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Friday 6 May 2016
Senior Member of Montebello Street Gang Convicted of Federal Racketeering and Firearm ChargesRead the Press Release
LOS ANGELES – A longtime member of the Mexican Mafia-affiliated Southside Montebello street gang was found guilty this afternoon of federal racketeering charges that included providing a firearm used by another gang member to kill a rival.
George Vera Sr., 48, was convicted by a federal jury that determined he conspired to violate the Racketeer-Influenced and Corrupt Organizations Act (RICO). The jury also found Vera Sr. guilty of possession of a firearm in furtherance of a crime of violence.
As a result of today’s convictions, Vera Sr. faces a statutory maximum penalty of life in federal prison, and a mandatory minimum prison term of five years. United States District Judge Dolly M. Gee, who presided over a three-week trial, will schedule a sentencing hearing for later this year.
Vera Sr., who was also known as “Rascal” and “Big Rascal,” was a senior “OG” member of Southside Montebello. At trial, prosecutors argued that he led a double life, working as an electrician for Los Angeles County during the day, and acting a gang leader and gang shot-caller during his off hours.
According to court document filed in court, Vera Sr. “engaged in hiding a firearm with a fellow gang member, provided a firearm to a younger gang member that was used in a murder, stored firearms and ammunition at his home for gang members to use, hosted gang meetings, was involved in the payment of ‘taxes’ to the Mexican Mafia on the gang’s behalf, directed younger members of the gang to protect his home from disrespect from rival gangs, and agreed to lie to his son’s probation officer to shield him from prosecution for drug dealing.”
United States Attorney Eileen M. Decker stated: “George Vera Sr. was a senior member of a gang that undertook great efforts to quash its rivals. This gang also maintained an arsenal of weapons, regularly engaged in acts of violence, and was involved in significant narcotics trafficking.”
Two of Vera Sr.’s sons were charged and pleaded guilty in this case. Marcus Matthew Vera pleaded guilty to drug, conspiracy and firearm charges, and will be sentenced later this year. George Vera pleaded guilty to conspiracy to commit robbery and possession of a firearm, and he previously was sentenced to 54 months in federal prison.
Vera Sr. and his two sons are among 16 defendants who have been convicted in federal court on charges related to Operation “Sudden Impact,” which was a task force investigation into gang activities in the City of Montebello.
As a result of Sudden Impact, six defendants were charged by the Los Angeles County District Attorney’s Office in relation to six murder “cold cases” solved during this investigation. Four of those charged in relation to the previously unsolved murder cases have been convicted in state court, and another two defendants are pending trial. Additionally, five other defendants were charged by the District Attorney on crimes ranging from drug sales to attempted murder.
“Montebello Police personnel, working with our federal law enforcement counterparts, have successfully prosecuted some of the top leaders and most dangerous members of a street gang that has terrorized the community for decades,” said Montebello Police Chief Kevin L. McClure. “As a result of this collaborative effort, the City of Montebello is now a safer and more peaceful place.”
Operation Sudden Impact was a multi-agency effort of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Montebello Police Department; the Los Angeles County Sheriff’s Department; and the California Department of Corrections and Rehabilitation, Special Services Unit.
As part of the investigation, undercover law enforcement officers and confidential informants infiltrated the Southside Montebello gang and obtained evidence of the gang’s crimes, including murders and methamphetamine distribution.
ATF Special Agent in Charge Eric Harden stated: “I applaud the agents and prosecutors who pursue investigative leads derived from crime guns. Linking trace and ballistic intelligence can also link the worst of the criminal element on our streets, providing some closure to families and communities.”
Round Rock Man Sentenced to Federal Prison in Connection with an Estimated $4.5 Million Ponzi SchemeRead the Press Release
In Austin today, William Risinger, owner of RHM Exploration, LLC, was sentenced to 160 months in federal prison in connection with a estimated $4.5 Million Ponzi scheme announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter, and Texas State Securities Board Commissioner John Morgan.
In addition to the prison term, United States District Judge Sam Sparks ordered a money judgment against Risinger for $3,722,975.54 to be paid to his victims and be placed on supervised release for a period of three years after completing his prison term.
In January 2016, Risinger, age 44, pleaded guilty to one count of wire fraud and one count of money laundering. By pleading guilty, Risinger admitted that from November 2010 to June 2014, he stole money from investors based on three fraudulent oil, gas and mineral venture schemes. According to court documents, Risinger used the proceeds of his scheme for his own personal use or as “lulling” payments in order to convince investors that the joint venture they invested in was operating as promised.
Risinger is in federal custody. According to court records, Risinger, who was on bond pending sentencing in this case, was arrested on April 25, 2016, for violating terms of his bond by traveling to Las Vegas. Testimony during today’s sentencing hearing revealed that Risinger lost an estimated $500,000 while gambling in Las Vegas between November 2015 and February 2016.
“Today's sentencing of William Risinger should sound an alarm to those looking to invest their hard-earned income,” said William Cotter, IRS Criminal Investigation Special Agent in Charge, San Antonio Field Office. “Risinger drilled all right - right into the pockets of unsuspecting individuals who trusted him with their monies because, apparently, Risinger's favorite partnership was with local casinos.”
This case is the result of a joint investigation conducted by the FBI, IRS-Criminal Investigation, and the Texas State Securities Board. Assistant United States Attorney Dan Guess prosecuted this case on behalf of the Government.
Project Safe Childhood - Kingston Man Sentenced for Child Pornography PossessionRead the Press Release
CONCORD, NEW HAMPSHIRE: Gene Mondalto, 37, of Kingston, New Hampshire, was sentenced to 60 months in federal prison by the United States District Court for the District of New Hampshire after pleading guilty to one count of possessing child pornography, announced United States Attorney Emily Gray Rice.
Information provided by the National Center for Missing and Exploited Children (NCMEC) led federal and state investigators to Mondalto’s Kingston, New Hampshire residence, where they discovered hundreds of videos and still images of child pornography on Mondalto’s personal computer.
The case was investigated by the New Hampshire Crimes Against Children Task Force in conjunction Homeland Security Investigations Manchester, and the police departments of Kingston, Hampton, Allenstown, Litchfield, Manchester, Portsmouth, Rye, and Salem, New Hampshire.
The case was prosecuted by Assistant United States Attorney Nick Abramson.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
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Pennsylvania Woman Sentenced to 40 Months in Prison for Role in International $200 Million Credit Card Fraud ConspiracyRead the Press Release
TRENTON, N.J. – A Philadelphia woman who participated in one of the largest credit card fraud schemes ever charged by the Justice Department was sentenced today to 40 months in prison, U.S. Attorney Paul J. Fishman announced.
Vernina Adams, 34, previously pleaded guilty before Judge Anne E. Thompson to an information charging her with one count of conspiracy to commit bank fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Adams was originally charged in February 2013 as part of a conspiracy, led by Tahir Lodhi, Babar Qureshi, Ijaz Butt, and others, to fabricate more than 7,000 false identities and obtain tens of thousands of credit cards. Since then, 19 people, including Adams, have pleaded guilty in connection with the scheme.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a phony credit profile with the major credit bureaus; pump up the credit of the false identity by providing bogus information about that identity’s creditworthiness; then borrowed or spent as much as they could without repaying the debts – causing more than $200 million in confirmed losses to businesses and financial institutions.
The scope of the criminal enterprise required Adams and others to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses of the false identities.
Adams and her conspirators also used sophisticated methods – including a network of black-market businesses called “tradelines” providers – to commit fraud. Tradelines come in two varieties: primary tradelines and authorized user tradelines. Primary tradelines are lines of credit in a credit history. If a credit card user has primary tradelines in good standing, it can have a significant impact on the user’s credit score, enabling the user to borrow more from credit card issuers. A second kind of tradeline is the “authorized user” tradeline, where a credit card holder adds another individual to a credit card account. This raises the credit score of the authorized user, who inherits some of the primary user’s credit history.
During her plea proceeding, Adams admitted advertising on Craigslist for individuals willing to add someone onto their credit cards. She also admitted selling other members of the conspiracy fraudulent tradelines, including by working with Acapulco Jewelry, a complicit business in California. Adams would extend a fictitious line of credit to a false identity, backdate the line of credit so it appeared to have existed for a longer period of time, then falsely report the line of credit had been paid.
In addition to the prison term, Judge Thompson sentenced Adams to five years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. He also thanked postal inspectors under the direction of Acting Inspector in Charge Cynthia Shoffner, special agents of the U.S. Secret Service, under the direction of Acting Special Agent in Charge Jeffrey Wood, and the U.S. Social Security Administration for their assistance.
The government is represented by Assistant U.S. Attorneys Zach Intrater and Daniel V. Shapiro of the U.S. Attorney’s Office Economic Crimes Unit, as well as Assistant U.S.
Attorney Barbara Ward, Acting Chief of the Asset Forfeiture and Money Laundering Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
Defense counsel: Vernina Adams: Todd E. Henry Esq., Philadelphia
New Orleans Man Charged with Sex Trafficking by Using Threats, Force and CoercionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DAVID MICHAEL WHITE, JR., a/k/a “Prince Loyalty,” age 32, of New Orleans, was charged today in a three-count Indictment for offenses related to his involvement in the sex trafficking of adult women in the New Orleans area.
According to the Indictment, WHITE is charged with one count of sex trafficking by force, fraud or coercion from on or about July 28, 2015, until on or about August 31, 2015, and with two counts of use of an interstate facility to promote prostitution in 2013, as well as 2015.
If convicted of Count One, WHITE faces a mandatory minimum term of imprisonment of fifteen years and a maximum of life, a $250,000 fine and a life term of supervised release following imprisonment. WHITE may also be required to register as a sex offender. As to Counts Two and Three, WHITE faces up to ten years in prison, a $250,000 fine and three years of supervised release following any term of imprisonment.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the New Orleans Field Offices of ICE Homeland Security Investigations as well as the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Julia K. Evans is in charge of this prosecution.
Miami-Dade Resident Pleads Guilty in Stolen Identity Tax Fraud Scheme Involving Approximately 1,288 Debit Cards Containing More Than $1 Million in Tax RefundsRead the Press Release
A Miami-Dade County resident pled guilty for his participation in a stolen identity tax fraud scheme involving approximately 1,288 debit cards containing more than $1 million in tax refunds.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), and John E. Brooks, Chief, Sunrise Police Department, made the announcement that Yasmany Lopez, 28, pled guilty to one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) on May 3, 2016.
The sentencing hearing is scheduled for July 8, 2016 before U.S. District Judge Beth Bloom. At sentencing, Lopez faces a maximum statutory sentence of ten years in prison for the access device charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
According to court documents, in early 2012, individuals in Colombia negotiated with a confidential source (CS) to rent an airplane that would be used to transport controlled substances from Colombia to Honduras. As part of these negotiations, the individuals arranged delivery of $500,000 to the CS as payment to use the airplane. The CS received an initial payment of $170,000, and defendant Lopez contacted the CS to arrange delivery of the remaining $330,000. After Lopez met with the CS, officers stopped Lopez in his car. Lopez gave consent to search the vehicle, and the officers located two boxes containing $330,000 in cash, approximately 197 Turbo Tax debit cards and 1,035 Green Dot debit cards each bearing different individual’s names, mail addressed to several different individuals, and ATM receipts.
During a subsequent search of Lopez’s residence, law enforcement found an additional 48 Turbo Tax debit cards, 8 Green Dot debit cards, and numerous Turbo Tax mailing envelopes and cardholder agreements. The IRS determined that the 245 Turbo Tax cards found between Lopez’s car and residence had been loaded with approximately $1,071,188 in federal income tax refunds. The IRS identified the tax returns associated with fifteen of the seized debit cards. The individuals named on these tax returns are all residents of Puerto Rico, but the individuals did not authorize anyone to file these tax returns or to use their personal information.
Lopez admitted that he removed cash from the debit cards at ATMs in exchange for a 2% commission. He also recruited individuals who allowed Lopez to use their mailing addresses to receive the debit cards, in exchange for $100 per card. A portion of the $330,000 he was to deliver to the CS came from the debit cards in his possession.
Mr. Ferrer commended the investigative efforts of IRS-CI, the DEA, and the Sunrise Police Department. The case is being prosecuted by Assistant U.S. Attorney Jared M. Strauss.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Liberty Reserve Founder Sentenced to 20 Years for Laundering Hundreds of Millions of DollarsRead the Press Release
Arthur Budovsky, 42, was sentenced today in the Southern District of New York to 20 years imprisonment for running a massive money laundering enterprise through his company Liberty Reserve S.A. (“Liberty Reserve”), a virtual currency once used by cybercriminals around the world to launder the proceeds of their illegal activity.
