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9 May 2016
California Man Convicted of Drug and Money Laundering Charges Relating to Methamphetamine Deliveries to OregonRead the Press Release
A California man was convicted late Friday by a federal jury in the U.S. District Court for the District of Oregon.
Assistant Attorney General Leslie R. Caldwell of the Criminal Division; Assistant Special Agent in Charge Cam B. Strahm of the Drug Enforcement Administration’s Portland District Office; Special Agent in Charge Gregory Bretzing of the FBI‘s Portland Division; and Chief Lawrence P. O’Dea III of the Portland Police Bureau, made the announcement today following the jury’s verdict.
Fulgencio Arias Jr., 43, of Whittier, California, was convicted of conspiracy to distribute and possess with the intent to distribute 500 grams or more of a mixture and substance containing methamphetamine, conspiracy to commit money laundering, distribution of 500 grams or more of a mixture and substance containing methamphetamine, and attempted distribution of 500 grams or more of a mixture and substance containing methamphetamine.
The defendant was charged in an indictment on Dec 15, 2011. The evidence at trial showed that the defendant was the leader of a drug trafficking organization from approximately January 2008 until Dec 15, 2011. The defendant sent large quantities of methamphetamine from the Los Angeles area to Oregon and other states in the Pacific Northwest through the use of couriers. One of the defendant’s Oregon-based co-conspirators received the methamphetamine for distribution in Oregon. In turn, co-conspirators returned proceeds from the distribution to the defendant using hidden bulk cash shipments and nominee bank accounts.
Sentencing is scheduled for Aug 30, 2016. The defendant faces a maximum penalty of life in prison.
The case was prosecuted by Trial Attorneys Clayton O’Conner and Michael Lang, respectively, of the Criminal Division’s Human Rights and Special Prosecutions Section and Narcotic and Dangerous Drug Section. The case was investigated by the DEA, FBI, the Portland Metro Gang Task Force, Portland Police Bureau, Tigard Police Department, Medford Police Department, Marion County Sheriff’s Office, Oregon State Police Forensic Laboratory with assistance from the Multnomah County Sheriff’s Office and Los Angeles Sheriff’s Department.
Buxton Man Sentenced on Firearm ChargesRead the Press Release
Contact: Benjamin M. Block
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Raymond T. Pinkham, 22, of Buxton, Maine, was sentenced today in U.S. District Court in Portland to 52 months in prison following convictions for Possession of Stolen Firearms (two counts) and Conspiracy to Possess Stolen Firearms.
Two of Raymond Pinkham’s co-conspirators, Dale M. Pinkham Jr., 26, and Robert C. Bean-Pinkham, 21, both of Buxton, Maine, previously pled guilty and were sentenced by the Court. On April 19, 2016, Robert Bean-Pinkham was sentenced to 40 months in prison based on convictions for Possession of Stolen Firearms and Conspiracy to Possess Stolen Firearms. On April 20, 2016, Dale Pinkham Jr. was sentenced to 64 months in prison based on convictions for Conspiracy to Distribute Heroin, Possession of Firearms by a Prohibited Person, and Conspiracy to Possess Stolen Firearms.
According to court records, from around November 2012 until November 2014, Dale Pinkham Jr. conspired with others to distribute heroin. On December 6, 2013, a search warrant executed at the Pinkhams’ residence in Buxton resulted in the seizure of about 20 grams of heroin and numerous firearms in Dale Jr.’s bedroom. Dale Jr. was then prohibited from possessing guns due to his illegal drug use. Agents also recovered a stolen firearm from a vehicle operated by Raymond that day. Between about August and November 2014, Dale Jr., Raymond and Robert also conspired to possess and possessed stolen firearms. The co-conspirators paid for the stolen firearms using U.S. currency, heroin, or both. On October 11, 2014, a search warrant executed at the Pinkhams’ Buxton residence resulted in the seizure of seven stolen firearms from Robert’s bedroom. Law enforcement subsequently recovered 11 additional stolen firearms possessed by the co-conspirators.
The case was investigated by the U.S. Bureau of Alcohol, Tobacco and Firearms and the Maine State Police, with assistance from the Maine Drug Enforcement Agency, the York and Cumberland County Sherriff’s Offices, the Buxton Police Department, and the Office of the Maine Attorney General.
Businessmen Indicted in East Texas Mortgage FraudRead the Press Release
SHERMAN, Texas – U.S. Attorney John M. Bales announced today that three businessmen have been indicted and charged with federal violations in the Eastern District of Texas.
Daniel C. Bomar, 36, James B. Wright, 55, both of Ocean Springs, MS, and Brett T. Immel, 35, of Chicago, were indicted by a federal grand jury on Apr. 14, 2016, and charged with conspiracy to commit bank fraud and conspiracy to commit money laundering.
According to the indictment, from 2010 to 2012, the defendants are alleged to have conspired to defraud and obtain money from Prime Lending, a mortgage lending company in Dallas, and from Federal Savings Bank, a mortgage lending company in Overland Park, Kansas. Both companies are insured by the Federal Deposit Insurance Corporation (FDIC).
Wright was a title attorney who handled real estate closing transactions, and Bomar worked for his as an escrow officer. Immel was a partner in a business called Hanover Companies, which located investors to purchase homes from builders. Immel, on behalf of Hanover Companies, formed agreements and executed contracts with home builders to locate buyers for properties in exchange for a fee, known as a receivable fee. Immel solicited buyers to purchase homes from the builders and then directed those buyers to obtain mortgage loans from Prime Lending or Federal Savings Bank.
Immel specifically directed the buyers to Wright and Bomar to close the loans, and Immel provided Wright and Bomar with sales contracts executed by the sellers and buyers and the receivable fee contracts executed by the seller and Hanover. The receivables fee contracts directed the sellers to pay Hanover for providing buyers for the properties. However, Wright, Bomar, and Immel prevented Prime Lending or Federal Savings Bank from receiving any documentation that disclosed Hanover’s receivable fees from the sellers.
For each loan closing, Bomar and Wright created a HUD-1 Settlement Statement for the seller which detailed the receivable fee the seller was making to Hanover. However, Immel directed Bomar and Wright to create a separate HUD-1 Settlement Statement which omitted the receivable fee from the seller’s proceeds to Hanover, and instead showed the seller making more profit on the property than the seller actually received. Bomar and Wright provided this false HUD-1 Settlement Statement to Prime Lending and Federal Savings Bank in order to receive inflated loan proceeds based on the falsely increased purchase price, and the amount of loans funds the buyer needed to pay for the purchase of the home. After each loan was funded, Bomar and Wright paid a kickback to Immel through Hanover Companies.
All mortgage loans named in the indictment were purchased and secured by the Federal National Mortgage Association (Fannie Mae).
This case is currently set for trial on June 3, 2016 before U.S. District Judge Amos L. Mazzant, III. If convicted of the charges, each defendant faces up to 30 years in federal prison for the bank fraud count and up to 10 years for the money laundering count.
This case is being investigated by the Federal Housing Finance Agency – Office of Inspector General and the Internal Revenue Service and prosecuted by Assistant U.S. Attorney Camelia Lopez.
A grand jury indictment is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Brooke County, WV man pleads guilty to failing to update sex offender registrationRead the Press Release
WHEELING, WEST VIRGINIA – Convicted sex offender Christopher Barker, 27, of Follansbee, West Virginia, pled guilty today to moving across state lines without updating his sex offender registration status, United States Attorney William J. Ihlenfeld, II, announced.
Barker, also known as Christopher D. Cooper, was previously convicted in Ohio County, West Virginia of “First Degree Sexual Assault Involving a Minor.” As a result of that conviction, Barker is required to register as a sex offender. In late 2015, Barker moved from Pittsburgh, Pennsylvania to Follansbee, West Virginia without updating his sex offender registration status.
Barker pled guilty today to one count of “Failure to Register and Update Registration as a Sex Offender.” He faces up to 10 years in prison and a fine of up to $250,000. 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 Stephen Vogrin prosecuted the case on behalf of the government. The United States Marshals Service, the Pennsylvania State Police, and the Pittsburgh, Pennsylvania Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Bank Robber Sentenced to 135 Months in PrisonRead the Press Release
ALBANY, NEW YORK – Calvin Stephon Moore, age 50, of Utica, New York, was sentenced today to serve 135 months in prison for three bank robberies he committed in 2014.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
Senior U.S. District Judge Thomas J. McAvoy also sentenced Moore to serve 3 years of post-imprisonment supervised release, and to pay $7,953 in restitution to his victims.
Moore pled guilty in October 2015 to committing bank robberies in Schenectady, Utica and Columbia, South Carolina.
On November 17, 2014, Moore and another man robbed a KeyBank branch in Schenectady. During the robbery, Moore told a teller, “this is a hold up give me money.” The two robbers fled the bank with $5,035. Schenectady Police found and arrested Moore’s accomplice near the bank; the accomplice had a backpack containing the stolen money and a copy of Moore’s birth certificate.
The following day, Moore robbed an Adirondack Bank branch in Utica. He handed the teller a demand note, which stated: “THIS IS A ROBBERY. I HAVE A GUN AND WILL SHOOT IF YOU TRY ANYTHING. PUT ALL THE LOOSE BILLS (EVERY DENOMINATION) IN THE BAG … NO DYE PACK OR TRACERS OR I WILL SHOOT!” Moore fled the bank with $1,647.
Moore then traveled to South Carolina.
On December 30, 2014, Moore entered a First Citizens Bank branch in Columbia. He approached a teller and presented a note in which he demanded money. He also told the teller he had a gun. Moore fled the bank with $1,271, into which a teller had placed an exploding dye pack.
Moore was arrested on the night of December 30 by officers from the Cayce, South Carolina, Police Department, who responded to a report of a person at a motel tossing a suspicious item over a fence and into a parking lot. The item was a bank dye pack.
The investigation into the Schenectady and Utica robberies was conducted by the FBI, and the Schenectady and Utica Police Departments.
The investigation into the Columbia, South Carolina robbery was conducted by the Columbia Division of the FBI, and the Columbia and Cayce Police Departments.
The Newark Division of the FBI also assisted in this investigation.
This case was prosecuted by Assistant United States Attorney Michael Barnett of the Northern District of New York, and by Assistant United States Attorney Benjamin N. Garner of the District of South Carolina.
Bangor Man Pleads Guilty to Destruction of Government PropertyRead the Press Release
Contact: Jody Mullis
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Richard Hughes, 30, of Bangor, Maine, pleaded guilty on May 6, 2016 in U.S. District Court to destroying government property.
According to court records, on June 5, 2015, Hughes drove a motor vehicle through the high frequency area electronic gate located on Elmer’s Way at the Cutler, Maine, Naval Support Activity installation. The gate is owned and operated by the United States Department of Defense. Hughes destroyed the gate.
Hughes faces up to 10 years in prison, a $250,000 fine, and up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Naval Criminal Investigative Service and the Cutler, Maine, Naval Support Activity Police Department.
Bahamas Man Pleads Guilty to Hacking Scheme to Steal Celebrities’ Copyrighted and Personal InformationRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ALONZO KNOWLES pled guilty today in Manhattan federal court to criminal copyright infringement of scripts of movies and television shows that had not yet aired, as well as identity theft of personal identification information, all of which KNOWLES obtained by hacking into the personal e-mail accounts of numerous individuals in the entertainment, sports, and media industries. He pled guilty before U.S. District Judge Paul A. Engelmayer.
Manhattan U.S. Attorney Preet Bharara said: “Alonzo Knowles targeted and hacked into the private emails of celebrities in entertainment and in professional sports. His crimes did not end with this frightening invasion of privacy, as Knowles then sought to sell what he stole, including unreleased movie and television scripts, to the highest bidder. Thanks to the terrific work of the Homeland Security Investigations agents and prosecutors in my office, this story of cybercrime meets celebrity stalking ends well, with the perpetrator caught and convicted.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including yesterday’s guilty plea:
ALONZO KNOWLES unlawfully accessed the personal e-mail accounts of numerous individuals in the entertainment, sports, and media industries (the “Victims”). As a result of his hacking scheme, KNOWLES obtained the Victims’ copyrighted and confidential documents, including scripts of movies and television shows that had not yet been publicly released, personal identifying information such as Social Security numbers, and private sexually explicit photographs and videos.
Over the course of two weeks in December 2015, KNOWLES and an undercover law enforcement agent (the “UC”) communicated about the material KNOWLES sought to sell to the UC. KNOWLES claimed to the UC that he had “exclusive content” that was “really profitable” and worth “hundreds of thousands of dollars.” KNOWLES stated that he obtained the material directly from the Victims without their knowledge, and claimed to be able to acquire such material from at least some of the approximately 130 Victims whose e-mail addresses and phone numbers he had in his possession.
On December 21, 2015, KNOWLES met with the UC in New York, New York. During their meeting, KNOWLES described two methods he used to hack each Victim’s e-mail account. The "easier” method, according to KNOWLES, involved sending a virus to the Victim’s computer that would enable KNOWLES to access it. The more difficult method, according to KNOWLES, involved KNOWLES sending a false hacking notification to the Victim and asking the Victim for his passcodes. Once KNOWLES had used the Victim’s passcodes to successfully access the Victim’s e-mail account, KNOWLES, unbeknownst to the Victim, would change the settings in the Victim’s e-mail account in order to continue to access to it. In order to avoid detection from the Victim, KNOWLES would delete notifications from the e-mail service provider regarding changes to the settings of the Victim’s e-mail account. KNOWLES attempted to sell numerous movie and television scripts and personal identifying information that he had unlawfully obtained from the Victims to the UC in exchange for thousands of dollars, whereupon KNOWLES was arrested.
