Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
15 June 2016
Indiana Man Sentenced to Eleven Years in Federal Prison for Methamphetamine Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Rashad Travon Woods, 28, of Indianapolis, Ind., was sentenced today to 132 months in prison followed by five years of supervised release for his conviction on a methamphetamine trafficking charge in federal court in Albuquerque, N.M.
Woods was arrested on a criminal complaint charging him with a methamphetamine trafficking offense after the DEA seized 2.4 kilograms (5.28 pounds) of methamphetamine from him during an interdiction investigation at the Amtrak Train Station in Albuquerque on Oct. 30, 2015. The methamphetamine was concealed in clothes in Woods’ backpack. Woods was indicted on the same charge on Nov. 17, 2015.
On Feb. 29, 2016, Woods pled guilty to the indictment and admitted that on Oct. 30, 2015, in Bernalillo County, N.M., he was in possession of 2.40 gross kilograms of methamphetamine while traveling through Albuquerque.
This case was investigated by Albuquerque office of the DEA and was prosecuted by Assistant U.S. Attorney Edward Han.
ISIL-Linked Hacker Pleads Guilty to Providing Material SupportRead the Press Release
Ardit Ferizi, aka Th3Dir3ctorY, 20, a citizen of Kosovo, pleaded guilty today before U.S. District Judge Leonie M. Brinkemaof the Eastern District of Virginia to providing material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and accessing a protected computer without authorization and obtaining information.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office and Special Agent in Charge Michelle S. Klimt of the FBI’s Jacksonville, Florida, Division made the announcement.
“Ferizi admitted to stealing the personally identifiable information of over 1,000 U.S. servicemembers and federal employees, and providing it to ISIL with the understanding that they would incite terrorist attacks against those individuals,” said Assistant Attorney General Carlin. “The case against Ferizi is the first of its kind, representing the nexus of the terror and cyber threats. The National Security Division will continue to use an all-tools approach to combat this ever-evolving blended threat, and we will identify, disrupt and prosecute any individual who provides material support to ISIL, no matter how they do so.”
“Ferizi endangered the lives of over 1,000 Americans,” said U.S. Attorney Boente. “Cyber terrorism has become an increasingly prevalent and serious threat here in America, both to individuals and businesses. However, cyber terrorist are no different from other terrorists: No matter where they hide, we will track them down and seek to bring them to the United States to face justice.”
“Ardit Ferizi launched a cyberattack to gain access to the identities of U.S. military personnel, which he shared with members of ISIL in an attempt to incite terror attacks,” said Assistant Director in Charge Abbate. “No matter how a person supports a terrorist group like ISIL, whether on the battlefield or in the cyber world, the FBI will identify, disrupt and bring them to justice for placing lives at risk.”
“This case demonstrates the importance of strong partnerships with law enforcement agencies worldwide,” said Special Agent in Charge Michelle S. Klimt. “Cybercrime knows no boundaries and our efforts to dismantle these operations would be impossible without international collaboration. The FBI will continue to vigorously investigate these crimes and work with our international partners to track down and arrest those who steal from our nation and citizens.”
Ferizi, who was detained by Malaysian authorities on a provisional arrest warrant on behalf of the United States, was charged by criminal complaint on Oct. 6, 2015. The criminal complaint was unsealed on Oct. 15, 2015. Ferizi subsequently waived extradition.
Ferizi admitted that on or about June 13, 2015, he gained administrator-level access to a server that maintained the website of a victim company located in the United States, which also contained databases with personally identifiable information (PII) belonging to tens of thousands of the victim company’s customers. Between June and August 2015, Ferizi provided unlawfully-obtained PII to ISIL member Junaid Hussain, aka Abu Hussain al-Britani, he admitted. According to the statement of facts, on Aug. 11, 2015, in the name of the Islamic State Hacking Division (ISHD), Hussain posted a tweet that contained a document with the PII of approximately 1,300 U.S. military and other personnel that Ferizi had taken from the victim company and provided to Hussain. The document stated, in part, that “we are in your emails and computer systems, watching and recording your every move, we have your names and addresses, we are in your emails and social media accounts, we are extracting confidential data and passing on your personal information to the soldiers of the khilafah, who soon with the permission of Allah will strike at your necks in your own lands!” Ferizi admitted that he provided the PII to ISIL with the understanding that ISIL would use the PII to “hit them hard.”
At sentencing on Sept. 16, 2016, Ferizi faces a maximum sentence of 20 years in prison for providing material support to ISIL and a maximum sentence of five years for accessing a protected computer without authorization and obtaining information. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. As part of the plea, Ferizi also agreed to a stipulated order of removal to Kosovo, his country of citizenship, upon completion of his criminal sentence.
The FBI’s Washington Field Office and Jacksonville Division investigated the case. The case is being prosecuted by Special Assistant U.S. Attorney Brandon Van Grack of the Eastern District of Virginia and Trial Attorney Gregory Gonzalez of the National Security Division’s (NSD) Counterterrorism Section, with assistance from Trial Attorney Vincent A. Citro of NSD’s Counterterrorism Section and Trial Attorney Matthew Walczewski of NSD’s Counterintelligence and Export Control Section. The Malaysian authorities and the Justice Department’s Office of International Affairs also provided significant assistance.
ISIL-Linked Hacker Pleads Guilty to Providing Material SupportRead the Press Release
ALEXANDRIA, Va. – Ardit Ferizi, aka Th3Dir3ctorY, 20, a citizen of Kosovo, pleaded guilty today to charges of providing material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and accessing a protected computer without authorization and obtaining information.
“Ferizi endangered the lives of over 1,000 Americans,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Cyber terrorism has become an increasingly prevalent and serious threat here in America, both to individuals and businesses. However, cyber terrorist are no different from other terrorists: No matter where they hide, we will track them down and seek to bring them to the United States to face justice.”
“Ferizi admitted to stealing the personally identifiable information of over 1,000 U.S. servicemembers and federal employees, and providing it to ISIL with the understanding that they would incite terrorist attacks against those individuals,” said John Carlin, Assistant Attorney General for National Security. “The case against Ferizi is the first of its kind, representing the nexus of the terror and cyber threats. The National Security Division will continue to use an all-tools approach to combat this ever-evolving blended threat, and we will identify, disrupt and prosecute any individual who provides material support to ISIL, no matter how they do so.”
“Ardit Ferizi launched a cyber attack to gain access to the identities of U.S. military personnel, which he shared with members of ISIL in an attempt to incite terror attacks,” said Paul M. Abbate, Assistant Director in Charge pf the FBI’s Washington Field Office. “No matter how a person supports a terrorist group like ISIL, whether on the battlefield or in the cyber world, the FBI will identify, disrupt and bring them to justice for placing lives at risk.”
Ferizi, who was detained by Malaysian authorities on a provisional arrest warrant on behalf of the United States, was charged by criminal complaint on Oct. 6, 2015. The criminal complaint was unsealed on Oct. 15, 2015. Ferizi subsequently waived extradition.
In a statement of facts filed with the plea agreement, Ferizi admitted that on or about June 13, 2015, he gained administrator-level access to a server that maintained the website of a victim company located in the United States, which also contained databases with personally identifiable information (PII) belonging to tens of thousands of the victim company’s customers. Between June and August 2015, Ferizi provided unlawfully-obtained PII to ISIL member Junaid Hussain, aka Abu Hussain al-Britani, he admitted. According to the statement of facts, on Aug. 11, 2015, in the name of the Islamic State Hacking Division (ISHD), Hussain posted a tweet that contained a document with the PII of approximately 1,300 U.S. military and other personnel that Ferizi had taken from the victim company and provided to Hussain. The document stated, in part, that “we are in your emails and computer systems, watching and recording your every move, we have your names and addresses, we are in your emails and social media accounts, we are extracting confidential data and passing on your personal information to the soldiers of the khilafah, who soon with the permission of Allah will strike at your necks in your own lands!” Ferizi admitted that he provided the PII to ISIL with the understanding that ISIL would use the PII to “hit them hard.”
Ferizi faces a maximum penalty of 25 years in prison when sentenced on September 16. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. As part of the plea, Ferizi also agreed to a stipulated order of removal to Kosovo, his country of citizenship, upon completion of his criminal sentence.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John P. Carlin, Assistant Attorney General for National Security; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Michelle S. Klimt, Special Agent in Charge of the FBI’s Jacksonville, Florida, Division, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema.
This case is being prosecuted by Special Assistant U.S. Attorney Brandon Van Grack and Trial Attorney Gregory Gonzalez of the National Security Division’s (NSD) Counterterrorism Section, with assistance from Trial Attorney Vincent A. Citro of NSD’s Counterterrorism Section and Trial Attorney Matthew Walczewski of NSD’s Counterintelligence and Export Control Section.
The Malaysian authorities and the Justice Department’s Office of International Affairs also provided significant assistance.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-42.
Hedge Fund Portfolio Manager Sanjay Valvani and Former Portfolio Manager Stefan Lumiere Charged in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Elton Malone, Special Agent in Charge, Special Investigations Branch, U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), announced today charges against SANJAY VALVANI and STEFAN LUMIERE, a portfolio manager and former portfolio manager, respectively, at a healthcare-focused hedge fund in New York, New York (“Investment Adviser-A”).
VALVANI was charged with participating in a scheme, from in or about 2005 through in or about January 2011, to convert United States property, to defraud the United States, and to commit securities fraud and wire fraud relating to VALVANI’s agreement with GORDON JOHNSTON, a political intelligence consultant and former senior official at the Food and Drug Administration (“FDA”), to unlawfully obtain highly confidential and material nonpublic information from the FDA about the agency’s approval of pending generic drug applications and convert it to VALVANI’s use, including by using the information to execute profitable securities transactions. VALVANI is also charged with passing certain highly confidential and material nonpublic information to CHRISTOPHER PLAFORD, a former portfolio manager at Investment Adviser-A, who also executed trades based on the information. In addition, Mr. Bharara announced today the unsealing of charges against JOHNSTON and PLAFORD, who both pled guilty and admitted to their participation in the scheme. As part of the scheme, for example, at VALVANI’s direction, JOHNSTON obtained highly confidential and material nonpublic information from a senior FDA official about the status and approval of a generic drug called enoxaparin, which information JOHNSTON passed to VALVANI. VALVANI used this information to trade in the securities of two pharmaceutical companies likely to be affected by an approval of a generic enoxaparin application, earning approximately $25 million in trading profits when the FDA announced its first such approval. VALVANI also tipped PLAFORD with this information. VALVANI surrendered to authorities this morning.
Separately, LUMIERE was charged with participating in a scheme with PLAFORD, from in or about June 2011 through in or about September 2013, to commit securities and wire fraud relating to the mismarking of securities in a fixed-income fund for which PLAFORD was the portfolio manager at the time, which inflated the net asset value (“NAV”) of the fund and overstated the fund’s liquidity. LUMIERE surrendered to authorities this morning. PLAFORD also pled guilty to his participation in this scheme, as well as an additional scheme involving another political intelligence consultant.
VALVANI will be presented and arraigned later today before United States District Judge Sidney H Stein. LUMIERE will be presented later today before U.S. Magistrate Judge James C. Francis IV. JOHNSTON’s case is assigned to U.S. District Judge Andrew L. Carter, Jr., and PLAFORD’s case is assigned to U.S. District Judge Ronnie Abrams.
In separate actions, the Securities and Exchange Commission (“SEC”) filed civil charges against VALVANI, LUMIERE, JOHNSTON, and PLAFORD.
U.S. Attorney Preet Bharara said: “As alleged, Valvani, Johnston, and Plaford conspired to extract highly confidential and tightly guarded information about pending applications for generic drug approvals from the FDA, and traded on such information, reaping millions of dollars in illegal profits. Lumiere and Plaford also allegedly conspired to mismark securities held by their fund, lying to their investors and unjustly enriching themselves in the process.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “As alleged, the defendants conspired and schemed over six years to obtain insider information from the FDA on the status of approvals for generic drugs in order to take that information and use it to make securities trades. Additionally, some of those same defendants schemed to defraud investors from an fixed-income fund by deceptively mismarking the value of certain securities. Sadly these are schemes we see time and time again, where lies and use of nonpublic information profits those conducting the crimes and everyday investors lose out.”
HHS-OIG Special Agent in Charge Elton Malone said: “Trading on confidential, non-public FDA information corrupts the carefully guarded drug approval process and simply will not be tolerated. People hoping to profit from insider data will be aggressively prosecuted for their crimes.”
According to the allegations in the charging documents unsealed today in Manhattan federal court, including the Indictment charging VALVANI and the Complaint charging LUMIERE,[1] and statements made in court proceedings:
At all relevant times, Investment Adviser-A managed hedge funds specializing in healthcare-related investments. One such fund focused on long-short equity investments in healthcare companies (“Fund-1”). Another fund, which operated from in or about 2009 until in or about September 2013, invested primarily in debt instruments issued by healthcare companies (“Fund-2”).
VALVANI served as a partner in Investment Adviser-A and one of Fund-1’s portfolio managers, managing the specialty pharmaceuticals portfolio within Fund-1. From in or about May 2009 through in or about September 2013, PLAFORD served as a partner in Investment Adviser-A and as Fund-2’s portfolio manager. LUMIERE served under PLAFORD as the Fund-2 portfolio manager for special situations, which represented a portion of Fund-2’s portfolio.
The Scheme to Convert and Use Confidential FDA Information
The Scheme
As alleged in the Indictment, from in or about 2005 through in or about January 2011, VALVANI, JOHNSTON, PLAFORD, and others participated in a scheme to convert to their own use confidential and material nonpublic information from the FDA concerning, among other things, the FDA’s internal deliberations regarding the approval of generic drug applications for the purpose of making profitable securities transactions.
