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Friday 15 April 2016
Banker Shaun Hayes and Real Estate Developer Michael Litz Indicted on Bank Fraud ChargesRead the Press Release
St. Louis, MO – Shaun Hayes and Michael Litz were indicted on bank fraud charges relating to Excel Bank, which was closed by regulators in 2012.
The indictment was returned Wednesday by a federal grand jury in St. Louis. Hayes, from Frontenac, was arrested late Thursday. Litz, from Ladue, is expected to turn himself in early next week.
Hayes had ownership in and other associations with a number of banks in the St. Louis area. Litz was an owner of major real estate businesses in the area, Eighteen Investments and Bellington Realty. According to the indictment, Eighteen Investments was facing serious financial difficulties in 2009. At that time Hayes was the majority shareholder of the holding company through which Excel Bank operated. Through his efforts, Excel Bank opened up a loan production office in Clayton which Hayes controlled. (Excel Bank had its main office in Sedalia, Missouri, and principally served the western Missouri area.) Hayes and Litz were also co-owners of McKnight Man I LLC, through which they were attempting to develop property at the intersection of Manchester and McKnight Roads in St. Louis County.
Both Eighteen Investments and the McKnight Man entity were delinquent on loans at Centrue Bank, which, in June 2009, sued Eighteen Investments and Litz. Centrue Bank also threatened to sue Hayes and Litz as guarantors on a delinquent McKnight Man loan. These loans totaled over $4 million. The indictment charges a scheme in which Hayes used his status as an insider at Excel Bank to cause Excel Bank to buy the pool of delinquent Eighteen Investments loans at a discount, but hid that purchase from the bank’s board of directors. According to the indictment, Hayes and Litz then caused Excel Bank to issue a loan of approximately $3.3 million to a straw party only identified as LS. According to the indictment, some $2.4 million of the loan proceeds were used to pay Centrue Bank for the pool of Eighteen Investments loans purchased by Excel Bank, and $906,000 of the loan proceeds were used to pay off the McKnight Man loan at Centrue Bank, thereby relieving Hayes and Litz of that liability. According to the indictment, the purpose of the loan to LS was to benefit Eighteen Investments, Hayes and Litz, but the loan was set up in the name of a straw party to conceal that from bank officials, as well as federal and state bank regulators.
The indictment charges that federal bank regulators later adversely classified the loans to LS and other straw parties as substandard. The indictment refers to these as "friends of Shaun" loans, which were pushed through the bank due to Hayes’ influence and without adequate underwriting safeguards for the bank. These loans were, in effect, additional loans to Eighteen Investments which was already delinquent on loan payments and real estate taxes on many properties securing the loans. According to the indictment, these loans far exceeded the lending limit allowable by regulators for loans by Excel Bank to Eighteen Investments and the use of straw parties was designed to conceal that fact.
According to the indictment the use of $906,000 of the LS loan proceeds to pay the McKnight Man loan at Centrue Bank constituted a misapplication of Excel Bank funds and unlawful self-dealing by Hayes, an insider who exercised substantial control over the loan transactions at Excel Bank’s loan production office in Clayton. The Excel Bank records relating to the payment on behalf of McKnight Man made no reference to McKnight Man or any liability of McKnight Man to Excel Bank. As a result, there was no loan to McKnight Man shown on the Excel Bank books and, accordingly, Hayes and Litz made no payments to Excel Bank for McKnight Man.
"The abuse of public funds by trusted banking officials is a serious crime which the FBI will diligently investigate with our law enforcement partners to bring justice for American taxpayers," said Steve D’Antuono, Acting Special Agent in Charge of the FBI St. Louis Division.
“Insider deals regarding pools of mortgage loans place risk on the housing/mortgage industry and the economy. This indictment is proof that matters involving insider deals and fraud concerning mortgage loans are being dealt with seriously,” stated Barry McLaughlin, Special Agent in Charge, Office of Inspector General, Federal Housing Finance Agency Mid-Western Region.
“Excel Bank lost millions of dollars from Hayes’ alleged crimes, did not repay the taxpayers’ $4 million TARP investment in the bank and did not make 11 dividend payments to Treasury, which lost nearly $5 million when the bank failed," said Special Inspector General Christy Goldsmith Romero of the Troubled Asset Relief Program (SIGTARP). "SIGTARP stands united with our law enforcement partners to bring justice to bank officials and their associates who commit bank fraud."
Hayes and Litz were indicted on one count of bank fraud and one count of misapplication of Excel Bank funds. Hayes was also indicted on the charge of causing false entries to be made in the Excel Bank records relating to the LS loan. Each count carries a maximum penalty of up to 30 years in prison and fines up to $1 million. In determining an actual sentence a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by Special Agents from the Federal Bureau of Investigation, the Federal Finance Agency Office of Inspector General, the Federal Deposit Insurance Corporation Office of Inspector General and the Office of the Special Inspector General for the Troubled Asset Relief Program. Assistant United States Attorneys James E. Crowe, Jr., Reginald L. Harris and Gilbert C. Sison are handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Baldwin Man Admits to Taking Sexually Explicit Photos of His Friends’ ChildrenRead the Press Release
Baltimore, Maryland – Raymond Mykale Goodridge, age 21, of Baldwin, Maryland, pleaded guilty late yesterday to producing child pornography in connection with images and videos he made of a four year old boy and a 13 year old boy engaged in sexually explicit conduct.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Harford County Sheriff Jeffrey R. Gahler; Chief James W. Johnson of the Baltimore County Police Department; Harford County State’s Attorney Joseph I. Cassilly; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, Goodridge was friends with the mother of a toddler. Goodridge spent time alone with the boy, spending the night at the boy’s home in Dundalk, Maryland. The boy also spent the night at Goodridge’s home. In May 2014, when Goodridge was alone with the boy at the boy’s house, Goodridge used his cell phone to produce four photos which depict the boy, who was then four years old, partially naked. The photos focused on the boy’s genitals.
Goodridge was also friends with the mother of a 13 year old boy, who lived in Harford County. Goodridge and the 13 year old boy spent time together alone. In May 2014, Goodridge used a camera phone to surreptitiously take a video of the boy, intending to capture images of the boy engaging in sexually explicit conduct. The video captured the boy changing clothes and in various states of undress, included fully naked, and his genitals.
In February 2015, law enforcement seized digital devices belonging to Goodridge from his former residence, including a laptop and hard drive, which contained more than 600 images and videos of minors engaged in sexually explicit conduct. Numerous files portrayed prepubescent children engaged in sex acts with adults. The hard drive also contained the images and videos Goodridge produced of the two boys.
As part of his plea agreement, Goodridge must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Goodridge and the government have agreed that if the Court accepts the plea agreement, Goodridge will be sentenced to 210 months in prison followed by 25 years of supervised release. U.S. District Judge Marvin J. Garbis has scheduled sentencing for June 23, 2016 at 9:00 a.m. Goodridge is in federal custody.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Harford County Sheriff’s Office, Baltimore County Police Department, and the Harford County and Baltimore County State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow, who is prosecuting the case.
Attorney General Loretta E. Lynch Announces Renata B. Hesse to Serve as Head of Antitrust DivisionRead the Press Release
Attorney General Loretta E. Lynch announced today that Principal Deputy Assistant Attorney General Renata B. Hesse of the Antitrust Division will assume leadership of the Division.
Hesse succeeds Bill Baer, who became the Acting Associate Attorney General.
“Renata Hesse is an outstanding leader, a determined advocate, and a faithful servant of the law,” said Attorney General Lynch. “Through her long record of public service, Renata has developed a wide-ranging and comprehensive expertise in antitrust and intellectual property law that makes her exceptionally qualified for her new position. She has played a key role in some of the most challenging antitrust cases brought by the department in the last 15 years. And she has distinguished herself at every turn through her tireless work ethic, her keen intelligence, and her steadfast commitment to doing justice. I am confident that, under her guidance, the Antitrust Division will continue to excel in its work to ensure free and fair markets and to protect American consumers.”
Before her selection to run the Antitrust Division, Hesse served as the Deputy Assistant Attorney General for Criminal and Civil Operations in the division for almost four years. During this time, she also served as the division’s Acting Assistant Attorney General immediately prior to Baer’s confirmation. Hesse was a career trial attorney in the division between 1997 and 2006, in the last four years of which she served as the Chief of the Networks and Technology Section.
Hesse has also served as a senior counsel to the Chairman of the Federal Communications Commission, where she was responsible for overseeing the FCC’s review of AT&T’s proposed acquisition of T-Mobile, and was a partner at Wilson Sonsini Goodrich & Rosati.
Hesse received her J.D. from the University of California, Berkeley School of Law and her B.A. from Wellesley College.
“I am deeply honored to have been chosen to lead the hardworking men and women of the Antitrust Division,” Hesse said. “For over three years, Bill provided the division with exceptional leadership and sharp judgment and it has been a privilege to work with him. During Bill’s tenure, the division achieved outstanding results in both its criminal and civil enforcement programs. We intend to continue to vigorously enforce the nation’s antitrust laws on behalf of American consumers.”
Alien Charged with Illegal Possession of Firearm and False Identity DocumentsRead the Press Release
SYRACUSE, NEW YORK – Chanel Garcia-Enrique, 36, of Utica, New York, was indicted on four federal criminal violations: (1) felon in possession of a firearm and ammunition; (2) alien in possession of a firearm and ammunition; (3) making false statements; and (4) possession of false identification documents, announced United States Attorney Richard S. Hartunian. The charges involving firearms and ammunition filed against Garcia-Enrique carry a maximum sentence of 10 years in prison and a term of supervised release of up to 3 years following release from incarceration The defendant faces up to fifteen years for the charge of possessing false identification documents and five years for making false statements. Fines of up to $250,000 could be levied on each charge. 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. The charges in the indictment are merely accusations and the defendant is presumed innocent until proven guilty.
A federal criminal complaint alleged that Garcia-Enrique was arrested on April 5, 2016 in Utica, New York after the execution of a search warrant at his residence by members of the Drug Enforcement Administration’s Syracuse Task Force and the Oneida County Drug Task Force. According to the complaint, Garcia-Enrique was found in his bedroom with a loaded 20 gauge shotgun.
The criminal complaint alleged that Garcia-Enrique is a citizen of the Dominican Republic who illegally entered the United States in 1996 and lived under an alias since that time. The complaint further alleges that using the alias, Garcia-Enrique was arrested on October 23, 1998 in Oneida County, New York and thereafter convicted and sentenced for criminal sale of a controlled substance in the 5th degree – all while under the alias.
Garcia-Enrique was arrested on the federal criminal complaint and made his initial appearance on April 6, 2016 in Syracuse, New York, before United States Magistrate Judge Andrew T. Baxter. After holding a detention hearing on April 8, 2016, Judge Baxter ordered the defendant held without bail.
This case is being investigated by the DEA, Oneida and Onondaga County District Attorney’s Offices, the Oneida County Drug Task Force, the U.S. Department of Homeland Security/U.S. Border Patrol, the New York State Police, Oneida and Onondaga County Sheriff’s Offices, the Rome Police Department, and the Utica Police Department. This case is being prosecuted by
Assistant U.S. Attorney Carl G. Eurenius and Oneida County Assistant District Attorney Grant Garramone.
Alaska Attorney Sentenced to Prison for Failing to File Tax ReturnsRead the Press Release
A criminal defense attorney, who operated a law practice in Anchorage, Alaska, was sentenced to 14 months in prison today following his guilty plea in June 2014 to three counts of willful failure to file income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Paul D. Stockler admitted that he failed to file federal income tax returns with the Internal Revenue Service (IRS) for the years 2006, 2008 and 2009 despite earning gross income in excess of the filing threshold. The court found that Stockler’s conduct caused a tax loss to the government of $886,058.
“This case is a reminder that no one is above the law,” said Acting Assistant Attorney General Ciraolo. “Indeed, as an attorney who has defended individuals charged with financial crimes, Mr. Stockler was particularly aware of his obligations under the tax laws and the consequences of violating them. Taxpayers who willfully disregard their legal responsibilities will be held to account.”
According to a sentencing memorandum filed by the government, Stockler still has not paid the more than $800,000 in income taxes that he owed for the years 2006, 2008 and 2009. At the same time that he failed to file his tax returns and pay the taxes due, Stockler made personal expenditures for gambling, cars, and property. The government’s filing also reveals that Stockler failed to file timely income tax returns for the years 2000 through 2004, 2007, 2010 and 2011, failed to file employment tax returns during the years 2004 through 2008 and failed to pay employment taxes to the IRS. According to documents filed with the court, Stockler also submitted a false Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, to the IRS in 2009. A Form 433-A is used by the IRS to obtain financial information from a taxpayer to determine his ability to pay an outstanding tax liability. On the Form 433-A, which he signed under the penalties of perjury, Stockler failed to disclose certain retirement assets.
In addition to the prison term, Stockler was ordered to serve one year of supervised release and pay restitution to the IRS in the amount of $886,058.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorney Kevin F. Sweeney of the Tax Division and Assistant U.S. Attorney Katherine Wong of the Eastern District of Virginia, formerly of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
11 Seguin-Based Texas Mexican Mafia Members and Associates Indicted on Federal Drug Trafficking ChargesRead the Press Release
Today, federal, state and local authorities arrested eight individuals and are looking for three others in connection with a heroin/cocaine trafficking operation in the Seguin and New Braunfels, TX areas announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, Texas Department of Public Safety Director Steven McCraw, Seguin Police Chief Kevin Kelso and New Braunfels Police Chief Tom Wibert.