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KNOWLES, 24, of Freeport, Bahamas, faces a maximum of 10 years in prison and six years of supervised release. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. KNOWLES is scheduled to be sentenced by Judge Engelmayer on August 25, 2016.
Mr. Bharara praised the investigative work of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Kristy J. Greenberg is in charge of the prosecution.
7th Street Gang Associate Pleads Guilty to Rico Conspiracy; The Last of 18 Defendants Charged in the CaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that 7th Street Gang associate Joseph Whitely, 26, of Buffalo, NY, pleaded guilty to Racketeering Influenced Corrupt Organizations (RICO) conspiracy before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
“For more than 10 years, the 7th Street Gang – together with their 10th Street gang rivals– perpetrated violence, trafficked in deadly narcotics, and terrorized residents living on the West Side of Buffalo,” said U.S. Attorney Hochul. “As a result of this prosecution, more than five dozen gang members have been removed from our community. Most importantly, peace and hope for a better future have been restored.”
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that the
7th Street Gang was responsible for narcotics trafficking, numerous shootings and multiple murders in the 7th Street area of the West Side of Buffalo between 2000 and
2012. Defendant Whitely, as a 7th Street Gang associate, sold heroin on behalf of the gang.
Regarding violence, Whitely served as the getaway driver for 7th Street Gang member Efrain Hidalgo, who murdered rival 10th Street Gang member Eric Morrow on August 11, 2009. In doing so, Whitely assisted Hidalgo to avoid capture by the Buffalo Police Department.
A total of 18 defendants were charged in the prosecution of the 7th Street gang. All 18 defendants have now been convicted. The prosecution of the 10th Street gang, meanwhile, involved 44 defendants, all of whom were convicted.
“The successful prosecution of the 7th and 10th Street gangs, and the resulting prosperity of the City’s West Side, demonstrates the true value of federal intervention,” U.S. Attorney Hochul further stated. “We will continue such vigorous efforts until every last gang member operating anywhere in this District is brought to justice.”
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent in Charge Adam S. Cohen, the New York State Police, under the direction of Major Steven Nigrelli, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid.
Sentencing is scheduled for September 15, 2016 at 12:30 p.m. before Judge Arcara.
6 May 2016
Waterbury Man Pleads Guilty to Federal Gun ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that STEPHEN GOINS, 35, last residing in Waterbury, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of possession of a firearm by a convicted felon.
According to court documents and statements made in court, on June 26, 2014, law enforcement received information that GOINS, a convicted felon, was operating a vehicle that had a firearm in the glove compartment. A Bridgeport police officer stopped the vehicle after it exited I-95 in Bridgeport. GOINS was arrested after a search of the glove compartment revealed a loaded Ruger LCR Revolver, .38 caliber Special.
GOINS’ criminal history includes felony convictions for robbery, larceny and marijuana trafficking offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The charge of unlawful possession of a firearm by a convicted felon carries a maximum term of imprisonment of 10 years. A sentencing date is not scheduled.
GOINS has been detained since his arrest.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Bridgeport Police Department, New Britain Police Department, and Connecticut Statewide Narcotics Task Force. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
United States Files Complaint Against City of Española, to Redress Alleged Trespass on Lands of the Pueblo of Santa ClaraRead the Press Release
ALBUQUERQUE – The United States today filed a civil complaint on its own behalf and for the benefit of the Pueblo of Santa Clara in federal court in Albuquerque, New Mexico, against the city of Española, New Mexico. The complaint alleges that the city lacks valid rights-of-way for portions of its public water and sanitary sewer lines located on the Pueblo’s lands and is therefore trespassing on those lands. With the Pueblo’s consent, the city obtained rights-of-way in the early 1980s for the water and sewer lines under the Indian Right-of-Way Act and its implementing regulations, which authorize grants of easement across Indian lands. Those rights-of-way expired in 1994 and 2002. The complaint seeks to compel the city to comply with the Indian Right-of-Way Act by renewing its rights of way and compensating the Pueblo for the unauthorized use of the Pueblo’s property.
The Pueblo of Santa Clara and Española engaged in negotiations for almost a decade, seeking to resolve these expired rights-of-way. Those negotiations proved unsuccessful and on Nov. 13, 2013, the Bureau of Indian Affairs sent the city a Notice to Show Cause concerning trespass arising out of the expired rights-of-way.
On July 21, 2014, U.S. Attorney Damon P. Martinez for the District of New Mexico sent a follow-up letter to the city, reporting that the city’s “Response to the Notice to Show Cause” fails to provide evidence or argument to establish a legal basis for the city’s presence on Pueblo property or otherwise establish that it is not in trespass.” The city disagreed.
In response to that letter, the city stated that no trespass has taken place and no compensation is due. On April 7, U.S. Attorney Martinez met with Española’s mayor, Alice Lucero and the city’s attorney to determine whether this dispute could be resolved through settlement without filing suit. The city stressed that its position on the trespass issue had not changed.
Española’s continuing denial of trespass on lands for which it previously paid and acquired valid rights-of-way and its refusal to comply with federal law precipitated today’s filing.
“The United States takes seriously enforcement of the rule of law, particularly as it affects Indian Country,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “Compliance with the Indian Right-of-Way Act and other federal statutes is not optional, but a legal requirement that ensures Indian tribes retain control of their lands and resources.”
“The filing of today’s complaint is intended to bring the city of Española into compliance with federal law,” said U.S. Attorney Martinez. “The complaint was filed only after all other options for resolving this dispute had been exhausted. While previous discussions among the parties have failed to resolve this dispute, we are hopeful that meaningful discussions will be possible while the federal court action proceeds.”
Trial Attorney Samuel D. Gollis of the Indian Resources Section of the Justice Department’s Environment and Natural Resources Division and Assistant U.S. Attorney Howard R. Thomas of the U.S. Attorney’s Office for the District of New Mexico are representing the United States in this litigation.
USA v. City of Espanola Complaint
United States Files Complaint Against City of Española, New Mexico to Redress Alleged Trespass on Lands of the Pueblo of Santa ClaraRead the Press Release
The United States today filed a civil complaint on its own behalf and for the benefit of the Pueblo of Santa Clara in federal court in Albuquerque, New Mexico, against the city of Española, New Mexico. The complaint alleges that the city lacks valid rights-of-way for portions of its public water and sanitary sewer lines located on the Pueblo’s lands and is therefore trespassing on those lands. With the Pueblo’s consent, the city obtained rights-of-way in the early 1980s for the water and sewer lines under the Indian Right-of-Way Act and its implementing regulations, which authorize grants of easement across Indian lands. Those rights-of-way expired in 1994 and 2002. The complaint seeks to compel the city to comply with the Indian Right-of-Way Act by renewing its rights of way and compensating the Pueblo for the unauthorized use of the Pueblo’s property.
The Pueblo of Santa Clara and Española engaged in negotiations for almost a decade, seeking to resolve these expired rights-of-way. Those negotiations proved unsuccessful and on Nov. 13, 2013, the Bureau of Indian Affairs sent the city a Notice to Show Cause concerning trespass arising out of the expired rights-of-way.
On July 21, 2014, U.S. Attorney Damon P. Martinez for the District of New Mexico, sent a follow-up letter to the city, reporting that the city’s “Response to the Notice to Show Cause” fails to provide evidence or argument to establish a legal basis for the city’s presence on Pueblo property or otherwise establish that it is not in trespass.” The city disagreed.
In response to that letter, the city stated that no trespass has taken place and no compensation is due. On April 7, U.S. Attorney Martinez met with Española’s mayor, Alice Lucero and the city’s attorney to determine whether this dispute could be resolved through settlement without filing suit. The city stressed that its position on the trespass issue had not changed.
Española’s continuing denial of trespass on lands for which it previously paid and acquired valid rights-of-way and its refusal to comply with federal law precipitated today’s filing.
“The United States takes seriously enforcement of the rule of law, particularly as it affects Indian Country,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “Compliance with the Indian Right-of-Way Act and other federal statutes is not optional, but a legal requirement that ensures Indian tribes retain control of their lands and resources.”
“The filing of today’s complaint is intended to bring the city of Española into compliance with federal law,” said U.S. Attorney Martinez. “The complaint was filed only after all other options for resolving this dispute had been exhausted. While previous discussions among the parties have failed to resolve this dispute, we are hopeful that meaningful discussions will be possible while the federal court action proceeds.”
Trial Attorney Samuel D. Gollis of the Indian Resources Section of the Justice Department’s Environment and Natural Resources Division and Assistant U.S. Attorney Howard R. Thomas of the U.S. Attorney’s Office for the District of New Mexico are representing the United States in this litigation.
U.S. Attorney’s Office Participates in Law Week EventsRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced the U.S. Attorney’s Office participation in various events for Law Week.
The U.S. Attorney’s Office was invited to participate in the annual Law Week Law Fair held on April 30, 2016, at the Judiciary of Guam, at which members of the law community were encouraged to disseminate materials relating to their respective organizations to the public and to answer questions about their organization’s mission and purpose.
This year's Law Day theme was "Miranda: More than Words." The theme highlighted the procedural protections afforded to all by the U.S. Constitution; how these rights are safeguarded by the courts; and why the preservation of these principles is essential to our liberty. In addition to the Law Day theme, Law Week activities sought to educate about the legal system and the rule of law, with events focused on teaching students and the general public about court proceedings and the justice system. Law Week activities allowed the community to obtain first-hand information of the different aspects of the law from our justice system partners.
On May 6, 2016, U.S. Attorney Limtiaco participated in a Conversatorio panel on “Miranda: More than Words” at the U.S. District Court of Guam and spoke with Criminal Justice students from Guam Community College and the University of Guam about Miranda and related U.S. Constitution and justice system issues. Also present were U.S. District Court of Guam Chief Judge Frances Tydingco-Gatewood, U.S. District Court of Guam Magistrate Judge Joaquin Manibusan, Supreme Court of Guam Associate Justice F. Philip Carbullido, Supreme Court of Guam Associate Justice Katherine Maraman, Federal Public Defender John Gorman, Judge Advocates from all military branches, and Federal Law Enforcement Officers/Deputies/Agents.
See the following photos taken at the events.
Student Clerk Jack Ruane and his daughter, with U.S. Attorney Alicia Limtiaco and Legal Assistant Roxanne Ferrer at the U.S. Attorney’s Office’s exhibit at the Law Fair held at the Judiciary of Guam U.S. Attorney Alicia Limtiaco, second from left, responds to a question from visitors receiving handouts from the U.S. Attorney’s Office U.S. Attorney Alicia Limtiaco is pictured here in the U.S. District Court of Guam for Law Week U.S. Attorney Alicia Limtiaco with Federal Public Defender John Gorman during their discussion on Miranda Rights at the U.S. District Court of GuamU.S. Attorney Polite Announces “House of Worship” Security SymposiumRead the Press Release
U.S. Attorney Kenneth A. Polite announced that the U.S. Attorney’s Office for the Eastern District of Louisiana – in collaboration with the New Orleans Field Office of the Federal Bureau of Investigation, U.S. Department of Homeland Security, Federal Protective Services Division and the Anti-Defamation League for the Southern Region of Louisiana – will be co-hosting a free “House of Worship” Security Symposium on Wednesday, May 18, 2016 from 9:00 am – 1:00 pm. Topics include:
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Hate Crime Overview/Trends
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Hate Crime Investigations
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Workplace Violence & Active Shooter
- Victim Witness Informational Session
WHO: Faith-Based Leadership are urged to attend
WHEN: Wednesday, May 18, 2016 from 9:00 am – 1:00 pm
WHERE: U.S. Attorney’s Office for the Eastern District of Louisiana
650 Poydras Street, Suite 1600
Winters Conference Room
REGISTRATION:
There is no registration fee for this event and for your convenience you can simply click on the registration link provided below and your attendance will be confirmed. Early registration is advised as attendance will be limited. Once online registration is confirmed, an electronic copy of the symposium agenda along with your attendance confirmation will be forwarded to you via email. Online registration link: https://usaolaetraining.org/HouseOfFaith
If you need additional information please do not hesitate to contact Quinn Smith at (504) 680-3003.
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Texas man sentenced to 14 years and 10 months for transporting a minor to Shreveport for prostitutionRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a man from Texas was sentenced to 178 months in prison for bringing a minor to Shreveport to engage in prostitution.
Larry D. Bluitt, 27, of Dallas, Texas, was sentenced by U.S. District Judge Elizabeth E. Foote on one count of transportation of a minor with intent to engage in prostitution. He was also sentenced to five years of supervised release. According to the October 8, 2015 guilty plea, a law enforcement agent working in an undercover capacity responded to an online ad for prostitution on December 17, 2014. The undercover agent arranged to meet an individual at a Shreveport hotel for the purpose of prostitution. Agents observed Bluitt driving a 14-year-old female to the hotel to meet the undercover agent for sex. After he dropped off the juvenile, Bluitt was arrested by members of the FBI Violent Crimes Against Children Task Force. Bluitt admitted he drove the minor female from Dallas to Shreveport for prostitution.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
“Human sex trafficking is a form of modern slavery that is made even worse in this case because the defendant was using a child,” Finley stated. “Prosecuting crimes such as this one are a top priority for this office. Our efforts are focused on stopping these crimes in our district so that no one has to endure the pain and torture. I want to thank the federal, state and local agencies and the prosecutor who work so hard to successfully investigate and prosecute these cases.”
