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25 May 2016
Bridgeport Man Charged with Forcing Minor into ProstitutionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a grand jury in New Haven has returned an indictment charging BRANDON WILLIAMS, also known as “14K,” 35, of Bridgeport, with one count of sex trafficking of a minor and one count of sex trafficking by force, fraud or coercion.
The indictment was returned on May 17, 2016. WILLIAMS appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and entered a plea of not guilty to the charges.
As alleged in the indictment, between approximately July 10 and August 26, 2015, WILLIAMS forced a minor victim to engage in commercial sex acts.
WILLIAMS has been detained since his arrest on related state charges on August 26, 2015.
The charge of sex trafficking of a minor carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, and the charge of sex trafficking by force, fraud or coercion carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of life.
U.S. Attorney Daly stressed that an indictment 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 Federal Bureau of Investigation, with the assistance of the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and David E. Novick.
Boise Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
BOISE - Richard Martinez, Jr., 39, of Boise, Idaho, was sentenced today in United States District Court to 15 months in prison followed by 5 years of supervised release, for failing to register as a sex offender, U.S. Attorney Wendy J. Olson announced. Martinez pleaded guilty to the charges on March 7, 2016.
According to the plea agreement, Martinez was convicted in July 2011, of possession of child pornography by the Department of the Army. As a result of the conviction, Martinez was required to register and update his registration under the Sex Offender Registration and Notification Act (SORNA). Martinez was previously convicted of failing to register as a sex offender in Ada County, Idaho in 2015. After his release from custody in February 2015, Martinez registered as a sex offender with the State of Idaho, listing his residence as a hotel in Boise. Martinez confirmed this as his residence with the State of Idaho in April and June 2015. However, Martinez moved from the hotel in May 2015, and did not update his registration. Boise Police detectives arrested Martinez in Garden City, Idaho on July 8, 2015. Martinez subsequently admitted that he had moved approximately four to six weeks earlier and had not updated his registry as required.
The case was investigated by the United States Marshals Service (USMS), the Boise Police Department, and the Idaho Department of Correction, Bureau of Probation and Parole.
Richard Martinez, Jr. was prosecuted for a violation of the Sex Offender Registration and Notification Act (SORNA) passed by Congress in 2006. The Act requires sex offenders to register and keep their registration current in each jurisdiction where they reside. Violations of SORNA can be prosecuted in federal court.
Army Reserves Lt. Col. Indicted for Fraudulently Supplying Chinese-made Army Promotional Gear as Made in USARead the Press Release
BIRMINGHAM – A federal grand jury today indicted a lieutenant colonel in the U.S. Army Reserves for fraudulently supplying hundreds of thousands of Chinese-produced baseball caps and backpacks to the Army Recruiting Command on Defense Department contracts to supply “100 % U.S. MADE” products, announced U.S. Attorney Joyce White Vance, Defense Criminal Investigative Service Special Agent in Charge John F. Khin, and U.S. Army Criminal Investigation Command Special Agent in Charge James T. Wallis.
A three-count indictment filed in U.S. District Court charges that FREDERICK LAMAR BURNETT, 48, of Madison, through his Huntsville-based company, Lamar International Inc., schemed to defraud the Defense Department on three contracts, worth $6.2 million, between 2005 and 2009. All the contracts, two for baseball caps and one for backpacks, were for promotional items to be given to Army recruits. Burnett certified for all three contracts that he would meet the requirements of the Buy American Act, the Berry Amendment and federal regulations that require the government to buy domestic products and materials, according to the indictment.
The Buy American Act is a law requiring the federal government to buy domestic articles, materials and supplies, primarily to protect American labor. The Berry Amendment is a legal restriction on the Defense Department prohibiting it from spending its funds on clothing, fabrics, fibers and yarns that are not grown, reprocessed, reused or produced in the United States. The purpose of the Berry Amendment is to protect the viability of the textile and clothing production base in the United States.
Under the first contract awarded to Lamar International in 2005, Burnett supplied 209,706 baseball caps over three years and the government paid him $1.4 million, according to the indictment. Under the second contract, awarded in 2007, Lamar supplied 590,042 ball caps and the government paid him about $4 million. Under the third contract, also awarded in 2007, Lamar supplied 146,375 Army Combat Uniform backpacks and the government paid $1.1 million. A Defense Department accounting agency made the payments to Burnett by electronic funds transfer to his Huntsville bank.
Along with the required compliance to the BBA and the Berry Amendment, according to the indictment, both of the 2007 contracts included a statement, in all capital letters, that the “PRODUCT MUST BE 100% U.S. MADE.”
Instead of providing American-made products, however, Burnett negotiated and contracted with suppliers directly from China and with American companies who he knew were procuring the products from China. He used Chinese-made products to fill orders under all three contracts and hid their foreign manufacture by hiring workers on a cash basis to remove all the Chinese labels and repackage the items he sent to the Army Recruiting Command, the indictment says.
After award of the second contract, a competitor protested the bid, claiming Burnett could only bid so low if he were using foreign suppliers. The government allowed Burnett to proceed with the contract after he submitted documentation that he was using only American-made products and that he would comply with all aspects of the Buy American Act and the Berry Amendment, according to the indictment.
The total amount of the three contracts was $6.2 million. The indictment seeks to have Burnett forfeit that amount to the government as proceeds of illegal activity.
The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine.
DCIS and Army CID investigated the case, which Assistant U.S. Attorney David H. Estes is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Armed Career Criminal from Albuquerque Pleads Guilty to Unlawful Possession of a FirearmRead the Press Release
ALBUQUERQUE – Kristian Thomas, 35, of Albuquerque, N.M., pleaded guilty this morning in federal court to unlawfully possessing a firearm. Thomas entered his guilty plea under an agreement that permits him to appeal from a court order denying his motion to suppress evidence. He will be permitted to withdraw his guilty plea if he prevails on his appeal.
Thomas, whose criminal record includes convictions for armed robbery, conspiracy to commit armed robbery and attempted residential burglary, is being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution primarily based on their prior criminal convictions with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
Thomas was charged by criminal complaint on March 27, 2015, with being a felon in possession of a firearm. According to the complaint, on March 26, 2015, Albuquerque Police Department (APD) officers arrested Thomas at a pawnshop on Bridge SW in Albuquerque on an outstanding warrant. The officers found a revolver in Thomas’ pants pocket during a search incident to arrest. Thomas was subsequently indicted on April 28, 2015, and charged with being a felon in possession of a firearm.
During today’s proceedings, Thomas pled guilty to the indictment, and admitted that on March 26, 2015, he possessed a revolver, which he was not permitted to possess because of his status as a convicted felon.
Thomas remains in federal custody pending a sentencing hearing, which has yet to be scheduled. If deemed an armed career criminal, Thomas faces an enhanced sentence of a statutory mandatory minimum penalty of 15 years in prison.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and APD and is being prosecuted by Assistant U.S. Attorney Norman Cairns.
Andover Attorney Sentenced to Prison for $1.6 Million IRS ScamRead the Press Release
BOSTON –An Andover attorney was sentenced today in U.S. District Court in Boston in connection with his role in converting and laundering more than $1.6 million in fraudulently-obtained IRS refund checks through several different bank accounts, including several of his attorney trust accounts.
R. David Cohen, 64, was sentenced by U.S. District Court Judge Leo T. Sorokin to 54 months in prison and three years of supervised release during which time he is not permitted to practice law or act as a notary. The Court also ordered Cohen to pay over $1.6 million in restitution as well as forfeiture. In January 2016, Cohen was convicted by a federal jury in of one count of conspiracy to covert government funds, 14 counts of conversion and receipt of stolen United States property, and one count conspiracy to commit money laundering.
Cohen engaged in a scheme in which individuals filed fraudulent tax returns with fictitious W-2 information, usually a name and social security number of a resident of Puerto Rico, whose residents are not required to file federal income tax returns. Once the fraudulent returns were accepted by the IRS, refund checks were sent to designated addresses in Lawrence, East Boston, and New York controlled by Cohen’s co-conspirators.
Beginning in October 2011, Cohen and his co-conspirators deposited over 100 fraudulently-obtained tax refund checks totaling over $1 million into banks to launder them through Cohen’s “Interest On Lawyer’s Trust Accounts” (IOLTA), as well as through bank accounts in the name of AD Professional Association, Inc. When questioned by bank officials about the large amount of U.S. Treasury checks Cohen was depositing and negotiating through his IOLTA and personal accounts, Cohen falsely claimed that the payees were his clients. When one bank requested proof concerning one of the IRS refund checks, Cohen provided a fake participation agreement and affidavit purporting to state that he had the client’s authority to deposit her IRS refund check into his IOLTA account.
United States Attorney Carmen M. Ortiz and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys S. Theodore Merritt and Ryan M. DiSantis of Ortiz’s Public Corruption Unit.
Albuquerque Woman Arrested on Federal Fugitive Harboring ChargeRead the Press Release
ALBUQUERQUE – The U.S. Marshal Service (USMS) arrested Colleen Calamia, 37, of Albuquerque late this afternoon on a criminal complaint charging her with harboring and concealing a federal fugitive, announced U.S. Attorney Damon P. Martinez and U.S. Marshal Conrad E. Candelaria. Calamia will make her initial appearance in federal court tomorrow morning.
The criminal complaint alleges that Calamia harbored her husband, Mario Montoya, 31, after he absconded from a halfway house in Albuquerque on May 20, 2016. Court records reflect that Montoya, who was under indictment for being a felon in possession of a firearm and theft of mail, was released from federal custody on an order requiring him to reside in an Albuquerque-area halfway house and to comply with other conditions. The complaint alleges that Montoya violated the conditions of his release on May 20, 2016, by absconding from the halfway house and violating other release conditions. Montoya allegedly fled from the halfway house in a black sport utility vehicle.
On May 20, 2016, the court issued an emergency warrant authorizing Montoya’s arrest for violating his release conditions. According to the criminal complaint, on May 24, 2016, the USMS learned that Montoya was frequenting a residence located at 312 Western Skies (the residence) in Albuquerque. While conducting surveillance near the residence, USMS Deputies and Task Force officers allegedly observed Calamia driving a black Escalade that parked in front of the residence. They then allegedly observed Calamia and Montoya exit the vehicle and move objects from the vehicle and into the residence.
The complaint alleges that Calamia then left the residence in the black Escalade and USMS Deputies executed a traffic stop on her vehicle. When the Deputies questioned Calamia about Montoya’s whereabouts, she allegedly told them that Montoya was alone in the residence.
According to the complaint, when a USMS arrest team attempted to serve the arrest warrant on Montoya, he fired upon the deputies, initiating an exchange of gunfire. After the arrest team was able to retreat to a safe location, a second team later entered the residence. The second team found Montoya in a closet; he had been struck in the exchange of gunfire and was deceased.
If convicted, Calamia faces a statutory maximum penalty of five years in prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The USMS investigated this case, and Assistant U.S. Attorney Jacob A. Wishard is prosecuting it. Mr. Wishard was also prosecuting the case against Montoya, which was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Postal Inspection Service.
The shooting incident resulting in Montoya’s death is under investigation. As a matter of policy, Department of Justice agencies, including the U.S. Attorney’s Office and the U.S. Marshals Service, may not comment on ongoing investigations.
Alamogordo Man Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Justin Aaron Hudkins, 33, of Alamogordo, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to methamphetamine trafficking crime charges.
Hudkins was one of 34 individuals charged in December 2015 with federal and tribal drug offenses as the result of an 18-month multi-agency investigation led by the DEA and BIA into methamphetamine trafficking on the Mescalero Apache Reservation. Eighteen defendants, including five members of the Mescalero Apache Tribe and 13 non-Natives were charged in six federal indictments and a federal criminal complaint. Sixteen other members of the Mescalero Apache Tribe were charged in tribal criminal complaints approved by the Mescalero Apache Tribal Court.
The investigation leading to the federal and tribal charges was initiated in May 2014, in response to an increase in violent crime on the Mescalero Apache Reservation perpetrated by methamphetamine users. The investigation initially targeted a drug trafficking organization that was allegedly distributing methamphetamine within the Reservation, and later expanded to include two other drug trafficking organizations in southeastern New Mexico that allegedly served as sources of supply for the methamphetamine distributed within the Reservation. In Aug. 2014, the investigation was designated as part of the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) program, which combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations. The investigation is one of the first OCDETF investigations to utilize electronic surveillance (wiretaps) in Indian Country. More than ten kilograms of methamphetamine were seized during the course of the investigation.
Hudkins was arrested on an indictment charging him and seven co-conspirators with conspiracy to distribute methamphetamine in Otero County, N.M., between April 9, 2015 and Oct. 16, 2015, and other drug trafficking offenses. During today’s proceedings, Hudkins entered a guilty plea to participating in a methamphetamine trafficking conspiracy and using a communications device to facilitate a drug trafficking crime. In his plea agreement, Hudkins admitted that in Aug. and Sept. 2015, he obtained gram quantities of methamphetamine from a co-defendant, which he sold to other individuals.
At sentencing, Hudkins faces a maximum of 20 years in federal prison followed by not less than three years of supervised release. A sentencing hearing has yet to be scheduled.
