act. Subsequently, on May 31, 2014, the defendant sold the tusks, along with four additional tusks to a buyer in Massachusetts for $50,000 American dollars. At the time of that sale, Krizan knew that the two elephant tusks had been improperly transported into the United States. At no time did the defendant apply for or receive a permit under the Endangered Species Act authorizing the importation, delivery, receipt, transportation, or sale of elephant ivory.
The investigation also determined that the defendant also illegally trafficked in other protected wildlife including:
• a Narwhal tusk, which he sold for $8,000 American dollars in violation of the Marine Mammal Protection Act;
• two elephant tusks, which he sold for $66,000 American dollars;
• a carved elephant ivory art object, which he purchased for $1,020 Canadian dollars;
• one elephant tusk, which he purchased for $3,130.68 Canadian dollars;
• one hippo ivory carving, which he sold for $1,400 American dollars;
• one elephant ivory musician carving, which he sold for $2,525 American dollars;
• one bronze and elephant ivory sosoon figurine, which he sold for $3,700 American dollars;
• one elephant ivory trip-tix, which he sold for $2,700 Canadian dollars; and
• one carved coral figurine, which he sold for $3,400 American dollars.
The total value of the wildlife trafficked by the defendant is $141,877.00. As part of the plea, the defendant will also abandon approximately 100 pieces of elephant ivory carvings.
The sentencing is the culmination of an investigation by the U.S. Fish and Wildlife Service, under the direction of Honora Gordon, Special Agent in Charge, Northeast Region, and the New York State Department of Environmental Conservation, under the direction of Captain Frank Lauricella.Four Assistant United States Attorneys Honored by the Charlotte-Mecklenburg Police Department at Annual “Chief's Awards ” CeremonyRead the Press Release
CHARLOTTE, N.C. – Four Assistant United States Attorneys were honored today by the Charlotte-Mecklenburg Police Department at the annual “Chief’s Awards” ceremony, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. The four were presented with the “Chief’s Award for Excellence in Policing” for the federal prosecution of significant criminal cases. The ceremony was held at CMPD’s Police and Fire Training Academy.
“I congratulate our four Assistant United States Attorneys for receiving this special recognition today,” said U.S. Attorney Rose. “They are excellent prosecutors dedicated to the pursuit of justice and I want to thank each one for serving our district and the Department of Justice with distinction and integrity both in and out of the court room.”
Assistant U.S. Attorneys Robert Gleason, Jennifer Dillon, Elizabeth Greene and William Miller were the four prosecutors recognized for their respective work on three federal prosecutions. Assistant U.S. Attorneys Greene and Miller received the award for the ongoing prosecution of 37 MS-13 gang members, four of whom were convicted at trial in April 2016.
Assistant U.S. Attorneys Gleason and Dillon were recognized for their prosecution of Fathia Davis, who was sentenced in February 2016 to 10 years in prison in connection with a murder-for-hire plot against her ex-husband. Ms. Dillon also received an award for the prosecution of the “Carlton-Wilson Group,” involving four defendants responsible for multiple break-ins, burglaries and illegal gun sales in the Charlotte area. The defendants, Tory Vazquez, Brendan Penn, Dominic McDonald and Carlton Wilson, were sentenced to prison terms of up to 206 months for their crimes.
The United States Attorney's Office is responsible for representing the federal government in virtually all litigation involving the United States in the Western District of North Carolina. This includes all criminal prosecutions for violations of federal law, civil lawsuits by and against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Western District of North Carolina extends over 13,563.9 square miles and includes the state’s 32 westernmost counties.
Former Tukwila, Washington, Police Officer Charged with Using Excessive Force against Restrained ArresteeRead the Press Release
WASHINGTON – Former Tukwila, Washington, Police Department (TPD) Officer Nicholas Hogan was charged today with using excessive force on a restrained arrestee on May 20, 2011, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Annette L. Hayes of the Western District of Washington.
The indictment alleges that Hogan, while acting as a TPD officer, deployed oleoresin capsicum spray (commonly referred to as OC spray or pepper spray) against an arrestee who was in four-point restraints and shackled to a gurney in a hospital. The indictment identifies the arrestee only by the initials M.S. The indictment further alleges that M.S. suffered bodily injury as a result of Hogan’s use of excessive force.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Hogan faces a maximum sentence of 10 years in prison for the civil rights violation, as well as a potential $250,000 fine.
The case is being investigated by the FBI’s Seattle Division. The case is being prosecuted by Assistant U.S. Attorney Bruce Miyake of the Western District of Washington and Trial Attorneys Jared Fishman and Rose E. Gibson of the Civil Rights Division’s Criminal Section.
Former Tukwila, Washington, Police Officer Charged with Using Excessive Force Against Restrained ArresteeRead the Press Release
Former Tukwila, Washington, Police Department (TPD) Officer Nicholas Hogan was charged today with using excessive force on a restrained arrestee on May 20, 2011, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Annette L. Hayes of the Western District of Washington.
The indictment alleges that Hogan, while acting as a TPD officer, deployed oleoresin capsicum spray (commonly referred to as OC spray or pepper spray) against an arrestee who was in four-point restraints and shackled to a gurney in a hospital. The indictment identifies the arrestee only by the initials M.S. The indictment further alleges that M.S. suffered bodily injury as a result of Hogan’s use of excessive force.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Hogan faces a maximum sentence of 10 years in prison for the civil rights violation, as well as a potential $250,000 fine.
The case is being investigated by the FBI’s Seattle Division. The case is being prosecuted by Assistant U.S. Attorney Bruce Miyake of the Western District of Washington and Trial Attorneys Jared Fishman and Rose E. Gibson of the Civil Rights Division’s Criminal Section.