Assistant Attorney General Leslie R. Caldwell for the Justice Department’s Criminal Division and U.S. Attorney Preet Bharara for the Southern District of New York made the announcement.
In January, Budovsky pleaded guilty to one count of conspiring to commit money laundering. In imposing sentence, the court noted that Budovsky ran an “extraordinarily successful” and “large-scale international money laundering operation.” U.S. District Judge Denise L. Cote also ordered Budovsky to pay a $500,000 fine.
“The significant sentence handed down today shows that money laundering through the use of virtual currencies is still money laundering, and that online crime is still crime,” said Assistant Attorney General Caldwell. “Together with our American and international law enforcement partners, we will protect the public even when criminals use modern technology to break the law.”
“Liberty Reserve founder Arthur Budovsky ran a digital currency empire built expressly to facilitate money laundering on a massive scale for criminals around the globe,” said Manhattan U.S. Attorney Bharara. “Despite all his efforts to evade prosecution, including taking his operations offshore and renouncing his citizenship, Budovsky has now been held to account for his brazen violations of U.S. criminal laws.”
According to the indictment, Liberty Reserve billed itself as the Internet’s “largest payment processor and money transfer system” and allowed people all over the world to send and receive payments using virtual currency. At all relevant times, Budovsky directed and supervised Liberty Reserve’s operations, finances, and business strategy and was aware that digital currencies were used by other online criminals, such as credit card traffickers and identity thieves.
Liberty Reserve grew into a financial hub for cybercriminals around the world, trafficking the criminal proceeds of Ponzi schemes, credit card trafficking, stolen identity information and computer hacking. By May 2013, when the government shut it down, Liberty Reserve had more than 5.5 million user accounts worldwide and had processed more than 78 million financial transactions with a combined value of more than $8 billion. United States users accounted for the largest segment of Liberty Reserve’s total transactional volume – between $1 billion and $1.8 billion – and the largest number of user accounts – over 600,000.
Four co-defendants, Vladimir Kats, Azzeddine El Amine, Mark Marmilev and Maxim Chukharev, have already pleaded guilty. Marmilev and Chukharev were sentenced to five years and three years in prison, respectively. Judge Cote is expected to sentence Kats and El Amine May 13. Charges remain pending against Liberty Reserve and two individual defendants who are fugitives.
The U.S. Secret Service, the Internal Revenue Service-Criminal Investigation and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated this case as part of the Global Illicit Financial Team. The U.S. Secret Service’s New York Electronic Crimes Task Force assisted with the investigation. The Judicial Investigation Organization in Costa Rica, Interpol, the National High Tech Crime Unit in the Netherlands, the Spanish National Police’s Financial and Economic Crime Unit, the Cyber Crime Unit at the Swedish National Bureau of Investigation and the Swiss Federal Prosecutor’s Office also provided assistance.
Trial Attorney Kevin Mosley of the Criminal Division’s Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorneys Christian Everdell, Christine Magdo and Andrew Goldstein of the Southern District of New York are prosecuting the case. The Criminal Division’s Office of International Affairs and Computer Crime and Intellectual Property Section provided substantial assistance.
Liberty Reserve Founder Arthur Budovsky Sentenced in Manhattan Federal Court to 20 Years for Laundering Hundreds of Millions of Dollars Through His Global Digital Currency BusinessRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Leslie R. Caldwell, Assistant Attorney General for the Justice Department’s Criminal Division, announced that ARTHUR BUDOVSKY, 42, was sentenced today in Manhattan federal court to 20 years in prison for running a massive money laundering enterprise through his company Liberty Reserve, a virtual currency once used by cybercriminals around the world to launder the proceeds of their illegal activity. BUDOVSKY was arrested in Spain in May 2013 and was extradited to the United States in October 2014. BUDOVSKY pled guilty to one count of conspiring to commit money laundering on January 29, 2016, three days before his trial was scheduled to begin. U.S. District Judge Denise L. Cote imposed today’s sentence, noting that the defendant did not express any “genuine remorse,” and that his crimes caused “widespread harm” and led to “countless victims of fraud around the world.”
Manhattan U.S. Attorney Preet Bharara stated: “Liberty Reserve founder Arthur Budovsky ran a digital currency empire built expressly to facilitate money laundering on a massive scale for criminals around the globe. Despite all his efforts to evade prosecution, including taking his operations offshore and renouncing his citizenship, Budovsky has now been held to account for his brazen violations of U.S. criminal laws.”
Assistant Attorney General Leslie R. Caldwell stated: “The significant sentence handed down today shows that money laundering through the use of virtual currencies is still money laundering, and that online crime is still crime. Together with our American and international law enforcement partners, we will protect the public even when criminals use modern technology to break the law.”
According to the allegations contained in the Indictment filed against Liberty Reserve, BUDOVSKY, and six other individual defendants; BUDOVSKY’s plea agreement; the evidence filed with the sentencing submissions for BUDOVSKY; and statements made in related court filings and proceedings:
Liberty Reserve S.A. (“Liberty Reserve”) billed itself as the Internet’s “largest payment processor and money transfer system” and operated one of the world’s largest and most widely used digital currencies, which could be used to send and receive payments, via the Internet, to and from people all over the world. At all relevant times, BUDOVSKY directed and supervised Liberty Reserve’s operations, finances, and business strategy.
Liberty Reserve was originally conceived by BUDOVSKY and co-defendant Vladimir Kats in Brooklyn, New York, in approximately 2001, and became operational in late 2005. From his previous experience with “GoldAge” – a digital currency exchange business that he ran with Kats – BUDOVSKY was aware that a substantial volume of digital currency transactions were related to Internet investment schemes called high-yield investment programs (“HYIPs”), which he knew to be online Ponzi schemes. BUDOVSKY was also aware that digital currencies were used by other online criminals, such as credit card traffickers and identity thieves.
BUDOVSKY designed Liberty Reserve specifically to appeal to these online criminals in order to capture their business. Among other things, BUDOVSKY set up Liberty Reserve to have weak anti-money laundering (“AML”) controls and allowed users to move money anonymously through Liberty Reserve’s system, regardless of the volume or provenance of the funds. BUDOVSKY also marketed Liberty Reserve specifically to HYIP operators and other criminal clientele.
In May 2006, BUDOVSKY and Kats were arrested and later pled guilty to operating GoldAge as an unlicensed money transmitting business. Following their arrests, over the next two years, BUDOVSKY and Kats moved Liberty Reserve’s operations offshore to Costa Rica in an attempt to insulate themselves from the reach of U.S. law enforcement. BUDOVSKY was so committed to evading U.S. law enforcement that he later renounced his U.S. citizenship and became a Costa Rican citizen. In May 2008, BUDOVSKY pushed Kats out of Liberty Reserve and became the sole beneficial owner and principal operator of the company, with final decision-making authority over company decisions. BUDOVSKY maintained this role until Liberty Reserve was shut down in May 2013.
During the time period from 2009 to 2013, Liberty Reserve reached the height of its activity. At its peak in late 2012, Liberty Reserve handled a transactional volume of over $300 million per month, a significant portion of which came from users in the United States. BUDOVSKY knew that a substantial number of these transactions were connected to HYIPs and other online criminal activities, and continued to operate Liberty Reserve to cater to these customers. Among other things, BUDOVSKY and his co-conspirators intentionally failed to implement effective AML controls at Liberty Reserve. BUDOVSKY and his co-conspirators also took steps to prevent the Costa Rican regulatory authorities and Liberty Reserve’s own compliance officials from discovering the criminal transactions flowing through Liberty Reserve.
Liberty Reserve ultimately grew into a financial hub for cybercriminals around the world who used it to amass, distribute, store, and launder criminal proceeds derived from HYIPs, credit card trafficking, stolen identity information, and computer hacking. By May 2013, when it was shut down as a result of the Government’s criminal investigation, Liberty Reserve had more than 5.5 million user accounts worldwide, and had processed more than 78 million financial transactions with a combined value of more than $8 billion. United States users accounted for the largest segment of Liberty Reserve’s total transactional volume – between $1 billion and $1.8 billion – and the largest number of user accounts – over 600,000. As part of his plea agreement, BUDOVSKY admitted to laundering between $250 million and $550 million in criminal proceeds linked to Liberty Reserve accounts based in the United States.
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Two co-defendants – Mark Marmilev and Maxim Chukharev – pled guilty and have been sentenced to five and three years in prison, respectively. Two other co-defendants – Vladimir Kats and Azzeddine El Amine – are currently scheduled to be sentenced before U.S. District Judge Denise L. Cote on May 13, 2016. Charges against Liberty Reserve and two individual defendants who have not been apprehended remain pending.
Mr. Bharara praised the outstanding work of the United States Secret Service, the Internal Revenue Service-Criminal Investigation, and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, which worked together in this case as part of the Global Illicit Financial Team. Mr. Bharara also thanked the United States Secret Service’s New York Electronic Crimes Task Force for its extraordinary assistance with the investigation. Additionally, Mr. Bharara specially thanked all the international law enforcement agencies that assisted in the investigation, in particular, the Judicial Investigation Organization in Costa Rica, Interpol, the National High Tech Crime Unit in the Netherlands, the Spanish National Police-Financial and Economic Crime Unit, the Cyber Crime Unit at the Swedish National Bureau of Investigation, and the Swiss Federal Prosecutor’s Office.
This case is being prosecuted jointly with the Department of Justice’s Asset Forfeiture and Money Laundering Section (“AFMLS”), which is overseen by Assistant Attorney General Leslie R. Caldwell. Mr. Bharara thanked AFMLS for its partnership and also thanked the Department of Justice’s Office of International Affairs and Computer Crime and Intellectual Property Section for their support.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Asset Forfeiture Unit. Assistant United States Attorneys Christian Everdell, Christine Magdo, and Andrew Goldstein of the Southern District of New York and Trial Attorney Kevin Mosley of AFMLS are in charge of the prosecution.
Leader and Two Co-Conspirators Plead Guilty This Week to Bank Fraud Scheme Involving over 200 VictimsRead the Press Release
Baltimore, Maryland – Tariq Hicks, age 48, of Owings Mills, Maryland, pleaded guilty on May 2, 2016; and Eddie Carey, age 32; and Ishia Biff Cason, age 36, both of Baltimore, pleaded guilty on May 5, 2016, to bank fraud conspiracy and aggravated identity theft arising from a scheme to use stolen credit information of more than 200 victims to defraud financial institutions.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to their plea agreements, from at least June 2013, through December 18, 2013, Hicks, Carey, Cason, and others, conspired to defraud financial institutions by accessing stolen credit card and debit card accounts belonging to real people and using counterfeit cards encoded with the stolen account information to make unauthorized purchases.
Hicks purchased the stolen account information over the internet and used a computer and an electronic device called a “reader-writer” to encode the stolen credit and debit card information onto existing credit cards, gift cards, or other similar cards. These cards were sold or distributed to co-conspirators, such as Carey and Cason, who used them and provided the bulk of the proceeds to Hicks.
Hicks also purchased or obtained over the internet “credit profiles” containing the identity information of victims. He then obtained full credit reports for these victims. Using the information from the credit reports, Hicks sent co-conspirators into stores where the victims had existing credit accounts, with the victim’s personal identity information so that they could “authenticate” themselves as the victim. The co-conspirators, including Carey and Cason, would then make purchases on the existing accounts (called “account takeover”). In addition, Hicks used the credit reports to identify stores at which a victim did not have an account, and sent Carey, Cason and other co-conspirators into those stores with the same personal identity information. The co-conspirators would apply for new credit accounts in the victim’s identity, and then use that “instant credit” to make purchases before the victim learned of the account.
For all of these schemes, Hicks obtained fraudulent drivers’ licenses which bore the information of the victim, but the photograph of a co-conspirator. Hicks or a co-defendant would often provide a cheat sheet with the necessary personal identity and account information so that the co-conspirator would have ready and covert access to the information as needed. The co-conspirators could then use the counterfeit license to establish their identity as the victim.
Carey assisted Hicks by conducting wire transfers of money in payment for the stolen credit card numbers and personal profiles. Carey always used a victim identity, provided by Hicks, to wire the money, usually between $2,000 and $3,000, to an individual in the Ukraine. As one of the few men participating in the conspiracy, Carey was often involved in the exploitation of any male victim’s identity and account information. He used the counterfeit cards both to purchase merchandise and to rent cars for use by members of the conspiracy.
Hicks instructed Carey and others to travel to other states to engage in the fraud. Carey frequently traveled north to Pennsylvania and south as far as Georgia to engage in fraud, including North and South Carolina, West Virginia, and Virginia. As they traveled, Carey used counterfeit cards in victims’ names to rent hotel rooms and automobiles. Cason, who was on probation at the time and not allowed to travel outside of Maryland, conducted her fraudulent activities in Maryland.
