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12 May 2016
Four United States Citizens Sentenced for Attempting to Overthrow the Gambian GovernmentRead the Press Release
United States Attorney Andrew M. Luger and Assistant Attorney General for National Security John P. Carlin today announced the sentencing of CHERNO NJIE, 58, ALGIE BARROW, 43, and BANKA MANNEH, 43, PAPA FAAL, 47, for their roles in planning and executing an unsuccessful coup attempt to overthrow the government of The Gambia on December 30, 2014. Three other members of the conspiracy were killed.
“These defendants conspired to overthrow a foreign government,” said U.S. Attorney Luger. “Regardless of the legitimacy of their personal and emotional connections to The Gambia, these men placed countless innocents in harm’s way when they engaged in a brazen and fatally flawed attempt at regime change. They violated U.S. laws that exist to protect the foreign policy of our country and all Americans both at home and abroad. While I respect the right of any person to voice opposition to a government or its policies, this case is a good example of how not to do so.”
According to the defendants’ guilty pleas and documents filed in court, the coup plotting began in at least 2013 when members of the conspiracy participated in meetings and discussions with other individuals about changing the leadership in The Gambia. As these discussions progressed, the co-defendants and other co-conspirators decided to attempt to change the regime in The Gambia through a coup. Defendants NJIE, MANNEH and BARROW led the effort to research, plan, supply, and execute the coup.
According to the defendants’ guilty pleas and documents filed in court, throughout the planning of the coup, the defendants participated in regular discussion by phone, email, or face-to-face at NJIE’s residence in Texas. The defendants engaged in military planning for the coup, which included an operations plan that identified the equipment and other logistical support needed for the coup. The defendants also engaged in political planning for The Gambia after the coup, which they expected would result in NJIE becoming the interim leader of The Gambia.
According to the defendants’ guilty pleas and documents filed in court, NJIE provided money for FAAL, MANNEH and BARROW to purchase firearms, all in furtherance of the coup. NJIE himself bought two expensive sniper rifles in Texas. NJIE also paid for the travel of his co-defendants to Texas for planning meetings and to Senegal to conduct the coup in The Gambia.
According to the defendants’ guilty pleas and documents filed in court, on the night of the attempted coup, they found that their target, the State House in Banjul, The Gambia, had been fortified with extra soldiers. The co-conspirators took heavy fire from the guard towers and suffered casualties. After their plan failed, the co-defendants fled The Gambia to Senegal before ultimately returning to the United States.
This investigation was led by the Federal Bureau of Investigation and its partners on Joint Terrorism Task Forces in multiple FBI field offices.
Assistant U.S. Attorney Charles Kovats prosecuted this case, with assistance from Richard Scott, a Deputy Chief of the National Security Division’s Counterintelligence and Export Control Section. A number of other U.S. Attorney’s Offices, including those in the Middle District of Tennessee, District of Maryland and the Western District of Texas provided critical support during the investigation.
Defendant Information:CHERNO NJIE, 58
Lakeway, Tex.Convicted:
- Conspiracy to violate the Neutrality Act, 1 count
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Conspiracy to possess a firearm in furtherance of a crime of violence, 1 count
Sentenced: • One year and one day in prison
ALAGIE BARROW, 43
Lavergne, Tenn.Convicted: • Conspiracy to violate the Neutrality Act, 1 count
• Conspiracy to possess a firearm in furtherance of a crime of violence, 1 countSentenced: • Six months in prison
BANKE MANNEH, 43
Jonesboro, Ga.Convicted: • Conspiracy to violate the Neutrality Act, 1 count
• Conspiracy to possess a firearm in furtherance of a crime of violence, 1 countSentenced: • Six months in prison
PAPA FAAL, 47
Brooklyn Center, Minn.Convicted: • Conspiracy to violate the Neutrality Act, 1 count
• Conspiracy to Smuggle Firearms in violation of the Arms Export Control Act, 1 countSentenced: • Time served
Fort Meade Man Sentenced to 10 Years in Prison for Enticing a Minor to Engage in Sexual ActivityRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell sentenced Pedro Antonio Del Granado, age 49, of Fort Meade, Maryland, today to 10 years in prison, followed by 10 years of supervised release, for enticing a minor to engage in sexual activity. A federal jury convicted Del Granado on February 11, 2016 and he has been detained since that date, after Judge Russell ordered that he be immediately taken into custody and held pending sentencing.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief James W. Johnson of the Baltimore County Police Department.
According to the evidence presented at his four day trial, from October 23 through October 30, 2014, Del Granado used email messages to attempt to entice a person whom he believed to be a 13 year old girl to engage in sexual activity. In fact, Del Granado was communicating with an undercover Baltimore County Police detective posing as a 13 year old girl. Witnesses testified that Del Granado responded to an advertisement the undercover detective placed on an internet website. The undercover detective and Del Granado continued communicating over the next several days. During their conversations, the undercover detective posing as a 13 year old girl mentioned several times that she was 13 years old. Despite that, Del Granado asked about meeting the 13 year old girl and discussed what they would do at that time, including having oral sex.
On October 30, 2014, Del Granado and the undercover detective agreed to meet and the undercover detective provided a location. Del Granado advised the undercover detective that he would be driving a black SUV. Members of the Baltimore County Police Department set up surveillance at the address. When Del Granado arrived at the location he was arrested. A cellular phone containing most of the emails between the Del Granado and the undercover detective was found in his vehicle. Del Granado told law enforcement officers that he was there to meet a 20-year old woman even though the emails from the undercover detective said the girl was 13 years old.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, HSI Baltimore, and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao and Special Assistant U.S. Attorney Angela Tang, who prosecuted the case.
Former Stuart Youth Pastor Sentenced to 45 Years for Production and Distribution of Child PornographyRead the Press Release
A former youth pastor was sentenced today to 45 years in prison for the production and distribution of child pornography by U.S. District Court Judge Jose E. Martinez in Ft. Pierce, Florida.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and William Snyder, Sheriff, Martin County Sheriff’s Office (MCSO), made the announcement.
On March 10, 2016, Jeffrey Brian Mobley, 24 of Ocala, formerly of Stuart, Florida pled guilty to an indictment, charging four counts of production of visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections 2251(a) and (e) and two counts of distribution of visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections 2252(a)(2) and (b)(1).
According to the court record, in September 2015, a suspicious conduct report was made to the Martin County Sheriff’s Office concerning a youth pastor, Jeffrey Brian Mobley, and a minor who was under his trust and care through a religious based youth program in Stuart, Florida. During the course of the investigation, law enforcement learned that Mobley, while the youth pastor, engaged in sexual intercourse, separately, with two female minors that were participants in the church’s youth program. Using various forms of electronic communication, while in Stuart Florida, Mobley induced one of the minors to engage in sexual activity and produced sexually explicit images of their illicit relationship at several locations.
This case was brought as part of Project Safe Childhood (PSC), 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 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 the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Mr. Ferrer commended the investigative efforts of the FBI and Martin County Sheriff’s Office for their work on this case. Mr. Ferrer also thanked the members of the United States Attorney’s Office for the Middle District of Florida for their assistance with this matter. The case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former President of People’s Savings Bank of Crawfordsville, Iowa, Enters Guilty Pleas for Embezzlement and Obstructing a Bank ExaminationRead the Press Release
DAVENPORT, IA – On May 9, 2016, Russell Edwin Wagler, 52, of Wayland, Iowa, waived his right to be indicted by the federal grand jury and entered pleas of guilty to an Information charging him with one count of misapplication and embezzlement of bank funds by a bank officer in violation of 18 U.S.C. § 656 (Count 1) and one count of obstruction of a bank examination in violation of 18 U.S.C. § 1517 (Count 2). The proceeding was held before United States Magistrate Judge Stephen B. Jackson, Jr.. The criminal case is assigned to United States District Court Judge Stephanie M. Rose. Sentencing is scheduled for September 19, 2016.
According to documents filed in United States District Court, from approximately December 2002 and until March 2013, Wagler originated numerous straw loans involving existing customers at the bank and took the proceeds of those loans. As a result, Wagler misapplied bank funds and the bank suffered losses of approximately $425,977.00. In addition, from approximately January 2008 and until October 2013, Wagler unlawfully obtained multiple unauthorized bonuses and unauthorized increased salaries. As a result of these unauthorized disbursements received by Wagler, the bank suffered losses of $200,964.00 bringing the total bank loss to $626,941.00 as related to Wagler’s activities.
The case was investigated by the Office of Inspector General for the Federal Deposit Insurance Corporation and the Federal Bureau of Investigation.
Former New York State Senate Leader Dean Skelos Sentenced to 5 Years in Prison and His Son, Adam Skelos, Sentenced to 6 ½ Years in Prison, in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that former New York State Senate Majority Leader DEAN SKELOS was sentenced today to five years in prison after having been found guilty by a federal jury of using his official position to obtain more than $300,000 in bribes and extortion payments that were paid to his son, ADAM SKELOS, in exchange for DEAN SKELOS’s official acts. ADAM SKELOS, who was convicted by the same jury, was also sentenced to six-and-a-half years in prison. DEAN SKELOS and ADAM SKELOS were sentenced in Manhattan federal court by U.S. District Judge Kimba M. Wood, who also presided over the four-week jury trial.
U.S. Attorney Preet Bharara said: “In the span of just 16 months, we have seen the arrest, prosecution, conviction, and sentencing of both leaders of the New York State legislature. The nearly simultaneous convictions of Sheldon Silver and Dean Skelos, whose corruption crimes were laid bare during fair and public trials, have no precedent. And while Silver and Skelos deserve their prison sentences, the people of New York deserve better. These cases show – and history teaches – that the most effective corruption investigations are those that are truly independent and not in danger of either interference or premature shutdown. That will continue to be our guiding principle in exposing and punishing corruption throughout New York. I thank the career investigators and prosecutors in my office, as well as FBI Assistant Director Diego Rodriguez and his entire team for their tremendous work in these two landmark prosecutions. All New Yorkers who believe in clean government owe them an enormous debt of gratitude.”
According to the evidence introduced at trial, court filings, and statements made in Manhattan federal court:
From 2011 to 2015, DEAN SKELOS served as Majority Leader and Co-Majority Leader of the New York State Senate, a position that gave him significant power over the operation of New York State government. DEAN SKELOS repeatedly used this power to pressure companies with business before New York State to make payments to his son, ADAM SKELOS, who substantially depended on these companies for his income. DEAN SKELOS and ADAM SKELOS were able to secure these illegal payments through implicit and explicit representations that DEAN SKELOS would use his official position to benefit those who made the payments, and punish those who did not. In total, DEAN SKELOS obtained over $300,000 in payments to ADAM SKELOS through persistent and repeated pressure applied to senior executives of three different companies that needed legislation passed in the New York State Senate and other official actions from DEAN SKELOS.
The Glenwood Scheme
Beginning in late 2010, and continuing for approximately two years, DEAN SKELOS repeatedly solicited payments for ADAM SKELOS from representatives of Glenwood Management Corp. (“Glenwood”), a major New York City real estate company. DEAN SKELOS’s solicitations for payments to ADAM SKELOS took place during the same meetings when Glenwood’s representatives were asking for DEAN SKELOS’s assistance with New York State legislation that was crucial to Glenwood’s profitability. As a result of the sustained pressure from DEAN SKELOS, representatives of Glenwood arranged for a $20,000 direct payment to ADAM SKELOS and further arranged for Abtech Industries (“Abtech”), an Arizona-based stormwater technology company in which Glenwood’s founding family owned a stake, to make $4,000 monthly payments to ADAM SKELOS. Glenwood arranged for these payments to ADAM SKELOS due to the company’s substantial dependence on DEAN SKELOS for real estate tax abatements and other real estate legislation favorable to Glenwood, and based in part on statements from DEAN SKELOS that he would punish those in the real estate industry who defied him.
The Abtech Scheme
After successfully obtaining ADAM SKELOS’s Abtech consulting contract for $4,000 per month, DEAN SKELOS assisted Abtech in causing Nassau County to issue a request for proposal (“RFP”) for a public works project that was tailored to Abtech’s stormwater technology. DEAN SKELOS and ADAM SKELOS then threatened to use DEAN SKELOS’s official powers to block Abtech’s bid for the RFP unless the company sharply increased ADAM SKELOS’s payments. Abtech ultimately agreed to increase ADAM SKELOS’s payments to $10,000 per month because the company feared that, if it did not meet the defendants’ demands, it would lose the Nassau County contract that was critical to its business. In return for the payments to ADAM SKELOS, and to ensure that they would continue, DEAN SKELOS facilitated the approval of Abtech’s $12 million contract with Nassau County and thereafter took numerous additional official actions to benefit Abtech.