Those arrested include:
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Joey Mertz Gonzales (aka “Wheel Chair”), age 47, of Seguin;
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Jeffrey Ozell Sarabia (aka “Guero”), age 43, of Seguin;
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Eddie Flores (aka “Lil E”), age 29, of Seguin;
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Carlos Rios, age 45, of Live Oak, TX;
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David Phillip Urdiales (aka “Termite”), age 37, of New Braunfels;
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Cruz Carlos Acosta, age 36, of New Braunfels;
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Noel Arce, age 44, of Mario, TX; and,
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Mario Albert Leal, Jr. (aka “Lil Man”), age 34, of Seguin.
Authorities are still searching for: Adrian Francisco Barbosa (aka “Lil A”), age 29, of New Braunfels; John Gary Ortiz (aka “Big John”), age 30, of Seguin; and, Christopher James Davila (aka “Luck”), age 32, of Seguin.
A federal grand jury indictment, unsealed this afternoon in San Antonio, charges the defendants with conspiracy to possess with intent to distribute a controlled substance. Rios is also charged with three counts; Acosta and Arce, two counts; and, the remaining defendants with one count of possession with intent to distribute a controlled substance. The indictment alleges that the defendants are responsible for distributing heroin, cocaine and methamphetamine in the Seguin and New Braunfels areas since 2010.
During this investigation, authorities seized approximately three pounds of heroin, approximately 13 pounds of powder cocaine, one pound of “crystal” methamphetamine; one pound of marijuana; approximately $60,000 in U.S. Currency; and six firearms.
The defendants face up to 20 years in federal prison upon conviction. Those defendants arrested today remain in federal custody awaiting detention hearings in federal court next week.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
This case resulted from an investigation conducted by the FBI together with the Seguin Police Department, New Braunfels Police Department and the Texas Department of Public Safety. If you have information as to the whereabouts of Barbosa, Ortiz and Davila, please contact the FBI at (210) 225-6741.
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Thursday 14 April 2016
“Pimp” and “John” Receive Lengthy Federal Prison SentencesRead the Press Release
DALLAS — Luis Rivera, 19, of Irving, Texas, was sentenced this afternoon by U.S. District Judge Jane J. Boyle to 188 months in federal prison, following his guilty plea in October 2015 to one count of conspiracy to commit sex trafficking of children, announced U.S. Attorney John Parker of the Northern District of Texas.
Last month, Rivera’s co-defendant, Brady Rodriguez-Cruz, a/k/a Marcos Antonio Rodriguez-Mejia, 33, also of Irving, was sentenced by Judge Boyle to 293 months in federal prison. He was convicted at trial in November 2015 on one count of conspiracy to commit sex trafficking of children, and he pleaded guilty before trial to one count of possession of counterfeit documents.
In the conspiracy, Rodriguez-Cruz acted as the “john,” and Rivera acted as the “pimp.” From approximately December 23, 2014, through December 25, 2014, Rodriguez-Cruz and Rivera agreed to cause Jane Doe, a 12-year-old child, to engage in a commercial sex act.
Rivera met Jane Doe, along with three other minor females, in Irving. Shortly after he met the minor females, Rivera learned that Jane Doe was 12-years-old. Rivera and his friends, including one minor friend, took the four minor females to an empty apartment in Irving, where they stayed overnight. The minor females had no money, so they were not able to eat that day.
The next day, the group left the abandoned apartment and went to Rivera’s minor friend’s apartment, and Rivera told the four minor females that they needed to engage in commercial sex acts to earn money for food. Rivera then made several phone calls seeking potential commercial sex customers for the minor females. He planned to charge $100 for sexual intercourse with one of the minors. Rivera reached Rodriguez-Cruz and Rodriguez-Cruz agreed to come to the location to engage in a commercial sex act. Rodriguez-Cruz brought another man with him to the apartment. Rivera told the four minor females to line up so the men could select who they wanted to have sex with, and Rodriguez-Cruz selected the youngest girl, 12-year-old Jane Doe. Rodriguez-Cruz then negotiated the price for sex with a girl down to $50. Shortly thereafter, he engaged in commercial sex acts with Jane Doe, paid Rivera and his minor male friend approximately $50, and hastily left. A portion of that money was then used to buy some fast food for the minor girls.
Additionally, on August 28, 2015, when officers with the Irving Police Department executed a traffic stop on a vehicle driven by Rodriguez-Cruz, they found him in possession of an unlawfully obtained, counterfeit U.S. Permanent residence card. That card was issued in another name but bore Rodriguez-Cruz’s photograph.
The Irving Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), both members of the North Texas Trafficking Taskforce, investigated the case. Assistant U.S. Attorneys Cara Foos Pierce and John Kull prosecuted.
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Wilkes-Barre Man Sentenced to 5 Years in Prison for Possession of A Firearm in Furtherance of Heroin TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Wilkes-Barre man was sentenced yesterday by United States District Judge Malachy E. Mannion, in Scranton, to serve 5 years in prison for possession of a firearm in furtherance of heroin trafficking.
According to United States Attorney Peter Smith, Disean Kendricks, age 26, previously pleaded guilty to the charge of possession of a firearm in furtherance of a drug trafficking crime. Kendricks was indicted by a grand jury in June 2015.
The charges stem from an incident in which investigators served a search warrant at a residence located on Sullivan Street in Wilkes-Barre and seized 45 individual retail bags of heroin and two firearms from a bedroom in which Kendricks was sleeping.
The investigation was conducted by the Wilkes-Barre Police Department and the Bureau of Alcohol, Tobacco and Firearms (ATF).
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
This case was 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.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal state and local law enforcement agencies.
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Valdosta Dentist Indicted for Healthcare FraudRead the Press Release
On Wednesday, April 13, 2016, Dr. Stanley Marable, DDS aged 55, from Valdosta, Georgia was indicted on 12 counts of Healthcare Fraud in the Middle District of Georgia, announced Acting United States Attorney G.F. Peterman, III. The federal charges stem from dental claims submitted to Georgia’s Medicaid program with Dr. Marable receiving an alleged overpayment totaling nearly $800,000 as the result of his conduct.
This case is being prosecuted by Assistant United States Attorney Sonja B. Profit along with Assistant Attorney General Jim Mooney. The case was investigated by the Georgia Medicaid Fraud Control Unit. Members of Georgia’s Department of Community Health – Office of the Inspector General and the Georgia Department of Audits and Accounts also made substantial contributions to the investigation.
A copy of the indictment is attached. The indictment is only an allegation of criminal conduct. Dr. Marable is presumed innocent until and unless proven guilty in a court of law. If convicted, Dr. Marable faces a potential maximum penalty of 10 years’ imprisonment, a $250,000 fine, or both, on each count.
U.S. Nuclear Engineer, China General Nuclear Power Company and Energy Technology International Indicted in Nuclear Power Conspiracy against the United StatesRead the Press Release
A two-count indictment was unsealed today in the Eastern District of Tennessee charging Szuhsiung Ho, aka Allen Ho, a citizen of the United States; China General Nuclear Power Company (CGNPC), formerly known as the China Guangdong Nuclear Power Company and Energy Technology International (ETI) for conspiracy to unlawfully engage and participate in the production and development of special nuclear material outside the United States, without the required authorization from the U.S. Department of Energy. This authorization is required by U.S. law and is robustly observed through frequent legal U.S.-China civil nuclear cooperation. Ho was also charged with conspiracy to act in the United States as an agent of a foreign government.
The announcement was made by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Nancy Stallard Harr of the Eastern District of Tennessee and Executive Assistant Director Michael Steinbach of the FBI’s National Security Branch.
“Allen Ho, at the direction of a Chinese state-owned nuclear power company allegedly approached and enlisted U.S. based nuclear experts to provide integral assistance in developing and producing special nuclear material in China,” said Assistant Attorney General Carlin. “Ho did so without registering with the Department of Justice as an agent of a foreign nation or authorization from the U.S. Department of Energy. Prosecuting those who seek to evade U.S. law by attaining sensitive nuclear technology for foreign nations is a top priority for the National Security Division.”
“The prosecution of individuals who potentially endanger our U.S. citizens by violating laws enacted to ensure our national security, has been and will remain a priority for the U.S. Attorney’s Office in eastern Tennessee,” said Acting U.S. Attorney Harr.
“The arrest and indictment in this case send an important message to the U.S. nuclear community that foreign entities want the information you possess,” said Executive Assistant Director Steinbach. “The federal government has regulations in place to oversee civil nuclear cooperation, and if those authorities are circumvented, this can result in significant damage to our national security. The U.S. will use all of its law enforcement tools to stop those who try to steal U.S. nuclear technology and expertise.”
According to the indictment, Ho is a nuclear engineer employed by CGNPC as a senior advisor and is also the owner and president of ETI. Born in China, he is a naturalized U.S. citizen with dual residency in Delaware and China. CGNPC, which is owned by China’s State-Owned Assets Supervision and Administration Commission of the State Council, is the largest nuclear power company in China and specializes in the development and manufacture of nuclear reactors. ETI is a Delaware corporation headquartered in Ho’s home in Wilmington, Delaware.
According to allegations in the indictment, which was returned on April 5, 2016, beginning in 1997 and continuing through April 2016, Ho, CGNPC and ETI allegedly conspired with others to engage and participate in the development and production of special nuclear material in China, with the intent to secure an advantage to China and without specific authorization to do so from the U.S. Secretary of Energy, as required by law. In particular, the defendants allegedly sought technical assistance related to, among other things, CGNPC's Small Modular Reactor Program; CGNPC's Advanced Fuel Assembly Program; CGNPC's Fixed In-Core Detector System; and verification and validation of nuclear reactor-related computer codes.
The indictment further alleges that Ho, under the direction of CGNPC, identified, recruited and executed contracts with U.S.-based experts from the civil nuclear industry who provided technical assistance related to the development and production of special nuclear material for CGNPC in China. Ho and CGNPC also allegedly facilitated the travel to China and payments to the U.S.-based experts in exchange for their services.
The indictment further alleges that during this same period of time, Ho conspired with others to knowingly act as an agent of China without prior notification to the Attorney General, as required by law. On or about Oct. 4, 2009, Ho allegedly told experts who he was attempting to recruit that, “China has the budget to spend,” and that he needed assistance so that, “China will be able to design their Nuclear Instrumentation System independently and manufactur[e] them independently after the project is complete.” In further correspondence with nuclear experts in the United States, Ho made clear that he was charged with obtaining necessary expertise from the United States at the direction of the CGNPC and the China Nuclear Power Technology Research Institute, a subsidiary of CGNPC, and that he was to do so surreptitiously.
If convicted, the charge of conspiracy to unlawfully engage and participate in the production and development of special nuclear material outside the United States carries a maximum sentence of life in prison and a $250,000 fine. The charge of conspiring to act in the United States as an agent of a foreign government carries a maximum sentence of 10 years in prison along with fines and supervised release.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI, the Tennessee Valley Authority-Office of the Inspector General, the Department of Energy-National Nuclear Security Administration and the U.S. Immigration and Customs Enforcement Homeland Security Investigations, with assistance from other agencies. The case is being prosecuted by Assistant U.S. Attorney Charles E. Atchley Jr. of the Eastern District of Tennessee and Trial Attorney Casey T. Arrowood of the National Security Division’s Counterintelligence and Export Control Section.
Ho Indictment
U.S. Nuclear Engineer, China General Nuclear Power Company and Energy Technology International Indicted in Nuclear Power Conspiracy Against the United StatesRead the Press Release
WASHINGTON – A two-count indictment was unsealed today in the Eastern District of Tennessee charging Szuhsiung Ho, aka Allen Ho, a citizen of the United States; China General Nuclear Power Company (CGNPC), formerly known as the China Guangdong Nuclear Power Company and Energy Technology International (ETI) for conspiracy to unlawfully engage and participate in the production and development of special nuclear material outside the United States, without the required authorization from the U.S. Department of Energy. This authorization is required by U.S. law and is robustly observed through frequent legal U.S.- China civil nuclear cooperation. Ho was also charged with conspiracy to act in the United States as an agent of a foreign government.
The announcement was made by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Nancy Stallard Harr of the Eastern District of Tennessee and Executive Assistant Director Michael Steinbach of the FBI’s National Security Branch.
Acting U.S. Attorney Harr affirmed the importance of this case by stating, “The prosecution of individuals who potentially endanger our U.S. citizens by violating laws enacted to ensure our national security, has been and will remain a priority for the U.S. Attorney’s Office in eastern Tennessee.”
“Allen Ho, at the direction of a Chinese state-owned nuclear power company allegedly approached and enlisted U.S. based nuclear experts to provide integral assistance in developing and producing special nuclear material in China,” said Assistant Attorney General Carlin. “Ho did so without registering with the Department of Justice as an agent of a foreign nation or authorization from the U.S. Department of Energy. Prosecuting those who seek to evade U.S. law by attaining sensitive nuclear technology for foreign nations is a top priority for the National Security Division.”
“The arrest and indictment in this case send an important message to the U.S. nuclear community that foreign entities want the information you possess,” said Executive Assistant Director Steinbach. “The federal government has regulations in place to oversee civil nuclear cooperation, and if those authorities are circumvented, this can result in significant damage to our national security. The U.S. will use all of its law enforcement tools to stop those who try to steal U.S. nuclear technology and expertise.”