On December 18, 2013, a search warrant was executed at Hicks’ residence, where he lived with Carey and another co-defendant. Located on the dining table in the kitchen area was a complete set up for the fraud scheme, including a computer with the credit profiles and credit reports on it, a reader/writer device, credit cards in various states of manufacture, money gram receipts for payments for the stolen credit card numbers and profiles, lists of personal identity information and “cheat sheets.” Also recovered were dozens of credit cards bearing victims’ names and accounts, as well as dozens of fraudulent identification to match the credit cards, all bearing the information of the victims but the photographs of co-conspirators. In Hicks’ bedroom was a receipt for a storage unit which was rented in a false identity used by a co-defendant. A search warrant was executed on the storage unit and a duplicate “mill” was located, including an embosser to manufacture embossed credit cards, and boxes containing hundreds of blank plastic cards ready for counterfeiting, including white, gold, silver and black cards. There were also over 150 cards in various states of manufacture.
Over 450 compromised accounts were compiled from the evidence seized from the residence and storage locker, although most had not yet been used in the scheme. There were over 200 victims, including businesses and financial institutions which sustained an actual loss and victims who had their identities compromised in the conspiracy. Based on the individual victims and credit accounts which were recovered from the search warrant, actual losses associated with the scheme are $61,030.78. As part of their plea agreements, the defendants will be required to pay restitution in the full amount of the victims’ losses.
The defendants each face a maximum sentence of 30 years in for the bank fraud conspiracy, and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. U.S. District Judge James K. Bredar scheduled sentencing for Hicks on June 10, 2016 at 9:30 a.m.; for Carey on August 18, 2016 and for Cason on August 5, 2016, both at 2:00 p.m.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who is prosecuting the case.
Kalihi Man Sentenced to 20 Years in Prison for Child Pornography OffensesRead the Press Release
HONOLULU – Michael K. Kormanik, age 54, of Kalihi, was sentenced yesterday by Senior District Judge Helen Gillmor in federal court to 20 years imprisonment, followed by supervised release for life, for transporting and possessing child pornography. As part of his federal conviction, Kormanik will be required to register as a sex offender. Kormanik was charged with and pled guilty to two counts of transportation of child pornography and one count of possessing child pornography.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to information produced in court, Kormanik’s home computer contained more than 3,000 images and more than 400 videos of child pornography, and an IP address associated with Kormanik on a peer-to-peer file sharing network also had images of child pornography.
Kormanik faced a mandatory minimum sentence of 15 years because he had a prior conviction for sexual assault of a minor, related to his repeated sexual abuse of a ten-year-old boy. Kormanik also admitted having previously sexually abused two other young boys. During the sentencing proceedings, Judge Gillmor expressed serious concern that Kormanik had recently been spending significant time with young boys who lived in his neighborhood, and that he had provided them with marijuana.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney Marc A. Wallenstein.
Justice Department Statements Regarding Court Approval of the Agreement with Newark, New Jersey, to Reform Unconstitutional Policing PracticesRead the Press Release
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Paul J. Fishman of the District of New Jersey released the following statements regarding the U.S. District Court for the District of New Jersey’s approval of the department’s agreement with the city of Newark, New Jersey, to reform the police department’s unconstitutional practices:
“We appreciate the court’s swift approval of the Justice Department’s consent decree with the city of Newark,” said Principal Deputy Assistant Attorney General Gupta. “This agreement will help the Newark Police Department reform policies, improve systems and rebuild trust between officers and the community they serve. As Newark implements this agreement, we will continue to work closely with city officials, law enforcement and community members to put in place the necessary changes that can make Newark a national model for constitutional, effective and accountable policing. Once fully implemented, these reforms will make all of those in Newark – officers and civilians alike – safer. And these reforms will ensure that law enforcement in Newark complies with the Constitution and safeguards the civil rights of every Newark resident.”
“This consent decree, now approved by the court, provides a roadmap for reform in Newark and a model for best practices for police departments across the country,” said U.S. Attorney Fishman. “Implementing the systemic changes outlined in the consent decree will take time, but this is what the city of Newark and the men and women who serve in the Police department want and need, and it is what the people of Newark deserve: a first-class police department that keeps them safe and respects their constitutional rights.”
Judge Sends Sea Turtle Egg Smugglers to PrisonRead the Press Release
Assistant U.S. Attorney Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY – May 6, 2016
SAN DIEGO – Jose and Olga Jimenez of Hemet, California, were sentenced in federal court today to six months in custody for smuggling 911 eggs of the endangered olive ridley sea turtles into the United States from Mexico.
In imposing sentence, U.S. District Court Judge Janis L. Sammartino noted that the case involved the largest seizure in U.S. history of sea turtle eggs imported from Mexico, and the method of transportation (26 hours on ice by bus) caused the eggs not to be viable, preventing any mitigation. Judge Sammartino stated that a custodial sentence was justified based on the serious impact on the species resulting from the offense.
According to sentencing papers filed with the court, on November 23, 2014, Olga Jimenez boarded a bus in Nayarit, Mexico, in order to travel north to Tijuana. Ms. Jimenez had spent the week visiting family and was traveling with her sister. Ms. Jimenez brought with her a large white cooler containing 911 sea turtle eggs (weighing 61 pounds). The eggs were stored in nine plastic bags, concealed underneath a thin layer of fish and shrimp, and separated from the fish and shrimp by an additional layer of ice.
On November 24, 2014, Olga’s husband, Jose Jimenez, drove from their residence in Hemet, California, to the border and walked across to meet her in Mexico. The defendants met at the bus station in Tijuana and transferred the eggs from Ms. Jimenez’s single white cooler into two smaller red coolers that Mr. Jimenez had brought with him. The couple again covered the eggs with a layer of ice and then a layer of fish and shrimp on top.
Two of the defendants’ sons had traveled to Mexico to meet their aunt and drive her from the bus station in Tijuana to her residence in the Los Angeles area. The defendants asked their son to take the two coolers across the border in his pick-up truck. Their sons agreed after being told that the coolers contained only fish and shrimp, presuming the coolers would be dropped off at their parent’s home in Hemet.
The sons and their aunt attempted to enter the United States in the pick-up truck, while the defendants entered the United States as pedestrians. At the San Ysidro Port of Entry, their son driving declared the fish and shrimp he was told were in the cooler. The border inspectors began searching the cooler and quickly discovered the contraband sea turtle eggs. When confronted with the eggs, all three individuals in the pick-up truck told the officers that they were unaware of the eggs origin or presence.
Olga Jimenez was aware that her children and sister had been sent to secondary inspection because one of her sons had called her as soon as they were stopped. After the sea turtle eggs were discovered, she did not respond to several phone calls and texts from her son.
According to the sentencing papers, Olga Jimenez has sold seafood in the United States in the past. Her clients include a mechanic who told investigators that he has purchased seafood from Ms. Jimenez approximately 20 times and that he usually purchased seafood from her by the kilogram. He also related that she has sold him specialty items such as marlin and scallops.
Olga Jimenez has also been stopped at the border on several other occasions for attempting to bring seafood and protected species into the United States. Customs records indicate that on June 23, 2013, Olga Jimenez entered the United States with five parrots and 5 pounds of ciruelas (a plum not permitted entry due to the potential to contaminate U.S. crops). The ciruelas were concealed under a layer of dried shrimp in a box. The parrots were found to be a species covered by the Convention on International Trade in Endangered Species (CITES) and were seized, along with the cireulas, and Jimenez was assessed an administrative penalty.
On August 27, 2009, Olga Jimenez was returned to Mexico because she was bringing a commercial quantity of food without a commercial declaration. On March 20, 2009, Olga Jimenez was admonished as a recidivist, bringing a commercial quantity of food without a commercial declaration. On March 5, 2009, Olga Jimenez was returned to Mexico for bringing a commercial quantity of fish and shrimp into the United States without a commercial declaration. On May 30, 2008, Olga Jimenez was assessed an administrative penalty as a recidivist for bringing in a commercial quantity of food without a commercial declaration. On October 10, 1999, Olga Jimenez was admonished for bringing in a commercial quantity of fish. On July 24, 1999, Olga Jimenez was assessed an administrative penalty for bringing in a commercial quantity of fish.
The significance of the defendants’ illegal acts is further heightened by the paucity of olive ridley sea turtles in Mexico. According to the National Oceanic and Atmospheric Administration, the Nayarit area currently only has a nesting population of 100 females. The impact of poaching on this small population is more significant than on a large nesting beach, as sea turtles come back to the same nesting beach from which they hatched. The 911 eggs taken by the defendant represent 4.3% of the total egg production for that nesting season at the beach in Nayarit.
Offenses involving eggs have a unique capacity to harm the species. When an egg is destroyed, the defendant removes not only that specific potential animal from the population, but also all potential offspring that could have eventually been borne by that animal and its descendants. According to the statistics from the International Union for the Conservation of Nature and Natural Resources relating to the hatch rate and reproductive rate, the number of third generation offspring lost in this case is greater than the entire nesting population of olive ridley sea turtles in Nayarit.
Olive ridley and sea turtles were initially identified as endangered under the U.S. Endangered Species Act, in 1978, and in 1981, they were placed on Appendix I of the Convention on International Trade in Endangered Species (“CITES”). Both Mexico and the United States are signatories to CITES. It is a violation of law in both countries to trade in olive ridley sea turtles or any part of those sea turtles, including their eggs, without permission from the respective governments.
Olive ridley sea turtles (Lepidochelys olivacea) inhabit a broad range extending in the South Atlantic Ocean from West Africa to South America and in the eastern Pacific Ocean from Southern California to Northern Chile. Adults weigh approximately 100 pounds, and have olive/grayish-green heart-shaped shells measuring 22‑31 inches in diameter.
“The loss of hundreds of endangered sea turtle eggs is immeasurable,” said U.S. Attorney Laura Duffy. “This case is another example of our commitment to prosecuting wildlife traffickers who seek to profit from illegal trade in endangered species here at the border.”
“The U.S. Fish and Wildlife Service Office of Law Enforcement works diligently with our partner agencies at the border to curb the illegal wildlife trade as it indelibly harms a wide variety of endangered species,” said US Fish and Wildlife Service Special Agent in Charge Jill Birchell. “In their unscrupulous quest to reap profits, smugglers of wildlife and wildlife products continue to damage extremely vulnerable species, and are pushing some critically endangered animals and plants on a path toward extinction. Halting the illegal wildlife trade remains one of our highest priorities.”
“Smuggling wildlife of any kind, especially endangered species, is something we take seriously,” said Eileen Sobeck, assistant administrator for NOAA Fisheries. “We will not tolerate violation of federal and international laws regarding the illegal trade of endangered species, and we will continue to take a hard stance in combating wildlife trafficking.”
A further hearing regarding the amount of restitution to be paid to the government of Mexico for the loss of its natural resource is set for Friday, June 10, 2016, at 2:00 p.m.
DEFENDANTS Criminal Case No. 15cr2867-JLS
Olga Jimenez Age: 52
Hemet, California
Jose Jimenez Age: 64
Hemet, California
SUMMARY OF CHARGES
Conspiracy – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and $250,000 fine
Smuggling- Title 18, U.S.C., Section 545
Maximum penalty: Twenty years in prison and $250,000 fine
Importation Contrary to Law- Title 18, U.S.C., Section 545
Maximum penalty: Twenty years in prison and $250,000 fine
Unlawful Trafficking in Wildlife-Title 16, U.S.C. Sections 3372 and 3373
Maximum penalty: Five years in prison and $250,000 fine
Criminal Forfeiture- Title 16, U.S.C., Section 3374
AGENCIES
U.S. Fish and Wildlife Service, Office of Law Enforcement
National Oceanic and Atmospheric Administration, Office of Law Enforcement
Honduran Man Sentenced for Illegal Reentry After DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced that Milson Reyes-Alvarez, of Honduras, was sentenced to time already served since his arrest on February 10, 2016, following his guilty plea to illegally reentering the United States after having been previously deported. Reyes-Alvarez’s plea and sentencing were held the same day under a program used by the United States Attorney’s Office to quickly sentence and deport defendants found in New Hampshire after having been previously deported.
In December of 2015, a Deportation Officer developed information which indicated that Milson Reyes-Alvarez was present in the United States after having been deported on one previous occasion. In order to confirm this information, the Deportation Officer interviewed Reyes-Alvarez on February 10, 2016. The defendant confirmed his true name and that he was illegally present in the United States without any immigration documents. Reyes-Alvarez was then taken into ICE custody. A subsequent fingerprint comparison definitively identified Reyes-Alvarez as having been previously deported.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and prosecuted by Assistant U.S. Attorney Alfred Rubega.
