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16 June 2016
Member of Violent Home Invasion Robbery Crew Sentenced to 420 Months for Conspiring to Commit Drug Robberies, Conspiring to Distribute Cocaine and Heroin, and Illegally Using A FirearmRead the Press Release
Nelson Nolasco was sentenced today to 420 months in prison by United States District Judge I. Leo Glasser at the federal courthouse in Brooklyn. In the middle of his jury trial held in November 2011, Nolasco pleaded guilty to robbery conspiracy, cocaine trafficking conspiracy, and firearm charges.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and James J. Hunt, Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division.
Nolasco is the last of 25 defendants to be sentenced in this prosecution of a violent robbery crew that targeted drug traffickers. During some of these robberies, members of the robbery crew posed as law enforcement officers, staged fake arrests of narcotics traffickers, and then forcibly seized the traffickers’ drugs and drug proceeds. Members of the robbery crew often restrained their victims with handcuffs, rope, or duct tape. The crew members often brandished firearms and physically assaulted victims. Crew members sold the stolen drugs and divided the proceeds among themselves. To date, the prosecution has resulted in the conviction of two NYPD officers and one NYPD auxiliary officer, all of whom participated in multiple drug robberies.
Nolasco was a particularly violent member of the robbery crew who participated in at least 15 robberies and attempted robberies, during which he and his co-conspirators robbed narcotics traffickers of at least 118 kilograms of cocaine and $150,400 in U.S. currency.
During one such robbery in upper Manhattan in 2005, Nolasco shot and killed a narcotics trafficker who refused to reveal the location of drugs. Nolasco and his co-conspirator later recovered two kilograms of cocaine from the victim’s apartment. During an attempted robbery of a residence in the Bronx in 2005, Nolasco and his co-conspirators broke down the rear door with a sledgehammer, entered the residence, and handcuffed four occupants of the house. Nolasco then personally threatened these victims at gunpoint. During a robbery in Queens in 2006, Nolasco and his co-conspirators, impersonating police officers, abducted a drug trafficker and brought him to his stash house. While forcing the drug trafficker into the stash house, the crew encountered two additional drug traffickers. Nolasco jumped on one of the drug traffickers and placed a gun to his head until he revealed the location of drugs at the stash house.
In another incident in June 2006, Nolasco attempted to murder two drug traffickers in the Bronx. A few weeks earlier, the drug traffickers had provided Nolasco with 10 kilograms of cocaine to sell. When the drug traffickers met with Nolasco to collect the narcotics proceeds, Nolasco shot them rather than pay them the money from the sale. After shooting both drug traffickers in the abdomen, Nolasco tried to complete the murder with shots to each victim’s head but his gun jammed twice. Both drug traffickers survived the shooting.
Mr. Capers extended his grateful appreciation to the DEA New York Drug Enforcement Task Force, comprising agents and officers of the DEA, New York City Police Department, and New York State Police; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations.
The government’s case is being prosecuted by Assistant United States Attorneys Alexander Solomon, Douglas M. Pravda, and Sylvia S. Shweder.
The Defendant:
NELSON NOLASCO
Age: 44
Dominican RepublicE.D.N.Y. Docket No. 08-CR-242
Medway Man Sentenced for Extortion ActivitiesRead the Press Release
BOSTON – A Medway man was sentenced today in U.S. District Court in Worcester in connection with his role in an extortion scheme.
Baljit Singh Rehal, a/k/a Joel Rehal, 32, was sentenced by U.S. District Court Judge Timothy S. Hillman to 33 months in prison, three years of supervised release and ordered to pay $180,000 in restitution to the victim, and to forfeit an additional $180,000 to the government. In October 2014, Rehal and Nicholas D. Valorie, III, of Milford, were charged with collection of extension of credit by extortionate means. Rehal pleaded guilty to the charges in August 2015.
Between December 2012 and January 2014, Rehal, Valorie and others perpetrated a scheme in which they convinced a man that he owed money to the FBI for an alleged whistleblower investigation. They proceeded to collect payments on the $180,000 debt from the man. When the man could not make the payments, Rehal and others would purportedly loan him money and have him sign promissory notes to repay the money to them. Rehal used extortionate means to collect an extension of credit made to the victim, or to punish him for the non-repayment.
Valorie was released on pretrial diversion. If he completes the conditions of pretrial diversion, including repaying the victim, the case against him will be dismissed.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Milford Police Chief Thomas O’Loughlin; and Medway Police Chief Allen M. Tingley made the announcement. The case was prosecuted by Assistant U.S. Attorney Michelle L. Dineen Jerrett of Ortiz’s Worcester Branch Office.
Media Advisory: Elder Justice Task Force LaunchedRead the Press Release
CEDAR RAPIDS, IA – The United States Attorney’s Office was selected as one of 10 nationwide districts to form an Elder Justice Task Force (http://go.usa.gov/cSngj). The task force’s charge is to foster a collaborative working relationship among all levels of government, advocacy groups, and others charged with the care and protection of our more vulnerable citizens. Ensuring the integrity of all government expenditures by eliminating fraud, waste, and abuse in health programs and protecting seniors from financial fraud schemes are primary goals of the task force.
U.S. Attorney Kevin W. Techau will be present at the press conference and will be joined by some task force members. This event is being held at an area church that serves as a senior center and congregate lunch location during the week. Seniors will be present.
Event Details
When: Monday, June 20, 2016
Where: Oakhill Jackson Community Church, 1202 10th St. S.E., Cedar Rapids, IA
Time: 11:00 a.m.
A press release will be provided and interview opportunities will be available.
Follow us on Twitter @USAO_NDIA.
Matthew Martin Indicted for Multiple Armed RobberiesRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that a federal grand jury indicted Matthew T. Martin, 31, from the Springfield area of Vermont, for armed robberies of a bank in Brattleboro and a credit union in Ludlow. Martin appeared in federal court on June 14, 2016 for his arraignment on the two-count indictment. Magistrate Judge John M. Conroy ordered Martin remanded to custody and detained pending trial.
As charged in the indictment, on December 14, 2015, Martin committed an armed robbery of a branch of the People’s United Bank in Brattleboro, Vermont. In committing this offense, Martin assaulted others by using a dangerous weapon and device. Specifically, Martin robbed the bank by using a BB gun that resembled a firearm and by using a device that purported to be a bomb.
Shortly thereafter, on December 21, 2015, Martin committed an armed robbery of a branch of the Heritage Family Credit Union in Ludlow, Vermont. Again, Martin assaulted others by using a dangerous weapon, specifically, a BB gun that resembled a firearm.
Martin surrendered in December 2015 after the U.S. Marshals publicly named him a “Fugitive of the Week” based on outstanding arrest warrants in both New Hampshire and Vermont arising out a string of armed robberies. Authorities are continuing to investigate Martin for additional robberies he may have committed in 2015, other than the two robberies charged in the indictment announced by the U.S. Attorney’s Office.
The charges against Martin are merely accusations and Martin is presumed innocent until and unless he is proven guilty. If convicted, Martin faces a maximum penalty of up to twenty-five years in prison for each of the two counts of armed robbery. The actual sentence upon conviction will be advised by the federal sentencing guidelines.
The collaborative team investigating Martin has included federal, state, and local law enforcement agents, including those from the Federal Bureau of Investigation, the Vermont State Police, the New Hampshire State Police, and the police departments in Brattleboro, Springfield, and Ludlow.
The United States is represented in this case by Assistant United States Attorney Kunal Pasricha. Martin is represented by attorney Jordana Levine.
Manteca Man Indicted for Attempted Sexual Exploitation of a MinorRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Michael Tamblin, 51, of Manteca, charging him with attempted sexual exploitation of a minor, Acting U.S. Attorney Phillip A. Talbert announced.
According to the indictment, in September and October of 2015, Tamblin surreptitiously filmed a child on numerous occasions using a hidden camera.
According to court documents, Tamblin was a technician at the Lawrence Livermore National Laboratory (LLNL), which is a secured federal laboratory owned by the United States Department of Energy. All internet searches on the LLNL network are recorded and periodically audited. A routine review of internet searches on Tamblin’s computer revealed potentially inappropriate activity. Further investigation led law enforcement officers to obtain a search warrant for Tamblin’s residence. On February 19, 2016, Tamblin was arrested and has remained in custody since that date.
This case is the product of an investigation by the Federal Bureau of Investigation and the Department of Energy, Office of Inspector General. Assistant United States Attorney Rosanne Rust is prosecuting the case.
If convicted, Tamblin faces a mandatory minimum sentence of 15 years in prison and a maximum statutory penalty of 30 years in prison and a $250,000 fine per count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Manchester Man Sentenced on Bank Robbery ChargeRead the Press Release
CONCORD, N.H. – Eric Michael D’Aoust, 30, of Manchester, New Hampshire, appeared in U.S. District Court today and was sentenced to 63 months in federal prison for committing three bank robberies in Manchester, New Hampshire in November of last year.
The defendant, who was identified by bank personnel and through surveillance video, robbed the Granite State Credit Union at 1415 Elm Street on November 9, 2015. On November 12, 2015 D’Aoust robbed the TD Bank at 300 Franklin Street and on November 13, 2015 D’Aoust robbed the TD Bank at 1255 South Willow Street. In the course of each robbery, the defendant entered the bank and passed a note to the teller demanding that the teller give him all the cash in the drawers.
The defendant was arrested on November 13, 2015 in the area of the TD Bank on South Willow Street shortly after the robbery. At the time of his arrest, the defendant had an amount of money on his person consistent with the amount stolen from the TD Bank. In January, 2016, the defendant was indicted by a Federal Grand Jury and on March 8, 2016, D’Aoust pled guilty before United States Chief Judge, Joseph Laplante.
The defendant will be supervised by United States Probation for a period of three years after his release from prison.
This case was investigated by the Manchester Police Department with the assistance of the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Helen White Fitzgibbon.
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Long Island Man Pleads Guilty to Defrauding Homeowners in Multi-Million Dollar Loan Modification SchemeRead the Press Release
Earlier today, David Gotterup pleaded guilty at the federal courthouse in Brooklyn, New York, to conspiracy to commit wire fraud by defrauding distressed homeowners in a loan modification scheme. When sentenced, Gotterup faces up to 30 years in prison, as well as restitution, criminal forfeiture, and a fine.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Christina Scaringi, Special Agent-in-Charge, U.S. Department of Housing and Urban Development, Office of Inspector General (HUD/OIG); and Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
According to court filings and facts presented at the guilty plea proceeding, from 2008 to 2012, Gotterup and his co-conspirators made a series of false promises to convince more than a thousand distressed homeowners seeking relief through government mortgage modification programs to pay thousands of dollars each in advance fees to numerous companies owned or controlled by Gotterup, including Express Modifications, Express Home Solutions, True Credit Empire, LLC, Green Group Today, Inc., The Green Law Group, Inc., and JG Group. Among other things, Gotterup directed telemarketers and salespeople to lie to distressed homeowner victims by telling them that they were preapproved for loan modifications and that they were retaining a law firm and an attorney who would complete their mortgage relief applications and negotiate with the banks to modify the terms of their mortgages. Contrary to these representations, Gotterup and his co-conspirators did little or no work in connection with these fraudulently induced advanced fees. Gotterup was arrested in October 2015 and remains incarcerated.
In announcing the guilty plea, Mr. Capers extended his appreciation to the agencies that led the government’s investigation and thanked the U.S. Small Business Administration and the Staten Island District Attorney’s Office for their assistance.
Today’s guilty plea took place before United States District Judge Nicholas G. Garaufis.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Sylvia Shweder and Bonni Perlin are in charge of the prosecution.
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This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 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, visit http://www.StopFraud.gov.
The Defendant:
DAVID GOTTERUP
Age: 36
Oceanside, New YorkE.D.N.Y. Docket No. 15-CR-498 (NGG)
Lockport Man Pleads Guilty to Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Bob Odrzywolski, 72, of Lockport, NY, pleaded guilty to being a felon in possession of firearms before U.S. District Judge Elizabeth A. Woldford. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney George C. Burgasser, who is handling the case, stated that the defendant, a convicted federal felon, obtained ammunition from a local retailer. Subsequently, a search warrant was executed at Odrzywolski’s Crosby Road residence. During the search, officers recovered seven handguns and approximately 6000 rounds of ammunition. The defendant was previously convicted of a federal crime and could not legally possess firearms.
