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Tuesday 8 March 2016
Rio Arriba County Man Sentenced to 71 Months for Federal Conspiracy and Mail Fraud ConvictionRead the Press Release
ALBUQUERQUE – Gerald Archuleta, 45, of Ojo Caliente, N.M., was sentenced this afternoon in federal court in Albuquerque, N.M., to 71 months in prison followed by three years of supervised release for his conviction on conspiracy and mail fraud charges arising out of a scheme to defraud the federal and state unemployment insurance system. Archuleta also was ordered, jointly with his co-defendant, to pay $719,858.73 in restitution.
Archuleta’s co-defendant, Jasonn Gonzales, 43, an accountant from Velarde, N.M., previously was sentenced to 111 months for a conviction arising out of the same scheme in Dec. 2014.
Archuleta and Gonzales were charged in a six-count indictment filed in March 2014. Count 1 charged the two men with conspiracy to commit mail fraud in furtherance of a scheme to defraud the federal and state Unemployment Insurance System in New Mexico, Texas and Colorado of money by false and fraudulent pretenses. Counts 2 through 5 of the indictment charged the men with mail fraud, and Count 6 charges Gonzales alone with aggravated identity theft.
According to court filings, the federal and state Unemployment Insurance System seeks to lessen the effects of unemployment through payments made to claimants (laid-off workers) on a weekly basis while the claimants seek employment. The unemployment insurance program is administered on behalf of the federal government by state workforce agencies in each state. In entering their guilty pleas, Gonzales and Archuleta admitted that between 2009 and 2012, they schemed to defraud the New Mexico Department of Workforce Solutions, the Texas Workforce Commission and the Colorado Department of Labor and Employment of more than $1,356,000 by making false and fraudulent claims for unemployment benefits in the names of real people.
Gonzales and Archuleta perpetuated their unlawful scheme by fraudulently registering numerous non-existent companies with the three state workforce agencies and filing false quarterly reports for the fictitious companies which identified claimed employees. The two men provided the names, dates of birth and social security numbers of the claimed employees to the state agencies without the knowledge or authorization of the claimed employees, who were real people. Gonzales and Archuleta then made false and fraudulent claims for unemployment benefit claims on behalf of the claimed employees of the fictitious companies. The two men opened post office boxes in New Mexico, Texas and Colorado, which they provided to the three state workforce agencies as mailing addresses for the claimed employees. The state agencies mailed debit cards to the claimed employees at the post office boxes and the defendants used the debit cards to withdraw the fraudulently obtained benefits. During the life of the conspiracy, Gonzales and Archuleta submitted fraudulent claims for unemployment benefits in the aggregate amount of $1,356,461, and defrauded the three state workforce agencies of approximately $801,848, in total.
On Oct. 24, 2014, Archuleta entered a guilty plea to Counts 1 through 5 of the indictment; his guilty plea was amended on Feb. 26, 2016. Gonzales entered a guilty plea on Aug. 18, 2014, to all six counts of the indictment without the benefit of a plea agreement. In entering his guilty plea, Gonzales also admitted to the forfeiture provisions of the indictment and to the entry of an $801,848.00 money judgment against him.
This case was investigated by the Department of Labor Office of Inspector General, Office of Labor Racketeering and Frauds Investigations, and the U.S. Postal Inspection Service, and was prosecuted by Assistant U.S. Attorney Tara C. Neda.
Prince George’s County Suspect Faces Federal Gun ChargeRead the Press Release
Greenbelt, Maryland – Quinton Darnell McLean, age 21, of Washington, D.C., has been charged by federal criminal complaint with being a felon in possession of a firearm. The criminal complaint was filed on February 29, 2016, and McLean has an initial appearance in U.S. District Court in Greenbelt today at 2:40 p.m. before U.S. Magistrate Judge William Connelly.
The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Hank Stawinski of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
“Criminals who are not deterred from carrying guns by the threat of prison time can be deterred by the reality of years spent in a federal prison far from home,” said U.S. Attorney Rod J. Rosenstein. “Police and prosecutors are working to identify armed criminals who deserve to be charged in federal court.”
According to the affidavit filed in support of his criminal complaint, on February 12, 2016, McLean was traveling with two other men in a green Saturn on the Suitland Parkway. Officers with the Prince George’s Police Department Washington Area Vehicle Enforcement Team (WAVE) conducted a query of the temporary registration on the Saturn, which revealed that the tag was issued for a 1987 Mercedes Benz. Officers followed the vehicle, which pulled into a carwash on Branch Avenue in Temple Hills, Maryland.
The driver of the Saturn pulled the vehicle into the carwash bay and began washing the car while McLean and the other occupant stood outside the entrance to the carwash bay. One of the officers, whose unmarked car was next in line for the wash bay behind the green Saturn, saw McLean adjusting his waistband and clutching the right side of his waistband as he stood outside the carwash bay. The officer knew that McLean’s behavior was indicative of an armed person, and believed that McLean had a firearm in his waistband. The officer frisked McLean for weapons and recovered a loaded .45 caliber semi-automatic pistol that was tucked in the right front side of McLean’s waistband area. McLean was arrested. While in custody, McLean made several calls from jail. During these conversations, which are recorded by the detention center, McLean made several statements, including, “Maryland time is cheap as s**t.” McLean has a previous felony conviction and is prohibited from possessing a firearm or ammunition.
McLean faces a sentence of 10 years in prison for being a felon in possession of a gun. There is no probation or parole in the federal criminal justice system.
As part of the coordinated state effort to reduce violent crime, the Prince George’s County Police Department, ATF, FBI, DEA, HSI, U.S. Marshals Service, the Prince George’s County State’s Attorney’s Office, and the United States Attorney’s Office, review cases of defendants arrested for firearms violations, drug offenses and other violent crimes, and evaluate whether the case should be considered for federal prosecution. Prosecutors evaluate each defendant’s criminal record, the circumstances of the arrest and other relevant information.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the ATF, Prince George’s County Police Department and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Matthew L. Paeffgen, who is prosecuting the case.
Plain Green Officials Sent to PrisonRead the Press Release
GREAT FALLS – Former Chief Executive Officers for Plain Green, the Chippewa Cree Tribe’s internet lending business, were both sentenced today to several years in prison by U.S. District Judge Brian Morris in Great Falls. Neal Paul Rosette, 54, of Box Elder, who served as the lending corporation’s CEO from its origination until January of 2012, was sentenced to 38 months in prison and restitution of $1,488,472. His colleague, Billi Anne Morsette, was sentenced to 41 months in prison, and $1,421,045 in restitution.
In December of last year, Rosette and Morsette pleaded guilty to accepting bribes from Encores Services, a Las Vegas business, in exchange for facilitating the award and payment on fraudulent tribal contracts. In another indictment the two pleaded guilty to helping Chippewa Cree Tribal Vice-Chairman John Chance Houle siphon off over $55,000 in tribal monies, laundering them through First American Capital Resources, the predecessor company to Plain Green, and then diverting the money to the Chippewa Cree Rodeo Association accounts which Houle had used as a slush fund. Included in their pleas was a plea by Rosette to income tax evasion and by Morsette to willful failure to file tax returns.
In court records filed at the time of the plea, the Unites States Attorney’s office advised the Court that in May of 2010, the Chippewa Cree Tribe created First American Capital Resources, LLC (FACR) to be a partner with outside interests to provide a pay-day, on-line lending platform which, using tribal sovereignty, could be exempt from state laws and regulations regarding usury and predatory lending practices. The FACR CEO was Neal Rosette, the FACR COO was Billi Anne Morsette, and the Chairman of the oversight board created by the tribal council to administer the internet lending program was tribal Vice-Chairman, John Chance Houle.
THE RODEO ASSOCIATION EMBEZZLEMENT: On September 15, 2010, Houle authorized and signed a $27,949.33 check to FACR from the Chippewa Cree Tribe Tribal Grants and Contracts account. Once the Grants and Contracts money was in the FACR account, a check for $6,000 was made payable to Rosette (signed by Morsette) and another check for $6,000 was made payable to Morsette (signed by Rosette). Also on that same date, a check for $15,000 was written to the Chippewa Cree Tribe Rodeo Association and signed by Rosette and Morsette. Chance Houle was the President of the Chippewa Cree Rodeo Association with exclusive control over its bank account.
The second payment from the Grants and Contracts account to FACR was made on October 5, 2010, for $27,842.94. On that same date, a FACR check for $4,000 was made payable to Rosette (signed by Morsette) and another check for $4,000 was made payable to Morsette (signed by Rosette). Also on that same date, a check for $15,000 was written to the Indian National Finals Rodeo (INFR), and signed by Rosette and Morsette.
THE IDEAL CONSULTING KICK-BACK SCHEME: On October 22, 2010, FACR, the Tribe, and Encore Services Corporation, of Henderson, Nevada, entered into a Management Agreement making Encore the tribe’s partner in the on-line lending business. FACR and Encore did not make any online loans prior to April 2011. The salaries of Rosette and Morsette were subsidized by Encore and its affiliates, along with James Eastlick, Jr., Clinical Psychologist at the Tribe, through bridge loans. One specific loan from Eastlick to cover the salaries of Rosette and Morsette was in December 2010 for $60,000, and the note on the loan was between Eastlick and Encore.
In March of 2011, after Rosette had entered into negotiations with Think Finance of Fort Worth, Texas, the Tribe created another online lending company, Plain Green. Plain Green was created for online installment loan lending and, as with FACR, Plain Green would utilize the Tribe’s sovereignty to shield the business from state usury and predatory lending laws. Rosette, Morsette, and Houle all remained in the same positions for Plain Green as they had for FACR. After Rosette’s departure in January 2012, Morsette took over both the CEO and the COO roles for FACR and Plain Green.
After a deal was struck between the Tribe, Plain Green, and Think Finance, Encore was no longer a relevant participant. On May 4, 2011, and at the request of Encore, a revised management agreement between FACR and Encore was signed. Under this agreement, Section 2.9 now stated the “Enterprise” shall include FACR “and any other entity formed by the Tribe to undertake business of the type conducted by FACR.” This is after Plain Green and Think Finance have already started making loans in April. The amended agreement was designed to provide “exclusive” rights to Encore with regard to all of the Tribe’s online lending ventures, including Plain Green. Rosette forged Houle’s signature on the revised management agreement.
On July 11, 2015, without any written agreement as to fees, Rosette and/or Morsette wired $38,242 of the Tribe’s share of the Plain Green distribution, to Encore. In late July 2011, a Fee Agreement was executed providing Encore Services, LLC, a newly formed company owned by the same individuals of Encore Service Corporation, 15% of all profits from the Plain Green – Think Finance venture. This agreement was backdated to June 1, 2011, one day before Plain Green received its first payment of $199,141.
On August 3, 2011, an entity called Ideal Consulting, LLC, invoiced Encore for “5% consulting fees” for the months of May, June and July 2011. The total billed was $50,652.40. That same day, Plain Green wired $93,800.42 to Encore Services. Ideal Consulting had registered with the Montana Secretary of State’s Office on August 2, 2011. Eastlick opened a bank account using the articles of incorporation for Ideal Consulting at Wells Fargo Bank in Havre, and on August 5, 2011, an Encore affiliate wired $50,652.40 to the new account.
At its essence, the scheme that began with the second agreement was designed to put Encore back into the tribal stream of revenue from the on-line lending operation once Think had come in to supplant Encore. In exchange for giving Encore 10% of the tribe’s revenues, Encore agreed to take 15% and kick 5% back to Rosette, Morsette, and Eastlick as a reward for keeping money flowing to Encore, even though it had not been able to establish a viable lending operation.
The relationship with Encore, and the resulting payments to Ideal, continued for the next two years, until July 31, 2013. In that time, Plain Green paid Encore $3,523,471, and Encore paid Ideal $1,208,395. The profits from the scheme were split evenly between Rosette, Morsette and Eastlick—each taking over $400,000.
During this period Morsette received over $800,000 in income from her salary and the payments from Ideal. She never filed a tax return. As part of her plea agreement she agreed to pay $165,253 in tax liability to the IRS. Rosette filed for 2009 but did not file any returns after that. Based upon his unreported income, Rosette agreed to pay $232,680 in tax liability to the IRS.
Rosette was allowed to surrender himself to the institution once the Bureau of Prisons designates where he will serve his sentence. Morsette was immediately remanded into the custody of the U.S. Marshal.
The case was brought by the federal agents of the Guardians Project and was investigated by the agents of the Offices of Inspector General of the Departments of Interior and Health and Human Services, as well as by the Internal Revenue Service Criminal Investigation Division.
Pennsylvania man sentenced for drug trafficking, unlawful possession of firearmsRead the Press Release
WHEELING, WEST VIRGINIA – Richard Cervi, Jr., 31, of Pittsburgh, Pennsylvania, was sentenced to 37 months in prison for methamphetamine trafficking and unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II, announced.
Cervi, who has a previous felony conviction in state court in Pennsylvania, was discovered in Ohio County, West Virginia in February 2015 in unlawful possession of methamphetamine and a .45 caliber revolver. He was previously convicted of the felony offense of “Possession with Intent to Distribute Methamphetamine” in the Court of Common Pleas of Allegheny County, Pennsylvania.
Cervi pled guilty in November 2015 to one count of “Felon in Possession of a Firearm,” and one count of “Possession with Intent to Distribute Methamphetamine.” He was sentenced to 37 months in prison on each count. The sentences will run concurrently for a total of 37 months in prison.
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the West Virginia State Police, and the United States Secret Service investigated.
U.S. District Judge John Preston Bailey presided.
North Hollywood Man Sentenced to Four Years in Federal Prison in Tax Scheme that Fraudulently Sought over $1.2 Million in RefundsRead the Press Release
LOS ANGELES – A North Hollywood man has been sentenced to 48 months in federal prison for his role in a tax fraud conspiracy scheme that fraudulently claimed more than $1.2 million in fraudulent tax refunds.
Antonio Jerome Cook, 37, received the prison sentence yesterday from United States District Judge George H. King. In addition to the prison term, Judge King ordered Cook to pay $537,309 in restitution to the Internal Revenue Service.
Cook pleaded guilty in October 2015 to one count of conspiracy to commit tax fraud.
According to documents filed with the court, starting in late 2008 or early 2009, Cook, along with two co-conspirators, developed a tax fraud scheme in which the defendants prepared and filed fraudulent tax returns for individuals. The fraudulent returns were filed on behalf of individuals who agreed to have the defendants prepare their tax returns (apparently without knowledge of the fraud scheme), as well as individuals whose identities were stolen.
The fraudulent tax returns indicated that the taxpayers were employed by Picaso Fashions, a business established by Cook in name only. In fact, Picaso Fashions did not have any employees and the taxpayers were never actually employed by Picaso. The tax returns indicated that Picaso Fashions had excessively withheld income tax for each taxpayer, and each fraudulently filed tax return sought a tax refund the taxpayers were not entitled to receive.
The scheme related to Picaso Fashions resulted in the filing of 69 false individual federal tax returns during 2009 that claimed tax refunds totaling $621,589.
In addition to Picaso Fashions, Cook and a co-conspirator independently established other companies to serve as fraudulent employers in tax schemes, according to court documents. Specifically, Cook established at least five other companies to perpetrate similar tax fraud schemes. For example, Cook filed an additional 72 tax returns listing a fictitious employer, Arkitek Entertainment Group, which fraudulently claimed $486,659 in refunds.
In total, Cook filed 182 fraudulent returns between 2009 and 2010 seeking tax refunds totaling $1,225,901. The IRS paid full or partial tax refunds on 81 of these returns and suffered actual losses of $537,309.
“As we enter the 2016 tax season, it is important that we continue to work with IRS criminal investigators to ensure the honesty and integrity of the tax system,” said United States Attorney Eileen M. Decker. “Identifying fraudulent claims against the government and prosecuting those responsible for illegally filing false tax returns protects all taxpayers and helps ensure the fairness of the entire system.”
Co-conspirator Rebecca Magruder, 37, of Dallas, Texas was sentenced in January to 18 months in prison and ordered to pay restitution of $119,671 for her role in the scheme.