Those concerned may leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Shreveport FBI office number is (318) 861-1890.
The FBI-Violent Crimes Against Children Task Force and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Earl M. Campbell is prosecuting the case.
Statement from New Jersey U.S. Attorney Paul J. Fishman Regarding Court Approval of the Agreement with Newark, New Jersey, to Reform Unconstitutional Policing PracticesRead the Press Release
NEWARK, N.J. – U.S. Attorney Paul J. Fishman of the District of New Jersey and Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, released the following statements regarding the U.S. District Court for the District of New Jersey’s approval of the department’s agreement with the city of Newark to reform the police department’s unconstitutional practices:
"This consent decree, now approved by the court, provides a roadmap for reform in Newark and a model for best practices for police departments across the country," said U.S. Attorney Fishman. "Implementing the systemic changes outlined in the consent decree will take time, but this is what the city of Newark and the men and women who serve in the police department want and need, and it is what the people of Newark deserve: a first-class police department that keeps them safe and respects their constitutional rights."
“We appreciate the court’s swift approval of the Justice Department’s consent decree with the city of Newark,” said Principal Deputy Assistant Attorney General Gupta. “This agreement will help the Newark Police Department reform policies, improve systems and rebuild trust between officers and the community they serve. As Newark implements this agreement, we will continue to work closely with city officials, law enforcement and community members to put in place the necessary changes that can make Newark a national model for constitutional, effective and accountable policing. Once fully implemented, these reforms will make all of those in Newark – officers and civilians alike – safer. And these reforms will ensure that law enforcement in Newark complies with the Constitution and safeguards the civil rights of every Newark resident.”
South Jersey Man Admits Hiring Illegal Immigrants, Failing to Collect Payroll TaxesRead the Press Release
CAMDEN, N.J. - A Sicklerville, New Jersey, man today admitted his role in a conspiracy to evade payroll taxes on cash wages paid to illegal immigrants employed at his dry cleaning business, U.S. Attorney Paul J. Fishman announced.
Phillip Hui, 37, pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of conspiracy to obstruct and impede the IRS relating to the failure to collect, account for and pay payroll taxes and one count of harboring illegal aliens.
According to documents filed in this case and statements made in court:
Hui and Kathy Lei, 35, of Williamstown, New Jersey, owned New Eastern Cleaners in Voorhees Township, New Jersey. Lei, along with two other individuals, owned a house on South Main Street in Williamstown.
Hui knew he was required to verify that all of his employees were eligible to work in the United States, either as U.S. citizens or immigrants who had work authorization from Immigration and Customs Enforcement. However, at various times in 2012 and 2013, Hui and Lei hired foreign nationals B generally from Mexico or Guatemala B who did not have legal status in the United States. While working at New Eastern Cleaners, the undocumented immigrants lived in the South Main Street house.
At various times, Hui or Lei paid the undocumented immigrants in cash. They were required to work six days a week, approximately 10 hours a day and paid between $400 and $500 dollars per week. Their rent was part of the employment compensation. Hui also admitted that he would transport them or arrange their transportation between the South Main Street house and New Eastern Cleaners.
Hui admitted that when Lei filed Employer's Quarterly Federal Tax Return, Form 941 for all tax quarters in 2012 and the first three quarters in 2013, she only reported wages paid to legal employees of New Eastern Cleaners. She failed to report the wages and pay employment taxes for at least 13 undocumented immigrant employees in 2012 and at least 14 undocumented immigrant employees in 2013.
By filing the false tax forms in 2012 and 2013, Lei and Hui failed to pay the IRS employment taxes of at least $97,104 for the undocumented immigrant employees.
The conspiracy to obstruct and impede the IRS relating to the failure to collect, account for and pay over payroll taxes carries a maximum potential penalty of five years in prison. The harboring aliens charge carries a maximum potential penalty of 10 years in prison. Both charges carry a potential $250,000 fine. Hui=s sentencing is scheduled for Aug. 11, 2016
Lei pleaded guilty to the same charges on May 2, 2016. Her sentencing is also scheduled for Aug. 11, 2016.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), under the direction of Special Agent in Charge Terence S. Opiola, and special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea. He also thanked ICE’s Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris, for its assistance in this investigation.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel:
Hui: Jeffrey Zucker, Esq., Camden, NJ
Lei: Michael Engle, Esq., Philadelphia, PA
Settlement Reached over University's Home Health Care BillingRead the Press Release
PHILADELPHIA – The United States has reached a settlement agreement with the Trustees of the University of Pennsylvania, on behalf of its operating divisions, including the University of Pennsylvania Health System (UPHS), for the alleged submission of false home health care billings to the Medicare program. The settlement includes $75,787 to resolve allegations that Penn Care at Home violated the False Claims Act by submitting claims to Medicare for services not rendered and for services that were not reasonable or necessary. As part of the settlement agreement, UPHS has also agreed to implement new compliance oversight measures for its home health entities and will annually submit certified compliance reports pertaining to its home health entities to the United States Attorney’s Office through 2019. The settlement releases UPHS from liability for conduct pertaining to a specific limited number of episodes of patient care.
The settlement resolves a lawsuit pending in federal court in the Eastern District of Pennsylvania that was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery.
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General and U.S. Office of Personnel Management Office of the Inspector General. It was handled by Assistant United States Attorneys John T. Crutchlow and Gregory B. David.
Serial Armed Robber Sentenced to 33 Years in PrisonRead the Press Release
A Detroit man was sentenced to 33 years in federal prison after having pleaded guilty earlier this year to armed robbery and firearms offenses, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Special Agent in Charge David P. Gelios, Federal Bureau of Investigation.
Elan Andrews, 29, of Detroit was sentenced yesterday by United States District Judge Gerald E. Rosen in Detroit.
According to court records, Andrews was the leader of a several man robbery crew that committed armed robberies of Little Caesar’s fast food stores in Oak Park and Dearborn in March of 2008. Andrews and his accomplices would enter the restaurant wearing hoodies, display a firearm, and demand the contents of the cash register and safe before fleeing to a waiting vehicle with an occupant inside. The “hoodies” worn during the robberies were unique "hoodies" in that one had a skeletal-like design on the chest area and the other had a web-like design on its chest area. Hence, law enforcement dubbed them the "Spiderman Crew." In addition, the hood of each hoodie zipped from the back portion of the hood all the way down below the front chest portion. Each hoodie, once zipped, had a built in mask that enclosed and hid the wearer's face behind a built-in dark mesh material. The two robberies were part of a rash of robberies of commercial fast food restaurants over a two-week period during the spring of 2008. The robberies were wide-spread and targeted restaurants in Detroit and surrounding suburban communities, including Ferndale, Birmingham, Redford, and Oak Park.
Andrews, and other members of the crew, were apprehended as a result of a task force comprised of officers from the Detroit Police Department and several suburban law enforcement agencies that dedicated several of its officers to the task force in an effort to stop this particular crime spree.
US Attorney McQuade stated, “We hope that violent offenders will take note of this type of sentence and put down their guns."
Co-defendants Jamal Muhammad received a sentence of 9 ½ years, Anthony Sampson received a sentence of 6 years and Elisha Whitehead received a sentence of 15 years.
United States Attorney McQuade praised the work of all officers and agencies involved for the diligent pursuit and investigation of the men who were intent on terrorizing businesses, employees and customers in the Detroit area.
The case was prosecuted by Assistant United States Attorneys Terrence Haugabook and Shane Cralle.
Senior Member of Montebello Street Gang Convicted of Federal Racketeering and Firearm ChargesRead the Press Release
LOS ANGELES – A longtime member of the Mexican Mafia-affiliated Southside Montebello street gang was found guilty this afternoon of federal racketeering charges that included providing a firearm used by another gang member to kill a rival.
George Vera Sr., 48, was convicted by a federal jury that determined he conspired to violate the Racketeer-Influenced and Corrupt Organizations Act (RICO). The jury also found Vera Sr. guilty of possession of a firearm in furtherance of a crime of violence.
As a result of today’s convictions, Vera Sr. faces a statutory maximum penalty of life in federal prison, and a mandatory minimum prison term of five years. United States District Judge Dolly M. Gee, who presided over a three-week trial, will schedule a sentencing hearing for later this year.
Vera Sr., who was also known as “Rascal” and “Big Rascal,” was a senior “OG” member of Southside Montebello. At trial, prosecutors argued that he led a double life, working as an electrician for Los Angeles County during the day, and acting a gang leader and gang shot-caller during his off hours.
According to court document filed in court, Vera Sr. “engaged in hiding a firearm with a fellow gang member, provided a firearm to a younger gang member that was used in a murder, stored firearms and ammunition at his home for gang members to use, hosted gang meetings, was involved in the payment of ‘taxes’ to the Mexican Mafia on the gang’s behalf, directed younger members of the gang to protect his home from disrespect from rival gangs, and agreed to lie to his son’s probation officer to shield him from prosecution for drug dealing.”
United States Attorney Eileen M. Decker stated: “George Vera Sr. was a senior member of a gang that undertook great efforts to quash its rivals. This gang also maintained an arsenal of weapons, regularly engaged in acts of violence, and was involved in significant narcotics trafficking.”
Two of Vera Sr.’s sons were charged and pleaded guilty in this case. Marcus Matthew Vera pleaded guilty to drug, conspiracy and firearm charges, and will be sentenced later this year. George Vera pleaded guilty to conspiracy to commit robbery and possession of a firearm, and he previously was sentenced to 54 months in federal prison.
Vera Sr. and his two sons are among 16 defendants who have been convicted in federal court on charges related to Operation “Sudden Impact,” which was a task force investigation into gang activities in the City of Montebello.
As a result of Sudden Impact, six defendants were charged by the Los Angeles County District Attorney’s Office in relation to six murder “cold cases” solved during this investigation. Four of those charged in relation to the previously unsolved murder cases have been convicted in state court, and another two defendants are pending trial. Additionally, five other defendants were charged by the District Attorney on crimes ranging from drug sales to attempted murder.
“Montebello Police personnel, working with our federal law enforcement counterparts, have successfully prosecuted some of the top leaders and most dangerous members of a street gang that has terrorized the community for decades,” said Montebello Police Chief Kevin L. McClure. “As a result of this collaborative effort, the City of Montebello is now a safer and more peaceful place.”
Operation Sudden Impact was a multi-agency effort of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Montebello Police Department; the Los Angeles County Sheriff’s Department; and the California Department of Corrections and Rehabilitation, Special Services Unit.
As part of the investigation, undercover law enforcement officers and confidential informants infiltrated the Southside Montebello gang and obtained evidence of the gang’s crimes, including murders and methamphetamine distribution.
ATF Special Agent in Charge Eric Harden stated: “I applaud the agents and prosecutors who pursue investigative leads derived from crime guns. Linking trace and ballistic intelligence can also link the worst of the criminal element on our streets, providing some closure to families and communities.”
Round Rock Man Sentenced to Federal Prison in Connection with an Estimated $4.5 Million Ponzi SchemeRead the Press Release
In Austin today, William Risinger, owner of RHM Exploration, LLC, was sentenced to 160 months in federal prison in connection with a estimated $4.5 Million Ponzi scheme announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, Internal Revenue Service-Criminal Investigation Special Agent in Charge William Cotter, and Texas State Securities Board Commissioner John Morgan.
In addition to the prison term, United States District Judge Sam Sparks ordered a money judgment against Risinger for $3,722,975.54 to be paid to his victims and be placed on supervised release for a period of three years after completing his prison term.
In January 2016, Risinger, age 44, pleaded guilty to one count of wire fraud and one count of money laundering. By pleading guilty, Risinger admitted that from November 2010 to June 2014, he stole money from investors based on three fraudulent oil, gas and mineral venture schemes. According to court documents, Risinger used the proceeds of his scheme for his own personal use or as “lulling” payments in order to convince investors that the joint venture they invested in was operating as promised.
Risinger is in federal custody. According to court records, Risinger, who was on bond pending sentencing in this case, was arrested on April 25, 2016, for violating terms of his bond by traveling to Las Vegas. Testimony during today’s sentencing hearing revealed that Risinger lost an estimated $500,000 while gambling in Las Vegas between November 2015 and February 2016.
“Today's sentencing of William Risinger should sound an alarm to those looking to invest their hard-earned income,” said William Cotter, IRS Criminal Investigation Special Agent in Charge, San Antonio Field Office. “Risinger drilled all right - right into the pockets of unsuspecting individuals who trusted him with their monies because, apparently, Risinger's favorite partnership was with local casinos.”
This case is the result of a joint investigation conducted by the FBI, IRS-Criminal Investigation, and the Texas State Securities Board. Assistant United States Attorney Dan Guess prosecuted this case on behalf of the Government.
Project Safe Childhood - Kingston Man Sentenced for Child Pornography PossessionRead the Press Release
CONCORD, NEW HAMPSHIRE: Gene Mondalto, 37, of Kingston, New Hampshire, was sentenced to 60 months in federal prison by the United States District Court for the District of New Hampshire after pleading guilty to one count of possessing child pornography, announced United States Attorney Emily Gray Rice.
Information provided by the National Center for Missing and Exploited Children (NCMEC) led federal and state investigators to Mondalto’s Kingston, New Hampshire residence, where they discovered hundreds of videos and still images of child pornography on Mondalto’s personal computer.