According to the indictment, Ho is a nuclear engineer employed by CGNPC as a senior advisor and is also the owner and president of ETI. Born in China, he is a naturalized U.S. citizen with dual residency in Delaware and China. CGNPC, which is owned by China’s State-Owned Assets Supervision and Administration Commission of the State Council, is the largest nuclear power company in China and specializes in the development and manufacture of nuclear reactors. ETI is a Delaware corporation headquartered in Ho’s home in Wilmington, Delaware.
According to allegations in the indictment, which was returned on April 5, 2016, beginning in 1997 and continuing through April 2016, Ho, CGNPC and ETI allegedly conspired with others to engage and participate in the development and production of special nuclear material in China, with the intent to secure an advantage to China and without specific authorization to do so from the U.S. Secretary of Energy, as required by law. In particular, the defendants allegedly sought technical assistance related to, among other things, CGNPC's Small Modular Reactor Program; CGNPC's Advanced Fuel Assembly Program; CGNPC's Fixed In-Core Detector System; and verification and validation of nuclear reactor-related computer codes.
The indictment further alleges that Ho, under the direction of CGNPC, identified, recruited and executed contracts with U.S.-based experts from the civil nuclear industry who provided technical assistance related to the development and production of special nuclear material for CGNPC in China. Ho and CGNPC also allegedly facilitated the travel to China and payments to the U.S.-based experts in exchange for their services.
The indictment further alleges that during this same period of time, Ho conspired with others to knowingly act as an agent of China without prior notification to the Attorney General, as required by law. On or about Oct. 4, 2009, Ho allegedly told experts who he was attempting to recruit that, “China has the budget to spend,” and that he needed assistance so that, “China will be able to design their Nuclear Instrumentation System independently and manufactur[e] them independently after the project is complete.” In further correspondence with nuclear experts in the United States, Ho made clear that he was charged with obtaining necessary expertise from the United States at the direction of the CGNPC and the China Nuclear Power Technology Research Institute, a subsidiary of CGNPC, and that he was to do so surreptitiously.
If convicted, the charge of conspiracy to unlawfully engage and participate in the production and development of special nuclear material outside the United States carries a maximum sentence of life in prison and a $250,000 fine. The charge of conspiring to act in the United States as an agent of a foreign government carries a maximum sentence of 10 years in prison along with fines and supervised release.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI, the Tennessee Valley Authority-Office of the Inspector General, the Department of Energy-National Nuclear Security Administration and the U.S. Immigration and Customs Enforcement Homeland Security Investigations, with assistance from other agencies. The case is being prosecuted by Assistant U.S. Attorney Charles E. Atchley Jr. of the Eastern District of Tennessee and Trial Attorney Casey T. Arrowood of the National Security Division’s Counterintelligence and Export Control Section.
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U.S. John Huber joining in Nationwide Department of Justice Effort to Confront Discriminatory BacklashRead the Press Release
WASHINGTON – Utah U.S. Attorney John Huber is joining other U.S. Attorneys around the country, local law enforcement, and community leaders for a series of events around the country to address backlash against Muslim, Arab, Sikh and South Asian Americans following the tragic terrorist attacks in Brussels, Paris and San Bernardino, California. The 14 events in 11 districts will build on both the Justice Department’s prosecutorial work in countering post-September 11th backlash, as well as its outreach efforts, including the new interagency initiative to combat religious discrimination throughout the country.
From April 12 through May 6, U.S. Attorneys in Utah, California, Colorado, Connecticut, Idaho, Louisiana, Massachusetts, Michigan, Minnesota, New Jersey, and Ohio will work with community leaders and law enforcement to address discrimination, violence and harassment targeting people because of what they look like, which country they come from or where they worship. The aim is to reaffirm the Department of Justice’s commitment to protecting civil rights and preventing and prosecuting hate crimes.
U.S. Attorney John Huber will visit the Khadeeja Islamic Center in West Valley City Friday where he will participate in Friday prayers and consultations with Center leaders. Salt Lake City Police Chief Mike Brown also made a recent visit to Utah’s largest mosque.
“I value the relationships I have with leaders of the Muslim community in Utah and particularly, my association with those at the Khadeeja Mosque. Every religious community in Utah should be free from discrimination and harassment. Open lines of communication will help us quickly identify and address any issues that may develop,” Huber said.
The Department of Justice is determined to uphold the fundamental principle that all Americans should be free from violence and protected from hatred no matter who they are, what they look like, or where they're from,” said Attorney General Loretta E. Lynch. “These events underscore our ongoing commitment to safeguard the civil rights of every American – including Muslim, Arab, Sikh and South Asian Americans, who are so often the targets of threats on the basis of their appearance or religion. There is no place for intolerance in our country. In the weeks and months ahead, the Department of Justice will continue to work with local law enforcement partners and community leaders to defend the safety and the dignity of all our people.”
During the last several months, individuals who are, or who are perceived to be, Muslim, Arab, Sikh and South Asian have been targeted for harassment and violence around the country.
A Connecticut man pleaded guilty to firing a high-powered rifle at a mosque; a Florida man pleaded guilty to threatening to firebomb two mosques and shoot their congregants; a former Missouri man pleaded guilty to violating the civil rights of others by leading a conspiracy to deface a local Islamic center with graffiti and burn two copies of the Qur’an; and a New York man was sentenced to 13 months in prison for emailing death threats to the executive director of an Islamic advocacy group.
Places of worship also face discrimination through unlawful barriers to construction in many communities around the country. In the last year, the Justice Department filed suit against Des Plaines, Illinois, over the city’s denial of rezoning to allow a Muslim congregation to use a vacant office building as a mosque. The complaint alleged that the city treated the mosque less favorably than it has treated nonreligious assemblies, discriminated against the mosque based on religion and imposed a substantial burden on the mosque members’ religious exercise without justification. The Justice Department also closed its investigation into Norwalk, Connecticut, after the city made changes to treat religious assemblies equally with nonreligious assemblies in five of its zoning districts. The department had opened an investigation of Norwalk’s zoning practices in 2012 in response to the city’s denial of a special use permit to the Al Madany Islamic Center to build a mosque on land it had bought in a residential zoning district.
Backlash against Muslim, Arab, Sikh and South Asian Americans can have a particularly harmful impact on education, employment and housing. In March, the Civil Rights Division announced that the Educational Opportunities Section launched a new enforcement initiative with the U.S. Attorneys’ Offices to strengthen our efforts to combat religious discrimination in schools and other educational settings. The new initiative, together with Justice Department’s recent work in Bakersfield, California; Lewisville, Texas; Pine Bush, New York; Dearborn Heights, Michigan; DeKalb County, Georgia; and many more cities and counties through the nation, will help ensure that schools remain free from discrimination, harassment and violence for all students.
This effort is a reflection of the Department of Justice’s long-standing commitment to working to protect Muslim, Sikh, Arab and South Asian Americans from threats and violence directed at them because of their religion or ethnicity, and to prevent acts of discrimination against them in the workplace, schools or elsewhere. Since September 11th, the Department of Justice has investigated over 1,000 incidents involving acts of violence, threats, assaults, vandalisms and arsons targeting Arab, Muslim, Sikh and South Asians, and those perceived to be members of these groups. The Civil Rights Division and U.S Attorneys’ offices have brought prosecutions against more than 60 defendants in such cases, with 57 convictions to date.
U.S. Attorney's Office Concludes Investigation into Fatal Shooting of Robbery Suspect in Southeast WashingtonRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia announced today that it has completed its review of the Metropolitan Police Department officers who were involved in the fatal shooting of Gregory Gray on Dec. 24, 2014, in a courtyard in Southeast Washington. After a careful review of all of the evidence, the U.S. Attorney’s Office has concluded that there is insufficient evidence to pursue federal criminal civil rights or District of Columbia charges against the officers involved in the fatal shooting of Mr. Gray.
The U.S. Attorney’s Office for the District of Columbia and MPD conducted a comprehensive review of the incident, which included interviews of over a dozen law enforcement and civilian witnesses and assessing photographs, DNA, diagrams, physical evidence, recorded radio communications, the autopsy report, and other evidence.
According to the evidence, the chain of events began at about 3 p.m. on Dec. 24, 2014, when MPD received reports that two men had been robbed at the corner of 30th Street and Alabama Avenue SE. The witnesses who reported the robbery provided a detailed description of the robber.
MPD officers quickly responded to the area and spotted Mr. Gray, 33, who was walking in the 2700 block of Naylor Road SE, approximately three blocks from where the robbery occurred. Mr. Gray, who matched the description of the robbery suspect, began running when police asked him to stop. Four MPD officers got out of their vehicles and pursued Mr. Gray on foot. Mr. Gray ran between two apartment buildings and into a courtyard area behind residences in the 2800 block of Naylor Road SE. He did not heed numerous commands to stop and wound up being positioned between the officers and an iron fence that ran the length of the courtyard. At this point, the evidence shows, Mr. Gray pulled a handgun and pointed it in the direction of the officers. Seeing the weapon, all four officers fired their weapons, fatally wounding Mr. Gray.
A black firearm was recovered near Mr. Gray. An MPD technician who assisted with collecting evidence from the scene of the shooting was able to retrieve DNA from the firearm. A subsequent analysis of the DNA revealed, to a reasonable degree of scientific certainty, that Mr. Gray was a major contributor to the DNA mixture recovered from the firearm.
After a careful, thorough, and independent review of the evidence, federal prosecutors have found insufficient evidence to prove beyond a reasonable doubt that the officers used excessive force under the circumstances.
Use-of-force investigations generally
The U.S. Attorney’s Office reviews all police-involved fatalities to determine whether sufficient evidence exists to conclude that any officers violated either federal criminal civil rights laws or District of Columbia law. To prove such violations, prosecutors must typically be able to prove that the involved officers willfully used more force than was reasonably necessary. Proving “willfulness” is a heavy burden. Prosecutors must not only prove that the force used was excessive, but must also prove, beyond a reasonable doubt, that the officer acted with the deliberate and specific intent to do something the law forbids. A conclusion that “there is insufficient evidence” is not meant to suggest anything further about what evidence, if any, exists.
The U.S. Attorney’s Office remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are fully and completely investigated. The Metropolitan Police Department’s Internal Affairs Division investigates all police-involved fatalities in the District of Columbia.
U.S. Attorney Holds Roundtable with Community and Law Enforcement Leaders to Address Prevention of Backlash Against Muslim, Arab, Sikh and South Asian Americans Following Terrorist AttacksRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney Ben Wagner held a roundtable discussion today with Muslim and Sikh community leaders and senior law enforcement officials to discuss community concerns over potential bias incidents and hate crimes, the need for reporting by victims of those incidents, and the need to build solid relationships between the community and law enforcement. The group also discussed how law enforcement can assist in building resilient communities that can resist radicalization to violence. After the discussion, local media was invited to talk with participants.
Today’s meeting was one of 14 events in 11 federal judicial districts across the United States designed to build on both the Justice Department’s prosecutorial work in countering post-September 11th backlash, as well as its outreach efforts, including the new interagency initiative to combat religious discrimination throughout the country.
U.S. Attorney Wagner stated: “The Muslim community is a strong ally in combatting radicalization and terrorism. We want the Muslim community to know that we stand with them against Islamophobia and hate. Those who seek to target or harass them should be on notice that such conduct will be investigated by law enforcement.”
Since Sept 11, 2001, the Department of Justice has investigated over 1,000 incidents involving acts of violence, threats, assaults, vandalisms and arsons targeting Arab, Muslim, Sikh and South Asians, and those perceived to be members of these groups. The Civil Rights Division and U.S. Attorneys’ offices throughout the country have brought prosecutions against more than 60 defendants in such cases, with 57 convictions to date.
The Civil Rights Division is leading an interagency initiative to combat religious discrimination, which includes combatting illegal restrictions on religious properties like mosques.
U.S. Attorney and IRS Announce Message to Potential Tax Cheats That Tax Crimes Result in Criminal Prosecution and Lengthy Prison Sentences and Fines and Issue A Fraud Notice to TaxpayersRead the Press Release
HARRISBURG - With the deadline for filing income tax returns rapidly approaching, the U.S. Attorney’s Office for the Middle District of Pennsylvania, and the Philadelphia Field Office, IRS Criminal Investigation, jointly announced a warning to those who are thinking about breaking the law by committing tax crimes including a listing of recent tax fraud prosecutions and sentences.
“During this time of the year, IRS will receive millions of tax returns from honest taxpayers who file their returns on time and pay taxes they owe,” said U.S. Attorney Peter Smith. “Today’s warning is not for them; it is for tax cheats who break tax laws and abuse our tax system. If you belong in this category, pay close attention. My office will hold accountable anyone who participates in a tax fraud scheme that puts an added tax burden on honest taxpayers and drains our public finances.”
“Tax fraud exists in many forms, from unscrupulous tax preparers filing false and fraudulent returns, to identity thieves, and to those that go complex lengths to hide their income and evade paying the taxes they owe” said Special Agent in Charge Akeia Conner. “IRS-Criminal Investigation pursues tax cheats year-round. As the filing deadline quickly approaches, those who are contemplating engaging in tax fraud should know that they will be pursued.”
FILING FALSE TAX RETURNS AND EVASION
Over the last year, the U.S. Attorney’s Office has prosecuted and convicted individuals for filing false federal tax returns. Defendants have received substantial sentences for tax charges, ranging from several years in prison to home confinement. For example, the following individuals were sentenced for their roles in submitting false returns to the IRS:
Mitchell Orewiler, of Adams County was sentenced to 15 months in prison in July 2015. Orewiler pleaded guilty to filing false claims with the Internal Revenue Service in relation to his 2006, 2007 and 2008 Federal income tax returns. Orewiler was also ordered to pay $324,000 in restitution.