For example, when Abtech and ADAM SKELOS believed Nassau County was insufficiently funding the company’s project, DEAN SKELOS pressured Nassau County officials to make additional funds available. In January 2015, DEAN SKELOS was intercepted in a call with the Nassau County Executive in which he asked for an explanation for the lack of funding, complaining on behalf of ADAM SKELOS that “somebody feels like they’re getting jerked around the last two years.” The next day, DEAN SKELOS traveled with the County Executive and his Deputy to the funeral of a New York City Police Department officer, where DEAN SKELOS reiterated in person his demand that the County expedite payments to Abtech.
DEAN SKELOS also used his official position in an attempt to direct a portion of a $5.4 billion sum that the State had recovered in litigation with financial services companies (the “Settlement Funds”) in a way that would benefit water projects and contracts that were being pursued by Abtech. For example, at the same time ADAM SKELOS was attempting to obtain additional Abtech stormwater projects with local municipalities by claiming that the projects could be funded through State funds, DEAN SKELOS was advocating for a portion of the Settlement Funds to be allocated for stormwater projects.
DEAN SKELOS also used his official position in an attempt to enact State “design-build” legislation that was being sought by Abetch and that Nassau County officials had explained was necessary to implement fully the $12 million contract with Abtech. Nassau County officials provided DEAN SKELOS with proposed legislation that DEAN SKELOS stated he would support if backed by the Governor. In a recorded call on ADAM SKELOS’s “burner” phone, ADAM SKELOS told a representative of Abtech that DEAN SKELOS had privately assured ADAM SKELOS that DEAN SKELOS was “going to be sure that [the design-build legislation] gets done.” Later, ADAM SKELOS told Abtech’s representatives that while design-build legislation would not be enacted as part of the April 2015 budget process, DEAN SKELOS would continue to pursue it in the legislative session continuing through June 2015. The defendants were arrested in May 2015 before their plan to enact the legislation could be completed.
The PRI Scheme
During the same time period as the Glenwood and Abtech schemes, DEAN SKELOS pressured yet a third company, called Physician Reciprocal Insurers (“PRI”), to pay ADAM SKELOS. PRI is a major medical malpractice insurance firm, whose existence depends on New York State legislation that exempts the firm from being liquidated even though its liabilities exceed its assets. Similar to the Glenwood scheme, DEAN SKELOS solicited payments to ADAM SKELOS from PRI during the same conversations when PRI was seeking DEAN SKELOS’s support for the extension of this legislation that was critical to PRI’s business.
In response to the pressure from DEAN SKELOS to find sources of payment to ADAM SKELOS, PRI agreed to, among other things, give ADAM SKELOS a full-time job with benefits. Even though ADAM SKELOS was expected to work 40 hours per week, he treated his PRI position as a “no show” job from the outset of his employment. When ADAM SKELOS’s supervisor told ADAM SKELOS that he was expected to show up to work, ADAM SKELOS berated him and told him “[g]uys like you . . . couldn’t shine my shoes. . . . And if you talk to me like that again, I will smash your fucking head in.” When the CEO of PRI told DEAN SKELOS that ADAM SKELOS was not showing up to work and was mistreating the other employees, DEAN SKELOS expressed no concern about ADAM SKELOS’s conduct and simply told the CEO to “[w]ork [it] out.” Based on this conversation, among others, the CEO understood that if he did not continue to pay ADAM SKELOS, despite his non-performance and misconduct at work, he was risking DEAN SKELOS taking legislative action against PRI. Later, when former Senator Alphonse D’Amato, one of PRI’s lobbyists, reiterated to DEAN SKELOS that ADAM SKELOS was not showing up to work and was being disruptive when he actually did show up, DEAN SKELOS also dismissed Senator D’Amato’s concerns and told him that ADAM SKELOS needed the income and benefits from PRI.
DEAN SKELOS did not inform any of the companies he pressured to pay ADAM SKELOS that, between 2011 and 2014, ADAM SKELOS was making between $230,000 and $441,000 per year.
During the time period that PRI was paying ADAM SKELOS, DEAN SKELOS repeatedly voted to extend PRI’s legislative protection from liquidation as well as other legislation that was being sought by PRI.
* * *
In addition to the prison sentence, Judge Wood ordered DEAN SKELOS, 68, of Rockville Centre, New York, to pay a $500,000 fine, forfeit $334,120, and pay a $800 special assessment fee. DEAN SKELOS also was sentenced to one year of supervised release. In imposing a fine on DEAN SKELOS, Judge Wood took into account the tax-payer funded pension that DEAN SKELOS would be receiving. Judge Wood ordered ADAM SKELOS, 33, also of Rockville Centre, to forfeit $334,120, pay a $800 special assessment, and serve three years of supervised release.
DEAN SKELOS and ADAM SKELOS were found guilty by a unanimous jury on December 11, 2015, of conspiracy to commit extortion under color of official right, conspiracy to commit honest services wire fraud, three counts of extortion under color of official right, and three counts of soliciting and receiving bribes.
U.S. Attorney Bharara praised the work of the Criminal Investigators of the United States Attorney’s Office and the Federal Bureau of Investigation, who jointly conducted this investigation.
This case was prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jason A. Masimore, Rahul Mukhi, Tatiana R. Martins, and Thomas A. McKay are in charge of the prosecution.
Former Certified Public Accountant Sentenced to Prison for Tax FraudRead the Press Release
A former certified public accountant in Georgia was sentenced to seven months in prison today after pleading guilty in February to one count of filing a false tax return, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney John A. Horn for the Northern District of Georgia.
According to court documents and information presented in court, Thomas D. Ziff was a licensed certified public accountant. From approximately January 2006 through December 2010, Ziff operated a tax return preparation and accounting business. During that time, Ziff was the trustee of a trust that was associated with the last will and testament of another individual. As the trustee of the trust, Ziff opened a bank account in the name of the trust at Wachovia Bank over which he had sole signatory authority. While serving as trustee of the trust, Ziff embezzled and caused to be transferred approximately $300,000 from the trust bank account to other bank accounts that he controlled and used the funds for his personal use. Ziff failed to report the embezzled funds as income on his federal income tax returns for the years 2008, 2009 and 2010.
In addition to the prison term, U.S. District Judge Steve C. Jones of the Northern District of Georgia ordered Ziff to serve one year of supervised release and pay restitution to the Internal Revenue Service (IRS) in the amount of $47,539.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Horn commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorney Christopher J. Maietta of the Tax Division and Assistant U.S. Attorney Steven D. Grimberg of the Northern District of Georgia, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Former Bank Teller and Check Casher Indicted for Cashing Fraudulently Obtained Tax Refund ChecksRead the Press Release
A federal grand jury sitting in Macon, Georgia, returned two indictments today against residents of Columbus, Georgia, charging crimes related to several stolen identity tax refund fraud schemes, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney G.F. Peterman, III, for the Middle District of Georgia.
Tonya Alexander is charged with one count of conspiracy to commit theft of public money and ten counts of theft of public money. The indictment alleges that, between June 2012 and December 2013, Alexander worked as a bank teller at SunTrust Bank in Columbus. Alexander was allegedly approached by several co-conspirators who wanted her to cash fraudulently obtained tax refund checks in exchange for a fee. The income tax refunds were generated by tax returns filed using stolen identities. It is further alleged that Alexander recruited another bank teller to assist her in cashing the fraudulent tax refund checks. In total, Alexander and her co-conspirators are alleged to have cashed over 500 tax refund checks that fraudulently claimed over $1 million in tax refunds.
George Rowell is charged with one count of conspiracy to commit theft of public money, seven counts of theft of public money and two counts of passing forged U.S. Treasury checks. The indictment alleges that between January 2013 and December 2013, Rowell owned and operated Big O’s Package Store located in Columbus. Rowell offered check cashing services at his store. Rowell was allegedly approached by several co-conspirators who wanted him to cash fraudulently obtained tax refund checks in exchange for a fee. The tax refunds were generated by tax returns filed using stolen identities. Rowell allegedly charged his co-conspirators 10 percent of the check’s face value and permitted at least one co-conspirator to forge the endorsement on the checks in his presence. In total, Rowell and his co-conspirators are alleged to have cashed over 250 tax refund checks worth more than $600,000.
If convicted, Alexander and Rowell each face a statutory maximum sentence of five years in prison for the conspiracy counts and 10 years in prison for each count of theft of public money. Rowell also faces a statutory maximum sentence of 10 years in prison for each count of passing a forged U.S. Treasury check. Both defendants also face monetary penalties, supervised release and restitution.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Peterman commended special agents of Internal Revenue Service-Criminal Investigation and the U.S. Secret Service, who investigated the cases and Trial Attorney Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Crawford L. Seals of the Middle District of Georgia, who are prosecuting the cases.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Bank Teller and Check Casher Indicted for Cashing Fraudulently Obtained Tax Refund ChecksRead the Press Release
WASHINGTON – A federal grand jury sitting in Macon, Georgia, returned two indictments today against residents of Columbus, Georgia, charging crimes related to several stolen identity tax refund fraud schemes, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney G.F. Peterman, III, for the Middle District of Georgia.
Tonya Alexander is charged with one count of conspiracy to commit theft of public money and ten counts of theft of public money. The indictment alleges that, between June 2012 and December 2013, Alexander worked as a bank teller at SunTrust Bank in Columbus. Alexander was allegedly approached by several co-conspirators who wanted her to cash fraudulently obtained tax refund checks in exchange for a fee. The income tax refunds were generated by tax returns filed using stolen identities. It is further alleged that Alexander recruited another bank teller to assist her in cashing the fraudulent tax refund checks. In total, Alexander and her co-conspirators are alleged to have cashed over 500 tax refund checks that fraudulently claimed over $1 million in tax refunds.
George Rowell is charged with one count of conspiracy to commit theft of public money, seven counts of theft of public money and two counts of passing forged U.S. Treasury checks. The indictment alleges that between January 2013 and December 2013, Rowell owned and operated Big O’s Package Store located in Columbus. Rowell offered check cashing services at his store. Rowell was allegedly approached by several co-conspirators who wanted him to cash fraudulently obtained tax refund checks in exchange for a fee. The tax refunds were generated by tax returns filed using stolen identities. Rowell allegedly charged his co-conspirators 10 percent of the check’s face value and permitted at least one co-conspirator to forge the endorsement on the checks in his presence. In total, Rowell and his co-conspirators are alleged to have cashed over 250 tax refund checks worth more than $600,000.
If convicted, Alexander and Rowell each face a statutory maximum sentence of five years in prison for the conspiracy counts and 10 years in prison for each count of theft of public money. Rowell also faces a statutory maximum sentence of 10 years in prison for each count of passing a forged U.S. Treasury check. Both defendants also face monetary penalties, supervised release and restitution.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Peterman commended special agents of Internal Revenue Service-Criminal Investigation and the U.S. Secret Service, who investigated the cases and Trial Attorney Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Crawford L. Seals of the Middle District of Georgia, who are prosecuting the cases.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Florida Woman Sentenced for Health Care FraudRead the Press Release
ROANOKE, VIRGINIA – A Florida woman, who billed Medicaid for services she did not provide while living and working in the New River Valley, was sentenced today in the United States District Court for the Western District of Virginia in Roanoke on healthcare fraud charges, United States Attorney John P. Fishwick Jr. and Virginia Attorney General Mark R. Herring announced today.
Jennifer Ashlee Zenitz Engorn, 28, of Miami, Florida, who previously pled guilty to one count of healthcare fraud, was sentenced today to two years of probation, a fine of $1,100 and a $100 special assessment. Engorn was also ordered to pay $8,352 in restitution to the Department of Medical Assistance Services.
“Healthcare fraud cannot and will not be tolerated,” United States Attorney John P. Fishwick Jr. said today. “Our diminishing health care dollars must be used wisely and legally. Those who break the law and steal money from these important programs will be held accountable. We are proud to work with the professional investigators in the Medicaid Fraud Control Unit to protect these important programs.”
According to evidence presented at previous hearings by Assistant United States Attorney Jennie L.M. Waering, Engorn was employed to provide mental health skill building services to low income patients served by Medicaid. However, Engorn did not provide these services and provided false documentation to her employer causing the billing of Medicaid for the services that were not rendered.
The investigation of the case was conducted by the Virginia Office of the Attorney General’s Medicaid Fraud Control Unit, and the Federal Bureau of Investigation. Assistant United States Attorney Jennie L.M. Waering and Assistant Attorney General and Special Assistant United States Attorney Vaso T. Doubles prosecuted the case for the United States.