The investigation into Cook and Magruder was conducted by IRS Criminal Investigation.
North Carolina Man Pleads Guilty to Methamphetamine ChargeRead the Press Release
ROANOKE, VIRGINIA – A North Carolina man pled guilty today in the United States District Court for the Western District of Virginia in Roanoke to federal drug conspiracy charges, United States Attorney John P. Fishwick Jr. announced today.
Bradley Scott Kennedy, 37, of Jonesville, North Carolina, pled guilty today in District Court to one count of conspiring to distribute methamphetamine.
“In conjunction with a robust coalition of local, state and federal law enforcement agencies we have been able to make significant progress in the fight against methamphetamine distribution,” United States Attorney John P. Fishwick Jr. said today. “However, there is still work to be done and we will continue to be vigilant in investigating and prosecuting those who manufacture and distribute this dangerous this substance.”
The investigation of the case was conducted the Virginia State Police, the Wythe County Sheriff’s Office, the Grayson County Sheriff’s Office, the Galax Police Department, the Carroll County Sherriff’s Office, the Pulaski County Sheriff’s Office and the Drug Enforcement Administration. Assistant United States Attorney Ashley B. Neese prosecuted the case for the United States.
New York Man Sentenced to 16 Years in Prison for Attempting to Acquire RicinRead the Press Release
Cheng Le, 22, of Manhattan, New York, was sentenced today to 16 years in prison for attempting to acquire ricin, postal fraud and identity theft in relation to a terrorism offense. Le was convicted on Aug. 27, 2015, following a four-day jury trial before U.S. District Judge Alison J. Nathan of the Southern District of New York, who imposed today’s sentence. Le’s trial conviction marked the first time in the Southern District of New York a defendant had been convicted at trial of attempting to possess a biological toxin for use as a weapon or of aggravated identity theft during and in relation to a terrorism offense.
The announcement was made by Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Preet Bharara of the Southern District of New York.
“Cheng Le attempted to acquire ricin for use as a lethal weapon, and used a stolen identity to do so,” said Assistant Attorney General Carlin. “Le sought a ‘risk-free’ way to murder an individual, but thanks to the efforts of law enforcement, his lethal plans were thwarted and the deadly toxin was kept out of his hands.”
“Through the Dark Web, Cheng Le attempted to acquire a lethal toxin,” said U.S. Attorney Bharara. “In Le’s own words, established at trial, he was looking for ‘simple and easy death pills’ and ways to commit ‘100% risk-free’ murder. Thanks to the FBI, the NYPD and the Postal Inspection Service, Le’s deadly plot was thwarted and he has been incapacitated by a lengthy term in federal prison.”
According to the allegations contained in documents previously filed in federal court and the evidence presented at trial:
Ricin is a highly potent and fatal toxin with no known antidote. The dark web is a colloquial name for a number of extensive, sophisticated and widely used online criminal marketplaces, which allow participants to buy and sell illegal items, including ricin.
In early December 2014, Le contacted a FBI online covert employee (OCE) on a particular dark web marketplace using an encrypted messaging service. The OCE had taken over the dark web identity from another individual who had a reputation for selling lethal poisons. After making contact with the OCE, Le inquired, “this might sound blunt but do you sell ricin?”
Following that initial contact, Le exchanged a series of messages with the OCE concerning his efforts to purchase ricin. During these messages, Le confirmed his understanding of the lethal nature of ricin, revealed his intent to resell the ricin to at least one secondary buyer, proposed that the OCE conceal the ricin in a single pill in an otherwise ordinary bottle of pills and indicated a desire to obtain more ricin in the future. Le’s messages to the OCE included the following:
• “If [the ricin’s] good quality, I’ve already had buyers lining up.”
• “Does ricin have antidote? Last I check there isn’t one, isn’t it?”
• “Injection can be difficult to pull off. Ricin doesn’t work immediately. You wouldn’t expect the target to not fight back after being jabbed.”
• “The client would like to know . . . if it is wise to use ricin on someone who is hospitalized. . . . Injection will leave needle holes on the body which could be found in regular forensic examination. But hospitalized people already have needles in them so it wouldn’t be suspicious. Thing is, would ricin make the death look like someone succumbed to the injuries after an accident and didn’t make it through? In that case then, a little anethestical [sic] gas in the target’s car, get him drowsy when driving, get into an accident, and then kill him in the hospital bed.”
• “I probably told you this before, about mixing one and only one toxic pill into a bottle of normal pills. They all look identical. And as the target takes the medicine every day, sooner or later he’d ingest that poisonous pill and die. Even if there is a murder investigation, they won’t find any more toxin. 100% Risk Free.”
• “If you can make them into simple and easy death pills, they’d become bestsellers.”
• “I’ll be trying out new methods in the future. After all, it is death itself we’re selling here, and the more risk-free, the more efficient we can make it, the better.”
• “Also, besides that one bottle of pills with one poisonous pill in there, can you send some extra loose powder/liquid ricin? I’d like to test something.”
Moreover, during these exchanges, Le revealed to the OCE that he had a specific victim in mind: “someone middle-aged. Weight around 200 lbs.”
On Dec. 18, 2014, Le directed the OCE to send a quantity of ricin addressed to the name of an individual whose stolen identity Le had assumed at a particular postal box in Manhattan. On Dec. 22, 2014, the FBI prepared a mock shipment of ricin that was consistent with Le’s request to the OCE. The sham shipment included a fake ricin tablet concealed in a pill bottle, and a quantity of loose fake ricin powder. The next day, the sham shipment was delivered to the postal box. Le, wearing latex gloves, retrieved the sham shipment, opened it and took the contents to his apartment.
When FBI agents entered Le’s apartment to arrest him and search the apartment pursuant to a search warrant, they saw the pill bottle open in his apartment. The agents also recovered from Le’s apartment an envelope containing castor seeds from which Ricin can be produced. The agents further observed that Le’s computer was open to the online account that he had used to communicate with the OCE and to Le’s personal email account.
Le was arrested in New York on Dec. 23, 2014, and was later convicted at trial of one count of attempting to possess a biological toxin for use as a weapon, one count of using a fictitious name in furtherance of unlawful business involving the mail and one count of aggravated identity theft during and in relation to a terrorism offense. In addition to the prison term, Le was sentenced to five years of supervised release.
Assistant Attorney General Carlin joined U.S. Attorney Bharara in praising the outstanding investigative efforts of the FBI’s New York Joint Terrorism Task Force and the U.S. Postal Inspection Service.
This prosecution is being handled by Assistant U.S. Attorneys Ilan Graff and Andrew D. Beaty of the Southern District of New York and Trial Attorney Joseph Kaster of the National Security Division’s Counterterrorism Section.
New York Man Sentenced in Manhattan Federal Court to 16 Years in Prison for Attempting to Acquire Deadly Toxin, RicinRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and John P. Carlin, Assistant Attorney General for National Security, announced that CHENG LE was sentenced today to 16 years in prison for attempting to acquire ricin, postal fraud, and identity theft in relation to a terrorism offense. LE was convicted on August 27, 2015, following a four-day jury trial before U.S. District Judge Alison J. Nathan, who imposed today’s sentence. LE’s conviction marked the first time in the District that a defendant had been convicted at trial of attempting to possess a biological toxin for use as a weapon or of aggravated identity theft during and in relation to a terrorism offense.
Manhattan U.S. Attorney Preet Bharara said: “Through the Dark Web, Cheng Le attempted to acquire a lethal toxin. In Le’s own words, established at trial, he was looking for ‘simple and easy death pills’ and ways to commit ‘100% risk-free’ murder. Thanks to the FBI, the NYPD, and the Postal Inspection Service, Le’s deadly plot was thwarted and he has been incapacitated by a lengthy term in federal prison.”
Assistant Attorney General John P. Carlin said: “Cheng Le attempted to acquire ricin for use as a lethal weapon, and used a stolen identity to do so. Le sought a ‘risk-free’ way to murder an individual, but thanks to the efforts of law enforcement, his lethal plans were thwarted and the deadly toxin was kept out of his hands.”
According to the allegations contained in documents previously filed in federal court and the evidence presented at trial:
Ricin is a highly potent and fatal toxin with no known antidote. The “Dark Web” is a colloquial name for a number of extensive, sophisticated, and widely used online criminal marketplaces, which allow participants to buy and sell illegal items, including ricin.In early December 2014, LE contacted a Federal Bureau of Investigation (“FBI”) online covert employee (the “OCE”) on a particular Dark Web marketplace using an encrypted messaging service. The OCE had taken over the Dark Web identity from another individual who had a reputation for selling lethal poisons. After making contact with the OCE, LE inquired, “this might sound blunt but do you sell ricin?”
Following that initial contact, LE exchanged a series of messages with the OCE concerning his efforts to purchase ricin. During these messages, LE confirmed his understanding of the lethal nature of ricin, revealed his intent to resell the ricin to at least one secondary buyer, proposed that the OCE conceal the ricin in a single pill in an otherwise ordinary bottle of pills, and indicated a desire to obtain more ricin in the future. LE’s messages to the OCE included the following:
-
“If [the ricin’s] good quality, I’ve already had buyers lining up.”
-
“Does ricin have antidote? Last I check there isn’t one, isn’t it?”
-
“Injection can be difficult to pull off. Ricin doesn’t work immediately. You wouldn’t expect the target to not fight back after being jabbed.”
-
“The client would like to know . . . if it is wise to use ricin on someone who is hospitalized. . . . Injection will leave needle holes on the body which could be found in regular forensic examination. But hospitalized people already have needles in them so it wouldn’t be suspicious. Thing is, would ricin make the death look like someone succumbed to the injuries after an accident and didn’t make it through? In that case then, a little anethestical [sic] gas in the target’s car, get him drowsy when driving, get into an accident, and then kill him in the hospital bed.”
-
“I probably told you this before, about mixing one and only one toxic pill into a bottle of normal pills. They all look identical. And as the target takes the medicine every day, sooner or later he’d ingest that poisonous pill and die. Even if there is a murder investigation, they won’t find any more toxin. 100% Risk Free.”
-
“If you can make them into simple and easy death pills, they’d become bestsellers.”
-
“I’ll be trying out new methods in the future. After all, it is death itself we’re selling here, and the more risk-free, the more efficient we can make it, the better.”
-
“Also, besides that one bottle of pills with one poisonous pill in there, can you send some extra loose powder/liquid ricin? I’d like to test something.”
Moreover, during these exchanges, LE further revealed to the OCE that he had a specific victim in mind: “someone middle-aged. Weight around 200 lbs.”
On December 18, 2014, LE directed the OCE to send a quantity of ricin addressed to the name of an individual whose stolen identity LE had assumed at a particular postal box in Manhattan (the “Postal Box”). On December 22, 2014, the FBI prepared a mock shipment of ricin (the “Sham Shipment”) that was consistent with LE’s request to the OCE. The Sham Shipment included a fake “ricin” tablet concealed in a pill bottle (the “Pill Bottle”), and a quantity of loose fake “ricin” powder. The next day, the Sham Shipment was delivered to the Postal Box. LE, wearing latex gloves, retrieved the Sham Shipment, opened it, and took the contents to his apartment.
When FBI agents entered LE’s apartment to arrest LE and to search the apartment, pursuant to a search warrant, they saw the Pill Bottle open in his apartment. The agents also recovered from LE’s apartment an envelope containing castor seeds, from which ricin can be produced. The agents further observed that LE’s computer was open to the online account that he had used to communicate with the OCE and to LE’s personal email account.
LE was arrested in New York, New York, on December 23, 2014.
* * *
LE, 22, of Manhattan, New York, was convicted after trial of one count of attempting to possess a biological toxin for use as a weapon, one count of using a fictitious name in furtherance of unlawful business involving the mail, and one count of aggravated identity theft during and in relation to a terrorism offense. In addition to the prison term, LE was sentenced to five years of supervised release.
In pronouncing today’s sentence, Judge Nathan described LE’s conduct as “a horrible, serious, and quite terrifying offense.”
Mr. Bharara praised the outstanding investigative efforts of the FBI’s New York Joint Terrorism Task Force – which principally consists of agents from the FBI and detectives from the New York City Police Department – and the United States Postal Inspection Service. He also thanked the National Security Division of the U.S. Department of Justice for its assistance.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Ilan Graff and Andrew D. Beaty are in charge of the prosecution.
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Muskogee Man Sentenced to 37 Months for Wire and Tax FraudRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that DAVID ALLEN EDWARDS, age 69, of Muskogee, Oklahoma, was sentenced to 37 months imprisonment, followed by 3 years of supervised release and a $300 special assessment fee for WIRE FRAUD, in violation of Title 18, United States Code, Section 1343; TAX FRAUD, in violation of Title 26, United States Code, Section 7206(1) and FAILURE TO ACCOUNT FOR AND PAY EMPLOYMENT TAXES OWED, in violation of Title 26, United States Code, Section 7202.
It was also ordered that the defendant pay restitution in the amounts of $143,272.88 to Children’s Clinic, PLLC; $18,000.00 to Ron Wright and $534,342.90 to the Internal Revenue Service.
The charges arose from an investigation by the Muskogee Police Department, the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation Division.
The Information filed on July 6, 2015, alleged that on or about January 9, 2014, within the Eastern District of Oklahoma and elsewhere, the defendant devised and intended to devise a scheme and artifice to defraud Children's Clinic, PLLC to obtain money and property in the amount of $403,307.09 by means of materially false and fraudulent pretenses, representations and promises.
Further investigation revealed that on or about June 2, 2011, the defendant willfully made and subscribed a false 2010 Form 1040, U.S. Individual Income Tax Return, which contained and was verified by a written declaration that it was made under the penalties of perjury, and which he did not believe to be true and correct as to every material matter, in that he knowingly reported a false Adjusted Gross Income by failing to report $116,610.00 in additional income that was fraudulently obtained from Children’s Clinic, PLLC.
Agents also discovered that Office Medic, Inc., which is owned and operated by the defendant, withheld payroll taxes from its employees' paychecks, including federal income taxes, Medicare and social security taxes but failed to send $534,342.09 in withholdings to the Internal Revenue Service.
The Honorable Frank H. Seay, Senior District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. The defendant will report to the Bureau of Prisons on April 8, 2016, where he will serve his nonparoleable sentence.
First Assistant United States Attorney Doug Horn represented the United States.
Mount Olive Man Sentenced to 35 Years for Methamphetamine Manufacturing and DistributionRead the Press Release
WILMINGTON – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, Senior United States District Judge James C. Fox, sentenced RANDALL STEWART HILL, 39, of Mount Olive, North Carolina, to 420 months’ imprisonment followed by a lifetime of supervised release.
On November 13, 2015, HILL was found guilty in a jury trial of Conspiracy to Manufacture, Distribute, Dispense, and Possess with the Intent to Distribute a Mixture and Substance Containing 500 Grams or more of Methamphetamine from January 2010 to April 8, 2015.
The investigation revealed that HILL was involved in manufacturing and distributing methamphetamine (meth) in Duplin
County, North Carolina, from at least January 2010 to April 8, 2015. Manufacturing meth requires many ingredients found in over-the-counter cold medicine, as well as other commonly found ingredients. Multiple cooperating witnesses explained how HILL arranged for numerous individuals, commonly referred to as “smurfs,” to obtain the pseudoephedrine (pseudo) through purchase at various stores. HILL then used the pseudo to cook meth and compensated the “smurfs” by providing them with meth.
On April 21, 2010, a deputy with the Duplin County Sheriff’s Office attempted to conduct a traffic stop of a vehicle driven by HILL for a traffic infraction. HILL stopped his vehicle at a residence frequented by meth users and sellers. HILL was observed moving around inside the vehicle and looked as though he was reaching beneath the seat. HILL refused the deputy’s orders to exit the vehicle. As a second deputy attempted to gain entrance to the passenger side of the vehicle, HILL rapidly accelerated and drove away. Deputies pursued HILL as he drove down a dirt path and entered a field. HILL’S vehicle began to slow down and the officer attempted to block HILL’S driver’s side door to prevent HILL from jumping from the vehicle, but HILL accelerated and struck the deputy’s vehicle with his own vehicle in the right front quarter panel. A short time later, HILL was taken into custody by other responding units.