Hudkins is the 12th of the 18 federal defendants to enter a guilty plea. The remaining six federal defendants have entered not guilty pleas to the charges against them. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
The federal and tribal cases were investigated by the Las Cruces office of the DEA, District IV of the BIA’s Office of Justice Services (Mescalero Agency), BIA’s Division of Drug Enforcement, Mescalero Tribal Police Department, Hatch Police Department, FBI and Lea County Drug Task Force. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the federal cases, and Mescalero Tribal Prosecutor Melissa Chavez is prosecuting the tribal cases.
Accused Gangster Disciple Now Charged with Distributing HeroinRead the Press Release
BIRMINGHAM – An Ensley man indicted in Atlanta last month as a high-ranking member of the violent Gangster Disciples Gang was indicted today by a federal grand jury in the Northern District of Alabama for distributing heroin, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
The Alabama grand jury returned a one-count indictment charging TERENCE “T-Man” SUMMERS, 42, with distributing 100 grams or more of heroin on Sept. 2 in Birmingham. Summers already is in custody on the Northern District of Georgia charge of conspiring to participate in a racketeering enterprise that included multiple murders, attempted murder and drug crimes.
In a separate and unrelated indictment, the grand jury also charged a Madison man, ROBERT EUGENE LEWIS, 46, with one count of possessing with intent to distribute more than 100 grams of heroin in Madison County in November 2013.
Lewis currently is in federal custody in Michigan on other drug charges.
“The prosecution of heroin and opiate traffickers is a key priority for our office,” Vance said. “With overdose death rates at an all-time high nationwide, we are committed to prosecuting criminals who bring heroin into this district and putting them in prison. Disrupting the supply of heroin in north Alabama by taking two suppliers off the streets, including one who is charged with working as a leader in a violent, drug-trafficking, nationwide criminal enterprise, is a significant step in making this community safer.”
Summers was indicted in Georgia as part of an FBI-led multi-agency investigation in Georgia and Tennessee that resulted in 48 people charged in two federal indictments as members of the Gangster Disciples Gang and involved in an illegal criminal enterprise. Summers is one of three Birmingham residents charged in the Georgia indictment. The other two are Shauntay Craig, 37, and Quiana Franklin, 33.
According to court documents in the Georgia and Tennessee cases, the Gangster Disciples is a national gang active in more than 24 states with a highly organized structure including board members and governor-of-governors who each controlled geographic regions, governors, assistant governors, chief enforcers and chiefs of security for each state or regions within the state where the Gangster Disciples were active, and coordinators and leaders within each local group. To enforce discipline among Gangster Disciples and adherence to strict rules and structure, members and associates were routinely fined, beaten and even murdered for failing to follow the gang’s rules.
Summers is listed in the Georgia racketeering conspiracy indictment as having held the positions of governor of Alabama and governor-of-governors for Georgia, Alabama, South Carolina and Florida for the Gangster Disciples Gang.
That indictment lists Craig as having held the rank of Gangster Disciples board member, and Franklin as treasurer for Alabama.
The prison penalty for the heroin distribution charges against both Summers and Lewis is five to 40 years. The maximum fine is $5 million.
The FBI investigated Summers’ Northern District of Alabama case, which Assistant U.S. Attorney Austin D. Shutt is prosecuting. The FBI and the Madison-Morgan County Strategic Counterdrug Team, or STAC, investigated Lewis’ case, which Assistant U.S. Attorney Mary Stuart Burrell is prosecuting.
Anyone with concerns about opiate use and addiction should visit www.knowdope.org, a website sponsored by the U.S. Attorney’s Office that focuses on awareness and prevention of opiate addiction. The website provides a documentary, public service videos, and links to more information and resources to help with drug abuse and treatment.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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5 Charged in National Counterfeit Perfume RingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Angel Melendez, Special Agent in Immigration and Customs Enforcement’s Homeland Security Investigation in New York (“HSI”), Robert E. Perez, Director of the U.S. Customs and Border Protection New York Field Office (“CBP”), and William J. Bratton, the Commissioner of the New York City Police Department (“NYPD”), announced that PATRICK BADAL, KAIUM SHAH, KENNY NI, ABUL KASHEM, and PARVEZ SHAZZED were arrested today for participating in a scheme to distribute counterfeit name brand perfumes in New York and around the United States. The defendants were presented this afternoon in Manhattan federal court before U.S. Magistrate Judge Gabriel W. Gorenstein.
According to the allegations in the Complaint unsealed today in Manhattan federal court[1]:
From December 2014 to May 2016, the defendants and others (collectively, the “Counterfeit Perfume Ring”) imported generic liquid fragrances from China, separately imported boxes and packaging bearing counterfeit trademarks from China, packaged the generic liquid fragrances into the branded and trademarked packaging, and then sold counterfeit perfumes to wholesalers in New York and at least six other states, including out of a store located in or around Lafayette Street in New York City.
Based on physical surveillance conducted by NYPD and HSI, the Counterfeit Perfume Ring used seven primary locations to receive, prepare, and distribute its products:
The Port. Inbound shipping containers arrived at the Port of Newark and were transported to a bonded warehouse in Elizabeth, New Jersey, (the “Port”) regulated by CBP.
The Temporary Warehouse. Once shipping containers had been released by CBP, members of the Counterfeit Perfume Ring arranged for the containers to be moved from the Port to a temporary warehouse located in Elizabeth, New Jersey (the “Temporary Warehouse”). The Temporary Warehouse was operated by a trucking company (the “Trucking Company”).
Packaging Facilities. From the Temporary Warehouse, the Trucking Company typically delivered the containers to premises in Queens, New York, for packaging (the “Packaging Facilities”).
The Storage Facility. The Counterfeit Perfume Ring then transferred the goods from the Packaging Facilities to a self-storage facility located in Queens, New York (the “Storage Facility”).
The Freight Forwarder. The Counterfeit Perfume Ring distributed certain of its goods to wholesalers located outside the New York City area. To accomplish this, the Counterfeit Perfume Ring used a freight forwarding service (the “Freight Forwarder”) to pick up pallets of goods from the Storage Facility. The Freight Forwarder, in turn, delivered parcels to out-of-state addresses. In addition to distributing its products out-of-state, the Counterfeit Perfume Ring distributed its products throughout New York City. SHAZZED operated one of these locations, a store located in or around Lafayette Street in New York City.
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BADAL, SHAH, NI, KASHEM, and SHAZZED are each charged with one count of conspiracy to traffic in counterfeit goods and one count of trafficking in counterfeit goods, each of which carries a maximum penalty of 10 years in prison. BADAL, SHAH, NI, and KASHEM are also each charged with one count of trafficking in counterfeit packaging, which carries a maximum penalty of five years in prison. BADAL and SHAH are also charged with smuggling goods into the United States, which carries a maximum sentence of 20 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 praised the outstanding work of HSI, CBP, and NYPD for their investigative efforts and ongoing support and assistance with the case.
The prosecution of this case is being overseen by the Office’s General Crimes Unit. Assistant U.S. Attorneys Andrew M. Thomas and Michael C. McGinnis are in charge of the case.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
24 May 2016
Williamsburg Man Sentenced on Employment Tax Fraud ChargeRead the Press Release
ROANOKE, VIRGINIA – A Williamsburg man, who was convicted in October 2015 of conspiring to defraud the United States of more than $3 million of employment taxes, was sentenced last week in the United States District court for the Western District of Virginia in Roanoke, United States Attorney John P. Fishwick Jr. announced.
Vladimir Maglnik, 52, of Williamsburg, Virginia, was found guilty in October 2015 of one count of conspiring to defraud the United States and conspiracy to harbor illegal aliens for commercial advantage or private financial gain. Last Week in District Court, Maglnik was sentenced to 20 months in federal prison and ordered to pay a fine of $7,500.
“This defendant used the hard work of migrant workers to line his own pockets with millions of dollars in ill-gotten riches,” United States Attorney John P. Fishwick Jr. said today. “Many of his victims were forced to live in squalor and pay rent, afraid to contact law enforcement, while Maglnik defraud the United States government. We are glad his strong of deceit has been exposed and justice has been served.”
According to evidence presented at previous hearings by Assistant United States Attorney C. Patrick Hogeboom, from at least 2002 continuing through 2007, Maglnik and Makera Galustyants owned North American Management (NAM), a company that contracted labor service contracts with hotels, primarily in Florida, Virginia and Louisiana. NAM agreed to provide temporary employees to perform housekeeping services, would be responsible for hiring and paying all temporary workers as well as complying with all federal regulations, including the deduction and payment of employment taxes from the temporary workers’ wages. The hotels were also assured that the temporary workers held legitimate work permits and were eligible to work in the United States.
However, according to evidence presented in court, NAM routinely violated the terms of the contract and failed to pay employment taxes to the United States Treasury on any of the temporary works employed by NAM. All told, the conspirators pocketed $3,082,097 in unpaid employment taxes.
The investigation of the case was conducted by U.S. Immigration and Custom Enforcement’s Homeland Security Investigations, the Internal Revenue Service, Criminal Investigations, the Department of Labor and the Federal Bureau of Investigation. Assistant United States Attorney C. Patrick Hogeboom III prosecuted the case for the United States.
U.S. Fish and Wildlife Service Scuba Diver Sentenced for Abusive Sexual Contact of a SubordinateRead the Press Release
MISSOULA – Lawrence L. Lockard, 67, of Bigfork, was sentenced Friday to 6 months in prison for abusive sexual contact. Chief U.S. District Court Judge Dana Christensen issued the sentence and ordered Lockard to pay $21,872.49 in restitution to the victim. Lockard will also be subject to five years’ supervised release.
Special Assistant U.S. Attorney Adam Duerk stated in court documents that if called upon to prove its case at trial, the United States would have been prepared to show that Lockard had sexually assaulted a co-worker while on a work related field trip. On September 8, 2015, Lockard and two colleagues began a work related SCUBA diving trip at Quartz Lake, in the northwest portion of Glacier National Park. Lockard and a female co-worker slept in a cabin, while the third co-worker slept outside in a tent to avoid disturbing the others with his sleep apnea.
On the second night of the trip, the female co-worker woke to find Lockard in the bed with her, touching her inappropriately and attempting to remove her clothing. The victim immediately got out of bed, and Lockard returned to his bed. The victim informed him the following day that he never had permission to touch her. Lockard admitted he was aware that the victim was wearing earplugs and had taken sleeping medication. He stated on being interviewed by an NPS special agent that he knew what he did was wrong and knew the victim was asleep during his attempted assault.
Lockard was both the victim’s supervisor and 17 years her senior. The sentence was enhanced because Lockard knew at the time that the victim had been drinking, had taken prescription sleep medication, and was asleep wearing earplugs when he initiated contact. The victim testified that she still suffers from fear, anxiety, and sleeplessness as a result of Lockard’s conduct. Judge Christensen ruled that despite the Defendant’s lack of any criminal history, admirable employment record, and good standing in the community, any type of unsolicited sexual contact is absolutely intolerable.
This case was investigated by National Park Service Special Agent Justin Ivary and prosecuted by Special Assistant U.S. Attorney Adam Duerk.
U.S. Customs and Border Protection Officers Arrest India National Using a False Document to Enter the United StatesRead the Press Release
St. Thomas, USVI – Chintamkumar Patel, 23, made his initial appearance on Friday, May 20, 2016, before U.S. Magistrate Judge Ruth Miller after being charged in a complaint with using a false document to defraud the United States, United States Attorney Ronald W. Sharpe announced. Patel was released pending further proceedings after a detention and preliminary hearings on Monday.
According to the complaint, on May 19, 2016, Patel appeared at the U.S. Customs and Border Protection (CBP) primary inspection checkpoint at the Cyril E. King Airport, St. Thomas, Virgin Islands, and presented a false New York driver’s license. Patel was a ticketed passenger on an American Airlines flight to the mainland United States.
Under federal law, if convicted of using a false document to defraud the United States, Patel faces a maximum of one year in prison and a $100,000 fine. This case is being investigated by CBP and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Everard Potter.
United States Attorney Sharpe reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Two Saratoga Doctors Indicted for Health Care Fraud and Money LaunderingRead the Press Release
SAN JOSE - A federal grand jury indicted Dr. Vilasini M. Ganesh and Dr. Gregory Belcher last week with conspiracy to commit health care fraud, health care fraud, conspiracy to commit money laundering, and money laundering, announced Acting United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. Dr. Ganesh is a family practitioner and Dr. Belcher is an orthopedic surgeon.
According to the indictment, between 2009 and continuing through at least September 2014, Ganesh, 46, of Saratoga, Calif., together with her partner, Belcher, 54, also of Saratoga, engaged in a scheme to defraud insurance companies administering health care benefit programs (“HCBPs”). As alleged in the indictment, Ganesh and Belcher used their Saratoga medical practice, Campbell Medical Group (“CMG”), to unlawfully enrich themselves. Ganesh and Belcher are alleged to have submitted false and fraudulent claims to the HCBPs, concealed the submission of false and fraudulent claims to the HCBPs, and diverted proceeds of the fraud for their personal use. In addition, Ganesh allegedly submitted and caused to be submitted to HCBPs claims for services that she knew were not properly payable because she included (1) false codes that artificially inflated both the seriousness of the patient’s condition as well as the time that the physician spent examining the patient; (2) false diagnoses in the claims that did not correspond with the true health and presentation of the patient; (3) claims for days when the patient had not been seen by the provider; and (4) representations that the patients were seen by another physician provider (not herself) no longer affiliated with Dr. Ganesh and her practice at CMG.
