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8 April 2016
Crime Victims, Survivors, Good Samaritans and Community Groups to Be Honored at Event Marking National Crime Victims' Rights WeekRead the Press Release
WASHINGTON - U.S. Attorney Channing D. Phillips and the Victim Witness Assistance Unit of the U.S. Attorney’s Office for the District of Columbia will pay tribute Monday, April 11, 2016, to over 30 crime victims, their families, witnesses, community groups, and Good Samaritans for their bravery, compassion, and dedication to the pursuit of justice.
The honorees are to be recognized during a ceremony at 2 p.m. hosted by the U.S. Attorney’s Office for the District of Columbia, timed with the annual observance of National Crime Victims’ Rights Week, at One Judiciary Square.
This year’s national theme, “Serving Victims, Building Trust, Restoring Hope,” highlights the importance of early intervention and victim services in establishing trust with victims, which in turn begins to restore their hope for healing and recovery.
“Day after day, all of us are inspired by the strength, perseverance and courage of the victims and witnesses who come forward in the name of justice and public safety,” said U.S. Attorney Phillips. “We are committed to doing everything we can to help them and their families throughout the criminal justice process. This ceremony is one way that we can show our respect and appreciation for the fortitude they demonstrate in the most challenging of circumstances.”
In addition to U.S. Attorney Phillips, those scheduled to speak at the ceremony include Sherry Zalika Sykes, whose 22-year-old son, Omar Sykes, was slain on July 4, 2013, in a botched attempted armed robbery in Northwest Washington. Her son was a rising senior at Howard University; his killer is serving a 28 ½-year prison term. Ms. Sykes is a career federal public servant with extensive experience in the non-profit community. She was granted a fellowship in 2014 and 2015 to engage in a year-long program of study, speaking, and teaching about violence, and has spoken to audiences nationwide about its impact.
Ms. Sykes will be honored at the ceremony, along with other individual victims, survivors and Good Samaritans whose efforts furthered the cause of justice. For example, the honorees include victims and witnesses who came forward after violent crimes; family members of murder victims, who attended weeks of trial; and a couple who intervened to stop a sexual assault, protected the victim until police arrived, and then pointed out the defendant to police.
The honorees also will include five officers from the Metropolitan Police Department’s Sixth District, who rescued residents from a burning apartment building in Southeast Washington earlier this year, and a U.S. Navy commander who came to the aid of a woman who had just been robbed at the L’Enfant Metro station. The Navy commander confronted the robber and was stabbed in an attempt to apprehend him for police.
Special recognition will be given to the Children’s Law Center, a non-profit based in the District of Columbia that is now celebrating its 20th anniversary of helping children and families. The Children’s Law Center is being honored for the assistance that it provided a child in obtaining stable housing as well as emotional support during a trial.
The event was developed and organized by the Victim Witness Assistance Unit of the U.S. Attorney’s Office for the District of Columbia. Members of the Unit provide essential services and support to victims and witnesses, such as making referrals for counseling and other services, addressing safety concerns, and accompanying victims to court proceedings. The Unit also notifies victims of their rights and provides information regarding significant case events, such as the filing of charges, plea hearings, trials and sentencing hearings.
Additional information about the Victim Witness Assistance Unit is available at https://www.justice.gov/usao-dc/victim-witness-assistance
Further information about National Crime Victims’ Rights Week is available at http://ovc.ncjrs.gov/ncvrw/.
NOTE: This event is open to the press. It will take place in the old Council Chambers of the One Judiciary Square Building, 441 Fourth Street NW. All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Media check-in begins at 1:30 p.m. EDT. Press inquiries regarding logistics should be directed to Bill Miller at 202-252-6643 or James Perez at 202-252-6608.
Corporation and Two Owners of Fairview Heights Restaurant Plead Guilty to Tax ChargesRead the Press Release
LOTAWATA CREEK, INC., d/b/a Lotawata Creek Southern Grill, a restaurant located in Fairview Heights, Illinois, and its two owners, Rodney Archer, 50, and Kenneth Archer, 52, pled guilty in federal district court today to a conspiracy to obstruct the Internal Revenue Service in the assessment and collection of federal income taxes, James L. Porter, Acting United States Attorney for the Southern District of Illinois, announced.
Rodney Archer and Kenneth Archer each face a total maximum sentence of five years in federal prison, a $250,000 fine and up to three years supervised release, plus mandatory restitution. The corporation faces a maximum sentence of a fine of $500,000, restitution and five years of probation. Sentencing is scheduled for July 15, 2016.
As part of their pleas of guilty, Rodney Archer, Kenneth Archer, and Lotawata Creek, Inc., d/b/a Lotawata Creek Southern Grill, admitted that from beginning in 2010, through in or about July, 2015, they altered and manipulated the information in the restaurant's point of sale system to lower the reported cash sales and then did remove the corresponding amount of cash from the business prior to being deposited and reported as gross receipts. This had the effect of lowering the total gross receipts reported on the tax returns and thereby lowered the total taxable income reported to the Internal Revenue Service. Lotawata Creek, Inc. was incorporated in Missouri and is registered as a foreign corporation in Illinois beginning on February 1, 1996. Lotawata Creek, Inc. operates a popular restaurant located on Salem Place, Fairview Heights, Illinois and is owned by the two brothers - Kenneth Archer is the President and Rodney Archer is the Vice President.