The plea is the result of an investigation by the Niagara County Sheriff’s Department, under the direction of Sheriff James Voutour and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division.Sentencing is scheduled for September 21, 2016 at 10:00 a.m. before Judge Wolford.
Kyle Man Indicted for Assaulting a FemaleRead the Press Release
United States Attorney Randolph J. Seiler announced that a Kyle, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Wilbur Hunter, age 52, was indicted on May 24, 2016. Hunter appeared before U.S. Magistrate Judge Daneta Wollmann on June 10, 2016, and pleaded 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 Hunter using a blunt object to assault a female at Kyle on March 10, 2016.
The charges are merely accusations and Hunter is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Hunter was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for August 16, 2016.
Justice Department settles disability-based housing discrimination lawsuit with developer and architectRead the Press Release
The Justice Department announced today that Dean Windham and Milton Studer, a real estate developer and an architect in Ohio, as well as several companies that they owned and controlled, have agreed to pay a total of $160,000 to resolve allegations that they violated the Fair Housing Act by designing and constructing two neighboring condominium complexes in Hartville, Ohio, with a variety of features that made them inaccessible to persons with disabilities.
Under the terms of the agreement, which must still be approved by the U.S. District Court for the Northern District of Ohio, the defendants will pay $100,000 to current condominium owners at Windham Bridge Condominiums and Hampton Court Condominiums who choose to make accessibility modifications to their units. These modifications include eliminating steps and excessive slopes in the walkways to the front entrances of their units; widening doorways; removing or lowering thresholds; installing removable cabinets in kitchens and bathrooms to increase maneuvering space for wheelchair use and relocating toilets, showers and sinks to provide access to a wheelchair user.
“This settlement makes clear that those who design and build multifamily housing must comply with the accessibility provisions of the Fair Housing Act,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We will continue to protect the rights of people with disabilities to live in their communities without facing barriers like inaccessible housing.”
“Accessible housing benefits the entire community,” said Acting U.S. Attorney Carole S. Rendon of the Northern District of Ohio. “It provides living options for people with mobility impairments, and helps ensure that our older residents can stay in their homes as long as possible. The Department of Justice is committed to enforcing the laws which protect this important right.”
Under the agreement, the defendants will also pay $10,000 to the Tri-County Center for Independent Living and $10,000 to the Fair Housing Advocates Association, two fair housing community organizations that expended resources in connection with this matter, as well as a $40,000 civil penalty to vindicate the public interest. The lawsuit arose out of complaints that Tri-County Center for Independent Living and the Fair Housing Advocates Association originally filed with the U.S. Department of Housing and Urban Development (HUD). After investigating the complaints, HUD determined that the defendants had violated the Fair Housing Act and referred the matter to the Justice Department.
“One out of five persons in America lives with some type of physical disability, making it more important than ever that architects and builders comply with the Fair Housing Act’s accessibility requirements,” said Gustavo Velasquez, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “Today’s settlement reaffirms HUD and the Justice Department’s commitment to ensuring that housing providers meet that obligation.”
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Individuals who believe that they have been victims of housing discrimination can call the Justice Department at 1-800-896-7743 or e-mail the Justice Department at [email protected]. Such persons may also contact the Department of Housing and Urban Development at 1-800-669-9777.
Fair housing enforcement is a priority of the Civil Rights Division. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Justice Department Statement on Amendment 4720 to the Commerce, Justice, Science, and Related Agencies Appropriations BillRead the Press Release
Press Secretary Dena Iverson released the following statement regarding proposed amendment 4720 to the Commerce, Justice, Science and Related Agencies (CJS) Appropriations Bill by Senator Dianne Feinstein.
“The Justice Department supports Senator Feinstein's amendment to help keep guns out of the hands of individuals believed to be engaged in terrorism. The amendment gives the Justice Department an important additional tool to prevent the sale of guns to suspected terrorists by licensed firearms dealers while ensuring protection of the department's operational and investigative sensitivities. We also continue to support universal background checks as a necessary tool to prevent suspected terrorists from lawfully obtaining firearms."
Justice Department Settles Disability-Based Housing Discrimination Lawsuit with Ohio Developer and ArchitectRead the Press Release
The Justice Department announced today that Dean Windham and Milton Studer, a real estate developer and an architect in Ohio, as well as several companies that they owned and controlled, have agreed to pay a total of $160,000 to resolve allegations that they violated the Fair Housing Act by designing and constructing two neighboring condominium complexes in Hartville, Ohio, with a variety of features that made them inaccessible to persons with disabilities.
Under the terms of the agreement, which must still be approved by the U.S. District Court for the Northern District of Ohio, the defendants will pay $100,000 to current condominium owners at Windham Bridge Condominiums and Hampton Court Condominiums who choose to make accessibility modifications to their units. These modifications include eliminating steps and excessive slopes in the walkways to the front entrances of their units; widening doorways; removing or lowering thresholds; installing removable cabinets in kitchens and bathrooms to increase maneuvering space for wheelchair use and relocating toilets, showers and sinks to provide access to a wheelchair user.
“This settlement makes clear that those who design and build multifamily housing must comply with the accessibility provisions of the Fair Housing Act,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We will continue to protect the rights of people with disabilities to live in their communities without facing barriers like inaccessible housing.”
“Accessible housing benefits the entire community,” said Acting U.S. Attorney Carole S. Rendon of the Northern District of Ohio. “It provides living options for people with mobility impairments, and helps ensure that our older residents can stay in their homes as long as possible. The Department of Justice is committed to enforcing the laws which protect this important right.”
Under the agreement, the defendants will also pay $10,000 to the Tri-County Center for Independent Living and $10,000 to the Fair Housing Advocates Association, two fair housing community organizations that expended resources in connection with this matter, as well as a $40,000 civil penalty to vindicate the public interest. The lawsuit arose out of complaints that Tri-County Center for Independent Living and the Fair Housing Advocates Association originally filed with the U.S. Department of Housing and Urban Development (HUD). After investigating the complaints, HUD determined that the defendants had violated the Fair Housing Act and referred the matter to the Justice Department.
“One out of five persons in America lives with some type of physical disability, making it more important than ever that architects and builders comply with the Fair Housing Act’s accessibility requirements,” said Gustavo Velasquez, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “Today’s settlement reaffirms HUD and the Justice Department’s commitment to ensuring that housing providers meet that obligation.”
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Individuals who believe that they have been victims of housing discrimination can call the Justice Department at 1-800-896-7743 or e-mail the Justice Department at [email protected]. Such persons may also contact the Department of Housing and Urban Development at 1-800-669-9777.
Fair housing enforcement is a priority of the Civil Rights Division. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Noble Homes Consent Order
Jefferson County Man Arrested for Terroristic Threat in BeaumontRead the Press Release
BEAUMONT, Texas – A 23-year-old Beaumont, Texas man has been arrested for federal violations in the Eastern District of Texas announced U.S. Attorney John M. Bales.
Lance Giovanni Fontenot was arrested on Wednesday, June 15, 2016 pursuant to a criminal complaint issued by the U.S. District Court charging him with maliciously conveying false information about explosive materials. Fontenot appeared in federal court this afternoon on the charges.
According to information presented in court, on June 15, 2016, the ExxonMobil refinery located in Beaumont, Texas received a call from an individual claiming explosive devices had been placed at the refinery and were set to explode. An investigation led authorities to Fontenot. Fontenot was questioned by federal agents and admitted to placing the telephone call.
If convicted, Fontenot faces up 10 years in federal prison and a fine of up to $250,000.
This case is being investigated by the Joint Terrorism Task Force including agents with the Federal Bureau of Investigation, the Beaumont Police Department, the Bureau of Alcohol Tobacco and Firearms, the Jefferson County Sheriff’s Office, the U.S. Coast Guard Investigative Services, and the Port Arthur Police Department. This case is being prosecuted by Assistant U.S. Attorney Lesley Woods.
It is important to note that a complaint, arrest, or indictment should not be considered is evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
Jamaican Citizen Pleads Guilty to Illegal Re-Entry After DeportationRead the Press Release
PITTSBURGH -- A citizen of Jamaica pleaded guilty to Illegal Re-Entry in the United States after Deportation and was sentenced in federal court to twelve months on his conviction, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Dwayne Lawrence Facey, a/k/a Dwayne Brown; Kimarley Williams; Damien Weatherspoon; Dameon Weatherspoon; Euvin Hunter; Roy Facey; “Euvin,” 40, formerly of Jamaica.
According to information presented to the court, Dwayne Facey, an alien who was removed from the United States by U.S. Immigration and Customs Enforcement on September 22, 2000, and again on September 21, 2006, was found on August 5, 2015, by law enforcement authorities in Pittsburgh, PA.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Homeland Security Investigations, Immigration and Customs Enforcement, and U.S. Marshals Service for the investigation leading to the successful prosecution of Dwayne Facey.
Inmate at United States Penitentiary Enters Guilty Plea to Assault of Corrections OfficerRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal inmate at the United States Penitentiary at Canaan pleaded guilty yesterday before U.S. District Court Judge Malachy E. Mannion in Scranton to the charge of assaulting a federal corrections officer.
According to United States Attorney Peter Smith, Orlando Garcia-Mata, age 24, formerly of Texas, admitted to throwing a punch at a corrections officer at the United States Penitentiary at Canaan on March 22, 2016.
Garcia-Mata was indicted by a federal grand jury in Scranton in April 2016, as a result of an investigation by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service
The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara
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.
In this case, the maximum penalty which can be imposed under federal law is 8 years of imprisonment, a term of supervised release following imprisonment, and a $100,000 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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Indiana Man Sentenced to Life Imprisonment for Muscatine Bank RobberyRead the Press Release
DAVENPORT, IA- On June 16, 2016, Thomas Alexander Davis III, age 40, of Indiana, was sentenced by Chief United States District Court Judge John A. Jarvey to life imprisonment for bank robbery announced United States Attorney Kevin E. VanderSchel. A jury found Davis guilty of this offense on February 11, 2016. Davis had been previously convicted in 1995 of armed bank robbery in the Southern District of Indiana, and robbery with a deadly weapon in Hancock, Indiana. At sentencing the government presented evidence, including certified records and testimony from a FBI Special Agent, an Indiana Deputy U.S. Marshal, a FBI-Biometrics Division Certified Ten Print Examiner, and the Chief of Police from Greenfield, Indiana, to identify Davis as the same person who committed these prior two offenses. Because these two prior robbery convictions qualified as "serious violent felonies" under a federal sentencing statute, this third conviction for robbery of the US Bank mandated life imprisonment. Davis was also ordered to serve five years on supervised release, pay restitution, and a $100 special assessment to the Crime Victims Fund.
The evidence at trial in this case showed that on November 28, 2012, Davis entered the US Bank in Muscatine. Davis presented the teller with a black bag with an Angry Birds cartoon, demanded money, and displayed a handgun. A bank customer was also present at the teller counter during the robbery. The teller placed US Bank cash in the bag. Davis fled the bank and escaped in a black Cadillac driven by Stacey Fincher, also of Indiana. Davis and Fincher drove back to Indiana. Davis was arrested on February 12, 2015, in Indiana. On April 8, 2016, Stacey Fincher was sentenced to a deferred judgment in Muscatine County District Court after pleading guilty to conspiracy to commit a forcible felony.
This case was investigated by the Federal Bureau of Investigation and the Muscatine Police Department, and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
High-speed chase leads to firearms charges for Maurice manRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that a man from Maurice pleaded guilty to having an unregistered sawed-off shotgun.
Kevin Patrick Abshire, 31, of Maurice, La., pleaded guilty before U.S. Magistrate Judge Carol B. Whitehurst to one count of possession of an unregistered firearm; namely, a shotgun having a barrel less than 18 inches in length. The plea will become final when accepted by U.S. District Judge Dee D. Drell. According to the guilty plea, Abshire admitted that on June 6, 2015, he was involved in a high-speed car chase within the city limits of Lafayette and Lafayette Parish, after he nearly struck an officer of the Lafayette Police Department while that officer was directing traffic at an accident scene. Instead of following the directions of the officers on the scene to turn off the engine to his vehicle, Abshire admitted that he drove away at a high rate of speed, causing officers of the Lafayette Police Department and the Lafayette Parish Sheriff’s Office to pursue Abshire’s vehicle. Abshire was involved in a single-vehicle accident near the Ridge Road area of Lafayette, and upon exiting the vehicle, officers noticed that he was in possession of a shotgun. Officers were successful in subduing Abshire and placing him into custody. The investigation revealed that the shotgun Abshire possessed when he exited the vehicle was not registered to him in the National Firearms Registration and Transfer Record, was loaded, and had a barrel length of 13-7/8 inches.