Felicia Burks, of Williamsport, PA was sentenced to 27 months in prison for filing 52 false income tax returns with the Internal Revenue Service in an attempt to obtain in excess of $150,000 in refunds. Burks was also ordered to pay $88,812 in restitution.
Paul Biko, of Harrisburg, pleaded guilty on January 14, 2016 to federal tax fraud in relation to his three Harrisburg businesses: Clearview of Harrisburg, Clearview Landscaping and Clearview Builders. As owner, Biko controlled the financial affairs of the three companies including all business bank accounts. For the fourth quarter of 2008, Biko’s companies withheld employment taxes from employees but failed to pay to the IRS the federal income taxes and Federal Insurance Contributions Act (FICA) taxes due to the United States. The government’s estimate of the loss is approximately $674,969.
Theodore Martin and his wife, Arminda Martin, of Ravenna, Ohio (formerly resided in York County), pleaded guilty on January 27, 2016 to tax evasion charges regarding their three cemetery businesses, including Suburban Memorial Gardens in Dover, Pennsylvania, and Grandview Memorial Park and Fairview Memorial Park in Ohio. The Martins failed to report to the IRS all the income they received from the operations of the cemeteries located in Ohio.
Felix Ramon Diaz, of Harrisburg, pleaded guilty on March 29, 2016 to forty-five counts of aiding and assisting the preparation of false tax documents. Diaz was a tax preparer who owned Felix Tax Service. From 2010 through 2013, Diaz filed forty five tax returns with false and fraudulent income, deductions, and addresses in an effort to maximize income tax refunds. Diaz’s conduct resulted in approximately $100,000 in taxes due and owed the Internal Revenue Service.
Sherry Garner, of Red Lion, pleaded guilty on February 19, 2016 to embezzlement from a credit union and with evading federal income taxes. Garner, the former Chief Executive Officer-Manager of the HD York Federal Credit Union in York, Pennsylvania embezzled $252,106 from the credit union between 2010 and 2013 and failed to report $70,983 in stolen income on her federal income tax return for 2011, thereby evading $19,069 in federal income taxes.
STOLEN IDENTITY REFUND FRAUD
In addition to prosecuting tax evaders and fraudulent tax return preparers, the IRS and the U.S. Attorney’s Office are conducting a continuing major effort to investigate and prosecute individuals who steal the identities of taxpayers and file fraudulent tax return. Rafael Sanchez, of Hazleton, the owner and operator of a check cashing, tax preparation and money transfer business in Hazleton was sentenced to 94 months in September 2015. Sanchez used the identities of unknowing third parties to file fraudulent federal income tax returns. He pleaded guilty to conspiracy to submit false claims and aggravated identity theft. Other similar fraud schemes are currently pending in court, or under investigation.
Federal penalties for each count of conviction of tax crimes range from a maximum of one year in prison and a $100,000 fine for failure to file a tax return, false withholding exemptions, and delivering or disclosing false tax documents, to a maximum of 10 years in prison and a $250,000 fine for conspiracy to defraud with respect to false refund claims. Other penalties include a mandatory term of two years in prison and a $250,000 fine for aggravated identity theft charges, three years in prison and a $250,000 fine for obstructing or impeding an investigation and filing or preparing a false tax return, and a maximum of five years in prison and a $250,000 fine for tax evasion, failure to pay taxes, conspiracy to commit a tax offense or conspiracy to defraud.
TAX SCAM WARNING
The U.S. Attorney’s Office and the IRS remind tax payers to exercise caution during tax season to protect themselves against tax schemes ranging from identity theft to return preparer fraud. Illegal scams can lead to significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice to shutdown scams and to prosecute the criminals behind them.
The IRS has issued its annual “Dirty Dozen” which lists common tax scams that taxpayers may encounter, particularly during filing season. Taxpayers are urged look out for, and to avoid, the following common schemes:
• Identity Theft
• Phone Scams
• Phishing
• Return Preparer Fraud
• Offshore Tax Avoidance
• Inflated Refund Claims
• Fake Charities
• Falsely Padding Deductions on Returns
• Excessive Claims for Business Credits
• Falsifying Income To Claim Credits
• Abusive Tax Shelters
• Frivolous Tax Arguments
Education is the best way to avoid these common schemes. To learn more about the Dirty Dozen scams and for help with recognizing and avoiding abusive tax schemes, the IRS offers educational material at www.irs.gov. Suspected tax fraud can be reported to the IRS using Form 3949-A found on the IRS.gov website.
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Two Men Sentenced for Montgomery Bank RobberyRead the Press Release
Montgomery, Alabama - Edward Hundley, 50, of Birmingham, and Richard Freeman, 39, of Montgomery, were sentenced Wednesday, April 13, 2016 for bank robbery, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. Hundley was sentenced to 84 months in federal prison. Freeman was sentenced to 48 months.
On July 21, 2015, Hundley and Freeman entered the U.S. AmeriBank on Atlanta Highway just after 9:00 A.M. They approached the tellers and handed them notes demanding money. The teller turned over $7,000 to Hundley and Freeman and they fled the scene. Following the investigation, both were later located and arrested in Atlanta. Both pled guilty to the robbery charge in federal court in Montgomery.
The case was investigated by the Federal Bureau of Investigation and the Montgomery Police Department. This case was prosecuted by Assistant United States Attorney Brandon Bates.
Turner Falls Man Sentenced for Importing “Molly” and “Flakka” from ChinaRead the Press Release
BOSTON –A Turner Falls man was sentenced on Tuesday, April 12, 2016, in U.S. District Court in connection with importing and distributing kilograms of methylone, also known as “molly,” and alpha-PVP, also known as “flakka,” into the United States from China.
Stanislav Nestorov, 25, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 78 months in prison and three years of supervised release. In December 2015, Nestorov pleaded guilty to conspiracy to import several kilograms of methylone and alpha-PVP.
In 2013 Nestorov began ordering substantial quantities of methylone and alpha-PvP over the Internet from suppliers in China. Nestorov arranged for the packages to be shipped to different addresses, and paid other individuals to wire payments for the drugs to China, all to avoid detection. When the drug packages were shipped to Nestorov, the Chinese supplier included bogus documents that falsely described the contents of the packages as containing other items such as car parts.
Federal agents discovered the scheme when a package was seized in New York which contained one kilogram of methylone. In September 2013, a package destined for Massachusetts was intercepted and found to contain one kilogram of alpha-PVP.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Susan Winkler of Ortiz’s Narcotics and Money Laundering Unit.
Tom Beall to Serve as Acting U.S. Attorney for the District of KansasRead the Press Release
TOPEKA, KAN. – Tom Beall will serve as Acting U.S. Attorney for the District of Kansas.
Beall takes over after U.S. Attorney Barry Grissom steps down on April 15 to re-enter private practice. As Acting U.S. Attorney, Beall will be in charge of the U.S. Attorney’s Office for the District of Kansas, which comprises approximately 50 Assistant U.S. Attorneys and 50 support staff members working in offices in Topeka, Kansas City, Kan., and Wichita. Beall will work mainly out of the office in Topeka.
“It makes it easier for me to go knowing the U.S. Attorney’s Office is in Tom’s capable hands,” Grissom said. “It has been a pleasure working with him.”
Since November 2013, Beall served as First Assistant U.S. Attorney, making him the second in command of the U.S. Attorney’s Office. He joined the office as an Assistant U.S. Attorney in April 2011.
Beall is a native of Leavenworth, Kan. He served as Chief Deputy in the office of Kansas Attorney General Steve Six from March 2008 to January 2011. He was an adjunct instructor at Washburn University School of Law from August 2013 to January 2015. He was in private practice from 2000 to 2008.
Beall graduated in 2000 from the Washburn University School of Law after earning a master’s degree in public administration from Kansas State University and a bachelor’s degree from Baker University.
Three Minnesota Tax Return Preparers Sentenced to Prison for Conspiracy to Defraud the Government and Filing False Tax ReturnsRead the Press Release
Defendants Prepared Thousands of False Tax Returns for Filing with IRS and State of Minnesota
Three tax return preparers based in Minneapolis, Minnesota, were sentenced to prison yesterday for their involvement with a fraudulent return-preparation business with multiple storefronts in the Minneapolis area, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Ishmael Kosh, 39, of Philadelphia, Pennsylvania, and Amadou Sangaray, 36, of New York, New York, were convicted following a two-week jury trial in September 2015. Kosh was convicted of one count of conspiracy to defraud the United States and eight counts of aiding and assisting in the filing of false tax returns. Sangaray was convicted of one count of conspiracy to defraud the United States, four counts of aggravated identity theft and eight counts of aiding and assisting in the filing of false tax returns. Francis Saygbay, 43, of Minneapolis, failed to appear for trial, but later pleaded guilty to one count of conspiracy to defraud the United States, one count of aggravated identity theft, and two counts of aiding and assisting in the preparation of false tax returns.
Yesterday, Chief U.S. District Judge John R. Tunheim sentenced Kosh to 52 months in prison, Sangaray to 50 months in prison and Saygbay to 40 months in prison. In addition to the prison terms, Judge Tunheim also ordered each Kosh and Saygbay to serve three years of supervised release and Sangaray two years of supervised release, following their release from prison.
“As the 2016 tax filing season draws to a close, taxpayers are reminded to be wary of return preparers who make promises that seem too good to be true,” said Acting Assistant Attorney General Ciraolo. “Dishonest return preparers like Messrs. Kosh, Sangaray and Saygbay cost the U.S. Treasury billions of dollars each year. Taxpayers should stay alert for the warning signs that their preparer is more interested in making a quick buck than filing an accurate tax return.”
According to the evidence presented at the trial, Kosh, Sangaray, Saygbay and a fourth individual, Chatonda Khofi, 50, of St. Paul, Minnesota, established a storefront location of Primetime Tax Services Inc. (Primetime), a tax return preparation business in the Minneapolis area. Along with a fifth individual, David Mwangi, 47, of Arlington, Texas, the defendants prepared over 2,000 fraudulent individual income tax returns on behalf of customers of Primetime for filing with the Internal Revenue Service (IRS) for the years 2006, 2007 and 2008. The defendants also prepared approximately 1,700 fraudulent state income tax returns for filing with the state of Minnesota for those years. At yesterday’s sentencing hearing, Judge Tunheim found that the defendants’ conduct caused a total tax loss of between $1.5 and $3.5 million.
On the fraudulent returns, the defendants included false dependents, fake business income and losses, inflated deductions and credits and false filing status in order to obtain inflated tax returns for their customers. The defendants also bought and sold dependents for use on their customers’ tax returns in order to falsely qualify their customers for inflated deductions and tax credits. The defendants caused the fraudulently obtained refunds to be sent directly to Primetime in order to maintain control over the funds. When a customer came to pick up their refund checks or debit card, the defendants sometimes demanded an additional fee in cash, and/or escorted that customer to a check cashing location or ATM.
“Tax-return preparers who try to scam the government for tax refunds are not only stealing from the government, they are stealing from all the honest citizens who pay their fair share of taxes,” stated Special Agent in Charge Shea Jones of IRS-Criminal Investigation St. Paul Field Office. “The special agents of IRS-Criminal Investigation are committed to protecting the integrity of our system of taxation by investigating tax and accounting professionals who conspire with others to violate the tax laws. It is our hope that yesterday’s sentencings of Ishmael Kosh, Amadou Sangaray and Francis Saygbay, send the strong message that tampering with the integrity of our nation’s tax system will result in jail time.”
In November 2014, Mwangi pleaded guilty to one count of conspiracy to defraud the United States and Khofi pleaded guilty to one count of conspiracy to defraud the United States and one count of aggravated identity theft. They are currently awaiting sentencing. A sixth individual associated with this scheme, Stephanie Robinson, 33, of Minneapolis, pleaded guilty in August 2013 to one count of filing a false tax return in her own name and one count of aiding and assisting in the filing of a false tax return for another individual.
Acting Assistant Attorney General Ciraolo thanked special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Thomas W. Flynn and Ryan R. Raybould, and former Trial Attorney Dennis R. Kihm of the Tax Division, who prosecuted the case. Acting Assistant Attorney General Ciraolo also thanked the Minnesota Department of Revenue for their significant work on this matter.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Third Circuit Court Affirms Inmate’s Four-Year Prison Sentence for Mailing Threatening Letter to A Monroe County JudgeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that the Third Circuit Court of Appeals upheld a 48-month prison sentence yesterday for a former state prison inmate who mailed a letter threatening to kill a Monroe County Common Pleas judge.
According to United States Attorney Peter Smith, the Court’s decision affirmed the sentence imposed on Devon Williams, age 26, by Senior U.S. District Court Judge James M. Munley on March 24, 2015.
Williams pleaded guilty on December 17, 2014, to mailing a threatening communication. In his plea, Williams admitted that while he was an inmate at the State Correctional Institution in Albion, Pennsylvania, he mailed a letter from the prison in January 2014 to the judge’s chambers at the Monroe County Courthouse in Stroudsburg. The letter threatened harm and death to the judge.
Williams was indicted by a federal grand jury in September 2014, as a result of an investigation by the United States Postal Inspection Service and the Pennsylvania State Police.