The successful prosecution is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations. The prosecution of the case is being handled by Assistant U.S. Attorney Norman R. Smith.
Convicted Felon Sentenced to Prison for Stealing FirearmsRead the Press Release
STATESVILLE, N.C. – A Taylorsville, N.C. man with multiple past felony convictions was sentenced yesterday to 92 months in prison for breaking into homes and stealing the owners’ firearms, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, Andrew Ray Jonas, 34, was sentenced to three years of supervised release by U.S. District Judge Richard L. Voorhees, who presided over the sentencing hearing.
“Over the course of his criminal career Jonas had been warned many times to stay away from guns. Instead, Jonas went on a break-in spree, stealing numerous firearms from innocent homeowners which he then traded for money. As a result, he will spend the next seven years behind bars. Jonas should have paid closer attention to those who tried to warn him,” said U.S. Attorney Rose.
According to filed court documents and statements made in court, on May 19, 2014, law enforcement were notified that a residence in the Taylorsville area had been broken into. A A revolver, a pistol and jewelry were among the items stolen from the residence. According to court records, eye witnesses stated that prior to the break-in a gold SUV had been parked outside the residence, occupied by what appeared to be two females wearing bandanas. Later the same day, law enforcement located the vehicle which displayed a license plate that belonged to a different vehicle. Court records show that Jonas, who was a passenger, was wearing a bandana on his head. According to court records, Jonas was arrested after law enforcement found the two stolen firearms inside the car by Jonas’ feet.
Court records show that during the investigation law enforcement found evidence tying Jonas to multiple break-ins of homes in Taylorsville. According to court records, Jonas was also found in possession of tools stolen from the home break-ins, and in possession of pawn tickets for stolen lawn and power tools that he had pawned. Court records indicate that one person told law enforcement that he had purchased multiple firearms from Jonas and had paid $340 to $360 for each one. Jonas pleaded guilty in September 2015 to one count of theft of a firearm. Jonas’ previous convictions prohibit him from possessing a firearm and ammunition.
In handing down the sentence, Judge Voorhees stated that the sentence was to “protect the public from further crimes of the defendant.” Judge Voorhees expressed “grave concern for further criminality of particularly the breaking and entering sort.” Judge Voorhees observed, “hard working people work hard to get a house, and want it to be a castle, a place of sanctity, security,” and that defendant’s acts had violated that sense of security. Judge Voorhees also noted that Jonas has “’Villain’ tattooed on his right arm, it does not make him a villain, but speaks to his state of mind.”
Jonas is currently 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.
In making today’s announcement U.S. Attorney Rose thanked C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division and Sheriff Chris Bowman of the Alexander County Sheriff’s Office for investigating the case.
Assistant U.S. Attorney Robert Gleason of the U.S. Attorney’s Office in Charlotte was in charge of the prosecutions.
Convicted Drug Trafficker and Money Launderer Sentenced to PrisonRead the Press Release
BOSTON – A Brockton man was sentenced today in U.S. District Court in Boston in connection with orchestrating a cross-country conspiracy to distribute cocaine and marijuana.
Miguel Fernandes, 40, was sentenced by U.S. District Court Judge F. Dennis Saylor, IV, to 12 years in prison, four years of supervised release, and forfeiture of $1 million and a 2007 Ferrari. In January 2016, Fernandes pleaded guilty to conspiracy to possess with intent to distribute 500 grams or more of cocaine, possession with intent to distribute 100 kilograms or more of marijuana, and conspiracy to launder monetary instruments.
A two-year federal investigation revealed a well-organized conspiracy responsible for the transportation and distribution of cocaine and marijuana from Los Angeles to Boston. Fernandes, who at the time of the offense lived in Los Angeles, Calif. under the alias “Orlando Sanchez,” obtained the drugs from sources in Los Angeles, and utilized various means, including the USPS express mail system, to ship the drugs to various cities in the greater Boston area. Fernandes and his co-conspirators also laundered the proceeds made from the sale of those drugs. The conspiracy utilized “funnel accounts” controlled by individuals in Los Angeles who allowed deposits for Fernandes to be made to their accounts in Massachusetts and withdrawn in Los Angeles. As many as 40 funnel accounts were utilized, through which Fernandes and his co-conspirators laundered as much as $5 million in drug sale proceeds.
As the organizer and leader of the operation, Fernandez oversaw all aspects of the conspiracy. He also reaped the greatest rewards. At the time of his arrest, Fernandes had acquired a mint condition 2007 Ferrari 430 which he was ordered to forfeit to the government.
Co-defendants Michael Alves, 28, Alex Gomes, 26, and Nelson Teixeira, 36, all of Brockton, each pleaded guilty to conspiracy to launder monetary instruments. In February 2016, Alves was sentenced to 27 months in prison, and Gomes was sentenced to 30 months in prison.
In March 2016, Teixeira was sentenced to one year and one day in prison for his role. Marcos Andrade was acquitted of conspiracy to launder monetary instruments in January 2016 after trial.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Lisa A. Quinn, Special Agent in Charge of the U.S. Secret Service; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Karen Beausey and James Arnold of Ortiz’s Narcotics and Money Laundering Unit.
Cecil County Man Sentenced to 18 Years in Prison for Distributing Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced James J. Stanley, age 29, of Rising Sun, Maryland, today to 18 years in prison followed by a lifetime of supervised release for distributing child pornography. Stanley also admitted to the attempted sexual exploitation of a minor. Judge Russell ordered that upon his release from prison, Stanley must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Chief F.D. “Chip” Peterson, Jr. of the Rising Sun Police Department; and Cecil County State’s Attorney Ellis Rollins.