Abshire faces up to 10 years in prison, three years of supervised release and a $250,000 fine. A sentencing date has not been set.
The ATF, Lafayette Police Department and Lafayette Parish Sheriff’s Office investigated the case. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
Guilty Pleas in Federal Firearms, Violent Crime CasesRead the Press Release
Rock Island, Ill. – Three felons entered pleas of guilty in separate, unrelated cases today in federal court in Rock Island, Ill. Each remains in the custody of the U.S. Marshals Service pending their respective sentencing hearing.
During court proceedings and according to court documents, Gregory F. Young, 37 of South Bend, Ind., admitted that he possessed a loaded .40 caliber Smith & Wesson semi-automatic pistol, an SKS-type 7.62mm rifle with folding stock and bayonet, about 13 rounds of .40 caliber ammunition, and about 221 rounds of 7.62 ammunition loaded in eight SKS high capacity magazines when he was stopped by Illinois State Police on Nov. 20, 2015, in Henry County, Ill. At that time, Young was the subject of an active arrest warrant from Indiana. Young also has prior felony convictions from the State of Indiana for burglary and other offenses. At sentencing, set for Oct. 20, 2016, for possession of firearms and ammunition by a felon, Young faces a penalty of up to 10 years in prison, a fine of up to $250,000, and up to three years supervised release following release from prison. Assistant U.S. Attorney Don Allegro is prosecuting the case which was investigated by the Illinois State Police and the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives.
In an unrelated case, Robert Ford, 22, of Rock Island, Ill., pleaded guilty to possession of a firearm and ammunition by a felon. According to court documents, Ford was stopped by Moline, Ill., police officers during the early morning hours of Dec. 2, 2015. The officers had received an alert that Ford and others might be planning to take retaliatory action against a citizen of Moline in connection with a shooting in Rock Island on Dec. 2, 2015. Ford was searched and found to be carrying a loaded .38-caliber, 2-shot handgun in a jacket pocket. Ford has prior felony convictions for aggravated battery and burglary from Rock Island County, Ill. At sentencing, also set for Oct. 20, 2016, Ford faces a penalty of up to 10 years in prison, a fine of up to $250,000, and up to three years supervised release following release from prison. Assistant U.S. Attorney Don Allegro is prosecuting the case which was investigated by the Moline Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives.
Walker Hampton, 41 of Viola, Ill., pled guilty to robbery of U.S. government property from a post office, brandishing a firearm during a crime of violence, being a felon in possession of a firearm(s), and possession of stolen firearms. Hampton admitted to the Jan. 24, 2015, robbery of the Taylor Ridge, Ill., Post Office, during which he brandished a firearm at the two postal workers, and took money from a postal bag. Hampton was taken into custody on Feb. 25, 2015, by the Mercer County Sheriff’s Office. Following his arrest, in Hampton’s home, officers found the Jimenez Arms 9mm pistol Hampton used in the robbery. In addition, officers found a Mossberg 12-gauge shotgun and a Smith & Wesson .40 caliber handgun. Both of those weapons were found to have been stolen during a burglary of a home in Rock Island County, which Hampton admitted committing. Hampton has a prior felony conviction for possession of a controlled substance in Muscatine, Iowa. At Hampton’s sentencing, scheduled on Oct. 20, 2016, he faces up to 25 years in prison for the robbery, a consecutive seven years for brandishing a firearm during the crime, and up to 10 years in prison for the possession of a firearm and stolen firearms, up to a $250,000 fine and up to five years of supervised release. This case is being prosecuted by Assistant U.S. Attorney Linda Mott. The Rock Island County Sheriff’s Office, the Mercer County Sheriff’s Office, the U.S. Postal Inspection Service, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation of the charges.
Garrett County Developer Sentenced to Federal Prison in $5.7 Million Bank Fraud SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Samuel R. VanSickle, age 52, of Accident, Maryland today to two years in prison followed by five years of supervised release for conspiring to commit bank fraud arising from three fraudulent bank loans in which VanSickle received proceeds from the sale of real property in Garrett County, Maryland, and Cheat Lake, West Virginia, totaling over $5.7 million. Judge Garbis also ordered VanSickle to forfeit and pay restitution of $2,755,102.50, and forfeit his interest in 40 properties held in his name or in the names of others that are located in Maryland, West Virginia and Pennsylvania, up to the value of $2,755,102.50.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
VanSickle and co-defendant Louis Strosnider owned and developed property in Garrett County, Maryland. Strosnider operated Stony Brook Development Company, located in McHenry, Maryland,
According to his plea agreement, from December 2001 to May 2005, Strosnider fraudulently obtained real estate loans from banks to buy properties controlled, through aliases, by VanSickle. VanSickle concealed from the lenders his role as seller of the properties and recipient of the sales proceeds through fictitious identities such as “Donald Blunt, Trustee for Gospel Church,” “Donald Blunt, Trustee for Freedom Church,” “Equity Exchange,” “Unity Mortgage,” “Jacob Aiken” and “Allen Helms.” The scheme also involved fictitious down payments, inflated collateral, and false contracts.
For example, in 2002, VanSickle provided $600,000 for the purchase of Red Run, a restaurant and bed and breakfast which bordered on Deep Creek Lake in Garrett County, Maryland. In April 2003, VanSickle caused Red Run to be transferred for $0 to “Donald Blunt, Trustee for Gospel Church” - a fictitious church with a fictitious trustee. In February 2004, Strosnider signed a contract to buy Red Run from Gospel Church for $3 million. The contract recited a fictitious $750,000 down payment. Strosnider applied to a bank for a loan to complete the purchase of Red Run. When the bank required additional collateral, VanSickle supplied a timber contract for land in Garrett County with a valuation signed by “Paul Walsh” of “Noble Forest Consultants.” Both “Noble Forest Consultants” and “Paul Walsh” were fictitious. The settlement for the sale of the property was conducted by attorney Angela Blythe. Blythe failed to collect Strosnider’s funds to close the loan. At VanSickle’s direction, Blythe paid over the sales proceeds of $1.6 million to “Unity Mortgage,” which was VanSickle. “Unity Mortgage” did not, in fact, have a mortgage on Red Run.
VanSickle and Strosnider used similar fraudulent methods in Strosnider’s purchase from VanSickle of 5.87 acres on State Park Road, bordering Deep Creek Lake, and 116 acres of undeveloped land on Cheat Lake, West Virginia.
VanSickle received over $5.7 million in sales proceeds from the fraudulent transactions. Strosnider defaulted on all three loans. As a result of the scheme, the loss to the financial institutions was $2,755,102.50, the amount of the loans minus the recovery from foreclosure and sale of the collateral.
Louis W. Strosnider, III, age 50, of Oakland, Maryland, previously pleaded guilty to his participation in the conspiracy and awaits sentencing. In a related case, Angela M. Blythe, age 52, of Oakland, Maryland, was convicted by a federal jury on October 9, 2015, after a nine day trial, of conspiring with VanSickle to commit bank fraud, bank fraud, and two counts of making a false statement to a bank. U.S. District Judge William D. Quarles sentenced Blythe to a year and a day in prison, and entered an order requiring Blythe to forfeit $696,517 and pay restitution of $948,203.25.
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 praised the FBI for its work in the investigation and thanked Assistant United States Attorneys Joyce K. McDonald and Philip A. Selden, who prosecuted the case.
Gardiner Man Pleads Guilty to Wire Fraud ChargesRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Ervin Morrison III, 23, of Gardiner, Maine, pleaded guilty today in U.S. District Court to wire fraud charges.
According to court records, between about June 2014 and July 2015, Morrison entered into contracts promising goods and services to five individuals and companies and for which he collected over $27,000 in advance payments. At the time he entered the contracts, Morrison had no intention or ability to provide the goods and services and he did not provide them.
The defendant faces up to 20 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the Federal Bureau of Investigation, the Maine State Police, the Brunswick Police Department, and the Monson, Massachusetts Police Department.
Gainesville Defendant Sentenced to 10 Years in Prison for Child Sex TraffickingRead the Press Release
GAINESVILLE, FLORIDA – Tawanda LaKaye Burkett, 40, was sentenced today to 10 years in prison for sex trafficking of a minor. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
At Burkett’s trial, which concluded on January 28, 2016, the government presented evidence that in August 2014, Burkett, Black, and Carter, all of Gainesville, Florida, were involved in a scheme to make money using a 15-year-old girl to perform sex acts. The defendants posted the victim’s photo in an online advertisement on a website section for “escort services.” The true purpose of the advertisement was to offer the victim for commercial sexual activity. The defendants also provided the victim with a cellular telephone so that “clients” could contact her. When the “clients” responded to the advertisements, Burkett, Black, and Carter transported the victim to private residences and hotels for sexual activity. The defendants shared the proceeds of the victim’s commercial sex acts.
Codefendant Hal Bernard Black, 21, was sentenced on January 25, 2016, to 135 months in prison, and Codefendant Ranell Carter Jr., 25, is scheduled to be sentenced on July 25, 2016, at 3:30 p.m. at the United States Courthouse in Gainesville.
This case resulted from investigations by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Gainesville Police Department, and the Alachua County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Frank Williams.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Franklinton Man Sentenced for Structuring over $100,000 in Financial TransactionsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JERRY COX, age 72, of Franklinton, was sentenced today after previously pleading guilty to structuring financial transactions to avoid federal reporting requirements.
U.S. District Judge Nannette Jolivette Brown sentenced COX to five years probation and a $100 special assessment. In October 2015, COX pled guilty and cooperated with the United States, including testifying in the trial of United States v. Walter and Steven Reed.
According to court documents, in September 2011, COX made, and caused to be made, a series of cash withdrawals from Citizens Savings Bank and Resource Bank that were designed to evade certain reporting requirements under federal law, namely the obligation of financial institutions to report currency transactions over $10,000. COX did so as part of a pattern of activity totaling $102,050 in a twelve-month period. Specifically, COX caused a series of seven withdrawals on September 20, 2011, September 24, 2011, two on September 27, 2011, September 30, 2011, October 4, 2011, and October 11, 2011, in amounts between $7,650 and $9,500. COX used the Resource account to conduct seven additional withdrawals in the manner, and for the same purpose of avoiding reporting requirements, between July 24, 2012, and August 4, 2012, totaling approximately $39,900. COX was aware of the reporting requirements, and he engaged in the withdrawals to avoid causing the banks to generate reports.
U.S. Attorney Polite praised the work of the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
Former Loan Processor Indicted in Mortgage Fraud SchemeRead the Press Release
Tampa, Florida - United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Mayory Calvo (34, Doral) with one count of mortgage fraud conspiracy, two counts of bank fraud, and one count of loan and credit application fraud. If convicted, she faces a maximum penalty of 30 years in federal prison on each charge. The indictment also notifies Calvo that the United States is seeking a money judgment for the proceeds of the charged offenses.
According to the indictment and court proceedings, Calvo, who worked at Elite Mortgage Funding, participated in a mortgage fraud conspiracy where some conspirators entered into agreements to purchase properties for amounts in excess of the original asking price. The conspirators then inserted false and fraudulent information on mortgage loan applications, or Fannie Mae Form 1003s, that were submitted in support of the loan requests.
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Chris Poor and Assistant United States Attorney Jay Trezevant.
Former CEO of Community Action of Minneapolis Pleads Guilty to 16-Count Indictment for Conspiracy, Fraud and Theft of Public FundsRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of WILLIAM JAMES DAVIS, 65, for conspiring to steal funds from Community Action of Minneapolis (CAM). DAVIS pleaded guilty today before U.S. District Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minn.
“Improving people’s lives was the mission of Community Action of Minneapolis,” said U.S. Attorney Luger. “Instead, Bill Davis stole from those in need to line his own pockets. The evidence of fraud was overwhelming, and the defendant’s guilty plea to all of the charges against him is a just result.”