Florida Woman Sentenced for Bogus Loan SchemeRead the Press Release
BOSTON – A Florida woman was sentenced today in connection with an advance fee scheme involving 100 victims throughout the United States, including many in Massachusetts.
Ann Elizabeth Ursiny, a/k/a Ann Stone, 51, was sentenced by U.S. District Court Judge Richard G. Stearns to 50 months in prison to be served consecutive to her current sentence, three years of supervised release and restitution of $933,456. In September 2015, she pleaded guilty to 19 counts of mail fraud and 17 counts of wire fraud all in connection with a fraudulent scheme in which individuals were induced to pay up-front fees to Ursiny and her entity, Trace Financial Group, Inc., based on representations that those individuals would receive real estate loans, when in fact Ursiny never intended to make any such loans. Ursiny’s co-defendant, Robert O’Connor, pleaded guilty in June 2015 to participating in the same scheme by recruiting victims to apply for loans and pay the advance fees. O’Connor is scheduled to be sentenced on June 29, 2016.
From early 2010 to 2011, Ursiny recruited agents, including O’Connor, in several states to solicit individuals to apply for real estate loans through Trace and pay the advance fees. In return, the agents were paid a portion of those advance fees. Ursiny told prospective victims that Trace had successfully processed and disbursed many loans, when, in fact, none were ever disbursed. Ursiny focused the scheme on prospective applicants who had poor credit or whose homes were underwater, and represented that Trace could replace their mortgage with a new, smaller mortgage with lower mortgage interest payments. In fact, Trace never funded any of the loans, and failed to pay refunds as promised. Victims’ funds were used for Ursiny’s personal and family expenses, and to pay “commissions” to agents.
In 2012, Ursiny was sentenced in the District of Colorado to 71 months in prison in connection with a separate fraud scheme.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
Five Men Charged in Conspiracy to Distribute Heroin in Paterson, New Jersey, and Suburbs in New York, New JerseyRead the Press Release
NEWARK, N.J. – Five men appeared in federal court today to face charges for their roles in a heroin distribution conspiracy that reached from Bronx, New York, to Paterson and suburban communities in New York and New Jersey, U.S. Attorney Paul J. Fishman announced.
Charlie Rodriguez, 32, of Paterson, Reinaldo Rodriguez, 27, of Paterson, Victor Alfonso Alvarez Martinez, 26, of Bronx, Edward M. Stanel, 25, of Parsippany, New Jersey, and Joseph Trimarco, 28, of Stony Point, New York, are each charged by criminal complaint with one count of conspiracy to distribute a kilogram or more of heroin. Martinez and Trimarco were arrested last night. The rest were arrested this morning. All five defendants appeared this afternoon before U.S. Magistrate Judge Michael A. Hammer in Newark federal court.
According to the complaint:
From June 2015 through May 2016, the defendants participated in a drug trafficking organization that amassed wholesale quantities of heroin at multiple locations in and around Bronx and used couriers to deliver large quantities of that heroin to mid-level drug dealers operating in and around Paterson. The heroin was either sold in the Paterson area or re-distributed to street-level drug dealers in suburban areas, including but not limited to, Morris County, New Jersey and Rockland County, New York.
In addition to the defendants who appeared in court today, Juan Pablo Goris-Castellano, 25, of Bronx, Edwin Lopez, 30, of Elmwood Park, New Jersey, and Carolina Almonte, 27, of Bronx, were charged on April 20, 2016 in a separate but related federal criminal complaint with conspiring to distribute one kilogram or more of heroin.
Goris-Castellano, who was based out of Bronx, packaged and then distributed large quantities of heroin to Lopez, who operated out of Paterson. Almonte and Martinez brought the heroin to Lopez and returned to Goris-Castellano with Lopez’s payment. Lopez then sold portions of that heroin to Charlie Rodriguez, who worked closely with Reinaldo Rodriguez to re-sell portions of that heroin to street-level dealers in Paterson and to street-level dealers in suburban areas including Stanel who operated in Morris County and Trimarco who operated in Rockland County.
The drug distribution conspiracy charge carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a maximum $10 million fine.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the OCDETF/Narcotics Unit of the U.S. Attorney’s Office in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Financial Advisor Charged with Investment Fraud SchemeRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that that a federal grand jury in Scranton has charged Anthony Diaz, age 48, of East Stroudsburg, Monroe County, Pennsylvania, with defrauding his clients by using false and misleading statements and misrepresentations to induce those clients to purchase high risk and/or otherwise unsuitable investment products, through which Diaz received substantial fees and commissions to which he was not entitled.
According to United States Attorney Peter Smith, Diaz allegedly operated the scheme between approximately 2006 and 2015, while he was a registered representative and/or a certified financial planner associated with financial investment firms. Diaz had his own office, under the name of Financial Planners Group of America, with employees reporting to him during the periods when he was associated with other firms. From December 2006 through May 2015, Diaz allegedly sold what were called “alternative investment products” to his clients. Such products are generally high risk, speculative and illiquid (i.e., they cannot readily be converted to cash); may require long holding periods of up to nine years, and have “suitability requirements” related to the net worth and/or income of investors.
As part of the scheme, Diaz allegedly instructed clients to sign blank or partially completed documents, and provided false information on documents concerning the clients’ net worth, income, risk tolerance and/or investment experience to falsely make it appear that the clients met the applicable requirements to invest in the products.
Diaz also allegedly failed to explain to clients that alternative investment products lacked liquidity and had no public market for resale. He allegedly falsely assured clients they would have access to their funds and falsely told some of them the investments were “guaranteed” to earn a certain rate of return, when, in fact, he knew there was no guaranteed rate of return.
Diaz also allegedly made it appear that his clients were receiving interest payments from the investments as a return on the investment, when, in most instances, the payments were the return of the investors’ initial capital investment.
Diaz allegedly told his clients that he voluntarily left the firms he was associated with at various times and for the clients’ benefit, when, in fact, he was terminated or asked to leave. As a result, some clients incurred additional fees and expenses.
The indictment charges Diaz with six counts of wire fraud. Each count relates to an interstate wire transmission concerning investments made in connection with the fraud scheme, totaling approximately $293,000, between December 2012 and May 2014.
In May 2015, the Financial Industry Regulating Authority (FINRA), part of the U.S. Treasury Department, permanently banned Diaz from acting as a broker or otherwise associating with firms that sold securities to the public. In June 2015, the Pennsylvania Department of Banking and Securities banned Diaz from representing an issuer or seller of securities in Pennsylvania and from being registered as a broker-dealer, agent or investment advisor in Pennsylvania.
Anyone with information concerning financial services rendered by Diaz and/or Financial Planners Group of America, should contact the U.S. Attorney’s Office at 570-348-2800.
The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Evan Gotlob and Robert O’Hara.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Felon and Drug User in Possession of a Stolen Firearm Sentenced to PrisonRead the Press Release
A convicted felon and admitted user of a controlled substance who possessed a stolen weapon with an obliterated serial number was sentenced yesterday to 10 years in federal prison.
Antonio Karlos Thigpen, 35, from Cedar Rapids, Iowa, received the prison term after a guilty plea on January 15, 2016, to being a prohibited person in possession of a firearm and ammunition. He was prohibited from possessing a weapon and ammunition because he was a convicted felon and used marijuana.
The evidence showed that Thigpen was in a verbal argument with others within Cedar Rapids city limits while armed with a loaded Glock pistol and under the influence of marijuana. At his plea, he admitted to having two felony convictions and being a regular user of marijuana. At sentencing, the Court noted that Thigpen created a very dangerous situation by his actions.
Thigpen was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Thigpen is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Steve Young and investigated by the Cedar Rapids Safe Streets Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-102.
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Felon Convicted of Illegal Gun PossessionRead the Press Release
PHILADELPHIA - Anthony Andrews, 35, of Philadelphia, PA, was convicted today on the charge of felon in possession of a firearm. A sentencing date is scheduled for July 15, 2016. Andrews faces a mandatory minimum sentence of 15 years in prison.
On June 17, 2014, Andrews knowingly possessed four firearms and ammunition that included an MPA (Masterpiece Arms) 5.7x28 caliber pistol; an MPA (Masterpiece Arms), 9 millimeter pistol; a CAI (Century Arms International/Zastava Arms) 7.62x39 caliber pistol; and a Phoenix Arms, .25 ACP caliber pistol.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Jose Arteaga.
Federal Court Permanently Enjoins Chicago Medical Services Business and its Owner from Accruing Payroll Tax LiabilitiesRead the Press Release
A federal court in Chicago has ordered that Mauricio Consalter, a doctor, ensure that his business timely file payroll tax returns and pay payroll taxes, the Department of Justice announced today.
U.S. District Court Judge John Robert Blakey for the Northern District of Illinois entered a permanent injunction requiring Medici Health Care Providers SC and Consalter to timely file payroll tax returns and pay any payroll taxes that accrue. Additionally, Consalter must notify the Internal Revenue Service (IRS) if he starts to operate a new business in the next five years. The defendants agreed to entry of the injunction, but did not admit the factual allegations in the civil complaint.
According to the United States’ complaint, Medici Health Care Providers SC has repeatedly failed to timely file payroll tax returns or pay payroll taxes. The permanent injunction entered by the court requires the defendants to stay current on their federal employment tax obligations.
Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division thanked the revenue officer in IRS Field Collection for investigating and preparing the civil case.
Additional information about the Tax Division and its efforts to combat unpaid employment taxes may be found on the division’s Employment Tax Enforcement webpage.
Eight San Juan County Residents Facing Federal Charges Arising Out of Methamphetamine Trafficking on Navajo ReservationRead the Press Release
ALBUQUERQUE – Eight San Juan County residents are facing federal narcotics trafficking charges as the result of a multi-agency investigation led by Homeland Security Investigations (HSI) and the HIDTA Region II Narcotics Task Force into methamphetamine trafficking on the Navajo Indian Reservation in northwestern New Mexico. Six of the eight defendants were arrested yesterday during a law enforcement operation that included the execution of two search warrants at residences in Shiprock and Kirtland, N.M. The six defendants who were arrested made their initial appearances in federal court in Farmington, N.M., this morning. Their arraignment hearings, which will take place in federal court in Albuquerque, N.M., have yet to be scheduled.
The investigation leading to the federal charges was initiated in response to an increase in methamphetamine trafficking on the Navajo Indian Reservation in the Shiprock area. The investigation identified eight defendants, who are charged in five indictments, through a series of methamphetamine purchases by undercover law enforcement officers. Law enforcement authorities seized more than two and a half pounds of methamphetamine, ten firearms, approximately $1,600 in cash and a vehicle during yesterday’s operation.
The investigation was designated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program. This Department of Justice program combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
“Methamphetamine continues to have a devastating impact on Native American families and communities,” said U.S. Attorney Damon P. Martinez. “This investigation is an example of how federal, state, local and tribal law enforcement agencies are working together to improve the safety of Native American communities and increase awareness of the dangers of methamphetamine.”
“HSI special agents have worked tirelessly the past year along with our partners to develop this investigation,” said Special Agent in Charge Waldemar Rodriguez of HSI El Paso. “These arrests demonstrate our resolve to identify and dismantle transnational organizations no matter where they attempt to hide.”
“We are very pleased to see the hard work of this joint investigation come to completion,” said Operations Sergeant Kevin Burns of the HIDTA Region II Narcotics Task Force. “We are confident the efforts of this investigation will make this community safer and hold narcotic traffickers accountable in San Juan County.”
The investigation resulted in the filing of indictments in the following federal cases:
The seven-count indictment filed in United States v. Arce, et al., 16-CR-1433 JAP, charges Miguel Rangel-Arce, 36, Luis Rangel-Arce, 44, and Rogelio Santiago Quiroa-Valdez with participating in a methamphetamine trafficking conspiracy between Nov. 2015 and March 2016, and with distributing methamphetamine on six occasions between Jan. 2016 and March 2016. The three defendants are Mexican nationals who have been residing in San Juan County. Miguel Rangel-Arce and Quiroa-Valdez were arrested yesterday. Luis Rangel-Arce has yet to be arrested and is considered a fugitive. If convicted, the defendants face the following statutory penalties: Miguel Rangel-Arce faces a mandatory minimum of ten years and a maximum of life in prison; Luis Rangel-Arce faces a mandatory minimum of five years and a maximum of 40 years in prison; Quiroa-Valdez faces a maximum of 20 years in prison. The three men also face deportation if convicted.