During this time period, Investment Adviser-A retained JOHNSTON as a consultant who provided “political intelligence” related to, among other things, the likelihood and timing of the FDA’s approval of generic drugs. JOHNSTON primarily consulted for VALVANI, and Investment Adviser-A paid JOHNSTON hundreds of thousands of dollars in total for his consulting work. Before becoming a consultant, JOHNSTON had served as the Deputy Director of the FDA’s Office of Generic Drugs (“OGD”), an office within the FDA charged with, among other things, approving generic drugs. In addition to serving as consultant to Investment Adviser-A, JOHNSTON worked for a trade association for manufacturers and distributors of generic drugs (the “Trade Association”). As a result of his long employment with the FDA, as well as his ongoing work with the Trade Association, JOHNSTON maintained close relationships with FDA insiders.
VALVANI tasked JOHNSTON with obtaining highly confidential and material nonpublic information from the FDA about pending generic drug ANDAs and related citizen petitions, information that FDA employees were not authorized to disclose to the public. An ANDA, or Abbreviated New Drug Application, is the process by which a pharmaceutical company can apply to the FDA for approval to sell a generic version of a brand name drug. In many cases, the brand name drug company files a citizen petition with the FDA challenging the generic drug company’s ANDA and arguing that the FDA should deny it. The FDA’s decision to approve a generic drug ANDA typically has a positive impact on the stock price of the company receiving approval, and a negative impact on the stock price of the company producing the brand name drug.
The Enoxaparin ANDA Approval
As alleged in the Indictment, at the direction of VALVANI, JOHNSTON improperly obtained confidential and material nonpublic information concerning the FDA’s approval of a generic version of an anticoagulant drug called enoxaparin and passed this information to VALVANI, which VALVANI used to make profitable securities trades. Beginning in the mid-1990s, Sanofi-Aventis S.A. (“Sanofi”) manufactured and sold enoxaparin under the brand name Lovenox. By 2005, three groups of publicly traded pharmaceutical companies had filed ANDAs with the FDA seeking approval to sell a generic version of Lovenox, including one such application filed by a publicly traded pharmaceutical company that had partnered with Momenta Pharmaceuticals, Inc. (“Momenta”) (the “Momenta ANDA”). After the first two ANDAs were filed, Sanofi filed a citizen petition with the FDA opposing the approval of a generic version of Lovenox. These three ANDAs were pending with the OGD for years, during which time it was unclear whether OGD would approve a generic version of Lovenox.
Beginning in or about 2005, VALVANI directed JOHNSTON to gather confidential and material nonpublic information from FDA employees about the FDA’s consideration of the enoxaparin ANDAs. JOHNSTON, in turn, improperly obtained such information from a senior OGD official (“Individual-1”), who was close friends with and a former colleague of JOHNSTON’s. Individual-1 participated in internal, confidential meetings regarding the Momenta ANDA. As part of the ANDA review and approval process, OGD maintained an internal document tracking the progress of ANDAs, including the Momenta ANDA, and estimating the likelihood and timing of their approval (the “Tracking Document”). The information contained in the Tracking Document was highly confidential and not intended to be disclosed to anyone outside the FDA. Nonetheless, Individual-1 disclosed confidential and material nonpublic information about the status of the approval of a generic Lovenox ANDA, including information from the highly confidential Tracking Document, to JOHNSTON. JOHNSTON breached a duty of trust to Individual-1 by passing the information to VALVANI, as JOHNSTON knew that Individual-1 expected him to keep the information confidential based on their history of sharing and keeping such confidences.
For example, in or about late December 2009 or early January 2010, JOHNSTON told VALVANI, in sum and substance, that he had learned that the Tracking Document reflected that OGD was moving toward approval of a generic Lovenox ANDA. This was information that was not known to the public and was not supposed to be known by anyone outside of the FDA. Based on his prior role at OGD, JOHNSTON understood this to mean that the ANDA approval was highly likely and could occur in a matter of months, which information JOHNSTON shared with VALVANI. VALVANI asked JOHNSTON to continue to contact his FDA sources to obtain additional updates about the agency’s internal deliberations related to the approval of a generic Lovenox ANDA.
Beginning on or about January 4, 2010, after receiving the tip from JOHNSTON, VALVANI requested that Investment Adviser-A give JOHNSTON a raise. In a January 6, 2010, email to Investment Adviser-A’s chief financial officer, VALVANI sought to justify providing a raise to JOHNSTON by stressing how important JOHNSTON was to him: “[JOHNSTON] is without question the most valuable consultant I’ve ever worked with and I’m pushing to reinforce the value of the relationship and encourage him to continue to go above and beyond for our team.”
The next day, on or about January 7, 2010, VALVANI caused Fund-1 to begin to increase its long position in Momenta by four-fold. By on or about July 23, 2010, Fund-1 held an approximately 2,962,715-share long position in Momenta stock valued at approximately $35 million. Beginning on or about January 14, 2010, VALVANI caused Fund-1 to short Sanofi securities. By on or about July 23, 2010, Fund-1 held an approximately 1,320,454-share short position in Sanofi’s European-traded stock and an approximately 509,854-share short position in Sanofi’s American Depository Receipts (“ADRs”), together valued at approximately $78 million.
VALVANI also passed to PLAFORD the information that he had obtained from JOHNSTON, so that PLAFORD could execute securities trades in Fund-2, which he did. PLAFORD understood this information to be highly confidential and material nonpublic information of the most sensitive kind that had been obtained from JOHNSTON’s source in the FDA.
On or about July 23, 2010 – approximately seven years after the first ANDA was filed – the FDA approved the Momenta ANDA (and denied Sanofi’s related citizen petition). This approval was positive news for Momenta, as Momenta was the first company to receive generic Lovenox approval, and the company’s stock price increased by nearly 100 percent in one day. The approval of the Momenta ANDA was negative news for Sanofi, which no longer had a monopoly on the drug, and the price of Sanofi’s stock and ADRs declined. Following the FDA’s announcement, VALVANI caused Fund-1 to sell the Momenta shares it held and to close out its short positions in Sanofi ADRs and stock, yielding a total profit of approximately $25 million.
In or about early January 2011, VALVANI called JOHNSTON and stated, in sum and substance, that Investment Adviser-A had decided to end its relationship with JOHNSTON in the wake of news reports of insider trading investigations.
The Scheme to Mismark Securities
As alleged in the Complaint, from in or about June 2011 through in or about September 2013, LUMIERE, PLAFORD, and others participated in a scheme to defraud Fund-2’s investors and potential investors by deceptively mismarking each month the value of certain securities held by Fund-2. The objective of the scheme was two-fold: (1) to inflate Fund-2’s NAV; and (2) to mislead investors about the liquidity of Fund-2’s holdings. Investment Adviser-A assessed performance fees to be paid by investors each year based on Fund-2’s profits and losses. LUMIERE’s mismarking was in violation of Investment Adviser-A’s internal valuation procedures and contrary to Investment Adviser-A’s representations to investors. The effect of the scheme was to overstate Fund-2’s NAV, often by tens of millions of dollars as calculated at the end of each month, which resulted in higher payments to Investment Adviser-A and higher bonuses for LUMIERE, among other benefits. The effect of the scheme was also to deceive investors into believing that certain securities were properly categorized as Level II, or securities with a quoted price but in a more inactive market, when, in fact, these securities were highly illiquid Level III investments.
As to the first form of the scheme, LUMIERE, PLAFORD, and others solicited, obtained, and relied on false and fraudulent price quotes from employees of broker-dealers in order to improperly override prices calculated by Fund-2’s administrator and artificially inflate Fund-2’s NAV each month. For each month-end valuation, LUMIERE and/or PLAFORD would begin by reviewing an inventory of Fund-2’s investments and proposed valuations for each prepared by Fund-2’s administrator and Investment Adviser-A’s back office. LUMIERE and/or PLAFORD would then identify those relatively illiquid securities as to which they disagreed with or disliked the proposed price, and create a list reflecting the price at which they wanted each security to be marked for month-end valuation purposes. That price was often significantly higher or lower than the price available from public price data. LUMIERE, PLAFORD, and others would then contact one or two “friendly” brokers and dictate to the friendly brokers the price quotes that they needed. The brokers would then parrot back the price quotes from their Bloomberg email account, giving the price quotes the appearance that they had come from an independent broker, and thus were in compliance with Fund-2’s pricing methodology. PLAFORD then submitted the friendly brokers’ sham quotes as purportedly independent bases for that security’s valuation to Investment Adviser-A’s accounting department, for the eventual submission to Fund-2’s administrator.
By obtaining these sham quotes, LUMIERE and PLAFORD caused a number of Fund-2’s securities to be misclassified in order to mislead investors about the liquidity of the securities (i.e., how actively traded the securities were). Specifically, for a number of illiquid bonds, LUMIERE and PLAFORD fraudulently caused Investment Adviser-A to assign a classification that led investors to believe that the bonds were relatively liquid, when in fact they were entirely illiquid. This was done contrary to disclosures to investors about Fund-2’s percentage of illiquid investments, in order to induce investors to invest in or keep their money in Fund-2.
As to the second form of the scheme, LUMIERE and PLAFORD purchased additional quantities of certain securities – in which Fund-2 had an established position – at a deceptively inflated price, markedly higher than the prevailing market was offering that security, in a practice known as “painting the tape.” PLAFORD would then report that inflated price to Investment Adviser-A’s accounting department for NAV purposes. In both cases – the sham broker quotes and the inflated purchase prices – it was LUMIERE and PLAFORD’s intent to increase the price of certain securities in order to inflate Fund-2’s month-end valuation.
* * *
VALVANI, 44, of Brooklyn, New York, is charged with five counts: one count of conspiracy to convert United States property, to commit securities fraud and to defraud the United States; two counts of securities fraud; one count of conspiracy to commit wire fraud; and one count of wire fraud. Count One carries a maximum sentence of five years in prison. Counts Two through Five each carry a maximum sentence of 20 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense.
LUMIERE, 45, of New York, New York, is charged with three counts: one count of conspiracy to commit securities fraud and wire fraud; one count of securities fraud; and one count of wire fraud. Count One carries a maximum sentence of five years in prison. Counts Two and Three each carry a maximum sentence of 20 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense.
On June 9, 2016, PLAFORD, 38, of Bedford, New York, pled guilty before Judge Abrams to seven counts: one count of conspiracy to commit securities fraud and wire fraud; one count of securities fraud; one count of conspiracy to defraud the United States and to convert United States property; one count of conversion of United States property; one count of conspiracy to convert United States property, to commit securities fraud, and to defraud the United States; one count of securities fraud; and one count of conspiracy to commit wire fraud. Counts One, Three, and Five each carry a maximum sentence of five years in prison. Counts Two, Six, and Seven each carry a maximum sentence of 20 years in prison. Count Four carries a maximum sentence of 10 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense.
On June 13, 2016, JOHNSTON, 64, of Olney, Maryland, pled guilty before Magistrate Judge James C. Francis IV to four counts: one count of conspiracy to convert United States property, to commit securities fraud, and to defraud the United States; one count of securities fraud; one count of conspiracy to commit wire fraud; and one count of wire fraud. Count One carries a maximum sentence of five years in prison. Counts Two through Four each carry a maximum sentence of 20 years in prison. The charges also carry a maximum fine of $5 million, or twice the gross gain or loss from the offense.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the work of the FBI and HHS-OIG, and thanked the SEC for its assistance.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Ian McGinley, Damian Williams, and Joshua A. Naftalis are in charge of the prosecution.
The allegations contained in the Indictment and the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the Complaint, and the description of the Indictment and the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Harahan Man Sentenced for Conspiracy to Sell Identification DocumentsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DAMIAN R. RODRIGUEZ, age 38, of Harahan, was sentenced today after previously pleading guilty to conspiracy to transfer identification documents in violation of 18 U.S.C. § 1028(f).
U.S. District Judge Sarah S. Vance sentenced RODRIGUEZ to four months imprisonment to be followed by two years of supervised release.
According to court documents, RODRIGUEZ conspired with two other individuals to sell a social security card and birth certificate to a confidential informant working with Special Agents of the Department of Homeland Security.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Homeland Security Investigations, in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis was in charge of the prosecution.
Halifax County Man Sentenced for Cocaine and Marijuana ConspiracyRead the Press Release
GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, Senior United States District Judge Malcolm J. Howard, sentenced STERLING DELAND MOODY, 47, of Weldon, North Carolina, to 72 months in prison and 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine and 50 kilograms or more of marijuana. MOODY previously pled guilty to this charge on August 10, 2015.
On September 10, 2014, DEA arrested MOODY near Weldon, N.C., after MOODY met with an informant to purchase two kilograms of cocaine for $36,000 per kilogram. MOODY told the informant that he had enough money nearby to purchase two additional kilograms of cocaine. Upon MOODY’S arrest, investigators seized $68,000 from MOODY’S vehicle. Investigators also seized $71,867 and two handguns from MOODY’S residence. The investigation, revealed that MOODY was responsible for distributing 158 kilograms of cocaine and 90 kilograms of marijuana.
The investigation of this case was conducted by the Drug Enforcement Administration and the Halifax County Sheriff’s Office. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Grand Rapids Man Sentenced to 15 Years for Bank RobberyRead the Press Release
GRAND RAPIDS, MICHIGAN — Michael Dewayne Winbush, 53, of Grand Rapids, was sentenced on June 14 to 180 months in federal prison to be followed by 3 years of supervised release, U.S. Attorney Patrick A. Miles, Jr. announced today.