The indictment further alleges that Ganesh compounded these illegal acts by misrepresenting, concealing, and hiding or directing her subordinates to misrepresent, conceal, or hide, acts done in furtherance of the scheme. Specifically, when approached by representatives of the HCBPs, or the patients themselves, to provide documentation or additional information to substantiate the claims that were being submitted at her direction and on her behalf, Ganesh either directed her office staff to have no further discussions with anyone about the claims or to simply resubmit the false information, all to avoid disclosing the truth of the underlying the scheme. Furthermore, the indictment alleges Ganesh, together with the assistance and knowledge of Belcher, submitted hundreds of claims for reimbursement from the HCBPs for: (i) days that were weekends when the CMG office located in Saratoga was closed; (ii) days on which the patient denied they were seen; and/or (iii) days when the patient could not have been seen by Ganesh or her staff because either the patient or the doctor was not physically present in California. The defendants allegedly also used billing codes that indicated Ganesh and/or Belcher had spent more than 24 hours in a single day seeing patients. The defendants also maintained multiple bank accounts through which they are alleged to have attempted to conceal the nature and source of the illegally obtained funds which resulted from their scheme to defraud.
Defendants were charged with one count of health care fraud conspiracy, in violation of 18 U.S.C. § 1349; one count of conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(b); and six counts of money laundering, in violation of 18 U.S.C. §§ 1956(a)(l)(B)(i) and 2. In addition, defendant Ganesh was charged with five counts of health care fraud, in violation of 18 U.S.C. §§ 1347 and 2, and five counts of false statements relating to health care matters, in violation of 18 U.S.C. § 1035. Both defendants were arrested this morning in Saratoga and made their initial appearance in federal court in San Jose this afternoon in front of U.S. Magistrate Judge Nathanael M. Cousins. Both defendants were released on bond, pending further hearings. Bail was set at $250,000 per defendant. The defendants’ next scheduled appearance is at 1:30 on Friday, May 27, 2016, for identification of counsel and further bond proceedings before the Honorable Nathanael M. Cousins, U.S. Magistrate Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum sentence of 10 years imprisonment and a fine of $250,000, plus restitution for each violation of 18 U.S.C. §§ 1349 and 1347; and 20 years imprisonment and fine of $500,000 or twice the value of the laundered funds, whichever is greater, plus restitution, for each violation of 18 U.S.C. §§ 1956(h) and 1956(a)(1)(B). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Amie D. Rooney is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the FBI.
Two Mass. Men Detained in R.I. on Sex Trafficking ChargesRead the Press Release
PROVIDENCE, R.I. - Kedwin Vargas, 25, and Rene A. Laureano, 30, of Roxbury, Mass., have been ordered detained in federal custody on federal criminal complaints charging them with conspiracy to transport a minor interstate for prostitution and transporting a minor interstate for prostitution.
According to court documents, it is alleged that information about the trafficking of a minor female from Boston to Rhode Island for the purpose of prostitution by Vargas and Laureano came to the attention of law enforcement after an East Greenwich resident contacted Rhode Island State Police alleging that he was being extorted by a Massachusetts resident in exchange for not providing information to his wife about sexual encounters with the minor female in exchange for payment.
Vargas was arrested on May 19, 2016, and ordered detained by Magistrate Judge Lincoln D. Almond. Laureano was arrested on Monday and was ordered detained by Magistrate Judge Lincoln D. Almond.
The arrest and detention of Vargas and Laureano is announced by United States Attorney Peter F. Neronha, Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police, and Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI.
According to court documents and information presented to the court, in March 2016, an East Greenwich resident contacted Rhode Island State Police and alleged that Vargas was attempting to extort him by threatening to provide a video and audio recording to his family which contained information regarding sexual encounters he had with a minor female in exchange for payment. An investigation by Rhode Island State Police and the FBI revealed numerous text messages and cell phone conversations between Vargas and others with the East Greenwich resident, in which it is alleged that Vargas is identified as the person allegedly attempting to extort cash from the East Greenwich resident.
According to court documents, it is alleged that the investigation revealed that more than a year ago, Vargas began posting ads on backpage.com offering the minor female for prostitution. It is alleged that in many instances, Laureano would drive the female to meet with customers, including the East Greenwich resident. It is alleged in court documents that the East Greenwich resident admitted to investigators that he had met with and had sexual contact with the female on numerous occasions in several different locations in Rhode Island in exchange for cash.
The case is being prosecuted by Assistant U.S. Attorney William J. Ferland.
The Warwick, R.I., and Boston Police Departments assisted in the investigation of this matter.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Two KC Men Indicted for Murder, Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Kansas City, Mo., men were indicted by a federal grand jury today for committing a murder as part of a drug-trafficking conspiracy.
James P. Roberts, 24, and Marcell Shavers, 25, both of Kansas City, were charged in a two-count superseding indictment returned by a federal grand jury in Kansas City, Mo. Today’s superseding indictment replaces an indictment returned on March 29, 2016.
Today’s indictment alleges that Roberts and Shavers conspired with each other to possess methamphetamine with the intent to distribute on Jan. 1, 2014. The indictment also alleges that Shavers, aided and abetted by Roberts, used a firearm to murder Jose Medellin in perpetration of the drug-trafficking conspiracy on that day.
The original indictment charged Roberts and Shavers with using a firearm during a drug-trafficking offense, which carries a penalty of five years to life in prison upon conviction. Today’s superseding indictment replaces that charge with one count of using a firearm during a drug-trafficking offense to commit murder, which carries a penalty of life in prison or death upon conviction.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Jeffrey Valenti and Joseph Marquez. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Two Former Maverick County Officials Sentenced on Federal Bribery ChargesRead the Press Release
In Del Rio today, former Maverick County Precinct 3 Commissioner and Eagle Pass ISD teacher Jose Luis Rosales and former Maverick County Justice of the Peace and businessman Cesar Iracheta were sentenced for their roles in a bribery, kickback and bid-rigging scheme announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States District Judge Alia Moses, Rosales was sentenced to 66 months imprisonment and 300 hours of community service. Rosales also was ordered to pay $14,185.72 in restitution. Iracheta was sentenced to 94 months imprisonment and ordered to pay $81,607.80 in restitution. On December 8, 2015, Rosales pleaded guilty to one count of receiving a bribe; Iracheta pleaded guilty to one count of paying a bribe to an agent of an organization receiving federal funds.
According to court records, Rosales admitted that during 2012, he manipulated the bidding process to guarantee that individuals he chose would be awarded Maverick County construction contracts. In the scheme, those contractors deposited the checks issued to them by Maverick County and then made cash payments to Rosales. According to court records, the private contractors submitted inflated bids to Maverick County to cover the bribe to Rosales.
Court records show Iracheta, doing business as C&A Construction in Maverick County, admitted that in 2010, he paid a total of between $8,000 and $10,000 to a Maverick County Commissioner in order to secure two Precinct 2 county construction contracts worth approximately $49,000. According to court records, Iracheta submitted inflated bids to Maverick County to cover the bribes to the county commissioner.
“The sentencing of these two defendants illustrates San Antonio FBI’s firm commitment to work with our law enforcement partners to address public corruption and hold corrupt officials in Maverick County accountable,” stated FBI Special Agent in Charge Christopher Combs. “The FBI encourages the public to continue to support our active and ongoing efforts to root out graft in South Texas by reporting corrupt activity to the FBI’s Public Corruption Hotline, 1-800-CALL-FBI.”
Rosales and Iracheta remain on bond. Rosales must self-surrender no earlier than September 12, 2016. Iracheta must self-surrender no earlier than August 24, 2016.
This investigation was conducted by the FBI and the Texas Department of Public Safety Criminal Investigative Division together with the Customs and Border Protection Office of Internal Affairs and the Eagle Pass Independent School District Police Department
Assistant United States Attorney Katherine Griffin prosecuted this case on behalf of the Government.
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Troy Man to Serve 15 Years in Prison for Attempted Sex Trafficking of A ChildRead the Press Release
Shane L. Schlaefer, 28, of Troy, Illinois was sentenced in the U.S. District Court to 15 years in prison for Attempted Commercial Sex Trafficking of a Child and Attempted Enticement of a Minor, Acting United States Attorney James L. Porter has announced. Schlaefer was also ordered to pay a $500 fine and a $200 special assessment. When he is released from prison, Schlaefer will be on federal supervised release for an additional 15 years. He has been in custody since he was arrested on these charges on April 6, 2015.
Documents filed in the U.S. District Court establish that in November of 2014, during an authorized undercover Internet investigation, a Special Investigator with the Ohio Internet Crimes Against Children Task Force (ICAC) received numerous messages from Schlaefer in which he stated that he wanted to engage in sexual acts with a child. From November 14, 2014 to April 6, 2015, Schlaefer sent continuous messages requesting that the undercover investigator, posing as the mother of a 13-year-old girl, travel from Ohio to Illinois to allow Schlaefer to engage in sexual acts with the minor. Schlaefer offered to pay her $500. He also sent text messages directly to who he believed was the 13-year-old girl describing the sexual acts he wanted to perform. On April 6, 2015, the undercover investigator, communicating in an undercover capacity, agreed to travel to Troy, Illinois with her 13-year-old daughter to allow Schlaefer to engage sexual acts with the child.
On the night of April 6, 2015, Schlaefer arrived at a predetermined location in Collinsville, Illinois, exited his vehicle and was arrested by federal agents before entering the building. Schlaefer had $500 in United States currency in a sealed envelope within his pants pocket. During an interview with law enforcement, Schlaefer admitted that he had been communicating on the Internet with a woman who he thought was the mother of a 13-year-old girl living in Ohio and that he had offered to pay the woman $500 to drive to Illinois with her daughter to allow him to engage in sexual acts with the child. Schlaefer admitted that when he arrived at the pre-determined location, it was his intent to get a room at a nearby hotel where he would then engage in sexual intercourse with the child.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The investigation was conducted by investigators for the Ohio Internet Crimes Against Children Task Force, the United States Secret Service Southern Illinois Cyber-Crime Unit, and the Illinois State Police. The case was assigned to Assistant United States Attorney Ali Summers for prosecution.
Tobacco Distributors Plead Guilty to Multi-Million Dollar Tax Evasion SchemeRead the Press Release
BOSTON – Two men pleaded guilty today in U.S. District Court in Boston to evading federal income taxes and defrauding the Commonwealth of Massachusetts of millions of dollars in connection with the sale of cigarettes and other tobacco products.
Raza Ali, 56, of Hopkinton, and Kaleem Ahmad, 47, of Sharon, both pleaded guilty to one count of conspiring to commit wire fraud and launder money and one count of making a false statement on a federal income tax return. Ali and Ahmad were arrested and charged in a criminal complaint in December 2015. A third co-conspirator, Muhammad Saleem Iqbal, 54, of Sharon, also pleaded guilty for his role in the same conspiracy in May 2016. Ali is scheduled to be sentenced on Sept.14; Ahmad on Sept. 9; and Iqbal on Sept. 7, 2016.
Ali, Iqbal and Ahmad operated a wholesale business in Norwood, Mass. that sold tobacco products, including cigars, smoking tobacco and smokeless tobacco (such as snuff and chewing tobacco), to convenience stores, gas stations and other retail businesses. The business was conducted in Massachusetts under the names “Pick N Dip” and, later, “MSI Distributors.”
Wholesale businesses that distribute smoking tobacco, smokeless tobacco and cigars in the Commonwealth of Massachusetts must be licensed by the Massachusetts Department of Revenue. Wholesalers of smokeless tobacco must file an excise tax form monthly and pay excise tax on smokeless tobacco brought into and sold in Massachusetts. Cigar and smoking tobacco wholesalers must file an excise tax form quarterly and pay excise tax on cigars and smoking tobacco brought into and sold in Massachusetts.
To supply their business, Ali and Iqbal repeatedly purchased tens, and sometimes hundreds of thousands, of dollars at a time of smoking tobacco, smokeless tobacco and cigars in Pennsylvania, where no taxes are imposed on these products. Ali then arranged to have the products covertly transported to Massachusetts for resale. Ali and Iqbal did not file reports and records required by state and federal law, and did not pay excise taxes.
Ali, Iqbal and Ahmad accepted payments primarily in cash. They made and directed multiple bank deposits of cash from the business in amounts less than $10,000 to create the false appearance that the total amount being deposited fell below the amount they knew the banks were required to report to the U.S. Treasury Department. Ahmad and others repeatedly transported cash in excess of $50,000 at a time generated by the sale of untaxed cigars, smoking tobacco and smokeless tobacco products in Massachusetts to Pennsylvania, where the money was used to purchase additional untaxed tobacco products.
The charge of conspiracy provides for a sentence of no greater than five years in prison, three years of supervised release, restitution to the Commonwealth, and a fine of twice the tax loss to the Commonwealth. The charge of subscribing to a false income tax return provides for a sentence of no greater than three years in prison, one year of supervised release, restitution to the federal government and a fine of $100,000. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and David W. Hall, Special Agent in Charge of the Department of State, Diplomatic Security Service, Boston Field Office, made the announcement today. The Norwood Police Department provided valuable assistance in the investigation. The case is being prosecuted by Assistant U.S. Attorney Stephen P. Heymann of Ortiz’s Economic Crimes Unit.
