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Tuesday 29 March 2016
Guatemalan Man Guilty of Illegally Reentering the United States After Previous DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE – United States Attorney Emily Gray Rice announced today that Victor Lopez, of Guatemala, pleaded guilty to illegally reentering the United States after having been previously deported.
On February 15, 2016, a New Hampshire State Police Trooper stopped a vehicle for speeding on I-93 in Windham. There were five individuals in the vehicle. Two of the individuals provided the Trooper with foreign ID cards, and the defendant and two others refused to provide identification and refused to answer any questions. The Trooper requested that the ICE ERO Deportation Officer respond to assist with the identification of those three individuals in the vehicle. Using a mobile identification unit, one of the Deportation Officers submitted the defendant’s fingerprints to the Department of Homeland Security’s Automated Biometric Identification System (IDENT) for comparison to databases of known fingerprints. IDENT indicated that the fingerprint impressions submitted were a match to those taken from the defendant, Victor Lopez, on the occasion of his previous deportation from the United States to Guatemala.
Following the receipt of this information, the Deportation Officer asked the defendant if he had any immigration documents that allowed him to be present in the U.S. to which he replied, “No.” A full set of digital fingerprint impressions were obtained from the defendant and again submitted to the Department of Homeland Security’s Automated Biometric Identification System (IDENT) which confirmed that the fingerprints were an exact match to prints taken from the defendant on the occasion of his previous deportation to Guatemala in 2012.
Mr. Lopez’s sentencing has been set for July 7, 2016, and he will again be deported after serving his sentence.
The case was investigated by the Department of Homeland Security and the New Hampshire State Police and is being prosecuted by Assistant U.S. Attorney Alfred Rubega.
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Fresno Police Officer Receives Award for His Contributions to the Mission of the Department of JusticeRead the Press Release
FRESNO, Calif. — United States Attorney Benjamin B. Wagner is pleased to announce the 2015 winner of the Eastern District of California Outstanding Investigator Award for the Fresno Division. This is one of four awards presented annually to a law enforcement agency and an officer in each of the Sacramento and Fresno divisions of the Eastern District of California to recognize outstanding collaboration between federal, state and local law enforcement in addressing public safety issues in this region.
The 2015 Fresno Division’s Outstanding Investigator Award goes to Fresno Police Detective David Fries for his work on cases of sex trafficking of minors. Detective Fries is deserving of recognition for his diligent, principled work. With cases that are difficult to build and involve reluctant and sometimes antagonistic victims, Det. Fries works tirelessly until the case is closed. His efforts have been essential to the successful prosecution of these cases.
U.S. Attorney Wagner stated: “It is my honor to recognize David Fries for the difficult and important work of bringing to justice those who prey upon some of the most vulnerable members of our community. It is in large part due to the hard work of Detective Fries and his colleagues that the Eastern District of California is seen as a national leader in the investigation and prosecution of the commercial exploitation of children. We thank him for his service.”
Recent cases that Detective Fries has investigated are:
Maurice Hunt: This case involved the trafficking of a 13-year-old girl. Hunt sexually assaulted, beat and trafficked this girl in Fresno and Bakersfield for 10 days. Hunt represented himself at trial and was convicted of sex trafficking of a minor, obstruction of justice, and witness tampering charges. His 50-year prison sentence was recently upheld on appeal.
Tyrell Richmond: This case involved three 16-year-old runaway girls trafficked by Richmond in Fresno and Visalia. They were required to turn over all the cash they earned and were not permitted to leave their motel room, other than to get ice. Richmond pleaded guilty on December 14, 2015, and is scheduled to be sentenced April 11, 2016, for sex trafficking of a minor.
Tryvell Powell: This case involved the sex trafficking of a 16-year-old girl in Fresno for about five months by Powell in which he forced the victim to earn a quota of $300 per day. Powell threatened to kill her and her unborn child if she left him. Powell pleaded guilty to enticement of a minor and was sentenced to 10 years and 10 months in prison.
Four Indicted for Meth Conspiracies in Jasper, Greene CountiesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that four individuals were indicted by a federal grand jury today in two separate and unrelated conspiracies to distribute methamphetamine in Jasper County, Mo., and in Greene County, Mo.
USA v. Soto-Garcia, et al.
Santiago Soto-Garcia, 23, Destiny O’Brien, 20, and Michael L. Gonzalez, also known as “Chavez,” 23, were charged in a three-count superseding indictment returned by a federal grand jury in Springfield, Mo. Today’s superseding indictment replaces an indictment returned by the grand jury on Aug. 25, 2015, and includes two additional charges.
According to court documents, law enforcement officers had received information that Soto-Garcia and O’Brien were multiple-pound distributors of methamphetamine. Members of the Ozark Drug Enforcement Team were conducting surveillance at a Joplin, Mo., residence when they saw a 2006 BMW driven by Soto-Garcia leaving the residence. The vehicle was stopped and officers saw two pistols on the floorboard by the feet of Gonzalez, a passenger in the rear seat. O’Brien was a passenger in the front seat.
All of the defendants were told to get out of the car. Both Soto-Garcia and O’Brien were arrested for resisting arrest after struggling with officers. A K-9 alerted to the presence of narcotics in the BMW. Officers found a package that contained 501 grams of methamphetamine in O’Brien’s purse, and found approximately seven grams of methamphetamine on O’Brien.
Today’s indictment alleges that Soto-Garcia, O’Brien and Gonzalez participated in a conspiracy to distribute methamphetamine in Jasper County from Nov. 1, 2013, to Aug. 11, 2015. They are also charged together, as in the original indictment, in one count of possessing methamphetamine with the intent to distribute.
Soto-Garcia, O’Brien and Gonzalez are also charged together in one count of aiding and abetting each other to possess firearms in furtherance of the drug-trafficking conspiracy. They allegedly possessed a Hi-Point .40-caliber firearm and a Kel-Tec .223-caliber firearm on Aug. 11, 2015.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert and Special Assistant U.S. Attorney Jody Larison. It was investigated by the Drug Enforcement Administration, the FBI, the Missouri State Highway Patrol, the Ozark Drug Enforcement Team, the Joplin, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
USA v. Nemecek
Caleb E. Nemecek, 25, of Chadwick, Mo., was charged in a four-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Nemecek participated in a conspiracy to distribute methamphetamine in Greene County, Mo., and Jasper County, Mo., from Nov. 7, 2014, to Nov. 17, 2015. The indictment also charges Nemecek with two counts of possessing methamphetamine with the intent to distribute.
Nemecek is also charged with possessing a firearm in furtherance of the drug-trafficking conspiracy. Nemecek allegedly possessed a Sig Sauer handgun on Nov. 7, 2014.
This case is being prosecuted by Special Assistant U.S. Attorney Jody Larison. It was investigated by the Missouri State Highway Patrol, the Springfield, Mo., Police Department; the Oklahoma State Highway Patrol; the Greene County, Mo., Sheriff’s Department; the Joplin, Mo., Police Department; the Ozarks Drug Enforcement Team; and the Drug Enforcement Administration.
Dickinson cautioned that the charges contained in these indictments 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.
Former Pastor of Louisville Parish Sentenced to 33 Months for Viewing Child Pornography over the InternetRead the Press Release
LOUISVILLE, Ky. – The former pastor of a Louisville, Kentucky, parish, Stephen A. Pohl, 57, was sentenced today in United States District Court, by United States District Judge David J. Hale, to 33 months in prison followed by a life term of Supervised Release for violating federal child exploitation laws, announced United States Attorney John E. Kuhn, Jr. There is no parole in the federal criminal justice system.
“Viewing child pornography over the internet is a crime with untold and horrific consequences for these defenseless child victims,” said United States Attorney John Kuhn. “Protecting children is a national priority of the Department of Justice. My Office will continue to prosecute those who harm the most vulnerable and those who perpetuate these crimes through their internet devices.”
Pohl pleaded guilty to a single charge of knowingly accessing, via the Internet, with intent to view material that contained images of child pornography between January and August 2015. Under federal law, child pornography involves visual depictions of minors under the age of 18 engaged in sexually explicit conduct. Pohl was initially charged with the same offense by criminal complaint on August 21, 2015. The complaint was filed after law enforcement officials executed two federal search warrants on August 12, 2015, in the work and living areas used by Pohl in the parish office and rectory of St. Margaret Mary Catholic Community, located at 7813 Shelbyville Road, in Louisville, Kentucky.
The investigation began after a child told his mother that Pohl had taken pictures of him that made him feel “weird.” When the child’s parents confronted Pohl about the pictures of their son, they saw similar pictures of another child and reported the matter to law enforcement. Law enforcement officials obtained the search warrants based on the inappropriate images. It is important to note that no child pornography images of Saint Margaret Mary school children were found on the digital devices seized and examined as a result of the search warrants. All child pornography evidence and the charge in this case relate to Pohl’s online searches and viewing.
Law enforcement officials arrested Pohl in Indian Rocks Beach, Florida, on Friday evening, August 21, 2015. Pohl was then held at the Pinellas County Jail until his transfer to the custody of the United States Marshals Service. He appeared in United States District Court for the Western District of Kentucky on September 2, 2015. After pleading guilty to the charge in January 2016, Pohl surrendered to the United States Marshals Service where he will remain until designation by the Bureau of Prisons.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The Federal Bureau of Investigation in conjunction with Louisville Metro Police Department’s Crimes Against Children Unit conducted the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Navy Noncommissioned Officer Sentenced to 24 Months in Prison for Accepting Bribes While Serving in AfghanistanRead the Press Release
WASHINGTON – A former Navy noncommissioned officer was sentenced today to 24 months in prison for accepting approximately $25,000 in cash bribes from vendors while he served in Afghanistan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Christopher P. Canova of the Northern District of Florida, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko, Director Frank Robey of the U.S. Army Criminal Investigation Command (CID) Major Procurement Fraud Unit, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Brigadier General Keith M. Givens of the Air Force Office of Special Investigations (OSI) made the announcement.
Donald P. Bunch, 46, of Pace, Florida, was sentenced by Senior U.S. District Judge Roger Vinson of the Northern District of Florida, who also ordered Bunch to pay a $5,000 fine and to forfeit $25,000. Bunch pleaded guilty on Sept. 18, 2015, to a one-count information charging him with accepting bribes.
According to the plea agreement, from February 2009 to August 2009, Bunch worked as a U.S. Navy E8 senior chief at the Humanitarian Assistance Yard (HA Yard) at Bagram Airfield in Afghanistan. The HA Yard purchased supplies from local Afghan vendors for use as part of the Commander’s Emergency Response Program, which enabled U.S. military commanders to respond to urgent humanitarian relief requirements in Afghanistan, Bunch admitted.
Bunch was responsible for replenishing food and supplies at the HA Yard and for selecting vendors from a pre-determined list to provide the necessary items, according to his plea. In connection with his guilty plea, Bunch admitted that his predecessor had instructed him to rotate among the vendors.
According to admissions made in connection with his plea agreement, certain Afghan vendors offered money for the purpose of influencing their contracts. Bunch admitted that he accepted a total of approximately $25,000 in bribes from the vendors and as a result, he secured on their behalf more frequent and lucrative contracts. Bunch sent greeting cards stuffed with proceeds of the bribes to his wife and used the money to pay for the construction of a new home.
The FBI, SIGAR, CID, DCIS and OSI investigated the case. Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David L. Goldberg of the Northern District of Florida prosecuted the case.