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Henderson Man Sentenced to 68 Months for Being A Felon in Possession of A FirearmRead the Press Release
NEW BERN – The United States Attorney’s Office announced that yesterday in federal court, United States District Judge Louise W. Flanagan sentenced CADARIUS RHASHA CALDWELL, 25, of Henderson to 68 months imprisonment, followed by 3 years of supervised release.
CALDWELL was named in an Indictment filed on December 16, 2015, charging him with being a Felon in Possession of a Firearm and Ammunition. On February 18, 2016, CALDWELL pled guilty to the charge.
On April 16, 2015, an officer with the Oxford Police Department initiated a traffic stop on a vehicle driven by CALDWELL after he failed to stop at a stop sign. CALDWELL told the officer that he did not have a driver’s license. CALDWELL, and a passenger, were removed from the vehicle. A subsequent search of the vehicle yielded an extended magazine underneath the driver’s seat. Officers then located a Glock 9mm handgun on the ground a few feet from the passenger side of the vehicle. The magazine in the car was a match to the firearm outside the car.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Oxford Police Department, the Henderson Police Department, and the Bureau of Alcohol Tobacco Firearms and Explosives. Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.
Great Falls Man Sentenced for Theft from MalmstromRead the Press Release
GREAT FALLS – John Edmonston, 54, of Great Falls, was sentenced yesterday for conspiracy to defraud the United States. Edmonston, a civilian, and at least three other individuals (all enlisted in the United States Air Force) were part of a scheme to take equipment and tools from Malmstrom Air Force Base in Great Falls, Montana. They would either purchase items directly for themselves or they would take items previously purchased. Edmonston was sentenced to five years probation and ordered to pay restitution of $5,523.65 to Malmstrom Air Force Base. U.S. District Court Judge Brian Morris presided over the sentencing.
In documents filed with the Court, the United States Attorney’s Office outlined the proof against Edmonston. Edmonston was the Vehicle Management Flight Chief for the 341st Logistics Readiness Squadron (341 LRS). He is a twenty-year Air Force veteran and served as the chief in this squadron as a civilian. Air Force Office of Special Investigations (OSI) had been contacted by a witness who reported seeing improper purchases using Government Purchase Cards (GPC Cards) or taking items previously purchased with United States Air Force funds. Edmonston was an “approving official” for the GPC cards, therefore, items within the 341 LRS were purchased with his approval and knowledge, even if items purchased with GPC Cards were issued to other individuals within the squadron.
The OSI obtained copies of government emails between Edmonston and other individuals sent between August 2014 and January 2015. The emails revealed the extent of Edmonston’s direction and involvement. For example, Edmonston directed subordinates to purchase improper items with GPCs. In one email, Edmonston instructed a subordinate, in reference to an incoming purchase, this is “[s]tuff to stash in back once it rolls in” and the “[l]east amount of people seeing the better.” In a later email, Edmonston acknowledged mistakenly having the improperly purchased items delivered to the 341 LRS.
Law enforcement conducted a search of Edmonston’s residence in June 2015. Law enforcement seized items previously purchased with United States Air Force funds. A subsequent search of a co-conspirator’s residence also led to the discovery of improperly purchased items.
This case was investigated by Homeland Security Investigations and Air Force Office of Special Investigations and prosecuted by the United States Attorney’s Office.
Granite City Man Sentenced for Methamphetamine OffenseRead the Press Release
The Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today that Arthur C. Hawkes, 45, of Granite City, Illinois, was sentenced in U.S. District Court on May 6, 2016 to a term of 36 months in federal prison for Possession With Intent to Distribute Methamphetamine.
Hawkes pled guilty to the federal charge on January 29, 2016. He has been continuously confined in federal custody since May, 2015.
At his change of plea hearing, Hawkes admitted that he had possessed two ounces of methamphetamine on April 19, 2015 in Granite City. Police discovered the methamphetamine in Hawkes’ pants while he was being booked for multiple traffic violations. Hawkes also admitted that he had intended to sell the methamphetamine which he possessed, which had a street value of $1,000.00, in the Granite City area.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations.
The investigation which resulted in Hawkes’ arrest and conviction was conducted by the Granite City Police Department and by the U.S. Drug Enforcement Administration (DEA).
The case was assigned to Assistant United States Attorney Robert L. Garrison.
Former Twin Peaks Manager Sentenced to 25 Years in Prison for Attempted Enticement of a Minor and Production of Child PornographyRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, Special Agent in Charge Diane Upchurch, of the Little Rock Field Office for the Federal Bureau of Investigations (FBI), and Pulaski County Sheriff Doc Holladay announced today that Larry Wayne Wilder, age 28, of Maumelle, Arkansas, was sentenced to 25 years imprisonment for attempted enticement of a minor to engage in a sex act and production of child pornography.
A superseding information charged Wilder with one count of attempted enticement of a minor to engage in sexual activity and one count of production of child pornography. On Friday, Wilder pleaded guilty to the superseding information, and pursuant to the plea agreement the United States and Wilder agreed to recommend a sentence of 25 years imprisonment. Chief United States District Judge Brian S. Miller sentenced Wilder to 120 months for the attempted enticement of a minor and 180 months for the production of child pornography, to run consecutive for a total of 300 months or 25 years imprisonment, and 20 years of supervised release.
"Today’s case continues to show the dark side of the internet and the ease with which adults can prey on young children," Thyer said. "What is particularly disturbing in this case is the predator acted not just on the internet, but made contact with victims in real life. Thankfully, today’s lengthy prison sentence will put an end to his heinous criminal activity. Unfortunately, there are others like him still out there, and parents must always be vigilant in monitoring their children’s social media usage and should remind their children that they never know who is on the other end of the computer."
The charges in the superseding information were based on an investigation that began in August 2015, when the FBI received a tip from the National Center for Missing and Exploited Children (NCMEC) that an adult male was having inappropriate communications with two minors using social media. Members of the Pulaski County Sheriff’s Office and the FBI then conducted an online takeover of one of the minor’s social media accounts. During the course of conversations between Wilder and an undercover officer, Wilder arranged to meet the undercover officer at a local park for the purpose of having sex. Wilder was arrested when he arrived at the park.
During a subsequent interview, Wilder admitted to lying about his age on social media and pretending to be a minor because it was easier to talk with minors the same age. Wilder admitted to meeting boys and girls under the age of 18 years old with the intent to have sex, and he could not recall how many minors he had met for sex. Wilder admitted to paying minors money for sexual acts. Wilder also admitted to having child pornography on his phone, which he gave officers consent to search.
A search of his cellular telephone revealed 140 videos and 2,600 images of child pornography. The search of his cellular telephone also revealed multiple conversations in which he was asking minors to send him sexually explicit pictures. Specifically, Wilder had a conversation with one minor during which he asked the minor to send him photographs of the minor’s genitals. The minor sent the pictures, and Wilder then asked the minor to send additional sexually explicit pictures. When the minor refused the second request, Wilder told the minor that he was going to post the minor’s pictures on the internet.
"Today’s sentence demonstrates the resolve of law enforcement to apprehend dangerous sex offenders who take advantage of our most precious resource, our children," Special Agent in Charge Upchurch said. "Along with our partners at the Pulaski County Sheriff’s Office and the United States Attorney’s Office, we will continue to take steps to ensure that individuals such as Wilder pay for their deplorable actions."
The investigation was conducted by the Little Rock Office of the Federal Bureau of Investigations and the Pulaski County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Kristin Bryant.
Former Office Manager of Baton Rouge Surgery Group Convicted of Wire FraudRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that LORRIE LYNN ROGERSON, age 57, of Baton Rouge, Louisiana, has pled guilty before U.S. District Judge John W. deGravelles to engaging in a wire fraud scheme to defraud the Pediatric Surgery of Louisiana (“PSL”), a group of Baton Rouge physicians who specialize in surgery on children. As a result of the scheme, Rogerson embezzled approximately $430,490 from PSL. The sentencing date has not yet been set.
PSL employed Rogerson to act as their office manager. Rogerson was responsible for PSL’s payroll, accounts receivable, accounts payable, and human resources. In her role, Rogerson enjoyed access to the bank accounts of PSL for the purpose of making deposits to, and paying bills from, the PSL bank account. Rogerson was entrusted with the authority and responsibility to manage PSL’s banking affairs. Rogerson had access to all accounts and was familiar with PSL’s account information.
In April 2015, a review of PSL financial records discovered that Rogerson had accessed PSL’s bank account to make unauthorized withdrawals and transfers for her personal benefit. Between May 2008 and May 2015, Rogerson caused unauthorized electronic withdrawals to be made from the PSL bank account for the purpose of paying Rogerson’s credit cards. Rogerson also issued numerous, unauthorized PSL checks for her benefit, and mischaracterized said checks in the accounting software as business expenses.
Rogerson embezzled funds on approximately 256 occasions during the period of May 2008 and May 2015. In order to execute the scheme to defraud on January 5, 2015, Rogerson used internet services to divert funds from a PSL bank account for the purpose of paying her personal credit card bills.
U.S. Attorney Green stated: “Insider fraud continues to be one of the biggest threats facing our business community. Together with the FBI and our other federal, state, and local partners, we will continue to aggressively meet and pursue this threat through federal criminal investigations and prosecutions. We commend the victim, PSL, for its cooperation and assistance in this matter.”
FBI Special Agent-In-Charge Jeffrey S. Sallet stated: “This case is yet another example of the FBI’s commitment to work with our partners at the United States Attorney’s Office to investigate and prosecute individuals who willingly violate the law in order to personally enrich themselves at the expense of others.”
This matter is being prosecuted by the United States Attorney’s Office for the Middle District of Louisiana. The investigation has been conducted by the Baton Rouge Resident Office of the Federal Bureau of Investigation, with substantial assistance provided by the victim, PSL and their accountants. The matter is being prosecuted by Assistant United States Attorney René Salomon.
Former Methuen Resident Pleads Guilty to Drug TraffickingRead the Press Release
CONCORD – United States Attorney Emily Gray Rice announced that Justin Bartimus, 35, formerly of Methuen, Massachusetts, pleaded guilty on May 4, 2016 to: (1) conspiracy to distribute, and possess with intent to distribute, oxycodone and cocaine and (2) distribution of oxycodone. Bartimus appeared before United States District Court Judge Steven J. McAuliffe to enter his guilty plea.
According to documents that were filed in United States District Court and statements in the plea proceeding, Bartimus admitted that he sold oxycodone to a cooperating individual in Haverhill and Methuen, Massachusetts and in Salem, New Hampshire. He also admitted that he participated in the distribution of cocaine and oxycodone with others individuals.
A sentencing hearing has been scheduled for August 30, 2016.
Bartimus is one of six individuals indicted by a federal grand jury on September 23, 2015, and charged with conspiracy to distribute, and possession of controlled substances with intent to distribute. The other defendants are: Mara Morillo, 40, of Haverhill, Massachusetts, Franklyn Morillo, 41, of Haverhill, Massachusetts, Juan Rojas, 31, of Haverhill, Massachusetts, Jorge Medina, 25, of Haverhill, Massachusetts, and Michael Lally, 28, of Salem, New Hampshire.
In addition to the above charges, Rojas also was charged with possession of a firearm in furtherance of a drug trafficking crime. Rojas is further charged with conspiracy to possess a firearm in furtherance of a crime of violence in a separate indictment. Lally pleaded guilty on March 22, 2016. His sentencing is scheduled for June 29, 2016. The remaining defendants in the drug conspiracy case are scheduled for trial on September 20, 2016.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The Drug Enforcement Administration’s Tactical Diversion Squad led the investigation with assistance from the Haverhill, Massachusetts Police Department. It is being prosecuted by Assistant United States Attorney John J. Farley.
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Former Marine Corps Contracting Officer Sentenced to 37 Months for ConspiracyRead the Press Release
NEW BERN – The United States Attorney’s Office announced that today in Federal court, United States District Judge Louise W. Flanagan sentenced DAVID G. LIU, 41, of Monterey, California to 37 months imprisonment, followed by 3 years of supervised release.
LIU was named in a Criminal Information filed on November 30, 2015, charging him with Conspiracy to Violate the Procurement Integrity Act. On January 13, 2016, LIU pled guilty to the charge.
John F. Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service (DCIS), stated, "Mr. Liu abandoned his obligations in a position of trust with the U.S. Marine Corps and undermined the integrity of the Federal procurement process. DCIS, in concert with our law enforcement partners, will use all available law enforcement resources to bring violators to justice to combat fraud and corruption affecting Defense programs."
"David Liu put personal profit ahead of his responsibilities to Department of the Navy and the country. NCIS will continue to assertively investigate fraud, to ensure our warfighters have every resource rightfully entitled to them and to hold accountable those who perpetrate economic crime." said Acting Special Agent in Charge Todd Battaglia, NCIS Carolinas Field Office.