According to his plea agreement, Stanley used a website that hosts anonymous and random one-to-one video and text chat. The website allows users to chat with others without providing any identifying information, and markets itself as an opportunity for users to “Talk to strangers!” During a video chat session on the website on October 20, 2014, Stanley used his webcam to display an image documenting the sexual abuse of a prepubescent girl, which was stored on his computer or other digital storage media.
Stanley also admitted that he placed a recording device in a shower that he knew would be used by a minor female, with the intent to create video recordings of her engaged in sexually explicit conduct. Between November 14, 2014 and January 14, 2015, Stanley saved a video file to his computer that depicted the girl taking a shower. The girl’s genital area is not visible in the video. Stanley stated that he used his cell phone to record the girl showering on approximately 10 occasions, although other videos of her were not recovered.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the HSI Baltimore, the Maryland State Police, Rising Sun Police Department and the Cecil County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Zachary A. Myers, who prosecuted the case.
Buffalo Man Charged with Threatening the President, A Former President and Multiple Presidential CandidatesRead 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 Joseph Conrad Goode, 21, of Cheektowaga, NY, was arrested and charged by criminal complaint with threatening the President, threatening a former President, and threatening a major candidate for Office of the President of the United States. The charges carry...
Assistant U.S. Attorney Mary C. Baumgarten, who is handling the case, stated that according to the complaint, on April 7, 2016, the United States Secret Service Buffalo Field Office received information that the defendant threatened to injure and kill Barack Obama, William Clinton, Donald Trump, Hillary Clinton, and Ted Cruz.
Among others things, the defendant allegedly said:
• He was going to get a "high powered rifle and kill all the presidential candidates," and that he "is the kind of person ready to snap and shoot up a public place."
• “Bill Clinton is only a couple hours away and I am going to f------ kill him along with Donald Trump, Ted Cruz and all of the FBI." Goode also said he had a sniper rifle and was going to get it when he got out of here [ECMC].
• Wanted to kill Hillary Clinton and Donald Trump.
• The defendant’s goal in killing presidential candidates was to "see the world burn."
The defendant will make an initial appearance today at 11:30 a.m. before U.S. Magistrate Judge H. Kenneth Schroeder.The complaint is the result of an investigation by the United States Secret Service, under the direction of Special Agent in Charge C. Todd Laster.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Arizona Man Arrested in New Mexico Based on DEA Seizure of More than Ten Pounds of HeroinRead the Press Release
ALBUQUERQUE – Jose Andres Ramirez, 24, of Phoenix, Ariz., made his initial appearance today in federal court in Albuquerque, N.M., on a criminal complaint charging him with possessing more than ten pounds of heroin with intent to distribute. Ramirez remains in federal custody pending a preliminary hearing and a detention hearing scheduled for April 11, 2016.
Ramirez was arrested yesterday after the DEA allegedly found 4.85 gross kilograms (10.69 pounds) of heroin concealed in his luggage at the Greyhound Bus Station in Albuquerque.
If convicted of the charge in the criminal complaint, Ramirez faces a statutory penalty of a mandatory minimum of ten years and a maximum of life in federal prison. Charges in criminal complaint are merely accusations, and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA and is being prosecuted by Assistant U.S. Attorney Rumaldo Armijo.
The New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with Bernalillo County, the Albuquerque City Council, DEA, Healing Addiction in our Community (HAC) and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Antitrust Division Issues 2016 Annual Spring UpdateRead the Press Release
The Department of Justice’s Antitrust Division today issued its 2016 spring update. The update highlights the Antitrust Division’s civil and criminal enforcement actions, international cooperation efforts, and competition guidance and advocacy over the last year.
The spring update includes a message from Assistant Attorney General Bill Baer discussing the division’s recent litigation successes, civil enforcement wins, and its prosecution of domestic and international cartels. The update includes profiles of some of division employees who helped make that happen.
The spring update describes the division’s successes in civil enforcement over the past year. These include several wins in just the last few weeks: the Supreme Court’s recent denial of Apple’s cert. petition, ending that company’s efforts to avoid liability for its role in orchestrating a conspiracy with book publishers to raise the price of eBooks; United Airlines’ abandoned efforts to bolster its monopoly at Newark International Airport; and the temporary restraining order that foiled Tribune Company’s efforts to monopolize local newspaper markets in southern California. The spring update also provides an in-depth look at the division’s suit to block the Electrolux-General Electric merger, which the parties abandoned before the end of trial, and its earlier work to protect competition among broadband internet providers, canned tuna companies, and installment lenders.
This year’s update also describes the division’s criminal enforcement efforts, which included obtaining more than $3.6 billion in criminal fines and penalties – the largest amount ever secured by the division in a single fiscal year – and bringing charges against 20 companies and more than 60 individuals for criminal violations of U.S. antitrust laws. The update looks at the milestones the division reached in its prosecution of collusion and fraud in the financial industry and among real estate investors in the southeastern United States and northern California. It discusses the recent guilty verdict returned in the trial against John Bennett, a former CEO extradited to face charges for kickbacks and fraud. And it details the division’s work to protect competition in online marketplaces and among firms that help out the heirs of people who died without a will.