Investigators located two plastic bags with electrical tape wrapped around them along the path they had been driving in pursuit of HILL. About five feet from the bags, deputies recovered .1 gram of meth. A search of HILL’S pants pockets and wallet revealed a sum of $1,806 in United States currency, which converts to 18.6 grams of meth. A HILL is responsible for an estimated amount of 729.57 grams of meth from at least January 2010 to April 8, 2015. HILL possessed at least one firearm and maintained a premise for manufacturing meth. HILL manufactured meth and created a substantial risk of harm to the life of a minor and involved an individual who was less than 18 years of age in the offense. HILL paid at least five individuals with meth to purchase pseudo. As such, HILL acted as a manager of a criminal activity involving five or more participants. Finally, HILL recklessly created a substantial risk of death or serious bodily injury to another person in the course of fleeing from a law enforcement officer.
The criminal investigation of this case was conducted by the North Carolina State Bureau of Investigation and the Duplin County Sheriff’s Office and the Drug Enforcement Administration. Assistant United States Attorney Jennifer Wells handled the prosecution on behalf of the Eastern District of North Carolina.
Miami-Dade County Resident Sentenced to Prison for Filing More Than $7 Million in False Refund Claims with the IRSRead the Press Release
A Miami-Dade County resident was sentenced to 44 months in prison, to be followed by three years of supervised release, for filing more than $7 million in false refund claims with the Internal Revenue Service.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Efrain Galvez, 53, of Miami, Florida, previously pled guilty to one count of making a false, fictitious, and fraudulent claim against the United States, in violation of Title 18, United States Code, Section 287.
According to court documents, Galvez filed false 2005 through 2008 federal income tax returns with the IRS claiming a total of $7,421,987 in fraudulent refunds. In the returns, Galvez falsely asserted that he was owed millions of dollars in income from various entities, and that those entities had withheld the money as federal income tax paid to the IRS. In fact, the entities owed no such income to Galvez, and withheld no such taxes on his behalf. Specifically, Galvez filed a 2007 amended tax return requesting a tax refund of $2,852,566 claiming that he received income from two county courts among other entities. Galvez attached Forms 1099-OID to the tax return, purportedly from the two courts, reflecting that the courts paid the amounts to the IRS on Galvez’s behalf as taxes. The filed 1099-OID forms contained false information. Neither court paid or owed income to Galvez or withheld taxes on his behalf. The amounts referenced in the court documents were in fact foreclosure judgments filed against Galvez for his failure to pay mortgages.
Court documents indicate that Galvez had previously filed legitimate tax returns that did not include fabricated income and withholding amounts and he knew that he had not received the income from the various entities reported on the fraudulent returns, the taxes claimed had not been withheld, and the 1099-OID forms were false.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant U.S. Attorney John P. Gonsoulin.
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.
Marion Man Pleads Guilty to Weapons ChargesRead the Press Release
BOSTON – On the morning his trial was slated to begin, a Marion, Mass., man pleaded guilty in U.S. District Court in Boston to illegally possessing a revolver, a sawed-off shotgun and ammunition.
Jeffrey E. Tosca, Jr., 32, pleaded guilty to being a felon in possession of a firearm and ammunition and to possession of an unregistered firearm. U.S. District Court Judge F. Dennis Saylor IV scheduled sentencing for May 31, 2016.
Late in the evening of September 14, 2013, Tosca made threats from his home in Marion to shoot members of law enforcement and others. Law enforcement, including a SWAT team, quickly responded and took steps to secure the area. Several hours later, law enforcement arrested Tosca without incident and seized weapons and ammunition discovered in a storage container buried on the grounds of his residence.
Tosca has previously been convicted on multiple criminal charges, including 2012 and 2010 convictions on state weapons charges, a 2010 conviction for possession of narcotics, knowingly receiving stolen property and resisting arrest, and convictions in 2005 and 2006 for possession with intent to distribute controlled substances.
The charging statutes provide a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The Marion Police Department and the Plymouth County Sheriff’s Office also assisted with the investigation. The case is being prosecuted by Assistant U.S. Attorneys Suzanne Sullivan Jacobus and Mary B. Murrane of Ortiz’s Major Crimes Unit.
Manclark Sentenced to Violating EPA RegulationsRead the Press Release
FOR IMMEDIATE RELEASE
March 8, 2016
www.justice.gov/usao/msn
OXFORD, Miss. Felicia C. Adams, United States Attorney for the Northern District of Mississippi, together with Andy Castro, Acting Special Agent in Charge of the Environmental Protection Agency’s criminal enforcement program in the Southeast, announces:
William Michael Manclark, 51, of Newport Beach, California, was sentenced on March 7, 2016, by United States District Judge Neal B. Biggers, Jr., in Oxford, Mississippi, following a previous guilty plea to one felony count of aiding and abetting others in knowingly making false material statements in a record or report maintained or used for the purpose of compliance with regulations set forth by the United States Environmental Protection Agency. At the time of the offense, Manclark was the Chief Executive Officer and sole shareholder of Leading Edge Aviation Services, Inc. (Leading Edge), a corporation headquartered in Costa Mesa, California. Leading Edge operated a commercial aircraft painting facility at Greenville’s Mid-Delta Regional Airport until mid-2013. Leading Edge has previously entered a guilty plea to one felony count of treating, storing, or disposing of hazardous waste without a permit at Leading Edge’s now shuttered Greenville, Mississippi, facility, and was ordered to pay monetary penalties in the total amount of $1 million.
Manclark was sentenced to a term of imprisonment of five (5) months to be followed by five (5) months of home confinement. Once his term of incarceration and home confinement is complete, Manclark will be on supervised release for a period of one (1) year. In addition to the incarceration, Manclark was ordered to pay a fine of $250,000.00. Manclark was ordered to report to prison on April 18, 2016.
Felicia C. Adams, United States Attorney, stated: “The United States Attorney’s Office for the Northern District of Mississippi is working aggressively to pursue those individuals who commit fraudulent acts and bring them to justice. Today’s sentence insures that those illegal practices will not be tolerated and fraudsters who knowingly make false material statements will be punished. Our office appreciates the hard work of the Environmental Protection Agency during this investigation.”
“Without accurate and honest information, EPA’s mission of protecting human health and the environment is severely undermined,” said Andy Castro, Acting Special Agent in Charge of EPA’s criminal enforcement program in Mississippi. “The type of paints and solvents used by the defendant’s company are especially hazardous, and can put public health at risk if not handled and disposed of properly. This sentence demonstrates that companies and their senior managers who knowingly submit false reports will face the consequences in court.”
This case was investigated by the Environmental Protection Agency, Criminal Investigation Division, and the Mississippi Department of Environmental Quality.
Man Sentenced to Prison for Facebook ThreatsRead the Press Release
EUGENE, Ore. – Timothy Loren McCoy Fleming, 24, a transient with no permanent residence, was sentenced yesterday, March 7, 2016, to 18 months in federal prison for transmitting a threat in interstate commerce. Fleming pled guilty last September to communicating a threat in interstate commerce, via Facebook, to kill or injure a police officer.
According to a sentencing memorandum filed by the U. S. Attorney’s Office, in January 2015, the Albany Police Department in Albany, Oregon received a call from Fleming’s sister, reporting that Fleming had posted Facebook threats to kill a police officer at Albany city hall. Fleming’s posts included statements like “stash the salvation in my pocket, safety off, trigger finger cold and willing,” and “walk into Albany city hall, smile at the uniform as I pass him in the hall, turn round, salvation speaks, a roaring sound, uniform goes down, no armor on the head makes a corrupt cop dead.”
Fleming’s Facebook postings included a picture of a hand holding a pistol and a picture of the front door of Albany city hall. When police apprehended Fleming, he was carrying an inoperable pellet gun that matched the pistol in the Facebook posting.
Before being sentenced, Fleming apologized to the Albany Police and FBI. Judge Michael McShane cited Fleming’s mental illness, homelessness and inoperable gun as factors warranting less prison time. Judge McShane ordered Fleming to participate in a mental health treatment program and to stay at a residential reentry center upon his release from prison.
This case was investigated by the Albany Police Department and the FBI. Assistant U.S. Attorney William “Bud” Fitzgerald was the prosecutor.
Louisville Attorney Charged with Wire Fraud and Money LaunderingRead the Press Release
Defrauded clients’ estates of $1,666,671.18
LOUISVILLE, Ky. – United States Attorney John E. Kuhn, Jr. today charged David Cary Ford, 53, of Louisville, Kentucky, with criminal counts of wire fraud and money laundering, stemming from Ford’s activities while he was a practicing attorney and the executor of seven estates in Louisville.
"Attorneys are professionally and ethically bound to serve their clients' best interests," stated U.S. Attorney John Kuhn. "We simply cannot tolerate attorneys or any other fiduciaries using their positions of trust to steal from those they are obligated to protect. This prosecution serves the principle of justice and vindicates the breach of a trust that is an absolutely essential component of a multitude of professional relationships."
The criminal information charging Ford alleges that from November 6, 2008, through February 11, 2015, Ford, serving as executor of the estates of Saundra A. Benzinger, Kenneth L. Keith, William T. Lawson, Mary Helen Pfeffer, Elinor E. Starr, Mary Augustine Starr, and Richard Steinmetz, defrauded those estates of approximately $1,666,671.18, and used those estates’ funds for personal expenses and enjoyment, including significant gambling activity.
Specifically, as executor of estates, Ford was authorized at various banks to pay estate expenses. However, Ford also used these estate accounts, without authorization, to withdraw cash and to pay his personal expenses with estate client funds. In his capacity as executor, Ford processed these withdrawals of estate funds and mischaracterized them as estate expenses. For example, Ford made a $4,000 cash withdrawal from an account belonging to the Estate of Kenneth L. Keith at PNC Bank on May 22, 2013.
The criminal information also alleges that from July 21, 2014, to July 28, 2014, Ford laundered fraud proceeds by using funds from one estate to conceal the depletion of the funds from another estate. Specifically, to conceal or disguise the source of proceeds from unlawful activity, on July 24, 2014, after depleting the funds of the Estate of Kenneth L. Keith, Ford took $35,960.18 from the estate of Elinor E. Starr, in a cashier’s check, deposited those funds into his escrow account, and then on July 28, 2014, used $25,000 of those funds to pay a beneficiary of the Estate of Kenneth L. Keith.
In the event of a conviction, the maximum potential penalties Ford faces are forty years’ imprisonment, $750,000 in fines, and supervised release for a period of three years.
The case is being prosecuted by Assistant United States Attorney Jason Snyder, and it results from an investigation conducted by the Internal Revenue Service – Criminal Investigation Division and the Federal Bureau of Investigation.
Louisiana Man Pleads Guilty to Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that John K. Carrillo, 35, of Lake Charles, Louisiana, pleaded guilty to possession of child pornography before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison, and a fine of $250,000.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that on November 11, 2014, the defendant possessed images and videos of child pornography which were stored on a laptop computer. Carrillo obtained the images and videos over the internet.
At the time, an undercover FBI agent logged onto a peer-to-peer sharing program downloaded 69 images and seven videos of child pornography directly from a username belonging to the defendant. At the time of this download, the defendant possessed the images and videos of child pornography on his laptop computer which was located in his residence in Williamsville, New York.
On February 27, 2015, while Carrillo was then living in Lake Charles, Louisiana, he was found to again be utilizing a peer-to-peer network to distribute child pornography. Some of the images and videos depicted violence involving minors less than 12 years old.
The plea is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge, Adam Cohen.
Sentencing is scheduled for June 13, 2016 at 12:30 p.m. before Judge Richard J. Arcara.
Little Rock Man Steals Money Meant to Feed Hungry Children, Pleads GuiltyRead the Press Release
LITTLE ROCK—Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced Tuesday that Reuben Nims, 52, of Little Rock, pled guilty to an Information charging him with conspiring to commit mail fraud. Nims conspired to steal money intended to feed children in low income areas during the school year.
Tuesday’s plea hearing took place in Little Rock before United States District Judge James M. Moody, Jr., who will sentence Nims at a later date.
The United States Department of Agriculture (USDA) funds the Child and Adult Care Feeding Program, which includes an at-risk after school component. In Arkansas, the feeding programs are administered by the Arkansas Department of Human Services (DHS). Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. After they are approved, they can provide meals as part of the feeding program, and they are reimbursed for the eligible meals they serve.
Nims was a sponsor for a feeding program through an organization called "Blessed Thru Success." Nims had one approved feeding site on Rodney Parham Road in Little Rock, where he claimed as many as 300 children were fed each day. No children were ever actually fed there. In this way, Nims stole over $182,000 in USDA funds that were intended to feed children in need. DHS paid this money to Nims by checks that were mailed to his home.
Nims admitted that he was recruited by Anthony Waits, who has been indicted on similar charges in Case No. 4:14CR00250 JM. Waits’ wife, Gladys Waits, worked for DHS and approved Nims’ application. She has also been indicted on similar charges in Case No. 4:14CR00250 JM. The plan was for Nims to pay Anthony Waits a percentage of the money Nims received. Out of the money Nims received, he withdrew approximately $130,000 in cash. Nims paid Anthony Waits approximately 50% of the total amount of money he received.
Nims is the sixth person to plead guilty concerning the theft of USDA feeding program funds for children. Previous charges filed in this investigation detail alleged fraud involving over $10 million in USDA feeding program funds.
The statutory penalty for conspiracy to commit mail fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than three years supervised release.
The investigation is ongoing and is being conducted by the USDA–Office of Inspector General, Federal Bureau of Investigation, Internal Revenue Service–Criminal Investigations, and United States Marshals Service. The case is being prosecuted by Assistant United States Attorneys Jana Harris and Allison W. Bragg.
If you are aware of any fraudulent activity regarding these feeding programs, please email that information to [email protected].
Lincoln County Drug Dealer Sentenced to 72 Months in PrisonRead the Press Release
EUGENE, Ore. – Zak Harris, 33, of Lincoln County, Oregon, was sentenced on Thursday, March 3, 2016, by U.S. District Judge Ann Aiken to 72 months in prison for possession with intent to distribute methamphetamine and felon in possession of a firearm. Following his release from prison, Harris will be on supervised release for four years.
On February 21, 2013, law enforcement in Lincoln County located Harris and three other people in a beach house with drugs and firearms. They also found a box buried on public property belonging to Harris, which contained methamphetamine, a firearm and a small quantity of heroin. The investigation revealed defendant had been selling methamphetamine in the local community. Harris has three prior convictions for delivery of controlled substances.
The investigation of this case was conducted by the Lincoln City Police Department, the Oregon State Police, the Toledo Police Department and the Eugene, Oregon office of the ATF. The case was prosecuted by Assistant U.S. Attorney Amy Potter.
Lawrence Tax Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
BOSTON – A Lawrence tax preparer pleaded guilty today in U.S. District Court in Boston in connection with filing false tax returns with the IRS resulting in over $220,000 in fraudulent refunds.
Leonidas Nunez, 60, pleaded guilty to one count of conspiracy to defraud the United States with respect to claims and six counts of filing false, fictitious or fraudulent claims with the IRS.
From October 2010 to April 2011, Nunez conspired with others to defraud the IRS by presenting false income tax returns. The fraudulent returns falsely alleged income earned by Puerto Rican residents who had not had federal income tax withheld and who were not required to file income tax returns in the United States. Nunez and his co-conspirators caused the IRS to deposit the resulting fraudulent refunds into bank accounts controlled by Nunez and his co-conspirators. Together, they filed over 100 fraudulent returns with the IRS for tax year 2010, resulting in over $550,000 in fraudulent claims and over $220,000 in refunds.
The charge of conspiracy to defraud the U.S. provides a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. The charge of filing false claims provides a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Manny J. Muriel, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Robert A. Fisher of Ortiz’s Public Corruption Unit.
KC Man Sentenced to 21 Years for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Wesley Wyatt, 59, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to 21 years and 10 months in federal prison without parole. Wyatt was sentenced as an armed career offender due to his prior felony convictions.