According to the defendant’s guilty plea, CAM’s primary funding sources included federal grants administered by the Minnesota Department of Commerce and Minnesota Department of Human Services. CAM also received funding from CenterPoint Energy and Xcel Energy in exchange for providing certain conservation and weatherization services to qualifying homeowners.
According to his guilty plea, DAVIS concealed his diversion of CAM funds to his personal use by charging the majority of his CAM-paid personal expenses to a slush fund on CAM’s books that was not subject to the same oversight as CAM’s state and federal grant proceeds. DAVIS could therefore instruct CAM’s fiscal staff to charge personal expenses to this slush fund with less risk of detection.
According to his guilty plea, DAVIS concealed from CAM’s Board of Directors that he was using his position as CAM’s CEO to divert CAM funds to his personal use and that of his family and friends.
According to his guilty plea, between March 2007 and October 2014, DAVIS diverted at least $5,000 per year in CAM funds intended to be used to provide services to low-income residents of Minneapolis to his own personal use and the use of his family and friends, including JORDAN DAVIS. As part of the scheme, DAVIS used CAM funds for personal expenses, including airline tickets, hotel stays, rental cars and a Caribbean cruise.
According his guilty plea, DAVIS also used CAM funds to pay for his personal vehicle, a 2011 Chrysler 300. In May 2011, DAVIS traded in a 2005 Chrysler 300 owned by CAM. He then used the $10,079.53 in proceeds from the trade-in of the CAM vehicle and $36,430 in additional CAM funds to buy a new car for himself.
According to his guilty plea, DAVIS also used CAM funds to pay his son JORDAN DAVIS for a no-show job at a Ben & Jerry’s ice cream shop operated by CAM as a PartnerShop near the University of Minnesota campus in Minneapolis. Ben & Jerry’s waived its standard franchise fees so that CAM operated the store to provide job and entrepreneurial training to underprivileged youth facing barriers to employment.
According to the defendant’s guilty plea, between 2002 and October 2006, WILLIAM DAVIS’s son JORDAN DAVIS worked as the manager of the Ben & Jerry’s PartnerShop. In October 2006, JORDAN DAVIS obtained employment with the Minneapolis Police Department, and thereafter stopped working at the Ben & Jerry’s.
According to the defendant’s guilty plea, DAVIS instructed CAM’s fiscal staff to continue issuing JORDAN DAVIS the full paycheck he had been receiving for managing the ice cream shop. From at least March 2007 until January 2011, J. DAVIS continued to receive his full paycheck, $1,320 biweekly, for his work at the Ben & Jerry’s, even though he was doing no work for the ice cream shop.
In April 2011, CAM closed the Ben & Jerry’s PartnerShop because CAM could no longer afford the rent for the store, and CAM terminated its youth job skills training program.
In October 2013, the Minnesota Department of Human Services (DHS) began an audit intended to determine whether CAM was using the federal and state grant funds that it received through DHS in accordance with the applicable contracts. DHS personnel sought documents and information about the purposes of various CAM expenditures.
According to the defendant’s guilty plea, DAVIS sent correspondence to the Commissioner of DHS containing false material representations about his personal travel.
On October 13, 2014, W. DAVIS was suspended from his position as CEO without pay.
This case is the result of an investigation conducted by the Federal Bureau of Investigation, United States Department of Health and Human Services Office of the Inspector General, Internal Revenue Service – Criminal Investigation and the United States Department of Energy Office of the Inspector General.
This case is being prosecuted by Assistant United States Attorneys Kimberly A. Svendsen and Amber M. Brennan.
Defendant Information:WILLIAM JAMES DAVIS, 65
Brooklyn Park, Minn.Convicted: • Conspiracy to commit theft concerning programs receiving federal funds, 1 count
• Mail fraud, 10 counts
• Wire fraud, 1 count
• Theft concerning programs receiving federal funds, 4 countsFormer Bureau of Prisons Employee Pleads Guilty to Felony OffenseRead the Press Release
FORT WORTH, Texas — A former Bureau of Prisons (BOP) employee assigned to Carswell Federal Medical Center (FMC) in Fort Worth, Texas, Yvonne Marrufo, appeared in federal court yesterday before U.S. Magistrate Judge Jeffrey L. Cureton and pleaded guilty to an indictment charging one count of sexual abuse with a ward, announced U.S. Attorney John Parker of the Northern District of Texas.
Marrufo, 41, of Fort Worth, faces a maximum statutory sentence of 15 years in federal prison and a $250,000 fine. She will remain on bond pending sentencing, which is set for October 27, 2016, before U.S. District Judge Terry R. Means.
According to documents filed in the case, Marrufo worked at Carswell FMC as a BOP Cook Supervisor. Beginning in approximately 2015, Marrufo engaged in a sexual act with an inmate she supervised at Carswell FMC.
The Office of the Inspector General for the Department of Justice conducted the investigation. Assistant U.S. Attorney Brian Poe is in charge of the prosecution.
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Florida Man Sentenced to 15 Months for Interstate StalkingRead the Press Release
Contact: James W. Chapman, Jr.
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Charles Mack, 51, of Clearwater, Florida, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to 15 months in prison to be followed by three years of supervised release for interstate stalking. Mack pleaded guilty to the charge on March 3, 2016.
Court records reveal that between January 2014 and May 2015, Mack sent numerous harassing emails and text messages to his ex-wife, who was living in Maine, despite her repeated requests that he stop the communications. Mack’s conduct caused the victim and her family substantial emotional distress.
This case was investigated by the FBI and the Falmouth Police Department.
Florida Department of Health Supervisor Charged with Accepting Bribe from Home BuildersRead the Press Release
A Florida Department of Health supervisor in Broward County was charged with accepting a bribe from home builders.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
The one-count Information charges Anthony Johnson, 58, of Tamarac, Florida, with extortion under color of official right, in violation of Title 18, United States Code, Section 1951. Johnson is scheduled to appear in federal court on Friday, June 17, 2016, at 10:00 a.m. before U.S. Magistrate Judge Dave Lee Brannon in West Palm Beach, Florida.
According to the Information, Johnson was an Environmental Supervisor at the Broward County office of the Florida Department of Health located in Fort Lauderdale, Florida. Two individuals were building a home in Southwest Ranches, Florida, and the home builders sought to obtain a series of approvals, including permits for sewage and water from the Florida Department of Health. On or about June 16, 2015, Johnson told one of the home builders that he would take care of the permits, “but you have to give me some money.” On or about June 22, 2015, the home builders met Johnson at a counter in the Broward County office of the Florida Department of Health. Johnson provided the homebuilders with approved permits for sewage and water. Johnson then escorted the home builders to the elevator and entered the elevator with the home builders. While in the elevator, the home builders provided the previously agreed-upon amount of $500 in U.S. currency to Johnson, which defendant Johnson placed in his pocket.
If convicted of the charges in the Information, Johnson faces a possible maximum statutory sentence of up to 20 years in prison.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
An Information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
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.
Florida Couple Sentenced to Prison for Involvement in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
Conspired to File Fraudulent Income Tax Returns Claiming Over $1.5 Million in Tax Refunds Using Stolen Names and Social Security Numbers
A Pembroke Pines, Florida couple was sentenced to prison for their role in a stolen identity tax refund fraud scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Wifredo Ferrer of the Southern District of Florida and Special Agent in Charge Kelly Jackson of the Internal Revenue Service–Criminal Investigation (IRS-CI).
On June 16, U.S. District Judge Beth Bloom for the Southern District of Florida sentenced Rhonda Perry Gittens, 35, to serve 75 months in prison, followed by three years of supervised release. Gittens’ boyfriend and co-conspirator, Walther Wilson Godfrey, 37, was previously sentenced on April 15 to serve 75 months in prison, followed by three years of supervised release. Judge Bloom also ordered Godfrey and Gittens to pay $792,442 in restitution to the IRS. Godfrey and Gittens pleaded guilty in January to one count of a multi-object conspiracy to defraud the United States, commit wire fraud and commit aggravated identity theft, one count of aggravated identity theft and one count of access device fraud.
“The sentences imposed by Judge Bloom reflect the serious harm caused by the defendants’ scheme to enrich themselves at the expense of the U.S. Treasury and their identity theft victims,” said Acting Assistant Attorney General Ciraolo. “The defendants attempted to hide behind a veneer of corporate and nominee identities that ultimately provided no bar to the investigative efforts of our law enforcement partners. Return preparers who seek to profit through false tax returns face harsh punishment and the result in this case should deter other individuals from engaging in similar schemes.”
“This sentence should serve as a warning to anyone who seeks to commit tax fraud or identity theft that federal law enforcement resources will be marshalled against them to discover their crimes and bring them to justice," said U.S. Attorney Ferrer. "We will continue to work tirelessly with all our law enforcement partners to prosecute those crimes.”
“IRS Criminal Investigation (CI) will continue to investigate those who attempt to defraud our nation’s tax system, and we will continue to fight for the innocent victims whose identities are being used in these stolen identity tax refund fraud schemes,” stated Special Agent in Charge Jackson of IRS-CI. “We are pleased with these sentences, as the defendants are being held accountable for attempting to steal more than $1.5 million from the IRS, possessing device-making equipment for driver’s licenses and credit cards, and recruiting another individual to participate in the crime.”
According to court documents and evidence presented at the sentencing hearing, between July 2009 and August 2014, Godfrey, Gittens and others conspired to defraud the United States by filing false federal income tax returns using stolen identities. Gittens owned and operated 2G, Inc., a tax return preparation business, and G&G Check Cashing Inc., a check cashing business, both of which were located in Pembroke Pines. Godfrey and Gittens obtained the personal identification information of actual individuals, some deceased, including names, social security numbers, addresses and dates of birth, without the individuals’ authorization, to prepare and file false income tax refund claims for the years 2009 through 2011. Godfrey and Gittens recruited a co-conspirator, Marc Brown, to put Electronic Filing Identification Numbers (EFINs) in his name through which fraudulent income tax returns would be filed. In addition, Godfrey and Gittens directed Brown to set up companies and bank accounts in his name to negotiate the fraudulently obtained income tax refund checks. Godfrey and Gittens filed more than 700 fraudulent tax returns requesting more than $1.5 million in income tax refunds. In addition, Godfrey and Gittens possessed device-making equipment including an identification card printer, a credit card embosser, hologram stickers for driver’s licenses and credit cards and blank credit cards.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Ferrer commended special agents of IRS-CI, who investigated the case and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Five Ms-13 Members Admit Racketeering, Murder Conspiracy, Gang ActivityRead the Press Release
NEWARK, N.J. – Five members of the international street gang “Mara Salvatrucha” (also known as MS-13) – including two top-ranking members who were directing gang operations from California prison cells – today admitted their roles in crimes including racketeering, conspiracy to commit murder, extortion and drug trafficking, U.S. Attorney Paul J. Fishman announced.
The defendants include Amilcar Romero, 47, a/k/a “Chichi,” and Joel Antonio Cortez, 41, a/k/a “Pee Wee,” both currently serving state prison sentences in California, and both of whom served as chief deputies to the leader of Mara Salvatrucha’s “national program.” They pleaded guilty today before U.S. District Judge Stanley Chesler in Newark federal court.
According to documents filed in this case and statements made in court:
The “national program,” also known as the “unification of the barrio,” sought to bring all of Mara Salvatrucha’s local sets, or “cliques,” in the United States under a single, cohesive leadership structure. The goal of the national program was to increase the nationwide collection of extortion proceeds, known as “rent,” and to use these rent-collection networks to establish new drug distribution channels from California to the East Coast. Mara Salvatrucha leaders allegedly struck a deal with the Mexican Mafia, a California prison gang, and certain Mexican drug cartels, including La Familia Michoacana, to supply methamphetamine and other drugs at cheap prices to gang members on the East Coast, including in New Jersey.
Three members of the “Hudson Locotes Salvatruchas”—a local branch, or “clique,” based in Hudson County, New Jersey, pleaded guilty to their roles in conspiring to murder an MS-13 member that had violated the gang’s rules and the member’s brother, who was alleged to belong to a rival gang. Luis Lopez-Guzman, 26, a/k/a “Nino, of Union City, New Jersey;” Hector Carranza-Solis, 32, a/k/a “Blackie;” of West New York, New Jersey, and Rudy Gutierrez, 24, a/k/a “Chiqui,” of Union City, admitted that they participated in telephone calls and other discussions with the leadership of the gang in the United States and El Salvador to seek permission to kill the rival gang members. Law enforcement learned of the murder plot during the course of this investigation and arrested the defendants before it could be completed.