Finally, the update explores the division’s competition advocacy in the U.S., its efforts to provide guidance on important issues about the intersection of intellectual property and antitrust, and its work with enforcers across the globe to protect competition and promote sound enforcement of antitrust laws.
Follow the Antitrust Division on Twitter.
Albuquerque Man Sentenced to Prison for Conviction Arising Out of Robbery of Retail Pharmacy in August 2014Read the Press Release
ALBUQUERQUE – Roy Christopher, 29, of Albuquerque, N.M., was sentenced today in federal court to 41 months in prison followed by three years of supervised release for his theft of medical products conviction arising out of the robbery of an Albuquerque-area retail pharmacy in Aug. 2014.
Christopher was one of six defendants charged in four indictments that were announced by federal and local officials on April 29, 2015. The indictments alleged that the six defendants robbed retail pharmacies in Albuquerque to illegally obtain Oxycodone and other highly addictive opioid painkillers. The four indictments charged Christopher and five other Albuquerque residents with crimes arising out of the armed robberies of retail pharmacies, including violations of the Controlled Substance Registrant Protection Act and the Safe Doses Act, laws passed to address the theft and diversion of prescription drugs.
Christopher was indicted on April 28, 2015, and charged with (1) violating the Hobbs Act by interfering with interstate commerce by robbery and violence; (2) violating the Safe Doses Act by theft of medical products; and (3) possession of Oxycodone with intent to distribute. The charges against Christopher arise out of the robbery of a CVS Pharmacy on Aug. 3, 2014.
On Nov. 17, 2015, Christopher pled guilty to Count 2 of the indictment charging him with violating the Safe Doses Act by robbery involving controlled substances. In entering the guilty plea, Christopher admitted that on Aug. 3, 2014, he entered the CVS pharmacy and handed the attending pharmacy employee a note demanding Oxycodone and that the pharmacy employee complied with his demand. Christopher was apprehended shortly after the robbery. Christopher admitted that he stole more than 200 Oxycodone pills of various dosages during the robbery.
The pharmacy robbery cases involving the other five defendants have been resolved as follows:
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On July 1, 2015, Victor Hurtado, 20, pled guilty to felony charges arising out of the Jan. 6, 2015, armed robbery of the Smith’s Pharmacy located at 4016 Louisiana Blvd. NE in Albuquerque. Hurtado was sentenced on Dec. 10, 2015, to 141 months in federal prison followed by five years of supervised release.
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On Sept. 17, 2015, Valentin Garcia, 23, pled guilty to felony charges arising out of the Jan. 30, 2015, armed robbery of the CVS Pharmacy located at 4201 Montano in Albuquerque.Garcia was sentenced on Dec. 17, 2015, to ten years in federal prison followed by three years of supervised release.
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On Sept. 4, 2015, Blake Gallardo, 22, pled guilty to felony charges arising out of the June 6, 2015, robbery of a Walgreens Pharmacy located at 1201 Unser Blvd. NW in Albuquerque.Gallardo was sentenced on Dec. 15, 2015, to 15 years in federal prison followed by three years of supervised release.
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On Sept. 24, 2015, Josephine Duran, 23, pled guilty to felony charges arising out of the June 6, 2015, robbery of a Walgreens Pharmacy located at 1201 Unser Blvd. NW in Albuquerque.Under the terms of her plea agreement, Duran will be sentenced to a prison term within the range of 48 to 100 months.
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On Jan. 19, 2016, Joseph Montano, 23, pled guilty to felony charges arising out of the Jan. 6, 2015, armed robbery of the Smith’s Pharmacy located at 4016 Louisiana Blvd. NE in Albuquerque. Under the terms of his plea agreement, Montano will be sentenced within the range of 80 to 120 months in federal prison.
These cases were investigated by the Albuquerque office of the FBI, the Tactical Diversion Squad of the DEA in Albuquerque, and the Albuquerque Police Department, with assistance from the 2nd Judicial District Attorney’s Office in Bernalillo County. The cases are being prosecuted by Assistant U.S. Attorneys Shaheen P. Torgoley and Joel R. Meyers.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
These cases are being prosecuted pursuant to a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution 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 Bernalillo County, under this initiative.
The cases also are being prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
The Controlled Substance Registrant Protection Act was enacted in 1984, to combat the theft of prescription drugs from individuals and businesses registered with the DEA. It created penalties for entering a pharmacy’s premises for the purpose of stealing controlled substances, and includes enhanced punishment for using a dangerous weapon. The Safe Doses Act was enacted in Oct. 2012, to fight medical theft and protect patients from unknowingly using stolen and mishandled drugs. It provides for enhanced sentences for those who rob pharmacies of controlled substances; individuals who steal medical products; and “fences” who knowingly obtain stolen medical products for resale in the supply chain.
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***media Advisory***Read the Press Release
CHARLESTON, W.Va. – The United States Attorney's Office for the Southern District of West Virginia, along with federal, state and local advocates of crime victims’ rights, will host an opening ceremony in recognition of National Crime Victims' Rights Week on Monday, April 11, 2016, at noon in the Robert C. Byrd United States Courthouse in Charleston.
The ceremony will feature officials working in the criminal justice system, agencies and organizations providing services to crime victims, and crime victims themselves who can speak firsthand to their experience. As part of the event, there will be a presentation of the 2016 Excellence in Victim Advocacy and Justice Award to Huntington Police Chief Joe Ciccarelli.