The indictment filed in United States v. Ruiz, et al., 16-CR-1432 WJ, charges Manuel Ruiz, 45, and Troy Begay, 36, both of Kirtland, N.M., with distributing methamphetamine in March 2016. Begay was arrested yesterday. Ruiz has yet to be arrested and is considered a fugitive. If convicted, Ruiz and Begay each face a statutory penalty of a mandatory minimum of five years and a maximum of 40 years in prison.
The indictment filed in United States v. Dennison, 16-CR-1431 JCH, charges Lewayne Dennison, 38, of Fruitland, N.M., with distributing methamphetamine in Oct. 2015. Dennison was arrested yesterday. If convicted, Dennison faces a statutory penalty of a mandatory minimum of five years and a maximum of 40 years in prison.
The indictment filed in United States v. Castor, et al., 16-CR-1430 JCH, charges Kirk Castor, 35, of Kirtland, N.M., with distributing methamphetamine on two occasions in April 2015. Castor was arrested yesterday. If convicted, Castor faces a statutory maximum penalty of 20 years in prison.
The indictment filed in United States v. Begay, 16-CR-1429 JCH, charges George Begay, 47, of Fruitland, N.M., with distributing methamphetamine in April 2014. Begay was arrested yesterday. If convicted, Begay faces a statutory maximum penalty of 20 years in prison.
Charges in indictments and complaints are merely accusations and defendants are presumed innocent unless convicted in a court of law.
Photographs of the two fugitives, Luis Rangel-Arce and Manuel Ruiz, are attached to this press release. Individuals with information on the whereabouts of these fugitives are asked to contact the HIDTA Region II Narcotics Task Force at 505-344-6622.
These cases were investigated by HSI’s Albuquerque office and the HIDTA Region II Narcotics Task Force with assistance from the Farmington office of the FBI, U.S. Marshals Service, and BIA’s Division of Drug Enforcement, Shiprock office of the Navajo Nation Division of Public Safety, New Mexico State Police, San Juan County Sheriff’s Office, Farmington Police Department, and New Mexico National Guard. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting the cases.
The HIDTA Region II Narcotics Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department, Aztec Police Department and HSI Albuquerque, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Detroit man pleads guilty to interstate heroin traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Keith Antonio Cohens, 35, of Detroit, Michigan, pled guilty to heroin trafficking today, United States Attorney William J. Ihlenfeld, II, announced.
Cohens was among fourteen individuals that participated in a drug trafficking operation in which heroin was transported across state lines from Michigan and redistributed and sold in West Virginia. Three federal indictments filed in February 2016 disrupted the heroin trafficking scheme.Specifically, Cohens sold heroin in November 2015 in Monongalia County, West Virginia. He pled guilty today to one count of “Distribution of Heroin.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force investigated.U.S. Magistrate Judge Michael John Aloi presided.
Des Moines Man Sentenced for Distributing Methamphetamine and Possessing FirearmsRead the Press Release
DES MOINES, IA – On May 10, 2016, Kevin Villalobos Guardado, of Des Moines, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 293 months in prison for conspiracy to distribute at least 50 grams of actual methamphetamine, 24 months in prison for illegal reentry into the United States, and 120 months in prison on two counts of being an illegal alien in possession of firearms, announced Acting United States Attorney Kevin E. VanderSchel. All sentences were ordered to run concurrently. Villalobos was ordered to serve five years of supervised release following his prison term and to pay $400 towards the Crime Victims’ Fund.
Villalobos was arrested as part of a coordinated law enforcement effort in August 2015, which targeted a large-scale drug trafficking organization and included the execution of numerous search and arrest warrants. According to the plea agreement, from April to August 2015, Villalobos sold methamphetamine and firearms to confidential informants and undercover agents. Villalobos is a citizen of El Salvador, who was illegally present in the United States following a prior removal or deportation.
This matter was investigated by the Iowa Division of Narcotics Enforcement and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Des Allemands Woman Pleads Guilty to Mail Fraud in Aftermath of BP Oil SpillRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MELISSA ANN DURAN, age 42, a resident of Des Allemands, pled guilty today before Judge Carl J. Barbier, to a one-count mail fraud indictment.
According to court documents, the Gulf Coast Claims Facility (GCCF) made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion that occurred on April 20, 2010. The GCCF required individuals to verify loss of income. On August 23, 2010, DURAN applied for disaster assistance funds, representing that she worked as seafood process for a commercial fisherman during for two years before the oil spill. However, DURAN had never worked as a seafood processor for the stated commercial fisherman, and she submitted or caused to be submitted false documentation to establish her false earnings. Based on her fraudulent application, DURAN received approximately $33,800 to which she was not entitled.
DURAN faces a maximum penalty of twenty years, a $250,000 fine, three years of supervised release following imprisonment, and a $100 special assessment. U.S. District Judge Carl J. Barbier set sentencing for August 18, 2016.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
Department of Justice Files Amicus Brief in Idaho Right to Counsel CaseRead the Press Release
The Department of Justice filed an amicus curiae brief late yesterday in the Supreme Court of Idaho in Tracy Tucker et al. v. State of Idaho, et al. The brief articulates the United States’ position that criminal defendants who cannot afford an attorney may bring a prospective civil lawsuit to prevent violations of their constitutional right to counsel under the Sixth Amendment rather than waiting to bring claims following a conviction that resulted from inadequate representation.
The department’s brief focuses on the importance of such prospective civil claims to uphold the right to counsel and to ensure that states comply with the Supreme Court’s ruling in Gideon v. Wainwright, which held that all persons are entitled to a lawyer even if they are too poor to pay for one.
“This country is dedicated to the idea that every single person is entitled to equal justice under the law, regardless of wealth or prominence,” said Attorney General Loretta E. Lynch. “The right to adequate counsel is an essential safeguard of our commitment to equal justice – and it is the responsibility of the states to protect that right, to uphold that principle, and to ensure that every defendant has access to competent counsel.”
“Our country and our Constitution guarantee all people – regardless of their money or their means – equal access to justice,” said Deputy Assistant Attorney General Gregory Friel of the Civil Rights Division. “Even today in the 21st century, too many poor defendants find that, in reality, the promise of Gideon seems distant and out of reach as they try to navigate our legal system and secure their rights.”
“Indigent defendants must have the ability to bring prospective civil claims for the constructive denial of counsel,” said Director Lisa Foster of the Office for Access to Justice. “Foreclosing this type of claim would prevent courts from effectively remedying systemic violations of Gideon.”
“The criminal justice system works well only when indigent defendants are adequately represented,” said U.S. Attorney Wendy Olson of the District of Idaho. “The Constitution guarantees this right. The purpose of this brief is to ensure that indigent defendants in Idaho have a meaningful legal tool to effectuate that constitutional right when the provision of public defense is failing on a system-wide level.”
In Tucker, plaintiffs allege that their Sixth Amendment right to counsel has been violated by the state’s failure to provide adequate resources to support effective defense services for poor defendants. According to plaintiffs, due to insufficient oversight, training and funding, public defenders across the state are unable to engage in many of the basic functions of representation, including meeting with clients in a meaningful way prior to critical stages of their legal proceedings, conducting a significant investigation into their cases, filing substantive motions, retaining experts to challenge the prosecution’s allegations or devoting the time necessary to prepare for hearings and trials. The plaintiffs claim that the conditions are systemic and widespread such that defendants in Idaho who cannot afford an attorney are constructively denied their right to counsel.
In its amicus brief, the department clarifies the distinction between filing a civil suit prior to conviction based on a state-wide constructive denial of counsel under Gideon, and a civil suit filed after conviction based on ineffective counsel in a particular instance under Strickland v. Washington. The amicus brief explains that the plaintiffs’ complaint “is not with their individual lawyers’ competence” but with the state’s systemic failure to provide legal representation to defendants who cannot afford it, a fundamental right recognized by the court in Gideon. The department’s brief also notes that there is no legal barrier to bringing such a civil suit prior to conviction, and moreover, that seeking prospective injunctive relief is the only way a court can identify and remedy system-wide noncompliance with Gideon.
The trial court ruled that plaintiffs could not bring a prospective civil claim for constructive denial of counsel. The Idaho Supreme Court will now consider whether plaintiffs’ claim can proceed.
This brief represents the department’s second filing to address the right to counsel in a state’s highest court. In September 2015, the department filed a similar brief in the Supreme Court of Pennsylvania in Adam Kuren, et al. v. Luzerne County et al. The Pennsylvania Supreme Court has not yet ruled in that case.
Tucker v. Idaho Amicus Brief
Davenport Man Found Guilty of Felon in Possession of a FirearmRead the Press Release
DAVENPORT, IA – On May 11, 2016, Xavier Elfonsto Buckner, age 27, of Davenport, Iowa, was found guilty after a three day jury trial presided over by Chief District Court Judge John A. Jarvey, announced Acting United States Attorney Kevin E. VanderSchel.
The jury found that on August 11, 2015, Buckner knowingly possessed a .380 caliber Smith and Wesson Bodyguard handgun that was manufactured outside of the state of Iowa. Evidence presented at trial described that Buckner possessed this handgun after a vehicle, in which Buckner was a passenger, fled from the Davenport Police Department. An Iowa Division of Criminal Investigation Criminalist testified that based on ballistics testing, the firearm seized from Buckner on August 11 was the same firearm connected to spent shell casings seized after an earlier shooting that occurred in the 700 block of W. 14th Street on August 3, 2015. Buckner was found to have a conviction in 2006 for a crime punishable by imprisonment for a term exceeding of one year.
This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhood initiative.
Credit Union Lending Manager Pleads Guilty to Embezzling $840KRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that PAMELA MALLORY, 42, of Enfield, waived her right to indictment and pleaded guilty today in Hartford federal court to embezzling more than $840,000 from her employer, 360 Federal Credit Union.
According to court documents and statements made in court, MALLORY was employed as the lending manager of Windsor Locks-based 360 Federal Credit Union. In her position, MALLORY had access to loan files and authorized loans, including home equity lines of credit (“HELOCs”). From 2009 through 2016, MALLORY opened five different HELOCs in the name of a credit union member and increased the credit limit of those HELOCs on at least 15 occasions, all without the knowledge or consent of the credit union member. Initially, MALLORY perpetrated this scheme by opening subsequent HELOCs to pay off earlier, smaller HELOCs. Later in the scheme, rather than opening new HELOCs, she simply increased the credit limits on two of the fraudulent HELOCs to support her spending.
In order to evade detection, MALLORY made minimum, interest-only payments on the HELOCs from her own checking account.
When 360 Federal Credit Union discovered the scheme in January 2016, the credit union member’s property, which is worth less than $150,000, supported two HELOCs, each with credit limits of $417,000, that MALLORY had fully drawn down.
In total, MALLORY stole approximately $840,378.28 from 360 Federal Credit Union and used the proceeds of the scheme to pay her own creditors.
MALLORY pleaded guilty to one count of embezzlement by a credit union employee, a charge that carries a maximum term of imprisonment of 30 years. She is scheduled to be sentenced on August 17, 2016, and is released on a $100,000 bond.
This matter is being investigated by Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Concord Man Pleads Guilty to May 2015 Robbery of Bank of New HampshireRead the Press Release
Concord, N.H.—Emily Gray Rice, United States Attorney for the District of New Hampshire, today announced that Scott Lojko, 40, of Concord, New Hampshire, pleaded guilty to a federal indictment charging him with bank robbery in violation of Title 18, United States Code, Section 2113(a).
According to the indictment, statements made in court, and other public records in the case, Lojko robbed a Bank of New Hampshire branch location at 167 N. Main Street, Concord, New Hampshire on May 18, 2015. Lojko approached the teller with a demand note directing her to “relax and act normal” and to hand over “all the money.” The teller complied, providing Lojko approximately $6,090 in bank funds. Lojko fled the bank by foot before retrieving his parked vehicle on nearby Court Street. Concord Police detectives were able to identify Lojko from bank and other surveillance with the assistance of several civilian resources. A few days later, a search warrant executed at Lojko’s Concord residence led to the recovery of the clothes Lojko wore during the robbery as well as $4,510 in U.S. currency that constituted the remaining proceeds of the robbery. A federal indictment charging Lojko with bank robbery was returned by a grand jury sitting in Concord on August 21, 2015.
Lojko’s plea agreement includes a binding stipulated sentence of 48 months’ incarceration. A sentencing hearing has been scheduled for August 23, 2016, in front of U.S. District Judge Landya McCafferty. At that time, the Court will decide whether to accept the plea agreement and impose the agreed-upon period of incarceration, as well as any other conditions of Lojko’s sentence. Lojko also faces a mandatory restitution order to the Bank of New Hampshire.