Romero and Cortez served as the top deputies to Jose Juan Rodriguez-Juarez. Rodriguez-Juarez was a made member, or “carnale,” in the Mexican Mafia, and he leveraged his status within the powerful prison gang to assert control over all Mara Salvatrucha activities in the United States. Within Mara Salvatrucha, Rodriguez-Juarez was known by his gang moniker, “Dreamer,” but when he assumed control of the national program, he became known as “Sacerdote,” Spanish for “the priest.”
By autumn 2013, Rodriguez-Juarez had assigned Romero to serve as the primary point-of-contact between the leadership of Mara Salvatrucha in the United States and El Salvador, while Cortez assumed responsibility for recruiting Mara Salvatrucha cliques on the East Coast to join the national program. Both are also alleged to have ordered violence on the East Coast, including Cortez’s authorization of the November 2013 murder plot in Hudson County, and Romero’s order to east coast-based gang members to collect money on behalf of the gang by force and violence. Romero and Cortez collaborated with MS-13 gang leaders in New Jersey, Virginia, Maryland, and elsewhere to establish a distribution chain for cheap Mexican cartel drugs, including heroin and crystal methamphetamine. Part of the profit from that drug distribution chain would then be funneled back to the gang’s leadership in California to further promote the gang’s criminal activity.
All five defendants who pleaded guilty today will be sentenced Sept. 14, 2016. (See chart below.)
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s guilty pleas. The investigation also involved substantial assistance from multiple FBI field offices, including the Los Angeles, California, office. U.S. Attorney Fishman also thanked the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, and the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace H. Park, for their work on this case. He also acknowledged the U.S. Attorney’s Office for the Central District of California for their assistance in the ongoing investigation.
The government is represented by Assistant U.S. Attorneys James M. Donnelly and J. Jamari Buxton of the U.S Attorney’s Office Organized Crime/Gangs Unit in Newark.
Defense counsel:
Romero: John P. McDonald Esq., Somerville, New Jersey
Cortez: Howard Brownstein Esq., Union City, New Jersey
Carranza-Solis: Laurie M. Fierro Esq., Kinnelon, New Jersey
Gutierrez: Jerome A. Ballarotto Esq., Trenton, New Jersey
Lopez-Guzman: A. Paul Condon Esq., Jersey City, New Jersey
Maximum Penalties
Count
Charge
Defendants
Maximum Penalty
Racketeering Conspiracy
Romero
Cortez
Gutierrez
Life in prison
(Romero, Cruz)
20 years in prison
(Gutierrez)
4
Conspiracy to Commit Murder in Aid of Racketeering
Gutierrez
Carranza-Solis
Lopez-Guzman
10 years in prison
Five Members of A Bronx-Based Drug Trafficking Organization Arrested on Narcotics Conspiracy and Money Laundering ChargesRead the Press Release
A two-count indictment was unsealed this week in the United States District Court in Brooklyn charging six defendants with conspiracy to distribute cocaine and/or money laundering. Yesterday, a United States Postal Carrier assigned to the Highbridge Postal Station in the Bronx was arraigned before Magistrate Judge Viktor V. Pohorelsky at the federal courthouse in Brooklyn. Today, four additional members of the organization were arrested. Three of the defendants are scheduled to be arraigned today before Magistrate Judge Pohorelsky. The fifth defendant, Carlos Bello Tirado, will be arraigned today in the Middle District of Florida, and the government will seek his removal to New York.
The charges and arrests were announced by Robert L. Capers, United States Attorney for the Eastern District of New York, Angel M. Melendez, Special Agent-in-Charge, New York Field Office, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI); Phillip R. Bartlett, Postal Inspector-in-Charge, United States Postal Inspection Service, New York Field Office, and Eileen Neff, Special Agent-in-Charge, United States Postal Service, Office of Inspector General (OIG), Northeast Field Office.
As detailed in the indictment and other court filings by the government, between approximately 2011 and 2013, the defendants Kelvin Cisnero Santos, Saul Ovalles Corniel, Carlos Bello Tirado, Ernest Pena, and Jermaine Sandifer were members of a large-scale drug trafficking organization based in the Bronx. The organization purchased hundreds of kilograms of cocaine from suppliers in Puerto Rico, packaged the drugs, and sent the drug-laden parcels through the mail from Puerto Rico to pre-arranged addresses in the Bronx. The defendant Sandifer, a United States postal carrier, intercepted those parcels at the post office and delivered them to members of the organization. According to the detention letter filed by the government, each parcel sent to Sandifer contained approximately one to two kilograms of cocaine, and Sandifer was paid between $1,000 and $5,000 per parcel. The defendants also conspired to mail cocaine from Puerto Rico to numerous post office boxes operated by the organization in Queens, Brooklyn, the Bronx, and New Jersey. The cocaine was sold to various distributors in New York and New Jersey.
Defendants Santos, Corniel, Tirado, Pena, and others laundered proceeds from the drug sales through bank accounts in the New York metropolitan area to pay suppliers and make additional purchases of cocaine.
“However creative drug traffickers are in delivering their lethal product to our shores and the streets of our communities, we and our partners in law enforcement are committed to stopping them. The defendants will now be held to account,” stated United States Attorney Capers. Mr. Capers extended his grateful appreciation to the Drug Enforcement Administration, New York Field Office; the Internal Revenue Service, Criminal Investigations, New York Field Office; the Port Authority of the New York and New Jersey Police Department; the New York City Police Department; and the Queens District Attorney’s Office for their assistance in this case.
“This U.S. postal employee allegedly used his trusted position as a letter carrier to conspire with others to flood our streets with hundreds of kilos of cocaine,” said Special Agent-in-Charge Melendez. “HSI and its law enforcement partners are committed to dismantling drug trafficking organizations that wreak havoc on our neighborhoods.”
“Postal Inspectors along with our law enforcement partners take the security and safety of the U.S. Mail very seriously, and will vigorously pursue and bring to justice anyone who uses our nations mail system to facilitate the transport of illegal drugs,” said Inspector-in- Charge Bartlett.
Special Agent-in-Charge Neff stated, “USPS-OIG investigations help to maintain the integrity of Postal Service processes and personnel. In rare situations such as this, with a Postal Service employee allegedly abusing a position of trust, our Special Agents work jointly with our law enforcement partners to investigate those who transport illegal narcotics through the U.S. Mail.”
The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face a mandatory minimum sentence of ten years and a maximum penalty of life imprisonment.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Douglas M. Pravda and Julia Nestor are in charge of the prosecution.
The Defendants:
KELVIN CISNERO SANTOS
Age: 48
Bronx, New YorkSAUL OVALLES CORNIEL
Age: 40
Newark, New JerseyCARLOS BELLO TIRADO
Age: 40
Leesburg, FloridaERNEST PENA
Age: 40
Bronx, New YorkJermaine sandifer
Age: 40
Perth Amboy, New JerseyE.D.N.Y. Docket No. 16-CR-309
Federal Jury Finds Washington County Man Guilty on Charges of Child Sexual ExploitationRead the Press Release
PITTSBURGH – On June 15, 2016, after deliberating for approximately two hours, a federal grand jury of eight men and four women found Christopher Welshans guilty of Distribution and Possession of Material Depicting the Sexual Exploitation of a Minor, United States Attorney David J. Hickton announced today.
Christopher Welshans, age 39, of Atlasburg, PA, was tried before United States District Judge Donetta W. Ambrose in Pittsburgh, PA.
According to Assistant United States Attorneys Jessica Lieber Smolar and Shanicka L. Kennedy, who prosecuted the case, on or about February 11, 2014, Christopher Welshans distributed videos and images containing material depicting the sexual exploitation of minors. In addition, on or about March 21, 2014, Christopher Welshans knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
United States District Judge Ambrose scheduled sentencing for October 24, 2016 at 10 am. The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Pennsylvania Office of the Attorney General and Federal Bureau of Investigation conducted the investigation leading to the prosecution of Christopher Welshans.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Court Sentences Davenport Man for Possessing Child PornographyRead the Press Release
DAVENPORT, IA- On June 15, 2016, Philipp Johnson, age 40, of Davenport, Iowa, was sentenced by Chief United States District Court Judge John A. Jarvey to 120 months imprisonment on the charge of possession of child pornography, announced United States Attorney Kevin VanderSchel. Johnson was also ordered to serve 10 years of supervised release following his prison term, pay $100 towards the Crime Victims Fund, and pay $3,000.00 to each of the two identified victims. Forfeiture of the electronic device used to possess the child pornography was also ordered.
Johnson pled guilty to this crime on January 25, 2016. On December 1, 2014, the Davenport, Iowa Police Department was notified that Johnson’s cellular phone contained suspected child pornography. A forensic examination showed that the phone was activated on October 24, 2014, and last accessed November 20, 2014. The examination revealed that the user was actively browsing the internet for pornographic websites. The examiner found 496 images containing child pornography, some of which showed children under the age of twelve years old and a minor engaged in bestiality. Upon searching the Iowa Sex Offender Registry, it was confirmed that Johnson is a registered sex offender with the State of Iowa, for a prior conviction of Sexual Abuse 3rd (Iowa Code 709.4) on August 4, 2000. His victim was a female between the ages of 0-13.
This matter was investigated by the Davenport Police Department and the National Center for Missing and Exploited Children. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Childhood initiative.
Eagle Butte Woman Sentenced for Voluntary ManslaughterRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, woman convicted of Voluntary Manslaughter was sentenced on June 14, 2016, by U.S. District Judge Roberto A. Lange.
Richelle Bowker, age 37, was sentenced to 126 months in custody, followed by 3 years of supervised release, $9,464.76 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Bowker was indicted by a federal grand jury for Second Degree Murder on July 14, 2015. She pled guilty to Voluntary Manslaughter on March 8, 2016.
Bowker and the victim had been in a relationship for approximately eight years. The conviction stemmed from an incident on June 9, 2015, when Bowker and the victim began arguing. At some point, the victim took Bowker’s phone and broke it in half. Bowker went to the kitchen, grabbed a steak knife and stabbed him with it six times. The victim was stabbed three times in his chest, twice in his right shoulder and back, and once in his left hand. He died as a result of the multiple stab wounds.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Jay Miller prosecuted the case.
Bowker was immediately turned over to the custody of the U.S. Marshals Service.
Eagle Butte Man Sentenced for Possession of Firearm by Prohibited PersonRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Possession of Firearm by Prohibited Person was sentenced on June 13, 2016, by U.S. District Judge Roberto A. Lange.
Nelson Red Bird, age 26, was sentenced to 37 months in custody, 2 years of supervised release, a $500 fine, and a special assessment of $100 to the Federal Crime Victims Fund. Red Bird also forfeits $1,157 in cash, a firearm and ammunition seized during a search of his vehicle.
Red Bird was indicted by a federal grand jury on January 21, 2016. He pled guilty on March 8, 2016.
Red Bird was convicted of a felony in federal court in November 2010 and was sentenced to 40 months of custody. His initial supervised release began in 2013, but was revoked in March 2015 when urine samples tested positive for both marijuana and methamphetamine. Red Bird’s second term of supervised release began on June 8, 2015. On August 24, 2015, Red Bird absconded from the Community Alternatives of the Black Hills. On August 25, 2015, Cheyenne River Sioux Tribe Law Enforcement was dispatched to investigate a report that a man in a white vehicle in a motel parking lot appeared to be under the influence. Due to Red Bird’s suspicious actions inside the vehicle and his providing false names to the officers, Red Bird was detained and a police service dog was deployed around the vehicle. When the dog indicated on the driver side door, the vehicle was searched and marijuana, drug paraphernalia, $1,157 in cash, a shotgun and ammunition were found in the vehicle.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Red Bird was immediately turned over to the custody of the U.S. Marshals Service.
District Man Sentenced to 30 Months in Prison for Fraud Schemes Targeting Tenants at Apartment Complex He ManagedRead the Press Release
WASHINGTON – Tyi Michael Tunstall, 30, of Washington, D.C., was sentenced today to 30 months in prison for various schemes in which he used personal identifying information from others to steal more than $75,000, announced U.S. Attorney Channing D. Phillips and Brian J. Ebert, Special Agent in Charge, Washington Field Office, U.S. Secret Service.