Former Navy Noncommissioned Officer Sentenced to 24 Months in Prison for Accepting Bribes While Serving in AfghanistanRead the Press Release
A former Navy noncommissioned officer was sentenced today to 24 months in prison for accepting approximately $25,000 in cash bribes from vendors while he served in Afghanistan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Christopher P. Canova of the Northern District of Florida, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko, Director Frank Robey of the U.S. Army Criminal Investigation Command (CID) Major Procurement Fraud Unit, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Brigadier General Keith M. Givens of the Air Force Office of Special Investigations (OSI) made the announcement.
Donald P. Bunch, 46, of Pace, Florida, was sentenced by Senior U.S. District Judge Roger Vinson of the Northern District of Florida, who also ordered Bunch to pay a $5,000 fine and to forfeit $25,000. Bunch pleaded guilty on Sept. 18, 2015, to a one-count information charging him with accepting bribes.
According to the plea agreement, from February 2009 to August 2009, Bunch worked as a U.S. Navy E8 senior chief at the Humanitarian Assistance Yard (HA Yard) at Bagram Airfield in Afghanistan. The HA Yard purchased supplies from local Afghan vendors for use as part of the Commander’s Emergency Response Program, which enabled U.S. military commanders to respond to urgent humanitarian relief requirements in Afghanistan, Bunch admitted.
Bunch was responsible for replenishing food and supplies at the HA Yard and for selecting vendors from a pre-determined list to provide the necessary items, according to his plea. In connection with his guilty plea, Bunch admitted that his predecessor had instructed him to rotate among the vendors.
According to admissions made in connection with his plea agreement, certain Afghan vendors offered money for the purpose of influencing their contracts. Bunch admitted that he accepted a total of approximately $25,000 in bribes from the vendors and as a result, he secured on their behalf more frequent and lucrative contracts. Bunch sent greeting cards stuffed with proceeds of the bribes to his wife and used the money to pay for the construction of a new home.
The FBI, SIGAR, CID, DCIS and OSI investigated the case. Trial Attorney Daniel P. Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David L. Goldberg of the Northern District of Florida prosecuted the case.
Former Concord Resident Sentenced to over Three Years in Prison for Religious Hate CrimeRead the Press Release
OAKLAND - Hugo John Scherzberg was sentenced to 41 months in prison yesterday for his religious hate crime conviction in relation to the March 20, 2010, fire at a church in Pittsburg, Calif., announced Acting United States Attorney Brian J. Stretch and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Jill A. Snyder.
Scherzberg, 48, formerly of Concord, admitted in his plea agreement to using gasoline and a lighter to set fire to the Church of the Living God, Christian Workers for Fellowship, Temple #21 (Workers Fellowship) located on Harbor Street in Pittsburg. Scherzberg admitted he set fire to the church because he felt God had dealt him a poor hand in life. He also admitted he chose the Pittsburg church in particular because it had the words “Living God” in its name and it was “readily accessible.” At the time of the fire, a separate congregation, Shiloh Missionary Baptist Church, also rented the church building for religious services. Scherzberg admitted that his actions caused significant damage to the entire church building and property within the building, and that almost the entire church building required reconstruction. Losses totaled more than $490,000, according to insurance claims.
Scherzberg was indicted by a federal grand jury on March 5, 2015, on one count of burning the church building because of its religious character, in violation of 18 U.S.C. §§ 247(a)(1) and (d)(3), and on a second count of arson of a building used in activities affecting interstate commerce, in violation of 18 U.S.C. § 844(i). Scherzberg pleaded guilty to the first charge on January 13, 2016.
Scherzberg has been detained since his arrest on November 23, 2014, for setting fire to another church, the Pilgrim Community Church of San Francisco. He was prosecuted, convicted, and sentenced in state court to an 18-month jail term for that incident before being taken into custody by federal authorities and making his first federal court appearance on May 11, 2015. He will begin serving his sentence immediately .
The Honorable Haywood S. Gilliam, Jr., U.S. District Judge, in Oakland ordered the sentence. In addition to the term of imprisonment, Judge Gillium ordered the defendant to 3 years supervised release and $491,940.99 in restitution. In ordering the sentence, Judge Gilliam noted, among other things, that the defendant’s actions likely created fear and terror in the community, and that this sentence reflects the seriousness of the crime.
Assistant U.S. Attorney Andrew S. Huang prosecuted this case with the assistance of Vanessa Quant, Trina Khadoo, and Stephanie Mitchell. The Civil Rights Division, U.S. Department of Justice, also assisted in the prosecution. The prosecution is the result of an investigation by the ATF and the Contra Costa County Fire Investigation Unit, with assistance from the San Francisco Fire Department, San Francisco Police Department, and San Francisco District Attorney’s Office.
FnD Gang Members Sentenced for Racketeering, Narcotics, and Violent Crimes, including the Mother’s Day ShootingRead the Press Release
U.S. Attorney Kenneth A. Polite announced that four gang members from the Frenchmen/Derbigny gang, or “FnD,” were sentenced today for charges related to racketeering, narcotics, and crimes of violence. Among those violent crimes was the shooting of a second-line parade on Mother’s Day, May 12, 2013, in which twenty people suffered gunshot-related injuries.
The four defendants were all brothers and members of FnD, a gang that operated in the Seventh Ward of New Orleans with its hub at Frenchmen and North Derbigny Streets. The defendants included the leader, TRAVIS SCOTT, a/k/a “Trap,” a/k/a “Slim,” age 31, SHAWN SCOTT, a/k/a “Shizzle,” age 27; STANLEY SCOTT, a/k/a “Stizzle,” age 24; and AKEIN SCOTT, a/k/a “Keemy,” age 22. SHAWN SCOTT, STANLEY SCOTT, and AKEIN SCOTT all pled guilty on September 9, 2015. TRAVIS SCOTT pled guilty on October 13, 2015.
U.S. District Judge Ivan L.R. Lemelle sentenced TRAVIS and AKEIN SCOTT to life imprisonment plus 10 years consecutive, to be followed by 5 years of supervised release. SHAWN and STANLEY SCOTT were each sentenced to 40 years of imprisonment with credit for time served, to be followed by 5 years of supervised release. Restitution to the victims will be determined at a later date.
According to court documents, the FnD gang was an enterprise engaged in racketeering under federal law. TRAVIS SCOTT, AKEIN SCOTT, SHAWN SCOTT, and STANLEY SCOTT, as members of this gang, conspired to commit numerous overt acts in furtherance of the gang’s activities. Gang members sold illegal drugs, such as heroin and crack cocaine, and they committed acts of violence, including shootings. FnD members often sold drugs in the Frenchmen Meat Market, a convenience store located at the corner of Frenchmen and North Derbigny Streets. FnD members used intimidation, violence, and threats of violence to maintain the gang’s control over turf that extended from Elysian Fields Avenue, North Johnson Street, the I-10 Interstate Highway, St. Anthony Street, and North Claiborne Avenue.
Pursuant to plea agreements, TRAVIS SCOTT pled guilty to four counts in the Third Superseding Indictment, including one shooting. STANLEY SCOTT pled guilty to six counts, including perpetrating three shootings. SHAWN SCOTT pled guilty to five counts, which included two shootings. AKEIN SCOTT pled guilty to eight counts of the Third Superseding Indictment, which included his perpetrating five shootings in New Orleans. AKEIN SCOTT and SHAWN SCOTT pled guilty to the Mother’s Day shooting that occurred on May 12, 2013. All four defendants pleaded guilty to racketeering conspiracy and conspiracy to distribute over one kilogram of heroin.
Additional FnD members JEREMIAH JACKSON, GRALEN BROWN, BRIAN BENSON, and RICHMOND SMITH have previously pled guilty to gun and drug-related charges and are awaiting sentencing. CRYSTAL SCOTT pled guilty to drug-related charges and was previously sentenced to 120 months in prison, followed by 5 years of supervised release and a $100 special assessment.
This prosecution was the product of the continued coordinated effort of the federal and state law enforcement authorities within the Multi-Agency Gang Unit (“MAG”). As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the MAG Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF): Federal Bureau of Investigation (FBI); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana. Federal and local authorities also utilized tips through the Crimestoppers Program in the successful investigation of these crimes.
U.S. Attorney Polite praised the work of the ATF as part of the MAG Unit in investigating this matter. Assistant United States Attorneys Matthew Payne and Shirin Hakimzadeh, along with former Special Assistant United States Attorney Brian Ebarb, who was assigned from the Orleans Parish District Attorney’s Office were in charge of the prosecution.
Federal inmate charged with possession of a controlled substanceRead the Press Release
A federal grand jury returned a one-count indictment charging Terrance Bonner, 44, with possession of a prohibited object by a federal inmate, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
The indictment alleges that on or about October 5, 2014, Bonner, an inmate in the Elkton Federal Correctional Institution, possessed AB-FUBINACA, a controlled substance.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Elkton Federal Correctional Institution. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Federal Court Permanently Bars Detroit-Area Tax Preparer from Preparing Federal Tax ReturnsRead the Press Release
The U.S. District Court for the Eastern District of Michigan has issued an order permanently barring Mia Jordan, a Southfield, Michigan, tax preparer, from preparing federal tax returns for others, the Justice Department announced today. Jordan consented to the civil injunction order.
According to the complaint, Jordan operated a business that provided tax return preparation support services under the name MIA-FILE as recently as 2014. The complaint states that Jordan, through MIA-FILE, prepared approximately 371 tax returns for tax processing years 2013 and 2014. The Internal Revenue Service (IRS) closed examinations on 94 of the tax returns prepared by MIA-FILE, and 87, or 95 percent, of those examined returns resulted in additional tax assessments, the complaint alleges. Many of the returns that Jordan prepared for customers allegedly contained false deductions and credits, including inflated deductions for charitable contributions, home mortgage interest and real estate taxes. The complaint also states that the returns manipulated taxpayer data for the purposes of claiming the Earned Income Tax Credit, for which the customer would otherwise be ineligible.
The United States alleged in the complaint that the actual purpose of MIA-FILE was to permit Jordan’s cousin, Nataki Davis, formerly known as Nataki Barnes, to continue to prepare tax returns herself and together with Jordan, despite an IRS investigation into Davis’s own abusive tax return preparation practices. In June 2013, Davis was enjoined for a period of five years from preparing tax returns either individually or through any individual or entity working in concert with her. On Jan. 8, 2016, the U.S. District Court for the Eastern District of Michigan entered an agreed injunction order permanently barring Davis from preparing returns.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Duenweg Sex Offender Pleads Guilty to Child Porn, Faces at Least 15 Years in PrisonRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a convicted sex offender in Duenweg, Mo., pleaded guilty in federal court today to receiving child pornography over the Internet.
Paul L. Sipeer, 65, of Duenweg, pleaded guilty before U.S. District Judge M. Douglas Harpool to receiving child pornography over the Internet. Sipeer has been in federal custody without bond since his arrest in January 2016.
Sipeer is a registered sex offender with a 1992 conviction for sexual abuse in the first degree involving the physical harm of a 7-year-old child. According to court documents, Sipeer admitted that he sexually molested at least three other children besides the victim of the crime resulting in his conviction. Sipeer also admitted that he began accessing child pornography within one year of his release from prison in 1994.
By pleading guilty today, Sipeer admitted that he received child pornography between July 1, 2012, and Jan. 26, 2016.