In its opinion, the Court explained that Judge Munley’s sentence, which varied upward from the sentencing guidelines, was both procedurally and substantively reasonable, and that the defendant’s history of violence and the threatening and graphic nature of the letter justified a sentence above the suggested guidelines range.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case and handled the appeal.
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Texas Man Sentenced to 20 Years in Federal Prison for Drug TraffickingRead the Press Release
Fort Smith, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Miguel Angel Carbajal, age 27, of Dallas, Texas, was sentenced today to 240 months in federal prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine. The Honorable P. K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, on August 7, 2015, the Drug Enforcement Administration (DEA) received information that Carbajal was bringing approximately 2 kilograms of methamphetamine into Fort Smith. Agents with the DEA were able to arrange for a controlled purchase of four pounds of methamphetamine from Carbajal. Carbajal had a juvenile male go out to his vehicle and retrieve the meth, and after the transaction was made, he got in his car and left at a high rate of speed nearly hitting several law enforcement vehicles. Officers were able to stop him after he drove his car into a ditch, and they apprehended him when he jumped out of the car and attempted to flee on foot. The suspected substance was sent for testing and the results were positive to be 1,431 grams of actual methamphetamine. Carbajal was arrested on August 10, 2015 and pleaded guilty to the charge on December 10, 2015.
“Federal and local law enforcement has successfully collaborated in order to put this drug dealer in jail for 20 years as a result of his desire to supply the citizens in the Fort Smith area with methamphetamine, said DEA Assistant Special Agent in Charge Matthew Barden. “It is disturbing when drug suppliers exert control over the lives of young people, enlisting them in the culture of drug trafficking and violence. DEA will remain relentless in our efforts to cripple these dealers and remove them from our neighborhoods, keeping our communities safe.”
This case was investigated by the Drug Enforcement Administration and the Fort Smith Police Department. Assistant United States Attorney Aaron Jennen prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Syracuse Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
SYRACUSE, NEW YORK – Carl Switala, 34, was indicted yesterday for failing to register as a sex offender after he moved to Syracuse, New York from North Carolina, announced United States Attorney Richard S. Hartunian.
The indictment alleges that Switala moved to Syracuse from Raleigh, North Carolina in November 2015 and lived in the area without registering as a sex offender for more than four months prior to being arrested. The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Switala was previously arrested on April 4, 2016 pursuant to a Criminal Complaint. On April 7, 2016, Switala appeared before United States Magistrate Judge Andrew T. Baxter for a detention hearing after which he was ordered held without bail pending trial.
The charge against Switala carries a maximum sentence of 10 years imprisonment, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. 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.
This case is being investigated by the United States Marshals Service Sex Offender Investigation Branch and is being prosecuted by Assistant U.S. Attorney Robert S. Levine.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
State Inmate Charged with Mailing Threatening LettersRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a grand jury in Williamsport returned an indictment against an inmate serving a sentence at the State Correctional Institution, Smithfield, Huntingdon County, PA.
According to the United States Attorney Peter Smith, Gerald Mack, age 50, of Carlisle, Pennsylvania is charged with making repeated threats to injure a state correctional employee, and another woman during 2014.
The federal investigation was conducted by the United States Postal Inspection Service and Geoffrey MacArthur has been assigned to the prosecution of this matter.
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 five years of imprisonment, a term of supervised release following imprisonment, and a 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.
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St. Paul Woman Indicted for Filing Fraudulent Income Tax Returns for Friends and FamilyRead the Press Release
United States Attorney Andrew M. Luger today announced a federal indictment charging EBONY SHANTE YARBROUGH, 27, for filing fraudulent income tax returns for friends and family and stealing the identities of minors to obtain tax refunds.[1] YARBROUGH is charged with nine counts of making false, fictitious and fraudulent claims and three counts of aggravated identity theft. The defendant appeared today before Magistrate Judge Franklin Noel in U.S. District Court in Minneapolis, Minn.
“IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority,” said Shea Jones, Special Agent in Charge of the IRS - Criminal Investigation Division, St. Paul Field Office. “As our tax filing season winds down next week, today’s court action should serve as a warning to taxpayers, to be wary of any scheme to defraud the IRS and steal from American taxpayers. The IRS will continue to pursue those who unjustly enrich themselves by preparing false claims for refunds.”
According to the indictment and documents filed in court, between 2013 and 2015, YARBROUGH convinced friends and family members to allow her to file their state and federal income tax returns by claiming she knew how to prepare the returns and would charge less than a tax preparation service. YARBROUGH would then obtain from the taxpayers W-2s and 1099s, as well as personal identifying information such as social security numbers, addresses and dependent information.
According to the indictment and documents filed in court, as part of her scheme, YARBROUGH would prepare taxpayers’ returns by claiming false Schedule C income characterized as “hair stylist,” “cleaner” or “exotic dancer.” Additionally, YARBROUGH would include dependents on taxpayers’ returns by using stolen personal identifying information belonging to minors, enabling them to qualify for other tax credits. YARBROUGH’S scheme accounted for more than $500,000 in false state and federal claims.
As Tax Day approaches, the U.S. Attorney’s Office reminds all Minnesotans that the deadline for filing federal income tax returns is Monday, April 18. Federal law enforcement is committed to pursuing those who commit tax fraud or attempt to defraud the tax system.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS. The Minnesota Department of Revenue assisted in the investigation.
Assistant U.S. Attorney Kimberly A. Svendsen is prosecuting the case.
Defendant Information:
EBONY SHANTE YARBROUGH, 27
St. Paul, Minn.
Charges:
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Making False, Fictitious and Fraudulent Claims, 9 counts
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Aggravated Identity Theft, 3 counts
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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St. Croix Man Sentenced for Manufacturing MarijuanaRead the Press Release
St. Croix, USVI –Senior District Court Judge Raymond Finch sentenced today Michael Velez, 36, to three years of probation, six months of electronic monitoring, and a $500 fine on one count of manufacture of marijuana, United States Attorney Ronald W. Sharpe announced.
According to the plea agreement filed with the court, Velez admitted that on January 29, 2015, he was the sole resident of property located at 4-0 Catherine’s Rest, St. Croix, where U.S. Drug Enforcement administration (DEA) and Virgin Islands Police Department (VIPD) officers found 204 marijuana plants while executing a search warrant for the premises. According to court records, they also discovered cultivation equipment, including lights, watering mechanisms, and cloning solution.
This case was investigated by the DEA and the VIPD and was prosecuted by Assistant U.S. Attorney Christian Stringer.
St. Croix Man Pleads Guilty to Using a Telephone to Facilitate a Drug TransactionRead the Press Release
St. Croix, USVI – Carl Hansen, 55, pleaded guilty today in federal court before the Honorable George W. Cannon to one count of using a communications facility in causing or facilitating the commission of felonies under the Controlled Substances Act, United States Attorney Ronald W. Sharpe announced.
According to the plea agreement filed with the court, on May 7, 2015, Carl Hansen facilitated a drug deal over the telephone between a prospective buyer and seller of illegal controlled substances.
The defendant faces a maximum of four years in prison and a $250,000 fine. A sentencing date has been set for August 17, 2016. The defendant remains out of custody pending sentencing.
The charge is the result of investigative work of the U.S. Drug Enforcement Administration and the Virgin Islands Police Department. The case is being prosecuted by Assistant U.S. Attorney Christian Stringer.
Somerset County Woman Admits Possessing MethRead the Press Release
JOHNSTOWN, Pa. – A Somerset County resident pleaded guilty in federal court in Johnstown to a charge of possession with the intent to distribute a quantity of methamphetamine, United States Attorney David J. Hickton announced today.
Samantha E. McKenzie, 21, of Friedens, Pa., pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on Jan. 14, 2013, McKenzie, along with another person, possessed with the intent to distribute a quantity of methamphetamine.
Judge Gibson scheduled sentencing for Aug. 10, 2016, at 11 a.m. The law provides for a maximum of 20 years in prison, a fine of $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.The Pennsylvania State Police Troop A Barracks, the Somerset Borough Police Department and the Laurel Highlands Resident Agency of the Federal Bureau of Investigation conducted the investigation that led to the prosecution of McKenzie.
Somerset County Man Sentenced to Five Years of Probation for Income Tax EvasionRead the Press Release
JOHNSTOWN, Pa. - A resident of Hooversville, Pa., has been sentenced in federal court to five years’ probation and restitution ordered to be paid to the Internal Revenue Service in the amount of $98,127.60, on his conviction of income tax evasion, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Robert A. Varnish, Jr.
According to information presented to the court, during the calendar year 2011, Varnish received taxable income in the sum of $135,011.75, with an income tax due and owing of $28,760.00. Likewise, in calendar year 2012, Varnish received taxable income in the sum of $108,453.61, with an income tax due and owing of $21,104. During both of these calendar years, Varnish evaded paying the income tax due and owing to the Internal Revenue Service by concealing his true and correct income. Mr. Varnish also had taxes due and owing, with interest, to the Internal Revenue Service from calendar years 2009 and 2010.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Internal Revenue Service Criminal Investigation for the investigation leading to the successful prosecution of Varnish.
Shawnee Man to Serve Five Years Probation and Pay over $181,000 in Restitution for Receiving Kickbacks in Scheme to Embezzle from Citizen Potawatomi NationRead the Press Release
Oklahoma City, Oklahoma – Yesterday, THOMAS BIERD, 35 from Shawnee, Oklahoma, was sentenced by United States District Judge Vicki Miles-LaGrange to serve probation for five years and pay $181,763 in restitution to the Citizen Potawatomi Nation for embezzlement from the tribe, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma.
Bierd was indicted on April 21, 2015, for his role in the embezzlement scheme that involved a related case against KRISTI BIAS, 42, also of Shawnee. According to court records and information at court hearings, Bias was employed as the Executive Director of the Citizen Potawatomi Nation’s Community Development Corporation (CDC), which promoted economic development in the Native American community by providing loans and grants to companies owned by or which primarily employed members of federally-recognized Indian tribes. From December of 2010 and September of 2011, Bias was alleged to have caused grants to be issued to false or ineligible entities, falsified supporting documents, and received kickbacks for doing so. Bierd controlled an entity that received checks issued from CDC by Bias who, in turn, kicked back a portion of the proceeds to Bias.
On October 8, 2015, Bias was sentenced to serve 24 months in federal prison for embezzlement from the Citizen Potawatomi Nation, and pay $251,018.35 in restitution to the tribe. Following her 24-month prison term, Bias is ordered to served 3 years of supervised release and pay $251,018.35 in restitution to the tribe.
On September 3, 2015, Bierd pled guilty to embezzlement from the tribe. Yesterday, he was ordered to serve probation for five years and pay $181,763 in restitution to the tribe for his role in the embezzlement.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Tim Ogilvie.
Reference is made to court filings for further information.
Sentencings for April 7 - April 12, 2016Read the Press Release
Denise Renee Nelson-Marchetti, 46, of Lander, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 12, 2016, for conspiracy to distribute methamphetamine. Nelson-Marchetti was arrested in Lander, Wyoming. She received two years of probation and was ordered to pay a $100.00 special assessment and restitution in the amount of $400.00. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation, the U.S. Drug Enforcement Administration and the Internal Revenue Service. 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.
Jose Mejia-Becerril, aka Jose Mejia, aka Jose Mejia Becerrill, aka Jose Meja, 30, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on April 12, 2016, for illegal re-entry of a previously deported alien into the United States and for being a felon and illegal alien in possession of a firearm. Mejia-Becerril was arrested in Jackson, Wyoming. He received 30 months imprisonment, to be followed by three years of supervised release, was ordered to pay a $200.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Mark Edward Aylward, 46, of Littleton, Colorado, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 11, 2016, for conspiracy to distribute methamphetamine. Aylward was arrested in Cheyenne, Wyoming. He received 60 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. 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.
Clark Champion Crow, 36, of Lincoln City, Oregon, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 11, 2016, for possession with intent to distribute 500 grams or less of methamphetamine and aiding and abetting. Crow was arrested in Rawlins, Wyoming. He received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $500.00. This case was investigated by the Wyoming Division of Criminal Investigation.
Jose Sosa-Rodriguez, aka Mauricio Garcia-Ramos, 30, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on April 11, 2016, for illegal re-entry of a previously deported alien into the United States. Sosa-Rodriguez was arrested in Jackson, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the United States Department of Homeland Security, Immigration and Customs Enforcement.
Daniel Nathan Bruce, 33, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 8, 2016, for being a felon and unlawful user of a controlled substance in possession of a firearm. Bruce was arrested in Casper, Wyoming. He received 21 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
John William Spoonhunter, 32, of Arapahoe, Wyoming, was sentenced by Judge Scott W. Skavdahl on April 7, 2016, for child abuse. Spoonhunter was arrested in Fort Washakie, Wyoming. He received 60 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $1,020.00. This case was investigated by the Federal Bureau of Investigation.
Sacramento Man Pleads Guilty to Manufacturing Guns, Dealing in Firearms, and Possession of a MachinegunRead the Press Release
SACRAMENTO, Calif. — Daniel Albert Crowninshield, 53, of Sacramento, pleaded guilty today to unlawfully manufacturing and dealing in firearms and possession of an unregistered machinegun, United States Attorney Benjamin B. Wagner announced.
In his plea agreement, Crowninshield, who was also known by his online moniker “Dr-Death,” admitted that he operated an unlicensed firearms manufacturing business out of C&G Tool, a metal shop in North Sacramento. Using sophisticated computer controlled machines, Crowninshield manufactured lower receivers for AR-15s and other firearms. Crowninshield did not conduct background checks, enforce waiting periods, or complete firearm transaction paperwork.