Statement from Attorney General Loretta E. Lynch on the Case of United States V. Dylann RoofRead the Press Release
Contact Person: Office of Public Affairs (202) 514-2007
Washington – Attorney General Loretta E. Lynch today released the following statement regarding the United States v. Dylann Roof:
“Following the department’s rigorous review process to thoroughly consider all relevant factual and legal issues, I have determined that the Justice Department will seek the death penalty. The nature of the alleged crime and the resulting harm compelled this decision.”
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https://www.justice.gov/opa/pr/attorney-general-loretta-e-lynch-statement-case-dylann-roof
Six Residents of Southeastern Connecticut Charged with Staging Car Accidents in Insurance Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven has returned an indictment charging six men with fraud and conspiracy offenses for allegedly staging car accidents for the purpose of defrauding automobile insurance companies. The nine-count indictment was returned on May 18, 2016, and was unsealed yesterday.
Charged in the indictment are:
MACKENZY NOZE, also known as “Ken Ken,” 31, of Norwich
JONAS JOSEPH, 32, also known as “James,” of Norwich
FRANDY DUGUE, 39, also known as “Jimmy,” of Norwich
CARLINS CALIXTE, 32, of Norwich
JACQUES FLEURIJEUNE, 26, also known as “Magic,” of New London
PIERRE JEUDY, 56, of NorwichAs alleged in the indictment, the defendants and others deliberately staged approximately 50 automobile accidents in and around New London County. A high percentage of these planned crashes were single-vehicle accidents on remote roads where there were no witnesses other than the occupants of the crashed vehicle. After each staged accident, the defendants filed fraudulent property damage and bodily injury claims with various automobile insurance companies. They then collected payouts on the fraudulent claims from the victim insurance companies. These payouts typically ranged from about $10,000 to about $30,000 per accident.
FLEURIJEUNE, JEUDY and DUGUE were arrested on May 20, and NOZE and CALIXTE were arrested on May 23. NOZE and FLEURIJEUNE are detained and DUGUE, CALIXTE and JEUDY are released on bond.
JOSEPH is being sought by law enforcement. Citizens with knowledge of his whereabouts, or with information that may be helpful to the investigation of this matter, are encouraged to call the FBI at 203-777-6311, or the Norwich Police Department at 860-886-5561.
NOZE, DUGUE, CALIXTE, FLEURIJEUNE, and JEUDY are citizens of Haiti. DUGUE, CALIXTE and JEUDY are lawful permanent residents of the U.S.
The indictment charges each defendant with one count of conspiracy to commit mail and wire fraud, and multiple counts of mail and/or wire fraud. Each charge carries a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, the Norwich Police Department and the National Insurance Crime Bureau, with the assistance of the Mohegan Tribal Police Department. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Sioux City Man Sentenced to Federal Prison for Possession of a Sawed-Off ShotgunRead the Press Release
A Sioux City man who threatened another man with a sawed-off shotgun was sentenced on March 30, 2016 to more than a year in federal prison.
Billy Williams Navarrete, 22, from Sioux City, Iowa, received the prison term after a November 10, 2015 guilty plea to one count of Possession of a Sawed-Off Shotgun.
Evidence at the plea and sentencing hearing showed Navarrete threatened an unarmed man with a hammer, threw a rock at the unarmed man, and when that unarmed man retreated, followed him to his home where he again confronted him with a loaded sawed-off shotgun. Later law enforcement found the loaded weapon in Navarrete’s car and additional rounds of ammunition on his person.
Navarrete was sentenced in Sioux City by United States District Court Judge Lenard T. Strand. Navarrete was sentenced to 21 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Navarrete is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted as part of Project Safe Neighborhoods, a cooperative local, state, and federal program aimed at the enhanced prosecution of gun crimes. The case was investigated by the Sioux City Police Department, the Woodbury County Attorney’s Office, and the United States Department of Justice – Bureau of Alcohol Tobacco Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Forde Fairchild
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-4059.
Follow us on Twitter @USAO_NDIA.
Sacramento Man Charged with Arson for Setting Fire to Sacramento Nail SalonRead the Press Release
SACRAMENTO, Calif. — Paul La, 58, of Sacramento, was arraigned today on a 10-count indictment charging him with arson of a commercial structure, arson to commit a federal felony, and mail fraud, Acting United States Attorney Phillip A. Talbert announced.
According to the indictment, on February 6, 2011, La intentionally set fire to Golden Nails & Hair, a salon that he owned at 8335 Folsom Boulevard in Sacramento. La then knowingly lied about the cause of the fire and the extent of his destroyed business property in order to obtain payment from his insurance company.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorneys Michael D. Anderson and Amanda Beck are prosecuting the case.
If convicted, La faces a minimum five years and a maximum of 20 years in prison for arson to a commercial structure; a consecutive 10 years in prison for arson to commit another felony; and a maximum of 20 years in prison for each count of mail fraud. Each count also carries a maximum fine of $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Rochester Woman Sentenced for Robbing A BankRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Tiffany Hogan, a.k.a. Michael Hogan, of Rochester, NY, who was convicted of robbing the Chase Bank at 2900 Dewey Avenue in Rochester, was sentenced to eight years in prison by U.S. District Judge David G. Larimer.Assistant U.S. Charles E. Moynihan, who handled the case, stated that on May 22, 2015, Hogan entered the Chase Bank just after it opened and passed the bank teller a note demanding money. The note also indicated that nobody would be hurt if the teller complied. The teller provided Hogan with a specific amount of United States currency.
The defendant left the bank and entered a white minivan in which co-defendant Maximilion Broadnax was waiting and the two drove away. Hogan and Broadnax were arrested later that day at 17 Second Street in Rochester by Rochester Police officers who were looking for Broadnax in connection with his involvement in stolen vehicles. While taking Broadnax into custody, officers saw that Broadnax’s pants fell down and a large amount of United States currency fell out.
Charges are pending against Maximilion Broadnax. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, as well as the Town of Greece Police Department, under the direction of Chief Patrick Phelan, and the Rochester Police Department, under the direction of Chief Michael Ciminelli.
Rochester Hell’s Angel Sentenced for Baseball Bat BeatingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Robert W. Moran, Jr. aka Bugsy, 64, of Rochester, NY, who was convicted of conspiracy to commit assault with a dangerous weapon in aid of racketeering activity, was sentenced to 18 months in prison by U.S. District Judge Charles J. Siragusa. Moran was also prohibited by Judge Siragusa from being a member of the Hell’s Angels for a year after his release from prison.Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that on May 31, 2006, Moran – a member and officer of the Rochester Hell’s Angels – assaulted a patron at Spenders Bar, at 1600 Lyell Avenue in Rochester, with a baseball bat. The defendant beat the patron in the head and body with the bat after the patron made disparaging remarks about motorcycle clubs, including the Hell’s Angels. At the time of the assault, Moran was a member of the Rochester Hell’s Angels, which was an enterprise the members of which were engaged in racketeering activity, including drug trafficking and conspiracy to commit murder. The defendant committed the assault in order to maintain his position in the Rochester Hell’s Angels.
This case is part of a larger investigation that resulted in the indictment and arrest of members and associates of the Rochester and Monterey (California) Hell's Angels for drug trafficking and racketeering-related offenses in February 2012. Seven defendants were charged with conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of methamphetamine. All of the defendants – Richard W. Mar, James H. McAuley, Jr., Donna Boon, Jeffrey A. Tyler, Richard E. Riedman, and Paul Griffin, have been convicted for their roles in the methamphetamine conspiracy.
In addition, Gina Tata was convicted of being an accessory after the fact to the conspiracy to commit assault with a dangerous weapon in aid of racketeering activity. Another defendant, Timothy M. Stone, was convicted of being an accessory after the fact to the assault.Today’s sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam Cohen, the Genesee County Sheriff's Office, under the direction of Sheriff Gary T. Maha, the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, the New York State Police, under the direction of Major Craig Hanesworth, the City of Batavia Police Department, under the direction of Chief Sean Shawn Heubusch, and the Village of LeRoy Police Department.
Prior Felon from Deming Pleads Guilty to Unlawful Possession of a FirearmRead the Press Release
ALBUQUERQUE – Elias David Parra, 29, of Deming, N.M., pleaded guilty this afternoon in federal court in Las Cruces, N.M., to violating the federal firearms laws.
Parra was arrested in Oct. 2015, on a criminal complaint charging him with being a felon in possession of a firearm and ammunition. According to the complaint, officers of the Las Cruces Police Department arrested Parra after finding him in possession of a firearm and ammunition on Oct. 14, 2015, during a traffic stop in Doña Ana County, N.M. At the time, Parra was prohibited from possessing firearms or ammunition because he previously had been convicted of a drug trafficking felony in a Texas state court. Parra was indicted on Jan. 20, 2016.
During today’s proceedings, Parra pled guilty to the indictment, and admitted that he unlawfully possessed a firearm and ammunition on Oct. 14, 2015. Parra acknowledged that he was prohibited from possessing firearms or ammunition as a result of his prior felony conviction for possession of a controlled substance.
At sentencing, Parra faces a statutory maximum penalty of ten years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI, the Doña Ana County Sheriff’s Department and the Las Cruces Police Department. Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Previously Convicted Felon Sentenced to 40 Months for Possessing FirearmRead the Press Release
DAYTON – Gary Swisher, Jr., 44, of West Carrollton, Ohio, was sentenced in U.S. District Court to 40 months in prison for possessing a firearm after having been convicted of a felony.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, and Donald J. Soranno, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced the sentence handed down today by U.S. District Judge Timothy S. Black.
According to court documents, in May, June and October of 2015, Swisher illegally sold multiple firearms to an individual in the Dayton area. When he possessed the firearms, he had been previously convicted of felony offenses – namely, aggravated burglary and felonious assault.
He pleaded guilty on December 30, 2015 to possession of a firearm after having been previously convicted of a felony offense.
Swisher was also ordered to complete three years of supervised release and pay a $7,500 fine.
Acting U.S. Attorney Glassman commended the investigation by ATF, as well as Assistant United States Attorney Andrew J. Hunt, who is representing the United States in this case.
Pierre Man Sentenced for Conversion of Mortgaged PropertyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pierre, South Dakota, man charged with Conversion of Mortgaged Property pled guilty to and was sentenced on May 16, 2016, by U.S. Magistrate Judge Mark A. Moreno.
Timothy Sherwood, age 36, was sentenced to five years of unsupervised probation, $25 to the Federal Crime Victims Fund, and $65,095.34 in restitution to the Farm Service Agency (FSA).
The conviction stems from an incident that occurred between December 12, 2011, and September 30, 2012, wherein Sherwood was provided a loan in the amount of $76,000 from the U.S. Department of Agriculture, administered by the FSA, to purchase sheep and cover expenses related to their care. Sherwood then sold the sheep without FSA approval, and deposited the proceeds of the sales into his personal banking account, rather than the FSA banking account as was required by the loan agreement. Following the sales, Sherwood did not buy any more sheep and did not remit the proceeds to the FSA to repay his loan balance as required. Sherwood instead spent large amounts of money on personal, non-ranch expenses.
The investigation was conducted by the FSA and the U.S. Department of Agriculture, Office of the Inspector General. The case was prosecuted by Assistant U.S. Attorney Meghan N. Dilges.
Pensacola Resident Sentenced to Nine Years in Prison for Multi-State Money Laundering ConspiracyRead the Press Release
PENSACOLA, FLORIDA – Kenneth Grandison, 42, of Pensacola, was sentenced today to nine years in prison for conspiracy to commit money laundering and conspiracy to utilize a telephone facility to further a drug trafficking offense. The sentence was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
During his guilty plea on February 29, 2016, Grandison admitted that, between January 2012 and January 2016, he received illegal drugs from California, including marijuana and codeine, for further distribution in Florida. An investigation identified dozens of Bank of America and Wells Fargo accounts that Grandison used to launder the drug trafficking proceeds. In total, the Bank of America accounts received more than 200 cash deposits, and the Wells Fargo accounts received more than 600 cash deposits. This investigation involved the laundering of between $1.5 and $3.5 million.
This case resulted from an investigation by the Internal Revenue Service – Criminal Investigation, the Drug Enforcement Administration, the Escambia County Sheriff’s Office, the Pensacola Police Department, and the Gulf Breeze Police Department. Assistant United States Attorney David L. Goldberg prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Pennsylvania Man Charged with Hacking Apple and Google E-Mail Accounts Belonging to More Than 100 People, Mostly CelebritiesRead the Press Release
Update:
A Pennsylvania man charged in relation to the ongoing “Celebgate” investigation pleaded guilty this morning in United States District Court in Harrisburg, Penn. The case against Ryan Collins was investigated by FBI agents based in Los Angeles, and the plea agreement was negotiated by prosecutors in the United States Attorney’s Office in Los Angeles. The case was transferred to the Middle District of Pennsylvania for the entry of the guilty plea because the defendant lives in that area.
Collins pleaded guilty before Senior U.S. District Court Judge William W. Caldwell, who has not yet scheduled a date for sentencing. As indicated in the original press release (included below), Collins faces a statutory maximum penalty of five years in federal prison.
Original Release, which was issued on March 15:
Pennsylvania Man Charged with Hacking Apple and Google E-Mail Accounts Belonging to More Than 100 People, Mostly Celebrities
LOS ANGELES – A Pennsylvania man was charged today with felony computer hacking related to a phishing scheme that gave him illegal access to over 100 Apple and Google e-mail accounts, including those belonging to members of the entertainment industry in Los Angeles.