The case was investigated by the New Hampshire Crimes Against Children Task Force in conjunction Homeland Security Investigations Manchester, and the police departments of Kingston, Hampton, Allenstown, Litchfield, Manchester, Portsmouth, Rye, and Salem, New Hampshire.
The case was prosecuted by Assistant United States Attorney Nick Abramson.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
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Pennsylvania Woman Sentenced to 40 Months in Prison for Role in International $200 Million Credit Card Fraud ConspiracyRead the Press Release
TRENTON, N.J. – A Philadelphia woman who participated in one of the largest credit card fraud schemes ever charged by the Justice Department was sentenced today to 40 months in prison, U.S. Attorney Paul J. Fishman announced.
Vernina Adams, 34, previously pleaded guilty before Judge Anne E. Thompson to an information charging her with one count of conspiracy to commit bank fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Adams was originally charged in February 2013 as part of a conspiracy, led by Tahir Lodhi, Babar Qureshi, Ijaz Butt, and others, to fabricate more than 7,000 false identities and obtain tens of thousands of credit cards. Since then, 19 people, including Adams, have pleaded guilty in connection with the scheme.
The scheme involved a three-step process in which the defendants would make up a false identity by creating fraudulent identification documents and a phony credit profile with the major credit bureaus; pump up the credit of the false identity by providing bogus information about that identity’s creditworthiness; then borrowed or spent as much as they could without repaying the debts – causing more than $200 million in confirmed losses to businesses and financial institutions.
The scope of the criminal enterprise required Adams and others to construct an elaborate network of false identities. Across the country, the conspirators maintained more than 1,800 “drop addresses,” including houses, apartments and post office boxes, which they used as the mailing addresses of the false identities.
Adams and her conspirators also used sophisticated methods – including a network of black-market businesses called “tradelines” providers – to commit fraud. Tradelines come in two varieties: primary tradelines and authorized user tradelines. Primary tradelines are lines of credit in a credit history. If a credit card user has primary tradelines in good standing, it can have a significant impact on the user’s credit score, enabling the user to borrow more from credit card issuers. A second kind of tradeline is the “authorized user” tradeline, where a credit card holder adds another individual to a credit card account. This raises the credit score of the authorized user, who inherits some of the primary user’s credit history.
During her plea proceeding, Adams admitted advertising on Craigslist for individuals willing to add someone onto their credit cards. She also admitted selling other members of the conspiracy fraudulent tradelines, including by working with Acapulco Jewelry, a complicit business in California. Adams would extend a fictitious line of credit to a false identity, backdate the line of credit so it appeared to have existed for a longer period of time, then falsely report the line of credit had been paid.
In addition to the prison term, Judge Thompson sentenced Adams to five years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI’s Cyber Division, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. He also thanked postal inspectors under the direction of Acting Inspector in Charge Cynthia Shoffner, special agents of the U.S. Secret Service, under the direction of Acting Special Agent in Charge Jeffrey Wood, and the U.S. Social Security Administration for their assistance.
The government is represented by Assistant U.S. Attorneys Zach Intrater and Daniel V. Shapiro of the U.S. Attorney’s Office Economic Crimes Unit, as well as Assistant U.S.
Attorney Barbara Ward, Acting Chief of the Asset Forfeiture and Money Laundering Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
Defense counsel: Vernina Adams: Todd E. Henry Esq., Philadelphia
New Orleans Man Charged with Sex Trafficking by Using Threats, Force and CoercionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DAVID MICHAEL WHITE, JR., a/k/a “Prince Loyalty,” age 32, of New Orleans, was charged today in a three-count Indictment for offenses related to his involvement in the sex trafficking of adult women in the New Orleans area.
According to the Indictment, WHITE is charged with one count of sex trafficking by force, fraud or coercion from on or about July 28, 2015, until on or about August 31, 2015, and with two counts of use of an interstate facility to promote prostitution in 2013, as well as 2015.
If convicted of Count One, WHITE faces a mandatory minimum term of imprisonment of fifteen years and a maximum of life, a $250,000 fine and a life term of supervised release following imprisonment. WHITE may also be required to register as a sex offender. As to Counts Two and Three, WHITE faces up to ten years in prison, a $250,000 fine and three years of supervised release following any term of imprisonment.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the New Orleans Field Offices of ICE Homeland Security Investigations as well as the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney Julia K. Evans is in charge of this prosecution.
Miami-Dade Resident Pleads Guilty in Stolen Identity Tax Fraud Scheme Involving Approximately 1,288 Debit Cards Containing More Than $1 Million in Tax RefundsRead the Press Release
A Miami-Dade County resident pled guilty for his participation in a stolen identity tax fraud scheme involving approximately 1,288 debit cards containing more than $1 million in tax refunds.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), and John E. Brooks, Chief, Sunrise Police Department, made the announcement that Yasmany Lopez, 28, pled guilty to one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) on May 3, 2016.
The sentencing hearing is scheduled for July 8, 2016 before U.S. District Judge Beth Bloom. At sentencing, Lopez faces a maximum statutory sentence of ten years in prison for the access device charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
According to court documents, in early 2012, individuals in Colombia negotiated with a confidential source (CS) to rent an airplane that would be used to transport controlled substances from Colombia to Honduras. As part of these negotiations, the individuals arranged delivery of $500,000 to the CS as payment to use the airplane. The CS received an initial payment of $170,000, and defendant Lopez contacted the CS to arrange delivery of the remaining $330,000. After Lopez met with the CS, officers stopped Lopez in his car. Lopez gave consent to search the vehicle, and the officers located two boxes containing $330,000 in cash, approximately 197 Turbo Tax debit cards and 1,035 Green Dot debit cards each bearing different individual’s names, mail addressed to several different individuals, and ATM receipts.
During a subsequent search of Lopez’s residence, law enforcement found an additional 48 Turbo Tax debit cards, 8 Green Dot debit cards, and numerous Turbo Tax mailing envelopes and cardholder agreements. The IRS determined that the 245 Turbo Tax cards found between Lopez’s car and residence had been loaded with approximately $1,071,188 in federal income tax refunds. The IRS identified the tax returns associated with fifteen of the seized debit cards. The individuals named on these tax returns are all residents of Puerto Rico, but the individuals did not authorize anyone to file these tax returns or to use their personal information.
Lopez admitted that he removed cash from the debit cards at ATMs in exchange for a 2% commission. He also recruited individuals who allowed Lopez to use their mailing addresses to receive the debit cards, in exchange for $100 per card. A portion of the $330,000 he was to deliver to the CS came from the debit cards in his possession.
Mr. Ferrer commended the investigative efforts of IRS-CI, the DEA, and the Sunrise Police Department. The case is being prosecuted by Assistant U.S. Attorney Jared M. Strauss.
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.
Liberty Reserve Founder Sentenced to 20 Years for Laundering Hundreds of Millions of DollarsRead the Press Release
Arthur Budovsky, 42, was sentenced today in the Southern District of New York to 20 years imprisonment for running a massive money laundering enterprise through his company Liberty Reserve S.A. (“Liberty Reserve”), a virtual currency once used by cybercriminals around the world to launder the proceeds of their illegal activity.
Assistant Attorney General Leslie R. Caldwell for the Justice Department’s Criminal Division and U.S. Attorney Preet Bharara for the Southern District of New York made the announcement.
In January, Budovsky pleaded guilty to one count of conspiring to commit money laundering. In imposing sentence, the court noted that Budovsky ran an “extraordinarily successful” and “large-scale international money laundering operation.” U.S. District Judge Denise L. Cote also ordered Budovsky to pay a $500,000 fine.
“The significant sentence handed down today shows that money laundering through the use of virtual currencies is still money laundering, and that online crime is still crime,” said Assistant Attorney General Caldwell. “Together with our American and international law enforcement partners, we will protect the public even when criminals use modern technology to break the law.”
“Liberty Reserve founder Arthur Budovsky ran a digital currency empire built expressly to facilitate money laundering on a massive scale for criminals around the globe,” said Manhattan U.S. Attorney Bharara. “Despite all his efforts to evade prosecution, including taking his operations offshore and renouncing his citizenship, Budovsky has now been held to account for his brazen violations of U.S. criminal laws.”
According to the indictment, Liberty Reserve billed itself as the Internet’s “largest payment processor and money transfer system” and allowed people all over the world to send and receive payments using virtual currency. At all relevant times, Budovsky directed and supervised Liberty Reserve’s operations, finances, and business strategy and was aware that digital currencies were used by other online criminals, such as credit card traffickers and identity thieves.
Liberty Reserve grew into a financial hub for cybercriminals around the world, trafficking the criminal proceeds of Ponzi schemes, credit card trafficking, stolen identity information and computer hacking. By May 2013, when the government shut it down, Liberty Reserve had more than 5.5 million user accounts worldwide and had processed more than 78 million financial transactions with a combined value of more than $8 billion. United States users accounted for the largest segment of Liberty Reserve’s total transactional volume – between $1 billion and $1.8 billion – and the largest number of user accounts – over 600,000.
Four co-defendants, Vladimir Kats, Azzeddine El Amine, Mark Marmilev and Maxim Chukharev, have already pleaded guilty. Marmilev and Chukharev were sentenced to five years and three years in prison, respectively. Judge Cote is expected to sentence Kats and El Amine May 13. Charges remain pending against Liberty Reserve and two individual defendants who are fugitives.
The U.S. Secret Service, the Internal Revenue Service-Criminal Investigation and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated this case as part of the Global Illicit Financial Team. The U.S. Secret Service’s New York Electronic Crimes Task Force assisted with the investigation. The Judicial Investigation Organization in Costa Rica, Interpol, the National High Tech Crime Unit in the Netherlands, the Spanish National Police’s Financial and Economic Crime Unit, the Cyber Crime Unit at the Swedish National Bureau of Investigation and the Swiss Federal Prosecutor’s Office also provided assistance.
Trial Attorney Kevin Mosley of the Criminal Division’s Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorneys Christian Everdell, Christine Magdo and Andrew Goldstein of the Southern District of New York are prosecuting the case. The Criminal Division’s Office of International Affairs and Computer Crime and Intellectual Property Section provided substantial assistance.
Liberty Reserve Founder Arthur Budovsky Sentenced in Manhattan Federal Court to 20 Years for Laundering Hundreds of Millions of Dollars Through His Global Digital Currency BusinessRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Leslie R. Caldwell, Assistant Attorney General for the Justice Department’s Criminal Division, announced that ARTHUR BUDOVSKY, 42, was sentenced today in Manhattan federal court to 20 years in prison for running a massive money laundering enterprise through his company Liberty Reserve, a virtual currency once used by cybercriminals around the world to launder the proceeds of their illegal activity. BUDOVSKY was arrested in Spain in May 2013 and was extradited to the United States in October 2014. BUDOVSKY pled guilty to one count of conspiring to commit money laundering on January 29, 2016, three days before his trial was scheduled to begin. U.S. District Judge Denise L. Cote imposed today’s sentence, noting that the defendant did not express any “genuine remorse,” and that his crimes caused “widespread harm” and led to “countless victims of fraud around the world.”
Manhattan U.S. Attorney Preet Bharara stated: “Liberty Reserve founder Arthur Budovsky ran a digital currency empire built expressly to facilitate money laundering on a massive scale for criminals around the globe. Despite all his efforts to evade prosecution, including taking his operations offshore and renouncing his citizenship, Budovsky has now been held to account for his brazen violations of U.S. criminal laws.”
Assistant Attorney General Leslie R. Caldwell stated: “The significant sentence handed down today shows that money laundering through the use of virtual currencies is still money laundering, and that online crime is still crime. Together with our American and international law enforcement partners, we will protect the public even when criminals use modern technology to break the law.”
According to the allegations contained in the Indictment filed against Liberty Reserve, BUDOVSKY, and six other individual defendants; BUDOVSKY’s plea agreement; the evidence filed with the sentencing submissions for BUDOVSKY; and statements made in related court filings and proceedings:
Liberty Reserve S.A. (“Liberty Reserve”) billed itself as the Internet’s “largest payment processor and money transfer system” and operated one of the world’s largest and most widely used digital currencies, which could be used to send and receive payments, via the Internet, to and from people all over the world. At all relevant times, BUDOVSKY directed and supervised Liberty Reserve’s operations, finances, and business strategy.
Liberty Reserve was originally conceived by BUDOVSKY and co-defendant Vladimir Kats in Brooklyn, New York, in approximately 2001, and became operational in late 2005. From his previous experience with “GoldAge” – a digital currency exchange business that he ran with Kats – BUDOVSKY was aware that a substantial volume of digital currency transactions were related to Internet investment schemes called high-yield investment programs (“HYIPs”), which he knew to be online Ponzi schemes. BUDOVSKY was also aware that digital currencies were used by other online criminals, such as credit card traffickers and identity thieves.
BUDOVSKY designed Liberty Reserve specifically to appeal to these online criminals in order to capture their business. Among other things, BUDOVSKY set up Liberty Reserve to have weak anti-money laundering (“AML”) controls and allowed users to move money anonymously through Liberty Reserve’s system, regardless of the volume or provenance of the funds. BUDOVSKY also marketed Liberty Reserve specifically to HYIP operators and other criminal clientele.
In May 2006, BUDOVSKY and Kats were arrested and later pled guilty to operating GoldAge as an unlicensed money transmitting business. Following their arrests, over the next two years, BUDOVSKY and Kats moved Liberty Reserve’s operations offshore to Costa Rica in an attempt to insulate themselves from the reach of U.S. law enforcement. BUDOVSKY was so committed to evading U.S. law enforcement that he later renounced his U.S. citizenship and became a Costa Rican citizen. In May 2008, BUDOVSKY pushed Kats out of Liberty Reserve and became the sole beneficial owner and principal operator of the company, with final decision-making authority over company decisions. BUDOVSKY maintained this role until Liberty Reserve was shut down in May 2013.