On Aug. 18, 2015, Wyatt was found guilty at trial of being a felon in possession of a firearm. Evidence introduced during the trial indicated that Wyatt was in possession of a Davis Industries .38-caliber two-shot derringer pistol on Sept. 18, 2013.
Kansas City police officers responded to a domestic violence call at Wyatt’s apartment on Sept. 18, 2013. The victim of the assault, Wyatt’s girlfriend, told officers that she and Wyatt were arguing when he pulled out a gun, pointed it at her, and said “If you don’t get out of my house I will kill you!” Wyatt was not in the residence when officers arrived, but returned a short time later and was arrested for domestic assault. A firearm was not located at that time.
While Wyatt was being held in the Kansas City detention unit, he called another person to go retrieve his gun from the mailbox. That person, instead, called Wyatt’s girlfriend, who then called the police to come retrieve the loaded gun.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Wyatt has two prior felony convictions for robbery, three prior felony convictions for distributing a controlled substance and prior felony convictions for trafficking in a controlled substance and for possessing a controlled substance.
This case was prosecuted by Assistant U.S. Attorneys Justin G. Davids and Jeff Q. McCarther. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Justice Department Settles Disability-based Housing Discrimination Lawsuit with Owners and Developers of 71 Apartment Complexes in Alabama, Georgia, North Carolina and TennesseeRead the Press Release
WASHINGTON – The Justice Department announced today that the owners and developers of 71 multifamily housing complexes in four states with more than 2,500 ground-floor units have agreed to pay $350,000 to settle claims that they violated the Fair Housing Act and the Americans with Disabilities Act by building apartment complexes that were inaccessible to persons with disabilities. As part of the settlement, the companies also agreed to make substantial retrofits to remove accessibility barriers.
Under the terms of the agreement, which was approved today by the U.S. District Court for the Northern District of Alabama, Alabama-based developers Allan Rappuhn, Gateway Construction Corporation, Gateway Development Corporation and other affiliated companies must take extensive actions to make the complexes accessible to persons with disabilities. These corrective actions include replacing excessively sloped portions of sidewalks, installing properly sloped curb walkways to allow persons with disabilities to access units from sidewalks and parking areas, replacing cabinets in bathrooms to provide sufficient room for wheelchair users and removing accessibility barriers in public and common use areas at the complexes. The defendants will pay $300,000 to establish a settlement fund for the purpose of compensating individuals with disabilities who have been impacted by the accessibility violations and $50,000 as a civil penalty.
“Our country prohibits discrimination because of an individual’s disability, and our laws guarantee all people the right to access housing of their choice,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We will continue aggressively enforcing the Fair Housing Act and the Americans with Disabilities Act to ensure that residential multi-family housing is built with the required accessible features.”
“Because of the Fair Housing Act and the Americans with Disabilities Act, persons with disabilities, like all Americans, have the right to live in housing free of discrimination” said U.S. Attorney Joyce White Vance. “My office remains committed to aggressively protecting the housing and other rights of individuals with disabilities.”
The agreement also requires the defendants to receive training about the Fair Housing Act and Americans with Disabilities Act to ensure that all future multifamily housing construction complies with these laws and to provide periodic reports to the Justice Department.
Those who are entitled to share in the settlement fund will be identified through a process established in the settlement. Persons who believe they may have been harmed by the inaccessible conditions at any of these properties, either when they or someone associated with them lived there or considered living there, should contact the Justice Department toll-free at 1-800-896-7743 mailbox #2, or e-mail the Justice Department at [email protected].
The 71 complexes at issue, 69 of which were built with financial assistance from the federal government’s Low-Income Housing Tax Credit program or other federal programs, are:
- Alexander Terrace Apartments, Moulton, Alabama
- Americus Gardens Apartments, Americus, Georgia
- Applegate Apartments, Florence, Alabama
- Autumn Ridge Apartments, Jacksonville, North Carolina
- Bailey Springs Apartments, Lincolnton, North Carolina
- Belle Isle Apartments, Robertsdale, Alabama
- Blue Springs Apartments, Jacksonville, North Carolina
- Bradbury Apartments, Newton, North Carolina
- Brentwood Landing Apartments, Prattville, Alabama
- Brentwood Landing II Apartments, Prattville
- Brookstone Village Apartments, Jacksonville, Alabama
- Canebreak Apartments, Wilmington, North Carolina
- Cedar Glades Apartments, Shelbyville, Tennessee
- Charleston Square Apartments, Troy, Alabama
- Cherry Ridge Independent Living Apartments, Birmingham, Alabama
- Cottage Hill Pointe Apartments, Mobile, Alabama
- Double Creek Apartments, Florence
- Eagle Pointe Apartments, Madison, Alabama
- Evergreen Village Apartments, Cedartown, Georgia
- Glencoe Trace Apartments, Griffin, Georgia
- Hamilton Place Apartments, Millbrook, Alabama
- Harbor Square Apartments, Decatur, Alabama
- Heatherwood Apartments, Alexander City, Alabama
- Heritage Vista Apartments, Milledgeville, Georgia
- Heron Lake Apartments, Valdosta, Georgia
- Heron Lake II Apartments, Valdosta
- Hickory Run Apartments, Jacksonville, Alabama
- Hickory Run II Apartments, Jacksonville, Alabama
- Highland Park Senior Village, Douglasville, Georgia
- Hunter Pointe Apartments, Centreville, Alabama
- Ivy Pointe Apartments, Tuscumbia, Alabama
- Ivy Pointe II Apartments, Tuscumbia, Alabama
- Kirby Creek Apartments, Cairo, Georgia
- Kirkwood Trail Apartments, Cedartown
- Lakeshore Crossing Apartments, Huntsville, Alabama
- Lenox Station Apartments, Rockingham, North Carolina
- Liberty Square Apartments, Montgomery, Alabama
- Mallard Lake Apartments, LaGrange, Georgia
- Maple Square Apartments, Jefferson, Georgia
- Meadowview Apartments, Greenville, Alabama
- Oakland Mill Apartments, Lincolnton, North Carolina
- Oleander Park Apartments, Mobile
- Orchard Park Apartments, Hayneville, Alabama
- Palladian Apartments, Mobile
- Palladian II Apartments, Mobile
- Palladian-Fairhope Apartments, Fairhope, Alabama
- Palladian-Jubilee Apartments, Daphne, Alabama
- Parkwood Apartments, Pell City, Alabama
- Pebble Creek Apartments, Butler, Alabama
- Pinewood Apartments, Pooler, Georgia
- Powell Place Apartments, Barnesville, Georgia
- Preston Place Apartments, Quitman, Georgia
- Shadowood Apartments, Stevenson, Alabama
- Shellbrooke Pointe Apartments, Fairhope, Alabama
- Sheppard Station Apartments, Pooler, Georgia
- Skyline Trace Apartments, Monroe, Georgia
- Sterling Oaks Apartments, Spindale, North Carolina
- Stoney Creek Apartments, Laurinburg, North Carolina
- Stony Ridge Apartments, Hogansville, Georgia
- Sullivan Village Apartments, Tuscumbia, Alabama
- The Park at Rocky Ridge Apartments, Birmingham
- Timberfalls Apartments, Thomaston, Georgia
- Valley Ridge Apartments, LaGrange, Georgia
- Village at Wedgewood Apartments, Cairo
- Villas on Forsyth Apartments, Barnesville, Georgia
- Waring Apartments, Waycross, Georgia
- Waring II Apartments, Waycross
- Waterford Farms Apartments, Arab, Alabama
- Wincliff Apartments, Gainesville, Georgia
- Woodlawn Terrace Apartments, Valdosta
- Westfork Apartments, Jasper, Alabama
The federal Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. Among other things, the Fair Housing Act requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes without steps to all ground floor units, and units accessible to wheelchair users and others with disabilities. Enacted in 1990, the Americans with Disabilities Act requires, among other things, that places of public accommodation, such as rental offices at multifamily housing complexes designed and constructed for first occupancy after Jan. 26, 1993, be accessible to persons with disabilities.
Fair housing enforcement is a priority of the Civil Rights Division. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Justice Department Settles Disability-Based Housing Discrimination Lawsuit with Owners and Developers of 71 Apartment Complexes in Alabama, Georgia, North Carolina and TennesseeRead the Press Release
The Justice Department announced today that the owners and developers of 71 multi-family housing complexes in four states with more than 2,500 ground-floor units have agreed to pay $350,000 to settle claims that they violated the Fair Housing Act and the Americans with Disabilities Act by building apartment complexes that were inaccessible to persons with disabilities. As part of the settlement, the companies also agreed to make substantial retrofits to remove accessibility barriers.
Under the terms of the agreement, which was approved today by the U.S. District Court for the Northern District of Alabama, Alabama-based developers Allan Rappuhn, Gateway Construction Corporation, Gateway Development Corporation and other affiliated companies must take extensive actions to make the complexes accessible to persons with disabilities. These corrective actions include replacing excessively sloped portions of sidewalks, installing properly sloped curb walkways to allow persons with disabilities to access units from sidewalks and parking areas, replacing cabinets in bathrooms to provide sufficient room for wheelchair users and removing accessibility barriers in public and common use areas at the complexes. The defendants will pay $300,000 to establish a settlement fund for the purpose of compensating individuals with disabilities who have been impacted by the accessibility violations and $50,000 as a civil penalty.
“Our country prohibits discrimination because of an individual’s disability, and our laws guarantee all people the right to access housing of their choice,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We will continue aggressively enforcing the Fair Housing Act and the Americans with Disabilities Act to ensure that residential multi-family housing is built with the required accessible features.”
“Because of the Fair Housing Act and the Americans with Disabilities Act, persons with disabilities, like all Americans, have the right to live in housing free of discrimination” said U.S. Attorney Joyce White Vance of the Northern District of Alabama. “My office remains committed to aggressively protecting the housing and other rights of individuals with disabilities.”
The agreement also requires the defendants to receive training about the Fair Housing Act and Americans with Disabilities Act to ensure that all future multifamily housing construction complies with these laws and to provide periodic reports to the Justice Department.
Those who are entitled to share in the settlement fund will be identified through a process established in the settlement. Persons who believe they may have been harmed by the inaccessible conditions at any of these properties, either when they or someone associated with them lived there or considered living there, should contact the Justice Department toll-free at 1-800-896-7743 mailbox #2, or e-mail the Justice Department at [email protected].
The 71 complexes at issue, 69 of which were built with financial assistance from the federal government’s Low-Income Housing Tax Credit program or other federal programs, are:
- Alexander Terrace Apartments, Moulton, Alabama
- Americus Gardens Apartments, Americus, Georgia
- Applegate Apartments, Florence, Alabama
- Autumn Ridge Apartments, Jacksonville, North Carolina
- Bailey Springs Apartments, Lincolnton, North Carolina
- Belle Isle Apartments, Robertsdale, Alabama
- Blue Springs Apartments, Jacksonville, North Carolina
- Bradbury Apartments, Newton, North Carolina
- Brentwood Landing Apartments, Prattville, Alabama
- Brentwood Landing II Apartments, Prattville
- Brookstone Village Apartments, Jacksonville, Alabama
- Canebreak Apartments, Wilmington, North Carolina
- Cedar Glades Apartments, Shelbyville, Tennessee
- Charleston Square Apartments, Troy, Alabama
- Cherry Ridge Independent Living Apartments, Birmingham, Alabama
- Cottage Hill Pointe Apartments, Mobile, Alabama
- Double Creek Apartments, Florence
- Eagle Pointe Apartments, Madison, Alabama
- Evergreen Village Apartments, Cedartown, Georgia
- Glencoe Trace Apartments, Griffin, Georgia
- Hamilton Place Apartments, Millbrook, Alabama
- Harbor Square Apartments, Decatur, Alabama
- Heatherwood Apartments, Alexander City, Alabama
- Heritage Vista Apartments, Milledgeville, Georgia
- Heron Lake Apartments, Valdosta, Georgia
- Heron Lake II Apartments, Valdosta
- Hickory Run Apartments, Jacksonville, Alabama
- Hickory Run II Apartments, Jacksonville, Alabama
- Highland Park Senior Village, Douglasville, Georgia
- Hunter Pointe Apartments, Centreville, Alabama
- Ivy Pointe Apartments, Tuscumbia, Alabama
- Ivy Pointe II Apartments, Tuscumbia, Alabama
- Kirby Creek Apartments, Cairo, Georgia
- Kirkwood Trail Apartments, Cedartown
- Lakeshore Crossing Apartments, Huntsville, Alabama
- Lenox Station Apartments, Rockingham, North Carolina
- Liberty Square Apartments, Montgomery, Alabama
- Mallard Lake Apartments, LaGrange, Georgia
- Maple Square Apartments, Jefferson, Georgia
- Meadowview Apartments, Greenville, Alabama
- Oakland Mill Apartments, Lincolnton, North Carolina
- Oleander Park Apartments, Mobile
- Orchard Park Apartments, Hayneville, Alabama
- Palladian Apartments, Mobile
- Palladian II Apartments, Mobile
- Palladian-Fairhope Apartments, Fairhope, Alabama
- Palladian-Jubilee Apartments, Daphne, Alabama
- Parkwood Apartments, Pell City, Alabama
- Pebble Creek Apartments, Butler, Alabama
- Pinewood Apartments, Pooler, Georgia
- Powell Place Apartments, Barnesville, Georgia
- Preston Place Apartments, Quitman, Georgia
- Shadowood Apartments, Stevenson, Alabama
- Shellbrooke Pointe Apartments, Fairhope, Alabama
- Sheppard Station Apartments, Pooler, Georgia
- Skyline Trace Apartments, Monroe, Georgia
- Sterling Oaks Apartments, Spindale, North Carolina
- Stoney Creek Apartments, Laurinburg, North Carolina
- Stony Ridge Apartments, Hogansville, Georgia
- Sullivan Village Apartments, Tuscumbia, Alabama
- The Park at Rocky Ridge Apartments, Birmingham
- Timberfalls Apartments, Thomaston, Georgia
- Valley Ridge Apartments, LaGrange, Georgia
- Village at Wedgewood Apartments, Cairo
- Villas on Forsyth Apartments, Barnesville, Georgia
- Waring Apartments, Waycross, Georgia
- Waring II Apartments, Waycross
- Waterford Farms Apartments, Arab, Alabama
- Wincliff Apartments, Gainesville, Georgia
- Woodlawn Terrace Apartments, Valdosta
- Westfork Apartments, Jasper, Alabama
The federal Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. Among other things, the Fair Housing Act requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes without steps to all ground floor units, and units accessible to wheelchair users and others with disabilities. Enacted in 1990, the Americans with Disabilities Act requires, among other things, that places of public accommodation, such as rental offices at multifamily housing complexes designed and constructed for first occupancy after Jan. 26, 1993, be accessible to persons with disabilities.
Fair housing enforcement is a priority of the Civil Rights Division. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Rappuhn Consent Order
Justice Department Announces New Interagency Initiative to Combat Religious DiscriminationRead the Press Release
The Justice Department announced the launch of “Combating Religious Discrimination Today,” a new interagency community engagement initiative designed to promote religious freedom, challenge religious discrimination and enhance enforcement of religion-based hate crimes. The Justice Department’s Civil Rights Division, in partnership with other federal agencies, will host a series of community roundtables across the country that focus on protecting people and places of worship from religion-based hate crimes; combating religious discrimination, including bullying, in education and employment; and addressing unlawful barriers that interfere with the construction of places of worship.
The inaugural roundtable, which is taking place today in Newark, New Jersey, will focus on addressing bullying and religious discrimination in schools. It will examine how students encounter bullying and harassment based on their actual or perceived religion, as well as discrimination based on religious clothing, holidays and expression.
Subsequent roundtables will focus on a variety of related topics, including a discussion in Dallas that will center on preventing and prosecuting religion-based hate crimes targeting individuals and houses of worship; a meeting in Birmingham, Alabama, that will examine religious discrimination in employment; and a convening in Detroit that will address discrimination by local zoning officials against congregants seeking to build places of worship. The final roundtable will also concentrate on bullying and religious discrimination in schools and will take place in Palo Alto, California.