On November 30, 2015, Winbush entered the Flagstar Bank on 44th Street in Grand Rapids and handed a teller a note indicating that he had a gun and demanding money. He obtained $5,505 and fled on foot. He was later identified through tips called in to Silent Observer. On February 1, 2016, Winbush pled guilty to robbing the bank. As part of the plea agreement, he will not be prosecuted for a robbery he committed at Lake Michigan Credit Union in Wyoming, Michigan on November 27, 2015. Winbush was ordered to pay restitution to both institutions. Winbush has previously been convicted of bank robberies in the U.S. District Court for the Eastern District of Michigan in 2001 and in Genesee County Circuit Court in 2005. At sentencing, U.S District Judge Robert Holmes Bell chided Winbush for repeatedly resorting to bank robbery despite being educated, articulate, and having the skills and ability to be productive.
The Federal Bureau of Investigation, Grand Rapids Police Department, and Wyoming Police Department investigated the robberies. The case was prosecuted by Assistant U.S. Attorney Alexis M. Sanford.
END
Golden Valley Man Convicted of Leading Multi-Million Dollar Cell Phone Trafficking ConspiracyRead the Press Release
United States Attorney Andrew M. Luger and Special Agent in Charge of the United States Secret Service Minneapolis Division Louis Stephens today announced the conviction of ZIBO LI, 31, for conspiring to traffic in stolen cell phones. LI led a conspiracy to traffic more than $3.8 million in stolen cellular devices throughout the United States and Hong Kong.
“Zibo Li led an organization that used the stolen identities of ordinary people to perpetrate a multi-million-dollar fraud,” said Assistant United States Attorney Manda M. Sertich. “Honest consumers bear the cost of the illegal activity of retail thieves like Li and his conspirators. We would like to thank the jury for its service during this trial and for returning a just verdict.”
“At its core, this case is about widespread identity theft, contact fraud and financial crimes,” said Louis Stephens, Special Agent in Charge of the United States Secret Service Minneapolis Field Office. “The collaborative approach of talented local and federal law enforcement officers and prosecutors ended a multi-year criminal conspiracy adept at widespread victimization of Minnesota based victims and businesses.”
As proven at trial, between 2011 and 2014, ZIBO LI and eight co-conspirators fraudulently obtained mobile cellular devices for steeply reduced rates by entering into service contacts, often using stolen identities. ZIBO LI ultimately sold the stolen merchandise to contacts in Hong Kong, where a new Apple iPhone could, at the time of the conspiracy, retail for as much as $2,000.
As proven at trial, three co-conspirators who have already pleaded guilty served as middlemen in LI’s organization. They purchased stolen or fraudulently obtained phones from buyers, and subsequently sold them to ZIBO LI. LI paid the middlemen in cash and by depositing cash directly into their bank accounts.
As proven at trial, buyers for the organization were responsible for obtaining discounted phones from retailers by agreeing to a two-year service contract. Among the methods employed to obtain phones was “credit muling,” a scheme through which buyers, or those acting at their direction, signed cellular telephone service contracts, often using stolen identities, to obtain reduced cost phones in other people’s names, but never intended to or did honor those contracts. Some of the buyers also recruited people residing in homeless shelters to sign up for cell phone contracts and obtain reduced cost phones, in exchange for nominal payments or goods.
This case is the result of an investigation conducted by the United States Secret Service, Saint Paul Police Department, Minnesota Bureau of Criminal Apprehension, Minnesota Financial Crimes Task Force, University of Minnesota Police Department, and Plymouth Police Department.
This case is being prosecuted by Assistant United States Attorneys Manda M. Sertich and Steven L. Schleicher.
Defendant Information:ZIBO LI, 31
Golden Valley, Minn.Convicted: • Conspiracy to traffic unauthorized access devices, 1 count
• Fraud and related activity in connection with access devices, 2 countsGeorgia Man Pleads Guilty to Attempting to Smuggle 8.5 Kilograms of Marijuana to the Virgin IslandsRead the Press Release
St. Thomas, USVI – On Wednesday, June 15, 2016, Bert Donadelle, Jr., 26, of Georgia, pleaded guilty in District Court on St. Thomas to possession of marijuana with intent to distribute, United States Attorney Ronald W. Sharpe announced.
According to the plea agreement filed with the court, on April 3, 2016, at the Cyril E. King Airport, St. Thomas, Virgin Islands, a U.S. Customs and Border Protection (CBP) K-9 detected narcotics in a checked bag belonging to Donadelle, who had arrived on a Delta Airlines flight from Atlanta. CBP officers examined the contents of the bag, resealed it, and placed it on the carousel for retrieval. Donadelle retrieved the bag, and a second checked bag bearing his name, from the baggage claim area. CBP officers seized and field-tested a total of approximately 8.5 kilograms or more of marijuana from Donadelle’s bags.
District Court Judge Curtis V. Gomez permitted Donadelle to remain on release pending his November 3, 2016, sentencing date. Donadelle faces a maximum sentence of five years’ imprisonment and a maximum fine of $250,000.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Kim L. Chisholm.
Four Charged with Armed Robbery of Several Area Meat MarketsRead the Press Release
HOUSTON – Four men have been indicted on charges associated with the armed robbery of multiple La Michoacana meat markets in December 2015, announced U.S. Attorney Kenneth Magidson.
A federal grand jury returned the 13-count indictment today against Billie Hawkins, 20, Laroderick Martin, 19, Jirron Curtis, 21, and Marcus Malbro, 18, all of Houston. They are currently in state custody and are expected to make their initial appearances before a U.S. magistrate judge in the near future.
The indictment alleges the four men robbed Houston-area La Michoacana meat markets and the Barri Financial Group Kiosks within the stores in December 2015. In each robbery, they were armed, masked and often fired shots into the stores and/or the ceilings, according to the charges. On some occasions they also allegedly assaulted employees. The indictment further indicates the men would drive a stolen vehicle to commit the robberies, then would meet a co-conspirator to depart in a “switch” vehicle.
Locations were scouted prior to the robberies to ensure there were no guards or security, according to the indictment.
The targeted locations included La Michoacana Meat Market and Barri kiosk at 8501 Gulf Freeway, La Michoacana Meat Market at 3910 Aldine Mail Road, La Michoacana Meat Market at 15707 Westpark Road and La Michoacana Meat Market on 1424 Spring Cypress Road in Spring.
Each defendant faces up to 20 years imprisonment for aiding and abetting interference of commerce by robbery, upon conviction. For aiding and abetting the discharge of a firearm during a crime of violence, the possible punishment is up to 10 years in federal prison. Further, if convicted of aiding and abetting the brandishing of a firearm during a crime of violence, a defendant faces another mandatory and consecutive seven years. Each subsequent conviction for the use of a firearm is another 25 years which must be served consecutively to each other and to any other prison term imposed.
The Bureau of Alcohol, Tobacco, Firearm and Explosives conducted the investigation along with FBI, Houston Police Department and Harris County Sheriff’s Office. Assistant U.S. Attorney Celia Moyer is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former U.S. Probation Officer Charged with Obstruction of InvestigationRead the Press Release
HARRISBURG - The United States Attorney's Office for the Middle District of Pennsylvania announced that a Criminal Information was filed today in U.S. District Court in Pittsburgh charging Rachel Lynn Howze with obstructing an official federal proceeding while serving as a U.S. Probation Officer in Pittsburgh.
According to United States Attorney Peter Smith, Howze, age 30, Pittsburgh, attempted to obstruct and impede an investigation of an individual serving a term of federal supervised release. Howze allegedly attempted to obstruct an investigation by intentionally disclosing to unauthorized persons the existence of a state criminal investigation involving the individual under federal supervision.
Together with the Criminal Information, the government filed a plea agreement in the case which is subject to the approval of the court. Howze is no longer employed by the U.S. Probation Office.
The U.S. Attorney’s Office for the Western District of Pennsylvania, which would otherwise be prosecuting the case, is recused under U.S. Department of Justice policy because the defendant was an employee under the supervision of the U.S. District Court in Pittsburgh at the time of the alleged activity.
This investigation was conducted by the Pittsburgh Office of the Federal Bureau of Investigation. Assistant United States Attorney Joseph J. Terz has been assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Former U.S. Postal Employee Sentenced to Probation for Federal Theft ConvictionRead the Press Release
ALBUQUERQUE – Gary J. Devine, 51, of Albuquerque, N.M., was sentenced today in federal court to two years of probation for his conviction on a theft of government funds charge.
Devine was charged in a misdemeanor information filed in Oct. 2015, with theft of government funds. The charge arose from Devine allegedly keeping money belonging to the U.S. Postal Service (USPS) for sales of USPS stamps. At the time, Devine committed the crime, he was employed as Sales and Service Associate at a U.S. Post Office in Albuquerque.
Devine pled guilty on March 8, 2016, to a misdemeanor information charging him with theft of public money and admitted that from May 28, 2015 through May 31, 2015, in Bernalillo County, N.M., he intentionally stole money from the United States by selling USPS stamps to customers and keeping the money for himself rather than turning it in to the Post Office.
This case was investigated by the U.S. Postal Service Office of the Inspector General and was prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Former Miami Beach Resident Pled Guilty to $207 Million Dollar Mail Fraud SchemeRead the Press Release
On June 10, 2016, a former Miami Beach resident pled guilty for his participation in a $207 million dollar mail fraud scheme.
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.
John Utsick, 73, formerly of Miami Beach, Florida, pled guilty to one count of mail fraud, in violation of Title 18, United States Code, Section 1341. Utsick faces a maximum statutory sentence of 20 years in prison. Utsick is scheduled to be sentenced by U.S. District Court Judge Cecilia M. Altonaga on August 23, 2016.
According to the court record, Utsick was charged by superseding indictment with mail fraud related to his operation of two entertainment companies called The Entertainment Group Fund, Inc. (“TEGFI”) and Worldwide Entertainment, Inc. (“Worldwide) from approximately January 1996 through January 2006. Utsick was extradited from Brazil to the Southern District of Florida in December 2014.
During the plea hearing, Utsick admitted that, from January 1996 through December 2005, he devised a scheme to defraud investors by making false representations regarding his concert promotion business. Utsick represented to investors that he would use their money to invest in various concerts, tours, and other entertainment opportunities, and that the investors would receive the greater of guaranteed 10% returns or shares of profits from the various concert ventures. Relying on those representations, individuals sent Utsick money to invest. Utsick provided the investors with account balance statements, purporting to show investment profits -often in the range of 10% to 30% profit.
Contrary to those representations, however, TEGFI and Worldwide lost money from 1995 through 2005, and by mid-2005, Utsick and his companies’ owed investors hundreds of millions of dollars. Utsick knew that his companies were not profitable and that he could not compensate investors as promised based on the current earnings or the assets of the companies. Nevertheless, Utsick invested millions of dollars of investor money in stock options trading. Utsick did not disclose that he intended to use the investors’ money for that purpose, that the stock option trading had nothing to do with the regular activities of Utsick’s concert promotion business, and that he had lost the majority of the investors’ money through stock option trading. Additionally, Utsick used some of the investor money for his own personal benefit and for the benefit of others, without permission or consent.
In total, based upon Utsick’s misrepresentations regarding the stability of his companies and the guaranteed return rates, the defendant obtained approximately $253,942,517 from approximately 2,928 individuals. In 2006, at the time the court-appointed receiver took over to operate Utsick’s companies, the defendant had not reimbursed investors a total of $203,477,335. Following the receivership and liquidated assets, the balance unpaid to the investors totaled $169,177,338.
Pursuant to Utsick’s plea agreement, the United States Attorney’s Office for the Southern District of Florida has agreed to recommend a sentence of 210 months in prison. Utsick has agreed that the relevant loss value is $207,185,420 and has agreed to pay restitution in the amount of $169,177,338. A final sentencing determination will be made by U.S. District Judge Altonaga.
Mr. Ferrer commends the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorneys John P. Gonsoulin and H. Ron Davidson.
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.
Former Insurance Agent/Broker Senenced on Wire Fraud ChargeRead the Press Release
St. Louis, MO – Donald Novak, former licensed insurance agent and broker for various insurance companies, was sentenced to 29 months in prison on charges involving wire fraud. The sentence also included orders of restitution and criminal forfeiture.
According to court documents, between July 28, 2011 and July 30, 2015, Novak devised a scheme to defraud a distant relative, who suffered from certain mental limitations, of inherited assets. The fraud involved the investment, by Novak, of the victim’s funds in annuities which Novak, in turn, surrendered, misappropriated and converted for his own personal use.
"Donald Novak liquidated his client’s retirement assets only to benefit himself and not his client," said Special Agent in Charge William Woods of the FBI St. Louis Division. "This type of fiduciary abuse is on the FBI’s radar, especially going forward with new federal regulations that require financial advisors and brokers to act in the best interest of their clients."
Novak, Ellisville, Missouri, pled guilty in March 2016 to one felony count of wire fraud. He appeared today for sentencing before United States District Judge Ronnie L. White.
The case was investigated by the Postal Inspection Service and Federal Bureau of Investigation. Assistant United States Attorney Charles Birmingham handled the case for the U.S. Attorney’s Office.
Former Fairbanks Chiropractor Sentenced to 17 Years in Prison for Soliciting the Murder of a Witness and Federal Law Enforcement OfficersRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Guy Christopher Mannino, 57, of Fairbanks, was sentenced today in Anchorage to 17 years in federal prison for his convictions for soliciting the murders of a witness and two federal law enforcement agents.
Mannino, a former chiropractor who practiced for several years in Fairbanks, was indicted by a federal grand jury in July 2015 for soliciting several murders while he was in custody at the Fairbanks Correctional Center on an earlier federal prosecution. Mannino had been indicted by another federal grand jury in August 2013 for a number of felony charges related to the unlawful possession and transfer of prohibited weapons, including a machinegun and silencers. While in custody on that case, Mannino solicited another prisoner to murder the principal witness against him, as well as some of the federal law enforcement agents who had been involved in the investigation of the first case.