During the time period from 2009 to 2013, Liberty Reserve reached the height of its activity. At its peak in late 2012, Liberty Reserve handled a transactional volume of over $300 million per month, a significant portion of which came from users in the United States. BUDOVSKY knew that a substantial number of these transactions were connected to HYIPs and other online criminal activities, and continued to operate Liberty Reserve to cater to these customers. Among other things, BUDOVSKY and his co-conspirators intentionally failed to implement effective AML controls at Liberty Reserve. BUDOVSKY and his co-conspirators also took steps to prevent the Costa Rican regulatory authorities and Liberty Reserve’s own compliance officials from discovering the criminal transactions flowing through Liberty Reserve.
Liberty Reserve ultimately grew into a financial hub for cybercriminals around the world who used it to amass, distribute, store, and launder criminal proceeds derived from HYIPs, credit card trafficking, stolen identity information, and computer hacking. By May 2013, when it was shut down as a result of the Government’s criminal investigation, Liberty Reserve had more than 5.5 million user accounts worldwide, and had processed more than 78 million financial transactions with a combined value of more than $8 billion. United States users accounted for the largest segment of Liberty Reserve’s total transactional volume – between $1 billion and $1.8 billion – and the largest number of user accounts – over 600,000. As part of his plea agreement, BUDOVSKY admitted to laundering between $250 million and $550 million in criminal proceeds linked to Liberty Reserve accounts based in the United States.
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Two co-defendants – Mark Marmilev and Maxim Chukharev – pled guilty and have been sentenced to five and three years in prison, respectively. Two other co-defendants – Vladimir Kats and Azzeddine El Amine – are currently scheduled to be sentenced before U.S. District Judge Denise L. Cote on May 13, 2016. Charges against Liberty Reserve and two individual defendants who have not been apprehended remain pending.
Mr. Bharara praised the outstanding work of the United States Secret Service, the Internal Revenue Service-Criminal Investigation, and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, which worked together in this case as part of the Global Illicit Financial Team. Mr. Bharara also thanked the United States Secret Service’s New York Electronic Crimes Task Force for its extraordinary assistance with the investigation. Additionally, Mr. Bharara specially thanked all the international law enforcement agencies that assisted in the investigation, in particular, the Judicial Investigation Organization in Costa Rica, Interpol, the National High Tech Crime Unit in the Netherlands, the Spanish National Police-Financial and Economic Crime Unit, the Cyber Crime Unit at the Swedish National Bureau of Investigation, and the Swiss Federal Prosecutor’s Office.
This case is being prosecuted jointly with the Department of Justice’s Asset Forfeiture and Money Laundering Section (“AFMLS”), which is overseen by Assistant Attorney General Leslie R. Caldwell. Mr. Bharara thanked AFMLS for its partnership and also thanked the Department of Justice’s Office of International Affairs and Computer Crime and Intellectual Property Section for their support.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Asset Forfeiture Unit. Assistant United States Attorneys Christian Everdell, Christine Magdo, and Andrew Goldstein of the Southern District of New York and Trial Attorney Kevin Mosley of AFMLS are in charge of the prosecution.
Leader and Two Co-Conspirators Plead Guilty This Week to Bank Fraud Scheme Involving over 200 VictimsRead the Press Release
Baltimore, Maryland – Tariq Hicks, age 48, of Owings Mills, Maryland, pleaded guilty on May 2, 2016; and Eddie Carey, age 32; and Ishia Biff Cason, age 36, both of Baltimore, pleaded guilty on May 5, 2016, to bank fraud conspiracy and aggravated identity theft arising from a scheme to use stolen credit information of more than 200 victims to defraud financial institutions.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to their plea agreements, from at least June 2013, through December 18, 2013, Hicks, Carey, Cason, and others, conspired to defraud financial institutions by accessing stolen credit card and debit card accounts belonging to real people and using counterfeit cards encoded with the stolen account information to make unauthorized purchases.
Hicks purchased the stolen account information over the internet and used a computer and an electronic device called a “reader-writer” to encode the stolen credit and debit card information onto existing credit cards, gift cards, or other similar cards. These cards were sold or distributed to co-conspirators, such as Carey and Cason, who used them and provided the bulk of the proceeds to Hicks.
Hicks also purchased or obtained over the internet “credit profiles” containing the identity information of victims. He then obtained full credit reports for these victims. Using the information from the credit reports, Hicks sent co-conspirators into stores where the victims had existing credit accounts, with the victim’s personal identity information so that they could “authenticate” themselves as the victim. The co-conspirators, including Carey and Cason, would then make purchases on the existing accounts (called “account takeover”). In addition, Hicks used the credit reports to identify stores at which a victim did not have an account, and sent Carey, Cason and other co-conspirators into those stores with the same personal identity information. The co-conspirators would apply for new credit accounts in the victim’s identity, and then use that “instant credit” to make purchases before the victim learned of the account.
For all of these schemes, Hicks obtained fraudulent drivers’ licenses which bore the information of the victim, but the photograph of a co-conspirator. Hicks or a co-defendant would often provide a cheat sheet with the necessary personal identity and account information so that the co-conspirator would have ready and covert access to the information as needed. The co-conspirators could then use the counterfeit license to establish their identity as the victim.
Carey assisted Hicks by conducting wire transfers of money in payment for the stolen credit card numbers and personal profiles. Carey always used a victim identity, provided by Hicks, to wire the money, usually between $2,000 and $3,000, to an individual in the Ukraine. As one of the few men participating in the conspiracy, Carey was often involved in the exploitation of any male victim’s identity and account information. He used the counterfeit cards both to purchase merchandise and to rent cars for use by members of the conspiracy.
Hicks instructed Carey and others to travel to other states to engage in the fraud. Carey frequently traveled north to Pennsylvania and south as far as Georgia to engage in fraud, including North and South Carolina, West Virginia, and Virginia. As they traveled, Carey used counterfeit cards in victims’ names to rent hotel rooms and automobiles. Cason, who was on probation at the time and not allowed to travel outside of Maryland, conducted her fraudulent activities in Maryland.
On December 18, 2013, a search warrant was executed at Hicks’ residence, where he lived with Carey and another co-defendant. Located on the dining table in the kitchen area was a complete set up for the fraud scheme, including a computer with the credit profiles and credit reports on it, a reader/writer device, credit cards in various states of manufacture, money gram receipts for payments for the stolen credit card numbers and profiles, lists of personal identity information and “cheat sheets.” Also recovered were dozens of credit cards bearing victims’ names and accounts, as well as dozens of fraudulent identification to match the credit cards, all bearing the information of the victims but the photographs of co-conspirators. In Hicks’ bedroom was a receipt for a storage unit which was rented in a false identity used by a co-defendant. A search warrant was executed on the storage unit and a duplicate “mill” was located, including an embosser to manufacture embossed credit cards, and boxes containing hundreds of blank plastic cards ready for counterfeiting, including white, gold, silver and black cards. There were also over 150 cards in various states of manufacture.
Over 450 compromised accounts were compiled from the evidence seized from the residence and storage locker, although most had not yet been used in the scheme. There were over 200 victims, including businesses and financial institutions which sustained an actual loss and victims who had their identities compromised in the conspiracy. Based on the individual victims and credit accounts which were recovered from the search warrant, actual losses associated with the scheme are $61,030.78. As part of their plea agreements, the defendants will be required to pay restitution in the full amount of the victims’ losses.
The defendants each face a maximum sentence of 30 years in for the bank fraud conspiracy, and a mandatory two years in prison, consecutive to any other sentence imposed, for aggravated identity theft. U.S. District Judge James K. Bredar scheduled sentencing for Hicks on June 10, 2016 at 9:30 a.m.; for Carey on August 18, 2016 and for Cason on August 5, 2016, both at 2:00 p.m.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Tamera L. Fine, who is prosecuting the case.
Kalihi Man Sentenced to 20 Years in Prison for Child Pornography OffensesRead the Press Release
HONOLULU – Michael K. Kormanik, age 54, of Kalihi, was sentenced yesterday by Senior District Judge Helen Gillmor in federal court to 20 years imprisonment, followed by supervised release for life, for transporting and possessing child pornography. As part of his federal conviction, Kormanik will be required to register as a sex offender. Kormanik was charged with and pled guilty to two counts of transportation of child pornography and one count of possessing child pornography.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to information produced in court, Kormanik’s home computer contained more than 3,000 images and more than 400 videos of child pornography, and an IP address associated with Kormanik on a peer-to-peer file sharing network also had images of child pornography.
Kormanik faced a mandatory minimum sentence of 15 years because he had a prior conviction for sexual assault of a minor, related to his repeated sexual abuse of a ten-year-old boy. Kormanik also admitted having previously sexually abused two other young boys. During the sentencing proceedings, Judge Gillmor expressed serious concern that Kormanik had recently been spending significant time with young boys who lived in his neighborhood, and that he had provided them with marijuana.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney Marc A. Wallenstein.
Justice Department Statements Regarding Court Approval of the Agreement with Newark, New Jersey, to Reform Unconstitutional Policing PracticesRead the Press Release
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Paul J. Fishman of the District of New Jersey released the following statements regarding the U.S. District Court for the District of New Jersey’s approval of the department’s agreement with the city of Newark, New Jersey, to reform the police department’s unconstitutional practices:
“We appreciate the court’s swift approval of the Justice Department’s consent decree with the city of Newark,” said Principal Deputy Assistant Attorney General Gupta. “This agreement will help the Newark Police Department reform policies, improve systems and rebuild trust between officers and the community they serve. As Newark implements this agreement, we will continue to work closely with city officials, law enforcement and community members to put in place the necessary changes that can make Newark a national model for constitutional, effective and accountable policing. Once fully implemented, these reforms will make all of those in Newark – officers and civilians alike – safer. And these reforms will ensure that law enforcement in Newark complies with the Constitution and safeguards the civil rights of every Newark resident.”
“This consent decree, now approved by the court, provides a roadmap for reform in Newark and a model for best practices for police departments across the country,” said U.S. Attorney Fishman. “Implementing the systemic changes outlined in the consent decree will take time, but this is what the city of Newark and the men and women who serve in the Police department want and need, and it is what the people of Newark deserve: a first-class police department that keeps them safe and respects their constitutional rights.”
Judge Sends Sea Turtle Egg Smugglers to PrisonRead the Press Release
Assistant U.S. Attorney Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY – May 6, 2016
SAN DIEGO – Jose and Olga Jimenez of Hemet, California, were sentenced in federal court today to six months in custody for smuggling 911 eggs of the endangered olive ridley sea turtles into the United States from Mexico.
In imposing sentence, U.S. District Court Judge Janis L. Sammartino noted that the case involved the largest seizure in U.S. history of sea turtle eggs imported from Mexico, and the method of transportation (26 hours on ice by bus) caused the eggs not to be viable, preventing any mitigation. Judge Sammartino stated that a custodial sentence was justified based on the serious impact on the species resulting from the offense.
According to sentencing papers filed with the court, on November 23, 2014, Olga Jimenez boarded a bus in Nayarit, Mexico, in order to travel north to Tijuana. Ms. Jimenez had spent the week visiting family and was traveling with her sister. Ms. Jimenez brought with her a large white cooler containing 911 sea turtle eggs (weighing 61 pounds). The eggs were stored in nine plastic bags, concealed underneath a thin layer of fish and shrimp, and separated from the fish and shrimp by an additional layer of ice.
On November 24, 2014, Olga’s husband, Jose Jimenez, drove from their residence in Hemet, California, to the border and walked across to meet her in Mexico. The defendants met at the bus station in Tijuana and transferred the eggs from Ms. Jimenez’s single white cooler into two smaller red coolers that Mr. Jimenez had brought with him. The couple again covered the eggs with a layer of ice and then a layer of fish and shrimp on top.
Two of the defendants’ sons had traveled to Mexico to meet their aunt and drive her from the bus station in Tijuana to her residence in the Los Angeles area. The defendants asked their son to take the two coolers across the border in his pick-up truck. Their sons agreed after being told that the coolers contained only fish and shrimp, presuming the coolers would be dropped off at their parent’s home in Hemet.
The sons and their aunt attempted to enter the United States in the pick-up truck, while the defendants entered the United States as pedestrians. At the San Ysidro Port of Entry, their son driving declared the fish and shrimp he was told were in the cooler. The border inspectors began searching the cooler and quickly discovered the contraband sea turtle eggs. When confronted with the eggs, all three individuals in the pick-up truck told the officers that they were unaware of the eggs origin or presence.
Olga Jimenez was aware that her children and sister had been sent to secondary inspection because one of her sons had called her as soon as they were stopped. After the sea turtle eggs were discovered, she did not respond to several phone calls and texts from her son.
According to the sentencing papers, Olga Jimenez has sold seafood in the United States in the past. Her clients include a mechanic who told investigators that he has purchased seafood from Ms. Jimenez approximately 20 times and that he usually purchased seafood from her by the kilogram. He also related that she has sold him specialty items such as marlin and scallops.