At the time of these offenses, Tunstall was on probation in an earlier fraud case. He used some of the proceeds of these schemes to pay his court-ordered restitution in the earlier case.
Tunstall pled guilty in March 2016, in the U.S. District Court for the District of Columbia, to wire fraud and obstruction of justice. He was sentenced by the Honorable James E. Boasberg. Following his prison term, Tunstall will be placed on three years of supervised release. He also must perform 100 hours of community service and pay $21,614 in restitution and an identical amount as a forfeiture money judgment.
Tunstall previously pled guilty in September 2013 to a charge of mail fraud. He was sentenced in March 2014 in the U.S. District Court for the District of Columbia to five years of probation, with special conditions that he complete six months of home confinement to be followed by 20 weekends in jail. He also was ordered to pay $61,543 in restitution in that case.
According to a statement of offense, signed by the defendant as well as the government, Tunstall worked from July 2014 to July 2015 for a company that managed a senior citizens’ apartment complex in Washington, D.C., first as an office assistant and later as the complex’s manager. From Sept. 8 through Oct. 27, 2015, he worked at a staffing agency that assigned him to a call center for three credit unions. He used both workplaces as a means to carry out his schemes, as outlined below:
Identity Theft and Fraud at the Apartment Complex:
In one scheme, Tunstall stole the personal identifying information of an 83-year-old resident of the complex and used the information to open multiple accounts at financial institutions from March 2015 to October 2015. He used one card multiple times, causing American Express to incur $1,785 in losses. Tunstall also placed orders on a credit account at Montgomery Ward, causing $225 in losses.
In a separate scheme, Tunstall diverted to himself at least 22 checks and money orders from tenants to the apartment complex, totaling $8,723. These checks and money orders were intended to be used for rent, cable and community room rental. Tunstall added his name to the payee and/or memo line of the checks and money orders and kept them for his personal use.
Tunstall also created 18 additional counterfeit checks, using the names of the apartment complex and two other persons whose information he obtained. Some of these checks were returned, but Tunstall eventually received $1,640.
Identity Theft and Fraud at the Call Center:
While working at the credit union call center, Tunstall accessed a credit union member’s bank accounts. He created a counterfeit check using this account information in the amount of $61,525 and deposited it into his personal bank account. He also transferred $20,000 of the victim’s money to an account that he controlled and that he had set up in the name of the 83-year-old victim.
Tunstall used $52,512 of the proceeds from these schemes to pay off his restitution balance in the earlier case at the U.S. District Court for the District of Columbia.
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In addition to these acts, while he was on probation, Tunstall made a series of false representations to his probation officer and submitted forged documents to the Court, regarding his employment and other issues. This led to a probation revocation hearing on Oct. 29, 2015. At that time, Tunstall told the Court that he was able to pay the balance of his restitution because his grandmother had provided the money. In fact, as Tunstall well knew, he used the money that he had fraudulently obtained from others to pay off the restitution balance. His probation was revoked after the hearing and he has remained in custody ever since.
In announcing the sentence, U.S. Attorney Phillips and Special Agent in Charge Ebert commended those who investigated the case from the Secret Service’s Washington Field Office. They also expressed appreciation for the assistance provided by the Montgomery County, Md. Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Thomas Swanton, who assisted with forfeiture issues; Criminal Investigator Nicole Hinson; Document Management Analyst John Lowell; Paralegal Specialist Christopher Toms, and Victim/Witness Advocates Yvonne Bryant and James Brennan.
Finally, they commended the work of Assistant U.S. Attorney Peter C. Lallas, who prosecuted the matter.
District Man Sentenced to 21 Years in Prison for Child Pornography and Sexual Abuse ChargesRead the Press Release
WASHINGTON – Franklin “Giovanni” Torres, 33, of Washington, D.C., has been sentenced to 21 years in prison on child pornography and sexual abuse charges involving a teenage boy, U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), announced today.
Torres was found guilty by a jury on March 11, 2016, in the U.S. District Court for the District of Columbia, of production of child pornography, distribution of child pornography, possession of child pornography, and first-degree sexual abuse of a minor. He was sentenced on June 15, 2016, by the Honorable Senior Judge Ellen S. Huvelle. Following completion of his prison term, he will be placed on supervised release for the rest of his life.
According to the government’s evidence, Torres resided from January 2014 until April 2015 with the victim’s family at an apartment in Northwest Washington. The victim, a teenage boy, had only been in the U.S. for less than two years since immigrating from El Salvador and reuniting with his parents, who had come to the U.S. several years earlier, planning to obtain jobs and then send for their son. The boy’s parents allowed Torres to stay in their apartment after he lost his job and needed a place to stay. After Torres was living with the family for several months, the victim’s mother discovered a naked photo of a male child with his face obscured on the defendant’s Facebook page. The boy in the photo turned out to be the victim, and the photo was taken by Torres during an incident in which Torres had sexually abused him.
Shortly after the victim’s mother confronted Torres about the photo, he deleted it from Facebook and apologized to her. The victim’s mother later surreptitiously obtained a copy of the deleted photo from Torres’s cell phone, and she found additional naked photos of the victim. She and her son reported the activities to the police several months later, after Torres moved out of their apartment. The boy also revealed to police that Torres sexually abused him.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's 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 www.projectsafechildhood.gov
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Chief Lanier commended the work of those who investigated the case from the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Joyce Arthur and Troy Griffith; Information Technology Specialists Anisha Bhatia and Aneela Bhatia, Criminal Investigator John Marsh, and Victim/Witness Advocate Yvonne Bryant. Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Andrea L. Hertzfeld and Denise A. Simmonds, who prosecuted the case.
Department of Justice and the National Institute of Standards and Technology Name Two Experts as New Members of National Commission on Forensic ScienceRead the Press Release
The Department of Justice and the Department of Commerce’s National Institute of Standards and Technology (NIST) today announced the appointment of Rebecca J. Ferrell, Ph.D. and Sgt. Troy Lawrence to the National Commission on Forensic Science.
The commission, created in 2013, develops forward-looking policy recommendations for the Attorney General to enhance the practice and improve the reliability of forensic science.
The commission is co-chaired by Deputy Attorney General Sally Q. Yates and Under Secretary of Commerce for Standards and Technology and NIST Director Dr. Willie E. May. Deputy Assistant Administrator Nelson Santos of the Drug Enforcement Administration’s Office of Forensic Sciences and Special Assistant to the NIST Director for Forensic Science John M. Butler serve as vice-chairs.
“The commission has been diligently developing important recommendations to strengthen forensic science in this country. These two new members will ensure that the commission continues to benefit from a wide range of perspectives, including those from the scientific community and from state and local law enforcement,” said Deputy Attorney General Yates. “Dr. Ferrell and Sgt. Lawrence are eminently qualified to continue the good work of the commission.”
“Since its inception, the Commission has benefitted from the contributions of some of America's most prominent scientists and forensic practitioners,” said Under Secretary May. “I have no doubt that our newest commissioners will continue this proud tradition as we work together to strengthen the science that underpins the forensic evidence used in the U.S. judicial system.”
Dr. Ferrell is the Program Director for the Biological Anthropology Program at the National Science Foundation in Arlington, Virginia. She is replacing outgoing Commissioner Mark Weiss who recently retired from the National Science Foundation. Sgt. Lawrence is the Director of the Digital Forensic Lab for the Fort Worth Police Department. He is replacing Bill Crane, who will be relocating to a new position overseas.
The commission includes federal, state and local forensic science service providers; research scientists and academics; law enforcement officials; prosecutors, defense attorneys and judges; and other stakeholders from across the country. This breadth of experience and expertise reflects the many different entities that contribute to forensic science practice in the United States and will ensure that these broad perspectives are represented on the commission and in its work.
The commission was established in 2013 and re-chartered for another two-year period in April 2015. The new members announced today are replacing individuals whose tenures with the commission recently ended.
The commission’s next meeting will be held from June 20 to 21, at the Office of Justice Programs, 3rd Floor Main Conference Room, 810 7th Street, N.W., Washington, D.C. 20531. More information about the commission can be found at http://www.justice.gov/ncfs.
Daughter Who Helped Father Sell Heroin and Cocaine in Monroe and Wayne Counties Sentenced to 27 Months in PrisonRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 26-year-old woman who admitted to participating in a heroin and cocaine trafficking conspiracy headed by her father in Monroe and Wayne Counties in 2011-2014, was sentenced to 27 months in prison today by U.S. District Court Judge Malachy E. Mannion in Scranton.
According to United States Attorney Peter Smith, the defendant, Rubie Cruz, of Tobyhanna, previously pleaded guilty to conspiracy to distribute heroin and cocaine. Cruz admitted to being responsible for the distribution of more than 80 grams of heroin, which is equivalent to more than 2000 retail bags of heroin.
Cruz was indicted by a federal grand jury in Scranton in August 2014, as a result of an investigation by agents of the Drug Enforcement Administration, investigators from the Pennsylvania State Police, the Wayne County District Attorney’s Office, and Pocono Mountain Regional Police.
Two of Cruz’s siblings, Tiffanyann Cruz, age 22, and Brandon Cruz, age 24, were previously sentenced to prison for their roles in the drug conspiracy.
Carlos Cruz, the father who was a leader of the conspiracy, was previously sentenced to eight years in prison.
Judge Mannion also ordered Rubie Cruz to serve three years on supervised release following her prison sentence.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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Danbury Man Sentenced to 9 Years in Prison for Trafficking Oxycodone, Cocaine and MarijuanaRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALFRED CATINO, also known as “Alphonse Catino,” “Frank Ross,” “Frank Russo,” “Anthony Vitacco,” “Chico,” “the Old Man” and “Herbie,” 75, of Danbury, was sentenced today by U.S. District Judge Jeffrey Alker Meyer in New Haven to 108 months of imprisonment, followed by five years of supervised release, for trafficking narcotics.
This matter stems from a year-long investigation headed by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and Norwalk Police Department into the distribution of oxycodone, cocaine and marijuana in Fairfield County. A total of 16 individuals were charged as a result of the investigation, which revealed that CATINO and Demetrios “Jimmy” Papadakos were long-time associates who headed the narcotics trafficking ring.
CATINO has been detained since arrest on May 8, 2012. On June 24, 2014, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine, oxycodone and marijuana.
CATINO’s extensive criminal history includes multiple federal convictions for narcotics trafficking. He received his first federal conviction in 1967 for selling 115 grams of heroin to an undercover DEA agent. He was most recently convicted in 1998 and received a sentence of 140 months of imprisonment.
Papadakos, of Danbury, pleaded guilty and, on December 17, 2014, was sentenced to 121 months of imprisonment.
This matter was investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Norwalk Police Department, with assistance provided by the Connecticut State Police and the Bridgeport, Stamford, Stratford and Westport Police Departments. The case is being prosecuted Assistant U.S. Attorneys Vanessa Richards and Michael Runowicz.
Credit Union robber convicted at trialRead the Press Release
Evansville – United States Attorney Josh J. Minkler announced today that a Bridgeport, Illinois, man has been convicted of credit union robbery, carrying a firearm in furtherance of a crime of violence, and being a felon in possession of a firearm. Elmer F. Wiman, 68, was convicted following a jury trial before United States District Court Judge Larry J. McKinney, in Evansville. The investigation which led to the charges against Wiman was a cooperative effort by the Vanderburgh County Sheriff’s Department, the Indiana State Police, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
“Threatening employees in a federally protected financial institution with a handgun will not be tolerated,” said Minkler. “Reducing violent crime in our communities is one of my office’s highest priorities.”
Government attorneys presented evidence at trial that on March 17, 2015, at approximately 1:00 p.m., law enforcement officers were dispatched to the Heritage Federal Credit Union, 331 E. Boonville-New Harmony Road, on a report of a bank robbery. Witnesses described the suspect as a white male with a denim hat, denim clothing, and white gloves. Witnesses advised that the suspect was armed with a handgun and demanded the tellers to provide him with the Credit Union’s money while displaying a handgun. He then put the currency provided in a cooler and drove away in a gray Ford Taurus.