Crowninshield advertised such services on at least one online firearm enthusiast forum. This website mainly consists of forums where people ask and answer questions related to firearms. Crowninshield, using the moniker “Dr-Death” was a prolific poster on the website. Additionally, other members frequently posted about Dr-Death, including review of service provided and recommending that other users visit his shop.
“The manufacturing and unlicensed sale for profit of high-capacity firearms is a serious threat to public safety,” said U.S. Attorney Wagner. “We will continue to vigorously investigate unlicensed gun dealers and prosecute violations of the federal firearms laws.”
“Daniel Crownshield, AKA: Dr. Death owned and operated a machine shop where he allowed customers with unknown backgrounds to use his machinery to unlawfully manufacture firearms for profit,” said Special Agent in Charge Jill A. Snyder. “ATF regulates the firearm industry, and it is illegal to manufacture and sell firearms without possessing a federal firearms license, and without conducting background checks. ATF’s goal is to keep firearms out of the hands of prohibited individuals and prevent violent crime.”
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the California Department of Justice’s Bureau of Firearms, with the assistance of the Sacramento Police Department, the Sacramento County Sheriff’s Department, and the California Highway Patrol. Assistant United States Attorneys Justin Lee and Matthew Yelovich are prosecuting the case.
Crowninshield is scheduled to be sentenced by Judge Troy L. Nunley on June 30, 2016. Crowninshield faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Richmond Man Pleads Guilty to Robbery of Cell Phone StoresRead the Press Release
RICHMOND, Va. – Julius Ripley, 60, of Richmond, pleaded guilty yesterday for his in role the robberies of a Sprint Wireless store located in Colonial Heights and the robbery of a Verizon Wireless store located in Mechanicsville. Ripley was also ordered to pay $49,002 in restitution to the victims of the offense.
In a statement of facts filed with the plea agreement, Ripley admitted that on February 1, 2015, he robbed the Adcomm store (Sprint) located in Colonial Heights. He entered the business with a small, semi-automatic handgun and demanded the employees give him cell phones and cash. He then had the employees remove their clothing and ordered them at gunpoint into the bathroom. Ripley obtained $39, 912 worth of phones and tablets from the robbery, and $140.00 in cash. Ripley also admitted that on March 2, 2015, he robbed the Wireless Zone store (Verizon) located in Mechanicsville. Ripley entered the business with a small semi-automatic handgun and demanded the employees give him cell phones. He then had the employees remove their clothing and ordered them at gunpoint into the back room of the store. Ripley obtained approximately $8,950.00 worth of phones and tablets from the robbery.
Ripley was indicted by a federal grand jury on June 2, 2015, and faces a maximum penalty of twenty years in prison when sentenced on July 28, 2016. 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; and Douglas A. Middleton, Chief of Police for the Henrico County Police Division, made the announcement after the plea was accepted by U.S. District Judge John A. Gibney.
This case was investigated by officers and detectives with the Henrico County Police Division in conjunction with the FBI’s Central Virginia Violent Crime Task Force. Assistant U.S. Attorney S. David Schiller is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:15-cr-107.
Rapides Parish man pleads guilty to sending obscene images to a minorRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that an Alexandria man pleaded guilty Tuesday to attempting to send obscene material to a minor.
William Ware, 38, of Alexandria, La., pleaded guilty before U.S. District Judge Dee D. Drell to one count of attempting to transfer obscene material to a minor. According to the guilty plea, on December 9, 2014, Ware contacted a 13-year-old minor female using social media over the internet. He then sent the minor two sexually explicit videos using an internet chat service. The minor was in fact an undercover agent, and Ware was later arrested.
Ware faces up to 10 years in prison, three years of supervised release and a $250,000 fine. A sentencing date of July 20, 2016 was set.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Jamilla A. Bynog is prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. 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.
The U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) also encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
Ramapo Town Supervisor and Former Executive Director of Ramapo Local Development Corporation Charged with Securities Fraud in Connection with Ramapo Municipal BondsRead 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”), Andrew J. Ceresney, Director of the Securities and Exchange Commission’s Division of Enforcement (“SEC”), and Thomas Zugibe, the Rockland County District Attorney, announced the unsealing of an indictment charging CHRISTOPHER ST. LAWRENCE, the elected Supervisor of the Town of Ramapo, New York (the “Town”), and N. AARON TROODLER, the former Executive Director of the Ramapo Local Development Corporation (“RLDC”), with 22 counts of securities fraud, wire fraud, and conspiracy in connection with municipal bonds issued by the Town and by the RLDC.
U.S. Attorney Preet Bharara said: “Today, this Office has brought what is believed to be the first ever municipal bond-related criminal securities fraud charges against public officials. As alleged, Christopher St. Lawrence and N. Aaron Troodler kicked truth and transparency to the curb, selling over $150 million of municipal bonds on fabricated financials. In doing so, they defrauded both the citizens of Ramapo and thousands of municipal bond investors around the country. The $3.7 trillion municipal bond market is no place for fraud and manipulation; there should be no tolerance for it. Whether you are a publicly listed company or a municipality, you are not allowed to cook the books, plain and simple. And whether you are state legislator responsible for enacting laws or a municipal executive responsible for a town’s finances, you must be accountable. You must be accountable to the public, and you must be accountable to the truth. Thanks to the outstanding efforts of our partners at the FBI, Rockland County District Attorney’s Office and the SEC, we will now seek to hold St. Lawrence and Troodler accountable for their alleged fraud.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “St. Lawrence and Troodler allegedly engaged in a complex securities fraud scheme so they could hide public funds being used for the construction of a stadium and other projects. The illegal activity allegedly continued even after they became aware the town and the corporation tasked with development initiatives were subjects of a federal investigation. Public corruption wastes billions in tax dollars every year. Investigating these types of crimes remains among the FBI's top priorities.”
Director Andrew J. Ceresney said: “Retail investors account for more than 75 percent of the $3.7 trillion municipal bond market, which is critical for our nation’s infrastructure and development. We won’t stand for public officials and employees who resort to alleged accounting trickery to mislead investors who are investing in their financial futures as well as the future betterment of our communities.”
Rockland County District Attorney Thomas Zugibe said: “As the Town of Ramapo Supervisor, Christopher St. Lawrence took an oath to honestly and faithfully serve his residents. But instead, St. Lawrence is accused of shamelessly exploiting his position for a personal agenda. Public officials, whether elected or appointed, are more than mere employees. They are servants of the public interest, and we must insist on absolute honesty, integrity and trustworthiness from every one. The charges announced today are the direct result of the good work of our Public Corruption Task Force, a true collaboration between my office, the U.S. Attorney and the FBI.”
According to the allegations contained in the Indictment[1]:
As of August 2015, the Town had more than $128 million in outstanding bonds that had been issued for various municipal purposes, while the RLDC, a corporation created and owned by the Town under state law, had issued $25 million in bonds to pay for the construction of Provident Bank Park, a minor league baseball stadium in Ramapo.
While the fraud predated the construction of the stadium, the Town’s financial problems were caused largely by the $58 million total cost of the stadium. The Town paid more than half of that cost, despite the rejection of the Town’s guarantee of bonds to pay for construction of the stadium in a Town-wide referendum in 2010 and ST. LAWRENCE’s public statements that no public money would be used to pay for the stadium.
The Indictment charges that ST. LAWRENCE and TROODLER lied to investors in the Town’s and RLDC’s bonds in order to conceal the deteriorating state of the Town’s finances and the inability of the RLDC to make scheduled payments of principal and interest to its bondholders from its own money. The defendants lied to investors primarily by making up false assets in the Town’s General Fund.
The General Fund is the Town’s primary operating fund. The accumulated difference over time between how much money the Town receives in taxes and fees and how much it spends in a year is the General Fund’s balance. The General Fund balance is a cushion that can be spent during difficult financial times. The primary indicators of a town’s financial health are 1) the size of its general fund balance relative to the amount of the fund’s revenue and 2) trends in the size of a town’s general fund balance over time.
When the RLDC issued $25 million in bonds to build the stadium building itself in April 2011, ST. LAWRENCE and TROODLER inflated the size of the Town’s 2010 General Fund balance by including a false $3.6 million receivable in the General Fund. The Town’s financial condition was important to investors in the RLDC’s bonds because the Town guaranteed the payments of principal and interest on the bonds. Without that fake asset, the General Fund’s balance would have been negative for 2010.
In addition, ST. LAWRENCE inflated the General Fund with another fake receivable for $3.08 million from 2010 through 2015. This receivable first went on the Town’s books when the RLDC agreed to buy property known as The Hamlets from the Town for $3.08 million. That sale never closed because the land was discovered to be a habitat for rattlesnakes. Rather than take the receivable off the Town’s books – and reduce the size of the General Fund balance by $3.08 million, resulting in a negative balance – ST. LAWRENCE claimed the receivable had to do with the already-completed RLDC purchase from the Town of a different property. To keep it on the books, ST. LAWRENCE then caused the Town Attorney to tell the Town’s auditors repeatedly over a period of years that the receivable would be paid back within a year, which was required if the receivable was going to stay in the General Fund. Without this fictitious receivable, the Town’s General Fund would have had a negative balance for years.
In May 2013, the FBI searched Ramapo Town Hall in connection with this investigation. Less than 10 days later, ST. LAWRENCE inflated another receivable in the General Fund – this time for money from the Federal Emergency Management Agency (“FEMA”) to reimburse the Town for expenses from Hurricanes Irene and Sandy. ST. LAWRENCE claimed that the Town was going to receive $3.145 million from FEMA when the Town had yet to submit those claims to FEMA. Without ST. LAWRENCE’s inflation of this receivable, the projected General Fund balance for 2012 would have been negative when the Town sold bonds in May 2013.
The Indictment alleges that ST. LAWRENCE also inflated the General Fund balance by making more than $12 million in transfers from the Town’s Ambulance Fund to the General Fund from 2009 to 2014. The group of properties in Ramapo that pays into the Ambulance Fund is different from the group of properties that pays into the General Fund. Under state law, transfers between funds with different tax bases can only be loans. To justify the transfers, ST. LAWRENCE told the auditors, members of the Town Board, and others that the two funds had the same tax base.
Finally, the Indictment alleges that ST. LAWRENCE and TROODLER told investors in the Town’s and RLDC’s bonds that the RLDC was making the payments on its bonds from its operating revenue, meaning money it was making from its ordinary business of running the baseball stadium and selling condominiums at a development it had built. That was important to investors because it led them to believe that the Town would not have to pay off the RLDC’s $25 million bonds. It also made the RLDC’s bonds look less risky. The RLDC actually made those payments primarily from money it borrowed from the bank or money it got from the Town.
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ST. LAWRENCE, 65, of Wesley Hills, New York, and TROODLER, 42, of Bala Cynwyd, Pennsylvania, are each charged with eight counts of securities fraud, each of which carries a maximum sentence of 20 years in prison; 13 counts of wire fraud, each of which carries a maximum sentence of 20 years in prison; and one count of conspiracy, which carries a maximum sentence of five years in prison.
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 thanked the SEC for their investigative work. He also praised the FBI and the investigators from the United States Attorney's Office for the Southern District of New York. He also thanked the Rockland County District Attorney’s Office for its assistance in the investigation. This investigation was conducted by the Office with the Public Corruption Task Force set up between the FBI and the Rockland County District Attorney’s Office.
In a related case, the Securities & Exchange Commission brought a civil action today against ST. LAWRENCE, TROODLER, and others in U.S. District Court in White Plains.
The criminal case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys James McMahon and Andrew Dember are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Philadelphia Woman Charged for Role in Bank Fraud SchemeRead the Press Release
PHILADELPHIA – Charlene Leak, 46, of Philadelphia, Pennsylvania, was charged today by indictment with conspiracy and bank fraud, announced United States Attorney Zane David Memeger. The indictment alleges that in 2009, Leak worked as a check runner in a $1.2 million check fraud conspiracy run by Phillip Eric Weems, who has since pleaded guilty for his role in leading the conspiracy, and who was sentenced in February 2014 by U.S. District Judge Juan R. Sanchez to 121 months’ incarceration.
According to the indictment, in her role assisting Weems in running bad checks, Leak, along with other co-conspirators, opened personal and corporate bank accounts at various financial institutions, incorporated sham corporations to further the conspiracy, and caused counterfeit and forged securities to be created and drawn on the accounts of the sham corporations. Leak and her co-conspirators then used the counterfeit and forged securities to pay for goods and property knowing that the various bank accounts had no or insufficient funds in the accounts. According to the indictment, Leak was responsible for an intended loss of $317,890.61.
If convicted of all charges, the defendant faces a statutory maximum sentence of 35 years in prison, up to $500,000 in fines, three years of supervised release, and a $200 special assessment.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys James A. Petkun and Ashley K. Lunkenheimer.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Perpetrators of Multiple Armed Robberies at Atlanta Wal-Mart Stores and a Citgo Food Mart Have Been ArraignedRead the Press Release
ATLANTA - Kesia Quinette Jackson, Deanthony L. Foster, and Makisha Renee Sanders have been arraigned on charges of conspiracy to commit armed robbery, armed robber, and use of a firearm during a crime of violence arising from multiple armed robberies of Wal-Mart stores, and a Citgo food mart that took place between May and October, 2015.