“Hate-motivated violence, harassment and discrimination violate America’s laws and threaten our founding vision of a free and tolerant society that welcomes people from every creed and walk of life,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Robust community engagement and meaningful dialogue can help our country fulfill its promise of religious freedom, and we look forward to tackling this challenging work with creative solutions in the months ahead.”
Agencies participating in the new initiative include the Departments of Education, Homeland Security (DHS) and Labor (DOL); the Equal Employment Opportunity Commission (EEOC); and within the Justice Department, the Civil Rights Division, FBI, Office of Justice Programs, Executive Office for U.S. Attorneys and Community Relations Service. Agency officials will facilitate the roundtable discussions to help identify key priorities and lead robust dialogue with community members and civil rights advocates.
“We are eager to continue partnering with our federal colleagues to address bias and discrimination in our nation’s schools, and to continue our strong enforcement of federal civil rights laws to ensure that all students can learn in safe school environments,” said Catherine E. Lhamon, Assistant Secretary for Civil Rights at the Department of Education.
“Since DHS was established, we have worked closely with communities across the country to combat intolerance and ensure safety at houses of worship,” said Officer Megan H. Mack of the DHS Office for Civil Rights and Civil Liberties. “Ensuring the protection of uniquely American rights and liberties is a fundamental part of DHS’s mission to build safe and resilient communities. We look forward to expanding our already extensive engagement with communities by working closely with our federal partners on this effort.”
“A diverse and inclusive workplace reflects the strength and richness of America and its history,” said Director Patricia Shiu of the DOL Office of Federal Contract Compliance Programs. “Built by immigrants from every corner of the world, our nation’s greatness must not be diminished by unlawful religious discrimination. The Department of Labor welcomes the opportunity to collaborate with our federal partners on this important issue.”
“Our nation was founded on the principles of freedom and equality,” said Jenny R. Yang, EEOC Chair. “Working with our federal and community partners enables EEOC to better understand and address religious discrimination in the workplace, and to inform affected communities of protections under federal law.”
The new initiative supplements the department’s long-standing criminal and civil enforcement efforts to prevent religious discrimination and religion-motivated hate crimes. Since the 9/11 terrorists attacks, the department has investigated more than 1,000 incidents involving acts of violence, threats, assaults, vandalism and arson targeting diverse religious and ethnic groups, prosecuting dozens of these cases to the fullest extent of the law. The Civil Rights Division, often in close partnership with other federal agencies, also utilizes civil enforcement to combat religious discrimination and protect religious freedom. This includes preventing religious discrimination in education, through Title IV of the Civil Rights Act of 1964, and in employment, through Title VII of the Civil Rights Act of 1964. In addition, the division enforces the Religious Land Use and Institutionalized Persons Act, which protects individuals, houses of worship and other religious institutions from discrimination in zoning and landmarking laws. For more information about the new initiative, please email [email protected]. Additionally, EEOC is posting a ‘What You Should Know’ document today on its homepage, www.eeoc.gov, compiling EEOC’s resources regarding religious and national origin-based discrimination.
Justice Department Announces New Interagency Initiative to Combat Religious DiscriminationRead the Press Release
WASHINGTON – The Justice Department announced the launch of “Combating Religious Discrimination Today,” a new interagency community engagement initiative designed to promote religious freedom, challenge religious discrimination and enhance enforcement of religion-based hate crimes. The Justice Department’s Civil Rights Division, in partnership with other federal agencies, will host a series of community roundtables across the country that focus on protecting people and places of worship from religion-based hate crimes; combating religious discrimination, including bullying, in education and employment; and addressing unlawful barriers that interfere with the construction of places of worship.
The inaugural roundtable, which is taking place today in Newark, N.J., will focus on addressing bullying and religious discrimination in schools. It will examine how students encounter bullying and harassment based on their actual or perceived religion, as well as discrimination based on religious clothing, holidays and expression.
Subsequent roundtables will focus on a variety of related topics, including a meeting in Birmingham, that will examine religious discrimination in employment; a discussion in Dallas that will center on preventing and prosecuting religion-based hate crimes targeting individuals and houses of worship; and a convening in Detroit that will address discrimination by local zoning officials against congregants seeking to build places of worship. The final roundtable will also concentrate on bullying and religious discrimination in schools and will take place in Palo Alto, California.
“Hate-motivated violence, harassment and discrimination violate America’s laws and threaten our founding vision of a free and tolerant society that welcomes people from every creed and walk of life,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Robust community engagement and meaningful dialogue can help our country fulfill its promise of religious freedom, and we look forward to tackling this challenging work with creative solutions in the months ahead.”
“Our communities can thrive only when individual’s civil rights are protected, so that we have broad inclusion in the work force,” said U.S. Attorney Joyce White Vance of the Northern District of Alabama. “Protecting the employment rights of religious groups is an important matter. We welcome the opportunity to engage the community in a roundtable discussion of this issue.”
Agencies participating in the new initiative include the Departments of Education, Homeland Security (DHS) and Labor (DOL); the Equal Employment Opportunity Commission (EEOC); and within the Justice Department, the Civil Rights Division, FBI, Office of Justice Programs, Executive Office for U.S. Attorneys and Community Relations Service. Agency officials will facilitate the roundtable discussions to help identify key priorities and lead robust dialogue with community members and civil rights advocates.
“We are eager to continue partnering with our federal colleagues to address bias and discrimination in our nation’s schools, and to continue our strong enforcement of federal civil rights laws to ensure that all students can learn in safe school environments,” said Catherine E. Lhamon, Assistant Secretary for Civil Rights at the Department of Education.
“Since DHS was established, we have worked closely with communities across the country to combat intolerance and ensure safety at houses of worship,” said Officer Megan H. Mack of the DHS Office for Civil Rights and Civil Liberties. “Ensuring the protection of uniquely American rights and liberties is a fundamental part of DHS’s mission to build safe and resilient communities. We look forward to expanding our already extensive engagement with communities by working closely with our federal partners on this effort.”
“A diverse and inclusive workplace reflects the strength and richness of America and its history,” said Director Patricia Shiu of the DOL Office of Federal Contract Compliance Programs. “Built by immigrants from every corner of the world, our nation’s greatness must not be diminished by unlawful religious discrimination. The Department of Labor welcomes the opportunity to collaborate with our federal partners on this important issue.”
“Our nation was founded on the principles of freedom and equality,” said Jenny R. Yang, EEOC Chair. “Working with our federal and community partners enables EEOC to better understand and address religious discrimination in the workplace, and to inform affected communities of protections under federal law.”
The new initiative supplements the department’s long-standing criminal and civil enforcement efforts to prevent religious discrimination and religion-motivated hate crimes. Since the 9/11 terrorists attacks, the department has investigated more than 1,000 incidents involving acts of violence, threats, assaults, vandalism and arson targeting diverse religious and ethnic groups, prosecuting dozens of these cases to the fullest extent of the law. The Civil Rights Division, often in close partnership with other federal agencies, also utilizes civil enforcement to combat religious discrimination and protect religious freedom. This includes preventing religious discrimination in education, through Title IV of the Civil Rights Act of 1964, and in employment, through Title VII of the Civil Rights Act of 1964. In addition, the division enforces the Religious Land Use and Institutionalized Persons Act, which protects individuals, houses of worship and other religious institutions from discrimination in zoning and landmarking laws. For more information about the new initiative, please email [email protected]. Additionally, EEOC is posting a ‘What You Should Know’ document today on its homepage, www.eeoc.gov, compiling EEOC’s resources regarding religious and national origin-based discrimination.
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Justice Department Announces New Interagency Initiative to Combat Religious DiscriminationRead the Press Release
NEWARK, N.J. – The Justice Department announced the launch of “Combating Religious Discrimination Today,” a new interagency community engagement initiative designed to promote religious tolerance, challenge religious discrimination and enhance enforcement of religion-based hate crimes. The Justice Department’s Civil Rights Division, in partnership with other federal agencies, is hosting a series of community roundtables across the country that focus on protecting people and places of worship from religion-based hate crimes; combating religious discrimination, including bullying, in education and employment; and addressing unlawful barriers that interfere with the construction of places of worship.
The inaugural roundtable is taking place today at the U.S. Attorney’s Office in Newark and is focusing on addressing bullying and religious discrimination in schools. It will examine how students encounter bullying and harassment based on their actual or perceived religion, as well as discrimination based on religious clothing, holidays and expression.
Subsequent roundtables will focus on a variety of related topics, including a discussion in Dallas that will center on preventing and prosecuting religion-based hate crimes targeting individuals and houses of worship; a meeting in Birmingham, Alabama, that will examine religious discrimination in employment; and a convening in Detroit that will address discrimination by local zoning officials against congregants seeking to build places of worship. The final roundtable will also concentrate on bullying and religious discrimination in schools and will take place in Palo Alto, California.
“Protecting the rights of everyone to worship as they choose is fundamental to our way of life,” U.S. Attorney Paul J. Fishman, District of New Jersey, said. “Our office has worked with our law enforcement partners to enhance and maintain connections with the many communities of faith that exist in a state as diverse as New Jersey. The discussions that we’re kicking off here today are a natural extension of that work, and I look forward to continuing this important dialogue with all of our partner agencies and the people we represent.”
“Hate-motivated violence, harassment and discrimination violate America’s laws and threaten our founding vision of a free and tolerant society that welcomes people from every creed and walk of life,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Robust community engagement and meaningful dialogue can help our country fulfill its promise of religious freedom, and we look forward to tackling this challenging work with creative solutions in the months ahead.”
Agencies participating in the new initiative include the Departments of Education, Homeland Security (DHS) and Labor (DOL); the Equal Employment Opportunity Commission (EEOC); and within the Justice Department, the Civil Rights Division, FBI, Office of Justice Programs, Executive Office for U.S. Attorneys and Community Relations Service. Agency officials will facilitate the roundtable discussions to help identify key priorities and lead robust dialogue with community members and civil rights advocates.
“We are eager to continue partnering with our federal colleagues to address bias and discrimination in our nation’s schools, and to continue our strong enforcement of federal civil rights laws to ensure that all students can learn in safe school environments,” said Catherine E. Lhamon, Assistant Secretary for Civil Rights at the Department of Education.
“Since DHS was established, we have worked closely with communities across the country to combat intolerance and ensure safety at houses of worship,” said Officer Megan H. Mack of the DHS Office for Civil Rights and Civil Liberties. “Ensuring the protection of uniquely American rights and liberties is a fundamental part of DHS’s mission to build safe and resilient communities. We look forward to expanding our already extensive engagement with communities by working closely with our federal partners on this effort.”
“A diverse and inclusive workplace reflects the strength and richness of America and its history,” said Director Patricia Shiu of the DOL Office of Federal Contract Compliance Programs. “Built by immigrants from every corner of the world, our nation’s greatness must not be diminished by unlawful religious discrimination. The Department of Labor welcomes the opportunity to collaborate with our federal partners on this important issue.”
“Our nation was founded on the principles of tolerance and equality,” said Jenny R. Yang, EEOC Chair. “Working with our federal and community partners enables EEOC to better understand and address religious discrimination in the workplace, and to inform affected communities of protections under federal law.”
The new initiative supplements the department’s long-standing criminal and civil enforcement efforts to prevent religious discrimination and religion-motivated hate crimes. Since the 9/11 terrorists attacks, the department has investigated more than 1,000 incidents involving acts of violence, threats, assaults, vandalism and arson targeting diverse religious and ethnic groups, prosecuting dozens of these cases to the fullest extent of the law. The Civil Rights Division, often in close partnership with other federal agencies, also utilizes civil enforcement to combat religious discrimination and protect religious freedom. This includes preventing religious discrimination in education, through Title IV of the Civil Rights Act of 1964, and in employment, through Title VII of the Civil Rights Act of 1964. In addition, the division enforces the Religious Land Use and Institutionalized Persons Act, which protects individuals, houses of worship and other religious institutions from discrimination in zoning and landmarking laws. For more information about the new initiative, please email [email protected]. Additionally, EEOC is posting a ‘What You Should Know’ document today on its homepage, www.eeoc.gov, compiling EEOC’s resources regarding religious and national origin-based discrimination.
Joplin, Carl Junction Men Plead Guilty to Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two Joplin, Mo., men and a Carl Junction, Mo., man have pleaded guilty in federal court to their roles in a conspiracy to distribute methamphetamine in Jasper and Newton counties.
David B. Garrett, 60, of Joplin, pleaded guilty today before U.S. Magistrate Judge David P. Rush to participating in a conspiracy to distribute methamphetamine in Jasper and Newton counties from Oct. 24, 2014, to March 13, 2015.
Co-defendants Vance W. Cooley, 62, of Joplin, and Sheldon John Oliver, 60, of Carl Junction, pleaded guilty on Monday, March 7, 2016, to their roles in the drug-trafficking conspiracy. Cooley admitted that he supplied methamphetamine to Garrett and Oliver, who admitted they distributed methamphetamine to other persons in Jasper and Newton counties.
The investigation began on Oct. 24, 2014, when a Jasper County sheriff’s deputy saw two flashlights in a wooded area behind Cooley’s residence on Rabbit Run Road in Joplin. The deputy saw two people loading items into the back of a Chevrolet S10 truck. Cooley, who was one of the men, then got into the truck and started driving. When the deputy conducted a traffic stop, he arrested Cooley for driving with a revoked license. The deputy found a baggie containing 8.6 grams of methamphetamine and $1,608 in Cooley’s possession. After searching Cooley’s vehicle, deputies found a Mossberg 12-gauge sawed-off shotgun, a Mauser 7.65-caliber rifle, an EIG .22-caliber rifle, an EIG .22-caliber revolver and various rounds of ammunition in the bed of the truck.
On Dec. 10, 2014, Jasper County Drug Task Force officers met with a confidential source who provided information regarding illegal narcotics being sold from Cooley’s residence. Officers conducted surveillance on the residence and saw Oliver and Garrett leave in a Chevrolet Lumina. Deputies conducted a traffic stop and found a marijuana joint and two hypodermic needles in the vehicle; Oliver and Garrett were placed under arrest. Deputies searched Oliver and found approximately nine grams of methamphetamine in his watch pocket. Deputies searched Garrett and found approximately 32 grams of methamphetamine in his shirt pocket.
Task force officer executed a search warrant at Cooley’s residence on Dec. 10, 2014. Officers found 575 grams of methamphetamine, individually packaged in Ziploc baggies, inside a Chevrolet pick-up truck that was parked in a detached garage. They also found another Ziploc baggie containing approximately 58 grams of methamphetamine inside a leather-bound box in the truck. Approximately 633 grams of methamphetamine in total was found inside the truck.
On Jan. 13, 2015, members of the Jasper County Drug Task Force and the Joplin, Mo., Police Department executed a search warrant at Oliver’s residence. Oliver and his wife were detained in an RV located on the rear of the property. Officers found a black case on the floor of the RV that contained a bag with 2.8 grams of methamphetamine, several baggies (commonly used for distribution) and a spoon. Also discovered in the RV were two scales and syringes.
On Jan. 22, 2015, members of the Jasper County Drug Task Force executed a search warrant on a hotel room in Joplin occupied by Garrett. Garrett, who was inside the hotel room with an unidentified female, had approximately 10 grams of methamphetamine, approximately two grams of cocaine, and approximately 10 grams of marijuana on the nightstand.
Later that night, task force officers executed a search warrant at Garrett’s residence. They found a Thompson .50-caliber muzzle loader, a loaded Davis Industries .38-caliber pistol, a loaded Bridge 20-gauge sawed-off shotgun, a Stevens .410 sawed-off shotgun and various rounds of ammunition. Garrett admitted that he possessed the firearms and ammunition in connection with his involvement in the drug-trafficking conspiracy.
Cooley was arrested by Joplin police officers on March 13, 2015. At the time of his arrest, Cooley was in possession of approximately 3.6 grams of methamphetamine, two 10mg pills of Diazepam and three Acetaminophen and Oxycodone hydrochloride pills. A police detective searched Cooley’s vehicle and found a clear plastic baggie containing approximately 7.2 grams of methamphetamine underneath the driver’s seat. The police detective also found a loaded Taurus .38-caliber revolver and a loaded Thompson Auto Ordinance .45-caliber handgun inside a green bag in the trunk.