This ceremony marks the 16th Annual Operation Reach Out event. Operation Reach Out is a collaborative group of federal, state and local agencies and organizations that work to raise awareness about the rights, protections, and services available to crime victims in West Virginia. This event is being held in conjunction with the nationwide observance of National Crime Victims' Rights Week, which begins on April 10 and runs through April 16, 2016. The theme of National Crime Victims' Rights Week this year is "Serving Victims. Building Trust. Restoring Hope."
WHO:
- Acting United States Attorney Carol Casto
- Kandi Burns, Crime Victim Survivor
- Elaine and Stephanie Wagner, Crime Victim Survivors
- Huntington Police Chief Joe Ciccarelli, Recipient of the 2016 Excellence in Victim Advocacy and Justice Award
- Operation Reach Out committee members
- Other federal, state and local officials
- Staff representing the United States Attorney's Office, Southern District of West Virginia
WHAT:
- Operation Reach Out Opening Ceremony for National Crime Victims’ Rights Week
WHERE:
- Robert C. Byrd United States Courthouse – Fifth Floor
- 300 Virginia Street, East
- Charleston, WV 25301
WHEN:
- Monday, April 11, 2016, at noon. The ceremony will immediately follow a reception and lunch beginning at noon.
Follow us on Twitter: SDWVNews
7 April 2016
Weldon Man Sentenced for Selling Crack CocaineRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, United States District Judge Terrence W. Boyle, sentenced LUTHER ALLEN TERRY, 33, of Weldon, North Carolina, to 96 months in prison and 10 years of supervised released for distribution of crack cocaine. TERRY previously pled guilty to this charge on September 4, 2015.
On April 16 and 17, 2014, the Halifax County Sheriff’s Office used an informant to buy crack cocaine from TERRY twice near the Weldon High School in Weldon, N.C.
TERRY received an enhanced punishment as a career offender based on his two prior state convictions for selling cocaine.
The investigation of this case was conducted by the Halifax County Sheriff’s Office. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Wallingford Man Charged with Operating Ponzi SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven returned an 18-count indictment yesterday charging JOSEPH A. CASTELLANO, 58, of Wallingford, with fraud and money laundering offenses stemming from an investment scheme that defrauded individuals of more than $1.5 million.
As alleged in the indictment, CASTELLANO operated various entities out of offices in Wallingford, including Casbo Investments, Wallingford Investors Limited Partnership, AIM Realty Investors, and Castellano & Co., LLC. As a Certified Public Accountant and owner of Castellano & Co., LLC, CASTELLANO prepared federal and state tax returns for individuals and local businesses. In connection with his tax preparation business, CASTELLANO established a base of clients to which he offered financial services and investment opportunities in addition to preparing their taxes.
The indictment alleges that, beginning in approximately July 2007, CASTELLANO falsely represented to victim-investors that he had clients who were in need of capital to fund businesses or real estate development projects, but were unable to secure funding from traditional sources such as financial institutions. CASTELLANO told victim-investors that he would obtain for them a consistent rate of return of between approximately six percent and eight percent annually on their money by taking their money and placing it with, or loaning it to, one or more of his other clients. CASTELLANO, through Casbo Investments, prepared and executed official-looking documents and investment contracts termed “Demand Notes,” which contained a promise to return the principal amount, with interest, at any time.
In fact, there were no actual investments or investment opportunities, and the money was not invested with or loaned to other clients of CASTELLANO. CASTELLANO diverted the funds for his own use and benefit, including making payments to other victim-investors that were falsely represented to be “interest” payments. CASTELLANO also made false statements to certain victim-investors to explain various delays in the purported interest payments.
Through this scheme, it is alleged that CASTELLANO defrauded more than 10 victim-investors of more than $1.5 million.
CASTELLANO was arrested yesterday and detained. He appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was released on a $250,000 bond.
The indictment charges CASTELLANO with 10 counts of wire fraud, one count of mail fraud and four counts of securities fraud, offenses that carry a maximum term of imprisonment of 20 years on each count. The indictment also charges CASTELLANO with three counts of money laundering, an offense that carries a maximum term of imprisonment of 10 years on each count.
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, Internal Revenue Service – Criminal Investigation Division, and U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorneys Michael McGarry and John Pierpont.
Two from Youngstown area charged with firearms violations in 18-count indictmentRead the Press Release
A federal grand jury returned an 18-count indictment charging Tamyra Gudzinas, 74, of Hubbard, Ohio, and Elie J. Faraj, 31, of Youngstown, with various firearms violations, law enforcement officials said.