Acting U.S. Attorney John Stuart Bruce remarked, “It’s disappointing that Captain David Liu abused the trust placed in him and put personal profit ahead of his duty to his country. This prosecution was the product of great work by the NCIS, DCIS, and FBI.”
During the offense period, LIU was a captain in the Marine Corps posted to the Combined Joint Task Force-Horn of Africa (CJTF-HOA) in Djibouti, Africa. As a contracting officer, LIU was entrusted to evaluate bid proposals from potential suppliers and to award government contracts that were the most appropriate and advantageous for the needs of CJTF-HOA.
A Federal investigation into LIU’s activities revealed that from September 2012 until January 2013, LIU and two government contractors conspired to exchange and use protected procurement information of competitors for the purpose of mounting successful bids for a $495,000 Blanket Purchase Agreement (BPA). The BPA was established by the United States Navy for the procurement of multimedia services in Somalia.
The investigation revealed that LIU was closely associated with the contractors and sought to abuse his position of trust as a Marine Corps contracting officer for his and their personal gain. In furtherance of the conspiracy, LIU unlawfully provided the contractors with protected bid information submitted by competing firms that were actively seeking BPA awards. The contractors, in turn, used the stolen bid information to craft their own proposals and undercut the competitors’ pricing and other terms. After all the bids were submitted to CJTF-HOA and were pending LIU’s evaluation, LIU solicited his co-conspirators to assist him in paying down a debt he owed to a supplier on an unrelated and unauthorized “side deal” for two government vehicles. The scheme included LIU’s creation of a sham government contract for the vehicles worth $28,000, the awarding of the contract to the Ugandan contractor, and the diversion of the resulting government funds back to LIU through a complex series of pre-ordained international wires and withdrawals.
The government contractors with whom LIU conspired were based in Jacksonville, North Carolina, and Kampala, Uganda, respectively. Contractor Monroe Allen Stueber, Jr. pled guilty to one count of unlawfully obtaining procurement information on October 15, 2015 and was sentenced to 3 years of probation on February 23, 2016.
Investigation of this case was conducted by the Naval Criminal Investigative Service (NCIS) and Defense Criminal Investigative Service (DCIS), with the assistance of the Federal Bureau of Investigation. Assistant United States Attorney Adam F. Hulbig prosecuted the case for the government.
Former Las Vegas Resident Pleads Not Guilty to Felony Tax CrimesRead the Press Release
LAS VEGAS, Nev. – A former Las Vegas resident pleaded not guilty today to felony tax evasion crimes that occurred over a 10-year-period, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Craig Orrock, 68, currently of Sandy, Utah, appeared before U.S. Magistrate Judge Nancy Koppe in Las Vegas following his arrest in Salt Lake City on April 28, 2016. Orrock is charged in a criminal indictment with one count of attempting to evade the payment of tax, one count of attempting to evade the assessment of tax, and one count of attempts to interfere with the administration of IRS laws. If convicted, Orrock faces up to five years in prison on the first two counts and up to three years in prison on the third count, as well as fines of up to $250,000 on all counts.
The indictment alleges that beginning on about April 15, 2001, and continuing to at least April 23, 2010, in Nevada, Orrock willfully attempted to evade and defeat the payment of a large part of the income tax due and owing by him to the United States for the calendar years 2000 through 2006. Orrock allegedly did so by filing false and fraudulent bankruptcy petitions, false and fraudulent amended tax returns, and a false and fraudulent offer in compromise with the IRS, and by placing funds and property in the names of nominees and concealing from the IRS the nature and extent of his assets.
The indictment also alleges that Orrock willfully attempted to evade and defeat the assessment of a large part of the income tax due and owing by him to the United States for the calendar year 2007, by concealing from the IRS both ownership of property he held through a nominee known as Arville Properties, LLC and the proceeds from the sale of such property.
The case is being investigated by the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Patrick Burns.
An indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Former Lafayette postal employee pleads guilty to stealing gift cardsRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Lafayette woman pleaded guilty Thursday to stealing gift cards from envelopes while working as a postal employee.
Tonia R. Moore-Parker, 36, of Lafayette, pleaded guilty before U.S. Magistrate Judge Patrick Hanna to one count of theft of mail matter by a postal service employee. The plea will become final when accepted by U.S. District Judge Donald E. Walter. According to the guilty plea, Moore-Parker worked as a U.S. Postal Service employee from October 8 to October 31, 2015 and was entrusted with mail matter. During that time, she opened five envelopes and stole gift cards worth $150.
Moore-Parker faces five years in prison, three years supervised release, a $250,000 fine and restitution. A sentencing date was not set.
The U.S. Postal Service Office of Inspector General investigated the case. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Former IT Administrator Faces Federal Charges of Hacking into Computers of Prior Employer, an Irvine-based CompanyRead the Press Release
SANTA ANA, California – A former Garden Grove resident pleaded not guilty this afternoon to federal charges of hacking into the computer system of Blue Stone Strategy Group – an Irvine-based company and the man’s former employer – and deleting files.
Nikishna Polequaptewa, 34, who currently resides in Polacca, Arizona, was arrested this morning after surrendering to federal authorities. At his arraignment this afternoon, he entered a not guilty plea, was ordered released on a $25,000 bond and was ordered to stand trial on June 28.
Polequaptewa was indicted by a federal grand jury in March on one count of unauthorized impairment of a protected computer.
“IT administrators often hold the ‘keys to the kingdom’ for companies,” said United States Attorney Eileen M. Decker. “Disgruntled IT administrators can therefore pose a grave threat to businesses, which must take measures to protect themselves when letting such an employee go.”
According to the indictment, Blue Stone provided consulting services to Native American tribal governments throughout the United States. Polequaptewa was responsible for information technology at Blue Stone until November 2014, when he was relieved of his duties, which led to his resignation. Immediately following his resignation, Polequaptewa repeatedly accessed the Blue Stone internal server, a desktop computer, and remote accounts held by Blue Stone, and allegedly deleted various files belonging to the company.
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.
The computer hacking charge in the indictment carries a statutory maximum penalty of 20 years in federal prison.
The investigation into Polequaptewa was conducted by the Federal Bureau of Investigation.
Former Bank Manager Sentenced to Prison Term for EmbezzlementRead the Press Release
PHILADELPHIA - Fernando Sanchez, 42, of Lancaster, Pennsylvania, was sentenced on April 29, 2016 to 15 months of in prison for embezzling approximately $99,106 from a bank in Lancaster where he was employed as a manager. In addition to the prison term, U.S. District Court Judge Edward G. Smith ordered 24 months of supervised release and a $300 special assessment.
Sanchez perpetrated the thefts by making a series of electronic wire transfers to another financial institution where he maintained an account without the knowledge or approval of the account holder. Sanchez used a portion of the money that he had embezzled from his employer’s bank client, to pay personal expenses, such as credit card bills, and to give money to his relatives. After the wire fraud was discovered and Sanchez was confronted with evidence of his crimes, Sanchez repaid the money that he had stolen and admitted his guilt.
The case was investigated by Federal Bureau of Investigation and was prosecuted by Assistant United States Attorneys Laurie Magid and Floyd J. Miller.
Federal Jury Convicts Leader of Violent Robbery Crew That Targeted Cell Phone Stores in Chicago SuburbsRead the Press Release
CHICAGO — A Park Forest man has been convicted in federal court of leading a crew of armed robbers that targeted cellular telephone stores in the Chicago suburbs.
ERIC CURTIS recruited several individuals to join the crew and armed them with firearms to carry out the robberies. The crew stole hundreds of cell phones while terrorizing store employees and customers at gunpoint. After the robberies, Curtis helped sell the phones and divided the profits among the thieves.
The robberies occurred in 2013 in cell phone stores in the Chicago suburbs of Addison, Norridge, Deerfield and Woodridge.
After a nearly two-week trial in federal court in Chicago, the jury yesterday convicted Curtis, 31, on one count of conspiracy to commit robbery, three counts of robbery, one count of being a felon in possession of a firearm, and three counts of using a firearm in a crime of violence. The conviction is punishable by a mandatory minimum sentence of 57 years in a prison, and a maximum sentence of life in prison.
U.S. District Judge Charles P. Kocoras scheduled a sentencing hearing for Aug. 4, 2016, at 9:45 a.m.
Evidence at trial revealed that Curtis’ crew conducted takeover-style robberies. Crew members would enter a store, brandish firearms and order employees and customers to the back of the store. The robbers would take as many cell phones as they could stuff into their duffel bags.
Seven other members of the crew previously pleaded guilty and are awaiting sentencing. The prior convictions include another top leader, ERIC ROGERS of Hazel Crest. Rogers admitted in a plea agreement that the crew also robbed cell phone stores in Joliet and downstate East Peoria, as well as a store in La Porte, Ind.
Curtis’ conviction was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation. The police departments from Woodridge, Deerfield, Joliet, Norridge and East Peoria provided substantial assistance in the investigation.
The government is represented by Assistant United States Attorneys Christopher V. Parente and Allison A. Ray.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.— The results of the May 2016 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Jose Samuel Garcia-Discua. Reentry of Removed Alien. Garcia-Discua, 40, is charged with having returned to the United States unlawfully after being deported in May 2011 from Houston, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Jeffrey Patterson Grass. Bank Theft and Possession of and Uttering a Forged Security. Grass, 40, of Locust Grove, is charged with stealing approximately $50,000 from Arvest Bank in August 2015. In addition, he is charged with two counts of possession of and uttering forged checks at People’s Bank. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Federal Bureau of Investigation is handling the investigation.
Isidro Herrera-Elvira. Reentry of Removed Alien. Herrera-Elvira, 49, is charged with having returned to the United States unlawfully after being deported in February 1989 from San Ysidro, California. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Henry Bruce Horn. Felon in Possession of a Firearm. Horn, 37, of Tulsa, is charged with possession of a 9mm caliber pistol after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Bixby Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigating agencies.
Terry Allen Kapple. Theft of Mail. Kapple, 59, of Tulsa, is charged with stealing mail including a greeting card and money contained in letters. If convicted, the statutory maximum penalty is five years in prison and a $250,000 fine or twice the pecuniary gain caused by the defendant’s acts. The U.S. Postal Service, Office of Inspector General is the investigating agency.
Joel Adam Thomas. Felon in Possession of a Firearm. Thomas, 33, of Tulsa, is charged with possession of a .40 S&W caliber pistol after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
Dustin Ernest Thompson. Felon in Possession of a Firearm and Ammunition. Thompson, 35, of Tulsa, is charged with possession of a .38 caliber Derringer pistol and ammunition after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
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Eugene Con Man Sentenced in $1.4 Million Fraud SchemeRead the Press Release
PORTLAND, Ore. – Yesterday, U.S. District Court Judge Anna J. Brown sentenced Jack Holden, 76, of Eugene, Oregon, to 87 months in prison, restitution of $1,410,760, and a special assessment of $1,500 for his role in a fraudulent biodiesel scheme that spanned three continents. Holden was convicted of conspiracy to commit mail and wire fraud, conspiracy to commit money laundering, mail and wire fraud, and money laundering, after a three-week federal trial in October 2015. His codefendant, Lloyd Benton Sharp, aka Kevin Thomas, 81, pled guilty to conspiracy to commit mail and wire fraud in November 19, 2014, and was sentenced to 60 months in prison on April 17, 2015.
Between July 2007 and September 2013, Holden and coconspirator Sharp conspired to defraud 12 investors in a project to produce biodiesel fuel in the West African nation of Ghana. When the investment project failed, Holden and Sharp continued to defraud the same investors by soliciting additional funds for a non-existent project to transport biodiesel fuel from Argentina to Chile, and to build biodiesel refineries in Chile. Holden and Sharp targeted a Christian men’s group in West Linn, Oregon as part of the fraud scheme.
Holden and Sharp falsely told investors that $350,000 was needed to set up a biodiesel plant in Ghana, purchase feedstock for the plant, and bring in an engineer to oversee the operation. They falsely promised that the Ghana refinery would be up and running within two months of receiving the investment funds. Holden and Sharp falsely told investors that if they each made a $50,000 investment, they would each receive a return of $7,000 per month for an indefinite period of time as soon as the biodiesel refinery was operational. They also told victims that their investments would help fund humanitarian projects, like building roads and schools in the poor nation of Ghana. Investors were promised that they could get 100% of their money back at any time. The victims in this case sent investment funds to Holden and Sharp via mail or interstate wire transfers. Rather than using the investment funds to produce and sell biodiesel fuel in Ghana as promised, Holden and Sharp spent the money on their personal expenses.