Mannino proceeded to trial on the murder solicitation charges in February 2016 in Fairbanks, and, following a four-day jury trial, he was found guilty on three of the five counts charged. As a result of those convictions, Mannino faced a statutory maximum sentence of 20 years on each of the counts of conviction.
In imposing the 17-year sentence on Mannino, Senior U.S. District Judge Ralph R. Beistline noted that Mannino had engaged in extremely dangerous conduct in soliciting the murders, and that the trial jury concluded that he intended that these murders actually occur, rather than his conduct simply being “jail house talk” between inmates as Mannino had contended.
The Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Alaska State Troopers (AST) conducted the investigation leading to the indictment and convictions in this case.
Former Cumberland County Attorney Charged with Income Tax EvasionRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Criminal Information was filed in U.S. District Court in Harrisburg on June 14, 2016, charging a former Cumberland County attorney with tax evasion and failure to file a federal tax return.
According to United States Attorney Peter Smith, in 2012, Karl E. Rominger, age 43, an attorney in Carlisle, Pennsylvania, attempted to evade federal income taxes due and owing for the calendar years 2006, 2007, 2008, 2009 and 2010, all years in which Rominger received taxable income. Rominger allegedly made false statements to agents of the Internal Revenue Service (IRS) concerning the location of his business operating accounts, with the intent to evade and defeat the actions of the IRS.
Rominger is also charged with willful failure to file a federal income tax return for the calendar year 2012.
The government also filed a plea agreement with the defendant which is subject to the approval of the court.
The charges stem from an investigation by the Internal Revenue Service. The case is being prosecuted by Assistant United States Attorney Joseph J. Terz.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 6 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Former CEO of Scranton Area Federal Credit Union Charged with Bank FraudRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that the former Chief Executive Officer (“CEO”) of Scranton-based Valor Federal Credit Union (“Valor”), formerly known as Tobyhanna Federal Credit Union, has been charged in an Information with bank fraud and attempted bank fraud.
According to United States Attorney Peter Smith, the charges filed in U.S. District Court in Scranton allege that Sean E. Jelen, age 33, committed and attempted to commit a series of fraudulent activities from July 2014 to August 2015. During the majority of that time, Jelen served as the CEO of Valor. All of the alleged fraudulent activities were associated with Valor and many allegedly involved forged and altered documents created by Jelen.
The Information charges Jelen with executing a scheme to defraud Valor of approximately $718,000, some of which went to pay for his personal credit card, his graduate tuition, his spouse’s birthday party, and a golf tournament sponsorship.
The Information also charges Jelen with rigging elections held for the Valor Board of Directors, whereby he elected and subsequently impersonated fictitious members of the Board of Directors and its Supervising Committee.
The Information further charges Jelen with attempting to obtain an additional approximate $1,146,000 through fraudulent means, and with creating a forged severance contract that would be triggered by his termination.
Valor is a federal credit union, its assets are insured by the National Credit Union Administration (NCUA) which also supervises and regulates it.
The Information seeks forfeiture of property obtained as a result of the fraud, including a residence located in New York. The government also filed a plea agreement with Jelen to the alleged charges, which is subject to approval of the court. A date for his initial appearance has not been set. Valor terminated Jelen’s employment in August.
The investigation was conducted by the Federal Bureau of Investigation (FBI). The case is being prosecuted by Assistant United States Attorneys John Gurganus, Evan Gotlob and Phil Caraballo. Valor’s current management is cooperating with the FBI and the U.S. Attorney’s Office.
Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the charges is 60 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Felon Who Possessed Stolen Guns Sentenced to Six Years in Federal PrisonRead the Press Release
EUGENE, Ore. – Anthony Dominic Whiley, 27, a former resident of Douglas County, Oregon, was sentenced by U.S. District Judge Ann Aiken to a six-year prison term for being a felon in possession of firearms. In January 2016, Whiley, pled guilty to possessing three stolen guns after having been previously convicted in 2008 for burglarizing and attempting to burglarize residences in Snohomish County, Washington.
On December 21, 2013, Douglas County deputies responded to a call of burglary in progress at a home in Glide, Oregon. Deputies arrived and arrested a man and woman, but were informed that a third suspect, identified as Whiley, had fled. Later that night, a deputy spotted Whiley walking on a rural road and attempted to arrest him. Whiley ran off the road into a river and fled into the darkness. Three loaded stolen handguns were found near nearby. Whiley was subsequently found and arrested for the burglary a few hours later. In conjunction with the burglary charges brought by the Douglas County District Attorney’s Office, Whiley disclosed where he had hidden ten other stolen firearms.
On February 19, 2014, Whiley was indicted on federal firearm charges. The United States Attorney’s Office and the Douglas County District Attorney’s Office worked together in achieving a joint resolution of Whiley’s federal and state charges.
The investigation of this case was conducted by the Bureau of Alcohol, Firearms and Tobacco and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Frank R Papagni, Jr. with the assistance of Douglas County District Attorney Rick Wesenberg.
Federal Inmates Charged with Assaulting Another Inmate with A Dangerous WeaponRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on June 14, 2016, a federal grand jury in Scranton indicted Tony Knott, age 32 and Antoine Whitfield, age 26, both federal inmates at the United States Penitentiary Canaan (“USP Canaan”), in Waymart, Pennsylvania, with assaulting another inmate with a dangerous weapon.
According to United States Attorney Peter Smith, the indictment charges Knott and Whitfield with assaulting a fellow inmate at USP Canaan on May 9, 2016. Knott also was charged with possessing a homemade weapon made from a sharpened piece of metal, commonly known as a “shank.”
The investigation was conducted by the Federal Bureau of Investigation and officers from USP Canaan. The case is being prosecuted by Assistant United States Attorney Evan Gotlob.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 10 years of imprisonment for Whitfield and 15 years of imprisonment for Knott, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Eleven Individuals Indicted in June Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the June 2016 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are nonparoleable.”
JEREMY DWAYNE LAVORCHEK, age 28, of Oklahoma City, Oklahoma
Possession With Intent To Distribute Schedule II Controlled Substances
Robbery Involving Controlled Substances
CarjackingThe Indictment alleges that on or about December 9, 2015, within the Eastern District of Oklahoma, the defendant, JEREMY DWAYNE LAVORCHEK, did knowingly and intentionally possess with intent to distribute Schedule II controlled substances, to-wit: OxyContin, Oxycodone, Hydrocodone, Morphine, and Fentanyl and did take by force, violence and intimidation, from the person or presence of another, a material or compound containing any quantity of a controlled substance with a replacement cost of not less than $500 belonging to or in the care, custody, control and possession of a person registered with the Drug Enforcement Administration under Section 302 of the Controlled Substances Act. It is further alleged that the defendant took by force, violence, and intimidation, with the intent to cause death or serious bodily harm, a motor vehicle from a person and that vehicle, a 2011 Honda Pilot, had been transported, shipped, and received in interstate and foreign commerce.
The charges arose from an investigation by the Muskogee Police Department. The charges are in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), punishable by not more than 20 years imprisonment, a fine up to $1,000,000.00 or both; Title 18, United States Code, Section 2118(a), punishable by not more than 20 years imprisonment, a fine up to $250,000.00 or both and Title 18, United States Code, Section 2119(1), punishable by up to 15 years imprisonment, a fine up to $250,000.00 or both.
First Assistant United States Attorney Doug Horn
ROBERT RAY SNOW, age 43, of Garvin, Oklahoma
Theft Of Livestock
The Indictment alleges that from in or about March 2012, to in or about August 2012, in the Eastern District of Oklahoma and elsewhere, ROBERT RAY SNOW, did knowingly and unlawfully obtain and use the property of another in connection with the marketing of livestock in interstate and foreign commerce, with the intent to deprive the other, namely Texas Beef Cattle Company (TBCC) of Amarillo, Texas, of a right to the property and a benefit of the property and did appropriate the property to his own use and the use of another, as follows: the proceeds of the sale of cattle, which had a value of $10,000 and more.
The charge arose from an investigation by the Federal Bureau of Investigation. The charge is in violation of Title 18, United States Code, Section 667, punishable by not more than 5 years imprisonment, a fine up to $250,000.00 or both.
Assistant United States Attorney Timothy Hammer
MICHAEL CHRISTOPHER CONDI, age 38, of Muskogee, Oklahoma
Felon In Possession Of Firearm
Possession Of Firearm With Obliterated Serial Number
ForfeitureThe Indictment alleges that on or about January 22, 2016, within the Eastern District of Oklahoma, the defendant, MICHAEL CHRISTOPHER CONDI, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, with an obliterated serial number. It further alleges that on or about April 13, 2016, the defendant having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, both of which had been shipped and transported in interstate commerce.
The charges are a result from an investigation by the Muskogee Police Department and the Bureau of Alcohol, Tobacco and Firearms. The charges are in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e)(1), punishable by not more than 10 years imprisonment, if determined the defendant is an armed career criminal, not less than 15 years imprisonment, a fine up to $250,000.00 or both.
Assistant United States Attorney Dean Burris
MICHELLE LEA DAVIS, age 38, of El Reno, Oklahoma
Possession With Intent To Distribute Methamphetamine
ForfeitureThe Indictment alleges that on or about April 30, 2016, in the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute 50 grams or more of methamphetamine (actual), a Schedule II controlled substance. Upon conviction of the controlled substance offense alleged in the Indictment, the defendant, shall forfeit to the United States, any and all property constituting, or derived from, the proceeds obtained directly, or indirectly, as a result of the said violation(s) and any property used, or intended to be used, in any manner or part, to commit, or to facilitate the commission of the said violation(s), including but not limited to the following a Money Judgment representing the amount of proceeds obtained as a result of the offense.
The charge is a result of an investigation by the Pittsburg County Sheriff’s Department and the Drug Enforcement Administration, Drug Task Force. The charge is in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years imprisonment or more than life imprisonment, a fine up to $10,000,000.00 or both.
Assistant United States Attorney Kristin Harrington
STEVEN WILLIAM DELIA, age 61, of Tulsa, Oklahoma
Health Care Fraud
ForfeitureThe Indictment alleges that on or about the February 1, 2010, and continuing through November 9, 2010, in the Eastern District of Oklahoma, the defendant, STEVEN WILLIAM DELIA, knowingly and willfully, with the intent to defraud, devised and executed a scheme to defraud the Oklahoma Medicaid program by causing the filing of false claims and receiving Medicaid payments for medical services not rendered by a qualified medical professional. Upon conviction of one of the offenses alleged in violation of Title 18, United States Code, Section 1347, set forth in this Indictment, the defendant, shall forfeit to the United States of America, any property constituting, or derived from, proceeds obtained, directly or indirectly, as a result of such violation, including but not limited to a money judgment representing the amount of proceeds of the acts charged in the Indictment.
The charges are a result of an investigation by the Oklahoma Attorney General - Medicaid Fraud Control Unit, the Department of Defense and the Department of Health and Human Services, Office of Inspector General. The charge is in violation of Title 18, United States Code, Section 1347, punishable by up to 10 years imprisonment, a fine up to $250,000.00 or both.
Assistant United States Attorney Melody Nelson
DONNY JOE WORTHINGTON, age 31, of Durant, Oklahoma
Bank Fraud
ForfeitureThe Indictment alleges that on or about April 19, 2011, and continuing until October 31, 2011, in the Eastern District of Oklahoma and elsewhere, the defendant, did devise and did intend to devise a scheme and artifice to defraud Vision Bank, a federally insured financial institution. Upon conviction of the offenses alleged in violation of Title 18, United States Code, Section 1343 the defendant, shall forfeit to the United States of America, any property constituting, or derived from, proceeds obtained, directly or indirectly, as a result of such violations, including but not limited to a money judgment representing the amount of proceeds of the acts charged in the Indictment.
The charge is a result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigations Division. The charge is in violation of Title 18, United States Code, Section 1344, punishable by up to 30 years imprisonment, a fine up to $1,000,000.00 or both.
Assistant United States Attorney Melody Nelson
KEEVIN MICHAEL RAY WALKER, age 29, of Muskogee, Oklahoma
Felon In Possession Of Firearm
The Indictment alleges that on or about January 16, 2016, in the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, which had been shipped and transported in interstate commerce. The charge is a result of an investigation by the Cherokee Nation Marshals Service, the Muskogee Police Department and the Federal Bureau of Investigation.
The charge is in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00 or both.
Assistant United States Attorney Kristin Harrington
DUSTIN KYLE HARVEY, age 26, of Grant, Oklahoma
Felon In Possession Of Firearm
The Indictment alleges that on or about April 15, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, which had been shipped and transported in interstate commerce.
The charge is a result of an investigation by Choctaw Nation Tribal Police and the Federal Bureau of Investigation. The charge is in violation of the Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e)(1), punishable by not more than 10 years imprisonment, if determined the defendant is an armed career criminal, not less than 15 years imprisonment, a fine up to $250,000.00 or both.
Assistant United States Attorney Dean Burris
GRIFFIN MICHAEL SKYLER TAYLOR, age 30, of Sun Valley, California
Felon In Possession Of Firearm
The Indictment alleges that on or about April 14, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce. The charge is a result of an investigation by the Sallisaw Police Department, the Drug Enforcement Administration and the United States Secret Service.
The charge is in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e)(1), punishable by not more than 10 years imprisonment, if determined the defendant is an armed career criminal, not less than 15 years imprisonment, a fine up to $250,000.00 or both.
Assistant United States Attorney Dean Burris
TRAVIS DANIEL PHILLIPS, age 36, of Muskogee, Oklahoma
Felon In Possession Of Firearm
The Indictment alleges that on or about January 19, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, which had been shipped and transported in interstate commerce. The charge is a result of an investigation by the Muskogee Police Department and the Federal Bureau of Investigation Eastern District Violent Crimes Task Force.
The charge is in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00 or both.