Hogan Indictment
Former Scott Credit Union Loan Officer Pleads Guilty to FraudsRead the Press Release
Theodore J. Longust, 50, formerly from Columbia, Illinois, entered pleas of guilty today to a nine-count Indictment charging, Count 1, Financial Institution Fraud; Counts 2-5, Misapplication of Funds; Counts 6-8, Money Laundering; and Count 9, Making a False Record to Scott Credit Union With The Intent to Deceive, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced. Longust was an employee of Scott Credit Union in the commercial loan department from November 7, 2005, continuing through December 8, 2014, and held the title of Business Relationship Manager. Longust executed a scheme to defraud through the embezzlement of credit union funds, the creation of fraudulent loans, the payment of loans through the misapplication of funds from other loans, the increase of credit limits on loans that did not have the requisite board approval, the issuance of business loans without the required documentation or security and the issuance of letters of credit without the required documentation and security. The indictment also alleges that he knowingly submitted a false report to Scott Credit Union for the 3rd quarter of 2014 that misstated loan balances and omitted loan amounts and underreported loans of over $12,000,000. Longust faces a prison sentence of up to 240 years, a fine of up to $4,500,000, and up to 5 years supervised release, and mandatory restitution when he faces sentencing before District Judge Yandle on September 6, 2016.
"While we are not in the business of giving the public financial or legal advice, the public should know that our investigation revealed that the safety and soundness of Scott Credit Union has not been adversely affected by the criminal conduct." noted Acting United States Attorney Porter. "We thank the Employees of Scott Credit Union who fully cooperated in our federal investigation."
The prosecution is the result of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service/Criminal Investigations with the assistance of Scott Credit Union. The case is being prosecuted by Assistant United States Attorney Norman R. Smith.
Former Mail Carrier Pleads Guilty to Obstruction of MailRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Jennifer Serrano, 26, of Tonawanda, NY, pleaded guilty to obstruction of the mail before U.S. Magistrate Judge Jeremiah J. McCarthy. The charge carries a maximum penalty of six months in prison and a $5,000 fine.
Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that the defendant, at the time a United States Postal Service mail carrier, failed to deliver more than 700 pieces of mail between March 2013 and February 2014. Serrano brought the undelivered mail to her residence and stored it there instead of delivering it. The defendant has since resigned from the Postal Service.
The plea is the result of an investigation by the United States Postal Service, Office of the Inspector General, under the direction of Special Agent in Charge Monica Weyler, Eastern Area Field Office, Philadelphia, PA.
Sentencing is scheduled for August 16, 2016 at 2:00 p.m. before Judge McCarthy.
Former Employee Pleads Guilty to Embezzling More than $1M, Income Tax EvasionRead the Press Release
CINCINNATI – Steven J. Porges, 52, of Park City, Utah pleaded guilty in U.S. District Court to one count each of wire fraud and income tax evasion.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, and Angela L. Byers, Special Agent in Charge, FBI, Cincinnati Field Division, announced the plea entered into today before U.S. District Judge Michael R. Barrett.
According to court documents, between 2007 and October 2014 Porges devised a scheme to defraud KAO Brands Company, now known as Kao USA Inc. (KAO), of money and property by means of false and fraudulent pretenses. As a result of his conduct, the defendant caused a loss to KAO of more than $1 million.
KAO, with its principal office located in Cincinnati, Ohio, is a manufacturer and supplier of beauty care products. KAO promotes its products through promotional offers, which often include using grocery store end caps to showcase its products. The company uses third-party vendors to advertise and place its promotional products.
Porges was employed by KAO as a National Account Manager beginning in 2002, until his termination on October 9, 2014. In that capacity, he negotiated with third-party vendors to secure shelf space for KAO's products in retail stores, and managed KAO's contracts with those vendors. Porges worked remotely from his home in Park City, Utah.
Porges purchased American Express gift cards, generally in the amount of $2,000 per card, from third-party vendors. The vendors sent the gifts cards and invoices directly to Porges’ home. Porges purchased the gift cards on the premise that he was acting on behalf of KAO to provide the gift cards to retailers as incentives to run KAO promotions. In reality, KAO did not authorize the purchase of the gift cards, and used the majority of the gift cards for personal expenses.
Porges altered the invoices by falsely representing on the invoices that he had purchased shelf space, end cap space and promotional offers instead of gift cards. At times, Porges instructed the vendors on what wording to use on the invoices. Porges then faxed or emailed the false invoices to KAO for payment. Based on the false invoices provided by Porges, KAO made payments directly to the vendors for what it believed were legitimate business expenses without knowledge that Porges had purchased gift cards for his own personal benefit.
Porges paid various personal expenses with the fraudulent proceeds, including electric bills, dry-cleaning, Starbucks purchases, vacations, airline and sporting event tickets and jewelry.
For each of the calendar years 2009 through 2014, Porges willfully attempted to evade the income taxes due on the money he took from KAO by filing false income tax returns which did not include the wire fraud proceeds he had received.
For those years, he claimed taxable income in the amount of $779,052 and that the amount of tax due and owing was $137,697. The investigation revealed that Porges knew his true taxable income tax was in the amount of $1,608,568, resulting in an additional tax due and owing of $256,577.
Wire fraud is punishable by up to 20 years in prison, and income tax evasion is punishable by up to five years imprisonment.
"The IRS enforces the nation's tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Acting U.S. Attorney Glassman commended the cooperative investigation by the IRS and FBI, as well as Assistant United States Attorney Deborah D. Grimes, who is representing the United States in this case.