Approximately 650 grams of methamphetamine, in total, was seized from Cooley during the investigation of this case.
Under federal statutes, Garrett, Cooley and Oliver are each subject to a mandatory minimum sentence of 20 years in federal prison without parole, up to a sentence of life in federal prison without parole, due to their prior drug convictions. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert and Special Assistant U.S. Attorney Jody Larison. It was investigated by the Drug Enforcement Administration, the Joplin, Mo., Police Department, the Jasper County Drug Task Force, the Jasper County, Mo., Sheriff’s Department and the Newton County, Mo., Sheriff’s Department.
Indictment Alleges Five Fraudsters Ran Scheme to Bilk BanksRead the Press Release
PHILADELPHIA - Eric Hudson, 21, Keith Larke, 36, Warren Smith, 51, Anwar Hameen, 33, all of Philadelphia, PA, and Fred Rush, 34, of Lansdale, PA, were charged by indictment, unsealed today, in a bank fraud scheme in which they attempted to deposit more than $1 million worth of bogus checks, announced United States Attorney Zane David Memeger. The defendants are charged with conspiracy, bank fraud, and numerous counts of aggravated identity theft.
According to the indictment, between July 20, 2007 and September 26, 2014, the defendants obtained the names, account numbers and personal identification numbers (PINs) of TD Bank customers and, with their co-conspirators, used that information to deposit bad checks into TD Bank accounts. They then attempted to quickly withdraw funds from those accounts through point of sale transactions and the purchase of United States postal money orders. It is further alleged that in order to accomplish the financial fraud, the defendants recruited and paid some account holders to open accounts at TD Bank and then turn over the account information so that they could use it to deposit the bad checks and make the withdrawals. The indictment alleges that during the course of the conspiracy, the defendants deposited bogus checks totaling more than $1,195,331.83 and fraudulently obtained more than $607,813.10 through ATM withdrawals and debit card purchases.
If convicted, each defendant faces a two year mandatory minimum sentence with the following maximum statutory sentences: Eric Hudson faces up to 77 years in prison; Keith Larke and Fred Rush each face up to 57 years in prison; Warren Smith and Anwar Hameen each face up to 55 years in prison; plus possible fines and supervised release.
The case was investigated by the United States Postal Inspection Service, and the United States Secret Service, with the assistance of the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Yvonne Osirim.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Humble Fugitive Sought on Charges of Production of Child PornographyRead the Press Release
HOUSTON – Moises Valdez, 41, of Humble, has been charged in a criminal complaint with production of child pornography, announced U.S. Attorney Kenneth Magidson. Agents were unable to arrest him today and a warrant remains outstanding for his arrest.
On Jan. 29, 2016, FBI agents executed a federal search warrant at the residence of Valdez. At the time of execution, FBI agents seized a laptop as well as a desktop computer located within a bedroom belonging to Valdez, according to the complaint.
On March 2, 2016, the complaint alleges that FBI agents began the forensic review of those items and found approximately 75 images and more than 180 videos of child pornography. Additionally, agents also allegedly found one particular video that appeared to be taken from a cellular phone which agents believed was produced by Valdez. Agents believed that this video was of an underage female who appeared to be under the age of 10, being vaginally penetrated by an adult male penis, according to the complaint. Also depicted in the video was an adult male’s fingers that can be seen spreading open the vagina of the child who appears to be unconscious throughout the sexual assault, according to the charges.
Agents were able to identify the bedroom as that of belonging to Valdez, according to the complaint.
On March 8, 2016, agents contacted and interviewed Valdez’ wife who allegedly identified the child depicted in the video as a minor female who would have been under the age of five at the time of the assault. The wife was further able to identify body parts of Valdez that were seen in the video, according to the complaint.
Valdez is considered a fugitive and a warrant remains outstanding for his arrest. If anyone has information about his whereabouts, they are asked to contact the FBI at 713-693-5000.
The charges are the result of investigation conducted by the FBI.
If convicted, Valdez faces a minimum of 15 and up to 30 years in federal prison.
This case, being prosecuted by Assistant U.S. Attorney Kimberly Ann Leo, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
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Hartford Man Sentenced to Federal Prison for Gang-Related Narcotics TraffickingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MICHAEL MORRISON, also known as “Nazzie,” 26, of Hartford, was sentenced yesterday by U.S. District Judge Jeffrey Alker Meyer in New Haven to 24 months of imprisonment, followed by one year of supervised release, for trafficking narcotics.
According to court documents and statements made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force into narcotics trafficking by members and associates of WestHell street gang, and gang-related violent activity. The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified Melkuan Scott, also known as “Young God,” “Mel,” “Young” and “YG,” as the leader of the West Hell street gang who, along with his associates, distributed crack cocaine in the Westland Street area of Hartford.
MORRISON regularly received “8-ball” quantities (3.5 grams) of crack cocaine from members of the conspiracy and sold the drug to others.
MORRISON was arrested on May 7, 2014. On April 17, 2015, he pleaded guilty to using a telephone to facilitate a narcotics trafficking offense. He has been detained since January 26, 2016, when his bond was revoked.
Twenty-five individuals were charged as a result of the investigation. One defendant was convicted after trial and 23 defendants pleaded guilty to various offenses. One defendant was shot and killed while his case was pending. Scott pleaded guilty and awaits sentencing.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
Harnett County Man Sentenced to 9 Years for Unlawful Possession of FirearmRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today Chief United States District Judge James C. Dever, III, sentenced SHANE JAMES SHIRLEY, 32, of Erwin, North Carolina, to 108 months’ imprisonment followed by 3 years’ supervised release.
On September 23, 2015, a Federal Grand Jury returned a Criminal Indictment charging SHIRLEY with unlawful possession of a firearm and ammunition while subject to a domestic violence protection order. On October 29, 2015, SHIRLEY pled guilty to the charge.
According to the investigation, on June 2, 2015, a domestic violence protection order was filed against SHIRLEY which prohibited him from possessing firearms and from having any contact with his wife. On June 21, 2015, the Harnett County Sheriff’s Office responded to a home invasion at a residence in Lillington. SHIRLEY, pointed an AR-15 style rifle through the window of a residence, and then kicked in the front door. SHIRLEY threatened and terrorized the victims inside the residence with the firearm. SHIRLEY fled the residence on foot and was later captured near the residence. Officers found a loaded 30-round magazine in the driveway and a bulletproof vest. SHIRLEY’S jacket, a loaded Smith and Wesson M&P 15 semi-automatic 5.56 caliber AR-15 style rifle with scope and magazine were located in the woods near the residence. SHIRLEY was located approximately 100 yards from the residence and was taken into custody.
The criminal investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Harnett County Sheriff’s Office, and the North Carolina State Highway Patrol. Assistant United States Attorney Jane J. Jackson handled the prosecution on behalf of the Eastern District of North Carolina.
Guatemalan Man Sentenced for Illegal Re-EntryRead the Press Release
A man who illegally re-entered the United States was sentenced today to time served.
Eriberto Nimamac-Tzoy, age 39, from Guatemala, received the prison term after a December 24, 2015, guilty plea to one count of illegal re-entry.
At the guilty plea, Nimamac-Tzoy admitted he had illegally re-entered United States from Guatemala after being deported on November 13, 2006. On November 23, 2015, Nimamace-Tzoy was encountered by ICE agents at the Hamilton County Jail where he was incarcerated for public intoxication.
Nimamac-Tzoy was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Nimamac-Tzoy was sentenced to time served. He must serve a 1-year term of supervised release.
Nimamac-Tzoy is being held in the United States Marshal’s custody until he can be transported to ICE custody.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-3052.
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Georgia Man Charged with Flying from Georgia to Minnesota to Have Sex with 13-Year-Old GirlRead the Press Release
United States Attorney Andrew M. Luger today announced a federal criminal complaint charging JOHN JAMES DENICOLA, 55, with traveling from the Atlanta, Ga., area to the Twin Cities for the purpose of having sex with a 13-year-old girl in Bloomington hotel. DENICOLA made an initial appearance today in U.S. District Court in St. Paul, Minn., before Magistrate Judge Hildy Bowbeer. A detention hearing is expected to be held on Friday, March 11, 2016.
“The sexual exploitation of children is a heinous crime,” said U.S. Attorney Luger. “According to the complaint, this 55-year-old defendant flew to Minnesota to have sex with an eighth grader. Working with our law enforcement partners, we are actively preventing predators from sexually exploiting vulnerable children and we will continue to prosecute those who attempt to engage in such activity to the fullest extent of the law.”
“With this arrest, HSI has taken a suspected pedophile off the street and has prevented the potential abuse of additional innocent victims,” said HSI St. Paul Acting Special Agent in Charge William Lowder. “The sexual abuse of children is an unconscionable crime that will not be tolerated. HSI will use all the resources at its disposal to combat this reprehensible behavior and seek justice for the victims.”
According to the criminal complaint and documents filed in court, on February 26, 2016, DENICOLA, using the screen name “Johnnyman,” initiated a conversation on teenchat.com with an undercover law enforcement officer who DENICOLA believed was a 13-year-old girl. During the conversation, DENICOLA asked the undercover agent questions of a sexual nature, sent a picture of himself to the undercover agent, and told the agent that he had previously traveled to Nebraska to “meet a girl.” DENICOLA also told the agent that he would try to take time off from work to travel to the Twin Cities on March 7, 2016, to see the agent.
According to the criminal complaint and documents filed in court, DENICOLA repeatedly expressed concern to the undercover agent that “she” was a law enforcement officer. During the communications, the undercover agent repeatedly stated that “she” was a 13-year-old girl and an eighth grader. During the Kik Messenger conversation, DENICOLA asked numerous questions about the undercover agent’s sexual experience and also indicated various sexual acts in which he wished to engage with “her.” The defendant also indicated to the undercover agent that he had previously had sex with three or four other young girls on separate occasions.
According to the criminal complaint and documents filed in court, DENICOLA and the undercover agent continued to message one another using Kik Messenger. On February 29, 2016, DENICOLA sent the undercover agent the itinerary for his upcoming trip, which indicated that DENICOLA would fly on March 7, 2016, from Atlanta to Minneapolis/St. Paul. The defendant indicated to the undercover agent that he would bring a video recording device and that he had booked a room at the Park Plaza Hotel in Bloomington, Minn.
According to the criminal complaint and documents filed in court, upon arrival in Minnesota, DENICOLA went to a local Target and bought condoms and candles. He also went to a local florist and bought several bouquets of flowers and helium balloons that read “love you,” or words to that effect. DENICOLA was arrested inside the hotel room he had rented for his planned rendezvous. A video camera was found in DENICOLA’s room at the time of his arrest.
This case is the result of an investigation conducted by Homeland Security Investigations (HSI) Twin Cities, HSI Atlanta, HSI Laredo and HSI San Jose.
This case is being prosecuted by Assistant United States Attorney Carol M. Kayser.
Defendant Information:
JOHN JAMES DENICOLA, 55
Suwanee, Ga.
Charges:
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Traveling with the intent to engage in illicit sexual conduct, 1 count
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Attempted coercion and enticement, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the criminal complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
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Four sentenced for drug trafficking offensesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Four individuals were sentenced today in federal court in Clarksburg for drug trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Daleron K. Stewart, 26, of Pittsburgh, Pennsylvania, and Darrell Jeffery Mar, 21, of Verona, Pennsylvania, conspired to possess and sell heroin in Harrison and Monongalia Counties throughout 2014. They each pled guilty in November 2015 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin.” Stewart was sentenced today to 30 months in prison and Mar was sentenced today to 21 months in prison.
Miranda D. Swiger, 21, of Longwood, Florida, was discovered in possession of heroin in January 2015 in Taylor County, West Virginia. She pled guilty in November 2015 to one count of “Possession with Intent to Distribute Heroin – Aiding and Abetting.” She was sentenced today to 24 months in prison.James Michael Conley, 38, of Clarksburg, sold morphine in September 2014 near Pierpont Community and Technical College in Harrison County, West Virginia. He pled guilty in November 2015 to one count of “Distribution of Morphine within 1,000 feet of a Protected Location.” He was sentenced today to 14 months in prison.
Assistant U.S. Attorneys Shawn Adkins and Stephen Warner prosecuted Conley, Assistant U.S. Attorney Zelda Wesley and former Assistant U.S. Attorney Shawn Morgan prosecuted Swiger, and Assistant U.S. Attorney Andrew Cogar prosecuted Mar and Stewart on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated each of the defendants.
U.S. District Judge Irene M. Keeley presided.
Four Sentenced to Prison for Their Involvement in Methamphetamine Trafficking Ring Operating in Henderson County AreaRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Max O. Cogburn, Jr. today sentenced four men to prison terms ranging from 63 months to 39 months for their involvement in a methamphetamine trafficking ring operating in the Henderson county area, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined in making today’s announcement by Daniel R. Salter, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office and Sheriff Charles S. McDonald of the Henderson County Sheriff’s Office.
Judge Cogburn sentenced Nahuan Solano, 27, of Hendersonville, N.C. to 63 months in prison followed by five years of supervised release; Eric Lee Garber, 41, of Saluda, N.C. to 60 months in prison followed by four years of supervised release; Benjamin Nelson, 31, of Hendersonville, to 57 months in prison followed by five years of supervised release; and Allan Collado-Raudez, 23, of Asheville, N.C. to 39 months in prison followed by four years of supervised release. They each pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute methamphetamine.
According to filed court documents and today’s sentencing hearing, from about May 2014 to May 2015, the four men were involved in a drug trafficking conspiracy, responsible for distributing significant quantities of methamphetamine in Henderson county and surrounding areas. According to court records, Maria Del Ruiz-Zazueta was the leader of the drug ring and was assisted by her daughter, Stephanie Alvarenga, in supplying the methamphetamine to their co-conspirators. Solano was a methamphetamine trafficker and acted as a runner for Ruiz-Zazueta and Alvarenga. According to court records, the ring’s customers included area methamphetamine traffickers Garber and Nelson. Ruiz-Zazueta and other members of the ring utilized Antonio Barbosa as an alternate source of supply, who was assisted by Collado-Raudez.
Court records show that, on or about May 4, 2015, law enforcement in Oklahoma conducted a traffic stop of the vehicle in which Alvarenga was a passenger. According to court records, Alvarenga and the driver of the vehicle were headed from California to North Carolina, to meet Alvarenga’s mother. During the traffic stop, law enforcement seized nearly 10 pounds of methamphetamine from a backpack located in the trunk of the car.
The four men sentenced today are in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
Four others, Maria Del Ruiz-Zazueta, Stephanie Alvarenga, Daniel Alfaro, and Antonio Barbosa have also entered guilty pleas for their involvement in the drug conspiracy and are currently awaiting sentencing.
Two more conspirators, Wade Henderson and Edwardo Lopez are currently charged with one count of conspiracy to distribute and to possess with intent to distribute methamphetamine and one count of possession with intent to distribute methamphetamine.
The investigation was handled by the DEA and the Henderson County Sheriff’s Office. Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s office in Asheville is in charge of the prosecution.
Former Topeka Store Clerk Sentenced in Armed Robbery of ATM AttendantRead the Press Release
TOPEKA, KAN. – A former Topeka store clerk was sentenced Tuesday to 24 months in federal prison for helping to plan an armed robbery of a man whose job was to stock ATMs with cash, U.S. Attorney Barry Grissom said.
Ahmad Salim Salti, 21, Topeka, Kan., pleaded guilty to one count of conspiracy to commit robbery. In his plea, he admitted the crime occurred while he was a clerk at the Low Cost Plus convenience store at 3101 S.E. 6th in Topeka. On Sept. 16, 2014, Topeka police were called when a masked gunman brandishing a firearm entered the store just as the victim was beginning to fill an ATM. The gunman – later identified as Pattrick J. Towner, assaulted the victim and took the money. He also took the keys to the victim’s van and escaped in the vehicle.