Assistant United States Attorney Rob Wallace
JESSE KENT COX, age 33, of Coweta, Oklahoma
Interstate Transmission Of Extortionate Communication
Wire Fraud
ForfeitureThe Indictment alleges that on or about February 15, 2016, and February 18, 2016, in the Eastern District Oklahoma, the defendant, knowingly and with intent to extort money from two individuals, did transmit in interstate and foreign commerce from Coweta, State of Oklahoma, to the State of Tennessee, a communication in the form of a text message and the communication contained a threat to injure, specifically a threat of bodily harm or death. The Indictment further alleges that from on or about January 1, 2016, and continuing until on or about March 28, 2016, the defendant, devised and intended to devise a scheme to defraud two individuals and to obtain money and property by means of materially false and fraudulent pretenses, representations and promises. Upon conviction of the offense alleged in this Indictment, the defendant, shall forfeit to the United States of America, any property constituting, or derived from, proceeds obtained, directly or indirectly, as a result of such violation, including but not limited to a money judgment representing the amount of proceeds of the acts charged. The charges are a result of an investigation by the Federal Bureau of Investigation.
The charges are in violation of Title 18, United States Code, Section 875(b), punishable by not more than 20 years imprisonment, a fine up to $250,000.00 or both; and Title 18, United States Code, Section 1343, punishable by not more than 20 years imprisonment, a fine up to $250,000.00 or both.
Assistant United States Attorney Rob Wallace
Danbury Man Admits Murdering I-84 Motorist in 2000Read the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALEX GARCIA, 37, of Danbury, pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in New Haven to a federal firearms offense related to the January 17, 2000 murder of Mark Rebong in Danbury.
According to court documents and statements made in court, on January 17, 2000, at approximately 11:02 p.m.., Mark Rebong was discovered in the driver’s seat of an idling vehicle in the vicinity of Exit 2 off of I-84 in Danbury. Mr. Rebong had had been shot once in the head and died as a result of his injuries.
The investigation revealed that GARCIA was a member of the Almighty Latin King and Queen Nation (“Latin Kings”). In late December 1999, there was ongoing dispute in Danbury between the Latin Kings and another criminal gang, the Crips. On December 28, 1999, the dispute escalated as a result of the shooting of a high-ranking member of the Crips.
On January 17, 2000, GARCIA was a passenger in a vehicle traveling westbound on I-84. The driver of the vehicle, a high-ranking member of the Latin Kings, saw Mark Rebong driving near them on the highway and told GARCIA to shoot at Rebong’s vehicle. GARCIA then used an assault rifle to fire two rounds at the vehicle. As a result, Mark Rebong was killed.
Mark Rebong was neither a member of a gang nor engaged in any criminal activity.
“This defendant brutally and senselessly murdered Mark Rebong mistaking him for someone else,” said U.S. Attorney Daly. “Mark was a complete innocent gunned down while driving to work, which makes his death all the more tragic. I thank the DEA, Danbury Police and State Police for never abandoning the search for Mark’s killers, and for achieving justice for Mark and his loved ones. We hope that this conviction brings his family some measure of solace. The investigation of this matter continues.”
GARCIA pleaded guilty to one count of use of a firearm during and in relation to a crime of violence. Judge Meyer scheduled sentencing for September 20, 2016, at which time GARCIA faces a maximum term of imprisonment of life.
In a binding plea agreement, the parties have agreed that a sentence of 30 years of imprisonment is an appropriate disposition of this case.
GARCIA is in state custody serving an unrelated 40-year sentence.
This matter has been investigated by Drug Enforcement Administration New Haven District Office, the Danbury Police Department and the Connecticut State Police Western District Major Crime Squad, with assistance from the Connecticut Department of Correction and the Danbury State’s Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Tracy Lee Dayton.
D.C. Man Pleads Guilty to Armed Robbery of District Heights Liquor StoreRead the Press Release
Greenbelt, Maryland – Donnell Calloway, age 30, of Washington, D.C., pleaded guilty today to robbery conspiracy, and possession of a firearm by a convicted felon.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation; and Chief Hank Stawinski of the Prince George’s County Police Department.
According to his plea agreement, on January 22, 2014, Calloway, Gregory Evans, and another co-conspirator robbed a liquor store in District Heights, Maryland. After entering the store, Calloway stood by the door with a silver .45 caliber handgun. Evans jumped the counter and pointed a black handgun at store employees, demanding that they lay on the ground, while the third co-conspirator took money from the cash register. Evans pointed his gun at an employee who opened the cash register, and Evans took money from that and another register. Calloway, Evans, and their co-conspirator left the store with the money and escaped in a van. A witness followed the van and reported a partial tag number to police.
The van was located by law enforcement in Prince George’s County where it was followed until it came to a stop in Washington D.C. Responding officers saw the occupants exit the van and run away. Officers apprehended Calloway and Evans after a foot chase. After his arrest, a search of Calloway recovered 45 small ziplock bags containing crack cocaine, which Calloway admitted he intended to distribute. Officers also recovered the gun Calloway used during the robbery, a .45 caliber handgun with an obliterated serial number. Calloway had a previous felony drug conviction and was therefore prohibited from possessing a firearm.
Calloway faces a maximum sentence of 30 years in prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for August 15, 2016 at 3:15 p.m.
Gregory Evans, age 30, of Washington D.C., previously pleaded guilty to his role in the robbery and was sentenced to 114 months in prison.
United States Attorney Rod J. Rosenstein commended the FBI and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Thomas M. Sullivan, who is prosecuting the case.
Commercial Pilot Pleads Guilty to Federal Stalking ChargeRead the Press Release
In San Antonio this afternoon, 62-year-old Mark Joseph Uhlenbrock of Chesterfield, Missouri, pleaded guilty to internet stalking announced United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
By pleading guilty, Uhlenbrock admitted that from the end of their romantic relationship in January 2006 to August 2015, he caused substantial emotional distress to his female victim by posting nude photographs of her on the Internet--on MyEx.com and elsewhere--without her consent and despite three Bexar County (TX) civil district court injunctions.
On August 26, 2015, FBI agents executed a search warrant at the defendant’s residence and seized two laptop computers. An examination of the laptops revealed nude photos of his victim and numerous bookmarks to links where the defendant posted nude photos of his victim.
Uhlenbrock faces up to five years in federal prison. Sentencing will be held at a later date before United States District Judge Xavier Rodriguez. Uhlenbrock remains on bond pending sentencing.
This case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Sarah Wannarka.
Cleveland businessman fined $250,000 and put on house arrest for lying about payments to city officialsRead the Press Release
The owner of a business in Cleveland’s Lee-Harvard neighborhood was fined $250,000 and sentenced to six months of house arrest for lying to federal agents about paying cash to city officials, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office.
Ashwani “Eddie” Adya, 50, of Solon, previously pleaded guilty to one count of making a false statement to a law enforcement officer.
Adya operated a retail food and beverage business. Lawrence Payten worked at a nonprofit community organization that promoted commercial development in Cleveland’s Lee-Harvard neighborhood. Lejon C. Woods worked as a contract compliance officer in the City of Cleveland’s Office of Equal Opportunity.
Between November 2009 and August 2010, Adya paid cash to Payten and Woods. He lied about these payments when questioned by an FBI agent on June 18, 2015, according to court documents.
Woods and Payten both pleaded guilty to criminal charges. Woods was sentenced to six months in jail while Payten was sentenced to eight months of house arrest.
This case is being prosecuted by Assistant U.S. Attorneys Adam Hollingsworth and Henry F. DeBaggis following an investigation by the Federal Bureau of Investigation.
Chambersburg Man Indicted on Federal Drug and Firearm ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Chambersburg man has been indicted by a grand jury in Harrisburg on federal drug trafficking and firearm charges.
According to United States Attorney Peter Smith, Quinton Noel Gordon, age 36, of Chambersburg, was charged with being a convicted felon illegally in possession of a loaded .45 caliber handgun, possession of cocaine hydrochloride, heroin, crack cocaine with the intent to distribute, and with possession of the handgun in furtherance of drug trafficking.
The charges arise out of the arrest of Gordon on June 1, 2016 in connection with a search at his residence in Chambersburg. That search led to the recovery of cocaine hydrochloride, crack cocaine, approximately 2 ounces of unpackaged heroin and the loaded .45 caliber handgun.
The investigation was conducted by the Drug Enforcement Administration, the Pennsylvania State Police, and the Franklin County Drug Task Force. The case is being prosecuted by Assistant United States Attorney William A. Behe.
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.
This case was also brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the drug charge is 20 years imprisonment. The felon in possession of a firearm count of the indictment carries a 10 year term of imprisonment. The charge of possessing a firearm to further drug trafficking is punishable by up to life imprisonment and by a mandatory minimum consecutive sentence of 5 years imprisonment. Each count of conviction also includes a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Caryville Resident Sentenced to Serve 160 Months in Prison for Child Pornography OffensesRead the Press Release
KNOXVILLE, Tenn.- On June 15, 2016, Robert Breon Evans, 60, of Caryville, Tenn., was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 160 months in federal prison as a result of his conviction for distribution and possession of child pornography. Following his release from prison, Evans will be supervised by the U.S. Probation Office for 15 years and required to register with the sex offender registry in any state in which he resides, works, or attends school.
Evans pleaded guilty on Feb. 10, 2015 to federal charges stemming from an undercover investigation into distribution of child pornography via peer-to-peer file sharing software on the Internet. After undercover investigators downloaded child pornography from Evans’s computer, a federal search warrant was executed at his residence. A forensic examination of his computer revealed that he had collected thousands of images and videos of child pornography. A large assortment of the depictions of child abuse collected by Evans was available for download by others from his computer through the use of peer-to-peer software.
Nancy Stallard Harr, Acting U.S. Attorney, emphasized the importance of pursuing child pornography offenders. “The United States Attorney’s office will continue to aggressively prosecute individuals who victimize children, who are some of the most vulnerable members of our society, by sharing child pornography on the Internet.”
This investigation was conducted locally by Knoxville Police Department’s Internet Crimes Against Children Task Force. Assistant U.S. Attorney Matthew Morris represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
###
Carbondale Man Charged with Tax EvasionRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Criminal Information was filed today in U.S. District Court in Scranton charging a Carbondale man with tax evasion.
According to United States Attorney Peter Smith, in 2010 and 2011, Thomas Rice, age 64, of Carbondale, made false statements to the Internal Revenue Service to conceal his mother’s assets by deliberating underreporting his mother’s retirement account balance and inflating her expenses in an attempt to evade federal income taxes due for the years 2004 through 2008. At the time, Mr. Rice was acting under a power of attorney for his mother. Rather than reporting his mother’s assets in the retirement account accurately, Mr. Rice was using funds from that account to pay his own personal expenses instead of her outstanding tax balances.
The government also filed a plea agreement with the defendant which is subject to the approval of the court.
The charges stem from an investigation by the Internal Revenue Service. The case is being prosecuted by Assistant United States Attorney Evan Gotlob.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 5 years of imprisonment, a term of supervised release following imprisonment, and a maximum fine of $250,000. 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.
# # #
Burlington County, New Jersey, Man Indicted for Illegally Selling Firearms to Drug Dealers and Felons in South JerseyRead the Press Release
CAMDEN, N.J. - A Burlington County, New Jersey, man was indicted by a federal grand jury today for allegedly selling firearms to criminals in South Jersey, U.S. Attorney Paul J. Fishman announced.
Fr’Neil Hickson, 36, a/k/a “Philly,” of Willingboro, New Jersey, was charged by indictment with one count of dealing in firearms without a federal firearms license, one count of conspiracy to deal in firearms and transport firearms interstate for sale without a license, and one count of possession of firearms by a convicted felon.
According to documents filed in this case and statements made in court:
Hickson allegedly conspired with Joshua Jackson, 35, a/k/a “Apple, a/k/a “Trent,” of Willingboro and Columbus, Ohio; and Terrance Laboo, 43, a/k/a “Terrance Reeves,” a/k/a “Mus,” of Oaklyn, New Jersey, to deal in firearms without a federal firearms license.
Firearms were bought through straw purchasers and at gun shows in Ohio and transported into New Jersey by Jackson and Antonio Berry, of Columbus, Ohio, either in a vehicle rented by Jackson, or by Berry, who took Greyhound buses from Columbus, Ohio, to Philadelphia, Pennsylvania, Camden and Mount Laurel, New Jersey. Berry allegedly carried duffel bags that contained multiple firearms, which were sold and delivered to Hickson and Laboo. Hickson and Laboo sold the guns to drug dealers and other felons in southern New Jersey, including in Camden and Willingboro. Hickson also obtained guns from other sources in Virginia and Pennsylvania and transported them back to New Jersey for unlicensed sales to his customers.
Jackson and Laboo previously pleaded guilty before U.S. District Judge Robert B. Kugler to dealing in firearms without a license, conspiracy to deal in firearms without a license, and possession of firearms by a convicted felon. Both await sentencing in July 2016.
The counts of conspiracy to deal in firearms without a license and dealing firearms without a license each carry a maximum potential penalty of five years in prison and a $250,000 fine. The count of possession of firearms by a convicted felon carries a maximum penalty of 10 years in prison and a maximum fine of $250,000.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge George P. Belsky Jr., Newark Field Division; and Essam Rabadi, Special Agent in Charge of ATF’s Philadelphia Field Division, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney's Office in Camden.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Michael N. Huff Esq., Camden
Brooklyn Tax Return Preparer Sentenced to Prison for Preparing False Tax Returns for ClientsRead the Press Release
A Brooklyn, New York, tax return preparer was sentenced to 36 months in prison today following her guilty plea on Sept. 21, 2015, to two counts of aiding and assisting in the preparation of false income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
“The Tax Division remains committed to pursuing and prosecuting tax return preparers who knowingly prepare false tax returns for their clients,” said Acting Assistant Attorney General Ciraolo. “Fraudulent preparers undermine the integrity of our tax system. Today’s sentence serves as a reminder to all tax return preparers that if you engage in such criminal conduct it will result in prosecution and incarceration.”