Indiana State Police troopers received the description of the vehicle and the suspect and conducted a traffic stop of a white male driving a vehicle that matched that description. The vehicle pulled into a gas station in Haubstadt, Indiana, a few miles immediately north of the robbery location. While conducting the traffic stop, troopers saw cash and a handgun inside the vehicle. The driver of the vehicle, identified as Elmer Floyd Wiman, was taken into custody. The vehicle contained a handgun, cooler, a hat like the one worn by the robber, white gloves, and approximately $3,091 in United States currency, nearly the exact amount believed to have been stolen from the Credit Union.
Wiman was taken into custody and transported to the Vanderburgh County Sheriff’s Department Command Post and interviewed. Wiman admitted that he robbed the Credit Union in order to get money to cover bills. Wiman reported that he planned the robbery over the previous two weeks, including conducting surveillance of the location before the robbery. The car Wiman was driving is owned by his former wife. She allowed Wiman to borrow the car after Wiman told her he needed it to visit a friend. Wiman switched the license plates on the car prior to the robbery and placed tape over the make and model identifiers on the car to avoid being caught.
According to Assistant United States Attorneys Kyle Sawa and Todd Shellenbarger who are prosecuting this case for the government, Wiman faces a term of imprisonment of up to 20 years for robbery of the credit union, up to a 10 year term of imprisonment for being a felon in possession of a firearm, and up to life in prison for use of a firearm during a crime of violence. A sentencing hearing will be set before Judge McKinney.
Conneaut Lake Man Charged with Possessing and Distributing Child PornographyRead the Press Release
ERIE, Pa. - A resident of Conneaut Lake, Pennsylvania, has been indicted by a federal grand jury in Erie on charges of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
The two-count indictment named John P. Hoffman, 53, as the sole defendant.
According to the indictment presented to the court, Hoffman distributed and possessed computer images depicting minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Coalgate Man Sentenced to 24 Months Probation, $13,400 Restitution for Theft of Government FundsRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that JOHN RICHARD FLOURNOY, age 47, of Coalgate, Oklahoma, was sentenced to 24 months of probation and was ordered to pay $13,402.50 in restitution, for THEFT OF GOVERNMENT FUNDS, in violation of Title 18, United States Code, Section 641 and a FORFEITURE ALLEGATION.
The charges arose from an investigation by the Social Security Administration, Office of Inspector General. The defendant was indicted in December 2015 and pled guilty in January 2016.
The Indictment alleged that beginning in or about February, 2011, and continuing until on or about December 23, 2013, within the Eastern District of Oklahoma, the defendant, did willfully and knowingly steal and purloin money of the Social Security Administration, a department or agency of the United States, namely, Social Security Administration Supplemental Security Income payments to which he knew he was not entitled, having a value in excess of $1,000.00.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Rob Wallace represented the United States.
Cleveland attorney convicted of money laundering for accepting $20,000 in purported drug profitsRead the Press Release
A Cleveland attorney was convicted of money laundering for accepting $20,000 in purported drug proceeds and agreeing to launder the money, said Carole Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Matthew J. King, 45, was convicted on one count of attempted money laundering and two counts of money laundering following a weeklong jury trial. He is scheduled to be sentenced by U.S. District Judge Donald C. Nugent on Aug. 30.
King accepted $20,000 in cash purported to be the proceeds of the sale of narcotics. He then wrote two checks totaling $4,000 in early 2014, according to trial testimony and court documents.
This case was prosecuted by Assistant U.S. Attorneys Michelle M. Baeppler and Margaret A. Sweeney following an investigation by the Northern Ohio Law Enforcement Task Force. The NOLETF is a task force comprised of investigators from the Federal Bureau of Investigation, Cleveland Division of Police, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Cuyahoga County Sheriff’s Office, Ohio Bureau of Criminal Investigation and the police departments of Cleveland Heights, Euclid, Lakewood, the Regional Transit Authority, Westlake and Shaker Heights. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area initiatives, which supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
Chelmsford Man Convicted of Defrauding Disabled Veterans Program of More Than $100 MillionRead the Press Release
BOSTON – Yesterday, a federal jury found David E. Gorski, of Chelmsford, guilty of conspiracy to defraud the United States and wire fraud.
The jury found that Gorski conspired to defraud the United States by impairing the lawful governmental function of the Department of Veterans Affairs, the General Services Administration, the Army, and the Navy in the implementation and administration of the Service Disabled Veteran Owned Small Business (“SDVOSB”) Program.
Gorski established a company, Legion Construction, Inc., in 2006 after recruiting a disabled veteran of the Korean War to act as the company’s straw owner for the sole purpose of obtaining federal construction contracts set aside under the SDVOSB Program. The purpose of the SDVOSB program is to provide federal contracting assistance to service-disabled veterans who own small businesses by creating set-aside and sole source acquisitions for such businesses. When the veteran’s absence from the business became too conspicuous, Gorski hired a second disabled veteran, Peter Ianuzzi, to serve as the figurehead owner of Legion. Legion acquired more than $110 million in federal contracts between 2006 and November 2010, after Gorski falsely represented to federal contracting officers that the company was owned and operated by service-disabled veterans.
In March 2010, a different SDVOBS registered a bid protest against Legion, alleging that Legion should not have been awarded a contract with the VA at its medical center in White River Junction, VT. The company specifically challenged Legion’s SDVOSB status, noting that it appeared that Gorski, not one of the veterans, was the person really running Legion. After retaining the services of a large Boston law firm to assist him, Gorski filed an opposition to the bid protest that contained false information. The Small Business Administration denied the bid protest based on Legion’s submission. Gorski then began exploring ways to siphon money from Legion that would not appear as compensation exceeding the pay of the nominal veteran owner, Ianuzzi, in violation of federal regulations, including Ianuzzi “gifting” him $900,000 and establishing private bank accounts into which the company would deposit $2.5 million for Gorski’s benefit. Before the bank accounts could be opened, however, a federal grand jury issued subpoenas to Legion and several witnesses.
Gorski faces up to five years in prison, to be followed by up to three years of supervised release and a maximum fine of $250,000 on the count of conspiracy to defraud the United States. On the wire fraud counts, Gorski faces up to 20 years in prison, to be followed by up to three years of supervised release and a maximum fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Jeffrey Hughes, Special Agent in Charge, Department of Veterans Affairs, Office of the Inspector General, Northeast Field Office; Luis A. Hernandez, Special Agent in Charge, General Services Administration, Office of the Inspector General; Kevin Kupperbusch, Special Agent in Charge, Small Business Administration, Office of the Inspector General; Michael D. Conner, Regional Agent in Charge, U.S. Army Criminal Investigation Command, Boston Fraud Office; and Leo Lamont, Special Agent in Charge, Naval Criminal Investigative Service, Northeast Field Office. The case was prosecuted by William F. Bloomer of Ortiz’s Public Corruption Unit and Carlos A. Lopez of Ortiz’s Narcotics and Money Laundering Unit.Cameron Park Man Sentenced to over 8 Years in Prison for Defrauding the United Auburn Indian CommunityRead the Press Release
SACRAMENTO, Calif. — Darrell Patrick Hinz, 51, of Cameron Park, was sentenced today by United States District Judge Troy L. Nunley to eight years and one month in prison and ordered to pay $18,830,000 in restitution for defrauding the United Auburn Indian Community (UAIC), conspiring to launder monetary instruments, and filing false tax returns, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, between October 2006 and December 2007, Hinz, together with Gregory Scott Baker, of Newcastle, and Bart Wayne Volen, of San Diego, engaged in a scheme to defraud the UAIC of over $18 million.
“The role of IRS Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Darrell Patrick Hinz and his co-defendants created a scheme to defraud the UAIC in over $18 million in proceeds and purchased numerous high valued assets for himself and other co-defendants totaling over $1.4 million. Hinz also failed to report his ill-gotten gains on his federal tax returns. This sentence should serve as a deterrent to those who might contemplate similar fraudulent actions.”
According to court documents, in October 2006, the UAIC hired Volen, a developer, to finish construction on a school, a community center, and administrative offices on UAIC‑owned property on Indian Hills Road in Auburn. Baker was the UAIC tribal administrator whose duties included overseeing the Indian Hills office project. In this position of trust, he was subordinate only to the UAIC tribal council. Hinz was a contract employee hired by the UAIC to manage the construction at the Indian Hills office project site. Both Baker and Hinz were required to approve all invoices before the UAIC tribal council would sign checks to pay for completed work.
In carrying out the scheme, Volen submitted false and inflated invoices to the UAIC, and Hinz and Baker approved the fraudulent invoices based on a kickback agreement between the three men. Both Hinz and Baker engaged in conduct to ensure that the tribal council would pay for the inflated and fraudulent invoices submitted by Volen. They were later paid by Volen for their participation in the scheme.
According to court documents, Hinz, Baker, and Volen called themselves the “A-Team.” As a member of the A-Team, Hinz surreptitiously funneled over $1.4 million in fraud proceeds to Baker for his assistance in the scheme. Hinz also purchased a number of things for Baker, including personal property (such as a $70,000 BMW and a mobile home), seven investment homes, a vacation condominium in South Lake Tahoe, and a $54,000 pool at Baker’s primary residence. All of these transactions were conducted for the purpose of concealing the proceeds from the UAIC fraud.
With regard to the tax offense, Hinz failed to report the income he derived from the scheme. As a result, the United States suffered a tax loss of $830,000.
When imposing the sentence in this case, Judge Nunley stated that Hinz was part of “a massive fraud” that was committed by people that the UAIC trusted. The judge noted that the UAIC had taken in Hinz “as a member of their family” and that, through his actions and those of his co-conspirators, “the UAIC was taken advantage of.”
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorneys Michael M. Beckwith, John K. Vincent, and Kevin C. Khasigian are prosecuting the case.
Baker and Volen previously pleaded guilty to similar charges in this case. On May 26, 2016, Baker was sentenced to more than five years in prison and ordered to pay restitution. Volen is scheduled to be sentenced on August 4, 2016. Chris W. Eatough previously pleaded guilty to a felony related to this case on June 20, 2013 (case number 2:13-cr-214 TLN). Eatough is scheduled to be sentenced on July 28, 2016.
Cahokia Man Sentenced to over 44 Years in Prison for Armed RobberiesRead the Press Release
LaMarcus D. Jackson, 29, of Cahokia, Illinois was sentenced to 44 ½ years in prison on a six-count indictment charging him with two counts of Conspiracy to Interfere with Commerce by Robbery and Interference with Commerce by Robbery, which are violations of the Hobbs Act, and with two counts of Use and Carry of a Firearm During a Crime of Violence in connection with the armed robbery of the Alps Grocery Store that occurred in Cahokia on December 11, 2014, and the armed robbery of Shop n’ Save that occurred in Cahokia on January 11, 2015, James L. Porter, Acting United States Attorney for the Southern District of Illinois announced today. Jackson was also ordered to pay $8,700 in restitution to the victims and a $600 special assessment. Jackson will be on supervised release for 5 years once he is released from prison.
Documents filed in the U.S. District Court establish that on December 11, 2014, Jackson, Undray Webb and Byron Holton entered the Alps Grocery Store, located at 800 Upper Cahokia Road, in Cahokia, Illinois, masked and armed with three firearms. Jackson, Webb, and Holton pointed the firearms at the store employees and demanded money. Jackson, Webb, and Holton took approximately $1,700 from the registers and a safe and fled the store.
The documents further establish that one month later, on January 11, 2015, Jackson, Holton, Webb, and a fourth conspirator, Devante Hodges entered the Shop n’ Save, located at 1028 Camp Jackson Road in Cahokia, Illinois, masked, gloved and armed with four firearms. Jackson, Webb, Holton and Hodges pointed the firearms at employees and customers within the store. Holton jumped the service counter and demanded the employees place money from the safe into a black book bag while Jackson, Webb and Hodges stood guard at the door with their firearms. Jackson, Webb, Holton and Hodges then left the store and fled the area in a vehicle being driven by a getaway driver, Durand Harper. Approximately $7,000 was stolen during the robbery.
Jackson was arrested and interviewed by law enforcement. During the interview Jackson admitted to being one of the three gunmen who robbed the Alps Grocery Store and identified Byron Holton and Undray Webb as the other two gunmen. Jackson also admitted to being one of the four gunmen who robbed the Shop n’ Save a month later and identified Byron Holton, Undray Webb and Devante Hodges as the other three gunmen and Durand Harper as the getaway driver. Jackson admitted that he receive approximately $1,000 in proceeds from the Shop n’ Save robbery.