According to court documents, Homeland Security Investigations (HSI) agents learned that Sipeer was conducting online money transfers between $10 and $20 several times a month during the summer of 2015 to individuals in the Philippines. Money transfers, conducted through Western Union and MoneyGram, are often used to send funds to pay for sexual performances by children in the Philippines. In prior investigations conducted by HSI, small amounts of money, typically between $5 and $100, are often sent to individuals in the Philippines. Often the senders would send additional payments for continued and/or repeat performances.
Upon further investigation, agents learned that Sipeer had been making money transfers to various individuals in the Philippines since January 2013, in amounts ranging up to $480.
Law enforcement officers contacted Sipeer at his residence on Jan. 26, 2016. Sipeer told the officers he sent money to the Philippines to pay for “sex shows.” Sipeer said he has sent approximately $1,200 to the Philippines in total. Sipeer also confessed that he had been actively downloading images depicting child pornography from the Internet. Several images of child pornography, depicting children younger than 10 years old, were located on Sipeer’s computer.
Under federal statutes, Sipeer is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cyber Crime Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
District Man Pleads Guilty in Fraud Schemes Targeting Tenants at Apartment Complex He ManagedRead the Press Release
WASHINGTON – Tyi Michael Tunstall, 30, of Washington, D.C., has pled guilty to charges stemming from various schemes in which he used personal identifying information from others to steal more than $75,000, announced U.S. Attorney Channing D. Phillips and James M. Murray, Special Agent in Charge, Washington Field Office, U.S. Secret Service.
At the time of these offenses, Tunstall was on probation in an earlier fraud case. He used some of the proceeds of these schemes to pay his court-ordered restitution in the earlier case.
Tunstall pled guilty on March 28, 2016 to wire fraud and obstruction of justice. He is to be sentenced June 13, 2016 by the Honorable James E. Boasberg of the U.S. District Court for the District of Columbia. Under federal sentencing guidelines, he faces a likely sentence of 33 to 41 months in prison. He also will be required to pay restitution and a forfeiture money judgment.
Tunstall previously pled guilty in September 2013 to a charge of mail fraud. He was sentenced in March 2014 in the U.S. District Court for the District of Columbia to five years of probation, with special conditions that he complete six months of home confinement to be followed by 20 weekends in jail. He also was ordered to pay $61,543 in restitution in that case.
According to a statement of offense, signed by the defendant as well as the government, Tunstall worked from July 2014 to July 2015 for a company that managed a senior citizens’ apartment complex in Washington, D.C., first as an office assistant and later as the complex’s manager. From Sept. 8 through Oct. 27, 2015, he worked at a staffing agency that assigned him to a call center for three credit unions. He used both workplaces as a means to carry out his schemes, as outlined below:
Identity Theft and Fraud at the Apartment Complex:
In one scheme, Tunstall stole the personal identifying information of an 83-year-old resident of the complex and used the information to open multiple accounts at financial institutions from March 2015 to October 2015. He used one card multiple times, causing American Express to incur $1,785 in losses. Tunstall also placed orders on a credit account at Montgomery Ward, causing $225 in losses.
In a separate scheme, Tunstall diverted to himself at least 22 checks and money orders from tenants to the apartment complex, totaling $8,723. These checks and money orders were intended to be used for rent, cable and community room rental. Tunstall added his name to the payee and/or memo line of the checks and money orders and kept them for his personal use.
Tunstall also created 18 additional counterfeit checks, using the names of the apartment complex and two other persons whose information he obtained. Some of these checks were returned, but Tunstall eventually received $1,640.
Identity Theft and Fraud at the Call Center:
While working at the credit union call center, Tunstall accessed a credit union member’s bank accounts. He created a counterfeit check using this account information in the amount of $61,525 and deposited it into his personal bank account. He also transferred $20,000 of the victim’s money to an account that he controlled and that he had set up in the name of the 83-year-old victim.
Tunstall used $52,512 of the proceeds from these schemes to pay off his restitution balance in the earlier case at the U.S. District Court for the District of Columbia.
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In addition to these acts, while he was on probation, Tunstall made a series of false representations to his probation officer and submitted forged documents to the Court, regarding his employment and other issues. This led to a probation revocation hearing on Oct. 29, 2015. At that time, Tunstall told the Court that he was able to pay the balance of his restitution because his grandmother had provided the money. In fact, as Tunstall well knew, he used the money that he had fraudulently obtained from others to pay off the restitution balance. His probation was revoked after the hearing and he has remained in custody ever since.
In announcing the plea, U.S. Attorney Phillips and Special Agent in Charge Murray commended the work of those who investigated the case from the Secret Service’s Washington Field Office. They also expressed appreciation for the assistance provided by the Montgomery County, Md. Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Criminal Investigator Nicole Hinson and Assistant U.S. Attorney John Marston. Finally, they acknowledged the work of Assistant U.S. Attorney Peter C. Lallas, who is prosecuting the matter.
Defendant sentenced to 21 months in prison for reentering the United States illegallyRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a defendant was sentenced Monday to 21 months in prison on one count of re-entry of a removed alien.
Jose Juan Rodriguez-Guarda, 32, of Chiapas, Mexico, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of re-entry of a removed alien. According to the October 27, 2015 guilty plea, Rodriguez-Guarda had illegally re-entered the United States multiple times since 2009 after being removed. In June 2012, Rodriguez-Guarda was removed as an aggravated felon from the United States after being convicted of attempted human smuggling in Arizona in 2011.
Rodriguez-Guarda was arrested in Virginia on January 25, 2013, two days after he had kidnapped his girlfriend at knife point in Bossier Parish and took her to Virginia where he already had their 7-year-old daughter. The defendant pleaded guilty to simple kidnapping in Bossier Parish District Court on June 22, 2015.
Homeland Security Investigations-Immigrations and Customs Enforcement and the Bossier City Police Department conducted the investigation. Assistant U.S. Attorney Michael O’Mara prosecuted the case.
Defendant sentenced to 13 months in prison for reentering the United States multiple times illegallyRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Mexican national was sentenced Monday to 13 months in prison on one count of re-entry of a removed alien.
Saul Abundis Cordova, 39, of Ocampo, Mexico, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of re-entry of a removed alien. According to evidence presented at the November 17, 2016, guilty plea, Shreveport Police arrested Cordova on January 15, 2015, for driving while intoxicated, and on July 22, 2015, he was convicted of driving while intoxicated for the fourth time. Cordova had been removed from the United States to Mexico on at least three previous occasions in 2008, 2009 and 2014. The removal on June 12, 2014, occurred after Cordova was convicted of felony possession of Schedule II controlled substances, cocaine, which resulted in a sentencing enhancement of a convicted felon.
Homeland Security Investigations-Immigrations and Customs Enforcement and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Michael O’Mara prosecuted the case.
Defendant sentenced for contraband cigarette conspiracyRead the Press Release
HUNTINGTON, W. Va. - Mr. Fodie Koita entered a guilty plea and was sentenced today for conspiring to transport contraband cigarettes, announced Acting United States Attorney Carol Casto. Koita, who has been incarcerated since September 23, 2015, was sentenced to credit for time served and placed on supervised release for three years. Upon discharge, Koita is being transferred to Indiana for additional fraud charges that are pending there, along with possible deportation proceedings through the Department of Homeland Security.
Koita, an immigrant from Mali, along with Mr. Yahya Willia, drove from New York City to Huntington to purchase contraband cigarettes in 2010. These cigarettes were purchased from Smokin’ Aces, a storefront that purported to be a discount tobacco store. The Smokin’ Aces store was actually an undercover storefront staffed by law enforcement agents posing as illegal brokers of contraband, including contraband cigarettes. The Smokin’ Aces investigation began in May 2010 and was concluded in March 2011. The contraband cigarettes did not have a tax stamp, meaning the conspirators purchased the cigarettes at a lower price than if they were taxed by the state of West Virginia. When the cigarettes were transported from West Virginia and resold in other states where cigarette taxes are higher, the conspiracy members received a greater profit from the illegal sales. In December 2010, Koita and Willia purchased 2,340 cartons of contraband cigarettes, transported the contraband from West Virginia to New York, and resold the cigarettes in New York. Willia was convicted in 2011 and subsequently deported to Nigeria by the Department of Homeland Security.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Huntington Police Department, and the West Virginia State Police conducted the investigation. Assistant United States Attorneys Erik S. Goes and Meredith George Thomas handled the prosecution. Chief United States District Judge Robert C. Chambers imposed the sentence.
This case was brought as the result of a significant undercover investigation that targeted criminal activity in the Huntington area, including illegal drugs and firearms crimes. The operation led to a substantial number of prosecutions, and was made public in March 2011 after a federal grand jury returned over 50 indictments.
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Cleveland man sentenced to three years in prison for tax fraudRead the Press Release
A Cleveland man was sentenced to three years in prison for fraudulently claiming nearly $140,000 in tax refunds, said Acting U.S. Attorney Carole S. Rendon and Kathy Enstrom, Special Agent in Charge, IRS-Criminal Investigation, Cincinnati Field Office.
Gerald D. Dotson, 45, previously pleaded guilty to three counts of making false claims.
Dotson filed a series of false tax returns during 2011, 2012 and 2013 claiming falsified wage income and tax credit information for individuals resulting in at least $139,675 in fraudulent refunds.
"As the tax-filing deadline approaches, this sentence should serve as a reminder that all of us are obligated to pay our fair share and not defraud the government," Rendon said.
“The nation’s tax system should not be seen as a free standing ATM for criminals to ransack at will for personal enrichment,” Enstrom said. “Honest taxpayers are the real victims with these schemes and IRS-CI will ensure those responsible are held accountable for their actions.”
Dotson was ordered to pay $139,675 in restitution.
The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump following an investigation by the Internal Revenue Service – Criminal Investigation.
Cleveland man faces additonal charge related to sex trafficking of childrenRead the Press Release
A grand jury returned a three-count superseding indictment charging Ronnie L. Pratt, Jr., 20, with three counts of sex trafficking children, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Pratt utilized the website backpage.com to advertise and traffic three minor girls, one of whom was under the age of 14 at the conduct began, according to court documents.
The conduct took place between July and November 2015, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorneys Bridget M. Brennan and Carmen Henderson following an investigation by the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Chicago Businessman Pleads Guilty to Grant Fraud SchemeRead the Press Release
Springfield, Ill. – A Chicago businessman today pled guilty to fraudulently inducing two separate state agencies to issue separate, but nearly identical, grants to his not-for-profit entity. George E. Smith, 66, owned and operated Diversified Behavioral Comprehensive Care, a not-for-profit entity described as offering comprehensive and holistic social services and mental health care to youth and their families. In addition, Smith owned and operated three for-profit entities: Diversified Behavioral Services, Inc., Management Planning Institute, Inc., and the Institute for Positive Child and Family Development.
From 2005 through 2011, Smith, through both his for-profit and not-for profit entities, received millions of dollars in funding from agencies of the state of Illinois, including the Illinois Department of Human Services, the Illinois Department of Children and Family Services, and the Illinois State Board of Education.