Awilda Rosario, 40, owned and operated a tax preparation business in Brooklyn called Edujas Multiservices Corporation. Rosario prepared false individual income tax returns for clients for tax years 2008 through 2013. She attached false schedules that reported business losses the taxpayers did not incur and attached schedules that reported inflated or fictitious deductions. She also attached forms claiming fictitious education and fuel tax credits that the taxpayers were not entitled to receive.
After the Internal Revenue Service (IRS) revoked the Electronic Filing Identification Number (EFIN) for Edujas Multiservices Corporation, Rosario obtained at least two different EFINs and continued to prepare and submit false tax returns for her clients that listed a different paid tax return preparer and tax preparer firm.
In addition to the prison term, U.S. District Judge Nicholas G. Garaufis of the Eastern District of New York ordered Rosario to serve one year of supervised release and pay $607,904 in restitution to the IRS.
Acting Assistant Attorney General Ciraolo thanked special agents of IRS-Criminal Investigation, who investigated the case, and Assistant Chief Jorge Almonte and Trial Attorney Shawn T. Noud of the Justice Department’s Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Baltimore Jail Inmate and Co-Defendant Indicted in Scheme to Fraudulently Use the Identity of a Correctional Officer’s WifeRead the Press Release
Baltimore, Maryland – A federal grand jury indicted Dontae Small, age 42, an inmate at the Baltimore City Detention Center (BCDC) and Kimberly Duckfield, a/k/a “Sincere,” age 29, of Hagerstown, Maryland on charges arising from a scheme to defraud a financial institution through credit card fraud.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Kevin Davis of the Baltimore Police Department.
According to the two count indictment, while an inmate at BCDC, Small unlawfully obtained and recorded the name and credit card number of the wife of a correctional officer at the BCDC. Small then provided this information to Duckfield. From January 4, 2016 to January 19, 2016, Duckfield used the credit card number to pay her telephone bill and buy goods and services.
Both defendants face a maximum sentence of 30 years in prison for bank fraud; and a mandatory minimum of two years in prison for aggravated identity theft consecutive to any other sentence. Duckfield had her initial appearance last Friday and has been detained. An initial appearance has not yet been scheduled for Small.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI and Baltimore City Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Sandra Wilkinson, who is prosecuting the case.
Armed Drug Dealer Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Leon Speight Smoots, 63, of Chickasaw, Alabama, was sentenced in federal court for possession with intent to distribute crack cocaine and using, carrying, or possessing a firearm during and in relation to a drug trafficking felony. Smoots entered a guilty plea to the charges in February of 2016.
United States District Court Judge Callie V. S. Granade imposed sentences of 60 months imprisonment on each count, which are required by law to run consecutively, for a total term of imprisonment of 10 years. Judge Granade also ordered that Smoots serve a five-year term of supervised release when he is discharged from prison. The judge found that Smoots could not pay a fine, but she ordered the imposition of $200 in special mandatory assessments.
The case was investigated by the Mobile County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
9-11 Victim Compensation Fund Pays over $1.52 Billion to Claimants and Announces Updated Regulations and Claim FormRead the Press Release
The Department of Justice announced today that since it reopened in 2011, the September 11th Victim Compensation Fund (VCF) has paid over $1.52 billion to first responders, recovery workers, and residents who suffered physical harm or were killed as a result of the terrorist-related aircraft crashes of Sept. 11, 2001 or the debris removal efforts that took place in the immediate aftermath of those crashes. The VCF is now ready to enter its next phase and today posted for public comment updated regulations that will govern the program for the next several years.
The $1.52 billion includes all payments made to date – either partial or in full – on Group A claims, defined as claims for which a loss determination was issued on or before Dec. 17, 2015. Since reauthorization of the VCF in December 2015, the Special Master has authorized the final payment on 8,930 Group A claims. This means that the VCF has less than 200 Group A claims left to be authorized for full payment. All of the remaining claims have issues preventing payment; however, the VCF is working with claimants and their representatives to resolve the open issues as quickly as possible. The Special Master will authorize payment on remaining Group A claims by the end of the month.
In addition to the priority placed on paying Group A claims as quickly as possible, the Special Master has also issued updated regulations as an Interim Final Rule, with a 30-day post-publication comment period, as well as created an updated claim form.
“It has taken a tremendous amount of work to update the regulations to reflect the reauthorization law and to redesign the claim form to make it easier to use, while at the same time continuing to implement the other changes required by the reauthorization,” said VCF Special Master Sheila Birnbaum. “I encourage claimants to review the new sample claim form and begin gathering the relevant information and documents so they are prepared to submit their claim when the form becomes available online and in hard copy at the end of July. I realize no amount of money can alleviate the losses suffered on Sept. 11, 2001, but the 9-11 community is one of great resilience, and the men and women who are working so hard to process VCF claims are proud and privileged to work with all of you.”
The Interim Final Rule is effective as of today and has been posted on the VCF website for public inspection and review. The rule has also been formally published in the Federal Register and the 30-day comment period has begun. Information on how to submit comments can be found in the document. By publishing the regulations as an Interim Final Rule, the VCF can begin issuing Group B compensation decisions as soon as Group B funding becomes available, while still allowing Special Master Birnbaum to carefully consider any comments received post-publication and make any necessary changes before issuing a Final Rule.
Additionally, the updated claim form has been finalized. A sample version of the revised form can be found on the VCF website. The sample form cannot be submitted as a claim at this time, but provides claimants with a guide to understand the type of information and documents that will be needed once the VCF begins accepting new claims. For more information about the timing for submitting new claims, please see the Special Master’s May 24 message.
The VCF continues to review Group B claims and contact claimants to request missing information when needed. The VCF has rendered more than 2,500 eligibility decisions since the beginning of January and completed loss calculations for more than 1,000 claims. The VCF continues to send “Group B Complete” letters to claimants to inform them that their claim has been reviewed and any eligible loss has been calculated. The Special Master expects to begin issuing the first Group B loss determinations at the end of June, with the expectation that the first full payments will be authorized in mid-August. This is contingent on finalizing the accounting for Group A payments and the subsequent availability of Group B funding.
Claimants are encouraged to call the VCF Helpline at 1-855-885-1555 with any questions they may have. For the hearing impaired, please call 1-855-885-1558 (TDD). If you are calling from outside the United States, please call 1-202-514-1100.
14 June 2016
Women from Essex County, New Jersey, and Brooklyn, New York, Admit Roles in Oxycodone Distribution RingRead the Press Release
NEWARK, N.J. – Two women have admitted to their respective roles in a conspiracy to illegally obtain and distribute oxycodone in New Jersey, U.S. Attorney Paul J. Fishman announced today.
Alexis Horvath, 27, of Belleville, New Jersey, pleaded guilty today before U.S. District Judge Esther Salas in Newark federal court to an indictment charging her with conspiracy to distribute oxycodone. Sabrina Vajda, 32, of Brooklyn, New York, pleaded guilty before Judge Salas on June 13, 2016, to a superseding information charging her with conspiracy to distribute oxycodone.
According to documents filed in this case and statements made in court:
Using confidential sources, physical surveillance, and recorded text messages and telephone calls, investigators with the Drug Enforcement Administration (DEA) discovered that members and suppliers of a drug trafficking organization secured prescriptions for oxycodone and other controlled substances from various doctors in New Jersey, filled them at pharmacies in Belleville and elsewhere, and sold the drugs for a profit. The investigation identified Horvath and Vajda as members of the drug trafficking organization.
Horvath admitted that between Feb. 5, 2014, and Aug. 13, 2014, she personally obtained prescriptions for oxycodone-containing pills from doctors, had those prescriptions filled at pharmacies, and then re-sold the pills to others. She admitted that she bought 70 30 mg. oxycodone pills from one conspirator on June 29, 2014 in Jersey City, New Jersey, and then sold them to another conspirator.
Vajda admitted that between May 3, 2014 and Aug. 13, 2014, she also worked with other conspirators to obtain prescriptions for oxycodone-containing pills from doctors, had those prescriptions filled at pharmacies, and then resold the pills to others. On May 7, 2014, she went to a doctor’s office near Paterson, New Jersey with three conspirators and obtained a prescription for pills that contained oxycodone from that doctor. She then sold the oxycodone pills from her prescription to others.
Oxycodone is a Schedule II controlled substance – meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.
The charge to which Horvath and Vajda each pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing for Horvath and Vajda is scheduled for Sept. 19, 2016.
Of the individuals originally charged with Horvath and Vajda, Victoria Horvath, 43, and Rickie Horvath, 54, of Belleville, New Jersey; Monica Horvath, 22, Tony Marco, 47, and Steven Horvath, 45, all of Rutherford, New Jersey, and Justin Farraj, 24, and Matthew Policarpio, 28, of Newark, have pleaded guilty and await sentencing. Brian Perez, 23, was sentenced to a term of 40 months in prison in September 2014. Luis Rivera, 25, was sentenced to 54 months in prison in August 2015. Daniel Horvath, 27, was sentenced to 27 months in prison and Johnny Horvath, 46, was sentenced to 30 months in prison in April 2016. Charges were dismissed against Belleville pharmacist Vincent Cozzarelli after his death in April 2014.
The indictment remains pending against four other conspirators. The charges and allegations in the indictment against them are merely accusations, and they remain innocent unless and until proven guilty.
U.S. Attorney Fishman credited the DEA’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, with the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the OCDETF/Narcotics Unit of the U.S. Attorney’s Office in Newark. This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Defense counsel:
Horvath: Anthony Iacullo Esq., Nutley, New Jersey
Vajda: Laurie Fierro Esq., Kinnelon, New Jersey
United States Files Lawsuit Against Former NYS Deputy Secretary of State and his Daughter for Engaging in Conduct Designed to Avoid a Criminal Restitution ObligationRead the Press Release
ALBANY, NEW YORK – U.S. Attorney Richard S. Hartunian announced today that the United States has filed a civil lawsuit against Joseph Felix Strevell (Strevell), age 54, and his adult daughter, Nicole Strevell Childrose (Childrose), age 30, alleging that Strevell engaged in a series of transactions that were made with the purpose and effect of rendering Strevell unable to pay restitution to New York State (NYS) following his 2009 fraud conviction. The lawsuit filed today seeks to recover those funds, together with penalties and interest.
U.S. Attorney Hartunian said: “Instead of satisfying his Court ordered restitution obligation, Joseph Strevell decided to financially enrich his grown daughter by fraudulently transferring assets to her. Restitution is a mandatory obligation and no felon should be allowed to evade that obligation. Through this civil action, we seek to void the transfers and make the victim of his crime whole.”
From 1997 to 1999, Strevell served as a Deputy Secretary of State for the State of New York. He left that position to serve as the head of the Institute for Entrepreneurship, a state sponsored nonprofit agency. In 2007, Strevell was convicted in federal court of defrauding NYS while leading the Institute. In March 2009, the United States District Court for the Northern District of New York entered judgment against Strevell on this conviction, ordering him to pay $111,500 in restitution to his victim, NYS. The judgment required Strevell to pay restitution at a minimum rate of $100 per month or 10 percent of his gross monthly earnings, whichever was greater, and to pay full restitution immediately if at any time he had the resources to do so.
According to the Complaint that was filed, Strevell still owes NYS $102,337.44 on his restitution judgment. In an effort to determine Strevell’s ability to satisfy this judgment, the United States undertook an investigation into Strevell’s assets during which Strevell maintained that he did not have the financial ability to satisfy the judgment. However, the investigation revealed that from 2012 through 2014, Strevell transferred a total of $157,646.00 to his adult daughter, for her personal benefit, while only paying $6,750.00 in restitution during that same time period. The Complaint alleges that Strevell is now unable to pay his restitution obligation because of the fraudulent transfers to his daughter, who works full-time as a college professor. The transfers Strevell made to his daughter were made in incremental amounts and from various business accounts that Strevell hid from the government. The Complaint also alleges that in order to fund his daughter’s wedding in May 2014, Strevell transferred approximately $28,000 to her personal checking account in the two months before her wedding. Additionally, he bought her three wedding gowns (ranging in cost from $1,400 – $2,500 each); paid in cash for the wedding tent, tables, linens and place settings ($10,435.25); hired her a professional photographer ($2,246); and funded her honeymoon at the Four Seasons Hotel, in Santa Fe, New Mexico. These transactions were made in such a way so as to avoid detection by the government. Additionally, in November 2015, Strevell paid $13,871.80 in cash to the Rensselaer County Bureau of Finance to satisfy his daughter’s unpaid property tax obligations when a property she and her husband owned was scheduled to be sold at an auction. The Complaint further alleges that Strevell made these transfers with the intent to defraud the United States and, as a result of the transfers to his daughter, he is no longer able to meet his restitution obligation. In its Complaint, the United States seeks entry of an order that would void these fraudulent transfers that unfairly enriched Childrose at the expense of the taxpayers.
This case was investigated by the Financial Litigation Unit of the U.S. Attorney’s Office’s Civil Division. The lawsuit is being handled by Assistant U.S. Attorney Cathleen B. Clark.
Union County, New Jersey, Man Admits Aiming Laser Pointer at Television News HelicopterRead the Press Release
NEWARK, N.J. - An Elizabeth, New Jersey, man today admitted repeatedly aiming a laser pointer at a television news helicopter, U.S. Attorney Paul J. Fishman announced.
Stiven Lopez-Bender, 27, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count of aiming a laser pointer at an aircraft.