As to Byron Holton, his case is still pending, therefore, he is presumed innocent of the charges unless or until proven guilty beyond a reasonable doubt.
The case was investigated by the Cahokia Police Department, the Sauget Police Department and the Federal Bureau of Investigation. The case is assigned to Assistant United States Attorney Ali Summers for prosecution.
Businessman Pleads Guilty to Foreign Bribery and Tax Charges in Connection with Venezuela Bribery SchemeRead the Press Release
The owner of multiple U.S.-based energy companies pleaded guilty today to foreign bribery and tax charges for his role in a scheme to corruptly secure energy contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Acting Special Agent in Charge Sean McElroy of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Houston, and Special Agent in Charge Richard Goss of Internal Revenue Service-Criminal Investigation’s (IRS-CI) Houston Field Office made the announcement.
Roberto Enrique Rincon Fernandez (Rincon), 55, of The Woodlands, Texas, pleaded guilty today in federal court in Houston to an information charging him with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), one count of violating the FCPA and one count of making false statements on his 2010 federal income tax return. U.S. District Judge Gray H. Miller of the Southern District of Texas accepted Rincon’s plea and imposed a personal money judgment against Rincon, who agreed to a forfeiture. Sentencing is scheduled for Sept. 30, 2016.
Rincon was arrested on Dec. 16, 2015, after a grand jury in the Southern District of Texas returned an 18-count indictment against him and Abraham Jose Shiera Bastidas (Shiera), 53, of Coral Gables, Florida.
According to admissions made in connection with Rincon’s plea, Rincon and Shiera worked together to submit bids to provide equipment and services to PDVSA through their various companies. Rincon admitted that beginning in 2009, he and Shiera agreed to pay bribes and other things of value to PDVSA purchasing analysts to ensure that his and Shiera’s companies were placed on PDVSA bidding panels, which enabled the companies to win lucrative energy contracts with PDVSA. Rincon also admitted to making bribe payments to other PDVSA officials in order to ensure that his companies were placed on PDVSA-approved vendor lists and given payment priority so that they would get paid ahead of other PDVSA vendors with outstanding invoices. In his plea agreement, Rincon admitted that he willfully failed to report on his 2010 federal tax return over $6 million in foreign dividend income he received from a Venezuelan corporation he owned.
Rincon is the sixth individual to plead guilty as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. Shiera previously pleaded guilty before Judge Miller to one count of conspiracy to violate the FCPA and commit wire fraud and one count of violating the FCPA and is scheduled to be sentenced on Sept. 30, 2016. In March 2016, Judge Miller also unsealed charges against four other individuals charged in connection with the ongoing investigation, including three foreign officials. The foreign officials admitted that while employed by PDVSA or its wholly owned subsidiaries or affiliates, they accepted bribes from Rincon and Shiera in exchange for taking certain actions to assist companies owned by Rincon and Shiera in winning energy contracts with PDVSA. The foreign officials also conspired with Rincon and Shiera to launder the proceeds of the bribery scheme, they admitted. As part of their plea agreements, Rincon, Shiera and the other defendants all agreed to forfeit proceeds from their criminal activity.
ICE-HSI and IRS-CI are conducting the ongoing investigation, with assistance from the FBI. Trial Attorneys Aisling O’Shea and Jeremy R. Sanders of the Criminal Division’s Fraud Section and Deputy Chief John Pearson and Assistant U.S. Attorney Robert S. Johnson of the Southern District of Texas are prosecuting the case. Assistant U.S. Attorneys Kristine Rollinson and Vincent Carroll of the Southern District of Texas are handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs and the Swiss Federal Office of Justice also provided assistance.
Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Businessman Pleads Guilty to Foreign Bribery and Tax Charges in Connection with Venezuela Bribery SchemeRead the Press Release
HOUSTON – The owner of multiple U.S.-based energy companies pleaded guilty today to foreign bribery and tax charges for his role in a scheme to corruptly secure energy contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).
U.S. Attorney Kenneth Magidson made the announcement along with Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting Special Agent in Charge Sean McElroy of Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Houston and Special Agent in Charge Richard Goss of Internal Revenue Service-Criminal Investigation’s (IRS-CI) Houston Field Office.
Roberto Enrique Rincon Fernandez (Rincon), 55, of The Woodlands, pleaded guilty today to an information charging him with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), one count of violating the FCPA and one count of making false statements on his 2010 federal income tax return. U.S. District Judge Gray H. Miller accepted Rincon’s plea and imposed a personal money judgment against him, who agreed to a forfeiture. Sentencing is scheduled for Sept. 30, 2016.
Rincon was arrested on Dec. 16, 2015, after a grand jury returned an 18-count indictment against him and Abraham Jose Shiera Bastidas (Shiera), 53, of Coral Gables, Florida.
According to admissions made in connection with Rincon’s plea, Rincon and Shiera worked together to submit bids to provide equipment and services to PDVSA through their various companies. Rincon admitted that beginning in 2009, he and Shiera agreed to pay bribes and other things of value to PDVSA purchasing analysts to ensure that his and Shiera’s companies were placed on PDVSA bidding panels, which enabled the companies to win lucrative energy contracts with PDVSA. Rincon also admitted to making bribe payments to other PDVSA officials in order to ensure that his companies were placed on PDVSA-approved vendor lists and given payment priority so that they would get paid ahead of other PDVSA vendors with outstanding invoices. In his plea agreement, Rincon admitted he willfully failed to report on his 2010 federal tax return over $6 million in foreign dividend income he received from a Venezuelan corporation he owned.
Rincon is the sixth individual to plead guilty as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA. Shiera previously pleaded guilty before Judge Miller to one count of conspiracy to violate the FCPA and commit wire fraud and one count of violating the FCPA and is scheduled to be sentenced on Sept. 30, 2016. In March 2016, Judge Miller also unsealed charges against four other individuals charged in connection with the ongoing investigation, including three foreign officials. The foreign officials admitted that while employed by PDVSA or its wholly owned subsidiaries or affiliates, they accepted bribes from Rincon and Shiera in exchange for taking certain actions to assist companies owned by Rincon and Shiera in winning energy contracts with PDVSA. The foreign officials also conspired with Rincon and Shiera to launder the proceeds of the bribery scheme. As part of their plea agreements, Rincon, Shiera and the other defendants all agreed to forfeit proceeds from their criminal activity.
ICE-HSI and IRS-CI are conducting the ongoing investigation with assistance from the FBI. Deputy Chief John Pearson and Assistant U.S. Attorney Robert S. Johnson are prosecuting the case along with Trial Attorneys Aisling O’Shea and Jeremy R. Sanders of the Criminal Division’s Fraud Section. Assistant U.S. Attorneys Kristine Rollinson and Vincent Carroll are handling the forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs and Swiss Federal Office of Justice also provided assistance.
Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Broken Bow Man Sentenced to 24 Months for Assault with Dangerous WeaponRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that ANTONIO JUAN PAREDES, age 26, of Broken Bow, Oklahoma, was sentenced to 24 months imprisonment, followed by 3 years of supervised release for ASSAULT WITH A DANGEROUS WEAPON, in violation of Title 18, United States Code, Sections 1153, 1151 and 113(a)(3).
The charge is a result of an investigation by the Choctaw Nation Tribal Police, the Broken Bow Police Department and the Federal Bureau of Investigation. The defendant was indicted in December, 2015 and pled guilty in January 2016.
The Indictment alleged that on or about July 21, 2012, in the Eastern District of Oklahoma, at the Choctaw Travel Plaza in Broken Bow, Oklahoma, in Indian Country, within the special maritime and territorial jurisdiction of the United States, the defendant, ANTONIO JUAN PAREDES, an Indian, assaulted M.C. with a dangerous weapon, with the intent to do bodily harm.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparoleable sentence.
Assistant United States Attorney Edward Snow represented the United States.
Baltimore City Landfill Employee Sentenced to 2 Years in Federal Prison for Stealing Scrap Metal and Filing False Tax ReturnsRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced Jarrod Terrell Hazelton, age 33, of Parkville, Maryland, a former employee at the Quarantine Road Landfill (Landfill), today to two years in prison followed by three years of supervised release for conspiracy and wire fraud in connection with a scheme to unlawfully sell scrap metal from the Landfill and the Northwest Transfer Station, while falsely representing to the Baltimore Department of Public Works (DPW) that he was performing his job; and for filing a false tax return. Judge Garbis also ordered Hazelton to pay restitution of $400,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Robert H. Pearre, Jr., Inspector General, City of Baltimore Office of Inspector General; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
Baltimore City’s waste management system generates revenue by collecting and selling recyclable scrap metal dumped at the City’s trash collection facilities, including household appliances, steel cables, copper wires, car parts, computer parts, door and window frames. The City awards contracts to private salvage companies to purchase and remove such scrap metal from its trash collection facilities.
DPW employees at the Landfill and other trash collection sites are required to segregate the recyclable scrap metal from general refuse and place it in separate bins provided by the salvage companies. The companies regularly pick up the scrap metal, weigh it and send a tonnage report to the City. Based on predetermined prices per ton, the City sends an invoice to the companies requesting payment for the value of the scrap metal the companies removed during a given period of time. Salvaging by employees, also referred to as “junking,” was strictly prohibited and employees were put on notice that any salvaging of metal constituted theft of City property.
According to his plea agreement, from 2005 until May 2015, Hazelton, who was employed by DPW at the Landfill, and other DPW employees, including Michael Bennett and supervisor William Nemec, unlawfully collected and sold scrap metal for personal gain during work hours, while representing to DPW that they were doing the jobs for which they were being paid. Hazelton was a leader in the scheme and coordinated the daily collection of scrap metal at the Landfill.
Hazelton and other employees used part of the sale proceeds of the stolen scrap metal to pay other DPW employees for their help in locating, setting aside, collecting and loading the scrap metal onto their trucks. Hazelton, Bennett and other employees at the Landfill used their personal cell phones to communicate when and where recyclable scrap metals were being dumped at the Landfill, and to coordinate their arrival at the private salvage yard. Hazelton, Bennett and others uses their personal pickup trucks to transport the scrap metal to a private salvage company, frequently making multiple trips during a single, eight-hour work shift.
The sale of the stolen scrap metal resulted in a loss of revenue to the City of at least $400,000.
In order to conceal the junking scheme, Hazelton and Bennett paid cash to Nemec and other supervisors to not report them for collecting and transporting the stolen scrap metal, and to authorize and submit false time and attendance records. Hazelton prepared and submitted false time and attendance records which falsely claimed he had been working, when in fact, he was instead illegally collecting and selling the scrap metal, resulting in wages being paid to Hazelton for work he did not perform.
In addition, for tax years 2011 through 2015, Hazelton failed to report approximately $476,703 of income received from the illegal junking scheme. For example, for tax year 2013, Hazelton reported $14,009 in total income to the IRS on his individual tax return, when Hazelton knew that he received $126, 293 of additional income that year from the illegal junking scheme.
Former DPW employees Tamara Oliver Washington, age 55, William Charles Nemec, Sr., age 56; and Michael Theodore Bennett, age 47, all of Baltimore, previously pleaded guilty to their roles in the schemes. Nemec was sentenced to 78 months in prison, and Bennett to 46 months in prison. Judge Garbis also ordered Bennett to pay restitution of $400,000. Washington is scheduled to be sentenced on August 12, 2016, at 11:30 a.m.
Five other commercial trash haulers have also pleaded guilty and a sixth commercial trash hauler has been convicted by a federal jury, in connection with their participation in a scheme. Four of these trash haulers have been sentenced: Quentin Turgot Glenn, age 50, of Hanover, Maryland, who owned and operated Glenn Services, LLC, a trash hauling business, was sentenced to three years in prison; Jessie Lee Wilson, Jr., age 41, of Baltimore, who was employed by Glenn Services as a truck driver, to three years of probation, with the first year to be spent in community confinement; Adam Williams, Jr., age 53, of Randallstown, to one year in prison; and Larry Lowry, age 61, of Orchard Beach, Maryland, to 30 months in prison. Judge Garbis also ordered that Glenn pay restitution of $306,000; Williams pay restitution of $900,000; and Lowry pay restitution of $180,000.
United States Attorney Rod J. Rosenstein praised the FBI, IRS-CI, Baltimore Office of Inspector General and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Martin J. Clarke and Leo J. Wise, who prosecuted the case.