“Armed robberies are dangerous events that traumatize the victims and sow fears throughout the community, and these effects are magnified when the robbers victimize multiple locations over time,” said U. S. Attorney John Horn. “We hope the arrests and indictments in this case will restore the security felt by the employees and customers of these stores, as well as the surrounding neighborhoods.”
“The allegations contained in these indictments clearly illustrated the need to prioritize this investigation and to have those responsible identified and apprehended. With the federal indictments and this morning’s arrests, that was accomplished. Numerous jurisdictions were impacted by these multiple commercial armed robberies creating certain challenges for investigators. Those challenges were, however, overcome as a direct result of the hard work and determination of the many officers and agents representing numerous metro Atlanta area law enforcement agencies working together with the FBI’s Atlanta Metro Major Offender (AMMO) Task Force,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U.S. Attorney Horn, the charges, and other information presented in court: The defendants allegedly targeted Wal-Mart stores and a Citgo Food Mart in different areas of the Atlanta, Georgia metropolitan area for the purpose of robbing the employees of cash at gunpoint. Jackson and Sanders acted as scouts or lookouts prior to the robberies by entering the stores and posing as customers in order to determine when employees were removing cash from the self-checkout registers. They would then contact the defendant Foster. The three defendants used cellular telephones to maintain communication with each other prior to and during the commission of the armed robberies. Foster would then enter the stores wearing a surgical mask and using a firearm to rob the employees of cash. In the last robbery, he discharged the firearm into the floor near the employees.
Kesia Quinette Jackson, 44, Deanthony L. Foster, 27, and Makisha Renee Sanders, 42, all of Atlanta, Georgia, were arraigned before United States Magistrate Judge Janet F. King. All three were indicted by a federal grand jury on April 13, 2016.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the FBI.
AUSAs Katherine M. Hoffer and Jessica Morris are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Old Saybrook Resident Arrested on Federal Tax ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation in New England, announced that DAVID ADAMS, 55, of Old Saybrook, was arrested today on a federal criminal complaint that charges him with one count of filing a false tax return.
ADAMS appeared before U.S. Magistrate Judge Robert A. Richardson in Hartford and was released on a $500,000 bond secured by real property.
The complaint alleges that, on June 7, 2011, ADAMS sold his partnership interest in an online floral business and received $4,708,419.20 wired into his personal bank account as part of the net proceeds owed to him as a result of the sale. Although ADAMS told his accountant that he sold his partnership interest in 2011, ADAMS did not tell his accountant that he received $4,708,419.20. Accordingly, ADAMS’s 2011 tax return did not include the $4,708,419.20 in income ADAMS received as a result of the sale and instead showed ADAMS’ total income and tax liability for 2011 as substantially less than what should have been reported. The 2011 tax return also reflected that ADAMS had paid $220,000 in estimated tax payments during the year when, in fact, he paid only $100,000 in estimated tax payments for 2011.
The complaint alleges that ADAMS also made false statements on his tax returns for years 2002, 2009 and 2012. For example, on his 2012 tax return, ADAMS failed to report more than $1.3 million in cash he received into his personal bank account in that year. The complaint further alleges that ADAMS has an extensive history with IRS collections.
According to statements made in court, it is alleged that ADAMS owes approximately $4.7 million in back taxes, interest and penalties.
The charge of filing a false tax return carries a maximum term of imprisonment of three years.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Susan L. Wines.
Ohio Man Sentenced for Unlawfully Possessing Firearm at St. JudeRead the Press Release
Memphis, TN – An Ohio man who unlawfully possessed a firearm at St. Jude Children’s Research Hospital has been sentenced to federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, Aaron Cauley, 30, of Montgomery County, Ohio, threatened the mother of his child with a firearm inside of St. Jude.
In March 2015, Memphis police officers responded to an aggravated assault call at St. Jude. The defendant had allegedly threatened the life of his child’s mother while they were inside of a patient room.
Cauley and his child’s mother were engaged in a heated argument when he pointed a pistol and threatened to kill her. Afraid for her life, the victim alerted St. Jude security of the occurrence. Security subsequently notified Memphis police officers, who arrived on the scene and detained Cauley. Officers also located a knife in the defendant’s pants pocket while searching him.
Security discovered a green backpack hidden under some children’s clothing in the patient room where the alleged incident occurred. A Sig Sauer 9mm pistol and multiple rounds of ammunition were found in the backpack.
In December 2015, Cauley pleaded guilty before U.S. District Judge Samuel H. Mays Jr. to one count of felony possession of a firearm.
On Thursday, April 14, 2016, Judge Mays sentenced Cauley to 100 months in federal prison.
This case was investigated by the Memphis Police Department on behalf of the Project Safe Neighborhoods (PSN) Task Force. The PSN Task Force is a collective comprised of personnel from the Memphis Police Department; Shelby County Sheriff’s Office; and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The PSN Task Force works in a unified effort against gun crime, targeting repeat offenders who continually plague the greater Shelby County area.
Assistant U.S. Attorney Dean DeCandia prosecuted this case on the government’s behalf.
New York and Hazleton Men Charged with Cocaine ConspiracyRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Luis Santos, age 49, of New York, New York and Rafael Lora, age 41, of Hazleton, Pennsylvania, were indicted by a federal grand jury in Scranton on April 12, 2016, with possession with intent to distribute cocaine, and with conspiracy.
According to United States Attorney Peter J. Smith, Santos and Lora were arrested on March 30, 2015 as the result of an investigation by Homeland Security Investigations, with assistance from the U.S. Postal Inspection Service, Customs and Border Patrol, Pennsylvania State Police and the Hazleton Police Department. Prosecution is assigned to Assistant U.S. Attorney Phillip J. Caraballo.
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 for each offense under federal law is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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New Bedford Woman Sentenced for Stealing over $60,000 in Social Security BenefitsRead the Press Release
BOSTON – Lynn Medeiros, 49, of New Bedford, was sentenced today in U.S. District Court in Boston for stealing over $60,000 in Social Security benefits by continuing to collect her disabled son’s benefits after he left her custody.
Medeiros was sentenced by U. S. District Court Judge Nathaniel M. Gorton to four months in prison, one year of supervised release, including six months of home confinement, and ordered to pay $63,798 in restitution to the Social Security Administration.
In April 2005, Medeiros applied for Social Security Supplemental Security Income (SSI) disability benefits on behalf of her son. By signing the application, Medeiros acknowledged her responsibility to notify Social Security if her son left her custody or otherwise changed his living arrangements. Her son was approved for benefits, and his monthly Social Security checks were issued to Medeiros as his representative payee.
Beginning in August 2007, Medeiros’s son ceased to reside with her. However, each year from 2008 to 2013, Medeiros submitted forms to Social Security falsely stating that her son was still living with her and that she was spending the Social Security money on his behalf. In this manner, from August 2007 through August 2014, Medeiros converted $63,798 in benefits to her own use.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Nampa Man Sentenced for Possession of Meth for Distribution and Unlawful Possession of a FirearmRead the Press Release
BOISE – Indalecio Cuevas-Figueroa, 34, of Nampa, Idaho, was sentenced today in United States District Court to 78 months in prison for possession of methamphetamine with the intent to distribute and unlawful possession of a firearm by a person unlawfully in the United States, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Cuevas-Figueroa to serve five years of supervised release following his release from prison. Cuevas-Figeroa pleaded guilty to the charges on January 5, 2016.
According to court documents, in 2013 and 2014, Nampa Police detectives made several “controlled buys” of methamphetamine from Cuevas-Figeroa. During one of the controlled buys, Cuevas-Figeroa also sold a Browning 9mm semi-automatic pistol. Cuevas-Figeroa is prohibited from possessing a firearm because he was a Mexican national residing unlawfully in the United States. On October 15, 2014, Cuevas-Figeroa sold approximately 108.3 grams methamphetamine. Resulting lab tests showed that this was 96.8% pure. The total amount of actual methamphetamine attributable to Cuevas-Figeroa is approximately 131 grams.
The case was investigated by the City County Narcotics Unit and the Drug Enforcement Administration.
Mexico Citizen Indicted for Illegal Re–Entry into the United States After Having Been Previously DeportedRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jenaro Moctezuma-Galicia, age 30, a native of Mexico, was indicted by a federal grand jury in Scranton on April 12, 2016, for allegedly re-entering the United States after having been previously deported.
The investigation was conducted by the U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Prosecution has been assigned to Assistant United States Attorney Robert J. O’Hara
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.
In this case, the maximum penalty which can be imposed under federal law is 2 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Mexican Native Pleads Guilty and Is Sentenced for Illegal Re-EntryRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Maurilio Bautista-Feria, 48, most recently of Olean, NY, was convicted of reentry of a removed alien subsequent to a conviction for an aggravated felony and sentenced to 12 months in prison by Senior U.S. District Judge William J. Skretny.Special Assistant U.S. Attorney Brian J. Counihan, who handled the case, stated that the defendant was convicted in 2009 of harboring illegal aliens. Subsequent to that conviction, Feria was removed from the United States to Mexico for having illegally entered the United States and committing the felony. In 2013, U.S. Immigration and Customs Enforcement found the defendant working at a Mexican restaurant in Olean.
The sentencing is the result of an investigation by the Violent Criminal Alien Section of Immigration and Customs Enforcement, Enforcement and Removal Operations, under the direction of Special Agent in Charge Michael Phillips.
Melville man sentenced to 10 years in prison for possessing child pornographyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Melville man was sentenced Tuesday to 120 months in prison for storing child pornography on electronic devices.
Russell Guillory, 34, of Melville, La., was sentenced by U.S. District Judge Dee D. Drell on one count of possession of child pornography. He was also sentenced to 15 years of supervised release and must register as a sex offender. According to the October 9, 2015 guilty plea, Guillory’s home was searched in January of 2015. The investigation uncovered four electronic devices Guillory owned containing 75 videos and six images of child pornography. The Court noted that the child pornography involved extremely young children and babies and was some of the most disturbing of which he was aware.
“The exploitation of children through pornography is a horrible and reprehensible crime,” Finley stated. “We take our responsibility to protect children seriously as this prosecution and sentencing once again demonstrates.”
Homeland Security Investigations and the Louisiana State Police investigated the case. Assistant U.S. Attorneys Jamilla A. Bynog and John Luke Walker are prosecuting the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines 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.
The U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) also encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application (www.ice.gov/predator/smartphone-app). Tips may be submitted anonymously.
Mechanicsburg Resident Federally Charged with Distributing Images Depicting the Sexual Abuse of ChildrenRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Mechanicsburg man was indicted by a federal grand jury in Harrisburg on April 13, 2016 for the distribution and possession of images depicting the sexual exploitation of minors.
According to United States Attorney Peter Smith, John Alexander Driscoll, age 60, allegedly provided images depicting the sexual exploitation of children to an online law enforcement officer. After obtaining a search warrant, federal and state law enforcement officers located thousands of images and movies containing child pornography. The indictment alleges Driscoll engaged in the activity in February and March 2016.
This case was investigated by the United States Postal Inspection Service and the Pennsylvania Office of the Attorney General. The case is being prosecuted by Assistant United States Attorney Daryl Bloom.
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 40 years’ imprisonment with a mandatory term of 15 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Maryland Woman Pleads Guilty to Conspiring to Taking Part in Scheme Involving Prescription and Health Care FraudRead the Press Release
WASHINGTON – Novella White, 53, of Accokeek, Md., pled guilty today to federal charges of conspiracy to obtain controlled substances by prescription fraud and participating in a health care fraud scheme, announced U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Nicholas DiGiulio, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.
White entered the plea in the U.S. District Court for the District of Columbia. She faces a maximum sentence of four years in prison for the conspiracy count and up to 10 additional years for the health care fraud scheme. The Honorable Richard J. Leon scheduled sentencing for July 7, 2016. As part of the plea agreement, White agreed to pay $5,400, representing her share of illegal proceeds obtained from various health care plans.
A co-defendant, Claire Elizabeth Rice, 68, of Silver Spring, Md., pled guilty on Feb. 25, 2016 to the same charges. She is to be sentenced on June 3, 2016. As part of the plea agreement, Rice agreed to pay $16,175, representing her share of illegal proceeds.
Both defendants were charged in a federal indictment returned in 2014. In her plea, White admitted to a statement of offense concerning her conduct. She admitted that, from 2008 to 2013, she passed 127 forged prescriptions for drugs, including oxycodone, a synthetic opiate, in the name of practicing cardiologist with offices in Northwest Washington. Ninety-one of the prescriptions were written in the name of Rice, her friend, who was never a patient of the doctor.
White, a former employee of the doctor, left her job as a receptionist in January 2010, but took a blank prescription pad from the office when she left. White was not a health care professional and did not have authority to write prescriptions for herself or for Rice.
Rice caused the forged prescriptions that she obtained to be billed to health care plans such as Express Scripts and Blue Cross and Blue Shield. The health plans were defrauded the costs of filling these various prescriptions. White presented forged prescriptions in her own name as well, and caused them to be billed to one of four different health insurance plans which she maintained: Safeway Informed RX, Blue Cross Blue Shield, United Health, and Medco Health, which were the victims of the health care fraud charges.
In announcing the guilty plea, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Special Agent in Charge DiGiulio commended the work of those who investigated the case from the FBI’s Washington Field Office and the HHS Office of the Inspector General. They also expressed appreciation for the work of Assistant U.S. Attorneys John P. Dominguez and Jennifer Kerkhoff, who prosecuted the case.