Thirteen counts of the indictment allege that on various dates beginning in August 2015 until on or about December 8, 2015, Gudzinas, aided and abetted by Faraj, made false and fictitious written statements to federally licensed firearm dealers, stating that she was purchasing the firearms for herself, when she was purchasing the firearms for another individual. The dates and locations of these purchases are as follows:
Date
Firearm Dealer
Firearm
8/24/15
Gander Mountain, Warren, OH
Sig Sauer P238, .380 caliber pistol
10/13/15
Miller Road and Gun
Youngstown, OH
Glock 22, .40 caliber pistol
10/14/15
Buckeye Firearms
Austintown, OH
Glock, model 19, 9mm pistol
10/16/15
Miller Road and Gun
Youngstown, OH
Glock, model 19, 9mm pistol
10/24/15
Stocker’s Shop
Warren, OH
Kahr, model CT380, .380 caliber pistol, and a
Glock, model 22, .40 caliber pistol
10/25/15
J&D Firearms
Warren, OH
Glock, model 19, 9mm pistol, and a
Taurus Millennium, 9mm pistol
11/13/15
Stocker’s Shop
Warren, OH
Glock, model 17, 9mm pistol
11/23/15
Miller Road and Gun
Youngstown, OH
Glock, model 27, .40 caliber pistol
11/23/15
Buckeye Firearms
Austintown, OH
Glock, model 17, 9mm pistol, and a
Kahr .380 caliber
11/24/15
Buckeye Firearms
Austintown, OH
Smith and Wesson, model MNP15, 5.56 caliber rifle
11/26/15
Tactical Firearms
Youngstown, OH
Glock, model 21, .45 caliber pistol and a
Glock, model 30, .45 caliber pistol
12/4/15
Tactical Firearms
Youngstown, OH
Glock, model 30, .45 caliber pistol;
Smith and Wesson M360, .38 caliber rifle;
Sig Sauer, model P938, 9mm pistol; and an
Anderson Mfg., model AM-15, 5.56 caliber rifle
12/8/15
Buckeye Firearms
Austintown, OH
Sig Sauer, model P239, .40 caliber pistol
Four counts of the indictment allege Faraj, having been previously convicted of possession of cocaine in the Mahoning County Court of Common Pleas in 2012, illegally possessed the following firearms on the following dates:
Dates
Firearms
10/24/15
Kahr, model CT380, .380 caliber pistol
11/23/15
Glock, model 17, 9mm pistol
12/4/15
Glock, model 30, .45 caliber pistol
12/4-12/11/15
Sig Sauer, model P938, 9mm pistol, and an
Anderson Mfg. AM-15, 5.56 caliber rifle12/8-12/11/15
Sig Sauer, model P239, .40 caliber pistol
“We will continue to work with our partners in law enforcement to prosecute those people who get firearms despite prohibitions against them – and those who illegally help them get the guns,” said Acting U.S. Attorney Carole S. Rendon.
“This case demonstrates one avenue by which firearms end up in the hands of violent criminals,” said Donald J. Soranno, ATF Special Agent in Charge for the Columbus Field Division. “ATF will continue to work with our federal, state, and local partners to close off these illegal transfers and keep firearms out of the hands of those who would use them to harm and intimidate others.”
“These suspects facilitated arming individuals that were attempting to conceal their possession and use of firearms,” said Steven D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “The FBI and its partners will continue efforts to stem the flow of illegal firearms to the criminal element.”
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the FBI Violent Crimes Task Force. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two drug dealers appear in Federal court for heroin crimesRead the Press Release
CHARLESTON, W.Va. – Two heroin dealers appeared in federal court today for drug crimes, announced Acting United States Attorney Carol Casto. Antoine Joshua Broner, 37, of Charleston, was sentenced to a year and four months in federal prison for distribution of heroin. In a separate prosecution, Lawrence Matthew Garner, 34, of Parkersburg, pleaded guilty to possession with intent to distribute heroin.
Broner admitted that on August 4, 2015, he sold heroin to a confidential informant working with law enforcement. Following the drug deal, officers seized $615 from Broner’s house in Charleston, $75 of which was pre-recorded buy money used in the controlled purchase with the confidential informant. Broner further admitted to possessing additional heroin at his residence that he intended to distribute.
In a separate heroin prosecution, Garner admitted that on July 16, 2015, he was arrested by members of the South Charleston Police Department for delivery of a controlled substance. During a search incident to arrest, officers found over 37 grams of heroin in Garner’s possession. Garner faces up to 20 years in federal prison and a $1 million fine when he is sentenced on July 14, 2016.
The investigation of Broner was conducted by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Jennifer Rada Herrald is in charge the prosecution of Broner. The case against Garner was investigated by the South Charleston Police Department. Assistant United States Attorney Timothy D. Boggess is handling the prosecution. The defendants appeared before United States District Judge Thomas E. Johnston.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
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Two Men Charged in Separate Complaints with Child Pornography OffensesRead 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 Joseph Kurowski, 23, of Buffalo, NY, was arrested and charged by complaint with production, receipt and possession of child pornography. In addition, Jose Cisneros, 30, of Buffalo, NY, was also arrested and charged by criminal complaint with production and receipt of child pornography. The charges carry a mandatory minimum sentenced of 15 years in prison, a maximum of 30 years and a $250,000.
“These two cases, along with today’s conviction of Anthony Thompson, depict the dark side of modern communication devices and applications” said U.S. Attorney Hochul. “The cases also serve as a warning to all of the many ways predators seek to manipulate children through technology into engaging in sexually explicit conduct. By education and dialogue, such conduct – which criminals would otherwise seek to keep in the shadows – can be exposed and prevented.”
Assistant U.S. Attorney Aaron J. Mango, who is handling both cases, stated that according to the complaint against Kurowski, in August 2015, the Blasdell Police Department received a report involving a 13 year old female (victim 1) who engaged in sexually explicit conversations with numerous individuals, including the defendant, using the Kik application and through text messages. Between September 21 and 23, 2015, an undercover law enforcement officer used victim 1’s Kik account and engaged Kurowski in a chat sessions during which the two discussed meeting in person.