When investors inquired of Holden and Sharp why the Ghana refinery was not operating, the two claimed they had a more promising investment opportunity in Chile, and that a successful investment in Chile would provide sufficient funds to get the Ghana refinery operational. Holden and Sharp solicited and received additional funds from investors for the Chile projects by falsely promising that for $100,000 they would double their investment and receive a return of funds within 120 days. After the Chile investments were made, Holden and Sharp stole the money, and again used it for their personal benefit.
Between the Ghana and Chile projects, 12 investors lost approximately $1.47 million.
U.S. Attorney Billy J. Williams said, “Individuals who use deception to bilk investors out of their hard-earned money in fraud schemes such as this will be prosecuted to the full extent of the law. We are grateful to the U.S. Postal Inspection Service and the Oregon Division of Financial Regulation for their vigilance in prosecuting this case and in protecting the public from fraud.”
Tony Galetti, Inspector in Charge, Seattle Division, U.S. Postal Inspection Service stated, “The U.S. Postal Inspection Service makes consumer fraud investigations one of our top priorities. The cooperation between the Oregon Division of Financial Regulation, the U.S. Attorney’s Office, and the U.S. Postal Inspection Service in the prosecution of Holden and Sharp resulted in a great victory for Oregon consumers. The fraud perpetrated by the defendants in this case is the worst kind of fraud, in that they exploited the trust of innocent victims, in some cases stealing life savings. The U.S. Postal Inspection Service continues, in collaboration with our regulatory and law enforcement partners, to tirelessly identify and root out consumer fraud involving the U.S. Mail which affects the American public.”
The case was investigated by the U.S. Postal Inspection Service and the Oregon Division of Financial Regulation (formerly DFCS). Assistant U.S. Attorneys Claire M. Fay and Donna B. Maddux prosecuted the case.
El Salvadoran Man Sentenced for Illegal Reentry After DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced today that Jose Ever Portillo-Batres, 27, of El Salvador, was sentenced to time already served since his arrest on February 15, 2016, following his guilty plea to illegally reentering the United States after having been previously deported. Portillo-Batres’ plea and sentencing were held the same day under a program used by the United States Attorney’s Office to quickly sentence and deport defendants found in New Hampshire who were previously deported.
On February 15, 2016, an ICE-ERO Deportation Officer received a duty call from a New Hampshire State Police Trooper who stated that that he had stopped a vehicle for speeding on I-93. The vehicle was occupied by five individuals, three of whom refused to provide identification or answer the Trooper’s questions. Two ICE-ERO officers provided assistance and were able to identify the defendant through fingerprint comparisons as having been previously deported on two occasions in March and May 2011. Portillo-Batres was taken into custody by the ICE-ERO officers and, in a search incident to arrest, was found to be in possession of a valid El Salvadoran identification card bearing his true name, date of birth and photograph.
Portillo-Batres will be deported to El Salvador.
The case was investigated by the New Hampshire State Police and the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement. It was prosecuted by Assistant U.S. Attorney Alfred Rubega.
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Driver Sentenced to 15 Years in Prison for Second Degree Murder of Passenger in Great Smoky Mountains National Park Car CrashRead the Press Release
KNOXVILLE, Tenn. – On May 6, 2016, Corey Bruce Patrick, 35, of Camden, Tenn., was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 15 years in federal prison for second degree murder for a car wreck that resulted in the death of Heather Nicole Hendrix.
Upon his release from prison, Patrick will be supervised by the U.S. Probation Office for five years. He was also ordered to pay restitution to the victim’s family in the amount of $15,989.77 for funeral and burial related expenses and the value of Hendrix’s car.
In April 2015, Patrick pleaded guilty to the offense described above. According to documents on file with U.S. District Court, in October 2014, after drinking alcohol and using drugs, Patrick crashed the victim’s car while driving at a high rate of speed within the Great Smoky Mountains National Park. One minute before the crash, Hendrix sent a text message that Patrick was “driving fast and crazy.” Patrick’s blood alcohol level was .193, more than twice the legal limit in Tennessee. At the time of the crash, Hendrix, the only passenger, suffered multiple blunt force injuries causing her to die at age 37. Hendrix was survived in death by her mother, three children, and a grandson, who was born two weeks after her death.
The case was investigated by the National Park Service. Assistant U.S. Attorney Brooklyn Sawyers represented the United States.
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Derby Man Pleads Guilty to Federal Heroin Distribution ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that BRADLEY COMMERFORD, 20, of Derby, waived his right to indictment and pleaded guilty today in New Haven federal court to one count of distribution of heroin to an individual who is under 21 years of age.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, the DEA’s New Haven Tactical Diversion Squad, Derby Police Department and Shelton Police Department have been investigating two non-fatal heroin overdoses that occurred in Shelton on February 16, 2016, and one fatal overdose that occurred in Derby on February 17, 2016. The Derby overdose resulted in the death of a 23-year-old male. The Shelton overdoses involved one individual who was 18 and another who was 22.
The investigation, which includes victim and witness interviews, as well as analysis of numerous text messages of the decedent’s phone, identified COMMERFORD as the heroin source of supply in all three overdose cases. The investigation also revealed that COMMERFORD sold heroin to a 16-year-old individual who did not overdose.
The charge of distribution of heroin to an individual who is under 21 years of age carries a mandatory minimum term of imprisonment of one year, a maximum term of imprisonment of 40 years, a term of supervised release of no less than six years, and a fine of up to $2 million.
COMMERFORD is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on July 28, 2016. He has been detained since his arrest on related state charges on February 18, 2016.
The DEA’s New Haven Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon and Wilton Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
Defense Contractor Agrees to Pay $2.1 Million to Resolve Allegations of False Claims and OverchargesRead the Press Release
PHILADELPHIA – The United States has reached a settlement agreement with Hesco Bastion Limited (Hesco), based in Leeds, England, in which the company has agreed to pay $2.1 million to resolve allegations of false claims and overcharges, announced United States Attorney Zane David Memeger. The allegations stem from the international transportation of blast walls that Hesco manufactured and sold to the U.S. government. Hesco is a privately held company.
Hesco contracted with the Department of Defense to provide blast walls, also known as Concertainer Units, and to ship them from England to a U.S. military base in Germany. The government and Hesco agreed that the price for the transportation of the Concertainer Units would not exceed £650 per truckload of Concertainer Units. From 2002 until 2011, Hesco transported the Concertainer Units using a third-party freight forwarder. During that period, Hesco charged the government a fixed price of £650 per truckload, while paying its transportation subcontractor less than £650 per truckload, which the government contends violated the parties’ contracts.
In 2009, the government requested that Hesco provide documentation concerning the amount Hesco had been paying its transportation subcontractor for the transportation of the Concertainer Units. In response, the government alleged, Hesco knowingly provided the government false information concerning the amount that Hesco had been paying to its transportation subcontractor. The government further alleged that Hesco also knowingly misled the government by submitting 47 false invoices that were made to appear to be authentic invoices from the transportation subcontractor, and that Hesco engaged in a kickback scheme by which it received undisclosed off-invoice credits from its transportation subcontractor. The government contends that the submission of false invoices and the kickback scheme violated the False Claims Act.
The investigation was conducted by the Defense Criminal Investigative Service and the Defense Contract Audit Agency. The case was prosecuted by Assistant United States Attorneys Joel M. Sweet and Colin M. Cherico.
The claims resolved by this settlement are allegations only; there has been no determination of liability.
Dallas County Man Sentenced to 90 Years in Federal Prison for Producing Child PornographyRead the Press Release
DALLAS — A Hutchins, Texas, man, Servando Vega Cervantes, 25, was sentenced yesterday afternoon by U.S. District Judge Jane J. Boyle to 90 years in federal prison, following his guilty plea in February 2015 to an indictment charging three counts of production of child pornography involving four victims, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, the Hutchins Police Department contacted the FBI in May 2014 regarding questionable online communication between an 11-year-old victim, “John Doe #1,” and the Facebook user profile of “Laura Ortiz.” The victim’s mother believed the user of the Ortiz profile was actually an adult male and not a 13-year-old female as described in chat conversations between John Doe #1 and Ortiz. The investigation revealed that the user profile “Laura Ortiz” belonged to Cervantes. The investigation also revealed that John Doe #1 knew Cervantes as “Jordan,” an alias Cervantes used.
According to the factual resume filed in the case and testimony presented at today’s sentencing hearing, Cervantes enticed 11-year-old John Doe #1 to engage in sexually explicit conduct, and Cervantes took photos of that conduct. Cervantes enticed another minor, under the age of 14, John Doe #2, to engage in sexually explicit conduct and Cervantes also took photos of that conduct. Cervantes also asked John Doe #2 to send sexually explicit photos to “Laura Ortiz.” John Doe #3, a 15-year-old boy, sent sexually explicit photos to Cervantes, upon Cervantes’ repeated requests. Cervantes also had sexually explicit photos of another prepubescent boy, John Doe #4, whom he met on Facebook, on a thumb drive.
Cervantes had sexual contact with two of the four victim John Does.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
The FBI’s Dallas Child Exploitation Task Force and the Hutchins Police Department investigated the case. Assistant U.S. Attorney Camille Sparks was in charge of the prosecution.
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Childcare Worker Charged in Child Pornography InvestigationRead the Press Release
A childcare worker was arrested today and charged by criminal complaint with possession of child pornography, announced U.S. Attorney Annette L. Hayes. KYLE J. TATE, 34, of Seattle was arrested this morning following the execution of a search warrant at his home. TATE made his initial appearance in U.S. District Court in Seattle and was ordered detained pending a hearing next week.
According to records filed in the case, TATE came to the attention of law enforcement earlier this week, when another individual implicated him in the collection and sharing of child pornography. Due to TATE’s employment in childcare, investigators moved quickly to get a warrant to search his home and digital devices. An initial review of those devices revealed images of child pornography. At the time of his arrest TATE worked at the Hutch Kids Childcare Center. According to the investigation to date, TATE previously worked at other childcare programs in the Seattle area and as a music tutor. Law enforcement is working to identify these previous employers and provide them appropriate information.
U.S. Immigration and Custom’s Enforcement’s Homeland Security Investigations (HSI) is leading the investigation and asks that anyone with relevant information or concerns email their contact information to [email protected].
“I commend HSI and the Seattle Police Department for their investigative work that led to the arrest of this defendant,” said U.S. Attorney Annette L. Hayes. “Their efforts are essential to public safety in our communities and especially to protecting our children.”
“We’re still in the very preliminary stages of this investigation, but obviously a top priority in all cases involving alleged online child exploitation is identifying any possible minor victims,” said Brad Bench, special agent in charge for HSI Seattle. “We encourage parents who have questions or concerns regarding this investigation to contact the email that’s been established expressly for that purpose. HSI special agents will be monitoring that inbox closely and will respond promptly to all inquiries.”
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Seattle Police Department’s Internet Crimes Against Children Task Force (ICAC) is providing substantial assistance with this investigation.
The case is being prosecuted by Assistant U. S. Attorney Matthew Hampton and Special Assistant U. S. Attorney Cecelia Gregson. Ms. Gregson is a Senior Deputy King County Prosecutor specially designated to prosecute child exploitation cases in federal court.
Charges Filed in Belarus as Part of an International Investigation into the Bugat BotnetRead the Press Release
PITTSBURGH – Two Belarus citizens have been charged in Belarus for participating in an international criminal conspiracy that used the botnet known as “Bugat” to steal banking and other credentials from infected computers, David J. Hickton, U.S. Attorney for the Western District of Pennsylvania and Special Agent in Charge Scott S. Smith of the Federal Bureau of Investigation’s Pittsburgh Division announced today.
Aleskey Semeonovich Yaroshevich, 34, and Egor Nikolayevich Pavlenko, 41, both of Minsk, Belarus, are being investigated by the FBI as part of an international crime group responsible for the theft of money on the Internet and the distribution of malware programs. Yaroshevich and Pavlenko are in police custody.
An indictment returned in the Western District of Pennsylvania in August 2015 alleged that conspirators used the Bugat malware to steal banking credentials and then, using the stolen credentials, to initiate fraudulent electronic funds transfers of millions of dollars from the victims’ bank accounts into the accounts of money mules, who further transferred the stolen funds to other members of the conspiracy. The indictment detailed two electronic fund transfers from bank accounts held by Penneco Oil, based in Westmoreland County. According to the indictment, the conspirators caused the international transfer on Sept. 4, 2012, of $1,350,000 from a Penneco Oil account at First Commonwealth Bank to an account in Minsk, Belarus. Yaroshevich and Pavlenko are believed to be the recipients of that $1.35 million wire transfer.
“Chasing cyber criminals requires innovation, determination and international cooperation,” stated U.S Attorney Hickton. “As these arrests demonstrate, we will pursue participants in criminal organizations over borders and around the world to ensure they are held accountable.”