Investigators learned that Salti had helped to plan the robbery. Salti gave Towner the date and time the victim would come to fill the ATM.
Co-defendant Pattrick J. Towner has pleaded guilty and is awaiting sentencing.
Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Former Office Manager of Louisville, Kentucky, Company Sentenced to 18 Months for Embezzling $800,000Read the Press Release
LOUISVILLE, Ky. – The former officer manager of a Louisville, Kentucky, company was sentenced yesterday in United States District Court, by District Judge Greg N. Stivers, to 18 months in prison, without the opportunity of parole, for embezzling $800,000 announced United States Attorney John E. Kuhn, Jr.
Paige L. Talley, 55, of Louisville, pleaded guilty to a single charge of wire fraud on November 24, 2015. Talley admitted to submitting fraudulent travel reimbursement requests and payroll “miscellaneous adjustments” while employed as human resources and office manager at Luvata Electrofin, Inc. (LEI).
Testimony during sentencing supported statements made by Talley that she suffered from being a battered wife of an alcoholic and from a gambling addiction.
According to the plea agreement, between January 2009 and March 2014, Talley submitted fraudulent reimbursement requests for bogus travel expenses to LEI, resulting in excessive reimbursements.
Further between March 2013 and March 2014, Tally entered and submitted fraudulent “miscellaneous adjustments” to LEI payroll checks resulting in payroll overpayments.
Talley paid $20,000 in restitution today during sentencing and was ordered by Judge Stivers to pay the full restitution order of $800,000.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the United States Secret Service and the Louisville Metro Police Department.
Former Landover Company Employee Admits to Fraudulently Obtaining Business Expenses for Fictitious Client DevelopmentRead the Press Release
Greenbelt, Maryland – James Charlton Davis, III, age 57, of Anderson, South Carolina, pleaded guilty today to wire fraud arising from an elaborate scheme to defraud his employer of at least $240,000.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, from May 7, 2012 to March 13, 2013, Davis was the director of the electrical division for a small company in Landover, Maryland that provided construction and preconstruction services to federal agencies. When applying for his job, Davis falsely represented that he had earned a Ph.D. from the Massachusetts Institute of Technology (MIT), when in fact Davis had not attended MIT. Part of his duties as director was to develop new business for the company.
Davis falsely told company executives that he knew executives at several corporate entities, and that he was pursuing contracts with these corporate entities. Davis created and falsely registered online domain names that closely resembled legitimate domain names associated with several of these corporate entities. Davis used these falsely-registered domains to send emails to himself and others at his employer to legitimize the fictional contracts he claimed to obtain on his employer’s behalf. Davis also assumed the identity of an individual who investigation revealed was a contractor with a technology company. Davis had previous interactions with this individual during his previous employment.
In July 2012, Davis told his employer that he had procured contracts with the technology company, headquartered in San Jose, California, to construct cell towers in Alpharetta, Georgia. Davis communicated with himself via email using the stolen identity of the individual, in connection with fictitious contracts with the tech company, and with other corporate entities for supposed upgrades to their data centers. Davis represented that he was working with this individual to perform these contracts. For several of the contracts, Davis sent communications to himself and/or others at his employer, or caused others at his employer’s company to send emails to various personas he had created—some of whom appear to refer to actual employees of the corporate entities with whom Davis claimed to be negotiating contracts.
Related to his supposed efforts to obtain and perform contracts with these corporate entities, Davis traveled extensively and incurred bills for expensive dinners and accommodations. Davis sought and obtained reimbursement from his employer for travel, meals, equipment and labor costs. In fact, however, Davis did not pursue any legitimate business and did not have interactions with any of these corporate entities on behalf of his employer.
Because of Davis’s fraudulent emails, his employer believed that demand for its services had grown exponentially. As a result, his employer stopped pursuing additional contracts, sought larger lines of credit and hired additional personnel.
In March of 2013, his employer learned of the fraud scheme when none of the invoices being submitted to these corporate “clients” - the fictional contacts at these companies - were being paid. Davis’s employer started contacting these “clients” independently, and they all confirmed that they had no business dealings with Davis’s employer or with Davis.
Davis has agreed to forfeit and pay restitution of $240,000, the minimum amount of loss to his employer company.
Davis and the government have agreed that if the Court accepts the plea agreement, Davis will be sentenced to between 57 months and seven years in prison. U.S. District Judge Theodore D. Chuang has scheduled sentencing for June 2, 2016 at 2:00 p.m.
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 the FBI for its work in the investigation and thanked Assistant U.S. Attorneys Thomas M. Sullivan and Ray D. McKenzie, who are prosecuting the case.
Former Investment Adviser at Global Bank Sentenced in Manhattan Federal Court to 5 Years in Prison for $20 Millon Scheme to Defraud ClientsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that MICHAEL OPPENHEIM was sentenced today to five years in prison and over $20 million in forfeiture for using his position as an investment adviser at JP Morgan Chase & Co. (“JPMC”) to defraud multiple JPMC clients out of millions of dollars over the course of seven years. Among other false and misleading statements, OPPENHEIM lied to his clients by claiming to have invested their money in low-risk municipal bonds and sending them doctored account statements purportedly reflecting those investments and profits earned. In reality, OPPENHEIM used the clients’ money for his own personal benefit and, in certain circumstances, to pay back other clients. OPPENHEIM pled guilty in November 2015 before United States District Judge Analisa Torres, who imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Michael Oppenheim’s clients placed not just their money but their trust in their financial adviser, only to have Oppenheim use their investments as his cash cow – to the tune of more than $20 million. Thanks to the FBI’s investigation, Oppenheim’s business of siphoning his clients’ money is over.”
According to the Complaint, the Information, and other statements made in open court:
From at least March 2008 to March 2015, OPPENHEIM, a former investment adviser at JPMC, a global financial institution based in New York City, violated the trust of his clients by converting to his own use and benefit at least $20 million belonging to at least eight clients whose investment advisory accounts at JPMC he purported to manage. OPPENHEIM did not invest these clients’ money in low-risk municipal bonds at JPMC as promised. Instead, after taking a client’s money, OPPENHEIM, without the client’s knowledge, used the client’s money to obtain cashiers’ checks purporting to be remitted by the clients. OPPENHEIM then deposited the cashiers’ checks in at least three online brokerage accounts OPPENHEIM controlled at financial institutions other than JPMC. OPPENHEIM used clients’ funds for his own personal use, including on-line trading in accounts he controlled, and to pay for personal expenses such as gambling and trading debts, a home loan, and credit card bills, including for luxury clothing and travel.
In an effort to cover up his fraudulent scheme, OPPENHEIM provided some clients with fraudulent bank account statements. The purported bank account statements reflected bonds held by other clients of JPMC, but OPPENHEIM caused his clients’ names to appear on the statements in order to give the false impression that OPPENHEIM had purchased bonds on behalf of those clients, as he had promised. In a further effort to conceal his fraud, on several occasions, and without his clients’ consent or authority, OPPENHEIM withdrew funds from one client and deposited those funds into the account of another client.
OPPENHEIM continued the fraud until he was terminated by JPMC in March 2015.
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In addition to the prison sentence, OPPENHEIM, 49, of Livingston, New Jersey, was sentenced to three years of supervised release, and ordered to forfeit $20,185,225 to the United States. In connection with his plea agreement, OPPENHEIM also agreed to pay restitution of more than $27 million to the victims of his crime. A final restitution order will be submitted to the court by June 6, 2016.
The U.S. Securities and Exchange Commission (“SEC”) has pending civil charges against OPPENHEIM in a separate action.
Mr. Bharara praised the work of the FBI, and thanked the SEC and FINRA for their assistance.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit and the Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Janis Echenberg and Brooke Cucinella are in charge of the prosecution.
Former East Windsor Resident Pleads Guilty to Federal Explosives OffenseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PAUL GOTTA, 58, pleaded guilty today in Hartford federal court to one count of knowingly and willfully distributing an explosive material to an individual who was under 21 years of age.
According to court documents and statements made in court, in November 2012, GOTTA aided an individual who was 17 years old in the purchase of thousands of rounds of handgun ammunition. In addition, on two occasions in December 2012, GOTTA purchased two pounds of explosives powder at Riverview Gun Sales in East Windsor and distributed it to the same juvenile.
At time of the offense, GOTTA was a Catholic priest residing at the rectory of St. Philip Church in East Windsor.
On January 30, 2014, a grand jury in Hartford returned a six-count indictment charging GOTTA with aiding and abetting the unlawful transport of a firearm in interstate commerce, aiding and abetting the possession of a handgun by a juvenile, aiding and abetting the possession of ammunition by a juvenile, distribution of explosive material to an individual under the age of 21, aiding and abetting the attempted manufacture of a pipe bomb, and obstruction of justice.
GOTTA pleaded guilty to Count Four of the indictment.
GOTTA is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on May 19, 2016, at which time he faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
GOTTA was arrested on July 19, 2013, and is released on bond.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Windsor Police Department, and is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
Former CEO of Wellcity, Inc. Pleads Guilty to Defrauding InvestorsRead the Press Release
George David George, 61, of Franklin, Tenn., pleaded guilty today in connection with a multimillion dollar investment scheme, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. In a hearing before U.S. District Court Chief Judge Kevin H. Sharp, George pleaded guilty to securities fraud, mail fraud, wire fraud and money laundering.
“This defendant cheated dozens of investors out of millions of dollars based on lies and deception,” said U.S. Attorney David Rivera. “This office will continue to target fraudulent investment scams and to prosecute those who defraud investors for their own personal gain.”
During today’s hearing, George acknowledged being the founder and CEO of WellCity, Inc., a company based in Brentwood, Tenn. that operated a social network devoted to wellness. George admitted that he solicited millions of dollars from WellCity investors by making misrepresentations regarding the revenue and assets of WellCity, misrepresentations regarding collateral to secure investors’ loans, and misrepresentations regarding the status of a supposed initial public offering. George also admitted that he falsely promised investors that their investments were guaranteed and involved no risk. George further acknowledged that he continued to offer supposed shares in WellCity stock even after the Tennessee Securities Division of the Department of Commerce and Insurance issued a Cease & Desist Order prohibiting him from doing so.
George also admitted using funds that had been provided by investors for his personal use, including depositing funds with Gold Strike casino and making massive cash withdrawals.
“The nation's economy is increasingly dependent on the success and integrity of the securities and commodities markets, and financial investors should not have to fear being deceived in an already risk-filled industry,” said A Todd McCall, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation. “This plea sends the message that the FBI and its partners will diligently investigate criminal activity involving the deception of investors or the manipulation of financial markets.”
"Investment fraud is like a 'house of cards.' The underlying structure will eventually fall apart and leaves many investors in financial ruin," said Tracey D. Montaño, Special Agent in Charge of the IRS-Criminal Investigation, Nashville Field Office. "IRS-Criminal Investigation is committed to investigating this type of fraud in an effort to protect the financial well-being of the American public. We will continue to work with our law enforcement partners to bring this investigation to a thorough and complete conclusion."
George faces up to 20 years in prison on each fraud count and up to 10 years on the money laundering count. He also faces a criminal fine of up to $5,000,000 and forfeiture of criminal proceeds, and he will be ordered to pay more than $2.3 million in restitution to his victims. George will be sentenced by Chief Judge Sharp on June 10, 2016. His sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service - Criminal Investigation, and the United States Postal Inspection Service, and the Williamson County Sheriff’s Department, with assistance from the Tennessee Department of Commerce and Insurance. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
Former Airline Employee Sentenced in Logan Airport StingRead the Press Release
BOSTON – A former Delta Airlines employee was sentenced today for smuggling thousands of dollars of what he believed to be drug money past security checkpoints at Boston’s Logan International Airport.
Dino Dunkley, 29, of Mattapan, was sentenced today by U.S. District Court Senior Judge Rya W. Zobel to two years in prison, two years of supervised release and ordered to pay a fine of $3,000. Dunkley previously pleaded guilty to conspiracy to defraud the United States and two counts of illegally entering an airport area with intent to commit a felony.
A federal undercover operation was initiated at Logan Airport in August 2012, after federal agents discovered lapses in airport security and the potential for airline employees to smuggle contraband around the employee security system. Dunkley was one of five individuals identified as a potential smuggler.
On two occasions between October 2012 and December 2012, Dunkley used airport security credentials to evade Transportation Security Administration checkpoints and smuggled $100,000, which was represented to be drug proceeds, from a non-secure airport area to the secured passenger departure area of Logan. Dunkley was paid $3,000 as compensation from a cooperating witness. Unbeknownst to Dunkley, the cash smuggling plan was part of an undercover sting operation.
Four other airport workers, all former JetBlue Airways employees, identified in the investigation were previously sentenced for similar offenses. In January 2015, Rupert Crossley was sentenced to two years in prison and Anthony Trotman was sentenced to 14 months in prison. Eric Vick was sentenced in May 2015 to 18 months in prison. Alvin Leacock was sentenced in December 2015 to 18 months in prison.
U.S. Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Bob Allison, Federal Security Director of the Transportation Security Administration; Dwain Troutt, Special Agent in Charge of the Federal Air Marshal Service; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The U.S. Attorney’s Office would also like to acknowledge the assistance and cooperation of the Massachusetts Port Authority, JetBlue Airways Corporate Security and Delta Airlines. The case was prosecuted by Assistant U.S. Attorneys Carlos A. López, Maxim Grinberg, and Dustin Chao of Ortiz’s Criminal Division.
Five Individuals Indicted in March Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the March 2016 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
CHARLES ALBERT GRINDLE, age 42, of Muskogee, Oklahoma
Failure To Register As Sex Offender
The Indictment alleges that from in or October 2014 to on or about January 26, 2016, in the Eastern District of Oklahoma, and elsewhere, CHARLES ALBERT GRINDLE, defendant herein, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of Texas on or about August 25, 1997, for the felony offense of Aggravated Sexual Assault to a Child, traveled in interstate commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
The charge arose from an investigation by the United States Marshals Service. The charge is in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3), punishable not more than 10 years imprisonment; up to a $250,000.00 fine or both.
Assistant United States Attorney Edward Snow
CHARLES BLAIR SMALLWOOD, age 24, of Durant, Oklahoma
Theft By Officers Or Employees Of Gaming Establishment On Indian Lands
The Indictment alleges that from in or about December 2014, to on or about August 17, 2015, in the Eastern District of Oklahoma, CHARLES BLAIR SMALLWOOD, defendant herein, while an employee of the Choctaw Nation Casino and Resort, in Indian Country did embezzle, abstract, purloin, willfully misapply, and take and carry away with intent to steal any moneys, funds, assets, or other property in excess of $1,000.00 belonging to the Choctaw Nation Casino and Resort, an Indian gaming establishment operated by the Choctaw Nation of Oklahoma pursuant to an ordinance or resolution approved by the National Indian Gaming Commission.
The charges arose from an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation. The charge is in violation of Title 18, United States Code, Section 1168(b), punishable by not more than 20 years imprisonment; up to a $1,000,000.00 fine or both.
Assistant United States Attorney Kristin Harrington
JADE LaRUE OBREGON, age 38, of Sallisaw, Oklahoma
Wire Fraud
Mail Fraud
Theft Of Federal Program FundsThe Indictment alleges that on or about December 29, 2010, through January 28, 2013, in the Eastern District of Oklahoma, JADE LaRUE OBREGON, defendant herein, knowingly, and with the intent to defraud, devised and executed a scheme to defraud Sequoyah Memorial Hospital by ordering excess Durable Medical Equipment, including diabetic test strips, and selling the same to outside customers without Sequoyah Memorial Hospital’s approval and did so with a PayPal debit card that was ordered on May 12, 2012, by the defendant, through the mail and directed the card to be delivered to her address. The Indictment further alleges that on or about January 1, 2012, and continuing through December 31, 2013, in the Eastern District of Oklahoma and elsewhere, the defendant, being an agent of Sequoyah Memorial Hospital, said organization receiving in the one year period beginning January 1, 2012, benefits in excess of $10,000 from federal health care programs, embezzled, stole, obtained by fraud, and knowingly converted to the use of a person not the rightful owner, property worth at least $5,000 and owned by such organization, that is diabetic test strips.