Olga Jimenez has also been stopped at the border on several other occasions for attempting to bring seafood and protected species into the United States. Customs records indicate that on June 23, 2013, Olga Jimenez entered the United States with five parrots and 5 pounds of ciruelas (a plum not permitted entry due to the potential to contaminate U.S. crops). The ciruelas were concealed under a layer of dried shrimp in a box. The parrots were found to be a species covered by the Convention on International Trade in Endangered Species (CITES) and were seized, along with the cireulas, and Jimenez was assessed an administrative penalty.
On August 27, 2009, Olga Jimenez was returned to Mexico because she was bringing a commercial quantity of food without a commercial declaration. On March 20, 2009, Olga Jimenez was admonished as a recidivist, bringing a commercial quantity of food without a commercial declaration. On March 5, 2009, Olga Jimenez was returned to Mexico for bringing a commercial quantity of fish and shrimp into the United States without a commercial declaration. On May 30, 2008, Olga Jimenez was assessed an administrative penalty as a recidivist for bringing in a commercial quantity of food without a commercial declaration. On October 10, 1999, Olga Jimenez was admonished for bringing in a commercial quantity of fish. On July 24, 1999, Olga Jimenez was assessed an administrative penalty for bringing in a commercial quantity of fish.
The significance of the defendants’ illegal acts is further heightened by the paucity of olive ridley sea turtles in Mexico. According to the National Oceanic and Atmospheric Administration, the Nayarit area currently only has a nesting population of 100 females. The impact of poaching on this small population is more significant than on a large nesting beach, as sea turtles come back to the same nesting beach from which they hatched. The 911 eggs taken by the defendant represent 4.3% of the total egg production for that nesting season at the beach in Nayarit.
Offenses involving eggs have a unique capacity to harm the species. When an egg is destroyed, the defendant removes not only that specific potential animal from the population, but also all potential offspring that could have eventually been borne by that animal and its descendants. According to the statistics from the International Union for the Conservation of Nature and Natural Resources relating to the hatch rate and reproductive rate, the number of third generation offspring lost in this case is greater than the entire nesting population of olive ridley sea turtles in Nayarit.
Olive ridley and sea turtles were initially identified as endangered under the U.S. Endangered Species Act, in 1978, and in 1981, they were placed on Appendix I of the Convention on International Trade in Endangered Species (“CITES”). Both Mexico and the United States are signatories to CITES. It is a violation of law in both countries to trade in olive ridley sea turtles or any part of those sea turtles, including their eggs, without permission from the respective governments.
Olive ridley sea turtles (Lepidochelys olivacea) inhabit a broad range extending in the South Atlantic Ocean from West Africa to South America and in the eastern Pacific Ocean from Southern California to Northern Chile. Adults weigh approximately 100 pounds, and have olive/grayish-green heart-shaped shells measuring 22‑31 inches in diameter.
“The loss of hundreds of endangered sea turtle eggs is immeasurable,” said U.S. Attorney Laura Duffy. “This case is another example of our commitment to prosecuting wildlife traffickers who seek to profit from illegal trade in endangered species here at the border.”
“The U.S. Fish and Wildlife Service Office of Law Enforcement works diligently with our partner agencies at the border to curb the illegal wildlife trade as it indelibly harms a wide variety of endangered species,” said US Fish and Wildlife Service Special Agent in Charge Jill Birchell. “In their unscrupulous quest to reap profits, smugglers of wildlife and wildlife products continue to damage extremely vulnerable species, and are pushing some critically endangered animals and plants on a path toward extinction. Halting the illegal wildlife trade remains one of our highest priorities.”
“Smuggling wildlife of any kind, especially endangered species, is something we take seriously,” said Eileen Sobeck, assistant administrator for NOAA Fisheries. “We will not tolerate violation of federal and international laws regarding the illegal trade of endangered species, and we will continue to take a hard stance in combating wildlife trafficking.”
A further hearing regarding the amount of restitution to be paid to the government of Mexico for the loss of its natural resource is set for Friday, June 10, 2016, at 2:00 p.m.
DEFENDANTS Criminal Case No. 15cr2867-JLS
Olga Jimenez Age: 52
Hemet, California
Jose Jimenez Age: 64
Hemet, California
SUMMARY OF CHARGES
Conspiracy – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and $250,000 fine
Smuggling- Title 18, U.S.C., Section 545
Maximum penalty: Twenty years in prison and $250,000 fine
Importation Contrary to Law- Title 18, U.S.C., Section 545
Maximum penalty: Twenty years in prison and $250,000 fine
Unlawful Trafficking in Wildlife-Title 16, U.S.C. Sections 3372 and 3373
Maximum penalty: Five years in prison and $250,000 fine
Criminal Forfeiture- Title 16, U.S.C., Section 3374
AGENCIES
U.S. Fish and Wildlife Service, Office of Law Enforcement
National Oceanic and Atmospheric Administration, Office of Law Enforcement
Honduran Man Sentenced for Illegal Reentry After DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced that Milson Reyes-Alvarez, of Honduras, was sentenced to time already served since his arrest on February 10, 2016, following his guilty plea to illegally reentering the United States after having been previously deported. Reyes-Alvarez’s plea and sentencing were held the same day under a program used by the United States Attorney’s Office to quickly sentence and deport defendants found in New Hampshire after having been previously deported.
In December of 2015, a Deportation Officer developed information which indicated that Milson Reyes-Alvarez was present in the United States after having been deported on one previous occasion. In order to confirm this information, the Deportation Officer interviewed Reyes-Alvarez on February 10, 2016. The defendant confirmed his true name and that he was illegally present in the United States without any immigration documents. Reyes-Alvarez was then taken into ICE custody. A subsequent fingerprint comparison definitively identified Reyes-Alvarez as having been previously deported.
The case was investigated by the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement and prosecuted by Assistant U.S. Attorney Alfred Rubega.
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Henderson Man Sentenced to 68 Months for Being A Felon in Possession of A FirearmRead the Press Release
NEW BERN – The United States Attorney’s Office announced that yesterday in federal court, United States District Judge Louise W. Flanagan sentenced CADARIUS RHASHA CALDWELL, 25, of Henderson to 68 months imprisonment, followed by 3 years of supervised release.
CALDWELL was named in an Indictment filed on December 16, 2015, charging him with being a Felon in Possession of a Firearm and Ammunition. On February 18, 2016, CALDWELL pled guilty to the charge.
On April 16, 2015, an officer with the Oxford Police Department initiated a traffic stop on a vehicle driven by CALDWELL after he failed to stop at a stop sign. CALDWELL told the officer that he did not have a driver’s license. CALDWELL, and a passenger, were removed from the vehicle. A subsequent search of the vehicle yielded an extended magazine underneath the driver’s seat. Officers then located a Glock 9mm handgun on the ground a few feet from the passenger side of the vehicle. The magazine in the car was a match to the firearm outside the car.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Oxford Police Department, the Henderson Police Department, and the Bureau of Alcohol Tobacco Firearms and Explosives. Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.
Great Falls Man Sentenced for Theft from MalmstromRead the Press Release
GREAT FALLS – John Edmonston, 54, of Great Falls, was sentenced yesterday for conspiracy to defraud the United States. Edmonston, a civilian, and at least three other individuals (all enlisted in the United States Air Force) were part of a scheme to take equipment and tools from Malmstrom Air Force Base in Great Falls, Montana. They would either purchase items directly for themselves or they would take items previously purchased. Edmonston was sentenced to five years probation and ordered to pay restitution of $5,523.65 to Malmstrom Air Force Base. U.S. District Court Judge Brian Morris presided over the sentencing.
In documents filed with the Court, the United States Attorney’s Office outlined the proof against Edmonston. Edmonston was the Vehicle Management Flight Chief for the 341st Logistics Readiness Squadron (341 LRS). He is a twenty-year Air Force veteran and served as the chief in this squadron as a civilian. Air Force Office of Special Investigations (OSI) had been contacted by a witness who reported seeing improper purchases using Government Purchase Cards (GPC Cards) or taking items previously purchased with United States Air Force funds. Edmonston was an “approving official” for the GPC cards, therefore, items within the 341 LRS were purchased with his approval and knowledge, even if items purchased with GPC Cards were issued to other individuals within the squadron.
The OSI obtained copies of government emails between Edmonston and other individuals sent between August 2014 and January 2015. The emails revealed the extent of Edmonston’s direction and involvement. For example, Edmonston directed subordinates to purchase improper items with GPCs. In one email, Edmonston instructed a subordinate, in reference to an incoming purchase, this is “[s]tuff to stash in back once it rolls in” and the “[l]east amount of people seeing the better.” In a later email, Edmonston acknowledged mistakenly having the improperly purchased items delivered to the 341 LRS.
Law enforcement conducted a search of Edmonston’s residence in June 2015. Law enforcement seized items previously purchased with United States Air Force funds. A subsequent search of a co-conspirator’s residence also led to the discovery of improperly purchased items.
This case was investigated by Homeland Security Investigations and Air Force Office of Special Investigations and prosecuted by the United States Attorney’s Office.
Granite City Man Sentenced for Methamphetamine OffenseRead the Press Release
The Acting United States Attorney for the Southern District of Illinois, James L. Porter, announced today that Arthur C. Hawkes, 45, of Granite City, Illinois, was sentenced in U.S. District Court on May 6, 2016 to a term of 36 months in federal prison for Possession With Intent to Distribute Methamphetamine.
Hawkes pled guilty to the federal charge on January 29, 2016. He has been continuously confined in federal custody since May, 2015.
At his change of plea hearing, Hawkes admitted that he had possessed two ounces of methamphetamine on April 19, 2015 in Granite City. Police discovered the methamphetamine in Hawkes’ pants while he was being booked for multiple traffic violations. Hawkes also admitted that he had intended to sell the methamphetamine which he possessed, which had a street value of $1,000.00, in the Granite City area.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations.
The investigation which resulted in Hawkes’ arrest and conviction was conducted by the Granite City Police Department and by the U.S. Drug Enforcement Administration (DEA).
The case was assigned to Assistant United States Attorney Robert L. Garrison.
Former Twin Peaks Manager Sentenced to 25 Years in Prison for Attempted Enticement of a Minor and Production of Child PornographyRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, Special Agent in Charge Diane Upchurch, of the Little Rock Field Office for the Federal Bureau of Investigations (FBI), and Pulaski County Sheriff Doc Holladay announced today that Larry Wayne Wilder, age 28, of Maumelle, Arkansas, was sentenced to 25 years imprisonment for attempted enticement of a minor to engage in a sex act and production of child pornography.
A superseding information charged Wilder with one count of attempted enticement of a minor to engage in sexual activity and one count of production of child pornography. On Friday, Wilder pleaded guilty to the superseding information, and pursuant to the plea agreement the United States and Wilder agreed to recommend a sentence of 25 years imprisonment. Chief United States District Judge Brian S. Miller sentenced Wilder to 120 months for the attempted enticement of a minor and 180 months for the production of child pornography, to run consecutive for a total of 300 months or 25 years imprisonment, and 20 years of supervised release.
"Today’s case continues to show the dark side of the internet and the ease with which adults can prey on young children," Thyer said. "What is particularly disturbing in this case is the predator acted not just on the internet, but made contact with victims in real life. Thankfully, today’s lengthy prison sentence will put an end to his heinous criminal activity. Unfortunately, there are others like him still out there, and parents must always be vigilant in monitoring their children’s social media usage and should remind their children that they never know who is on the other end of the computer."
The charges in the superseding information were based on an investigation that began in August 2015, when the FBI received a tip from the National Center for Missing and Exploited Children (NCMEC) that an adult male was having inappropriate communications with two minors using social media. Members of the Pulaski County Sheriff’s Office and the FBI then conducted an online takeover of one of the minor’s social media accounts. During the course of conversations between Wilder and an undercover officer, Wilder arranged to meet the undercover officer at a local park for the purpose of having sex. Wilder was arrested when he arrived at the park.
During a subsequent interview, Wilder admitted to lying about his age on social media and pretending to be a minor because it was easier to talk with minors the same age. Wilder admitted to meeting boys and girls under the age of 18 years old with the intent to have sex, and he could not recall how many minors he had met for sex. Wilder admitted to paying minors money for sexual acts. Wilder also admitted to having child pornography on his phone, which he gave officers consent to search.
A search of his cellular telephone revealed 140 videos and 2,600 images of child pornography. The search of his cellular telephone also revealed multiple conversations in which he was asking minors to send him sexually explicit pictures. Specifically, Wilder had a conversation with one minor during which he asked the minor to send him photographs of the minor’s genitals. The minor sent the pictures, and Wilder then asked the minor to send additional sexually explicit pictures. When the minor refused the second request, Wilder told the minor that he was going to post the minor’s pictures on the internet.
"Today’s sentence demonstrates the resolve of law enforcement to apprehend dangerous sex offenders who take advantage of our most precious resource, our children," Special Agent in Charge Upchurch said. "Along with our partners at the Pulaski County Sheriff’s Office and the United States Attorney’s Office, we will continue to take steps to ensure that individuals such as Wilder pay for their deplorable actions."
The investigation was conducted by the Little Rock Office of the Federal Bureau of Investigations and the Pulaski County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Kristin Bryant.
Former Office Manager of Baton Rouge Surgery Group Convicted of Wire FraudRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that LORRIE LYNN ROGERSON, age 57, of Baton Rouge, Louisiana, has pled guilty before U.S. District Judge John W. deGravelles to engaging in a wire fraud scheme to defraud the Pediatric Surgery of Louisiana (“PSL”), a group of Baton Rouge physicians who specialize in surgery on children. As a result of the scheme, Rogerson embezzled approximately $430,490 from PSL. The sentencing date has not yet been set.