The case was investigated by the Concord Police Department with assistance from the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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Cocoa Man Charged with Sex Trafficking and Child EnticementRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Kennedy “KJ” Harris, Jr. (22, Cocoa) with sex trafficking of a minor and child enticement. If convicted, he faces a maximum penalty of life in federal prison.
According to court documents, in January 2016, Harris took in a 16-year old girl, after she ran away from home. He promised to keep her safe, and to clothe and feed her. Instead, Harris took sexually suggestive photographs of the girl and posted ads online advertising her for sex. He also enticed the teen to engage in sexually explicit conduct for the purpose of photographing her. Over the course of approximately two weeks, the victim had sex with four to five men per day, and gave the money she received to Harris. On February 10, 2016, the victim was recovered by the Cocoa Police Department.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
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 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 locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation, the Brevard County Sheriff’s Office, and the Cocoa Police Department. It will be prosecuted by Assistant United States Attorney Tiffany L. Cummins.
Chambersburg Man Pleads Guilty to Heroin Conspiracy ChargeRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Chambersburg man has pled guilty to conspiring to possess and distribute heroin.
According to United States Attorney Peter Smith, Rashawn Spriggs, age 28, of Chambersburg, pled guilty before United States District Court Chief Judge Christopher C. Conner to conspiring to distribute more than 1,000 grams of heroin from October 1, 2015 to January 7, 2016 in Franklin County and elsewhere.
Sentencing is deferred pending the preparation of a presentence report. Co-defendant Jerthione Bell has already pled guilty and is also awaiting sentencing. Co-defendants Addan Brito-Torres, Yovelin Mendez-Marte, Jose Perez-Delgado, Joshua Baker, Brandon Morant and Deajon Spriggs are all awaiting trial. All were indicted by a federal grand jury in January 2016.
The investigation is being conducted by the Harrisburg Office of the Drug Enforcement Administration, the Pennsylvania State Police and the Lancaster and Franklin County Drug Task Forces. The case is being prosecuted by Assistant United States Attorney William A. Behe.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is life imprisonment with a mandatory minimum 10 year term of imprisonment, a term of supervised release following imprisonment, and a fine.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Carbondale Man Sentenced to 78 Months in Prison for Receiving Child PornographyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 27-year-old Carbondale man was sentenced today to 78 months in prison by Senior U.S. District Court Judge Richard P. Conaboy in Scranton, for using a computer to download child pornography from an internet website.
According to United States Attorney Peter Smith, the defendant, Edward Jeter, previously pleaded guilty to receiving child pornography between the dates of November 2014 and August 2015. Agents executed a search warrant and found more than 90 videos and more than 2100 images of child pornography on Jeter’s computer, including images of children between the ages of 3 and 14 being sexually molested by adults.
Jeter was charged in a criminal Information filed by the United States Attorney in November 2015, as a result of an investigation conducted by the Federal Bureau of Investigation.
Judge Conaboy also ordered Jeter to serve five years on supervised release after serving his prison sentence. Jeter must also register as a sex offender, receive sex offender treatment, and abide by restrictions on associating with minors.
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 prosecuted the case.
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Buffalo Man Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Jonathan Ortiz, 23, of Buffalo, NY, pleaded guilty to attempted possession with intent to distribute cocaine before U.S. District Judge Elizabeth A. Wolford. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Wei Xiang, who is handling the case, stated that law enforcement officers intercepted a package mailed from Puerto Rico to a residence on Hudson Street in Buffalo. The package contained a set of audio speakers, inside of which were four packets of cocaine weighing approximately one pound (one-half a kilogram). Ortiz and co-defendant Ivan Hernandez attempted to retrieve the package as it was delivered. The defendants were arrested after a sensor alerted that the package was opened.
Hernandez was convicted and sentenced to 30 months in prison.
Today’s plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division and the U.S. Postal Inspection Service, under the direction of Shelly Binkowski, Inspector in Charge of the Boston Division.
Sentencing is scheduled for August 24, 2016, at 11:00 a.m. before Judge Wolford.
Bristol Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
ABINGDON, VIRGINIA – A previously convicted sex offender, who moved from Georgia to Virginia without properly fulfilling the registration requirements for sex offenders, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon after previously pleading guilty.
Scott Stewart Cammorto, 36, of Bristol, Va., pled guilty in December 2015 to one count of knowingly failing to register as sex offender. Today in District Court, Cammorto was sentenced to 41 months’ imprisonment, to be followed by 8 years’ supervised release.
“The registration and monitoring of sex offenders is an important tool for protecting the community and keeping our citizens safe,” United States Attorney John P. Fishwick Jr. said today. “When individuals fail to fulfill their requirements under the rules of that ystem they must be held accountable.”
According to evidence presented by Special Assistant United States Attorney Kevin Jayne, in 1999 Cammorto was convicted in Georgia of rape and related offenses which required him to register as a sex offender. Upon his release from prison in 2013, Cammorto registered as a sex offender in Georgia. But in January 2014, Cammorto moved without updating his sex offender registration or otherwise notifying Georgia authorities. Georgia issued a warrant for his arrest.
In April 2015, Cammorto and his then-girlfriend moved from Georgia to Bristol, Virginia and established residency there. Again, Cammorto did not update his sex offender registration in Georgia and did not register as a sex offender in Virginia. Cammorto was arrested by Bristol, Virginia authorities in May 2015 after Cammorto was involved in a domestic dispute.
The investigation of the case was conducted by the United States Marshals Service. Special Assistant United States Attorney Kevin L. Jayne prosecuted the case for the United States.
Baton Rouge Attorney Charged with Distribution and Possession of Child PornographyRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned an indictment charging CHRISTOPHER G. YOUNG, age 53, of Baton Rouge, Louisiana, with distribution of child pornography and possession of child pornography.
According to the Indictment, YOUNG was the part-owner of a hotel in the country of Costa Rica, where he traveled frequently for business and leisure. YOUNG allegedly received two videos depicting prepubescent boys engaging in bestiality from an associate in Costa Rica. From 2013 through 2015, YOUNG allegedly distributed the child pornography videos to approximately 38 different individuals, on 33 separate occasions, through his smart phones.
The case is being investigated by the Federal Bureau of Investigation. This matter is being prosecuted by Assistant United States Attorneys Cam T. Le and René I. Salomon.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Barbour County Man Sentenced to 84 Months in Federal Prison for Receipt of Child PornographyRead the Press Release
Montgomery, Alabama – William Ray George (46), a resident of Clayton, Alabama, was sentenced to 84 months in federal prison for receipt of child pornography, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama.
In August of 2015, George pled guilty to receiving child pornography. The conviction stemmed from George’s collection of child pornography that contained images and videos of child sexual abuse. George received the child pornography through a peer-to-peer file sharing program, eMule. When interviewed by law enforcement, George admitted to viewing child pornography for the past thirteen years.
Chief United States District Judge W. Keith Watkins sentenced George to 84 months in federal prison to be followed by a life term of supervised release. George remains on bond and will turn himself into the Bureau of Prisons in June 2016.
“Receiving and viewing child pornography victimizes innocent children and cannot be tolerated,” stated U.S. Attorney Beck. “Child pornography poses a danger to the entire community because it exploits what should be our greatest treasure, our children.”
"ALEA is committed to teaming with our federal and local partners to investigate those who prey on our children," said Secretary of Law Enforcement, Stan Stabler.
This case was investigated by the Alabama State Bureau of Investigation. Assistant United States Attorneys Hollie Worley and Curtis Ivy prosecuted the case.
Avoca Man Sentenced to Two Years’ Imprisonment for Providing False Information to Firearms Dealers in Connection with Firearms PurchasesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kevin Barnes, age 27, of Avoca, Pennsylvania, was sentenced today to serve two years in federal prison by U.S. District Court Judge Robert D. Mariani for providing false information to federally licensed firearms dealers in connection with his purchase of 10 firearms.
According to U.S. Attorney Peter Smith, in February 2015, Barnes entered a guilty plea to a charge in an Indictment which alleged he made false statements in completing ATF forms between November 7, 2011, and May 14, 2013. The defendant admitted that on ten separate occasions between those dates, he falsely stated when buying firearms that he was not an unlawful user of controlled substances. Under federal law, unlawful users of controlled substances are prohibited from purchasing and possessing firearms.
In addition to the two-year imprisonment sentence, Judge Mariani ordered Barnes to be placed on two years of supervised release following service of his prison sentence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Todd Hinkley prosecuted the case.
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Armed Career Criminal from Albuquerque Pleads Guilty to Violating the Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Jose Velasquez, 29, of Albuquerque, N.M., pleaded guilty today in federal court to violating the federal firearms laws. Under the terms of his plea agreement, Velasquez will be sentenced to 15 years in federal prison. The guilty plea was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD).
Velasquez, a career criminal whose prior felony convictions for armed robbery and aggravated battery on a peace officer, is being prosecuted under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
Velasquez was arrested on state charges on Aug. 4, 2015, and subsequently was charged in a federal criminal complaint on Aug. 17, 2015, with being a felon in possession of a firearm and ammunition. The state charges were dismissed in favor of federal prosecution.
Court records reflect that on Aug. 4, 2015, APD officers went to the area of Sunshine Terrace SE and University Blvd. SE in Albuquerque in response to a report that an armed man was making statements about getting into a “shoot … out with cops” and claiming that “the feds were after [him].” They arrested Velasquez on state charges after observing him walking around with a firearm. The officers found a semiautomatic pistol, ammunition and a small quantity of heroin in Velasquez’s pants pocket during a search incident to arrest. Velasquez subsequently was indicted and charged with being a felon in possession of a firearm and ammunition.
During today’s proceedings, Velasquez pled guilty to the indictment and admitted that he unlawfully possessed a firearm on Aug. 4, 2015. Velasquez has been in custody since his arrest and remains detained pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the ATF’s Albuquerque office and APD with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorneys Paul Mysliwiec and George C. Kraehe are prosecuting the case.
Another Defendant Pleads Guilty to Methamphetamine Conspiracy ChargeRead the Press Release
ROANOKE, VIRGINIA – The third member of a conspiracy that distributed methamphetamine in the Western District of Virginia pled guilty yesterday in the United States District Court for the Western District of Virginia in Roanoke, United States Attorney John P. Fishwick announced today.
Sandra Gail Rymer, 35, of Dallas, Georgia pled guilty yesterday in District Court to one count of conspiring to distribute 50 grams of a mixture containing methamphetamine.
“Members of this conspiracy contributed to the growing threat of methamphetamine abuse throughout Southwest Virginia,” United States Attorney John P. Fishwick Jr. said today. “We will continue to be vigilant in working with our partners in law enforcement to combat this growing threat.”
The investigation of the case was conducted by the Drug Enforcement Administration, the Virginia State Police, the Wythe County Sheriff’s Office, the Smyth County Sheriff’s Office and the United States Marshals Service. Assistant United States Attorney Andrew Bassford prosecuted the case for the United States.
Allen Man Indicted for Failure to RegisterRead the Press Release
United States Attorney Randolph J. Seiler announced that an Allen, South Dakota, man has been indicted by a federal grand jury for Failure to Register.
Charles Tallman, a/k/a Charles Lee Longman, age 31, was indicted on October 20, 2015. Tallman appeared before U.S. Magistrate Judge Daneta Wollmann on May 6, 2016, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Tallman failing to register and update his registration as a convicted sex offender between February 24, 2014, and October 20, 2015.
The charge is merely an accusation and Tallman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Tallman was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Alaska Man Sentenced to 6½ Years in Prison for Trafficking Oxycodone and MorphineRead the Press Release
SACRAMENTO, Calif. —Charles Connor, 35, of Anchorage, Alaska, was sentenced today by United States District Judge Troy L. Nunley to six years and six months in prison for conspiracy to distribute and to possess with intent to distribute oxycodone, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, on December 17, 2012, the United States Postal Service in Anchorage intercepted a package sent to Connor from co-defendant Stacy Mistler, a resident of Marysville, California. The package contained 300 oxycodone 30‑mg tablets. Law enforcement delivered the package to Connor and then arrested him.
Further investigation revealed that between November 7, 2011, and December 17, 2012, Mistler sent prescription drugs from Northern California to Connor in Alaska. Connor made deposits into Mistler’s bank account to pay for the pills. In total, Mistler shipped approximately 9,600 pills to Connor. About two-thirds of the pills were oxycodone and one‑third of the tablets were morphine. In exchange for the pills, Connor deposited approximately $125,000 into Mistler’s bank account.