Ryan Collins, 36, of Lancaster, Pennsylvania, has signed a plea agreement and agreed to plead guilty to a felony violation of the Computer Fraud and Abuse Act. In the plea agreement also filed today, Collins agreed to plead guilty to one count of unauthorized access to a protected computer to obtain information.
Although Collins has been charged in Los Angeles, the parties have agreed to transfer the case to Harrisburg in the Middle District of Pennsylvania, near Collins’ home, for the entry of his guilty plea and sentencing. Once he enters the guilty plea, Collins will face a statutory maximum sentence of five years in federal prison. The parties have agreed to recommend a prison term of 18 months, but that recommendation will not be binding on the sentencing judge.
“Today, people store important private information in their online accounts and in their digital devices,” said United States Attorney Eileen M. Decker. “Lawless unauthorized access to such private information is a criminal offense. My Office remains committed to protecting sensitive and personal information from the malicious actions of sophisticated hackers and cyber criminals.”
According to factual basis in the plea agreement, from November 2012 until the beginning of September 2014, Collins engaged in a phishing scheme to obtain usernames and passwords for his victims. He sent e-mails to victims that appeared to be from Apple or Google and asked victims to provider their usernames and passwords. When the victims responded, Collins then had access to the victims’ e-mail accounts. After illegally accessing the e-mail accounts, Collins obtained personal information including nude photographs and videos, according to his plea agreement. In some instances, Collins would use a software program to download the entire contents of the victims’ Apple iCloud backups.
The charge against Collins stems from the investigation into the leaks of photographs of numerous female celebrities in September 2014 known as “Celebgate.” However, investigators have not uncovered any evidence linking Collins to the actual leaks or that Collins shared or uploaded the information he obtained.
Many of Collins’ victims were members of the entertainment industry in Los Angeles. By illegally accessing the e-mail accounts, Collins accessed at least 50 iCloud accounts and 72 Gmail accounts, most of which belonged to female celebrities.
“By illegally accessing intimate details of his victims' personal lives, Mr. Collins violated their privacy and left many to contend with lasting emotional distress, embarrassment and feelings of insecurity,” said David Bowdich, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “We continue to see both celebrities and victims from all walks of life suffer the consequences of this crime and strongly encourage users of Internet-connected devices to strengthen passwords and to be skeptical when replying to emails asking for personal information.”
The case against Collins is the product of an ongoing investigation by the Federal Bureau of Investigation.
Owner of Pizza Franchises Pleads Guilty to Submitting False Tax Return that Omitted Income from Skimmed CashRead the Press Release
BIRMINGHAM – The owner and operator of dozens of pizza franchise restaurants in Alabama, Georgia and Louisiana pleaded guilty today in federal court to filing a false federal income tax return that did not include money he skimmed from his Little Caesars restaurants, announced U.S. Attorney Joyce White Vance and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Veronica Hyman-Pillot.
RAMON S. ARIAS, 64, of Mountain Brook, entered his plea before Chief U.S. District Judge Karon O. Bowdre to one count of making a false tax return. In accordance with a plea agreement between Arias and federal prosecutors, Arias must pay $224,290 in restitution to the IRS, and cooperate with the IRS Civil Division in filing accurate amended tax returns for 2010 through 2013. He is scheduled for sentencing Oct. 4.
Arias owned, controlled and operated 26 to 45 Little Caesars franchises in the three states from 2010 through 2013, according to his plea. The stores were incorporated under various business names, with other individuals owning percentages of the businesses, but Arias was primarily responsible for running the businesses and managing the finances.
Arias operated a scheme to divert cash from the gross receipts of some of the businesses, primarily two to four of the restaurants in Alabama, during the four years, according to his plea. Arias used a certified public accountant to prepare his business and individual income tax returns, but did not provide the accountant with any information about the skimmed money.
The amounts of skimmed cash under-reported on Arias’ individual returns for 2010, 2011, 2012 and 2013 were $238,664, $265,413, $312,955 and $287,023, respectively, according to Arias’ plea agreement.
The maximum penalty for making a false tax return is three years in prison and a $250,000 fine.
IRS-CI investigated the case, which Assistant U.S. Attorney J. Patton Meadows is prosecuting.
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Oneida County Woman Indicted for Theft of Deceased Mother’s VA BenefitsRead the Press Release
SYRACUSE, NEW YORK – Michelle Gulla, 53, of Marcy, New York, appeared in court today in Syracuse, New York, on an indictment alleging she stole approximately $17,863 of Veterans Administration compensation benefits paid to her deceased mother, announced United States Attorney Richard S. Hartunian.
Gulla appeared pursuant to a summons and was ordered released pending a trial scheduled for July 18, 2016.
The charge filed against Gulla, a violation of Title 18, United States Code, Section 641, Theft of Public Money, carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. 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. The defendant is presumed innocent until proven guilty.
This case is being investigated by the Department of Veterans Affairs Office of Inspector General, Criminal Investigations Division, and is being prosecuted by Assistant U.S. Attorney Carl G. Eurenius.
Oklahoma City Man Sentenced for Possession of Child Pornography of Child Under 12Read the Press Release
Oklahoma City, Oklahoma – Last week, Gregory Maurek, 60, of Oklahoma City, Oklahoma, was sentenced by United States District Judge Timothy Diguisti to serve 120 months in federal prison for possession of child pornography, announced Mark A. Yancey, Acting U.S. Attorney for the Western District of Oklahoma.
On June 16, 2015, a two-count Indictment was returned in the United States District Court for the Western District of Oklahoma charging receipt and distribution of child pornography, and possession of child pornography, the production of which involved a prepubescent minor under the age of 12. On September 30, 2015, Maurek pleaded guilty to possession of child pornography, the production of which involved a prepubescent minor under the age of 12.
At the sentencing hearing last Thursday, Maurek was sentenced to 120 months of imprisonment. In addition, Judge Diguisti ordered Maurek to serve ten years of supervised release upon completion of his prison term.
This case is the result of an investigation by Homeland Security Investigations and was prosecuted by Assistant U.S. Attorney Kerry Blackburn.
Ohio Man Sentenced to 22 Years in Federal Prison for Bringing Minors to Chicago from Iowa to Engage in ProstitutionRead the Press Release
CHICAGO — An Ohio man was sentenced today to 22 years in federal prison for his role in a sex trafficking ring involving minor girls who were brought to Chicago from Iowa to engage in prostitution.
WILLIE WOODS, 46, of Toledo, Ohio, helped transport the minor girls from Iowa City in 2012. Once in Chicago, Woods and his co-conspirators forced the girls to engage in prostitution. At the time, one victim was 14 years old, one victim was 16 years old, and one victim was 17 years old.
A jury last year convicted Woods on one count of sex trafficking conspiracy; three counts of sex trafficking of minors by force, fraud or coercion; one count of transporting minors to engage in prostitution; and one count of obstruction of justice.
U.S. District Judge Sharon Johnson Coleman imposed the 264-month sentence in federal court in Chicago.
Woods “humiliated these girls, robbed them of their childhood and their innocence, and set them off on a path of self-destructive behavior,” Assistant U.S. Attorney Bethany K. Biesenthal argued in the government’s sentencing memorandum. “The girls will never be able to fully recover from the pain defendant inflicted.”
Woods is one of three defendants convicted in the case. MALIK MCKEE and his sister, SHUNTINA MCKEE, both of Iowa City, previously pleaded guilty to one count of sex trafficking conspiracy. Judge Coleman in 2014 sentenced Malik McKee to 102 months in prison, plus restitution of $6,000. Shuntina McKee is scheduled to be sentenced by Judge Coleman on May 31, 2016, at 9:30 a.m.
Evidence at Woods’ seven-day trial revealed that the defendants forced the minor girls to engage in prostitution in Iowa and Chicago. The defendants took photographs of the minors and used them in advertisements on websites, including Backpage.com. When individuals responded to the advertisement, the defendants arranged the meeting and then pocketed the proceeds.
The three minor girls testified at trial about their ordeals. The girls described the defendants’ violent and abusive acts, which included using power and coercion to force the girls to perform sex acts for money. One of the girls testified that Woods starved her by withholding food until she submitted to his demands to engage in prostitution.
The conviction was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation; and Eddie T. Johnson, Superintendent of the Chicago Police Department. The FBI and Chicago Police conducted the investigation in coordination with the Cook County Human Trafficking Task Force. Federal law enforcement authorities in the Southern District of Iowa and the Northern District of Ohio, as well as the Iowa State Police, assisted in the case.
The government is represented by Ms. Biesenthal and Assistant U.S. Attorney Megan Cunniff Church.
New York Man Charged in Connection to the Illegal Acquisition of PA Guns Bound for Other StatesRead the Press Release
PITTSBURGH – A New York resident has been indicted by a federal grand jury in Pittsburgh on charges of conspiracy, making false statements in connection with the acquisition of firearms, and transferring firearms to residents of another state, United States Attorney David J. Hickton announced today.
The 17-count second superseding indictment named one defendant: Nathan Lawrence, age 33, of Brooklyn, NY.
According to the second superseding indictment, between December 2014, and September 2015, Lawrence conspired and caused others to make false statements in connection with the acquisition of at least 20 firearms from licensed dealers in the Western District of Pennsylvania, and also aided and abetted the transfer of firearms between residents of different states.
At nine of the seventeen counts, the law provides for a maximum sentence of not more than ten years in prison, a fine of not more than $250,000, or both. At the remaining counts, the law provides for a maximum sentence of not more than five years in prison. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case is being prosecuted under Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime. The Bureau of Alcohol, Tobacco, Firearms and Explosives, along with detectives from the City of Pittsburgh Bureau of Police and the Allegheny County Sheriff’s Office, conducted the investigation leading to the second superseding indictment in this case. Assistant United States Attorney Conor Lamb is prosecuting this case on behalf of the government.
A second superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New York Man Arrested for Attempting to Provide Material Support to ISILRead the Press Release
Sajmir Alimehmeti, aka Abdul Qawii, 22, of the Bronx, New York, was arrested today for attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, as well as for making a false statement in an application for a U.S. passport. Alimehmeti is expected to be presented later today before U.S. Magistrate Judge Gabriel W. Gorenstein of the Southern District of New York.
The arrest was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Preet Bharara of the Southern District of New York, Assistant Director in Charge Diego Rodriguez of the FBI’s New York Field Office and Commissioner William J. Bratton of the New York City Police Department (NYPD).
“Alimehmeti was charged for his attempt to provide material support to ISIL by assisting a person who he believed was traveling to Syria to join ISIL,” said Assistant Attorney General Carlin. “The National Security Division will continue to work with our partners to identify, disrupt and hold accountable those who seek to provide material support to designated foreign terrorist organizations.”
“As alleged, Sajmir Alimehmeti, a Bronx man and an ISIL sympathizer, took steps to travel overseas to support ISIL’s terror campaign,” said U.S. Attorney Bharara. “As the complaint alleges, Alimehmeti also bought military-type weapons and helped someone he believed to be a fellow ISIL supporter get travel documents, equipment and encryption technology purportedly to get to Syria to fight with ISIL. Alimehmeti is charged today with actions that show a clear intention to support a terrorist organization that is hell-bent on murder and mayhem. For that, thanks to the incredibly dedicated work of the FBI-NYPD Joint Terrorism Task Force, Alimehmeti is under arrest and facing federal criminal charges.”
“The subject in this case was allegedly having a hard time getting overseas to fight with ISIL,” said Assistant Director in Charge Rodriguez. “But when he couldn’t leave, he allegedly seemed more than willing to help others tread the same path to join an insidious and deadly terrorist organization. Cases like this keep the FBI JTTF and our partners at the NYPD going day in and day out, protecting our city from individuals who plot to help murderers.”
“As alleged, Alimehmeti continued his quest to support ISIL’s deadly terrorist agenda, after being denied entry into Europe with a bag full of military gear,” said Commissioner Bratton. “When he returned home, to the Bronx, he allegedly turned to helping others join the terrorist organization as he built his own arsenal of weapons. Today’s case is the latest example of collaboration at its best, a case worked through the Joint Terrorism Task Force with undercover officers from the NYPD’s Intelligence Bureau.”
As alleged in the criminal complaint, unsealed today in federal court:
In October 2014, Alimehmeti attempted to enter the United Kingdom but was denied entry after U.K. authorities found camouflage clothing and nunchucks in his luggage. In December 2014, Alimehmeti was again denied entry into the United Kingdom, this time after U.K. authorities found that his cellphone contained images of ISIL flags and improvised explosive device attacks. Further forensic examination of images on the cellphone and Alimehmeti’s laptop computer showed numerous indications of Alimehmeti’s support for ISIL, including a picture of Alimehmeti with an ISIL flag in the background, pictures of ISIL fighters in the Middle East, a picture of Alimehmeti making a gesture of support for ISIL and numerous audio files relating to jihad and martyrdom.
After returning to the United States, Alimehmeti continued to express his support for -ISIL by displaying an ISIL flag in his apartment in the Bronx, among other things. In meetings with undercover law enforcement employees, Alimehmeti played multiple ISIL-related videos on his computer and his phone, including videos of ISIL decapitating prisoners.
Over the last 11 months, Alimehmeti made multiple purchases of military-style knives and other military-type equipment, including masks, handcuffs, a pocket chain-saw and steel-knuckled gloves.