According to documents filed in this case and statements made in court:
On Nov. 11, 2015, a news helicopter went to a location in Elizabeth to cover a story. Lopez-Bender admitted that when the helicopter arrived at the location, he aimed a green laser and struck the flight deck of the helicopter through the main windshield.
Lopez-Bender also admitted he pointed the green laser at the helicopter a second time as he emerged from his SUV and again as he walked toward an apartment building. Afterwards, he pointed the green laser at the helicopter for a fourth time from a window in the apartment building he had just entered.
The charge is punishable by a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 28, 2016.
U.S. Attorney Fishman credited Special Agents and Joint Terrorism Task Force Officers of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and members of the Elizabeth Police Department, under the leadership of Police Director James Cosgrove, with the investigation leading to today’s plea.
The case is being prosecuted by Joyce M. Malliet of the U.S. Attorney’s Office National Security Unit in Newark.
Defense Counsel: David Holman, Esq.
Two dealers appear in Federal court on drug chargesRead the Press Release
CHARLESTON, W.Va. – Two men appeared in federal court today on drug charges, announced Acting United States Attorney Carol Casto.
Adam Christopher Skeens, 45, of Princeton, was sentenced to two and a half years in federal prison for distribution of hydromorphone. Skeens admitted that on February 23, 2015, he distributed hydromorphone pills to a confidential informant in Princeton. He further admitted that he distributed hydromorphone to a confidential informant on two other occasions.
In a separate drug prosecution, Jalil M. Myers, 19, of Charleston, pleaded guilty to distributing heroin. Myers admitted that on November 5, 2015, and on three other occasions, he sold heroin to a confidential informant working with law enforcement authorities. Myers faces up to 20 years in federal prison when he is sentenced on August 29, 2016.
The Skeens case was investigated by the Southern Regional Drug and Violent Crime Task Force. Assistant United States Attorney John File handled the prosecution. Senior United States District Judge David A. Faber imposed the sentence.
The case against Myers was investigated by the South Charleston Police Department. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. The plea hearing was held before United States District Judge John T. Copenhaver, Jr.
These prosecutions were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
-
Follow us on Twitter: SDWVNews
-
Two Men, One Woman Charged with Luring Robbery Victims with Online Escort AdsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two men and a woman have been charged in federal court for their roles in a conspiracy to use online ads for escort services as a means to lure victims to hotel rooms in order to rob them.
Kenneth W. Sexson, 32, Sage E. Harrison, 34, and Nicole L. Covey, also known as Nicole Waguespack and Nicole Preston, 33, all of the Kansas City metropolitan area, were charged in a criminal complaint filed under seal in the U.S. District Court in Kansas City, Mo., on Wednesday, June 8, 2016. That complaint was unsealed and made public today at the initial court appearances of Sexson and Covey. Harrison remains at large.
Today’s federal criminal complaint alleges that Sexson, Harrison and Covey participated in a conspiracy to rob individuals by using several websites (including craigslist.org, backpage.com and skout.com) to make connections with their victims. They allegedly communicated through these websites to arrange meetings with their victims in order to rob them. In addition to the conspiracy, the complaint charges each of the defendants in one count of robbery affecting interstate commerce.
According to an affidavit filed in support of today’s complaint, Sexon, Harrison and Covey used social media services to post ads with Covey’s photo in order to lure victims into meeting in person. Once Covey began communicating with the victim, they would agree to meet at a hotel or apartment. When the victim arrived at the agreed upon location, Covey would excuse herself to the restroom or walk away as co-conspirators robbed the victim of money, phones and other items.
According to the affidavit, conspirators used handguns, or what appeared to be handguns. They allegedly sometimes assaulted their victims and one victim told investigators that his attackers took his vehicle and he escaped by jumping from the moving vehicle on the highway in fear for his life.
The affidavit cites a series of seven robberies that occurred in October 2015 in Kansas City, Mo.; Independence, Mo.; and North Kansas City, Mo. Investigators learned of a number of additional robberies disclosed during interviews, including two robberies in Blue Springs, Mo.
On May 27, 2016, Independence police officers received a report regarding a new robbery. The victim reported that he had responded to a Craigslist ad for a female escort. Upon arriving at the hotel room in Independence, the victim was instructed to leave the money on the nightstand. After he set the money down, the female excused herself to the bathroom, and the victim was confronted by three large white males. Investigators identified Sexson, Covey and others as suspects in that robbery.
Sexson and Covey were arrested in Kansas on June 7, 2016. According to the affidavit, Independence police officers responded to a witness’s report of shots being fired at her from another vehicle. They located a white U-Haul cargo van being driven by Sexson near Highway 291 and Truman Road. A pursuit was initiated, which reached speeds of more than 100 miles per hour. During the pursuit, police officers saw an unknown object get thrown from the vehicle. A handgun, a magazine and ammunition were recovered at this location. Officers also saw two long guns get thrown from the vehicle. Two shotguns were located and recovered in this area. The pursuit continued toward Leavenworth County, Kan. Tire deflation devices were deployed against the van multiple times. The pursuit ended only after the van became disabled as a result of the damage suffered during the pursuit. Sexson, Covey and two other individuals were arrested.
Dickinson cautioned that the charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Matthew P. Wolesky. It was investigated by the FBI, the Kansas City, Mo., Police Department, the North Kansas City, Mo., Police Department, the Independence, Mo., Police Department, and the Blue Springs, Mo., Police Department.
Tulsa Teacher Pleads Guilty to Receiving Child PornographyRead the Press Release
TULSA, Okla.—James Russell Wilson, a Union Public Schools teacher, pleaded guilty today to receiving child pornography, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.
At the change of plea hearing, Wilson, 32, of Tulsa, admitted that, from in or about October 2014 to in or about December 2014, he knowingly received, and attempted to receive, visual depictions of minors engaged in sexually explicit conduct.
At the time of sentencing, if the Court accepts the plea agreement, Wilson will be sentenced to 13 years in prison and a term of 20 years of supervised release following his imprisonment.
United States Immigration Customs Enforcement’s Homeland Security Investigations was the investigating agency. Assistant United States Attorneys Andrew J. Hofland and Allen J. Litchfield are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
###
Transporting and Harboring Undocumented Aliens Lands Four in PrisonRead the Press Release
McALLEN, Texas – Three men and one woman who conspired to transport and harbor illegal aliens have been sentenced to prison, announced U.S. Attorney Kenneth Magidson. Jorge Luis Ortiz-Aguilera, 36, of Mexico; and Jose Mario Ledezma-Vega, 47, and Willie Vargas, 34, both of Edinburg, pleaded guilty in January 2016 to conspiring to transport illegal aliens within the U.S. Juan Covarrubias-Hernandez, 30, and Anayeli Gonzalez-Trejo, 25, both of Mexico, had pleaded guilty to conspiring to harbor illegal aliens.
Today, U.S. District Judge Randy Crane took into consideration the leadership roles of Ortiz-Aguilera and Ledezma-Vega and handed them each a 51-month sentence. Ortiz was the head of the organization and Ledezma was in charge of coordinating the scouts in the Rio Grande Valley which facilitated the transportation/movement of the aliens to the Houston area. Vargas and Gonzalez-Trejo received respective sentences of 17 months and 12 months and a day. Covarrubias-Hernandez will be sentenced at a later date.
From on or about July 2015 through October 2015, Ortiz-Aguilera coordinated the transportation of aliens from the Rio Grande Valley in Texas to a location near Houston. During the course of the conspiracy, Ledezma-Vega and Vargas acted as “scouts” for law enforcement for the vehicles transporting the aliens, in an attempt to avoid their detention.
In October 2015, working with the same organization, Covarrubias-Hernandez and Gonzalez-Trejo jointly provided food and shelter to group of aliens at their home in Donna. The aliens was subsequently apprehended by Border Patrol agents as they were being transported further north.
All five defendants have been and will remain in custody.
The investigation was the result of an investigation led by Border Patrol with the assistance of Homeland Security Investigations. Assistant U.S. Attorney Linda Requénez prosecuted the case.
Three indicted for defrauding banks with alterered money ordersRead the Press Release
A federal grand jury returned a four-count indictment charging Michael Baker, 23, of Covington, Georgia; Clinton Gaynor, 27, and Asia Loveless, 20, both of Cleveland, for defrauding local banks by presenting altered U.S. Postal money orders into the bank accounts of recruited people and later withdrawing funds under false pretenses, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio.
The indictment alleges that Baker, Gaynor and Loveless recruited local people to deposit 119 altered U.S. Postal money orders into their bank accounts and later made cash withdrawals totaling over $59,000 from various ATMs.
Assistant United States Attorneys Robert W. Kern and Karrie D. Howard are prosecuting this case, following an investigation by the U.S. Postal Inspection Service.
If convicted, the court will determine the defendants’ sentence after a review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Syracuse Man Pleads Guilty to Gun Store BurglaryRead the Press Release
SYRACUSE, NEW YORK – Leron T. Ross, 25, of Syracuse, New York pled guilty today to burglarizing a federally licensed gun dealer in Nedrow, New York, announced United States Attorney Richard S. Hartunian and U.S. Bureau of Alcohol, Firearms and Explosives (ATF) Special Agent in Charge Delano Reid.
As part of his guilty plea today, Ross admitted that he used a sledgehammer to break through the door of Intimidator Sports, also known as E.C.K. Tree and Outdoor Equipment in Nedrow, New York, in the early morning hours of November 20, 2014. Upon gaining entry to the store, Leron Ross and another man used bolt cutters to sever a steel cable securing pistols in a display case, stealing nine (9) handguns and departing before Onondaga County Sheriff’s Deputies responded to an alarm tripped by the break-in.
On January 5, 2015, Syracuse Police encountered Leron Ross for failing to stop at a stop sign. As Syracuse Police Officers approached his car, Ross sped off. During a short pursuit, Leron Ross threw a .45 caliber Glock Pistol from his car that was stolen in the E.C.K. burglary. It was later recovered by police. On March 12, 2015, Ross pled guilty in Onondaga County Court to Criminal Possession of a Weapon in the Second Degree, and was sentenced to thirty (30) months in state prison.
During an interview in state prison in January 2016, Ross admitted to an ATF Special Agent and Onondaga County Sheriff’s Detectives that he had committed the burglary of the gun dealer, stealing nine (9) handguns. According to ATF and the Onondaga County Sheriff’s Department, four (4) of the stolen firearms have been recovered by law enforcement agencies to date.
Sentencing for Leron Ross is scheduled for October 19, 2016 in Syracuse, New York. The charge to which Ross pled guilty to today carries a maximum sentence of up to ten (10) years imprisonment, a fine of up to $250,000 and term of supervised release of three (3) years, as well as restitution for the stolen firearms. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
A second defendant, Andrew Grady, of Syracuse, is charged by complaint. The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by the United States Bureau of Alcohol Tobacco, Firearms and Explosives (ATF) and the Onondaga County Sheriff’s Department, and is being prosecuted by Assistant U.S. Attorneys Richard Southwick and Emmet O’Hanlon.
Shreveport man pleads guilty to sex trafficking of a minorRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Shreveport man pleaded guilty to sex trafficking.
Zayne Ghandi Anderson, 40, of Shreveport, pleaded guilty Monday before U.S. District Judge Elizabeth E. Foote to one count of sex trafficking of a minor. According to the guilty plea, as part of an investigation, undercover law enforcement agents responded to an online advertisement for prostitution, which resulted in them contacting and meeting a 16-year-old female on April 17, 2015. Upon interviewing the minor, agents discovered that Anderson had posted the advertisement online and set up the meeting where the minor agreed to have commercial sex. Anderson was arrested after arriving to pick up the minor.
Anderson faces 10 years to life in prison, five years to life of supervised release and a $250,000 fine. He also is required to register as a sex offender. A sentencing date of October 14, 2016 was set.
The FBI Violent Crimes Against Children Task Force conducted the investigation. Assistant U.S. Attorneys Earl M. Campbell and Jonathan S. Drucker are prosecuting the case.
Second U.S.-China Cybercrime and Related Issues High Level Joint DialogueRead the Press Release
Joint Summary of Outcomes
Today, Chinese State Councilor and Minister of Ministry of Public Security Guo Shengkun co-chaired the second U.S.-China Cybercrime and Related Issues High Level Joint Dialogue with representatives of the U.S. Departments of Justice and Homeland Security. The dialogue aims to implement the consensus reached between Chinese President Xi Jinping and U.S. President Barack Obama in September 2015 during President Xi’s visit to the United States, and to enhance pragmatic bilateral cooperation with regard to cybercrime, network protection and other related issues.
Since the first dialogue, both sides have worked to implement the consensus reached between the two countries’ presidents and the outcomes of the first dialogue. Both sides continue to develop cooperation on combating cybercrime and network protection investigations and information exchanges, aiming to conduct routine exchanges and improve cyber security cooperation.
The outcomes of the second dialogue are listed as below:
- Tabletop Exercise. Both sides value the cyber tabletop exercise held in April 2016, and regard the exercise as informative and effective. Both sides decided to hold a second tabletop exercise concerning cybercrime and network protection prior to the next dialogue.
- Hotline Mechanism. Both sides decided to implement the “U.S.-China Cybercrime and Related Issues Hotline Mechanism Work Plan,” and have reached consensus on the scope, objective and procedures of the hotline. China and the United States decided to test the hotline mechanism before September 2016.
- Network Protection. Both sides decided to continue to strengthen cooperation in network protection. Both sides decided to hold a network security and protection working-level expert seminar in August 2016 in China. The experts decided to meet regularly in the future and report to the ministerial level at the High-Level dialogue in the future.