On April 21, 2016, Judge Nunley sentenced Mistler to 35 months in prison.
This case was the product of an investigation by the Drug Enforcement Administration, the United States Postal Service, the Alaska State Troopers, the California Department of Justice Bureau of Medi-Cal Fraud & Elder Abuse, the U.S. Department of Health & Human Services, and the U.S. Marshals Service. Assistant United States Attorney Christiaan Highsmith prosecuted the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. OCDETF’s principal mission is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
11 May 2016
York Resident Sentenced for Heroin TraffickingRead the Press Release
HARRISBURG - The United States Attorney's Office for the Middle District of Pennsylvania announced that Andrew Gonzalez, age 30, York, Pennsylvania, was sentenced today to 15 months in prison by U.S. District Court Judge Yvette Kane for his role in a heroin trafficking scheme operated out of a York City home.
According to United States Attorney Peter Smith, the charge arose from a search warrant executed in March 2013 by York City Police. During the search, police found 35 grams of crack cocaine, cocaine, and heroin. The majority of the heroin – 900 bags – were found floating in a toilet.
Andrew Gonzalez and co-defendant Veronica Rivera pled guilty to conspiracy to distribute drugs. A third defendant, Andrew Alexander, was convicted last month after a jury trial. Ms. Rivera was sentenced to two years in prison on May 4, 2016. Alexander is awaiting sentencing.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department. Assistant United States Attorneys Michael A. Consiglio and Scott Ford prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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Wheeling Park Speech and Debate Program recognized for winning legacyRead the Press Release
WHEELING, WEST VIRGINIA – During an awards ceremony held this week in Wheeling, United States Attorney William J. Ihlenfeld, II recognized the Wheeling Park High School Speech and Debate Program for its longstanding tradition of excellence in academic achievement and its dedication to the personal and professional development of local students.
Nearly four decades ago, Frances Schoolcraft, then a teacher at Triadelphia High School, cultivated a group of students that excelled in academics, leadership, and public speaking. That group would evolve to become the Wheeling Park High School Speech and Debate Program. Schoolcraft led the program for twenty-five years and sparked a tradition of excellence. The program has won 224 tournaments and earned the West Virginia State Speech and Debate Tournament championship every year since 1980.
The Wheeling Park High School Speech and Debate Program has developed into a true dynasty. This year’s team was undefeated, winning nine tournaments throughout West Virginia and Pennsylvania. As a crowning achievement to a dominant season, the program earned its thirty-seventh consecutive state championship. Under the visionary leadership of Frances Schoolcraft, the program claimed twenty-five consecutive state titles. Wheeling Park High School teacher William Cornforth has continued to build the program’s legacy, winning another twelve successive state championships.
Alumni of the program have gone on to take center stage under the bright lights of Broadway, pursue Ivy League educations, appear on nationally recognized television programs, and become exemplary leaders in communities across the country. Teams and individual competitors have also enjoyed success in national high school speech and debate competitions. Earning a spot on the Wheeling Park Speech and Debate Team has become such a coveted accomplishment that the program has implemented a competitive process to select students for the team. Forty-three students represented the program during the 2015-2016 academic year.
The United States Attorney’s Awards ceremony was held at the United States Courthouse in Wheeling on Monday. Wheeling Park High School Speech and Debate Program founder Frances Schoolcraft attended the ceremony and helped accept the award.
Pictured from left to right: William J. Ihlenfeld, II, United States Attorney; Dianna Vargo, Superintendent of Ohio County Schools; Amy Minch, Principal of Wheeling Park High School; Joshua Fromhart, Debate Coach and Teacher at Wheeling Park High School; Frances Schoolcraft, Founder and Former Coach of Speech and Debate Team at Wheeling Park High School; Philip Schwarz, Co-captain of Speech Team; Hannah Meredith, Co-captain of Speech Team; Danielle Kaminski, Co-captain of Debate Team; James Miller, III, Co-captain of Debate Team
Washington, Pa., Man Pleads Guilty to Drug OffenseRead the Press Release
PITTSBURGH – A Washington County man pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Kenneth Marcel Higgenbotham, age 50, formerly of Washington, PA, pleaded guilty yesterday to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that from in and around October 2013, and continuing until in and around April 2014, in the Western District of Pennsylvania, Higgenbotham conspired to distribute and possess with intent to distribute more than 28 grams, but less than 112 grams, of crack cocaine.
Judge Hornak scheduled sentencing for September 27, 2016, at 1:30 p.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Troy Rivetti is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the FBI Greater Pittsburgh Safe Street Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Police Department conducted the investigation leading to the prosecution of Higgenbotham.
Violent Gang Members Sentenced in Drug Conspiracy in Bladen and Columbus CountiesRead the Press Release
RALEIGH – The United States Attorney’s Office announced that in federal court today SHAWN SCHENCK, of Clarkton, North Carolina, was sentenced by Senior United States District Judge Malcolm J. Howard, to 276 months after having pled guilty to Continuing Criminal Enterprise, in violation of Title 21, United States Code Section 848. Schenck was subject to a mandatory minimum sentence of twenty (20) years for his crimes.
SCHENCK was the leader of the PIRU MOB gang operating within Columbus and Bladen Counties. He was charged along with seven other co-defendnats, who also pled guilty and were sentenced by Judge Howard. ANTHONY JEROME MCLEAN pled guilty to Continuing Criminal Enterprise, in violation of Title 21, United States Code, Section 848, and was sentenced to 168 months in federal prison; JAMES CALVIN QUINN, ORLANDO RASHAUD CHILDRESS and HASKELL TURER WILLIAMS all pled guilty to possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(a), and were sententeced to terms of imprisonment of eighty-four (84) months each; MALCOLM HARVEY pled guilty to conspiracy to distribute heroin, in violation of Title 21, United States Code, Section 846, distribution of heroin, in violation of Title 21, United States Code, Section 841(a)(1), and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(a), and was sentenced to a term of imprisonment of sixty-two (62) months; HARRY LANE HARDIE, JR., pled guilty to possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(a), and was sentenced to a term of imprisonment of sixty (60) months; and COREY SCOTT ALFORD pled guilty to conspiracy to distribute heroin, in violation of Title 21, United States Code, Section 841(a)(1), and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(a), and was sentenced to a term of imprisonment of forty-six (46) months imprisonment in federal prison.
The PIRU MOB, a set of the United Blood Nation operating in Columbus and Bladen Counties, had a large distribution operation, supplying heroin, cocaine, and and prescription opioids in the Clarkton, North Carolina area. This drug distribution was often accompanied by violent shootings and retaliatory acts against rival gang members. SCHENCK and MCLEAN both ordered multiple hits on individuals who affected their drug distribution operation. These orders resulted in the shooting of at least one individual and the attempted shooting of several others. Gang members were initially arrested after making a drug run to Kannapolis, North Carolina, when investigators learned that they were bringing back a gang enforcer to finish a hit on a local rival.
“This type of gang violence is intolerable,” said Acting U.S. Attorney John Stuart Bruce. “The United States Attorney’s Office is committed to dismantling drug trafficking organizations such as this one, and ensuring that their members cannot perpetrate violent acts that jeopardize the safety of our communities.”
Columbus County Sheriff’s Office greatly appreciates the assistance provided by Bladen County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Federal Bureau of Investigation; and the United States Attorney’s Office in getting these gang members off of Columbus County streets. Utilizing mutual aid optimizes the results of any investigation. Sheriff Hatcher is committed to ensuring that Columbus County residents feel safe and secure in their own environment. Sheriff Hatcher added, “Gang violence will not be tolerated in Columbus County.”
“This is a perfect example of when multiple agenies work together to combat the gang and drug problems in our two counties. I would like to extend my greatest appreciation to the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Columbus County Sheriff’s Office,” stated Bladen County Sheriff Jim McVicker.
Investigation of this case was conducted by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Columbus County Sheriff’s Office, and the Bladen County Sheriff’s Office. Assistant United States Attorney Leslie K. Cooley prosecuted the case for the United States.
Uzbeki National Charged with Conspiring and Attempting to Provide Material Support to ISILRead the Press Release
Defendant Allegedly Contributed Funds to Send a Co-Conspirator Overseas to Join ISIL and to Finance the Purchase of a Firearm Once the Co-Conspirator Arrived in Syria
A superseding indictment was unsealed in the Eastern District of New York charging Azizjon Rakhmatov, 28, an Uzbeki national, with conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and conspiring to use a firearm.
The charges were announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Robert L. Capers of the Eastern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office, Commissioner William J. Bratton of the New York City Police Department (NYPD) and Special Agent in Charge Angel M. Melendez of U.S. Immigration and Customs Enforcement-Homeland Security Investigations (HSI) New York.
Rakhmatov, who is charged with four others whose arrests and indictments have previously been announced, is scheduled to be arraigned at 2:00 p.m. today before U.S. Magistrate Judge James Orenstein of the Eastern District of New York at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
As alleged in the third superseding indictment and other court filings, the investigation began when Abdurasul Juraboev, one of Rakhmatov’s co-conspirators, came to the attention of law enforcement. On an Uzbek-language website that propagates ISIL’s ideology, Juraboev posted an offer to engage in an act of martyrdom on U.S. soil on behalf of ISIL, such as killing the President of the United States. The investigation subsequently revealed that Juraboev and another co-defendant, Akhror Saidakhmetov, planned to travel to Turkey and then to Syria for the purpose of waging violent jihad on behalf of ISIL. Saidakhmetov was arrested on Feb. 25, 2015, at John F. Kennedy International Airport, where he was attempting to board a flight to Istanbul. Juraboev previously purchased a plane ticket to travel from New York to Istanbul and was scheduled to leave the United States in March 2015. Rakhmatov and three other co-defendants – Abror Habibov, Dilkhayot Kasimov and Akmal Zakirov – are charged with funding Saidakhmetov’s efforts to join ISIL. Juraboev pleaded guilty on Aug. 14, 2015, to conspiring to provide material support to ISIL.
As alleged in the third superseding indictment and other court filings, Rakhmatov helped to fund Saidakhmetov’s efforts to join ISIL. Specifically, Rakhmatov and Habibov discussed providing their own money to cover Saidakhmetov’s travel expenses and to purchase a firearm for Saidakhmetov once he arrived in Syria. Rakhmatov also agreed to raise money from others to fund Saidakhmetov’s travel. In the week leading up to Saidakhmetov’s scheduled departure, Rakhmatov transferred money into Zakirov’s personal bank account, which was intended to facilitate Saidakhmetov’s travel to join ISIL.
If convicted, Rakhmatov faces a maximum sentence of 50 years in prison. The charges in the superseding indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
Assistant Attorney General Carlin joined U.S. Attorney Capers in extending his grateful appreciation to the FBI’s Joint Terrorism Task Force, the FBI New Haven Division and the U.S. Attorney’s Office of the District of Connecticut.
The case is being prosecuted by Assistant U.S. Attorneys Alexander A. Solomon, Douglas M. Pravda and Peter W. Baldwin of the Eastern District of New York, with assistance provided by Assistant U.S. Attorney Stephen Reynolds of the District of Connecticut and Trial Attorney Danya Atiyeh of the National Security Division’s Counterterrorism Section.
Rakhmatov Indictment
Two defendants appear in Federal court on drug chargesRead the Press Release
CHARLESTON, W.Va. – Two defendants appeared in federal court today on drug charges, announced Acting United States Attorney Carol Casto. Sarah Elizabeth Myers, 28, of South Charleston was sentenced to two-and-a-half years in federal prison and fined $5,000 for possession with intent to distribute heroin. In a separate drug prosecution, Daniel Branden O’Dell, 35, of Winston, Georgia, pleaded guilty to possession with intent to distribute methamphetamine.
Myers previously pleaded guilty and admitted that on May 15, 2015, she traveled to Columbus to pick up a supply of heroin. When she returned to West Virginia, law enforcement stopped her for speeding. During the stop, officers found over 100 grams of heroin hidden in the rear passenger side door panel. Myers admitted it was her intent to distribute the heroin in the Charleston area.
On October 30, 2015, in a separate drug prosecution, members of the Nicholas County Sheriff’s Department and the Summersville Police Department arrested O’Dell at a hotel in Summersville as part of a stolen vehicle investigation. Upon searching the room, police found methamphetamine and a loaded .45 caliber pistol that had been reported as stolen. O’Dell admitted driving from Georgia to Pennsylvania, where he intended to sell the methamphetamine. He further admitted purchasing the stolen firearm in Georgia. O’Dell has a lengthy criminal record that includes three felony drug convictions. Pursuant to the plea agreement, O’Dell faces between 30 and 46 months when he is sentenced on August 11, 2016.