In October 2015, Alimehmeti applied for a new U.S. passport, claiming his previous passport had been lost. However, Alimehmeti later told an undercover law enforcement employee that his prior passport had not been lost and, instead, that he was applying for a new passport because he believed rejection stamps on his old passport, including rejection stamps from his attempted entries into the United Kingdom, would make it difficult to travel.
In May 2016, Alimehmeti attempted to assist an individual who was purportedly traveling from New York to Syria to train and fight with ISIL but who was actually an undercover law enforcement employee (UC). On May 17, 2016, Alimehmeti met with the UC in Manhattan, New York, where the UC was purportedly en route to John F. Kennedy International Airport to take an overseas flight later that night in order to join ISIL.
Alimehmeti agreed to help the UC with several tasks before the UC went to the airport, including by locating stores so that the UC could purchase supplies to use while traveling to and fighting with ISIL, including a cellphone, boots, a compass, a bag and flashlight, among other items. Alimehmeti provided the UC with advice and suggestions on the best boots to purchase and on which items to purchase. The defendant also advised the UC on the use of different kinds of encrypted communications apps, including an app that Alimehmeti stated was currently being used by “the brothers,” and downloaded three encrypted communications apps onto the UC’s new cellphone.
Further, Alimehmeti assisted the UC in traveling from Manhattan to a hotel in Queens, New York, so that the UC could purportedly meet with an individual who was preparing travel documents that the UC would use to travel to Syria (document facilitator). Alimehmeti, who had repeatedly expressed his own desire to travel to join ISIL, gave the UC a piece of paper with his name and contact information so that the UC could provide that information to the supposed document facilitator. In voicing his interest in joining ISIL, Alimehmeti stated, excitedly, “I’m ready to . . . go with you man . . . you know I would. I’m done with this place.” After leaving the hotel in Queens, Alimehmeti brought the UC to Kennedy International Airport via public transportation.
The charges contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
If convicted, Alimehmeti faces a maximum sentence of 20 years in prison for providing material support and a maximum sentence of 10 years in prison for making a false statement in an application for a U.S. passport. 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 a judge.
Assistant Attorney General Carlin joined U.S. Attorney Bharara in praising the outstanding efforts of the FBI’s New York Joint Terrorism Task Force. Assistant Attorney General Carlin and U.S. Attorney Bharara also thanked the Department of Justice’s Office of International Affairs and British authorities for their assistance.
The case is being prosecuted by Assistant U.S. Attorneys Brendan F. Quigley and Emil J. Bove III of the Southern District of New York with assistance from Trial Attorney Kiersten Korczynski of the National Security Division's Counterterrorism Section.
Alimehmeti Complaint
New York Attorney Charged in Scheme to Defraud in Connection with Northern District LitigationRead the Press Release
SAN FRANCISCO – Joel Zweig, an attorney who resides in New York, was charged with wire fraud, obstruction of justice, perjury, aggravated identity theft, and false statements to a government agency announced United States Attorney Brian J. Stretch, Federal Bureau of Investigation Special Agent in Charge John F. Bennett, and U.S. Postal Inspection Service Inspector in Charge Rafael Nuñez. The charges stem from allegations that Zweig attempted to manufacture evidence to prove losses suffered by a litigant in a federal case pending in the Northern District of California.
According to the indictment, Zweig, 52, was asked to provide documents in connection with the lawsuit Pet Food Express, Limited v. Royal Canin USA, Inc., C09-1483 EMC. The underlying lawsuit involved allegations that Pet Food Express suffered losses due to a breach of contract and that some of the losses were directly attributable to the planned opening of a retail store in Manhattan. On November 8, 2010, Zweig allegedly received an email that a witness was going to be deposed and that the witness needed the lease documenting Pet Food Express's intention to open the Manhattan store. Zweig allegedly manufactured a phony lease and then followed up with false declarations he knew would be submitted to the district court.
On or before November 11, 2010, Zweig allegedly caused the signature of a fictitious individual, "Anthony Guida," to be forged on a phony lease. Then, Zweig allegedly electronically scanned and transmitted by email a copy of the phony lease to the founder of Pet Food Express for use in the lawsuit. Moreover, sometime after November 8, 2010, and before July 26, 2011, Zweig allegedly misappropriated a copy of a notary seal to make it appear that a notary had witnessed and notarized signatures on the phony lease.
Further, according to the indictment, Zweig created two false affidavits and additional evidence in an effort to support the claim for damages. The first affidavit was supposedly by one of the signors of the phony lease. According to the indictment, Zweig created the affidavit and caused the signature of the supposed signor to be forged on it. The second affidavit was Zweig’s. According to the indictment, Zweig made material false statements under penalty of perjury concerning, among other matters, his receipt of the purported 2008 lease and his knowledge about the creation of the lease. Zweig allegedly knew when he delivered his affidavit to Pet Food Express’s attorneys that it would be submitted to the district court in the Northern District of California.
Zweig was charged with four counts of wire fraud, in violation of 18 U.S.C. § 1343; two counts of obstruction of justice, in violation of 18 U.S.C. § 1503; four counts of perjury, in violation of 18 U.S.C. § 1623(a); one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A; and one count of false statements to a government agency, in violation of 18 U.S.C. § 1001. Zweig is next scheduled to appear on June 15, 2016, at 9:30 a.m., before the Honorable Laurel Beeler, United States Magistrate Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum statutory penalty for wire fraud of 20 years’ imprisonment and a $250,000 fine, or twice the gain or loss. The maximum statutory penalty for obstruction of justice is ten years’ imprisonment and a fine of $250,000, or twice the gross gain or loss. The maximum statutory penalty for use of false documents and perjury is five years’ imprisonment and a $250,000 fine. The maximum statutory penalty for aggravated identity theft is a mandatory two-year consecutive sentence imposed on the underlying fraud count. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Robin Harris and Benjamin Kingsley are prosecuting the case. The prosecution is the result of an investigation by the FBI and the U.S. Postal Inspection Service.
New London Man Charged with Gun and Drug OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a grand jury in New Haven returned an indictment today charging ELLSWORTH ROBERTSON, also known as “S,” 35, of Hartford and New London, with narcotics and firearm offenses.
ROBERTSON was arrested on a federal criminal complaint on May 18, 2016. The complaint alleges that, on November 7, 2015, ROBERTSON was found in possession of distribution quantities of cocaine and crack cocaine in the wake a stabbing incident at the Mohegan Sun casino. Following his federal arrest, a court-authorized search of ROBERTSON’s New London apartment revealed more than two kilograms of cocaine, a quantity of heroin, thousands of dollars in U.S. currency, and other drug evidence.
The indictment charges ROBERTSON with possession with intent to distribute cocaine, possession with intent to distribute 500 grams or more of cocaine, possession with intent to distribute heroin, use of a firearm in furtherance of a drug trafficking offense, and possession of a firearm by a convicted felon.
If convicted of the charges contained in the indictment, ROBERTSON faces a maximum term of imprisonment of 20 years for possessing cocaine and heroin, a mandatory minimum term of imprisonment of five years for possessing 500 grams or more of heroin, a mandatory consecutive term of imprisonment of at least five years for possessing a firearm in furtherance of a drug trafficking offense, and a maximum term of imprisonment of 10 years for possession of a firearm by a previously convicted felon.
A separate warrant has been issued for ROBERTSON for violation of his federal supervised release. On May 20, 2008, ROBERTSON was convicted in federal court for possession with intent to distribute cocaine base “crack”). He was sentenced to 70 months of imprisonment for that offense and was on supervised releases when he is alleged to have committed the offenses charged in the indictment that was returned today.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New London Police Department and the Connecticut State Police’s Statewide Narcotics Task Force. The case is being prosecuted by Assistant U.S. Attorney John H. Durham.
Navajo Man from Newcomb Pleads Guilty to Discharging a Firearm During a Crime of ViolenceRead the Press Release
ALBUQUERQUE – Eli Hunt, 36, an enrolled member of the Navajo Nation who resides in Newcomb, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to discharging a firearm during a crime of violence. Under the terms of his plea agreement, Hunt will be sentenced to ten years in federal prison followed by a term of supervised release to be determined by the court.
Hunt was arrested in Dec. 2015, on a criminal complaint charging him with assault with a dangerous weapon, discharging a firearm during a crime of violence, and burglary. The complaint alleged that he committed the crimes on Dec. 3, 2015, on the Navajo Indian Reservation in San Juan County, N.M. According to the complaint, Hunt broke into a home in Little Water, N.M., and threatened a man and woman who lived there with a tire iron and a firearm. Hunt also fired shots into the air as he chased the victims around their residence and property while threatening to kill them.
Hunt was subsequently indicted on Dec. 17, 2015, and was charged with aggravated burglary, assault with a dangerous weapon, and discharging a firearm during a crime of violence.
During today’s proceedings, Hunt pled guilty to Count 3 of the indictment charging him with discharging a firearm during a crime of violence. In entering his plea, Hunt admitted discharging a firearm while assaulting a person with a deadly weapon.
Hunt was remanded into federal custody after entering his guilty plea. He will remain detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Niki Tapia-Brito is prosecuting the case.
Muskogee Man Sentenced to 37 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that DONNIE EUGENE DREW, age 26, of Muskogee, Oklahoma, was sentenced to 37 months imprisonment, followed by 36 months of supervised release for FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Section 922 (g)(1).
The charge arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation, Eastern District Violent Crime Task Force. The defendant pled guilty in January, 2016.
The Indictment alleged that on or about January 27, 2015, within the Eastern District of Oklahoma, the defendant, DONNIE EUGENE DREW, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, to-wit: One (1) Hopkins & Allen Arms “Safety Police”, .32 Caliber revolver handgun, which had been shipped and transported in interstate commerce.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparoleable sentence.
Assistant United States Attorney Rob Wallace represented the United States.
Midwest HIDTA Director Presents Awards in Fargo to Law Enforcement from the United States and CanadaRead the Press Release
FARGO - US Attorney Christopher C. Myers announced that on May 24, 2016, Midwest HIDTA Director Jeffrey Stamm presented a Midwest HIDTA Regional Award for ‘Outstanding Cooperative Effort’ to various members of law enforcement from the United States and Canada for their teamwork on "Operation Denial."
The Midwest HIDTA is headquartered in Kansas City, Missouri, and was established in 1990 after the Anti-Drug Abuse Act of 1988 was passed. The High Intensity Drug Trafficking Area (HIDTA) Program is a drug-prohibition enforcement program run by the United States Office of National Drug Control Policy. The mission of the program is to enhance and coordinate America’s drug-control efforts among local, state, and federal law enforcement agencies in order to eliminate or reduce drug trafficking and its harmful consequences in critical regions of the United States. The term "HIDTA" also refers to each geographic location, usually a major city, county, or border crossing, in which the program has established a headquarters which are placed in locations considered to be major drug trafficking zones; to date, 28 HIDTAs have been designated since the program began. Each HIDTA is governed by a HIDTA Executive Board which includes representatives from local, state, and federal law enforcement agencies in the area of each HIDTA. By law, each HIDTA Board is equally divided between federal law enforcement on the one side and state and local agencies on the other. The Grand Forks Narcotics Task Force is a HIDTA-funded task force. The following individuals were honored by the HIDTA program and received the Outstanding Cooperative Effort Award for their exemplary work on "Operation Denial":
• Special Agent Steve Gilpin, North Dakota Bureau of Criminal Investigation
• Special Agent Scott Kraft, North Dakota Bureau of Criminal Investigation
• Special Agent Michael Ness, North Dakota Bureau of Criminal Investigation
• Special Agent Ed Carter, North Dakota Bureau of Criminal Investigation
• Special Agent Jeremy Grube, Homeland Security Investigations – Grand Forks
• Detective Daniel Casetta, Grand Forks Police Department
• Investigator Joel Lloyd, Grand Forks County Sheriff’s Office
• Investigator Delicia Glaze, Grand Forks County Sheriff’s Office
• Detective Darin Johnson, Grand Forks Police Department
• Sergeant Devan Greuel, University of North Dakota Police Department
• Investigator Andreas Alt, WCSO/Grand Forks Police Department/Grand Forks Narcotics Task Force
• Sergeant Derek Madsen, Pembina County Sheriff’s Office
• Christopher Steenerson, Border Patrol
• Intelligence Analyst Lisa Gemar, North Dakota Bureau of Criminal Investigation
• Intelligence Analyst Ross Brumley, North Dakota Counter Drug
• Sergeant Travis Jacobson, Grand Forks Police Department
• Intelligence Research Specialist Devin Stefanowicz, Homeland Security Investigations – Grand Forks
• Special Agent Craig Williams, Homeland Security Investigations – Grand Forks
• Special Agent Brian Black, Homeland Security Investigations – Grand Forks
• United States Attorney Chris Myers, District of North Dakota
• Assistant United States Attorney Scott Schneider, District of North Dakota
• Assistant United States Attorney Scott Kerin, District of Oregon
• Grand Forks County State’s Attorney David Jones
• Grand Forks County Assistant State’s Attorney Carmell Mattison
• Special Agent Tom Irvin, United States Postal Inspection Service
• Special Agent Adam Henney, United States Postal Inspection Service
• Special Agent Mike Buemi, Drug Enforcement Administration – West Palm Beach, FL
• Special Agent Chuck Connelly, Drug Enforcement Administration – Fargo
• Special Agent Guy Gino, Homeland Security Investigations – Portland, Oregon
• France Beauchamp, Canadian Crown Prosecutor – Montreal
• Inspector Marc Grecco, Royal Canadian Mounted Police – Montreal
• Corporal Jacques Theberge, Royal Canadian Mounted Police – Montreal
• Staff Sargeant Joe Tomeo, Royal Canadian Mounted Police – Montreal
• Sargeant Josee Pelletier, Royal Canadian Mounted Police – Montreal
• Corporal Stephan Dufort, Royal Canadian Mounted Police – Montreal
• Constable Karim Mahrady, Royal Canadian Mounted Police – Montreal
"Operation Denial" is an international investigation that was initiated in 2015 after the overdose death of Bailey Henke in Grand Forks, North Dakota. The investigation has resulted in numerous indictments and convictions in federal court in the Districts of North Dakota and Oregon.