At today’s hearing, Smith admitted that he induced DCFS and ISBE to issue two separate, but nearly identical grants to Diversified Behavior Comprehensive Care: a $450,000 grant awarded by DCFS on Sept. 2, 2008, under the Students at Risk Program; and a $342,000 grant awarded by the State Board of Education on Sept. 8, 2008. According to the terms of the grants, awarded within 10 days of each other, both provided for services to be provided to the same at-risk population in the Chicago area during fiscal year 2009. The populations served, sources of referral, services to be provided, and the goals for each grant were essentially identical. Neither DCFS nor ISBE were aware of the issuance of an identical grant by the other state agency. Smith then converted the duplicate funding to his personal and business use.
In addition, Smith admitted that as part of the scheme, in February 2009, he caused the Department of Human Services to award a third grant of $200,000 to DBCC to provide community services relating to the prevention, intervention, treatment and rehabilitation of alcohol and other drug abuse and dependency. Smith admitted that he submitted and caused to be submitted false and fraudulent documentation to DHS falsely representing the amount of community services DBCC actually provided under the DHS grant and fraudulently caused DHS to pay DBCC a total of $138,901.
Smith appeared today before U.S. Magistrate Judge Tom Schanzle-Haskins to enter his guilty pleas to two counts of mail fraud and one count of money laundering. Sentencing has been scheduled for July 25, 2016.
According to terms of the plea agreement, the government has agreed to recommend a sentence at the low end of the advisory sentencing guidelines range. The government and the defendant agree that the amount of restitution owed to the State of Illinois as a result of the mail fraud offense is between $400,000 and $550,000. Smith was allowed to remain on bond pending sentencing.
Assistant U.S. Attorney Timothy A. Bass is prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The investigation was conducted by the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG) and the Internal Revenue Service, Criminal Investigations Division.
California Man Sentenced to Federal Prison for Heroin Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Edwin Rodriguez, 34, of Bell Gardens, Calif., was sentenced today in federal court in Albuquerque, N.M., to 57 months in prison for his heroin trafficking conviction. Rodriguez will be on supervised release for three years after he completes his prison sentence.
Rodriguez was arrested on a criminal complaint charging him with a heroin trafficking offense after the DEA seized 2.3 kilograms (5.07 pounds) of heroin from him during an interdiction investigation at the Greyhound Bus Station in Albuquerque on Feb. 4, 2015. The heroin was concealed in a false compartment in Rodriguez’s baggage. Rodriguez was indicted on Feb. 25, 2015, and charged with possession of heroin with intent to distribute.
On Dec. 16, 2015, Rodriguez pled guilty to possession of heroin with intent to distribute and admitted that on Feb. 4, 2015, he possessed heroin, which he wrapped in bundles and concealed in his suitcase while traveling through Albuquerque on the Greyhound Bus.
This case was investigated by the Albuquerque office of the DEA and was prosecuted by Assistant U.S. Attorney Shaheen P. Torgoley.
This case was prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Bronx Man Arrested for Sexual Exploitation, Enticement, Extortion, and Child Pornography CrimesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriquez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of KELVIN ACOSTA on five counts stemming from his sexual exploitation and enticement of minors, his possession and receipt of child pornography, and his extortion of victims for money and child pornography.
Manhattan U.S. Attorney Preet Bharara said: “Kelvin Acosta is charged with preying on children in the way parents fear most. He allegedly messaged teenage girls on Facebook, tricked them into providing their email addresses, hacked their email accounts, found sensitive images and videos of them, and then threatened to send these videos and images to their friends and family – unless they created child pornography for him. Together with our partners at the FBI, we are committed to protecting children from those who seek to entice, exploit, or extort them.”
FBI Assistant Director-in-Charge Diego Rodriquez said: “As alleged, Kelvin Acosta enticed and extorted minors for compromising photos and video chats. We can’t charge Mr. Acosta for taking advantage of the trust of impressionable young girls, but we can charge him with enticement, extortion and being in possession of child pornography. The FBI will continue to investigate and bring to justice those who exploit our children.”
According to the Complaint[1]:
In 2015, ACOSTA communicated through Facebook and other means with minors in order to induce them to produce and provide child pornography for his benefit. ACOSTA manipulated his victims into providing information about their online accounts that enabled him to take over those accounts and extort his victims.
For example, ACOSTA victimized a 13-year-old girl by contacting her over Facebook and telling the victim that he could get her a job at Barnes & Noble if she provided him with her email address and phone number. ACOSTA then told her that he needed a code that was sent to her phone via text message. The victim did not know that ACOSTA had accessed her email account and used the “forgot password” function, prompting the email provider to send a text message to the phone number on file to reset the password. Once ACOSTA received the code from this victim, he told her that he had hacked her account; he said he is a hacker who does this all the time. He told her that he would send her friends and family the nude photographs in her email account unless she sent him additional child pornography. Faced with this threat of humiliation, she complied. ACOSTA directed the victim to video chat him, to undress, and to engage in sexually explicit conduct. ACOSTA told the victim he was taking pictures of her during this incident. This victim estimated that she had several video chats with ACOSTA during which she was naked or engaging in sexual acts.
ACOSTA engaged in similar conduct with respect to a second victim, a 17-year-old girl. After hacking her email account, ACOSTA told this victim that he had two videos of her having sex, and that he was going to send these videos to her family and friends if she did not do what he said. ACOSTA directed the victim to video chat him and engage in sexually explicit conduct. In the face of ACOSTA’s threats, the second victim complied with his demands, including that she pay him $600.
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ACOSTA, 26, of the Bronx, New York, was arrested on March 29, 2016. ACOSTA is charged with one count of enticement of a minor to engage in illegal sexual activity, which carries a maximum sentence of life in prison; one count of sexual exploitation of a child, which carries a maximum sentence of 50 years in prison; one count of receipt of child pornography, which carries a maximum sentence of 40 years in prison; one count of possession of child pornography, which carries a maximum sentence of 20 years in prison; and one count of extortion, which carries a maximum sentence of two years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Any individuals who believe they have information concerning KELVIN ACOSTA that may be relevant to the investigation should contact the Federal Bureau of Investigation at 1-212-384-1000 or https://tips.fbi.gov/.
Mr. Bharara praised the outstanding efforts of the FBI and the New York City Police Department in this investigation, and thanked the Brooklyn District Attorney’s Office for its valuable cooperation. He added that the investigation is continuing.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Bangor Resident Pleads Guilty to Distributing Crack CocaineRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Antonio Gordon, 32, of Bangor pleaded guilty today U.S. District Court to distributing cocaine base, commonly known as “crack cocaine.”
According to Court records, on three occasions between December 2014 and January 2015, the defendant distributed crack cocaine in Bangor to a witness working with federal and state law enforcement authorities.
The defendant faces up to 20 years in prison, a $1,000,000 fine and from three years to life on supervised release.
The case was investigated by the U.S Drug Enforcement Administration and the Maine Drug Enforcement Agency.Ava Man Pleads Guilty to Producing Child Porn, Faces at Least 15 Years in PrisonRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Ava, Mo., man pleaded guilty in federal court today to producing child pornography.
Brett Corcoran, 26, of Ava, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charge contained in a Sept. 30, 2015, federal indictment. Corcoran has been in federal custody since his arrest.
By pleading guilty today, Corcoran admitted that he used a minor victim to produce child pornography between Jan. 1 and May 13, 2015. According to court documents, Corcoran engaged in numerous text conversations with a 14-year-old victim. He sent pornographic images of himself to her, and solicited images from the child victim.
Under federal statutes, Corcoran is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the St. Mary’s County, Maryland, Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Atlanta Woman and St. Thomas Man Arrested Attempting to Smuggle Marijuana and Hashish into the Virgin IslandsRead the Press Release
St. Thomas, USVI- Daniell Sherre Combs, 31, of Atlanta, Georgia, and C’quan Celestine, 21, of St. Thomas, made their initial appearance on Saturday, March 26, 2016, before U.S. Magistrate Ruth Miller after being charged in a complaint with possession with intent to distribute marijuana and hashish, United States Attorney Ronald W. Sharpe announced today. Combs and Celestine were detained pending preliminary and detention hearings set for March 30, 2016.
According to the complaint, on Friday, March 25, 2016, Combs and Celestine arrived together at the Cyril E. King Airport, St. Thomas, U.S. Virgin Islands, on board a Spirit Airlines flight from Fort Lauderdale, Florida. U.S. Customs and Border Protection (CBP) officers approached Combs and Celestine after they had removed their bags from the carousel in the baggage claim area. They were taken to secondary inspection where CBP officers searched their bags and found a large plastic bag of a green leafy substance that tested positive for marijuana, four bottles of oil that tested positive for THC (hashish), 63 grams of hashish, and several baked goods laced with marijuana.
Under federal law if convicted of possession with intent to distribute marijuana or hashish, Combs and Celestine face a maximum of five years in prison and a $250,000 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 Sigrid M. Tejo-Sprotte.
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.
Arizona Man and U.S. Citizen Residing in Germany Sentenced for Sexual AssaultRead the Press Release
PHOENIX – Two men were sentenced yesterday in the District of Arizona for the sexual assault of a 17-year-old girl in Landstuhl, Germany, in October 2013.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John S. Leonardo of the District of Arizona, Special Agent James Boerner of the U.S. Army Criminal Investigative Command (CID), Acting Special Agent in Charge Justin Tolomeo of the FBI’s Phoenix Division and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office made the announcement.
U.S. District Judge David G. Campbell of the District of Arizona sentenced Joseph S. Martin, 20, of Peoria, Ariz., to 96 months in prison, and Christopher J. Heikkila, 21, a U.S. citizen previously residing in Weilerbach, Germany, to 84 months in prison. In September 2015, a jury convicted the men of one count of sexual abuse and one count of abusive sexual contact each.
According to the evidence presented at trial, on or about Oct. 19, 2013, Martin and Heikkila sexually assaulted a 17-year-old girl in Landstuhl while she was incapacitated after they had used social media to specifically target the victim and plan the assault. At the time, Martin and Heikkila were employees of the Army & Air Force Exchange Service on Ramstein Air Force Base in Ramstein, Germany, as well as dependents of civilian employees of the military, according to trial evidence. The Military Extraterritorial Jurisdiction Act gives U.S. federal courts jurisdiction over felonies committed abroad by certain persons employed by or accompanying the U.S. military.
The Army CID and the FBI’s Phoenix Division and Washington Field Office investigated the case. Assistant U.S. Attorney Joseph E. Koehler of the District of Arizona and Senior Trial Attorneys Christine Duey and Michael Sheckels of the Criminal Division’s Human Rights Special Prosecutions Section (HRSP) prosecuted the case. HRSP Special Counsel Stacey Luck provided substantial assistance.
CASE NUMBER: CR-14-00678-PHX_DGC
RELEASE NUMBER: 2016-027_ Martin_ Heikkila
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
*******media Advisory*******Read the Press Release
WASHINGTON – Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Kevin W. Techau of the Northern District of Iowa, Acting U.S. Attorney Kevin VanderSchel of the Southern District of Iowa, and Deputy Assistant Director Eric Sporre of the FBI’s Cyber Division, will deliver remarks and participate in an intellectual property protection and cybersecurity roundtable co-hosted by Iowa State University on WEDNESDAY, MARCH 30, 2016. Following the keynote address, there will be a media tour and interview opportunities available with the Department of Justice officials at the BioRenewables Complex.
PLEASE NOTE, THE ROUNDTABLE DISCUSSION IS UNDER CHATHAM HOUSE RULES REGARDING AUDIENCE QUESTIONS AND PARTICIPATION. THE CONTENT OF THE DISCUSSION CAN BE REPORTED ON, BUT WITHOUT AUDIENCE MEMBER ATTRIBUTION OR IDENTIFICATION. GOVERNMENT PARTICIPANTS MAY BE IDENTIFIED AND QUOTED BY NAME.