The charges arose from an investigation by the Federal Bureau of Investigation. The charges are in violation of Title 18, United States Code, Section 1343, punishable by up to 20 years imprisonment, up to a $250,000.00 fine or both; Title 18, United States Code, Section 666(a)(1)(A), punishable by up to 10 years imprisonment, up to a $250,000.00 fine or both and Title 18, United States Code, Section 1341, punishable by up to 20 years imprisonment, up to $250,000.00 fine or both.
Assistant United States Attorney Melody Nelson
CHARLES RAY BENEFIELD, age 32, of Muskogee, Oklahoma
Felon In Possession Of Firearm
Felon In Possession Of AmmunitionThe Indictment alleges that on or about December 30, 2015, within the Eastern District of Oklahoma, the defendant, CHARLES RAY BENEFIELD, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm and ammunition, which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Federal Bureau of Investigation, Violent Crime Task Force. The charge is in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Tim Hammer
EDWARD ROBERT SALDANA II, age 29, of Muldrow, Oklahoma
Felon In Possession Of Firearm
Possession Of Methamphetamine And Oxycodone With Intent To Distribute
Possession Of Firearm In Furtherence Of A Drug Trafficking CrimeThe Superseding Indictment alleges that on or about December 10, 2015 and January 5, 2016, within the Eastern District of Oklahoma, the defendant, EDWARD ROBERT SALDANA II, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, firearms, which had been shipped and transported in interstate commerce. The Indictment further alleges that on or about December 10, 2015, in the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute a mixture or substance containing a detectable amount of methamphetamine and a mixture or substance containing a detectable amount of Oxycodone, Schedule II controlled substances and did so while possessing a firearm. It’s further alleged that on or about January 5, 2016, in the Eastern District of Oklahoma, the defendant knowingly and intentionally possess with intent to distribute five (5) grams or more of methamphetamine (actual), a Schedule II controlled substance.
The charges arose from an investigation by the Sallisaw Police Department, the Sequoyah County Sheriff’s Department and the Drug Enforcement Administration. The charges are in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both; Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C) and 841(b)(1)(B)(viii), punishable by not less than 5 years or more than 40 years imprisonment, a fine of up to $5,000,000.00 or both and Title 18, United States Code, Section 924(c), punishable by not less than 25 years imprisonment, to be served consecutively, up to a $250,000.00 fine or both.
Assistant United States Attorney Dean Burris
Federal Jury Convicts Crosby County Man on Firearms OffenseRead the Press Release
LUBBOCK, Texas — Following a day and a half trial before Senior U.S. District Judge Sam R. Cummings, a federal jury has convicted Shannon Dale Smith, of Crosbyton, Texas, on a federal firearm offense related to his attempt to extort more than $500,000 from a Crosby County man, announced U.S. Attorney John Parker of the Northern District of Texas.
Smith, 46, pleaded guilty in January 2015 to one count of interstate communications with the intent to extort. He faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine on the extortion conviction. Today, he was convicted of one count of possessing firearms in furtherance of a crime of violence, for which he faces a minimum mandatory penalty of five years in federal prison, a statutory maximum of life in prison and a $250,000 fine. A sentencing date was not set; Smith has been in custody since his arrest on October 29, 2015.
The government presented evidence during trial that on October 29, 2015, Smith possessed three firearms − a Glock .40 caliber semi-automatic pistol, a Rock River Arms .223 caliber semi-automatic rifle, and a Ruger .22 caliber rifle − in furtherance of transmitting communications to Crosbyton resident, Nathan Royce Boardman, threatening to kidnap and injure Boardman, his wife, his daughters, and his granddaughters.
The government presented evidence that Smith was carrying the Glock, .40 caliber pistol when he went to the drop location to see if Boardman had paid the extortion money. The government also presented evidence that Smith had the .223 caliber semi-automatic rifle and the .22 caliber rifle in his pickup truck as part of hunting ruse in case he was stopped by law enforcement.
According to plea documents filed in the case, on Tuesday morning, October 27, 2015, Smith called Boardman and left a message on his answering machine that said: “We are watching you, there is a note on your north door.”
Boardman found the note that stated: “Follow these Instructions and no one will get Hurt. We Have a man watching your daughter. We Have a man watching your Granddaughter. We Have a man watching you and your wife. We are monitering [sic] your home and cell phone. If you call the police, we will know and someone will be taken from you. If you choose not to participate, someone will be taken from you. You have till Thursday at 9pm to put $525,000 in cash and or gold coins in a bag, duffel style. we [sic] will call you with further instructions. We are watching you. Do what you’re told and no one will be Hurt”.
On the morning of October 29, Boardman received another phone call from Smith in which Smith advised him that he had 14 hours left to get the money or else he would see what Boardman’s granddaughter looked like naked and correctly identified Boardman’s granddaughter by her first name. That evening, Smith called and left a message advising they’d better answer the phone or if they didn’t, it would be the last thing they would remember.
At approximately 6:44 p.m. that evening, Smith called Boardman and provided instructions to drop the extortion money. A short time later, Smith called Boardman again to confirm he had the correct instructions and advised Boardman if “we get a GPS tracker or a dye pack, there’ll be hell to pay.”
At approximately 8:55 p.m., that evening, law enforcement officers departed Boardman’s residence using Boardman’s vehicle and proceeded to the location Smith provided and threw a duffel bag in the weeds next to the boiler, as instructed. Law enforcement officers returned to Boardman’s residence in Boardman’s vehicle. Law enforcement identified a 2011 white GMC pickup truck in the area of the drop location, and they identified the two individuals in the truck as Smith and his minor son. At the time of his arrest, Smith had a semi-automatic pistol on his person.
The FBI, Texas Rangers, Texas Department of Public Safety, Criminal Investigations Division, Crosby County Sheriff’s Office, and Crosbyton Police Department investigated the case. Assistant U.S. Attorney Jeffrey Haag is in charge of the prosecution.
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Federal Grand Jury in Greenville Returns IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following:
Spartanburg Resident Charged with Wire Fraud
Claus C. Foerster, age 55, of Spartanburg, South Carolina, was charged in a 5-count indictment with wire fraud, a violation of Title 18, United States Code, Section 1343. The maximum penalty Foerster could receive for each count is 20 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the United States Secret Service and is assigned to Assistant United States Attorney David C. Stephens of the Greenville office for prosecution.Greenville Resident Indicted for Fraud by Producing Counterfeit Access Devices
Thomas Geter, age 41, of Greenville, South Carolina, was charged in a 1-count indictment with Access Device Fraud, a violation of Title 18, United States Code, Section 1029(a)(4). The maximum penalty Geter could receive is 15 years imprisonment and a maximum fine of $250,000. The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agents and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.Belton Resident Indicted for Possession of Child Pornography
Kenneth Allen McCall, age 28, of Belton, South Carolina, was charged in a 1-count indictment with possession of child pornography, a violation of Title 18, United States Code, Section 2252A(a)(5)(B). The maximum penalty McCall could receive is 20 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the United States Probation Office and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution. This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Fayetteville Man Sentenced to 8 Years for Unlawful Possession of FirearmRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today Chief United States District Judge James C. Dever, III, sentenced TIRREIL MARIO MAYNOR, 33, of Fayetteville, North Carolina, to 96 months’ imprisonment followed by 3 years’ supervised release.
On July 21, 2015, a Federal Grand Jury returned a Criminal Indictment charging MAYNOR with unlawful possession of a firearm by a convicted felon. On October 29, 2015, MAYNOR pled guilty to the charge.
According to the investigation, on September 26, 2014, the Cumberland County Sheriff’s Office was dispatched to a residence on Ireland Drive regarding the discharge of a firearm and a robbery. The investigation revealed that MAYNOR, a convicted felon, discharged a firearm inside the residence and stole a television from the residence. Earlier in the evening, MAYNOR fired a gun at another location and threatened to kill several individuals. MAYNOR fled the Ireland Drive residence and proceeded to drive down Ireland Drive and shot the back window out of the vehicle in front of him. On September 29, 2014, MAYNOR was arrested and found in possession of a loaded .25 caliber semi-automatic pistol. Ballistics linked the firearm to the various shootings that took place on September 26, 2014.
The criminal investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Cumberland County Sheriff’s Office, and the Fayetteville Police Department. Assistant United States Attorney Jane J. Jackson handled the prosecution on behalf of the Eastern District of North Carolina.
FIFA Match Agent Pleads Guilty to Corruption ChargesRead the Press Release
Earlier today in federal court in Brooklyn, Miguel Trujillo, a FIFA match agent and soccer consultant, pleaded guilty to one count of money laundering conspiracy and two counts of wire fraud conspiracy in connection with his participation in multiple schemes to bribe soccer officials. Trujillo also pleaded guilty to one count of filing a false tax return under penalty of perjury and agreed to forfeit $495,000. Today’s plea proceeding took place before United States District Judge Raymond J. Dearie.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego G. Rodriguez, Assistant Director-in-Charge, FBI, New York Field Office; and Acting Special Agent in Charge Anthony J. Orlando, IRS Criminal Investigation, Los Angeles Field Office.
As alleged in the criminal information to which he pleaded guilty, Trujillo, a citizen of Colombia and a U.S. legal permanent resident, was a Florida-based soccer consultant and a match agent licensed by FIFA to negotiate and arrange soccer matches between FIFA member associations. Starting in approximately 2008 and acting variously on behalf of multiple sports marketing companies and his own soccer business, Trujillo paid hundreds of thousands of dollars in bribes to high-ranking officials of FIFA, CONCACAF, and four soccer federations in Central America and the Caribbean in furtherance of multiple schemes involving media and marketing contracts and international friendly matches.
The guilty plea announced today is part of an investigation into corruption in international soccer being led by the U.S. Attorney’s Office for the Eastern District of New York, the FBI New York Field Office, and the IRS-CI Los Angeles Field Office. The prosecutors in Brooklyn are receiving considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, the Asset Forfeiture and Money Laundering Section, and the Fraud Section, as well as from INTERPOL Washington.
Assistant U.S. Attorneys Evan M. Norris, Amanda Hector, Paul Tuchmann, Nadia Shihata, Keith D. Edelman, and Brian D. Morris of the Eastern District of New York are in charge of today’s prosecution.
The government’s investigation is ongoing.
The Defendant:
MIGUEL TRUJILLO
Age: 65
Nationality: ColombiaE.D.N.Y. Docket No. 16 CR 108
Deported Jamaican Charged with Illegally Re-entering United StatesRead the Press Release
PITTSBURGH – An individual found by the U.S. Marshals, with assistance from the Homeland Security Investigations and Immigration and Customs Enforcement, has been indicted by a federal grand jury in Pittsburgh on charges of Illegal Re-Entry into the United States after Deportation, United States Attorney David J. Hickton announced today.
The one-count indictment named Dwayne Lawrence Facey, aka Dwayne Brown; Kimarley Williams; Damien Weatherspoon; Dameon Weatherspoon; Euvin Hunter; Roy Facey; “Euvin,” 40, formerly of Jamaica.
According to the indictment, Facey, an alien, who was removed from the United States by U.S. Immigration and Customs Enforcement on Sept. 22, 2000, and again on Sept. 21, 2006, was found on Aug. 5, 2015, by law enforcement authorities in Pittsburgh, Pa.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Homeland Security Investigations, Immigration and Customs Enforcement, and U.S. Marshals Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Deming Resident Sentenced to Ten Years in Federal Prison for Kidnapping and Firearms ConvictionRead the Press Release
ALBUQUERQUE – This morning a U.S. District Court Judge sitting in Las Cruces, N.M., sentenced Jessie Hopper, Jr., 31, of Deming, N.M., to120 months in prison for his conviction on conspiracy, kidnapping and firearms charges. He will be on supervised release for three years after completing his prison sentence.
His co-defendants Jessie Hopper, Sr., 55, and Polly Hopper, 62, of Deming, N.M., previously were sentenced in Oct. 2015, to lengthy prison terms for their convictions on conspiracy, kidnapping and firearms charges. Hopper, Sr. was sentenced to 366 months (30.5 years) in prison followed by five years of supervised release, while Polly Hopper, was sentenced to 292 months (24.3 years) in prison followed by five years of supervised release.
The sentences imposed on the Hoppers were announced by U.S. Attorney Damon P. Martinez, 6th Judicial District Attorney Francesca Martinez-Estevez, Special Agent Terry Wade of the Albuquerque Division of the FBI, Special Agent in Charge Thomas G. Atteberry of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, New Mexico State Police Chief Pete Kassetas and Luna County Sheriff Jonathon Mooradian.
The three Hoppers were arrested in June 2014, on a federal criminal complaint charging them with kidnapping and firearms charges. They subsequently were charged with conspiracy and kidnapping in a six-count indictment filed in May. 2014. The indictment also charged Hopper, Sr., and Hopper Jr., with brandishing a firearm in relation to a crime of violence, being felons in possession of firearms, and unlawfully possessing a sawed-off shotgun. Hopper, Jr., entered a guilty plea to the five charges against him on Nov. 21, 2014.
Hopper, Sr., and Polly Hopper elected to go to trial, and on Feb. 27, 2015, a federal jury returned a verdict finding the two guilty on all charges against them after a five-day trial. The evidence at trial established that Hopper, Jr., and Hopper, Sr., kidnapped the victim in Hot Springs, Ark., on May 8, 2014, with the assistance of Polly Hopper. Hopper, Jr., handcuffed the victim and a firearm was brandished at the victim to force her to comply with Hopper, Jr.’s demands, including a demand that she telephone family members to assure them that she was voluntarily leaving Arkansas with Hopper, Jr. On May 8 and 9, 2014, the defendants drove the victim from Arkansas to the defendants’ residence in Deming, where Hopper, Jr., and Hopper Sr., sexually assaulted the victim several times.
The three defendants initially were arrested by the New Mexico State Police on state charges on May 10, 2014. They remained in state custody until they were transferred to federal custody on May 16, 2014, to face the charges in this federal case. The state charges, which were filed by the 6th Judicial District Attorney’s Office for the State of New Mexico, were dismissed in favor of federal prosecution.
This case was investigated by the Las Cruces office of the FBI, the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Mexico State Police and the Luna County Sheriff’s Office, with assistance from the 6th Judicial District Attorney’s Office for the State of New Mexico. The FBI in Little Rock, Ark., the Garland County (Arkansas) Sheriff’s Office, and the U.S. Attorney’s Office for the Western District of Arkansas also assisted in the investigation. The case was prosecuted by Assistant U.S. Attorneys Randy M. Castellano and Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
The Hoppers were prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders based primarily on their criminal histories for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Luna County under this initiative.
Colorado Man Charged with Enticement of a MinorRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven returned an indictment today charging NATHANIEL SMITH, 29, of Aurora, Colo., with one count of enticement of a minor.
The indictment alleges that in January 2016, SMITH used a cell phone and Internet-based messaging and video chatting services to entice a minor to engage in sexual activity.
SMITH has been detained in state custody since January 25, 2016, when he was arrested on related state charges in New London.
If convicted of enticement of a minor, SMITH faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, the New London Police Department and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Cincinnati Man Pleads Guilty to Illegally Importing Drugs into U.S.Read the Press Release
ABINGDON, VIRGINIA – United States Attorney John P. Fishwick Jr. announced today the guilty plea of an Ohio man to conspiracy charges for illegally importing prescription drugs into the United States.
Michael Louis, 60, of Cincinnati, Ohio, waived his right to be indicted and pled guilty yesterday in the United States District Court for the Western District of Virginia in Abingdon to one count of conspiring to illegally import prescription drugs into the United States and to illegally distribute tramadol.
“We are glad to work with our partners at the Food and Drug Administration to ensure the quality and authenticity of the drugs coming into our country,” United States Attorney John P. Fishwick Jr. said today. “It is important for consumers in this country to know that what they are consuming is safe and approved.”
United States District Judge James P. Jones scheduled a sentencing hearing for June 6, 2016, at 2:30 p.m. in Abingdon.
The investigation of the case was conducted by the U.S. Food and Drug Administration’s Office of Criminal Investigations. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.