“We recognize and appreciate the willingness and efforts of our Belarusian law enforcement partners to investigate and prosecute this matter,” said FBI Special Agent in Charge Smith. “It is only through extensive international cooperation such as this, that we can ensure there is no safe haven for Cyber criminals.”
The Investigative Committee of the Republic of Belarus, Ministry of Internal Affairs and the Belarus Attorney General’s Office have posted a release in Russian detailing the Belarusian charges. The link to the press release is: http://sk.gov.by/ru/news-ru/view/sledstvennyj-komitet-belarusi-osuschestvljaet-sovmetsnuju-operatsiju-s-fbr-2588/
Caseville Woman Pleads Guilty to Armed Robbery of Convenience StoreRead the Press Release
On May 6, 2016, Jenna M. McGlasson, a twenty-eight year old Caseyville, Illinois, woman pled guilty in federal district court to an Indictment charging her with Interference with Commerce by Robbery and Brandishing a Firearm During a Crime of Violence, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. McGlasson is scheduled for sentencing on September 2, 2016, at which time she faces a potential sentence of seven years to life imprisonment, up to 5 years’ of supervised release after her prison term, a $250,000 fine, and a mandatory special assessment of $100 for each count.
Court proceedings revealed that on June 25, 2015, McGlasson entered a convenience store in Caseyville, Illinois, with a dark hoodie covering her head, pointed a pistol at a store employee, and demanded the money of the employee. McGlasson then jumped onto the counter, accessed the store’s cash register, and attempted to steal United States currency belonging to the store.
This case was investigated by the Federal Bureau of Investigation and is assigned to Assistant United States Attorney Daniel T. Kapsak for prosecution.
Caldwell Man Sentenced to 87 Months in Prison for Methamphetamine DistributionRead the Press Release
BOISE - Cody Nigel Seitz, 28, of Caldwell, Idaho, was sentenced yesterday in United States District Court to 87 months in prison for conspiracy to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Seitz to serve four years of supervised release and to forfeit $7,600 in drug proceeds. Seitz pleaded guilty on January 5, 2016.
According to evidence presented in court, Seitz, who was living in Caldwell, Idaho, conspired to distribute methamphetamine in the state of Idaho between April 16, 2015, and August 28, 2015. The defendant and his co-conspirators arranged for five separate deliveries of methamphetamine before they were apprehended.
Co-defendant, Michael Andres Menica, 47, of Caldwell, Idaho, was sentenced on March 22, 2016, to 77 months in prison for his role in the conspiracy. Judge Lodge also ordered Menica to serve four years of supervised release and to forfeit $7,600 in drug proceeds. Menica pleaded guilty on December 10, 2015.
The case was investigated by the Drug Enforcement Administration, Ada County Sheriff’s Office, and City County Narcotics Unit in Canyon County, Idaho.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
Bay Area and Nevada Residents Charged with Visa Fraud Conspiracy, Mail Fraud, Witness Tampering, and Related CrimesRead the Press Release
SAN JOSE – Sunitha Guntipally, Venkat Guntipally, Pratap “Bob” Kondamoori, and Sandhya Ramireddi were charged with conspiracy to commit visa fraud, use of false documents, and mail fraud, among other offenses, announced United States Attorney Brian J. Stretch, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan Spradlin, and U.S. State Department, Diplomatic Security Service, San Francisco Field Office Special Agent in Charge David Zebley. Sunitha Guntipally and Ramireddi also were charged with witness tampering, and Kondamoori was charged with obstruction of justice. The four defendants were charged in a 33-count indictment filed yesterday alleging crimes in connection with the submission of fraudulent applications for H-1B specialty-occupation work visas.
According to the indictment, the four defendants allegedly used three California corporations to orchestrate the improper submission of more than one hundred H-1B visa applications. The indictment identifies Venkat and Sunitha Guntipally, of Fremont, as a husband and wife team who founded and owned DS Soft Tech and Equinett, two employment-staffing companies for technology firms. Venkat Guntipally served as the president of both companies, and Sunitha Guntipally served as the vice president. Kondamoori, of Incline Village, Nev., is alleged to be the founder and owner of SISL Networks. Kondamoori’s sister, Ramireddy, of Pleasanton, is alleged to have been the human resources manager and operations manager of all three companies.
The H-1B Specialty Occupation Workers Program allows an employer to temporarily employ a foreign worker in the United States on a nonimmigrant basis in a specialty occupation. A specialty occupation requires the theoretical and practical application of a body of specialized knowledge and a bachelor’s degree or its equivalent in the specific specialty. According to the indictment, the defendants submitted to the government, or caused to be submitted, H-1B visa application materials stating that the foreign workers named in the applications would be placed at specific companies in the United States. However, according to the indictment, those companies either did not exist or never intended to receive the foreign workers named in the defendants’ applications. For example, the indictment alleges that between approximately 2012 and 2013, DS Soft Tech and Equinett submitted approximately 22 separate petitions, signed under penalty of perjury, for H-1B workers to be placed at a company called SemSolar, Inc., operated by Kondamoori. Although the petitions and supporting documents stated that the foreign workers would be placed at SemSolar to work on a specific software product, the defendants allegedly knew that SemSolar was not working on that product, the defendants did not intend to place any of the H-1B workers at SemSolar, and none of the workers who received H-1B visas through the defendants’ scheme ever worked at SemSolar. Further, according to the indictment, between approximately 2010 and 2014, the defendants’ companies submitted more than one hundred additional fraudulent petitions for foreign workers to be placed at other purported companies. The indictment alleges that through their ownership, direction, and control of DS Soft Tech and Equinett, the Guntipallys generated net profits from 2010 to 2014 of approximately $3.3 million and gross profits of approximately $17 million.
All four defendants are charged with conspiracy to commit visa fraud, false statements, mail fraud, obstruction of justice, and witness tampering, in violation of 18 U.S.C. § 371; visa fraud, in violation of 18 U.S.C. § 1546(a); use of false documents, in violation of 18 U.S.C. § 1001(a)(3); mail fraud, in violation of 18 U.S.C. § 1341; and aiding and abetting these offenses, in violation of 18 U.S.C. § 2.
In addition, Kondamoori, Sunitha Guntipally, and Ramireddi are charged in connection with alleged efforts to conceal the defendants’ conduct.
According to the indictment, Kondamoori responded to federal law enforcement officers investigating the visa fraud conspiracy with various false representations. Kondamoori allegedly represented that, among other things, he and SemSolar were developing a product called “Eftia Master.Scribe” for which he required H-1B workers; that Softbank, Sprint’s parent company, was both an investor in SemSolar and a business partner of SISL Networks; and that Kondamoori was a general partner of Focus Ventures. According to the indictment, all of those representations were false. Kondamoori is charged with one count of obstruction of justice, in violation of 18 U.S.C. § 1505.
According to the indictment, on at least four occasions, Guntipally either provided H-1B foreign workers with false documents or advised the workers to mislead government agents. In each instance, the indictment alleges, Guntipally’s objective was to hinder, delay, and prevent the beneficiary from communicating truthful information to government agents. Ramireddi also is alleged to have advised an H-1B worker to mislead a government agent for the purpose of hindering, delaying, or preventing the government investigation. Sunitha Guntipally is charged with four counts and Ramireddi with one count of witness tampering, in violation of 18 U.S.C. § 1512(b)(3).
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face the following maximum sentences:
DEFENDANT
STATUTE
CHARGE
MAXIMUM PENALTY
All Defendants
18 U.S.C. § 371
Conspiracy to Commit Visa Fraud, False Statements, Mail Fraud, Obstruction of Justice, and Witness Tampering
Maximum term of imprisonment: 5 years
Maximum fine: $250,000 or twice the gross gain or loss, whichever is greater
Maximum term of supervised release: 3 years
Forfeiture
Possible Deportation
All Defendants
18 U.S.C. § 1546(a)
Visa Fraud
Maximum term of imprisonment: 10 years
Maximum fine: $250,000 or twice the gross gain or loss, whichever is greater
Maximum term of supervised release: 3 years
Forfeiture
Possible Deportation
All Defendants
18 U.S.C. § 1001(a)(3)
Use of False Documents
Maximum term of imprisonment: 5 years
Maximum fine: $250,000 or twice the gross gain or loss, whichever is greater
Maximum term of supervised release: 3 years
Possible Deportation
All Defendants
18 U.S.C. § 1341
Mail Fraud
Maximum term of imprisonment: 20 years
Maximum fine: $250,000 or twice the gross gain or loss, whichever is greater
Maximum term of supervised release: 3 years
Forfeiture
Possible Deportation
Pratap “Bob” Kondamoori
18 U.S.C. § 1505
Obstruction of Justice
Maximum term of imprisonment: 5 years
Maximum fine: $250,000 or twice the gross gain or loss, whichever is greater
Maximum term of supervised release: 3 years
Possible Deportation
Sunitha Guntipally
and
Sandhya Ramireddi
18 U.S.C. § 1512(b)(3)
Witness Tampering
Maximum term of imprisonment: 20 years
Maximum fine: $250,000 or twice the gross gain or loss, whichever is greater
Maximum term of supervised release: 3 years
Possible Deportation
Assistant U.S. Attorney Jonas Lerman is prosecuting the case with the assistance of Nina Burney. The prosecution is the result of an investigation led by the U.S. Department of State Diplomatic Security Service’s representative to the Document and Benefit Fraud Task Force (DBFTF) overseen by the Department of Homeland Security’s Homeland Security Investigations. The DBFTF is a multi-agency task force that coordinates investigations into fraudulent immigration documents. U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security also assisted with the investigation.
Athens Man Pleads Guilty to Possessing Child PornographyRead the Press Release
Contact: Chris Ruge
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Steven Strang, Jr., 37, of Athens, Maine, pled guilty today in U.S. District Court to possessing child pornography.
According to court records, from about June 15, 2015 to about August 20, 2015, Strang possessed dozens of video files depicting child pornography. Many of these videos, which he had purposely sought out and downloaded from the internet, depicted the sexual exploitation of prepubescent children under the age of 12.
Strang faces up to 20 years in prison, a $250,000 fine and between five years and a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Maine State Police Computer Crimes Unit.
Army Colonel Convicted of Possession and Distribution of Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Robert J. Rice, age 58, Carlisle, a Colonel in the U.S. Army stationed at the U.S. Army War College in Carlisle, was convicted of possession and receipt and distribution of child pornography over the internet. The five-day trial was held before U.S. District Court Chief Judge Christopher C. Conner in Harrisburg.
According to U.S. Attorney Peter Smith, the jury returned with the verdict of guilty after approximately two hours of deliberation. The jury found that Rice knowingly possessed child pornography from August 2010 through January 29, 2013, and that he received and distributed child pornography through the internet from January 23, 2013 through January 28, 2013.
Chief Judge Conner has scheduled sentencing for August 12, 2016.
The case was prosecuted by Assistant United States Attorneys James T. Clancy and Chelsea B. Schinnour.
The charges stemmed from an investigation by the Cumberland County District Attorney’s Office with assistance from the U.S. Army Criminal Investigation Division and Homeland Security Investigations (HSI).
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 30 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Armed Career Criminal Sentenced to Fifteen Years for Illegal Gun PossessionRead the Press Release
Contact Person: Nathan Williams (843) 727-4381
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Gerald Jamal Stanley, age 42, of North Charleston, SC, was sentenced to fifteen years in prison for being a felon in possession of a firearm. On August 19, 2014, Stanley pled guilty to illegally possessing a firearm. Stanley was prohibited from possessing the firearm because he had a prior felony conviction. At sentencing, Stanley was found to have three prior violent felonies dating back as far as 1991. Accordingly, under the Armed Career Criminal Act, 18 U.S.C. § 924(e), Stanley was subject to a mandatory sentence of fifteen years imprisonment.
Stanley was sentenced by United States District Court Judge Richard M. Gergel. The conviction is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of North Charleston Police Department. Assistant United States Attorney Nathan Williams of the Charleston office prosecuted the case.
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Amanda Brook Ely, Lansing IRS Scammer of Vulnerable Citizens SentencedRead the Press Release
GRAND RAPIDS, MICHIGAN — Amanda Brook Ely, the first of five defendants connected to a Lansing, Michigan area family-run tax scheme was sentenced to three years of probation and full restitution, in federal court, U.S. Attorney Patrick Miles announced today. The scheme involved deceiving citizens into providing their personal identification information by promising them "free stimulus money." Many of the victims in this case were homeless persons or suffered from addiction and disability issues. The tax returns typically contained false reporting of undocumented income and abusive use of the Earned Income credit. Ely, 22, and the mother of two minor children, requested leniency from the sentencing court due to her being only 18 years old when she participated in the tax fraud. She also advised the court that she was "significantly influenced" by the Chiwocha family. She had no prior criminal history. Four other co-defendants in this tax fraud scam face sentencing in the next 30 days.