The Myers case was investigated by the South Charleston Police Department and the Drug Enforcement Agency Task Force. Assistant United States Attorney Timothy D. Boggess is responsible for the prosecution of Myers. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
The Nicholas County Sheriff’s Department and the Summersville Police Department investigated the O’Dell case. Assistant United States Attorney Joshua Hanks is in charge of the O’Dell prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
The O’Dell case was prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
Both cases were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of drugs in communities across the Southern District.
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Two Indicted for Making False Claims to the BP Oil Spill Settlement FundRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III the return of indictments charging Marque Amason (49) and William Soong (27, both of Fort Myers Beach, with fraud-related offenses in connection with their submission of false claims to British Petroleum (“BP”) Deepwater Horizon oil spill settlement fund. Amason is charged with one count of wire fraud, and Soong is charged with one count of mail fraud. If convicted, each faces a maximum penalty of 20 years in federal prison.
According to the indictment, Soong submitted a claim to the BP Deepwater Horizon oil spill settlement fund seeking payment for damages he allegedly had sustained as a boat captain. However, Soong was not, and had not been, a boat captain and was not entitled to the payment that he sought and received.
According to a second indictment, Amason submitted a claim to the BP Deepwater Horizon oil spill settlement fund seeking payment for damages he allegedly had received as a boat captain. To support his claim for damages, he falsely and fraudulently claimed that he had been a shrimp boat captain during a particular time period. However, Amason was actually incarcerated during a portion of that same time period.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. It will be prosecuted by Assistant United States Attorneys David G. Lazarus and Sara Sweeney.
Three Plead Guilty to Fraud of Nearly $4 Million from Lawrence County BankRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and Special Agent in Charge Diane Upchurch, of the Little Rock Field Office for the Federal Bureau of Investigations (FBI) announced today that Brenda Montgomery, 57, of Walnut Ridge, Peggy Sutton, 61, of Biggers, and Cindy Tate, 57, of Walnut Ridge, have all pleaded guilty to a felony information charging them with conspiracy to commit bank fraud. The three admitted to stealing nearly $4 million from First National Bank of Lawrence County, Arkansas.
Montgomery and Tate pleaded guilty on Tuesday and Sutton on Wednesday before United States District Judge Kristine G. Baker, who will sentence them at a later date. Judge Baker conditionally accepted each defendant’s guilty plea subject to receiving the presentence reports for the defendants. Pursuant to a plea agreement with the United States, each defendant is responsible for $1,317,000 in restitution to the bank.
The felony information charged that the three conspired with each other from 2005 through in or about April 2015 to fraudulently obtain approximately $3,953,025 from the First National Bank of Lawrence County, Arkansas. According to the facts read at the hearings, Montgomery, Sutton, and Tate were long-time employees of the bank who, using their positions, acted together to conceal the theft of money from the vault of the bank’s main office in Walnut Ridge.
Tate had advance notice of internal audits and would arrange with Montgomery or Sutton to have cash transferred temporarily to the main vault from other branches of the bank, or from other corresponding banks, so that it would appear to the auditors that the count of cash on hand in the main vault was correct. Once the auditors had completed the count, Tate, Sutton, or Montgomery saw to it that cash which had been temporarily moved to the vault was then returned to the other branches or to the corresponding bank.
In April 2015, officials in management at First National became suspicious of the defendants’ conduct and arranged for a surprise cash count of the vault contents, at which time a shortage became apparent. A forensic audit confirmed that the three defendants had stolen bank funds by materially over representing the amount of cash on hand in the bank by $3,953,025.
The statutory penalties for conspiracy to commit bank fraud, in violation of 18 U.S.C. § 1349, include imprisonment of not more than 30 years, a $1,000,000 fine, five years supervised release, and a $100 special assessment. The defendants have been allowed to remain free on bond pending sentencing.
Three Doctors Indicted for Illegally Selling Prescriptions of Suboxone and KlonopinRead the Press Release
PHILADELPHIA – An indictment was filed today charging three doctors in a scheme to sell commonly abused prescription drugs in exchange for cash payments. Charged in the conspiracy are: Dr. Alan Summers, 78, of Ambler, PA; Dr. Azad Khan, 63, of Villanova, PA; and Dr. Keyhosrow Parsia, 79, of Ridley Park, PA. The indictment includes charges of conspiracy to distribute controlled substances, distribution of controlled substances, health care fraud, and money laundering and was announced by United States Attorney Zane David Memeger, Drug Enforcement Administration Special Agent-in-Charge Gary Tuggle, and Special Agent-in-Charge Nick DiGuilio with Health and Human Services Office of Inspector General.
The indictment alleges that Dr. Summers operated a medical clinic on South Broad Street in Philadelphia, and sometimes operated under the business name “NASAPT” (National Association for Substance Abuse-Prevention & Treatment). Dr. Summers employed numerous other doctors, including Dr. Azad Khan and Dr. Keyhosrow Parsia. The defendants sold prescriptions for Suboxone and Klonopin in exchange for cash payments. Suboxone is a brand name for a drug used to treat opiate addiction. None of the defendants conducted medical examinations or mental health examinations as required by law in order to legally prescribe these controlled substances. Dr. Summers also assisted his customers in obtaining health insurance benefits for these illegally prescribed controlled substances by providing false information to health insurance companies so that his customers could fill the prescriptions using their health insurance. Many of the customers who frequented this clinic were, in fact, drug dealers or drug addicts who sold the prescribed medications. During the duration of the conspiracy, Dr. Summers illegally sold over $5 million worth of controlled substances.
“We have a public health crisis in this county involving prescription drug abuse that is exacerbated by doctors like these defendants,” said Memeger. “Every doctor who abandons his or her ethics to engage in the prescription-for-pay culture is breaking the law. They need to ask themselves whether it is worth the money to put people in danger, to risk the loss of their medical licenses, and to lose their freedom. Our office will continue to investigate and prosecute those individuals whose unscrupulous and illegal conduct contributes to this deadly epidemic.”
“These doctors capitalized on the addiction epidemic that is typically responsible for numerous deaths across our region,” said Tuggle. “The DEA will remain vigilant in pursuing investigations in an effort to combat this serious public health crisis.”
“Doctors who enable addicts betray their profession,” said DiGiulio. “In this case it is alleged the defendants were illegally prescribing dangerous controlled drugs and causing government health care programs to pay for the unnecessary prescriptions, which is health care fraud. We will continue to work with our partners to dismantle dangerous pill mills, protect government funds, and keep the public safe.”
If convicted of all charges, each defendant faces a possible prison term, fines, restitution, special assessments, and a term of supervised release.
The case was investigated by the Drug Enforcement Administration, the Department of Health and Human Services Office of the Inspector General, and the Internal Revenue Service Criminal Investigations, with assistance from the Philadelphia Police Department and the Pennsylvania Bureau of Narcotics Investigations. It is being prosecuted by Assistant United States Attorney Robert Livermore.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Stoneham Trash Hauler Pleads Guilty to Tax EvasionRead the Press Release
BOSTON – A Stoneham businessman pleaded guilty today in U.S. District Court in Boston to tax evasion in connection with under-reporting more than $800,000 in gross receipts.
Robert Sinclair, 72, owner of Sinclair Trucking in Stoneham, Mass., pleaded guilty to attempting to evade taxes. U.S. District Judge Richard G. Stearns scheduled sentencing Aug. 10, 2016.
For many years, Sinclair owned and operated a waste management and trash hauling business in Stoneham. Some of his larger customers reported the payments they made to Sinclair on tax return form 1099 which they submitted to the IRS and to Sinclair, while smaller customers did not report the payments they made to Sinclair on Forms 1099. When Sinclair filed his tax returns, he generally reported only the amounts he had been paid by customers who provided Forms 1099, but not the payments from his customers who did not produce a Form 1099.
During audits of his tax returns in 2005, 2007, 2008, and 2009, IRS agents questioned Sinclair about discrepancies between the amounts he reported on his tax returns and the amounts he deposited into his business bank account. Sinclair falsely told the agents that the discrepancies were due to cash loans from a relative, when in fact, all of the deposits into the business bank account during these tax years were checks from customers. As a result, Sinclair evaded $239,446 in taxes.
The charge of tax evasion provides a sentence of no greater than five years in prison, three years of supervised release, a fine of $250,000, or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.
St. Joseph Man Sentenced to 15 Years for Large-Scale Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Joseph, Mo., man was sentenced in federal court today for role in a large-scale conspiracy that distributed more than 15 kilograms of methamphetamine in St. Joseph and across a four-state region.
Shannon Wayne Martinez, also known as “Big Homie,” 39, of St. Joseph, was sentenced by U.S. Chief District Judge Greg Kays to 15 years in federal prison without parole. The court also ordered Martinez to pay a money judgment of $444,000, which reflects the amount of methamphetamine for which Martinez was responsible (6.8 kilograms, or 240 ounces) at a street price of $1,850 per ounce. In total, the conspiracy was responsible for distributing nearly $1 million worth of methamphetamine.
In 2010, the Buchanan County Drug Strike Force and the Drug Enforcement Administration initiated an investigation into a drug-trafficking organization distributing methamphetamine in northwest Missouri, northeast Kansas, southern Iowa and Nebraska.
On Nov. 17, 2015, Martinez pleaded guilty to participating in a conspiracy to distribute methamphetamine and to participating in a money-laundering conspiracy. Martinez admitted that he procured pound quantities of methamphetamine from sources in Kansas City, Mo., which he then distributed to co-conspirators.
Martinez was the head of a drug-trafficking organization that included co-defendants in the St. Joseph area. Martinez and others used Rick’s Upholstery Shop in St. Joseph, owned by co-defendant Ricky Alan Angst, 59, of Amazonia, Mo., as a front for drug trafficking. Angst has pleaded guilty to maintaining a drug premises and awaits sentencing.
Martinez is among 24 defendants charged in a Nov. 15, 2013, federal indictment, all of whom have either pleaded guilty or been convicted at trial.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Buchanan County Drug Strike Force, the Drug Enforcement Administration, the FBI, the Kansas City, Mo., Police Department, the St. Joseph, Mo., Police Department and the Buchanan County, Mo., Sheriff’s Department.
Spanish Fugitive Pleads Guilty in Connection with Prostitution Enterprise Operated Out of Florida HotelRead the Press Release
Miguel A. Hernandez, 50, of Miami Beach, Florida, pleaded guilty today to charges arising from his operation of an enterprise that profited from the prostitution of multiple women, including foreign nationals and Miami-area residents, for his financial gain.
Hernandez pleaded guilty before U.S. District Court Judge Marcia G. Cooke of the Southern District of Florida to four counts of using a facility of interstate commerce to promote an unlawful activity and four counts of importing and attempting to import an alien for prostitution purposes.
According to documents filed in the case and evidence presented in court during the plea hearing, Hernandez began operating a highly profitable prostitution enterprise known as “International Playmates” from a hotel in Fort Lauderdale, Florida, in 2010. Hernandez and others, including his brother and co-defendant, Eduardo Hernandez, recruited many of the women who worked for him from other countries, including Spain, Colombia, Venezuela and other Central and Latin American countries. To facilitate the operation, Hernandez and his associates reserved and paid for plane tickets for foreign nationals to enter the United States, completed immigration paperwork, coached foreign nationals on what to say to customs officials when entering the United States and picked foreign nationals up at the airport. Hernandez openly advertised his business on the Internet and deposited the cash proceeds into multiple bank accounts.
As part of Hernandez’s enterprise, he engaged numerous individuals, including overseas recruiters to identify more women; drivers to transport women to dates with prostitution clients; a website technician to advertise the enterprise’s services; various female associates to help manage the enterprise; and his brother and co-defendant, Eduardo Hernandez to aid in operation of the scheme. Eduardo Hernandez previously pleaded guilty for his role in the enterprise on May 3, 2016.
Miguel Hernandez had previously been convicted and sentenced to six years’ confinement in Spain for immigration fraud offenses in violation of Spanish law, but had fled to the United States before serving his sentence. According to documents filed in the case and evidence presented in court, Hernandez used physical force on at least two occasions against two different women, both Spanish nationals, and prostituted at least three minors for his profit.
“The ACTeam Initiative – including a Phase I Pilot Team in the Southern District of Florida – has worked to multiply the efforts of the federal government by convening various agencies and marshalling resources to more effectively combat human trafficking and related crimes,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This prosecution is one of many in which the ACTeam initiative has helped vindicate the rights of the vulnerable women and girls that Hernandez and his co-conspirators exploited for their profit.”