- Information Sharing, Case Cooperation and Resources. Both sides decided to: enhance case investigations and information exchange related to cybercrime and other malicious cyber activities; exchange information and develop cooperation in cybercrime investigations and cyber incidents of mutual concern; hold a workshop to discuss how to enhance information exchanges and handling related to Mutual Legal Assistance Agreement (MLAA); and share cyber threat information on a regular basis, including increasing information sharing of malicious software samples and related analysis reports. Both sides acknowledge the importance of the increase of manpower and resources to tackle cybercrime threats and decided to further strengthen communication mechanisms as well as respective central authorities under the MLAA. Both sides discussed the 24/7 High Tech Network of international points of contact for the purpose of assisting in investigations involving electronic evidence that require urgent assistance from foreign law enforcement.
- Cyber-Enabled Crime. Both sides commit to prioritize cooperation on combatting cyber-enabled intellectual property (IP) theft for commercial gain and cooperate in law enforcement operations in four additional areas: online child pornography distribution, misuse of technology and communications for terrorist activities, commercial email compromise/phishing and online firearms trafficking. Both sides decided to conduct a proposed seminar on misuse of technology and communications to facilitate violent acts of terrorism in 2016 in China before the next round of the dialogue. The United States and China decided to create an action plan to address the threat posed from business email compromise scams.
- Senior Experts Group. Both sides discussed the first U.S.-China Senior Experts Group on International Norms in Cyberspace and Related Issues.
- Third High-Level Dialogue. Both sides plan to hold the next round of the dialogue in the second half of 2016 in Washington, D.C.
Sanford “Spam King” Wallace Sentenced to Two and A Half Years in Custody for Spamming Facebook UsersRead the Press Release
SAN JOSE – Sanford Wallace was sentenced yesterday to 30 months’ imprisonment and was ordered to pay $310,628.55 in restitution for sending millions of spam messages to Facebook users and disobeying a court order not to access Facebook announced the Office of the United States Attorney for the Northern District of California and the Federal Bureau of Investigation.
Wallace, 47, of Las Vegas, pleaded guilty on August 24, 2015 to one count of fraud and related activity in connection with electronic mail, in violation of 18 U.S.C. §§ 1037(a)(1) and (b)(2)(A); and one count of criminal contempt, in violation of 18 U.S.C. § 401(3). According to the plea agreement Wallace admitted to executing a scheme from approximately November 2008 through March 2009 to send spam messages to Facebook users that compromised approximately 500,000 legitimate Facebook accounts, and resulted in over 27 million spam messages being sent through Facebook’s servers.
Wallace illegally obtained, stored, and exploited Facebook user account information and earned money by redirecting users to other websites. Specifically, Wallace admitted he opened a fictitious Facebook account in the name of “David Frederix” to test his spam messages and created an automated process to sign into a Facebook user’s account, retrieve a list of all of the user’s friends, and then send a message to each of the user’s friends’ Facebook accounts. The message was designed to trick legitimate Facebook account holders into accessing a website listed in the message that was purportedly from a Facebook friend. Once the user entered his or her information, the user would be redirected to an affiliate website. Wallace further admitted that he earned money for directing traffic to the websites and stored users’ email addresses and passwords in order to continue sending spam messages.
In addition, Wallace admitted that during three time periods he accessed Facebook’s computer network to send spam messages to Facebook’s users. First, on or about November 5, 2008, and continuing to November 6, 2008, he accessed Facebook’s computer network in order to initiate the transmission of a program that resulted in more than 128,883 spam messages being sent to Facebook users. Second, he admitted that on December 28, 2008, he accessed Facebook’s computer network in order to initiate the transmission of a program that resulted in nearly 300,000 spam messages being sent to Facebook users. Third, he admitted that on February 17, 2009, he accessed Facebook’s computer network in order to initiate the transmission of a program that resulted in more than 126,000 spam messages being sent to Facebook users.
Facebook filed a lawsuit against him in United States District Court for the Northern District of California alleging violations of the CAN-SPAM Act of 2003, the Computer Fraud and Abuse Act, and California’s Anti-Phishing and Computer Data Access and Fraud Acts. (Facebook, Inc. v. Wallace, et al, No. C-09-00798 JF). On March 2, 2009, March 24, 2009, and September 18, 2009, U.S. District Court Judge Jeremy Fogel ordered Wallace not to access or attempt to access Facebook’s computer network in any manner whatsoever nor create or maintain a Facebook account. Wallace admitted that on April 17, 2009, he willfully disobeyed Judge Fogel’s order by logging into his Facebook account while aboard a flight from Las Vegas to New York.
Wallace was indicted by a federal grand jury on July 6, 2011. He was charged with multiple counts of fraud and related activity in connection with electronic mail, in violation of 18 U.S.C. §§1037(a)(1) and (b)(2)(A); 18 U.S.C. §§ 1037(a)(2) and (b)(2)(C); and 18 U.S.C. §§ 1037(a)(4) and (b)(2)(B). Wallace was also charged with three counts of intentional damage to a protected computer, in violation of 18 U.S.C. §§ 1030(a)(5)(A) and (c)(4)(B)(i), for accessing Facebook’s computer network and two counts of criminal contempt, in violation of 18 U.S.C. § 401(3) for disobeying Judge Fogel’s order.
The sentence was handed down by the Honorable Edward J. Davila, U.S. District Judge. Judge Davila also sentenced the defendant to a five-year period of supervised release. The defendant will begin serving the sentence on September 7, 2016.
Assistant U.S. Attorney Susan Knight is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Professional Photographer Charged with Possessing Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont announced today that a federal grand jury returned an indictment charging John Penwarden, a professional photographer of Orwell, Vermont, with Possession of Child Pornography, including at least one depiction involving a prepubescent child or a child not yet twelve years old. The defendant appeared today in District Court in Burlington before Magistrate Judge John M. Conroy and entered a plea of not guilty to the sole count of the indictment. Federal authorities adopted the case from the state, where multiple charges had been pending against the defendant, including the Use of a Child in a Sexual Performance, Possession of Child Pornography, Aggravated Sexual Assault, and Possession of Marijuana. According to the Addison County affidavit submitted on May 8, 2015, law enforcement executed a search warrant on the defendant’s home in December 2014, following reports by a then-thirteen year old victim that the defendant had committed repeated sexual contact offenses with her beginning when she was eight or nine years old, including taking pornographic pictures of the victim. According to the same affidavit, the search warrant was followed by a forensic analysis of the defendant’s computer and electronic hardware. In sum, the report indicated that the state examiners discovered approximately 76 sexually explicit images of both male and female children, ranging in age from toddler to early teen. Of those 76 images, approximately 50 appeared to be sexually explicit depictions of the reporting victim. If convicted, Penwarden faces up to twenty years of imprisonment. The actual sentence, however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The case was assigned to United States District Court Judge Geoffrey W. Crawford in Rutland, Vermont. The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty. The United States is represented in this matter by Assistant U.S. Attorney Abigail Averbach. John Penwarden is represented by Jordana Levine, Esq. Homeland Security Investigations, the investigative arm of the Department of Homeland Security, has agreed to assist the Vermont State Police and spearhead further investigation.Philadelphia Man Charged with Possession of Firearm by A Convicted FelonRead the Press Release
PHILADELPHIA - Dennis Burgos, 48, of Philadelphia, Pennsylvania, was charged by indictment with one count of possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger. According to the indictment, on April 7, 2016, the defendant was found in Philadelphia in possession of a loaded Glock 23 semi-automatic handgun.
If convicted, the defendant faces a maximum possible sentence of life in prison, up to three years of supervised release, a possible fine, and a $100 special assessment.
This case was investigated by the Philadelphia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Special Assistant United States Attorney Christopher E. Parisi.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New Plymouth Man Sentenced to 57 Months in Prison for Unlawful Possession of FirearmsRead the Press Release
BOISE -- Delbert Rundell, 63, of New Plymouth, Idaho, was sentenced yesterday in United States District Court to 57 months in prison and three years of supervised release for possession of firearms by an unlawful user of controlled substances, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Rundell to forfeit $21,580 in drug proceeds, 33 firearms, and approximately 28,000 rounds of ammunition. He pleaded guilty on March 21, 2016.
According to evidence presented in court, a shooting occurred at Rundell’s home on October 28, 2015. After interviewing the victim of the shooting, officers obtained a search warrant for Rundell’s home and searched it on November 12, 2015. Inside the home officers found 42 grams of methamphetamine, 33 firearms, and evidence of drug use. Federal law prohibits a user of illegal controlled substances from possessing a firearm.
The case was investigated by the High Desert Task Force, Idaho State Police, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Drug Enforcement Administration. The High Desert Task Force is a collaboration of law enforcement agencies from Payette County Sheriff’s Office, Payette Police Department, Fruitland Police Department, Washington County Sheriff’s Office, Weiser Police Department, Malheur County Sheriff’s Office, Ontario Police Department, and the Nyssa Police Department.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
New Jersey Man Pleads Guilty to Conspiracy to Provide False Statements Related to Export of Prohibited Goods to IranRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a New Jersey man pleaded guilty to conspiring to provide false statements related to illegally exporting goods to Iran before United States Magistrate Judge Joseph F. Saporito in Wilkes-Barre.
According to United States Attorney Peter Smith, Asim Fareed, age 51, of North Brunswick, New Jersey, pleaded guilty to conspiracy to provide false statements in connection to the illegal export of goods to Iran. According to the Information to which he pleaded guilty, Fareed operated an export business in Somerset, New Jersey and agreed to ship items purchased by customers in Iran and to provide false documentation to the U.S. Department of Commerce for export purposes. Communications concerning the shipments passed between New Jersey and a site in Lackawanna County, Pennsylvania. No actual shipments were, in fact, delivered to Iran.
The Information charges that in 2013 and 2014 Fareed conspired with others to export items from the United States, through third party countries to customers in Iran. According to the Information, Fareed prepared invoices which included false information as to the identity and geographic location of the purchasers of the goods. The items were then to be shipped from the United States to the United Arab Emirates, and thereafter transshipped to Iran. The guilty plea is pursuant to a plea agreement with the government.
"The Office of Export Enforcement protects our national security and foreign policy interests by vigorously pursuing violators of our nation's export control laws. Today's guilty plea is an example of our close work with our colleagues at HSI and other law enforcement agencies to complement our robust enforcement program. Providing or causing false statements on export documents and illicit trade with Iran will remain a high priority for the Office of Export Enforcement," said Jonathan Carson, Special Agent in Charge, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office."
“This case demonstrates how far individuals will go to circumvent U.S. export laws to export goods to countries like the Islamic Republic of Iran,” said Angel M. Melendez, special agent in charge of HSI in New York. “The Iran Trade Embargo prohibits Americans from supplying goods, technology and services to Iran directly or indirectly. HSI is committed to aggressively pursuing those who conduct illegal business with Iran.”
No sentencing date has been scheduled.
The case was investigated by the Department of Commerce, Office of Export Enforcement and U.S. Immigration and Custom Enforcement’s (ICE), Homeland Security Investigations (HSI). Assistant U.S. Attorney Todd K. Hinkley is prosecuting the case.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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.
# # #
Navajo Man from Littlewater Sentenced to Prison for Assaulting Federally Commissioned Tribal OfficerRead the Press Release
ALBUQUERQUE – Eugene Kuhn, 52, a member of the Navajo Nation who resides in Littlewater, N.M., was sentenced today in federal court in Albuquerque, N.M., to 18 months in prison followed by three years of supervised release for assaulting a federal officer with a dangerous weapon.
Kuhn was arrested on June 14, 2015, on a criminal complaint charging him with assaulting a federal officer on the Navajo Indian Reservation in San Juan County, N.M. Kuhn was arrested after attacking a tribal police officer of the Navajo Nation Division of Public Safety with a metal bar in Littlewater on June 14, 2015. Kuhn attacked the officer, who is commissioned as a special federal officer by the BIA, while the officer was attempting to arrest Kuhn on unrelated charges. Kuhn was subsequently indicted on July 14, 2015.
On Feb. 26, 2016, Kuhn pled guilty to the indictment and admitted that on June 14, 2015, he assaulted a federal officer with a metal bar while the officer was performing his official duties.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Kyle T. Nayback prosecuted this case.
Monroe County Oil Company Owner Sentenced for Illegally Dumping 50 Gallons of Brine Water per WeekRead the Press Release
COLUMBUS, Ohio – Donald E. Hercher, 67, of Sycamore Valley, Ohio was sentenced in U.S. District Court to a $70,000 fine, four days in prison and two years of probation for violating the Clean Water Act.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Jeffrey Martinez, Acting Special Agent in Charge of U.S. Environmental Protection Agency (EPA), Craig W. Butler, Director of the Ohio Environmental Protection Agency (Ohio EPA) and Ohio Attorney General Mike DeWine, announced the sentence handed down today by U.S. District Judge Michael H. Watson.
According to court documents, the defendant owned Hercher Oil Company in Monroe County, which operates approximately 30 oil and gas wells. He was discharging approximately 50 gallons of oily brine water per week from oil and gas wells into a roadside ditch near Rias Run, which eventually flows into the Ohio River.
Hercher pleaded guilty on January 12 to unpermitted discharge under the Clean Water Act. He was also sentenced to pay $5,000 to the National Fish and Wildlife Foundation, and complete 104 hours of community service in Monroe County.
Hercher will be required to submit a statement to Southeast Ohio Oil and Gas Producers and Ohio Oil and Gas Association, cautioning others in the oil and gas industry to avoid taking similar actions. Likewise, he has been ordered to prepare an article to be published in at least three trade journals in which he educates the readers on the “Mississippian Exemption” and how it has no application to the Waterways of the United States.
Hercher must register all of his wells and ensure they are within compliance with state laws within 90 days.
Acting U.S. Attorney Glassman commended the cooperative investigation by the U.S. and Ohio EPA and BCI, as well as Assistant United States Attorney J. Michael Marous, who is representing the United States in this case.