IOWA STATE UNIVERSITY ROUNDTABLE
WHO: Assistant Attorney General for National Security John P. Carlin
U.S. Attorney Kevin W. Techau of the Northern District of Iowa
Acting U.S. Attorney Kevin VanderSchel of the Southern District of Iowa
Deputy Assistant Director Eric Sporre of the FBI’s Cyber Division
WHAT: Remarks and roundtable discussion targeted to businesses involved in agriculture, agricultural bioscience, biotech and bio renewables addressing trade secret theft and cybersecurity issues.
WHEN: WEDNESDAY, MARCH 30, 2016
9:00 a.m. CDT/ 10 a.m. EDTWHERE: Iowa State University
Memorial Union – Campanile Room
2229 Lincoln Way
Ames, IA 50011
OPEN PRESSNOTE: Press inquiries regarding logistics should be directed to Steve Young at [email protected]. AAG Carlin interview requests should be directed to [email protected] or (202) 353-5418.
BIO-RENEWABLES COMPLEX TOUR
WHO: Assistant Attorney General for National Security John P. Carlin
U.S. Attorney Kevin W. Techau of the Northern District of Iowa
Acting U.S. Attorney Kevin VanderSchel of the Southern District of Iowa
Deputy Assistant Director Eric Sporre of the FBI’s Cyber Division
WHAT: Tour of the complex followed by media availability
WHEN: WEDNESDAY, MARCH 30, 2016
10:15 a.m. CDT/ 11:15 a.m. EDTWHERE: Iowa State University
BioRenewables Complex
617 Bissell Road
Ames, IA 50011
OPEN PRESSNOTE: Press inquiries regarding logistics should be directed to Steve Young at [email protected]. AAG Carlin interview requests should be directed to [email protected] or (202) 353-5418.
Monday 28 March 2016
Westminster Man Pleads Guilty to Distribution of HeroinRead the Press Release
Baltimore, Maryland – Alexander E. Agniadis, age 28, of Westminster, Maryland pleaded guilty today to distribution of heroin.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief Jeffrey Spaulding of the Westminster Police Department; Carroll County Sheriff James DeWees; and Carroll County State’s Attorney Brian DeLeonardo.
According to Agniadis’ plea agreement, at approximately 3:30 p.m. on December 28, 2014, Agniadis distributed heroin to an individual in the vicinity of Medinah Circle in Westminster. Text messages show that the individual contacted Agniadis to obtain heroin. According to witnesses Agniadis and the individual met at about 3:30 p.m., and Agniadis gave the individual a small amount of heroin. The individual was not in contact with his family or anyone else after that time and his phone reflects only unanswered calls and incoming texts from that time forward. The individual was found dead on January 5, 2015. The Medical Examiner determined that the victim died of heroin intoxication.
As part of the investigation, in early January 2015, heroin was purchased from Agniadis. On January 14, 2015, a search warrant was executed at Agniadis’ residence and law enforcement recovered 14 individually wrapped glassine bags containing heroin, and additional bags with heroin residue.
Agniadis and the government have agreed that if the Court accepts the plea agreement Agniadis will be sentenced to between four and six years in prison. As part of his plea agreement, Agniadis will also be required to pay restitution of $6,200 to the victim’s family for the cost of his funeral and final arrangements. U.S. District Judge J. Frederick Motz has scheduled sentencing for June 24, 2016 at 11 a.m.
United States Attorney Rod J. Rosenstein commended the DEA and the Carroll County Drug Task Force comprised of the Maryland State Police, Westminster Police Department, Carroll County Sheriff’s Office and Carroll County State’s Attorney’s Office, for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Andrea L. Smith, who is prosecuting this Organized Crime Drug Enforcement Task Force case.
Washington Park Woman Sentenced for Failure to Register as A Sex OffenderRead the Press Release
Amber M. Salts, a 29-year old, Washington Park, Illinois, woman was sentenced on March 25, 2016, in federal district court, in East St. Louis, Illinois, for violation of Sex Offender Notification and Registration Act (SORNA), the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. Salts was sentenced to 30 months in federal prison, to be followed by ten years of supervised release, and ordered to pay a $100 Special Assessment and a $250 fine.
In approximately April 2015, Salts moved from Missouri to Illinois without registering or updating her registration as a sex offender in either state. Salts was aware of these registration requirements at the time of her offense. Salts was convicted of Permitting the Sexual Abuse of a Child in 2009 in Madison County, Illinois, and was required to register as a sex offender thereafter.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better 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 case was investigated by the United States Marshals Service and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Two from Marion guilty of dealing "blue drop heroin" that resulted in fatal overdoseRead the Press Release
Two Marion men pleaded guilty to selling a mixture of heroin and fentanyl that resulted in an overdose death last year, law enforcement officials said.
Eric Creagh, 32, and Rashawn D. Thomas, 27, each pleaded guilty to one count of drug trafficking that resulted in death.
Creagh sold Thomas “blue drop heroin” -- a mixture of heroin and fentanyl that had been dyed blue -- on May 22, 215. Later that day, Thomas sold a portion of the “blue drop heroin” to Christopher Wolford, who used the drug at his home, which ultimately caused him to overdose and die, according to court documents.
Creagh and Thomas are scheduled to be sentenced later this year. Under the terms of their guilty pleas, Creagh is expected to be sentenced to nearly 16 years in federal prison, while Thomas is expected to be sentenced to nine years in federal prison.
“Heroin and fentanyl abuse has caused on unprecedented wave of overdose deaths in our community over the past year,” said Acting U.S. Attorney Carole S. Rendon. “The only way we can stem this tide is with a comprehensive approach focused on prevention, treatment, prescribing practices and enforcement. Those who sell fentanyl and heroin that kills people deserve to go to prison.”
“On May 28, 2015 the City of Marion reached out to our federal and state partners asking for assistance with a Blue Drop Heroin overdose epidemic,” Marion Police Chief William Collins said. “Through combined efforts of our local drug task force, MARMET/METRICH, DEA, BCI and the US Attorney’s Office, an unprecedented 14-day investigation took place and resulted the arrests of Eric Creagh and Rashawn Thomas. These individuals were charged at the federal level in hopes that they would receive the kind of prison sentence that would fit the criminal offense, today we see our hopes fulfilled in that they will serve 16 years and 9 years respectively for their crimes against this community. Marion Law Enforcement will continue to seek harsh prison sentences for those whom seek to destroy our community.”
DEA Special Agent in Charge Timothy J. Plancon said: “DEA and our law enforcement partners have made it a priority to investigate the distribution of drugs that result in death. The efficiency in which this investigation was conducted, taking dangerous drug dealers off of the street, demonstrates the strong level of cooperation among all of our partners. We are focused on bringing to justice those individuals that are responsible for the increasing heroin problem in Ohio and across the United States.”
“I commend the work of the local, state, and federal authorities who worked so aggressively to get the supplier of this so-called ‘blue drop’ heroin off the streets,” said Attorney General DeWine. “Drugs like heroin and fentanyl are devastating lives and tearing families apart every day in this state. Traffickers must be held responsible, and investigators with my office’s Bureau of Criminal Investigation are available to work with local authorities anywhere in Ohio to help make that happen.”
Members of the Drug Enforcement Administration, the Marion Metro Drug Enforcement Unit (MARMET), the Marion Police Department and the Marion County Sheriff's Office executed search warrants at two homes owned by Creagh on June 10. Creagh was arrested and law enforcement agents recovered approximately one kilogram of a heroin/fentanyl mixture, blue fabric dye, a face mask with a filtration system and rubber gloves, two hydraulic presses and approximately $60,000 in cash, according to court documents.
This case is being prosecuted by Assistant U.S. Attorneys Michael Freeman and Thomas Weldon following an investigation by the Drug Enforcement Administration, MARMET, the Marion Police Department, the Marion County Sheriff's Office and the Ohio Bureau of Criminal Investigation.
Two New York Men Each Sentenced to over Two Years in Prison for Defrauding Home Depot Through ‘Double-Dipping’ SchemeRead the Press Release
TRENTON, N.J. – Two Brooklyn, New York, men were sentenced to prison today for fraudulently obtaining more than $250,000 through an elaborate “double-dipping” scheme that they committed at various Home Depot locations throughout the United States, including New Jersey, U.S. Attorney Paul J. Fishman announced.
Renauld Medard, 75, and Wesly Dieudonne, 31, were sentenced to 30 and 28 months in prison, respectively. They were previously convicted on all counts of an indictment charging them with one count of conspiracy to commit wire fraud and four counts of wire fraud. They were convicted following a four-day trial before U.S. District Judge Anne E. Thompson, who imposed the sentences today in Trenton federal court.
According to documents filed in this case and the evidence at trial:
As part of the scheme, Medard and Dieudonne purchased various items from Home Depot locations in New Jersey, New York, Maryland, Connecticut and Pennsylvania using cash, credit cards or store credit. Medard and Dieudonne also went to Home Depot stores and compiled identical sets of goods as listed in receipts from previous purchases. Under the guise that they had forgotten to purchase an item, usually an inexpensive one, they used receipts from previous purchases to deceive cashiers into believing that the new sets of goods had already been bought.
Medard and Dieudonne also went to Home Depot to return items stolen in the scheme. In some instances, they presented a receipt in order to effectuate the return. In other instances, they obtained a refund for store credit without presenting a receipt. From July 2009 through November 2011, Medard and Dieudonne fraudulently obtained Home Depot store credit and refunds totaling over $250,000.
In addition to the prison terms, Judge Thompson ordered Medard to serve three years of supervised release and pay $260,477.79 in restitution. Dieudonne was ordered to serve three years of supervised release and pay $197,632.79 in restitution.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Acting Special Agent in Charge Jeffrey Wood in Newark, with the investigation.
The government is represented by Assistant U.S. Attorneys David M. Eskew and Andrew D. Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Defense counsel:
Medard: Robert John Haney Esq., Princeton, New Jersey
Dieudonne: Andrea Bergman Esq., Trenton
Two Konawa Men Sentenced for Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JASON PAUL NUNLEY, age 40 and MASON NUNLEY, age 23, both of Konawa, Oklahoma were sentenced in federal court for CONSPIRACY, in violation of Title 21, United States Code, Section 371. JASON NUNLEY was sentenced to 48 months imprisonment, followed by 3 years of supervised release and MASON NUNLEY was sentenced to 33 months imprisonment, followed by 3 years of supervised release.
The Informations filed, alleged that beginning in or about May 20, 2015, and continuing until on or about June 4, 2015 and July 29, 2015, in the Eastern District of Oklahoma, the defendants, did knowingly and intentionally conspire, confederate and agree with others both known and unknown to commit offenses against the United States, namely, distribution of methamphetamine.
The charges arose from an investigation by the McAlester Police Department, District 18 District Attorney’s Drug Task Force, Seminole Nation Lighthorse Police, Oklahoma Highway Patrol, Seminole County Sheriff’s Office, Seminole Police Department, Oklahoma Bureau of Narcotics, United States Marshals Service and the Drug Enforcement Administration.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. The defendants will remain in the custody of the United States Marshals Service pending transportation to the designated federal facility at which they will serve their nonparoleable sentences.