"My office has no tolerance for those who take advantage of the trust of the vulnerable only to scam the system and line their own pockets," stated U.S. Attorney Miles. He was joined in the announcement by Jarod J. Koopman, Special Agent in Charge, Internal Revenue Service – Criminal Investigation and David P. Gelios, Special Agent in Charge, FBI Detroit Division.
Complaints by local citizens prompted the Federal Bureau of Investigation to open a criminal investigation, including obtaining multiple search warrants to seize evidence of a tax fraud scheme. During the multi-year investigation, more than 50 subpoenas were issued to track down the tax refunds which had been paid into numerous bank accounts. In some instances, the personal identification information was used to file a tax return in a successive year. In an earlier prosecution, Taka Chiwocha-Crowell pled guilty to filing false tax returns and was sentenced to 42 months’ incarceration.
The IRS estimates that Ely and her co-defendants were collectively responsible for filing 965 false tax returns, and receiving payments of $1,403,367.07 in false tax refunds. For her part, Ely was sentenced for receiving approximately $32,000 in false federal tax refunds. Ely had directed the IRS to direct payment of some of the false refunds to a bank account named "Forever Free Financial."
The investigation was conducted by the Lansing Office of the FBI and the Lansing Office of IRS Criminal Investigations. The case is being prosecuted by Assistant U.S. Attorney Michael A. MacDonald.
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Abilene Woman Sentenced to 30 Years in Federal Prison for Producing Child PornographyRead the Press Release
ABILENE, Texas — A 25-year-old woman from Abilene, Texas, Misty Dawn Kelley, was sentenced today by U.S. District Judge Reed C. O’Connor to 30 years in federal prison, following her guilty plea in February 2016 to an indictment charging one count of production of child pornography and aiding and abetting, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, in July 2014, Kelley met an individual, she knew as “Randy,” on an online adult webcam site. In November 2014, “Randy” began sending sexually explicit pictures of his one to two-year-old daughter to Kelley. Kelley continued to communicate with “Randy” on Kik and Skype, and in early July 2015, during a conversation with “Randy” on Kik, Kelley asked him to perform an act of sexual abuse on his daughter and send her a picture of it. “Randy” immediately sent Kelley a picture of his daughter, depicting the result of his actions.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Abilene Police Department investigated the case. Assistant U.S. Attorney Steven M. Sucsy, of the U.S. Attorney’s Office in Lubbock, Texas, was in charge of the prosecution.
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Thursday 5 May 2016
Yuba City Man Sentenced to 16 Years in Prison for Producing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Nathan Penner, 26, of Yuba City, was sentenced today to 16 years and three months in prison for producing child pornography, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Phillip A. Talbert of the Eastern District of California, Special Agent in Charge Ryan Spradlin of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) San Francisco Field Division and Chief of Police Robert D. Landon of the Yuba City Police Department.
Penner pleaded guilty on November 5, 2015, to one count of production of child pornography. U.S. District Judge Troy L. Nunley sentenced Penner today and also ordered him to serve a lifetime term of supervised release.
In connection with his plea, Penner admitted to producing sexually explicit images and videos of a five-year-old girl in September and October of 2012. During the sentencing hearing, evidence revealed that Penner downloaded hundreds of files of child pornography located on his computer and distributed such material using an online chat messaging service.
“We are gratified by the sentence imposed today, which provides a measure of justice in response to a crime that inflicts tremendous suffering upon the most vulnerable of victims and sends a strong message that all children deserve a childhood free from such exploitation and harm,” said Acting U.S. Attorney Talbert. “We are grateful for the hard work and collaboration of our local and federal law enforcement partners, and we will continue to aggressively investigate and prosecute those who engage in the exploitation of our children.”
Chief Robert D. Landon stated: “The Yuba City Police Department extends sincere appreciation to all agencies involved in this case. The collaborative effort of all who worked on the thorough investigation and successful prosecution of this child predator should be commended.”
This case was investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Yuba City Police Department. Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Special Assistant U.S. Attorney Josh F. Sigal of the Eastern District of California prosecuted the case. CEOS’ High Technology Investigative Unit assisted with computer forensic analysis for the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Wounded Knee Woman Sentenced for Stealing Funds from Tribal OrganizationRead the Press Release
United States Attorney Randolph J. Seiler announced that a Wounded Knee, South Dakota, woman convicted of Theft from Tribal Organization was sentenced on April 29, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Casey Titus, age 27, was sentenced to 3 years of probation, a $100 special assessment to the Federal Crime Victims Fund, and $15,000 in restitution.
Titus was indicted for Theft from Tribal Organization and Larceny by a federal grand jury on May 19, 2015. She pleaded guilty to Theft from Tribal Organization on November 6, 2015.
From 2010 through May of 2014, Titus worked for the Wounded Knee Community Council as both Vice Chair and Treasurer. Titus embezzled over $15,000 in funds.
This case was investigated by Bureau of Indian Affairs Office of Justice Services. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Woodland Husband and Wife Indicted for Tax EvasionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Virendra “Vic” Maharaj, 49, and his wife, Rosalin Prasad, 40, both of Woodland, charging them with one count of conspiring to defraud the United States by impeding the IRS’s assessment of their income tax liability, and further charging Maharaj with three counts of tax evasion, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between January 2005 and January 2010, Maharaj and Prasad conspired to defraud the United States by impeding the Internal Revenue Service in its attempt to assess the couple’s tax obligations for the years 2005, 2006, and 2007. Additionally, Maharaj, who worked at multiple car dealerships in Sacramento and Woodland, attempted to evade or defeat the assessment of his tax obligations for those same tax years. In an attempt to conceal the source and amount of his income, Maharaj caused part of his wages to be paid directly to Prasad. He caused Wage and Tax Statements on W-2 forms to be issued in Prasad’s name for wages actually paid to him, and in amounts that recorded only part of the wages he received. Maharaj took some of his compensation from the car dealerships in cash, and this compensation was not recorded on the W‑2 forms. Maharaj also caused the dealership to pay some of his compensation directly to one of Prasad’s creditors to pay for a loan, and these payments were not recorded on the W‑2 forms.
According to the indictment, tax returns were filed for Prasad for the tax years 2005, 2006, and 2007, reporting the wages on the W-2 forms that underreported the income received for Maharaj’s work. Maharaj failed to file tax returns for any of the years in question.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Nirav Desai is prosecuting the case.
The defendants are scheduled to be arraigned on the indictment on May 6, 2016.
If convicted of the conspiracy offense, Maharaj and Prasad each face a maximum statutory penalty of five years in prison and a $250,000 fine. If convicted on the tax evasion counts, Maharaj faces a maximum statutory penalty of five years in prison and a $100,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Williamson County Woman Charged with Federal Drug ViolationRead the Press Release
On May 3, 2016, Natasha C. Mann, 29, of Cambria, was charged by indictment with conspiracy to distribute a mixture or substance containing MDMA, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. MDMA is 3,4-Methylenedioxymethamphetamine, a controlled substance, which is commonly referred to as "Ecstasy." The indictment alleges that the offense occurred between December 2015 and March 22, 2016, in Williamson County. Mann is scheduled to make her initial appearance in federal court on May 5, 2016.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The MDMA offense carries a maximum penalty of up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Department of Homeland Security, Drug Enforcement Administration, Marion Police Department, and U.S. Postal Inspection Service. The Illinois State Police and Williamson County State’s Attorney’s Office assisted in the investigation.
Williamson County Man Charged with Federal Firearm ViolationRead the Press Release
On May 3, 2016, Russell D. Morris, a/k/a "Dickie Donald," 36, of Herrin, was charged by one-count indictment with unlawful possession of a firearm by a felon, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. The indictment alleges that the offense occurred on January 29, 2016, in Williamson County. Morris is scheduled to make his initial appearance in federal court on May 5, 2016.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The firearm offense carries a maximum penalty of up to 10 years’ imprisonment, to be followed by 3 years’ supervised release, and a $250,000 fine.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group and Illinois Department of Corrections – Parole Compliance Division. The Williamson County State’s Attorney’s Office assisted in the investigation.
Westlake father and son sent to prison for decade-long food stamp fraudRead the Press Release
Two Westlake men were sentenced to prison and ordered to repay $931,045 for illegally redeeming food stamps for more than a decade, said Acting U.S. Attorney Carole Rendon.
Mahmoud Zayed, 61, was sentenced to 30 months in prison. His son Ashraf Zayed, 41, was sentenced to 37 months in prison. Both previously pleaded guilty to conspiracy to defraud the United States, food stamp fraud and unlawful food stamp redemptions.
The Zayeds fraudulently applied for a food stamp vendor license for their convenience store, Al-Manar Market, located on West 117 Street in Cleveland. Mahmoud Zayed had prior state felony convictions related to food stamp fraud, but he and his co-conspirators hid this fact from the U.S. Department of Agriculture by means of a proxy food stamp application submitted by a relative of the Zayeds. This application claimed that Mahmoud Zayed’s relative was the owner of Al-Manar Market but neglected to state that Mahmoud Zayed would be involved in the operations of the market. The application also failed to state that Mahmoud Zayed had prior criminal convictions for food stamp trafficking, which would have barred him from future participation in the food stamp and SNAP programs, according to court documents.
The Zayeds improperly trafficked food stamp and SNAP benefits in exchange for ineligible non-food items such as cash, hookah tobacco, pipes and accessories, and calling cards, in violation of the program’s rules and regulations. This took place between 2001 and 2013, according to court documents.
This case was prosecuted by Assistant U.S. Attorneys Om Kakani and Miranda Dugi, following an investigation by the United States Department of Agriculture, Office of Inspector General.
Washington Man Indicted for Possession of Unauthorized Access Devices and Stolen Identification DocumentRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mill Creek, Washington, man has been indicted by a federal grand jury for Possession of Unauthorized Access Devices and Possession of Stolen Identification Document.
Mythyas Godiava, age 42, was indicted on April 19, 2016. He appeared before U.S. Magistrate Judge Daneta Wollman on April 26, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to an incident that occurred on April 4, 2016, where Godiava possessed fifteen or more unauthorized access devices, and a stolen passport.
The charge is merely an accusation and Godiava is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Homeland Security Investigations, South Dakota Highway Patrol, and South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Godiava was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for June 28, 2016.
Used Motor Vehicle Dealer and Former State Employee Arrested in Georgia for Odometer Tampering SchemeRead the Press Release
Two Atlanta, Georgia, residents were arrested this week by a team of federal and Georgia state agents, the Department of Justice announced.
Rojen Burnett, 33, and Amber McLaughlin, 32, were charged in a 25-count indictment with securities fraud, making false odometer statements and conspiracy to commit these offenses. Burnett owned and operated Lifestyle Auto Broker LLC, a Georgia corporation that bought and sold used motor vehicles. McLaughlin was a customer service specialist at the Motor Vehicle Department (MVD) of the Georgia Department of Revenue, the indictment alleges.
According to the indictment, as early as February 2012 and through at least May 2013, the defendants devised a scheme to defraud buyers of used motor vehicles by rolling back the vehicles’ odometers and causing consumers to pay more for the vehicles than they would have paid if they had known the vehicles’ actual miles.
As part of the scheme, the indictment charges that Burnett purchased high-mileage, used motor vehicles from auctions in Maryland and Virginia. Burnett then caused the odometers in these vehicles to be altered to reflect false, lower mileage, according to the charges. The indictment also alleges that Burnett caused the existing titles associated with these vehicles to be altered to reflect the false, lower mileages. McLaughlin provided him with newly issued, clean Georgia titles reflecting the false, lower mileages, according to the charges.
Using these new Georgia titles, Burnett subsequently sold the motor vehicles to other dealers through an auto auction, the indictment alleges.
“Individuals who buy and sell used vehicles cannot alter odometers and the associated paperwork to increase their value,” said Principal Deputy Assistant Attorney General Benjamin J. Mizer, head of the Justice Department’s Civil Division. “Consumers who purchase used vehicles need accurate mileage information to assess the value and safety of a potential vehicle purchase. We take seriously our obligation to prosecute those who violate these statutes and prey upon unsuspecting consumers.”
If convicted, each defendant faces up to 10 years in prison on the most serious of the charges.
This case was investigated by the Auto Crimes Title Fraud Unit of the Georgia Department of Revenue and the U.S. Department of Transportation, National Highway Traffic Safety Administration. It is being prosecuted by Trial Attorneys Kerala Thie Cowart and David Sullivan of the Civil Division’s Consumer Protection Branch.
More information on odometer fraud is available on the NHTSA’s website, and tips on detecting and avoiding odometer fraud are available at this page. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
These charges are only allegations and the defendants are presumed innocent unless and until proven guilty.