On October 21, 2015, the Federal Bureau of Investigation executed a search warrant at the defendant’s residence and seized a laptop computer and cellular telephone. During an analysis of the items, officers recovered conversations with a 15 year old female (victim 2) that took place over the Whisperer application and Snapchat. During one of those conversations, Kurowski told victim 2 that he had a lawyer and that “some girls mom told the police I was coercing her to meet for sex. Didn’t meet.”
Officers also recovered Kik conversations between the defendant and a 16 year old female (victim 3). Victim 3 told officers she met Kurowski on Whisperer before moving the conversations to Kik. She said she “vaguely” recalled sending the defendant pictures and videos. She also said that Kurowski threatened to hurt her if she did not participate in the sexting and send him sexual videos.
Officers also found explicit conversations between the defendant and a 17 year old female (victim 4).
According to the complaint against Cisneros, also in August 2015, the Blasdell Police Department alerted the FBI about a 13 year old female (victim 1) engaging in sexually explicit conversations using the Kik application and text messages with an individual later identified as Cisneros. During their communications, the defendant and victim 1 exchanged graphic photos.
The complaint further states that during an interview with the FBI, the mother of Cisneros’s two children told agents that she found a phone belonging to the defendant which contained a sexual text conversation. The woman confronted Cisneros which resulted in an argument that led to police responding to the residence.
Cisneros and Kurowski both made initial appearances before U.S. Magistrate Judge Michael J. Roemer and are being detained pending detention hearings schedule for April 8, 2016 at 10:30 a.m. and 11:00 a.m. respectively.
The complaints are the result of an investigation by the Federal Bureau of Investigation’s Child Exploitation Task Force, under the direction of Special Agent in Charge Adam S. Cohen and the Blasdell Police Department, under the direction of Lieutenant Joseph Gramaglia. The task force includes the Buffalo Police Department, Cheektowaga Police Department, and Niagara County Sheriff’s Office.
Three Maryland Residents Indicted in Six Year Scheme to Scam Car Dealers and LendersRead the Press Release
Baltimore, Maryland – A federal grand jury indicted the following Maryland residents on wire fraud and money laundering charges arising from a scheme to defraud auto dealers and lenders in the counties of Anne Arundel, Howard, Baltimore and Montgomery, of at least $550,000:
Sean Stanley Jackson, age 43, of Baltimore;
Erika Patrice Ryles, age 35, of Baltimore; and
Walter Jermaine Perry, III, age 39, of Owings Mills.
The indictment was returned on March 30, 2016 and unsealed today at the initial appearances of the defendants before U.S. Magistrate Judge J. Mark Coulson in U.S. District Court in Baltimore. Defendants Ryles and Perry were released under pretrial supervision while defendant Jackson was detained pending a detention hearing scheduled for Friday, April 8, 2016 at 2:00 p.m.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Commissioner Kevin Davis of the Baltimore Police Department.
“The illegal activity alleged in the indictment regarding this fraud scheme was extensive,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “IRS Criminal Investigation, in conjunction with our law enforcement partners, is committed to investigating financial fraud cases.”
According to the 15 count indictment, from January 2010 to February 2016, Jackson, Perry and another co-conspirator would make false representations on loan applications to lenders in order to obtain loans to buy vehicles from dealers, for which they were not financially qualified. The indictment alleges that 13 loan applications were submitted electronically to purchase vehicles, including a Bentley, Corvette, Corvette Stingray, Cadillac, two Audis and two Ford F450s.
The indictment alleges that the defendants created shell entities purporting to be legitimate businesses engaged in, among other things, global investing, consulting, dump truck transportation and wholesale auto dealing. The defendants created fake documents, including paystubs, bank account statements, utility bills and corporate tax returns and schedules for the shell entities, which they submitted with auto loan applications. The defendants sold some of the fraudulently obtained autos by causing false lien releases or obtaining false titles that omitted the lenders’ liens on the automobiles.
The indictment seeks forfeiture of at least $550,000, the amount of proceeds of the fraud scheme.
All of the defendants face a maximum sentence of 20 years in prison for wire fraud conspiracy. Jackson also faces a maximum sentence of 20 years in prison on six counts of wire fraud; a maximum sentence of 30 years in prison on seven counts of wire fraud involving a financial institution; and 20 years in prison for money laundering. Perry also faces a maximum sentence of 20 years in prison for wire fraud.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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 IRS - Criminal Investigation and Baltimore County and City Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Philip A. Selden and Dana J. Brusca, who are prosecuting the case.
Terry Resident Charged with Bankruptcy FraudRead the Press Release
Jackson, Miss – Kenneth Bowman, Jr., 62, of Terry, Mississippi, has been charged in a federal indictment with three counts of bankruptcy fraud, announced U. S. Attorney Gregory K. Davis, Acting U. S. Trustee Henry G. Hobbs, Jr. of Region 5, and FBI Special Agent in Charge Donald Alway.
According to the indictment, Bowman, as the officer and representative of Piggly Wiggly of Crystal Springs, Inc., a debtor in Chapter 11 bankruptcy in the Southern District of Mississippi, embezzled approximately $101,733.55 from the bankruptcy estate. Bowman appropriated to his own use estate funds belonging to the debtor, specifically making checks payable to himself, and reducing assets available to creditors. If convicted, Bowman faces a maximum penalty of fifteen years in prison.
Bowman was arraigned before U.S. Magistrate Judge F. Keith Ball in Jackson today. He is scheduled for trial before U.S. District Judge Tom S. Lee on June 6, 2016.