Marrero Homeowner Sentenced for Theft of Home Elevation Grant FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CINDY DANDRIDGE, age 43, of Marrero, was sentenced today after previously pleading guilty to a one-count Bill of Information charging her with theft of government funds.
U.S. District Judge Mary Ann Vial Lemmon sentenced DANDRIDGE to 12 months and a day imprisonment, followed by two years of supervised release. As part of the sentence, the Court also ordered DANDRIDGE to pay $50,000 in restitution to the government.
According to documents filed in federal court, DANDRIDGE owned a home in Marrero, Louisiana. In September and October 2010, DANDRIDGE executed application documents with the Home Elevation Mitigation Grant Program (“HMGP”) to receive federal grant funds to elevate her house in Marrero, Louisiana. The application was completed with the understanding that the grant monies would be used to elevate her home.
In January 2011, DANDRIDGE received federal HMGP grant monies totaling $50,000 to elevate her house in Marrero. DANDRIDGE deposited these federal funds into her personal bank accounts. However, instead of using the monies to elevate her home, DANDRIDGE used the grant monies to pay for personal expenses.
U.S. Attorney Polite praised the work of the Department of Homeland Security, Office of Inspector General, in investigating this matter. Assistant United States Attorney, Richard R. Pickens, II is in charge of the prosecution.
Manhattan U.S. Attorney Announces Civil Forfeiture Complaint to Recover Proceeds of $100 Million Wire Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the filing of a civil forfeiture complaint against the funds in at least 20 bank accounts around the world that are alleged to constitute the proceeds of an elaborate scheme to defraud a United States company (the “Victim Company”). In particular, the complaint filed today in Manhattan federal court alleges that the perpetrators of this fraud created a fake email address and posed as one of the Victim Company’s legitimate vendors (the “Vendor”) in communications with a professional services company (the “Professional Services Company”) that the Victim Company retained to handle the details and logistics of vendor payments. Through these fraudulent communications, the perpetrators of the scheme caused the Victim Company to transfer nearly $100 million due to the Vendor to an account at Eurobank Cyprus, Ltd (“Eurobank”) that was actually under their control. Almost immediately after funds were transferred into this account, the perpetrators of this scheme caused portions of the fraud proceeds to be further dispersed to accounts under their control around the world, including in Latvia, Estonia, Hungary, Lithuania, Slovakia, Estonia, and Hong Kong.
Through the timely actions of officials at Eurobank, and in coordination with U.S. and Cypriot law enforcement authorities, more than $74 million of the stolen funds have already been returned to the Victim Company. Foreign governments acting at the request of U.S. authorities have restrained 20 accounts worldwide that received portions of the remaining ill-gotten funds, and the funds in those accounts are the subject of the complaint filed today in Manhattan federal court.
Manhattan U.S. Attorney Preet Bharara said: “Criminals can be resourceful and unrelenting in their efforts to scam innocent victims out of money. Here, the alleged perpetrators – through a fake email address and by impersonating a legitimate vendor – almost got away with $100 million. Thanks to the timely actions of law enforcement here and abroad, as well as by Eurobank in Cyprus, where the stolen funds were first sent, $74 million has already been returned to the victim company. With this civil forfeiture action, we seek to return the rest.”
FBI Assistant Director-in-Charge Diego Rodriguez, said: “This modern-day impersonation scheme used a fake email account to scam a business instead of the old way of in-person imitation by the perpetrators. However, this scam was cut short in the end thanks to modern-day tools used by banks to stop suspicious transactions and cooperation by our foreign partners to restrain the transferred funds.”
As alleged in the Complaint:
The Victim Company is an American-based corporation doing business worldwide. Like many corporations, the Victim Company has contractors and vendors who are paid via wire transfer for services provided, including the Vendor, which is based in Asia. During all times relevant to the Complaint, the Victim Company retained the Professional Services Company to communicate with vendors and handle the details of vendor payments.
Over the course of several weeks in August and September 2015, the perpetrators of the scheme described in the Complaint managed to impersonate the Vendor by creating a fake email address that resembled email addresses used by actual employees of the Vendor. Using this fake email address, the perpetrators then communicated with an email account maintained for the purpose of allowing vendors to communicate with the Professional Services Company on behalf of the Victim Company. Through those email communications, the perpetrators of the scheme convinced the Professional Services Company to change the designated bank account to which the Victim Company would make recurring payments to the Vendor for services rendered. As a result, payments from the Victim Company meant for the Vendor were transferred to an account under the control of the perpetrators of this scheme (“Subject Account-1”) rather than an account actually affiliated with the Vendor.
Once this change was put into effect, the Professional Services Company, on behalf of the Victim Company, began directing a series of payments from Victim Company accounts in the United States to Subject Account-1 that were intended for the Vendor. Specifically, between August 21, 2015, and September 14, 2015, approximately 16 payments intended for the Vendor as payment for services rendered to the Victim Company were wired for deposit into Subject Account-1, totaling approximately $98,879,545.80. Officials at Eurobank developed concerns regarding these transfers and, as a result, restrained approximately $74 million of the transferred funds before they settled into Subject Account-1. In coordination with law enforcement authorities, those funds have since been returned to the Victim Company.
In regard to the approximately $25 million that actually settled into Subject Account-1, the perpetrators of the scheme then laundered portions of those crime proceeds through at least 19 additional accounts, including accounts in Cyprus, Latvia, Hungary, Estonia, Lithuania, Slovakia, and Hong Kong. Those accounts, along with Subject Account-1, have since been restrained by foreign governments acting at the request of U.S. authorities.
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Mr. Bharara praised the outstanding investigative work of FBI. He also thanked the
Financial Crimes Enforcement Network (“FinCEN”) of the United States Department of the Treasury, the Law Office of the Republic of Cyprus Unit for Combating Money Laundering, and Eurobank Cyprus Ltd. for all of their assistance in the investigation and the return of funds to the Victim Company.
This investigation is being handled by the Office’s Money Laundering and Asset Forfeiture Unit and Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Edward B. Diskant and Megan L. Gaffney are in charge of the case.
The investigation is ongoing.
Manhattan U.S. Attorney Announces Arrest of Chinese National for Illegally Attempting to Export High-Grade Carbon Fiber to ChinaRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, John P. Carlin, Assistant Attorney General for National Security, Angel M. Melendez, Special Agent in Charge of the New York Field Office of the Department of Homeland Security, Homeland Security Investigations (“HSI”), Jonathan Carson, Special Agent in Charge of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office (“DOC”), and Craig Rupert, Special Agent in Charge of the Department of Defense, Defense Criminal Investigative Service, Northeast Field Office (“DCIS”), announced the arrest of FUYI SUN, a/k/a “Frank,” a citizen of the People’s Republic of China (“China”), in connection with a scheme to illegally export to China, without a license, high-grade carbon fiber that is used primarily in aerospace and military applications.
SUN was arrested yesterday after traveling to New York to meet with undercover agents (“UCs”) in an effort to obtain the specialized fiber, which – due to its military and aerospace applications – requires an export license for export to China.
SUN was presented last night in Manhattan federal court before U.S. Magistrate Judge James L. Cott.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Fuyi Sun attempted for years to acquire high-grade carbon fiber for illegal export to China. Earlier this week, after traveling to New York from China to finalize the deal, Sun allegedly told undercover agents that the carbon fiber he sought was headed for the Chinese military, and then paid tens of thousands of dollars in cash to purchase two cases of it. And to avoid law enforcement detection, Sun allegedly directed the undercover agents to ship the carbon fiber in unmarked boxes and to falsify the shipping documents regarding the contents of the boxes.”
Assistant Attorney General John P. Carlin said: “Sun allegedly attempted to procure high grade carbon fiber for a source he repeatedly identified as the Chinese military. The carbon fiber – which has many aerospace and defense applications – is strictly controlled, and Sun expressed a willingness to pay a premium to skirt U.S. export laws. The National Security Division will continue to work to identify and hold accountable those who seek to violate IEEPA and other laws designed to protect our strategic commodities from those who may wish us harm.”
HSI Special Agent in Charge Angel M. Melendez said: “Keeping items such as this high grade carbon fiber, which can be used for military applications, from falling into the wrong hands possibly endangering national security, is a job HSI takes very seriously. Through this investigation, we have disrupted an alleged attempt to knowingly circumvent export controls and ensured this material will not be used for nefarious purposes.”
DOC Special Agent in Charge Jonathan Carson said: “A top priority of The Office of Export Enforcement is identifying and disrupting the illicit export of items for unauthorized military end-uses and users in China. Carbon fiber has military, missile and nuclear applications. In this case, working with our law enforcement partners we thwarted an alleged attempt to illegally export carbon fiber to China.”
DCIS Northeast Field Office Special Agent in Charge Craig Rupert said “The recent arrest reinforces the commitment of the Defense Criminal Investigative Service (DCIS) to halting the spread of Defense technology to restricted nations. The ongoing partnership with other law enforcement agencies is essential to shielding America's investment in defense.”
According to the allegations in the Complaint that was filed yesterday in Manhattan federal court:[1]
Since approximately 2011, SUN has attempted to acquire extremely high-grade carbon fiber, including Toray type M60JB-3000-50B carbon fiber (“M60 Carbon Fiber”). M60 Carbon Fiber has applications in aerospace technologies, unmanned aerial vehicles (commonly known as “drones”) and other government defense applications. Accordingly, M60 Carbon Fiber is strictly controlled – including that it requires a license for export to China – for nuclear non-proliferation and anti-terrorism reasons.
In furtherance of his attempts to illegally export M60 Carbon Fiber from the United States to China without a license, SUN contacted what he believed was a distributor of carbon fiber – but which was, in fact, an undercover entity created by HSI and “staffed” by HSI undercover special agents (the “UC Company”). SUN inquired about purchasing the M60 Carbon Fiber without the required license. In the course of his years-long communications with the undercover agents and UC Company, SUN repeatedly suggested various security measures that he believed would protect them from “U.S. intelligence.” Among other such measures, at one point, SUN instructed the undercover agents to use the term “banana” instead of “carbon fiber” in their communications. Consequently, soon thereafter he inquired about purchasing 450 kilograms of “banana” for more than $62,000. In order to avoid detection, SUN also suggested removing the identifying barcodes for the M60 Carbon Fiber, prior to transshipment, and further suggested that they identify the M60 Carbon Fiber as “acrylic fiber” in customs documents.
On or about April 11, 2016, SUN traveled from China to New York for the purpose of purchasing M60 Carbon Fiber from the UC Company. During meetings with the undercover agents, on or about April 11 and 12, 2016, among other things, SUN repeatedly suggested that the Chinese military was the ultimate end-user for the M60 Carbon Fiber he sought to acquire from the UC Company. SUN claimed to have personally worked in the Chinese missile program. And SUN asserted that he maintained a close relationship with the Chinese military, had a sophisticated understanding of the Chinese military’s need for carbon fiber, and suggested that he would be supplying the M60 Carbon Fiber to the Chinese military or to institutions closely associated with it.
On or about April 12, 2016, SUN agreed to purchase two cases of M60 Carbon Fiber from the UC Company. SUN paid the undercover agents $23,000 in cash for the carbon fiber. He also paid an additional $2,000 to the undercover agents as compensation for the risk he believed they were taking to illegally export the carbon fiber to China without a license.
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The Complaint charges SUN, age 52, in three counts: Count One charges attempt to violate the International Emergency Economic Powers Act (“IEEPA”); Count Two charges conspiracy to violate IEEPA; and Count Three charges attempt to smuggle goods from the United States. Counts One and Two each carry a maximum sentence of 20 years in prison. Count Three carries a maximum sentence of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the extraordinary investigative work of the New York Field Office of HSI, the DOC’s Bureau of Industry and Security’s Office of Export Enforcement, the DCIS New York Office, and the Department of Justice, National Security Division, Counterintelligence and Export Control Section.
This prosecution is being handled by the Office’s Terrorism and International Narcotics and Complex Frauds and Cybercrime Units. Assistant United States Attorneys Matthew Podolsky, Patrick Egan, Sean Buckley, and Nick Lewin are in charge of the prosecution. David Recker, Trial Attorney in the National Security Division, Counterintelligence and Export Control Section, is also assisting in the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Lumberton Man Sentenced to 140 Months for Firearms & Drug Trafficking OffensesRead 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 BALAL THEO CHOUDHARY, a/k/a Paco Choudhary 28, of Lumberton, North Carolina, to 140 months imprisonment, followed by 5 years of supervised release.
On October 5, 2015, CHOUDHARY pled guilty to Possession of a Firearm by a Felon, Possession with Intent to Distribute a Quantity of Cocaine and a Quantity of Marijuana, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
According to the investigation, in December 2013, detectives with the Lumberton Police Department, Drug Enforcement Unit, initiated an investigation into the drug distribution activities of CHOUDHARY. Leading up to December 2013, the police department received a number of complaints
regarding CHOUDHARY’S possession of firearms and the distribution of drugs from his residence in Lumberton. Detectives conducted a controlled purchase of 0.1 gram of cocaine base from CHOUDHARY in December, 2013.
On December 13, 2013, detectives conducted a search of CHOUDHARY’S residence and found 3 handguns, approximately 62 grams of marijuana, cocaine, and cocaine base, U.S. currency, scales, and drug paraphernalia.
The criminal investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lumberton Police Department, and the Robeson County Sheriff’s Office. Assistant United States Attorney S. Katherine Burnette handled the prosecution on behalf of the Eastern District of North Carolina.