North Dakota Defendants
The following defendants, who are each from Grand Forks, have been sentenced in this case:
Ryan Jon Jensen - 240 months (20 years)
Joshua Tyler Fulp – 144 months (12 years)
Kain Daniel Schwandt – 42 months (3 ½ years)
David Todd Noye Jr. – 39 months (3 years 3 months)
Jameson Robert Sele – 36 months (3 years)
Brandon Corde Hubbard of Portland, Oregon, has pled guilty to Conspiracy to Distribute a Controlled Substance Resulting in Death and is currently set for sentencing in Fargo on June 6, 2016.
Ronnie Lee Helms of Acworth, Georgia, and Braden James Foley of Olympia, Washington, have been indicted in this case and are currently scheduled for trial July 5, 2016, in Fargo.
Daniel Vivas Ceron was arrested in Panama City, Panama, on July 17, 2015, and is currently awaiting extradition from Panama.
Oregon Defendants
Steven Fairbanks Locke – Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Substance. Trial set for July 19, 2016.
Channing Lacey – Conspiracy to Distribute a Controlled Substance Resulting in Serious Bodily Injury; Distribution of a Controlled Substance Resulting in Death; Possession of a Controlled Substance with Intent to Distribute. Trial set for July 19, 2016.
Carissa Marie Laprall - Three counts of Distribution of a Controlled Substance Resulting in Serious Bodily Injury and Possession of a Controlled Substance with the Intent to Distribute. Trial set for July 19, 2016.
An Indictment is merely an accusation and defendants are presumed innocent unless proven guilty.
Mexican National Pleads Guilty to Attempting to Provide Contraband to an InmateRead the Press Release
McALLEN, Texas – A 24-year-old Mexican National has entered a guilty plea to attempting to provide contraband to a federal inmate, announced U.S. Attorney Kenneth Magidson. Karen Yudith Reyes-Oliva pleaded guilty to a criminal complaint at a hearing today in federal court in McAllen before U.S. Magistrate Judge Peter E. Ormsby.
In April 2016, Reyes went to the East Hidalgo Detention Center in La Villa to visit her boyfriend, an inmate who was in the custody of the U.S. Marshals Service on federal narcotics charges. Upon walking through the metal detector, correctional officers discovered that Reyes had concealed a cellular phone and charger underneath her clothing.
Visitors are prohibited from bringing contraband, including cellular phones, into a correctional facility.
Sentencing has been set for June 9, 2016, at 3:00 p.m., at which time Reyes faces up to a year in federal prison and a possible $100,000 maximum fine. She has been in custody since her arrest where she will remain pending that hearing.
The U.S. Marshals Service initiated the investigation. Assistant U.S. Attorney Linda Requénez is prosecuting the case.
Media Advisory: June 6, 2016, Criminal Justice Reform ConferenceRead the Press Release
BOISE – Registration for the June 6, 2016, Criminal Justice Reform conference at Concordia University School of Law is nearly full. Top criminal justice scholars, major Idaho practitioners and policy makers and Idaho judges will convene to address reforms targeting some of the most pressing problems in our criminal justice system. Many participants in the conference will be available for interviews, and some may be available upon request in advance of the conference. Speakers and presenters will be:
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Raul Labrador, Idaho’s First District Congressman, an attorney, and, in the U.S. House of Representatives, a co-author of the bipartisan Sentencing Reform Act of 2015.
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Jonathan Wroblewski, Acting Assistant Attorney General, Office of Legal Policy, U.S. Department of Justice and former U.S. Department of Justice representative to the United States Sentencing Commission.Mr. Wroblewski is an expert in federal sentencing guidelines, the processes used to amend them and the impact on the federal criminal justice system on recent changes to federal drug sentencing guidelines.
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B. Lynn Winmill, Chief U.S. District Court Judge for the District of Idaho since 1999.
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Candy W. Dale, U.S. Magistrate Judge, District of Idaho, co-founder and one of the presiding judges for Idaho’s federal re-entry court, START Court.
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Timothy Hansen, District Court Judge, Fourth Judicial District, Ada County, Idaho, presiding Judge over Ada County’s Veterans Court.
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Kevin Kempf, Director, Idaho Department of Correction.
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Gabriel “Jack” Chin, Martin Luther King, Jr., Professor of Law, University of California, Davis School of Law. Professor Chin is one of the nation’s most respected experts on criminal justice and race and the law. The U.S. Supreme Court has acknowledged his article on collateral consequences of criminal convictions as “the principal scholarly article on the subject.”
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E. Lea Johnston, Professor, University of Florida Levin College of Law, Assistant Director, Criminal Justice Center. Professor Johnston is one of the nation’s leading experts on mental health and criminal law. Her work examines, among other things, the theoretical underpinnings of mental health courts, and the proper sentencing standards for offenders with significant mental disorders.
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J.J. Prescott, Professor, University of Michigan Law School, co-director, Empirical Legal Studies Center.Professor Prescott and his partners are developing and implementing web-based case resolution technologies designed to allow judges and litigants to resolve issues and cases more accurately and conveniently.
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Alex Kreit, Associate Professor, Thomas Jefferson School of Law. Professor Kreit is a nationally recognized expert on controlled substances law, in particular the regulation and legalization of marijuana.
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Kari Hong, Assistant Professor, Boston College Law School. Professor Hong is an expert in immigration law, criminal law, and family law. Her scholarship analyzes how criminal convictions can lead to deportation and the intersection between family law and immigration law.
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Andrew Chongseh Kim, Assistant Professor, Concordia University School of Law. Professor Kim studies federal sentencing patterns revealing, inter alia, significant disparities in sentences defendants receive based on race, gender, and whether the defendant pleads guilty.
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Samuel R. Rubin, Executive Director, Federal Defender Services of Idaho.
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Wendy J. Olson, U.S. Attorney, District of Idaho.
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Jeffrey Thomason, Chief U.S. Probation Officer, District of Idaho.
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Tom Hiller, Perkins Coie law firm, Seattle, and former Federal Defender, Western District of Washington.
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Maria E. Andrade, Andrade Legal, Boise attorney specializing in immigration law.
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Amy Baron-Evans, Federal Public and Community Defenders.
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Melissa Winberg, Federal Defender Services of Idaho.
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Scott Bandy, Ada County deputy prosecuting attorney.
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Alan Trimming, Ada County public defender’s office.
Media members wishing to interview speakers should contact Becky Early at the U.S. Attorney’s Office at the contact information above. Some media availability will depend on individual speaker schedule.
The conference sessions will address sentencing reform, collateral consequences of criminal convictions and alternative courts. Attendees at the conference will be members of the legal and law enforcement communities, as well as policy makers and students.
The Conference on Criminal Justice Reform is hosted by Concordia University School of Law, the U.S. Attorney’s Office for the District of Idaho, and the Federal Defender Services of Idaho. The Conference is sponsored by Bublitz Law, P.C., the Idaho Association of Criminal Defense Lawyers, and Concordia University School of Law. For additional information, contact Anne Comstock, Concordia University School of Law, 208-639-5402.
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Manchester Man Charged with Additional Firearm OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a grand jury in New Haven returned an indictment today charging ROBERT V. GENTILE, 79, of Manchester, with new firearm offenses.
GENTILE, who has a pending indictment for the alleged possession and sale of a loaded .38 Colt Cobra revolver to an individual he knew to be a convicted felon, is charged in the new indictment with possession of three additional firearms and a silencer, each of which was seized from his Manchester residence during a search conducted by the FBI on May 2, 2016.
The indictment alleges that GENTILE, who has been convicted previously of multiple felony offenses, was in possession of a .22 caliber Browning semi-automatic pistol, a 9mm Walther semi-automatic pistol, a .380 caliber RPB Industries, M11-Al semi-automatic pistol, and an unregistered silencer.
The indictment charges GENTILE with one count of possession of a firearm by a previously convicted felon, and one count of possession of an unregistered silencer. Both charges carry a maximum term of imprisonment of 10 years.
According to court documents and statements made in court, GENTILE was on supervised release from a prior federal conviction at the time he is alleged to have committed these latest offenses. If he is found to have violated the terms and conditions of his supervised release, he faces additional penalties.
U.S. Attorney Daly stressed that an indictment 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 Federal Bureau of Investigation, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney John H. Durham.
Man Sentenced for Aggravated Identity TheftRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David Capp, announced that Cedric C. Shaw, 35, of South Holland, Illinois, was sentenced before District Court Senior Judge James T. Moody for aggravated identity theft; using counterfeit credit cards; illegal possession of device-making equipment; and committing an offense while on release.
Shaw was sentenced to 65 months’ imprisonment, 2 years of supervised release and ordered to pay $56,434.11 in restitution.
According to documents filed in this case, between April 2014 and June 2014, Shaw worked with two other co-defendants to commit credit card fraud. He purchased stolen credit card numbers from the Internet. The stolen credit card numbers were embossed on other credit cards. The defendant also placed his name and the other co-defendants’ names on the cards. They used the cards to purchase gift cards at major retailers in Indiana and Illinois. The gift cards were subsequently used to purchase items or services. Shaw was arrested and charged with credit card fraud and released on bond. While on bond, Shaw purchased 61 additional stolen credit card numbers in August 2014. He continued to make purchases with the stolen numbers in Michigan and Indiana. He was arrested a second time, and his bond was revoked.
This case was the result of an investigation by the United States Secret Service. This case was handled by Assistant United States Attorney Gary T. Bell.
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Local Man Arrested in $5 Million Investment ScamRead the Press Release
HOUSTON - A 75-year-old Houston man has been charged in a 10-count indictment alleging wire fraud and mail fraud in an investment fraud scheme involving more than 50 victims and $5 million, announced U.S. Attorney Kenneth Magidson.
Allan George Cooper was taken into custody this morning without incident and is set to make his initial appearance before U.S. Magistrate Judge Frances H. Stacy at 2:00 p.m. today.
A federal grand jury returned the indictment under seal May 18, 2016. The indictment, unsealed today upon Cooper's arrest, charges him with four counts of wire fraud and six counts of mail fraud.
According to the indictment, Cooper defrauded more than 50 investors since 2006 in an investment fraud scheme which took in at least $5 million of investor funds. His scheme involved convincing investors to invest their funds in his alleged investment programs via AG Cooper & Associates, according to the indictment. He allegedly offered investors a low-risk/high-return in investments such as short-term loans, gaming investments, interim construction loans and mortgage-backed notes.
The indictment alleges that on many occasions, investors would wire their funds from their personal account directly into Cooper's commercial banking account or would mail or hand deliver their investment checks to Cooper personally. Investors that were using their retirement funds would wire the funds via an intermediary, self-directed IRA custodian to Cooper's commercial bank account, according to the allegations.
Cooper allegedly prepared quarterly statements he mailed to the investors, making them believe their funds were being utilized in legitimate programs and were earning more than 11 percent in returns. The statements contained false and misleading representations concerning the value and performance of AG Cooper & Associates investment programs and returns, according to the indictment. Instead of investing the funds as promised, Cooper allegedly appropriated the money for his own use, including paying his personal expenses, paying employees, paying his credit card bills, paying other investors and transferring funds to other companies controlled by Cooper.
If convicted, he faces up to 20 years in federal prison and a possible $250,000 maximum fine on each charge.
The investigation was conducted by the FBI with assistance from the Texas State Securities Board. Assistant U.S. Attorney Suzanne Elmilady is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Liquor Wholesaler and Three Employees Indicted for $9 Million Scheme to Smuggle Liquor from Maryland to New YorkRead the Press Release
Baltimore, Maryland – A federal grand jury indicted Republic National Distribution Company, LLC, and its employees, Eugene Gerzsenyi, age 52, of Glen Burnie, Maryland; Jason Lockerman, age 38, of Bel Air, Maryland; and Lisa Robbins, age 55, of Woodbine, Maryland, today on charges arising from a scheme to defraud the state and city of New York, and registered New York liquor wholesalers. Specifically, the indictment alleges that the defendants transferred and moved liquor from Maryland, where the state excise tax rate for liquor was approximately $1.50 per gallon, to New York, where the state excise tax for liquor was approximately $7.44 per gallon, for retail sale.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Assistant Administrator for Field Operations Tom Crone, U.S. Treasury Department, Alcohol and Tobacco Tax and Trade Bureau (TTB); and Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to the indictment Republic National Distribution Company, LLC, (RNDC), which has offices in Jessup, Maryland, is a wholesale distributor of liquor in Maryland and elsewhere in the United States. Eugene Gerzsenyi was the Assistant Director of Operations for RNDC, Jason Lockerman was a salesman for RNDC and Lisa Robbins was an accounting manager. According to the indictment, any wholesaler transferring or distributing liquor for retail sale in Maryland, or in New York, was required to register with the state, and to provide monthly reports of the quantities of liquor transferred or distributed for retail sale in the state. RNDC was registered in Maryland and sold and delivered liquor to Cecil County retailers, including liquor stores, bars and restaurants.