Assistant United States Attorney Shannon Henson represented the United States.
Three Sentenced for Bulk Cash SmugglingRead the Press Release
HOUSTON – Two Houston residents and one man from Brownsville have been sentenced to federal prison for their roles in the attempted smuggling of a large amount of U.S. currency. Victor Flores, 45, and José Juan Saavedra, 40, both of Houston, and Ricardo Cavazos-Garza, 51, of Brownsville, previously pleaded guilty in August 2015.
Today, U.S. District Judge Lee H. Rosenthal sentenced Flores, Cavazos and Saavedra to 30, 28 and 24 months, respectively. Each must also serve three years of supervised release following completion of their prison terms. As part of their respective plea agreements, they each agreed to forfeit their interest in two separately seized sums of cash totaling $838,460.
The money had been derived from narcotics trafficking and was destined for Mexico.
On April 27, 2015, law enforcement seized $578,420 in Edinburg. The investigation revealed it had been loaded at a residence on the 6200 block of Foxleigh in Houston. The additional sum of $260,040 was seized from that same residence the following day, which was found packaged within a void between the bed and bed liner of a pickup truck parked in the garage.
The investigation concluded that the pickup and money was destined its intended ultimate destination - Mexico. All three men were taken into custody at the time of the seizure.
All defendants have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of a joint effort among Homeland Security Investigations, Drug Enforcement Administration, Harris County Sheriff’s Office and the Houston Police Department. Assistant U.S. Attorney Bryan Best is prosecuting the case.
Three Men Plead Guilty to Engaging in A $2.5 Million Fraud Involving Dozens of Fraudlent Loans from Banks and Credit Unions Throughout the NortheastRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that BINDER TAL, BALDEV TAL, a/k/a “David Tal,” a/k/a “Ashok Kumar,” and SHARIFUL MINTU each pled guilty to conspiring to commit bank fraud before U.S. District Court Judge Vincent L. Briccetti.
Manhattan U.S. Attorney Bharara stated: “Through various lies about their employment and income, Binder Tal, Baldev Tal, Shariful Mintu and their coconspirators obtained more than $2.5 million in loans and lines of credit. The banks and credit unions that the defendants defrauded were left holding the bag when the vast majority of these loans defaulted. Thanks to the outstanding investigative work of the U.S. Postal Inspection Service, IRS Criminal Investigation Division, and New York State Police Auto Crimes Unit, these defendants will now be held accountable for their crime.”
According to the Informations to which the defendants pled guilty and other court documents:
From 2007 to August 2015, BINDER TAL, BALDEV TAL, MINTU, and their co-conspirators fraudulently obtained loans and lines of credit from banks, credit unions, and other lending institutions. The defendants obtained the loans by providing materially false information to the lenders about the borrowers’ assets, including but not limited to false information about the borrowers’ employment and income. Through their scheme, the defendants and their co-conspirators fraudulently obtained more than $2.5 million in proceeds in connection with dozens of loan applications and applications for lines of credit. The vast majority of the loans and lines of credit went into default, and millions of dollars were not repaid.
As part of the scheme to defraud, the defendants used the proceeds to personally enrich themselves and their families. For example, the fraudulently obtained proceeds from the loans and lines of credit were used toward, among other things, credit card debts for personal expenses of the defendants, business expenses, and debts arising from other fraudulently obtained loans, to conceal the fraudulent nature of these loans.
In addition, the defendants and their co-conspirators also engaged in extensive efforts to perpetuate and conceal the fraudulent scheme. These efforts included, but were not limited to, multiple members of the conspiracy acting as the borrowers for different loans, falsely claiming that the purpose of the loans was to purchase or finance used luxury automobiles, when in fact many of the automobiles were never purchased or leased by the defendants or their co-conspirators, and the loan proceeds were later distributed to other members of the conspiracy and to entities they controlled.
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BINDER TAL, 34, and, BALDEV TAL, 34, both from Oresfield, Pennsylvania, pled guilty on February 24, 2016, and February 29, 2016, respectively, to one count of conspiring to commit bank fraud. MINTU, 36, of Montgomery, New York, pled guilty today to the same charge, which carries a maximum sentence of 30 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
BINDER TAL and BALDEV TAL are scheduled to be sentenced on June 1, 2016. SHARIFUL is scheduled to be sentenced on July 07, 2016.
Mr. Bharara praised the outstanding efforts of the United States Postal Inspection Service, the Internal Revenue Service, Criminal Investigation Division, and the New York State Police Auto Crimes Unit.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys John P. Collins, Jr. is in charge of the prosecution.
Tennessee and New York-Based Defense Contractors Agree to Pay $8 Million to Settle False Claims Act Allegations Involving Defective Countermeasure Flares Sold to the U.S. ArmyRead the Press Release
The Department of Justice announced today that Kilgore Flares Company and one of its subcontractors, ESM Group Inc., have agreed to pay a total of $8 million to resolve allegations that they violated the False Claims Act by selling or conspiring to sell defective infrared countermeasure flares to the U.S. Army and, in the case of ESM, knowingly evading customs duties owed to the United States. Tennessee-based Kilgore Flares manufactures and sells electronics and energetic products, such as flares, to the U.S. military. ESM Group, located in New York, manufactures magnesium powder supplied to the chemical, welding and pyrotechnics industries. ESM imported magnesium powder used in the flares from the People’s Republic of China (PRC), which it sold to Kilgore Flares.
“The Department of Justice is committed to ensuring that contractors do not cut corners in manufacturing critical items sold to the U.S. military,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “These settlements also show that the department will aggressively pursue those who avoid paying duties to gain an unfair business advantage over competitors who abide by the rules.”
The U.S. military uses infrared countermeasure flares to divert enemy heat-seeking missiles away from U.S. military aircraft. A primary component of these flares is ultrafine magnesium powder, which combined with other materials, provides ignition and enables the flares to burn at high temperatures and at rates that mimic an aircraft’s engine. Kilgore’s contracts with the army prohibited the use of magnesium powder from foreign countries (except Canada) in order to maintain domestic manufacturing capability in the interest of national defense.
The United States alleged that from July 2003 through May 2005, ESM knowingly misrepresented the content of ultrafine magnesium powder imported from the PRC in order to avoid paying antidumping duties owed to the United States. Antidumping duties protect against foreign companies “dumping” products on the U.S. market at prices below cost. The U.S. Department of Commerce assesses and U.S. Customs and Border Protection (CBP) collects these duties to protect U.S. businesses and level the playing field for domestic products. At the time of the imports alleged in this case, ultrafine magnesium powder from the PRC was subject to a 305 percent antidumping duty.
The government further alleged that from March 2005 through August 2006, Kilgore used the illegally imported Chinese magnesium powder purchased from ESM in the countermeasure flares it sold to the U.S. Army. The Chinese magnesium powder allegedly violated both the requirement for domestically produced powder and engineering specifications required by the contracts.
Kilgore and ESM agreed to pay $6 million and $2 million, respectively, to resolve the government’s allegations.
“Our warfighters– along with everyone who relies upon them, including their families – need to know that the equipment they use is of the highest quality and dependability,” said U.S. Attorney William J. Hochul Jr. of the Western District of New York. “In this case, the magnesium flares made by Kilgore were literally the last line of defense for our brave aviators. Because of today’s resolution, Kilgore will now ensure that similar incidents do not happen in the future.”
Prior to the civil settlements with Kilgore and ESM, five former employees and agents of ESM pleaded guilty to criminal offenses related to the magnesium importation scheme, including ESM’s former president, Charles Wright. The criminal defendants were ordered to pay more than $14 million in restitution.
“These civil settlements demonstrate the continued commitment of the Defense Criminal Investigative Service (DCIS) and our partner agencies to pro-actively identify individuals and groups intent on providing substandard, substituted products to the U.S. military in exchange for unwarranted exorbitant profits,” said Special Agent in Charge Craig W. Rupert of the U.S. Department of Defense Inspector General, DCIS. “Such schemes, perpetrated by dishonest contractors and individuals, place the American Warfighter in danger, erode public confidence and undermine the mission of our military services. The DCIS and its law enforcement partners will continue to tirelessly pursue and investigate procurement fraud allegations in order to safeguard our military members and to shield America’s investment in national defense.”
“The components of U.S. military equipment are held to rigorous standards to ensure our military superiority and the safety of our warfighters,” said Special Agent in Charge James Spero of Homeland Security Investigations (HSI) Buffalo. “When short cuts are taken, lives are put at risk. This settlement ensures that the companies involved are held responsible for their actions and further emphasizes HSI’s commitment to ensuring that the sale and distribution of products used by our military is done with integrity.”
The settlement with ESM resolved a lawsuit filed under the whistleblower provisions of the False Claims Act. The act permits private parties to sue on behalf of the United States those who falsely claim federal funds or, as in this case, those who avoid paying funds owed to the government. The lawsuit was filed by Reade Manufacturing Company, a domestic manufacturer of magnesium powder. The act also allows the whistleblower to receive a share of any funds recovered through the lawsuit. Reade Manufacturing received $400,000 as part of the settlement with ESM.
The settlements with Kilgore and ESM were the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of New York, U.S. Army Criminal Investigation Command, Defense Contract Audit Agency, DCIS, U.S. Immigration and Customs Enforcement’s HSI Buffalo and U.S. Customs and Border Protection. Additional technical support was provided by the Army Sustainment Command at Rock Island Arsenal, Ill. and the Army Research, Development and Engineering Command at Picatinny Arsenal, New Jersey.
The lawsuit against ESM is captioned United States ex rel. Reade Manufacturing Co. v. ESM Group, Inc., Civ. No. 10 - CV - 504-S (W.D.N.Y.). The claims resolved by these settlements are allegations only; there has been no determination of liability except as admitted by the individual defendants in the criminal proceedings.
Tennessee Business Owner Pleads Guilty to Failing to Pay More Than $6.8 Million in Employment TaxesRead the Press Release
A Germantown, Tennessee, resident and business owner pleaded guilty to one count of failing to pay over employment taxes to the Internal Revenue Service (IRS), announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Edward L. Stanton III of the Western District of Tennessee.
“Employers such as Larry Thornton are required by law to withhold taxes from their employees’ wages, hold those funds in trust, and pay over those funds to the IRS,” said Acting Assistant Attorney General Ciraolo. “Willful failure to comply with this requirement is a crime, and prosecution of those responsible remains among the Tax Division’s top priorities. Those individuals who choose to maintain their business and line their pockets with the trust funds of their employees are stealing from the U.S. Treasury – plain and simple and will face heavy consequences including incarceration.”
According to court documents, Larry Thornton, 66, was the majority owner, president and chief executive officer of Software Earnings Inc. (SEI), a Memphis company that produced and installed check processing. Thornton was also the 100 percent owner, CEO and president of First Touch Payment Solutions LLC (First Touch), a Memphis company that provided merchant services for credit card processing. Thornton, as CEO and president of SEI and First Touch, had ultimate and final decision-making authority regarding SEI’s and First Touch’s business activities and had authority to exercise significant control over SEI’s financial affairs. As part of his plea, Thornton admitted that he was responsible for collecting, accounting for and paying over to the IRS federal income taxes and Federal Insurance Contributions Act (FICA) taxes that were withheld from the wages of SEI and First Touch’s employees.