PSL employed Rogerson to act as their office manager. Rogerson was responsible for PSL’s payroll, accounts receivable, accounts payable, and human resources. In her role, Rogerson enjoyed access to the bank accounts of PSL for the purpose of making deposits to, and paying bills from, the PSL bank account. Rogerson was entrusted with the authority and responsibility to manage PSL’s banking affairs. Rogerson had access to all accounts and was familiar with PSL’s account information.
In April 2015, a review of PSL financial records discovered that Rogerson had accessed PSL’s bank account to make unauthorized withdrawals and transfers for her personal benefit. Between May 2008 and May 2015, Rogerson caused unauthorized electronic withdrawals to be made from the PSL bank account for the purpose of paying Rogerson’s credit cards. Rogerson also issued numerous, unauthorized PSL checks for her benefit, and mischaracterized said checks in the accounting software as business expenses.
Rogerson embezzled funds on approximately 256 occasions during the period of May 2008 and May 2015. In order to execute the scheme to defraud on January 5, 2015, Rogerson used internet services to divert funds from a PSL bank account for the purpose of paying her personal credit card bills.
U.S. Attorney Green stated: “Insider fraud continues to be one of the biggest threats facing our business community. Together with the FBI and our other federal, state, and local partners, we will continue to aggressively meet and pursue this threat through federal criminal investigations and prosecutions. We commend the victim, PSL, for its cooperation and assistance in this matter.”
FBI Special Agent-In-Charge Jeffrey S. Sallet stated: “This case is yet another example of the FBI’s commitment to work with our partners at the United States Attorney’s Office to investigate and prosecute individuals who willingly violate the law in order to personally enrich themselves at the expense of others.”
This matter is being prosecuted by the United States Attorney’s Office for the Middle District of Louisiana. The investigation has been conducted by the Baton Rouge Resident Office of the Federal Bureau of Investigation, with substantial assistance provided by the victim, PSL and their accountants. The matter is being prosecuted by Assistant United States Attorney René Salomon.
Former Methuen Resident Pleads Guilty to Drug TraffickingRead the Press Release
CONCORD – United States Attorney Emily Gray Rice announced that Justin Bartimus, 35, formerly of Methuen, Massachusetts, pleaded guilty on May 4, 2016 to: (1) conspiracy to distribute, and possess with intent to distribute, oxycodone and cocaine and (2) distribution of oxycodone. Bartimus appeared before United States District Court Judge Steven J. McAuliffe to enter his guilty plea.
According to documents that were filed in United States District Court and statements in the plea proceeding, Bartimus admitted that he sold oxycodone to a cooperating individual in Haverhill and Methuen, Massachusetts and in Salem, New Hampshire. He also admitted that he participated in the distribution of cocaine and oxycodone with others individuals.
A sentencing hearing has been scheduled for August 30, 2016.
Bartimus is one of six individuals indicted by a federal grand jury on September 23, 2015, and charged with conspiracy to distribute, and possession of controlled substances with intent to distribute. The other defendants are: Mara Morillo, 40, of Haverhill, Massachusetts, Franklyn Morillo, 41, of Haverhill, Massachusetts, Juan Rojas, 31, of Haverhill, Massachusetts, Jorge Medina, 25, of Haverhill, Massachusetts, and Michael Lally, 28, of Salem, New Hampshire.
In addition to the above charges, Rojas also was charged with possession of a firearm in furtherance of a drug trafficking crime. Rojas is further charged with conspiracy to possess a firearm in furtherance of a crime of violence in a separate indictment. Lally pleaded guilty on March 22, 2016. His sentencing is scheduled for June 29, 2016. The remaining defendants in the drug conspiracy case are scheduled for trial on September 20, 2016.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The Drug Enforcement Administration’s Tactical Diversion Squad led the investigation with assistance from the Haverhill, Massachusetts Police Department. It is being prosecuted by Assistant United States Attorney John J. Farley.
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Former Marine Corps Contracting Officer Sentenced to 37 Months for ConspiracyRead the Press Release
NEW BERN – The United States Attorney’s Office announced that today in Federal court, United States District Judge Louise W. Flanagan sentenced DAVID G. LIU, 41, of Monterey, California to 37 months imprisonment, followed by 3 years of supervised release.
LIU was named in a Criminal Information filed on November 30, 2015, charging him with Conspiracy to Violate the Procurement Integrity Act. On January 13, 2016, LIU pled guilty to the charge.
John F. Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service (DCIS), stated, "Mr. Liu abandoned his obligations in a position of trust with the U.S. Marine Corps and undermined the integrity of the Federal procurement process. DCIS, in concert with our law enforcement partners, will use all available law enforcement resources to bring violators to justice to combat fraud and corruption affecting Defense programs."
"David Liu put personal profit ahead of his responsibilities to Department of the Navy and the country. NCIS will continue to assertively investigate fraud, to ensure our warfighters have every resource rightfully entitled to them and to hold accountable those who perpetrate economic crime." said Acting Special Agent in Charge Todd Battaglia, NCIS Carolinas Field Office.
Acting U.S. Attorney John Stuart Bruce remarked, “It’s disappointing that Captain David Liu abused the trust placed in him and put personal profit ahead of his duty to his country. This prosecution was the product of great work by the NCIS, DCIS, and FBI.”
During the offense period, LIU was a captain in the Marine Corps posted to the Combined Joint Task Force-Horn of Africa (CJTF-HOA) in Djibouti, Africa. As a contracting officer, LIU was entrusted to evaluate bid proposals from potential suppliers and to award government contracts that were the most appropriate and advantageous for the needs of CJTF-HOA.
A Federal investigation into LIU’s activities revealed that from September 2012 until January 2013, LIU and two government contractors conspired to exchange and use protected procurement information of competitors for the purpose of mounting successful bids for a $495,000 Blanket Purchase Agreement (BPA). The BPA was established by the United States Navy for the procurement of multimedia services in Somalia.
The investigation revealed that LIU was closely associated with the contractors and sought to abuse his position of trust as a Marine Corps contracting officer for his and their personal gain. In furtherance of the conspiracy, LIU unlawfully provided the contractors with protected bid information submitted by competing firms that were actively seeking BPA awards. The contractors, in turn, used the stolen bid information to craft their own proposals and undercut the competitors’ pricing and other terms. After all the bids were submitted to CJTF-HOA and were pending LIU’s evaluation, LIU solicited his co-conspirators to assist him in paying down a debt he owed to a supplier on an unrelated and unauthorized “side deal” for two government vehicles. The scheme included LIU’s creation of a sham government contract for the vehicles worth $28,000, the awarding of the contract to the Ugandan contractor, and the diversion of the resulting government funds back to LIU through a complex series of pre-ordained international wires and withdrawals.
The government contractors with whom LIU conspired were based in Jacksonville, North Carolina, and Kampala, Uganda, respectively. Contractor Monroe Allen Stueber, Jr. pled guilty to one count of unlawfully obtaining procurement information on October 15, 2015 and was sentenced to 3 years of probation on February 23, 2016.
Investigation of this case was conducted by the Naval Criminal Investigative Service (NCIS) and Defense Criminal Investigative Service (DCIS), with the assistance of the Federal Bureau of Investigation. Assistant United States Attorney Adam F. Hulbig prosecuted the case for the government.
Former Las Vegas Resident Pleads Not Guilty to Felony Tax CrimesRead the Press Release
LAS VEGAS, Nev. – A former Las Vegas resident pleaded not guilty today to felony tax evasion crimes that occurred over a 10-year-period, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
Craig Orrock, 68, currently of Sandy, Utah, appeared before U.S. Magistrate Judge Nancy Koppe in Las Vegas following his arrest in Salt Lake City on April 28, 2016. Orrock is charged in a criminal indictment with one count of attempting to evade the payment of tax, one count of attempting to evade the assessment of tax, and one count of attempts to interfere with the administration of IRS laws. If convicted, Orrock faces up to five years in prison on the first two counts and up to three years in prison on the third count, as well as fines of up to $250,000 on all counts.
The indictment alleges that beginning on about April 15, 2001, and continuing to at least April 23, 2010, in Nevada, Orrock willfully attempted to evade and defeat the payment of a large part of the income tax due and owing by him to the United States for the calendar years 2000 through 2006. Orrock allegedly did so by filing false and fraudulent bankruptcy petitions, false and fraudulent amended tax returns, and a false and fraudulent offer in compromise with the IRS, and by placing funds and property in the names of nominees and concealing from the IRS the nature and extent of his assets.
The indictment also alleges that Orrock willfully attempted to evade and defeat the assessment of a large part of the income tax due and owing by him to the United States for the calendar year 2007, by concealing from the IRS both ownership of property he held through a nominee known as Arville Properties, LLC and the proceeds from the sale of such property.
The case is being investigated by the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Patrick Burns.
An indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Former Lafayette postal employee pleads guilty to stealing gift cardsRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Lafayette woman pleaded guilty Thursday to stealing gift cards from envelopes while working as a postal employee.
Tonia R. Moore-Parker, 36, of Lafayette, pleaded guilty before U.S. Magistrate Judge Patrick Hanna to one count of theft of mail matter by a postal service employee. The plea will become final when accepted by U.S. District Judge Donald E. Walter. According to the guilty plea, Moore-Parker worked as a U.S. Postal Service employee from October 8 to October 31, 2015 and was entrusted with mail matter. During that time, she opened five envelopes and stole gift cards worth $150.
Moore-Parker faces five years in prison, three years supervised release, a $250,000 fine and restitution. A sentencing date was not set.
The U.S. Postal Service Office of Inspector General investigated the case. Assistant U.S. Attorney Dominic Rossetti is prosecuting the case.
Former IT Administrator Faces Federal Charges of Hacking into Computers of Prior Employer, an Irvine-based CompanyRead the Press Release
SANTA ANA, California – A former Garden Grove resident pleaded not guilty this afternoon to federal charges of hacking into the computer system of Blue Stone Strategy Group – an Irvine-based company and the man’s former employer – and deleting files.
Nikishna Polequaptewa, 34, who currently resides in Polacca, Arizona, was arrested this morning after surrendering to federal authorities. At his arraignment this afternoon, he entered a not guilty plea, was ordered released on a $25,000 bond and was ordered to stand trial on June 28.
Polequaptewa was indicted by a federal grand jury in March on one count of unauthorized impairment of a protected computer.
“IT administrators often hold the ‘keys to the kingdom’ for companies,” said United States Attorney Eileen M. Decker. “Disgruntled IT administrators can therefore pose a grave threat to businesses, which must take measures to protect themselves when letting such an employee go.”
According to the indictment, Blue Stone provided consulting services to Native American tribal governments throughout the United States. Polequaptewa was responsible for information technology at Blue Stone until November 2014, when he was relieved of his duties, which led to his resignation. Immediately following his resignation, Polequaptewa repeatedly accessed the Blue Stone internal server, a desktop computer, and remote accounts held by Blue Stone, and allegedly deleted various files belonging to the company.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The computer hacking charge in the indictment carries a statutory maximum penalty of 20 years in federal prison.
The investigation into Polequaptewa was conducted by the Federal Bureau of Investigation.
Former Bank Manager Sentenced to Prison Term for EmbezzlementRead the Press Release
PHILADELPHIA - Fernando Sanchez, 42, of Lancaster, Pennsylvania, was sentenced on April 29, 2016 to 15 months of in prison for embezzling approximately $99,106 from a bank in Lancaster where he was employed as a manager. In addition to the prison term, U.S. District Court Judge Edward G. Smith ordered 24 months of supervised release and a $300 special assessment.
Sanchez perpetrated the thefts by making a series of electronic wire transfers to another financial institution where he maintained an account without the knowledge or approval of the account holder. Sanchez used a portion of the money that he had embezzled from his employer’s bank client, to pay personal expenses, such as credit card bills, and to give money to his relatives. After the wire fraud was discovered and Sanchez was confronted with evidence of his crimes, Sanchez repaid the money that he had stolen and admitted his guilt.
The case was investigated by Federal Bureau of Investigation and was prosecuted by Assistant United States Attorneys Laurie Magid and Floyd J. Miller.
Federal Jury Convicts Leader of Violent Robbery Crew That Targeted Cell Phone Stores in Chicago SuburbsRead the Press Release
CHICAGO — A Park Forest man has been convicted in federal court of leading a crew of armed robbers that targeted cellular telephone stores in the Chicago suburbs.
ERIC CURTIS recruited several individuals to join the crew and armed them with firearms to carry out the robberies. The crew stole hundreds of cell phones while terrorizing store employees and customers at gunpoint. After the robberies, Curtis helped sell the phones and divided the profits among the thieves.
The robberies occurred in 2013 in cell phone stores in the Chicago suburbs of Addison, Norridge, Deerfield and Woodridge.
After a nearly two-week trial in federal court in Chicago, the jury yesterday convicted Curtis, 31, on one count of conspiracy to commit robbery, three counts of robbery, one count of being a felon in possession of a firearm, and three counts of using a firearm in a crime of violence. The conviction is punishable by a mandatory minimum sentence of 57 years in a prison, and a maximum sentence of life in prison.
U.S. District Judge Charles P. Kocoras scheduled a sentencing hearing for Aug. 4, 2016, at 9:45 a.m.
Evidence at trial revealed that Curtis’ crew conducted takeover-style robberies. Crew members would enter a store, brandish firearms and order employees and customers to the back of the store. The robbers would take as many cell phones as they could stuff into their duffel bags.