The 23 count indictment alleges that from at least June 2009 through June 2012, a number of New York liquor retailers communicated with several retail liquor stores in Cecil County to order cases of wine and liquor. People working at the Cecil County retailers then passed the orders to RNDC though salesmen, including Lockerman. The indictment alleges that Lockerman and the other RNDC salesmen knew that the liquor was intended for retail sale in New York, and they transmitted those orders to RNDC to be filled. According to the indictment, RNDC delivered the ordered liquor to the Cecil County retailers, where it was held for the New York retailers. The New York retailers and their agents then picked up and transported the liquor to New York, where it was sold to customers without the New York excise taxes being paid.
The indictment alleges that RNDC, Robbins, Gerzsenyi, and Lockerman facilitated the payment to RNDC for liquor that was moved from RNDC, through the Cecil County retailers to the New York retailers and their agents. Specifically, RNDC submitted invoices to the Cecil County retailers that included the amounts owed to RNDC for the liquor that had been delivered to the New York retailers and their agents. The New York retailers paid the Cecil County retailers in cash, which the Cecil County retailers deposited into their business accounts. The Cecil County retailers then paid RNDC by check.
The indictment alleges that RNDC, the New York retailers, and the Maryland retailers, did not register as liquor wholesalers or distributors in New York; did not provide monthly reports of the quantities of liquor shipped into New York for retail sale; and did not pay New York excise taxes. In addition, RNDC allegedly filed false reports to the Maryland State Comptroller’s Office, indicating that all liquor sold to the Cecil County retailers was intended for resale in Maryland.
The indictment seeks forfeiture of all proceeds traceable to the scheme, including a money judgment of at least $9 million.
If convicted, the company and the individual defendants face a $250,000 fine, and the individual defendants also face a maximum sentence of 20 years in prison, for wire fraud conspiracy and each of four counts of wire fraud. If convicted of the money laundering counts, the indictment seeks forfeiture from RNDC of the funds involved in those offenses. No initial appearance has been scheduled for the defendants.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, TTB, and IRS-Criminal Investigation for their work in the investigation and thanked the New York State Department of Taxation and Finance Criminal Investigations Division for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorneys Tamera L. Fine and Richard C. Kay, who are prosecuting the case.
Lee's Summit Woman Indicted for Additional Embezzlement Schemes, Identity TheftRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that additional charges have been filed against a Lee’s Summit, Mo., woman who was previously indicted for embezzling more than $300,000 from her employer.
Patricia Webb, 43, of Lee’s Summit, was charged in a 24-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s superseding indictment replaces an indictment returned on March 31, 2016, and includes additional charges related to two more fraud schemes. Webb is in federal custody after having her bond revoked by the court for unrelated fraudulent conduct.
In addition to the scheme to embezzle approximately $302,183 from Black and Veatch, which was charged in the original indictment, today’s superseding indictment charges Webb with a scheme to embezzle $1.2 million from Garmin International, a previous employer, and a scheme to embezzle $7,385 from a healthcare benefits program for Garmin employees.
TriStar Embezzlement Scheme
According to today’s indictment, Webb stole the identity of another employee while she was working at Garmin in order to embezzle $7,385 from TriStar Benefit Administrators, the company which managed Garmin’s healthcare savings accounts.
Webb allegedly created a flexible spending account for another Garmin employee without his knowledge or consent. Webb allegedly submitted a request for reimbursement to TriStar on July 18, 2011. The request was for hospital treatment in the amount of $7,385, the indictment says, and the payment from TriStar was sent to Webb’s bank account.
Today’s indictment charges Webb with one count of wire fraud and one count of aggravated identity theft in relation to this embezzlement scheme.
Garmin Embezzlement Scheme
According to today’s indictment, Webb embezzled $1,224,410 million from Garmin while employed as a senior payroll specialist.
Webb was hired by Garmin on Feb. 28, 2011, and promoted to payroll team leader in August 2011. Webb allegedly caused Garmin to send 16 unauthorized payments to her own business bank account under the corporate name Beauty Within Me from Feb. 24, 2012, to May 30, 2014.
Today’s indictment charges Webb with 16 counts of wire fraud in relation to this embezzlement scheme.
Black and Veatch Embezzlement Scheme
According to today’s indictment, Webb embezzled $302,183 from Black and Veatch while employed as a global payroll manager. Webb was employed by Black and Veatch from January 2015 until March 4, 2016 and earned $90,000 per year.
The indictment alleges that Webb facilitated unauthorized wire transfers and Automated Clearing House transactions (fund transfers, such as direct deposits and business-to-business payments) from the company’s payroll account to her Beauty Within Me business bank account. To conceal her fraud, the indictment says, Webb manipulated the direct deposit information of Black and Veatch employees, who were either based overseas or deceased, to funnel company funds into her own bank account.
Webb allegedly embezzled approximately $302,183 from Black and Veatch in a series of six transfers that ranged from $8,588 to $92,862 over approximately seven months in 2015 and 2016.
During the scheme, according to court documents, Webb made $106,529 in withdrawals and expenditures at casinos; spent $8,986 on travel-related expenses (including airfare and hotels for trips to Bangkok, Thailand, Las Vegas, Nev., and Miami, Fla.; made $14,449 in payments to multiple higher education universities; and made $61,745 in ATM withdrawals.
On March 4, 2016, an accounts manager at Commerce Bank contacted Black and Veatch’s executive management regarding payroll deposits that seemed suspicious. On the same day, Webb was confronted about the suspicious transactions and was suspended without pay.
Today’s indictment charges Webb with six counts of wire fraud in relation to this embezzlement scheme.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI.
Lancaster Man Pleads Guilty to Hacking Apple and Google E-Mail Accounts Belonging to More Than 100 People, Mostly CelebritiesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Lancaster man pled guilty to felony computer hacking charges related to a phishing scheme that gave him illegal access to over 100 Apple and Google e-mail accounts, including those belonging to members of the entertainment industry in Los Angeles.
According to United States Attorney Peter Smith, Ryan Collins, age 36, Lancaster, Pennsylvania, pled guilty to a felony violation of the Computer Fraud and Abuse Act before Senior U.S. District Court Judge William W. Caldwell in Harrisburg. Collins pled guilty to one count of unauthorized access to a protected computer to obtain information. He faces up to five years’ imprisonment and $250,000 fine as a result of the guilty plea. No date was set for sentencing.
Collins admitted that from November 2012 until the beginning of September 2014, he engaged in a phishing scheme to obtain usernames and passwords for his victims. He sent e-mails to victims that appeared to be from Apple or Google and asked victims to provide their usernames and passwords. When the victims responded, Collins then had access to the victims’ e-mail accounts. After illegally accessing the e-mail accounts, Collins obtained personal information including nude photographs and videos. In some instances, Collins would use a software program to download the entire contents of the victims’ Apple iCloud backups.
The charge against Collins stems from the investigation into the leaks of photographs of numerous female celebrities in September 2014 known as “Celebgate.” However, investigators have not uncovered any evidence linking Collins to the actual leaks or that Collins shared or uploaded the information he obtained.
Many of Collins’ victims were members of the entertainment industry in Los Angeles. By illegally accessing the e-mail accounts, Collins accessed at least 50 iCloud accounts and 72 Gmail accounts, most of which belonged to female celebrities.
The case was investigated by the U.S. Attorney's Office for the Central District of California, the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Bruce Brandler, Chief of the Criminal Division.
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.
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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Indictment: Hillsboro Man Made $7.9 Million with Oil and Gas Fraud SchemeRead the Press Release
WICHITA, KAN. - A Hillsboro man was indicted Tuesday on charges of carrying out a $7.9 million oil and gas fraud scheme, Acting U.S. Attorney Tom Beall said.
David K. Lawson, 70, Hillsboro, Kan., is charged with one count of wire fraud. The indictment alleges the crime occurred while Lawson was the owner and director of Sonstone Trading, LLC.
Lawson made a deal for Sonstone to sell 90 barrels a day of crude oil to Parnon Gathering, Inc. Crude oil is unrefined oil produced from oil wells. What Sonstone provided to Parnon was in fact not crude oil. It was raw gas oil (RGO), which is a mixture of various refined petroleum products with a very low vapor pressure and a lesser commercial value.
For more information on oil and gas fraud from the Financial Fraud Enforcement Task Force, see www.stopfraud.gov/oil-gas-fwg.html
If convicted, Lawson faces a penalty of up to 20 years in federal prison, a fine up to $250,000 and restitution. The FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
OTHER GRAND JURY INDICTMENTS
Drew Alan Reed, 42, El Dorado, Kan., and Timothy Wayne Rosenbaum, Augusta, Kan., are charged with making false statements to a federally licensed firearms dealer when purchasing a gun at Cabela’s, 2447 N. Greenwich in Wichita. The crimes are alleged to have occurred Dec. 3, 2014.
If convicted, they face a penalty of up to five years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Jonathan C. Wolfinbarger, 54, Wakeeney, Kan., and Steven R. Hansen, 62, Fontana, Calif., are charged with one count of possession with intent to distribute methamphetamine and one count of using the U.S. mails in furtherance of drug trafficking. The crimes are alleged to have occurred in June and July 2015 in Trego County, Kan.
If convicted, they face a penalty of not less than 10 years in federal prison and a fine up to $10 million on the possession count, and up to five years and a fine up to $250,000 on the mail count. The U.S. Postal Inspection Service Investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Random Shane Smith, 36, Wichita, Kan., is charged in counts one and two with aggravated sexual abuse, in count three with production of child pornography, in count four with possessing child pornography; and in count five with tampering with a witness. The crimes are alleged to have occurred in 2014, 2015, and 2016 at McConnell Air Force Base.
Smith initially was charged in a criminal complaint filed May 13 in U.S. District Court in Wichita. The indictment adds to the charges in the complaint one count of possession of child pornography and one count of tampering with a witness.
Upon conviction counts one and two carry a penalty of up to life and a fine up to $250,000 on each count; count three carries a penalty of not less than 15 years and not more than 30 years and a fine up to $250,000; count four carries a penalty of up to 10 years and a fine up to $250,000; and count five carries a penalty of up to 20 years and a fine up to $250,000. The FBI and the Air Force OSI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Vernon J. Walker, 45, Wichita, Kan., and Tabitha A. Hanchett, 35, Wichita, Kan., are charged in count one with possession with intent to distribute methamphetamine. In addition, Walker is charged in count two with unlawful possession of a firearm in furtherance of drug trafficking, in count three with unlawful possession of a firearm following a felony conviction and in count four with unlawful possession of a firearm by a user of controlled substances. The crimes are alleged to have occurred Jan. 15, 2016, in Sedgwick County, Kan.
Upon conviction, count one carries a penalty of not less than five years and not more than 40 years and a fine up to $5 million; count two carries a penalty of not less than five years and a fine up to $250,000; and counts three and four carry a penalty of up to 10 years and a fine up to $250,000. The Wichita Police Department investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Rhonda J. Smith, 47, Wichita, Kan., is charged with two counts of money laundering to conceal funds from a bankruptcy trustee. The crimes are alleged to have occurred in 2013 in Sedgwick County, Kan.
If convicted, she faces a penalty of up to 20 years and a fine up to $500,000 on each count. The FBI investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Carlos Alejandro Casas-Pulido, 33, a citizen of Mexico, is charged with one count of unlawful possession of a firearm by a person unlawfully in the United States, and one count of unlawfully re-entering the United States after being deported. The crimes are alleged to have occurred Feb. 23 and Feb. 24, 2016, in Ford County, Kan.
If convicted, he faces a penalty of up 10 years in federal prison and a fine up to $250,000 on the firearm charge, and a penalty of up to two years and a fine up to $250,000 on the re-entry charge. Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Fidelina Morales-Escobar, 25, a citizen of Guatemala, is charged in count one with document fraud, in count two with making a false statement on an employment verification form, in count three with misusing a Social Security number, and in count four with aggravated identity theft. The crimes are alleged to have occurred in 2014 and 2016 in Harper County, Kan.
If convicted, she faces a penalty in count one of up to 10 years in federal prison and a fine up to $250,000; in counts two and three a penalty of up to five years and fine up to $250,000; and in count four a mandatory penalty of two years in prison consecutive to the underlying sentence and a fine up to $250,000. Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Angel Adan Prado-Neri, 36, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported. He was found May 3, 2016, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Nicholas A. Moore, 33, who is in custody in Lyon County, is charged with unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Jan. 5, 2016, in Emporia, Kan.
If convicted, he faces a penalty of up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indiana, Pa., Man Charged with Defrauding Social SecurityRead the Press Release
PITTSBURGH – An Indiana County resident has been indicted by a federal grand jury in Pittsburgh on a charge of theft of government property, United States Attorney David J. Hickton announced today.
The one-count indictment named Carmen Donofrio, 62, of Indiana, PA.
According to the indictment, from in and around July 2013, through in and around May 2015, Donofrio received approximately $16,577 in Supplemental Security Income to which he was not entitled because he had concealed a retirement account from the Social Security Administration.
The law provides for a maximum total sentence of up to ten years in prison, a fine of up to $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Social Security Administration, Office of Inspector General, conducted the investigation leading to the indictment this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.