Beginning in the second quarter of 2007, Thornton caused SEI to stop paying over the taxes required to be withheld from SEI’s employees’ paychecks and caused SEI to stop timely filing Employer’s Quarterly Federal Tax Returns, Forms 941, with the IRS. Beginning in the first quarter of 2010, Thornton caused First Touch to stop paying over the taxes required to be withheld from First Touch’s employees’ paychecks and caused First Touch to fail to timely file Forms 941 with the IRS. Between 2007 and 2011, Thornton collected more than $6.8 million in employment taxes from SEI and First Touch employees’ paychecks, but failed to pay those collected taxes over to the IRS. Thornton also failed to pay his companies’ matching share of FICA taxes during those years. During the same years that Thornton failed to comply with his employment tax obligations, he spent over $6.2 million on personal expenses, including house and condominium payments; vehicle, yacht and motorcycle loan payments; personal travel; and start-up funding for his wife’s beauty boutique. As part of the guilty plea, Thornton admitted that his fraudulent conduct caused a tax loss of more than $8.9 million to the IRS.
“Business owners have a responsibility to withhold income taxes for their employees and then remit those taxes to the Internal Revenue Service on behalf of those employees,” said Special Agent in Charge Tracey D. Montaño of IRS Criminal Investigation. “Employment tax evasion not only results in the loss of tax revenue to the U.S. government, it also results in the loss of future social security or Medicare benefits for the employees. Failure to pay over withheld taxes is a serious offense. IRS Criminal Investigation will vigorously pursue anyone who, at the expense of their hard working employees, collects taxes and uses the proceeds for their own personal gain, rather than to fulfilling their employer obligations.”
Thornton faces a statutory maximum sentence of five years in prison, three years of supervised release, a fine and restitution. Under the terms of the plea agreement, Thornton has agreed to pay more than $10 million in restitution to the IRS. The sentencing is set for July 22.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Stanton commended special agents of IRS Criminal Investigation, who investigated the case and Assistant U.S. Attorney Damon Griffin of the Western District of Tennessee and Trial Attorney Robert J. Boudreau of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Statement of United States Attorney Eileen M. Decker on Government Request to Vacate Order Directing Apple to Help Access iPhoneRead the Press Release
The government has asked a United States Magistrate Judge in Riverside, California to vacate her order compelling Apple to assist the FBI in unlocking the iPhone that was used by one of the terrorists who murdered 14 innocent Americans in San Bernardino on December 2nd of last year. Our decision to conclude the litigation was based solely on the fact that, with the recent assistance of a third party, we are now able to unlock that iPhone without compromising any information on the phone.
We sought an order compelling Apple to help unlock the phone to fulfill a solemn commitment to the victims of the San Bernardino shooting – that we will not rest until we have fully pursued every investigative lead related to the vicious attack. Although this step in the investigation is now complete, we will continue to explore every lead, and seek any appropriate legal process, to ensure our investigation collects all of the evidence related to this terrorist attack. The San Bernardino victims deserve nothing less.
St. Lawrence County Felon Pleads Guilty to Possessing Gun, AmmunitionRead the Press Release
PLATTSBURGH, NEW YORK – Clayton T. Brothers, age 40, of Russell, New York, pled guilty on Friday to illegally possessing a firearm and more than 1,000 rounds of steel-penetrating ammunition.
The announcement was made by United States Attorney Richard S. Hartunian; James Spero, Special Agent in Charge for Immigration and Customs Enforcement, Homeland Security Investigations (HSI); New York State Police Superintendent Joseph D’Amico; and Anthony J. Annucci, Acting Commissioner of the New York State Department of Corrections and Community Supervision.
As part of his plea, Brothers admitted to possessing a Sig Sauer 556 pistol, and more than 1,000 rounds of 5.56 mm caliber NATO Lake City XM855 Grain Steel Penetrator ammunition, at his home in St. Lawrence County in April 2014. A prior felony conviction prevents Brothers from possessing firearms and ammunition.
He faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years when he is sentenced on July 25, 2016 by United States District Judge Brenda K. Sannes. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by Homeland Security Investigations, the New York State Police, and the New York State Department of Corrections and Community Supervision, and was prosecuted by Assistant U.S. Attorney Douglas Collyer.
Southern Texas Man Pleads Guilty to Drug ConspiracyRead the Press Release
Rey Ramirez, a resident of Pharr, Texas, pled guilty in federal district court on March 22, 2016, to conspiracy to possess with intent to distribute and distribution of cocaine and marijuana, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today. Ramirez surrendered into custody after the hearing and will be detained pending sentencing, which is scheduled for July 14, 2016, at 1:30 P.M. before the Honorable Nancy J. Rosenstengel. Ramirez faces a mandatory minimum sentence of ten years, up to life imprisonment, followed by a minimum of five years on supervised release, as well as a fine of up to $10,000,000 and a special assessment fee of $100.
Documents filed in court revealed that Ramirez agreed with others to distribute about 2,000 pounds of marijuana in Atlanta, Georgia, Akron, Ohio, and Imperial, Missouri, between March 2014 and July 2014, as well as 21 kilograms of cocaine in Imperial, Missouri in late June 2014. Some of these drugs were destined for distribution in this district.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Agencies participating in this case include the Drug Enforcement Administration and the Internal Revenue Service, Criminal Investigations. This case was prosecuted by Assistant United States Attorney Monica A. Stump.
Rhode Island Man Pleads Guilty to Interstate Travel to have Sex with a MinorRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that William McNeill, 23, of Cumberland, Rhode Island, pled guilty today in U.S. District Court to travelling in interstate commerce to engage in sexual conduct with a minor.
According to court documents, in the fall of 2014, McNeill met a 14 year-old girl from Cumberland County online. On about October 18, 2014, following several weeks of communicating with the juvenile in a sexually explicit manner, McNeill travelled from North Carolina to Maine to meet and have sexual relations with her.
McNeill faces up to 30 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.The case resulted from a joint investigation between the Naval Criminal Investigative Service and the Bridgton, Maine Police Department.
Project Safe Childhood - Newport Man Pleads Guilty to Child Pornography PossessionRead the Press Release
CONCORD, NEW HAMPSHIRE: Allen Langlois, 49, of Newport, New Hampshire, pled guilty on Monday in United States District Court for the District of New Hampshire to possessing child pornography, announced United States Attorney Emily Gray Rice.
An investigation conducted by the Federal Bureau of Investigation revealed that an individual was accessing a known child pornography website from the defendant’s Newport, New Hampshire residence, for which a federal search warrant was issued. When that warrant was executed in September 2015, hundreds of still images of child pornography were discovered on Langlois’s personal computer.
Langlois is scheduled for sentencing in July 2016. Pursuant to the terms of his plea agreement, he has stipulated to a sentence of 42 months’ imprisonment, followed by an extended period of supervised release. He also faces a fine of up to $250,000.
FBI was assisted in this case by the Police Departments of Newport, Manchester, and Nashua, New Hampshire, as well as the New Hampshire State Police. The case is being prosecuted by Assistant United States Attorney Nick Abramson.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led, in each district, by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Orlando Woman Indicted for Scheme to Allow Construction Contractors to Conceal the Employment of Undocumented Aliens and Evade Workers’ Compensation and Payroll TaxesRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Orquidea Quezada (48, Orlando) with 49 counts of wire fraud and one count of operating as an unlicensed money transmitter. Each wire fraud count carries a maximum penalty of 20 years in federal prison. The money transmitting count carries a maximum penalty of 5 years’ imprisonment. The indictment also notifies Quezada that the United States intends to seek forfeiture in the amount of $870,000, which is the approximate amount she made from the alleged scheme. Quezada was arrested on Saturday, March 26, 2016, by special agents from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and taskforce officers from Seminole and Orange Counties.
According to the indictment, between May 2013 and May 2016, Quezada (doing business as Orquicely Construction, LLC) applied for workers’ compensation insurance policies to cover two to seven employees, and an annual payroll of about $100,000. The insurance companies issued the policies for annual premiums based on the payroll information set forth in the applications.
Quezada then “rented” the insurance policies to numerous construction subcontractors who employed hundreds of workers, many of whom were undocumented aliens. To do so, she directed her insurance agent to e-mail the subcontractors a certificate of insurance that implied the insurance would cover their workers. The subcontractors wrote payroll checks to Orquicely Construction for work performed by their employees. Quezada then cashed those checks and paid the subcontractors’ employees in cash, through work crew leaders. Quezada kept five percent of each check as a fee for her services. Between May 2013 and November 2015, Quezada funneled approximately $17.4 million dollars to the subcontractors’ employees through her company.
Neither Orquicely Construction nor the subcontractors deducted state or federal taxes, such as for Medicare and Social Security, from the workers’ pay. The scheme allowed the subcontractors to avoid these taxes and workers’ compensation taxes, and to conceal their employment of undocumented aliens that were working illegally in the United States.
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (Jacksonville and Orlando), the Internal Revenue Service – Criminal Investigation, and the Florida Department of Financial Services, Division of Insurance Fraud. It will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Omaha Man Convicted of Possessing a FirearmRead the Press Release
United States Attorney Deborah R. Gilg announced that Rashad Pettis, age 28, of Omaha, Nebraska, was sentenced today to 15 months in federal prison after pleading guilty on December 14, 2015, to being a felon in possession of a firearm. The Honorable Laurie Smith Camp sentenced Pettis and included an order that he be on supervised release for two years following his release from prison.
On September 16 2015, Omaha Police Officers were in the area of 33rd and Hamilton Streets when they stopped a car for not having a valid license plate. As officers got out of their car they saw the driver of the stopped car bend over as if to hide something. When the officers approached they could see the grip of a handgun. Pettis was the driver. A check of his criminal history revealed a conviction for felony flight to avoid arrest in 2009. It is a violation of federal law for someone who has been convicted of a felony offense to possess a firearm.
The case was investigated by the Omaha Police Department.
Newton County Man Pleads Guilty to AssaultRead the Press Release
Jackson, Miss - Samuel Triplett, 36, of Newton County, Mississippi, pled guilty on Tuesday, March 22, 2016, before U.S. District Judge William H. Barbour, Jr., to assaulting his wife, who is a member of the Mississippi Band of Choctaw Indians, announced U.S. Attorney Gregory K. Davis.
Triplett, a non-Indian, admitted assaulting his wife on lands within the confines of the Conehatta Community. He further admitted in federal court to breaking and entering the Beach Club at Geyser Falls on May 31, 2014. Both the Conehatta Community and the Beach Club are on lands belonging to the Mississippi Band of Choctaw Indians.
Triplett will be sentenced on June 7, 2016, and faces a maximum penalty of 17 years in federal prison.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Glenda Haynes.
Newalla Man Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
Oklahoma City, Oklahoma – CHRISTOPHER MINOR, 32, of Newalla, Oklahoma, was sentenced by United States District Judge David L. Russell to serve 120 months in federal prison for possession of child pornography, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma.
On September 1, 2015, a federal grand jury indicted Mr. Minor for distribution of child pornography. On October 19, 2015, Mr. Minor pleaded guilty to a one-count Superseding Information charging him with possession of child pornography, the production of which involved the use of a prepubescent minor under the age of 12.
At his sentencing hearing today, Judge Russell sentenced Mr. Minor to serve 120 months in federal prison, followed by eight years of supervised release.
This case is the result of an investigation by Homeland Security Investigations and was prosecuted by Assistant U.S. Attorney Julia E. Barry.