“The U.S. Attorney’s Office is committed to supporting the ACTeam Initiative, a multi-agency approach aimed at building human trafficking enforcement and investigate efforts, in order to combat the illicit enterprises and prosecute the traffickers,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.
“Human smuggling and trafficking are a top priority of ICE-HSI to disrupt and dismantle these transnational criminal organizations,” said Acting Special Agent in Charge Robert C. Hutchinson of the U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) Miami. “We work very closely with our law enforcement and non-governmental organization partners with great success to protect victims such as demonstrated in this investigation.”
“Diplomatic Security’s global presence enables our agency to serve as a liaison between U.S. and foreign law enforcement counterparts assisting both in their efforts to stop human trafficking,” said Director Bill A. Miller of the State Department’s Diplomatic Security Service. “Today’s conviction demonstrates how Diplomatic Security’s placement around the world can stem the tide of human trafficking and target the criminals who prey on these victims.”
At a sentencing hearing scheduled for July 13, 2016, Hernandez faces a maximum sentence of 60 years in prison and a fine of up to $2 million.
The case was investigated by HSI and the Diplomatic Security Service. The case is being prosecuted by Assistant U.S. Attorney Olivia S. Choe of the Southern District of Florida and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Southern District of Florida is one of six Phase I Pilot Anti-Trafficking Coordination Teams (ACTeams) convened through an interagency collaboration of the Departments of Justice, Homeland Security and Labor to develop high-impact federal human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking of adults by force, fraud and coercion.
Spanish Fugitive Pleads Guilty in Connection with Prostitution Enterprise Operated Out of Florida HotelRead the Press Release
Highly Profitable Scheme Prostituted Foreign Nationals and South Florida Residents
Miguel A. Hernandez, 50, of Miami Beach, Florida, pleaded guilty today to charges arising from his operation of an enterprise that profited from the prostitution of multiple women, including foreign nationals and Miami-area residents, for his financial gain.
Hernandez pleaded guilty before U.S. District Court Judge Marcia G. Cooke of the Southern District of Florida to four counts of using a facility of interstate commerce to promote an unlawful activity and four counts of importing and attempting to import an alien for prostitution purposes.
According to documents filed in the case and evidence presented in court during the plea hearing, Hernandez began operating a highly profitable prostitution enterprise known as “International Playmates” from a hotel in Fort Lauderdale, Florida, in 2010. Hernandez and others, including his brother and co-defendant, Eduardo Hernandez, recruited many of the women who worked for him from other countries, including Spain, Colombia, Venezuela and other Central and Latin American countries. To facilitate the operation, Hernandez and his associates reserved and paid for plane tickets for foreign nationals to enter the United States, completed immigration paperwork, coached foreign nationals on what to say to customs officials when entering the United States and picked foreign nationals up at the airport. Hernandez openly advertised his business on the Internet and deposited the cash proceeds into multiple bank accounts.
As part of Hernandez’s enterprise, he engaged numerous individuals, including overseas recruiters to identify more women; drivers to transport women to dates with prostitution clients; a website technician to advertise the enterprise’s services; various female associates to help manage the enterprise; and his brother and co-defendant, Eduardo Hernandez to aid in operation of the scheme. Eduardo Hernandez previously pleaded guilty for his role in the enterprise on May 3, 2016.
Miguel Hernandez had previously been convicted and sentenced to six years’ confinement in Spain for immigration fraud offenses in violation of Spanish law, but had fled to the United States before serving his sentence. According to documents filed in the case and evidence presented in court, Hernandez used physical force on at least two occasions against two different women, both Spanish nationals, and prostituted at least three minors for his profit.
“The ACTeam Initiative – including a Phase I Pilot Team in the Southern District of Florida – has worked to multiply the efforts of the federal government by convening various agencies and marshalling resources to more effectively combat human trafficking and related crimes,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This prosecution is one of many in which the ACTeam initiative has helped vindicate the rights of the vulnerable women and girls that Hernandez and his co-conspirators exploited for their profit.”
“The U.S. Attorney’s Office is committed to supporting the ACTeam Initiative, a multi-agency approach aimed at building human trafficking enforcement and investigate efforts, in order to combat the illicit enterprises and prosecute the traffickers,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.
“Human smuggling and trafficking are a top priority of ICE-HSI to disrupt and dismantle these transnational criminal organizations,” said Acting Special Agent in Charge Robert C. Hutchinson of the U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) Miami. “We work very closely with our law enforcement and non-governmental organization partners with great success to protect victims such as demonstrated in this investigation.”
“Diplomatic Security’s global presence enables our agency to serve as a liaison between U.S. and foreign law enforcement counterparts assisting both in their efforts to stop human trafficking,” said Director Bill A. Miller of the State Department’s Diplomatic Security Service. “Today’s conviction demonstrates how Diplomatic Security’s placement around the world can stem the tide of human trafficking and target the criminals who prey on these victims.”
At a sentencing hearing scheduled for July 13, 2016, Hernandez faces a maximum sentence of 60 years in prison and a fine of up to $2 million.
The case was investigated by HSI and the Diplomatic Security Service. The case is being prosecuted by Assistant U.S. Attorney Olivia S. Choe of the Southern District of Florida and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Southern District of Florida is one of six Phase I Pilot Anti-Trafficking Coordination Teams (ACTeams) convened through an interagency collaboration of the Departments of Justice, Homeland Security and Labor to develop high-impact federal human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking of adults by force, fraud and coercion.
Sioux Falls Man Sentenced to 210 Months for Drug OffenseRead the Press Release
United States Attorney Randolph J. Seiler announces that a Sioux Falls, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine was sentenced on May 6, 2016, by U.S. District Judge Karen E. Schreier.
Milton Lewis Poole III, age 28, was sentenced to 210 months in custody, to be followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
An indictment was issued against Poole for Conspiracy to Distribute Methamphetamine by a federal grand jury on August 4, 2015. He pled guilty to the charge on February 11, 2016.
In 2015, Poole was involved in a conspiracy to distribute methamphetamine in Sioux Falls. Poole distributed over 20 pounds of methamphetamine in Sioux Falls, and received several pounds of methamphetamine in the mail.
This case was investigated by the Drug Enforcement Administration, the United States Postal Inspection Service, and the Sioux Falls Area Drug Task Force. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Poole was immediately turned over to the custody of the U.S. Marshals Service.
Seven Defendants Charged in Manhattan Federal Court with Defrauding A Native American Tribe and Investors of over $60 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced that seven defendants were arrested today and charged with orchestrating a scheme to defraud investors and a Native American tribal entity of tens of millions of dollars.
JASON GALANIS and HUGH DUNKERLEY were arrested in the Central District of California. JASON GALANIS will be presented later today before a U.S. Magistrate Judge in Los Angeles and DUNKERLEY will be presented before a U.S. Magistrate Judge in Santa Ana, California. GARY HIRST was arrested in the Middle District of Florida and will be presented later today before a U.S. Magistrate Judge in Orlando. JOHN GALANIS, a/k/a “Yanni,” was arrested in the Southern District of California and will be presented later today before a U.S. Magistrate Judge in San Diego. BEVAN COONEY was arrested in the District of Nevada and will be presented later today before a U.S. Magistrate Judge in Reno. DEVON ARCHER was arrested in the Eastern District of New York. MICHELLE MORTON was arrested in New Jersey. ARCHER and MORTON will be presented later today before United States Magistrate Judge Ronald L. Ellis in Manhattan.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, the defendants induced an Oglala Sioux Native American tribal entity to issue bonds through lies about how the bond proceeds would be invested. Instead of investing the proceeds in a way that would provide capital for development and help cover the interest payments, the defendants allegedly pocketed most of it to pay for their own personal expenses, homes, cars, travel, and jewelry. The defendants’ alleged fraud did not stop with the tribe. The defendants also allegedly duped unwitting investors into buying the bonds by hiding material facts about them, including their lack of liquidity. The defendants’ alleged fraud has left devastation in its wake: a tribe with tens of millions in bond obligations it cannot pay, and investors out tens of millions, left holding bonds they did not want.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “The alleged fraudsters named in this case didn’t just see an opportunity to steal money when they thought no one was looking, they allegedly hatched a plan to scam a municipal entity from the start. The most egregious fallout from this scheme is that the bondholders now hold worthless securities, and the tribe can’t make the interest payments due.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “These individuals allegedly took advantage of their clients, by luring them into creating bonds the defendants allegedly knew would never pay any returns to investors. White-collar criminals always believe their crimes and abilities are above the law, but Postal Inspectors and their law enforcement partners are very skilled at bringing these fraudsters to justice for their illegal financial schemes.”
According to the Complaint unsealed today in Manhattan federal court:[1]
From at least in or about March 2014 through in or about April 2016, JASON GALANIS, GARY HIRST, JOHN GALANIS, a/k/a “Yanni,” HUGH DUNKERLEY, MICHELLE MORTON, DEVON ARCHER, and BEVAN COONEY engaged in a fraudulent scheme to cause a Native American tribal entity to issue more than $60 million in municipal bonds and then misappropriate the proceeds from their sale. JASON GALANIS and JOHN GALANIS used the millions of dollars in illicit profits derived from the scheme to pay for a variety of personal and business expenses, including house payments, car payments and tax obligations, and to make food, travel and jewelry purchases. JASON GALANIS also used the proceeds to make millions of dollars of payments to other defendants, including to HIRST, DUNKERLEY, and COONEY, as well as to asset management firms run by MORTON.
To accomplish the scheme, JASON GALANIS and JOHN GALANIS first induced the Wakpamni Lake Community Corporation (“WLCC”), an Oglala Sioux tribal entity, to issue tens of millions of dollars in municipal bonds (the “Tribal Bonds”) based on false and misleading representations. MORTON and HIRST, at the direction of JASON GALANIS, used approximately $40 million of funds belonging to clients of two related investment advisers run by MORTON – Hughes Capital Management, Inc. (“Hughes”) and Atlantic Asset Management, LLC (“Atlantic”) – to purchase the Tribal Bonds, even though those defendants were well aware that material facts about the Tribal Bonds had been withheld from clients in whose accounts they were placed, including the fact that the Tribal Bond purchases fell outside the investment parameters of certain Hughes clients and of the Atlantic investment vehicle in which the Tribal Bonds were placed. In addition, those defendants failed to apprise the Hughes and Atlantic clients of substantial conflicts of interest relating to the defendants – including that HIRST and DUNKERLEY were on multiple sides of the deal with respect to the issuance and placement of the Tribal Bonds. When Hughes and Atlantic clients learned about the purchase of the Tribal Bonds, several of them demanded that the Tribal Bonds be sold. However, because there was no ready secondary market for the Tribal Bonds, the Tribal Bonds remain in their accounts.
Moreover, certain defendants, including JASON GALANIS and DUNKERLEY, falsely represented to the WLCC that proceeds from the sale of the Tribal Bonds would be placed with an investment manager who would invest the proceeds in investments that would generate annuity payments sufficient to pay the interest on the Tribal Bonds and provide additional funds to the WLCC to be used for tribal economic development purposes. In fact, none of the proceeds of the Tribal Bonds were turned over to the investment manager specified in the closing documents. Instead, the defendants misappropriated significant portions of the proceeds for their own personal use.
Some of the misappropriated proceeds were recycled and provided by JASON GALANIS to entities affiliated with ARCHER and COONEY in order to facilitate the purchase of additional Tribal Bonds issued by the WLCC in subsequent offerings induced by JOHN GALANIS. As with the first offering of Tribal Bonds, none of the proceeds of the Tribal Bonds were actually turned over to the investment manager specified in the closing documents. Instead, the defendants again misappropriated substantial portions of the proceeds for their own use. As a result of the defendants’ fraudulent scheme, the investors in whose accounts the Tribal Bonds were placed now hold worthless securities that cannot be sold, and the WLCC has no means of paying the interest payments due on the Tribal Bonds.
* * *
JASON GALANIS, HIRST, JOHN GALANIS, DUNKERLEY, MORTON, ARCHER, and COONEY are each charged with one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense; and one count of securities fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense. JASON GALANIS, HIRST, and MORTON are also charged with conspiracy to commit investment adviser fraud, which carries a maximum sentence of five years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense; and investment adviser fraud, which carries a maximum sentence of five years in prison and a maximum fine of $10,000. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Mr. Bharara praised the investigative work of the FBI and USPIS, and thanked the SEC, which has filed civil charges in a separate action.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brian Blais, Aimee Hector, and Rebecca Mermelstein are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.