Seven other members of the crew previously pleaded guilty and are awaiting sentencing. The prior convictions include another top leader, ERIC ROGERS of Hazel Crest. Rogers admitted in a plea agreement that the crew also robbed cell phone stores in Joliet and downstate East Peoria, as well as a store in La Porte, Ind.
Curtis’ conviction was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent in Charge of the Chicago Office of the Federal Bureau of Investigation. The police departments from Woodridge, Deerfield, Joliet, Norridge and East Peoria provided substantial assistance in the investigation.
The government is represented by Assistant United States Attorneys Christopher V. Parente and Allison A. Ray.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.— The results of the May 2016 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Jose Samuel Garcia-Discua. Reentry of Removed Alien. Garcia-Discua, 40, is charged with having returned to the United States unlawfully after being deported in May 2011 from Houston, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Jeffrey Patterson Grass. Bank Theft and Possession of and Uttering a Forged Security. Grass, 40, of Locust Grove, is charged with stealing approximately $50,000 from Arvest Bank in August 2015. In addition, he is charged with two counts of possession of and uttering forged checks at People’s Bank. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Federal Bureau of Investigation is handling the investigation.
Isidro Herrera-Elvira. Reentry of Removed Alien. Herrera-Elvira, 49, is charged with having returned to the United States unlawfully after being deported in February 1989 from San Ysidro, California. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Henry Bruce Horn. Felon in Possession of a Firearm. Horn, 37, of Tulsa, is charged with possession of a 9mm caliber pistol after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Bixby Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigating agencies.
Terry Allen Kapple. Theft of Mail. Kapple, 59, of Tulsa, is charged with stealing mail including a greeting card and money contained in letters. If convicted, the statutory maximum penalty is five years in prison and a $250,000 fine or twice the pecuniary gain caused by the defendant’s acts. The U.S. Postal Service, Office of Inspector General is the investigating agency.
Joel Adam Thomas. Felon in Possession of a Firearm. Thomas, 33, of Tulsa, is charged with possession of a .40 S&W caliber pistol after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
Dustin Ernest Thompson. Felon in Possession of a Firearm and Ammunition. Thompson, 35, of Tulsa, is charged with possession of a .38 caliber Derringer pistol and ammunition after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
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Eugene Con Man Sentenced in $1.4 Million Fraud SchemeRead the Press Release
PORTLAND, Ore. – Yesterday, U.S. District Court Judge Anna J. Brown sentenced Jack Holden, 76, of Eugene, Oregon, to 87 months in prison, restitution of $1,410,760, and a special assessment of $1,500 for his role in a fraudulent biodiesel scheme that spanned three continents. Holden was convicted of conspiracy to commit mail and wire fraud, conspiracy to commit money laundering, mail and wire fraud, and money laundering, after a three-week federal trial in October 2015. His codefendant, Lloyd Benton Sharp, aka Kevin Thomas, 81, pled guilty to conspiracy to commit mail and wire fraud in November 19, 2014, and was sentenced to 60 months in prison on April 17, 2015.
Between July 2007 and September 2013, Holden and coconspirator Sharp conspired to defraud 12 investors in a project to produce biodiesel fuel in the West African nation of Ghana. When the investment project failed, Holden and Sharp continued to defraud the same investors by soliciting additional funds for a non-existent project to transport biodiesel fuel from Argentina to Chile, and to build biodiesel refineries in Chile. Holden and Sharp targeted a Christian men’s group in West Linn, Oregon as part of the fraud scheme.
Holden and Sharp falsely told investors that $350,000 was needed to set up a biodiesel plant in Ghana, purchase feedstock for the plant, and bring in an engineer to oversee the operation. They falsely promised that the Ghana refinery would be up and running within two months of receiving the investment funds. Holden and Sharp falsely told investors that if they each made a $50,000 investment, they would each receive a return of $7,000 per month for an indefinite period of time as soon as the biodiesel refinery was operational. They also told victims that their investments would help fund humanitarian projects, like building roads and schools in the poor nation of Ghana. Investors were promised that they could get 100% of their money back at any time. The victims in this case sent investment funds to Holden and Sharp via mail or interstate wire transfers. Rather than using the investment funds to produce and sell biodiesel fuel in Ghana as promised, Holden and Sharp spent the money on their personal expenses.
When investors inquired of Holden and Sharp why the Ghana refinery was not operating, the two claimed they had a more promising investment opportunity in Chile, and that a successful investment in Chile would provide sufficient funds to get the Ghana refinery operational. Holden and Sharp solicited and received additional funds from investors for the Chile projects by falsely promising that for $100,000 they would double their investment and receive a return of funds within 120 days. After the Chile investments were made, Holden and Sharp stole the money, and again used it for their personal benefit.
Between the Ghana and Chile projects, 12 investors lost approximately $1.47 million.
U.S. Attorney Billy J. Williams said, “Individuals who use deception to bilk investors out of their hard-earned money in fraud schemes such as this will be prosecuted to the full extent of the law. We are grateful to the U.S. Postal Inspection Service and the Oregon Division of Financial Regulation for their vigilance in prosecuting this case and in protecting the public from fraud.”
Tony Galetti, Inspector in Charge, Seattle Division, U.S. Postal Inspection Service stated, “The U.S. Postal Inspection Service makes consumer fraud investigations one of our top priorities. The cooperation between the Oregon Division of Financial Regulation, the U.S. Attorney’s Office, and the U.S. Postal Inspection Service in the prosecution of Holden and Sharp resulted in a great victory for Oregon consumers. The fraud perpetrated by the defendants in this case is the worst kind of fraud, in that they exploited the trust of innocent victims, in some cases stealing life savings. The U.S. Postal Inspection Service continues, in collaboration with our regulatory and law enforcement partners, to tirelessly identify and root out consumer fraud involving the U.S. Mail which affects the American public.”
The case was investigated by the U.S. Postal Inspection Service and the Oregon Division of Financial Regulation (formerly DFCS). Assistant U.S. Attorneys Claire M. Fay and Donna B. Maddux prosecuted the case.
El Salvadoran Man Sentenced for Illegal Reentry After DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced today that Jose Ever Portillo-Batres, 27, of El Salvador, was sentenced to time already served since his arrest on February 15, 2016, following his guilty plea to illegally reentering the United States after having been previously deported. Portillo-Batres’ plea and sentencing were held the same day under a program used by the United States Attorney’s Office to quickly sentence and deport defendants found in New Hampshire who were previously deported.
On February 15, 2016, an ICE-ERO Deportation Officer received a duty call from a New Hampshire State Police Trooper who stated that that he had stopped a vehicle for speeding on I-93. The vehicle was occupied by five individuals, three of whom refused to provide identification or answer the Trooper’s questions. Two ICE-ERO officers provided assistance and were able to identify the defendant through fingerprint comparisons as having been previously deported on two occasions in March and May 2011. Portillo-Batres was taken into custody by the ICE-ERO officers and, in a search incident to arrest, was found to be in possession of a valid El Salvadoran identification card bearing his true name, date of birth and photograph.
Portillo-Batres will be deported to El Salvador.
The case was investigated by the New Hampshire State Police and the U.S. Department of Homeland Security, Bureau of Immigration and Customs Enforcement. It was prosecuted by Assistant U.S. Attorney Alfred Rubega.
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Driver Sentenced to 15 Years in Prison for Second Degree Murder of Passenger in Great Smoky Mountains National Park Car CrashRead the Press Release
KNOXVILLE, Tenn. – On May 6, 2016, Corey Bruce Patrick, 35, of Camden, Tenn., was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 15 years in federal prison for second degree murder for a car wreck that resulted in the death of Heather Nicole Hendrix.
Upon his release from prison, Patrick will be supervised by the U.S. Probation Office for five years. He was also ordered to pay restitution to the victim’s family in the amount of $15,989.77 for funeral and burial related expenses and the value of Hendrix’s car.
In April 2015, Patrick pleaded guilty to the offense described above. According to documents on file with U.S. District Court, in October 2014, after drinking alcohol and using drugs, Patrick crashed the victim’s car while driving at a high rate of speed within the Great Smoky Mountains National Park. One minute before the crash, Hendrix sent a text message that Patrick was “driving fast and crazy.” Patrick’s blood alcohol level was .193, more than twice the legal limit in Tennessee. At the time of the crash, Hendrix, the only passenger, suffered multiple blunt force injuries causing her to die at age 37. Hendrix was survived in death by her mother, three children, and a grandson, who was born two weeks after her death.
The case was investigated by the National Park Service. Assistant U.S. Attorney Brooklyn Sawyers represented the United States.
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Derby Man Pleads Guilty to Federal Heroin Distribution ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that BRADLEY COMMERFORD, 20, of Derby, waived his right to indictment and pleaded guilty today in New Haven federal court to one count of distribution of heroin to an individual who is under 21 years of age.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, the DEA’s New Haven Tactical Diversion Squad, Derby Police Department and Shelton Police Department have been investigating two non-fatal heroin overdoses that occurred in Shelton on February 16, 2016, and one fatal overdose that occurred in Derby on February 17, 2016. The Derby overdose resulted in the death of a 23-year-old male. The Shelton overdoses involved one individual who was 18 and another who was 22.
The investigation, which includes victim and witness interviews, as well as analysis of numerous text messages of the decedent’s phone, identified COMMERFORD as the heroin source of supply in all three overdose cases. The investigation also revealed that COMMERFORD sold heroin to a 16-year-old individual who did not overdose.
The charge of distribution of heroin to an individual who is under 21 years of age carries a mandatory minimum term of imprisonment of one year, a maximum term of imprisonment of 40 years, a term of supervised release of no less than six years, and a fine of up to $2 million.
COMMERFORD is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson in Hartford on July 28, 2016. He has been detained since his arrest on related state charges on February 18, 2016.
The DEA’s New Haven Tactical Diversion Squad includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon and Wilton Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
Defense Contractor Agrees to Pay $2.1 Million to Resolve Allegations of False Claims and OverchargesRead the Press Release
PHILADELPHIA – The United States has reached a settlement agreement with Hesco Bastion Limited (Hesco), based in Leeds, England, in which the company has agreed to pay $2.1 million to resolve allegations of false claims and overcharges, announced United States Attorney Zane David Memeger. The allegations stem from the international transportation of blast walls that Hesco manufactured and sold to the U.S. government. Hesco is a privately held company.
Hesco contracted with the Department of Defense to provide blast walls, also known as Concertainer Units, and to ship them from England to a U.S. military base in Germany. The government and Hesco agreed that the price for the transportation of the Concertainer Units would not exceed £650 per truckload of Concertainer Units. From 2002 until 2011, Hesco transported the Concertainer Units using a third-party freight forwarder. During that period, Hesco charged the government a fixed price of £650 per truckload, while paying its transportation subcontractor less than £650 per truckload, which the government contends violated the parties’ contracts.
In 2009, the government requested that Hesco provide documentation concerning the amount Hesco had been paying its transportation subcontractor for the transportation of the Concertainer Units. In response, the government alleged, Hesco knowingly provided the government false information concerning the amount that Hesco had been paying to its transportation subcontractor. The government further alleged that Hesco also knowingly misled the government by submitting 47 false invoices that were made to appear to be authentic invoices from the transportation subcontractor, and that Hesco engaged in a kickback scheme by which it received undisclosed off-invoice credits from its transportation subcontractor. The government contends that the submission of false invoices and the kickback scheme violated the False Claims Act.
The investigation was conducted by the Defense Criminal Investigative Service and the Defense Contract Audit Agency. The case was prosecuted by Assistant United States Attorneys Joel M. Sweet and Colin M. Cherico.
The claims resolved by this settlement are allegations only; there has been no determination of liability.
Dallas County Man Sentenced to 90 Years in Federal Prison for Producing Child PornographyRead the Press Release
DALLAS — A Hutchins, Texas, man, Servando Vega Cervantes, 25, was sentenced yesterday afternoon by U.S. District Judge Jane J. Boyle to 90 years in federal prison, following his guilty plea in February 2015 to an indictment charging three counts of production of child pornography involving four victims, announced U.S. Attorney John Parker of the Northern District of Texas.
According to documents filed in the case, the Hutchins Police Department contacted the FBI in May 2014 regarding questionable online communication between an 11-year-old victim, “John Doe #1,” and the Facebook user profile of “Laura Ortiz.” The victim’s mother believed the user of the Ortiz profile was actually an adult male and not a 13-year-old female as described in chat conversations between John Doe #1 and Ortiz. The investigation revealed that the user profile “Laura Ortiz” belonged to Cervantes. The investigation also revealed that John Doe #1 knew Cervantes as “Jordan,” an alias Cervantes used.
According to the factual resume filed in the case and testimony presented at today’s sentencing hearing, Cervantes enticed 11-year-old John Doe #1 to engage in sexually explicit conduct, and Cervantes took photos of that conduct. Cervantes enticed another minor, under the age of 14, John Doe #2, to engage in sexually explicit conduct and Cervantes also took photos of that conduct. Cervantes also asked John Doe #2 to send sexually explicit photos to “Laura Ortiz.” John Doe #3, a 15-year-old boy, sent sexually explicit photos to Cervantes, upon Cervantes’ repeated requests. Cervantes also had sexually explicit photos of another prepubescent boy, John Doe #4, whom he met on Facebook, on a thumb drive.
Cervantes had sexual contact with two of the four victim John Does.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
The FBI’s Dallas Child Exploitation Task Force and the Hutchins Police Department investigated the case. Assistant U.S. Attorney Camille Sparks was in charge of the prosecution.
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