New York Man Pleads Guilty to Conspiracy to Defraud U.S. Defense ContractorsRead the Press Release
ALEXANDRIA, Va. – Solomon Oyesanya, 33, of Brooklyn, New York, pleaded guilty today to a charge of conspiracy to commit wire fraud.
Oyesanya admitted that he was part of a conspiracy, led by two Nigerian nationals, to fraudulently obtain computer hardware and products from contractors and vendors who were approved to do business with the U.S. Government, specifically the U.S. Department of Defense (“U.S. DoD”). To accomplish this scheme, members of the conspiracy created fake U.S. DoD and other U.S. government agency websites and email accounts (sometimes called “spoofed” websites and email accounts) and placed fraudulent government purchase orders with victim contractors and vendors for large quantities of computer hardware and similar products. In furtherance of the conspiracy, Oyesanya, using false identification, picked up or attempted to pick up fraudulently ordered shipments from legitimate carriers to divert the shipments to co-conspirators in Nigeria. The actual and intended losses to the government contractors and vendors targeted by the conspiracy exceeded $1.5 million.
Oludayo Edgal, 32, of West Covina, California, also pleaded guilty on February 4 to a felony arising from this conspiracy.
Oyesanya, who will be sentenced on June 24, and Edgal, who will be sentenced on April 29, each face a maximum penalty of 20 years in prison, respectively. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Jeffery Thorpe, Special Agent in Charge of the Defense Criminal Investigative Service Cyber Field Office; and Kevin Perkins, Special Agent in Charge of the FBI’s Baltimore Field Office, made the announcement after the plea was accepted by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Kellen S. Dwyer and Special Assistant U.S. Attorneys John D. Filamor and Nima R.T. Binara are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-69.
New York Man Pleads Guilty to Child Sex TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 29-year-old Brooklyn, New York man pleaded guilty March 25, 2016 to sex trafficking of a minor before U.S. Magistrate Judge Karoline Mehalchick in Scranton.
According to United States Attorney Peter Smith, the defendant, Clinton Hayden a/k/a “Showtime,” admitted to recruiting, enticing, and transporting two minor females from Luzerne County to Brooklyn to engage in commercial sex acts.
Hayden was charged in an Information filed in December 2015, as a result of an investigation by agents of Homeland Security Investigations and the Pennsylvania State Police.
Hayden admitted that he recruited the minor females, posted photographs of them in advertisements on a website, and transported them to Brooklyn, where they engaged in prostitution at Hayden’s direction.
Hayden faces a mandatory minimum sentence of 10 years in prison and a potential maximum sentence of life in prison. Judge Mehalchick ordered a pre-sentence investigation to be completed, and ordered Hayden to be detained in prison pending sentencing. Hayden will be sentenced by Senior U.S. District Court Judge Richard P. Conaboy at a later date.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Mt. Vernon Woman Sentenced on Crack Cocaine OffenseRead the Press Release
On March 22, 2016, Tammy R. Whitton, 45, of Mt. Vernon, IL, was sentenced for a crack cocaine offense, the Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today.
Whitton, who had previously pled guilty to a one-count superseding indictment charging conspiracy to distribute 28 grams or more of crack cocaine, was sentenced to 120 months in federal prison, to be followed by 8 years of supervised release, and fined $300.00. The offense occurred between October 2014 and July 2015, in Williamson and Jackson Counties. Evidence at the plea and sentencing hearings established that Whitton was involved with others in the distribution of crack cocaine in the Marion and Carbondale areas. During the investigation, Whitton sold crack cocaine to confidential sources working for law enforcement. At sentencing, the judge found that Whitton was responsible for the distribution of 133 grams of crack cocaine. Three co-defendants have pled guilty to their roles in the crack cocaine conspiracy and are awaiting sentencing. One co-defendant has pled not guilty and is awaiting trial.
The ongoing investigation is being conducted by the Southern Illinois Enforcement Group, Drug Enforcement Administration, Jackson County Sheriff’s Office, and Carbondale Police Department. The Williamson and Jackson County State’s Attorney’s Offices also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Montgomery County Man Facing Federal Indictment for Distribtuion of Acetyl Fentanyl Resulting in DeathRead the Press Release
Greenbelt, Maryland – A federal grand jury indicted Justin Larson, age 30, of Gaithersburg, Maryland, today for distribution of acetyl fentanyl, a controlled substance analogue, which resulted in death, and for a narcotics conspiracy.
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); Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
According to the two count indictment, from May 2014 through March 17, 2016, Larson participated in a conspiracy to distribute acetyl fentanyl, a controlled substance analogue. The indictment alleges that on May 9, 2014, Larson distributed acetyl fentanyl to an individual, resulting in the death of that individual.
Larson faces a mandatory minimum sentence of 20 years and up to life in prison for distribution of acetyl fentanyl with death resulting; and a maximum of 20 years in prison for a narcotics conspiracy. No court appearance is currently scheduled. Larson remains detained on related federal charges.
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 praised HSI Baltimore, the Montgomery County Police Department, and Montgomery County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant United States Attorneys Kelly O’Connell Hayes and Daniel C. Gardner, who are prosecuting the case.
Miami Resident Sentenced to Prison for Stolen Identity Tax Fraud SchemeRead the Press Release
A Miami resident was sentenced to 34 months in prison, followed by three years of supervised release for his participation in a stolen identity tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Delany De-Leon Colon, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, made the announcement.
Ronel Junior Lamour, 25, previously pled guilty to one count of possession of fifteen or more counterfeit access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.
According to court documents, in 2013, Lamour used names, dates of birth and Social Security numbers of other people to file 2012 tax returns. As part of the scheme, Lamour set up bank accounts using unauthorized debit cards in the names of the filers and had the refunds wired into the accounts.
Court documents state that Lamour also fraudulently used debit card account numbers, issued to other persons, to purchase United States Postal Service (USPS) money orders. On two separate occasions, Lamour deposited these USPS money orders into a bank account.
Federal law enforcement conducted an electronic search of Lamour’s cell phone pursuant to a warrant. The phone contained copies of passports, driver’s licenses and Social Security cards of over fifty (50) individuals. This information was forwarded to the IRS Scheme Development Center and twenty-five (25) of those individuals were found to have had false 2012 tax returns filed in their names.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USPIS. The case is being prosecuted by Assistant U.S. Joshua S. Rothstein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Man Charged for Affinity Fraud Scheme that Promised Hmong HomelandRead the Press Release
United States Attorney Andrew M. Luger today announced a federal criminal complaint charging SENG XIONG, 48, with wire fraud for operating an affinity fraud scheme. XIONG was arrested on Thursday, March 24, 2016, at Los Angeles International Airport, prior to boarding a flight bound for Thailand. XIONG made an initial appearance on Friday, March 25, 2016, before United States Magistrate Judge Jacqueline Chooljian in U.S. District Court in Los Angeles, Calif. XIONG was denied bail and ordered remanded into custody pending removal to the District of Minnesota. A next court date has not yet been scheduled.
“This defendant is charged with targeting ethnic Hmong elders,” said United States Attorney Andrew Luger. “I encourage adults and immigrant families to remain on the lookout for thieves who seek to exploit vulnerable victims. My Office, the FBI, and the Minnesota Financial Crimes Task Force, which is comprised of local and federal law enforcement officers, are all resources to seek out if and when you are concerned about a suspicious investment opportunity.”
According to the criminal complaint and documents filed in court, on September 14, 2015, the Appleton, Wisc., Police Department received a tip that Hmong elders were being directed to deposit $3,000 to $5,000 into a bank account held in the name of SENG XIONG. In exchange for the payments, elders were allegedly promised 10 acres of land, a house and many other benefits in a future country that would be established as a Hmong homeland somewhere in Southeast Asia.
According to the criminal complaint and documents filed in court, on September 28, 2015, law enforcement in Saint Paul, Minn., received information that SENG XIONG was believed to be conducting a fraud scheme through his organizations, “International Fund for Hmong Development,” and “Hmong Tebchaws.” The website for “Hmong Tebchaws,” stated the mission of the organization was to “Pursue Hmong self-ruled (sic) in the mainland of Asia in accordance in international law.” The website also contained links to YouTube videos where more information about the “investment program” was available. Other promises made by “Hmong Tebchaws” included that the organization was working with the White House and United Nations to secure land for the Hmong Homeland, and that China, Japan, Laos, Cambodia and Vietnam have all agreed to acknowledge the Hmong people and have saved a piece of land for the Hmong people.
According to the criminal complaint and documents filed in court, a witness known as “K.X.,” has been following the “Hmong Tebchaws” website. According to the witness, since October 2014 the organization has been posting information on its website and various social media sites and has been hosting conference calls for potential “investors.” K.X. participated in six such calls between April 4, 2015, and September 21, 2015.
According to the criminal complaint and documents filed in court, XIONG was targeting elderly Hmong to make contributions to a future Hmong country that would be created sometime between 2015 and 2030. Different “investment options” were offered, which purported to represent varying levels of return that “founders” would be able to receive on their investments. Investments between $3,000 and $5,000 would guarantee the “investor” and his or her future generations, land, a house, free healthcare, free education, and government financial assistance for people over 65 years of age.
According to the criminal complaint and documents filed in court, “investors” were ultimately provided XIONG’s name and a bank account associated with XIONG to which they could direct funds.
If you or someone you know could be a victim, please contact the Minnesota Financial Crimes Task Force by sending an email to [email protected].This case is the result of an investigation conducted by the Minnesota Financial Crimes Task Force, Saint Paul Police Department, United States Secret Service, Federal Bureau of Investigation and Appleton Police Department.
Special assistance was provided by the United States Attorney’s Offices for the Eastern District of California.
This case is being prosecuted by Assistant United States Attorney Amber M. Brennan.
Defendant Information:SENG XIONG, 48
No known addressCharges:
- Wire fraud, 1 count
Makah Tribal Member Sentenced to Prison for Assault of Police OfficerRead the Press Release
An enrolled Makah Tribal member who fled the Neah Bay jail and then assaulted a Neah Bay Police Officer in an attempt to escape custody was sentenced today in U.S. District Court in Tacoma to 15 months in prison and three years of supervised release, announced U.S. Attorney Annette L. Hayes. BRANDON JOSEPH EATON, 32, escaped from custody on July 15, 2015. The officer who was escorting EATON at the jail chased him down, and with the help of other community members, subdued EATON. EATON bit and hit the officer causing cuts requiring more than a dozen stitches. At sentencing U.S. District Judge Benjamin H. Settle said it is important for others “to know that if an officer gets injured in the line of duty such as this, it will not go without consequence.”
According to records filed in the case, EATON was being escorted back to his cell after making a telephone call when he ran from the police station and refused to stop when ordered by police. The Neah Bay Police Officer chased EATON for a few blocks. When the officer caught up with EATON, the officer was punched in the face and head repeatedly and was bitten on the hand. The officer’s wounds required 19 stitches. As part of his sentence, EATON was ordered to pay $338 in restitution to the officer to compensate him for time off work and additional childcare costs.
In asking for a prison sentence Neah Bay Police Chief Jasper Bruner wrote to the court “This request is not out of revenge or retribution, this is in the hope that he can address the substance abuse and emotional issues that have plagued him. Mr. Eaton has a long standing history with our police department in a negative way.”
The case was investigated by the FBI and the Neah Bay Office of Public Safety. The case was prosecuted by Assistant United States Attorney Ye-Ting Woo.