The Office of the U. S. Trustee and the U.S. Bankruptcy Court for the Southern District of Mississippi referred the matter to the U. S. Attorney for prosecution. The Federal Bureau of Investigation and the U.S. Trustee assisted in the investigation and indictment of Bowman.
The public is reminded that an indictment is a formal charge that a defendant has committed a violation of the federal criminal laws. All defendants are presumed innocent unless and until proven guilty.
Ten indicted for bringing crystal methamphetamine to Ohio from CaliforniaRead the Press Release
Ten people were indicted for their roles in a conspiracy that brought large shipments of crystal methamphetamine to Ohio from California, law enforcement officials said.
Named in the 20-count indictment are: Hector Sabino Gonzales, 36, of Los Angeles; Carlos Elias, 33, and Lisa Elias, 36, both of Massillon; Jance Randolph, 33, of Canton; Michael Mack, 39, of Akron; Nikki Greenwood, 37, of New Philadelphia; Richard Stewart, 57, of Akron; Robert Willham, 45, of Medina; Steven Petit, 35, of Akron, and Wilmer Martinez, 25, of Painesville.
The Elias’s also face charges for distribution of heroin. Stewart is charged with being a felon in possession of a firearm.
Carlos Elias received large shipments of methamphetamine from Gonzales and others in California, usually via FedEx or UPS, from June 2015 through March 2016. Court documents detail shipments of methamphetamine to homes in Akron, New Philadelphia and Painesville, among others. The Elias’s sent cash via FedEx, UPS and the U.S. mail to Gonzales to pay for the drugs, according to the indictment.
The Elias’s provided methamphetamine to Martinez, Mack, Greenwood, Willham, Stewart, Randolph and others for distribution. Mack supplied methamphetamine to Petit for distribution, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Teresa Riley following an investigation by the Federal Bureau of Investigation and the Stark County Safe Streets Task Force, which includes the police departments of Canton, Jackson Township, Alliance, Louisville and Ohio Adult Parole Authority.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Ten Defendants Charged in White Plains Federal Court with Committing Narcotics Offenses in PeekskillRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), Eric Johansen, the Chief of the Peekskill Police Department, and George Longworth, Commissioner-Sheriff of the Westchester County Department of Public Safety, today announced the unsealing of two Complaints charging a total of 10 defendants with committing various narcotics offenses in Peekskill, New York.
Manhattan U.S. Attorney Preet Bharara stated: “The complaints charge conspiracies to distribute large quantities of crack cocaine. With the federal charges brought today we have taken a big step in neutralizing two different drug rings that have been peddling drugs for years in the city of Peekskill.”
FBI Assistant Director-in-Charge Diego Rodriguez stated: “People depend on law enforcement to stem the flow of illegal drugs into their communities and reduce associated crime in the area. Although today’s actions have halted a conspiracy to distribute highly addictive drugs in the Peekskill area, there are many steps to be taken in ridding society of crimes of this nature.”
Peekskill Police Chief Eric Johansen stated: “The message is clear: deal drugs in Peekskill and we will continue to pursue you with all of our resources. This community will not tolerate drug dealing and we thank our federal and county partners in law enforcement for supporting our efforts to remove these ten violent, career drug offenders from our streets.”
Westchester County Department of Public Safety Commissioner-Sheriff George Longworth stated: “Sharing resources and conducting joint investigations with federal and local partners remains one of the most effective means we have of combatting the distribution and sale of illegal narcotics in Westchester County. We are grateful for the relationships we have with the U.S. Attorney’s Office, the FBI and the municipal police agencies in our county.”
As alleged in the Complaints unsealed today in White Plains federal court[1]:
United States v. Eric Bolton, et al., 16 Mag. 2293
In at least 2015 and 2016, ERIC BOLTON, a/k/a “E.B.,” 25, DERRICK FRANKS, a/k/a “Skills,” 47, EDWARD REEVES, 21, WILLIAM BOLTON, 27, FRANKLIN BARBER, a/k/a “Nitty,” 35, and XAVIER DABBS, a/k/a “X,” 26, conspired to sell 28 grams or more of crack cocaine. Members of the conspiracy distributed crack in and around Peekskill. Members of the conspiracy also cut up and packaged the crack for resale in a location in Peekskill.
United States v. Kaihiem Taylor, et al., 16 Mag. 2294
In at least 2015 and 2016, KAIHIEM TAYLOR, a/k/a “Killa,” 30, JEROME REED, a/k/a “Popsie,” 27, DESHAWN SMALLS, a/k/a “Scrap,” 24, and NATHANIEL GRAHAM, a/k/a “Happy,” 36, conspired to sell 28 grams or more of crack cocaine. Members of the conspiracy distributed crack in and around Peekskill.
* * *
Five defendants were taken into federal custody this morning and were presented in White Plains federal court today before U.S. Magistrate Judge Paul E. Davison. Two defendants, FRANKLIN BARBER and JEROME REED, remain at large. An additional three defendants, KAIHIEM TAYLOR, ERIC BOLTON, and NATHANIEL GRAHAM, were already in state custody.
Charts containing the names of the defendants who were charged today, and the charges and maximum penalties they face, are attached. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the respective judges.
Mr. Bharara praised the outstanding investigative work of the FBI, the Peekskill Police Department, and the Westchester Department of Public Safety. Mr. Bharara also thanked the Sullivan County District Attorney’s Office for its ongoing assistance in the case.
These cases are being handled by the Office’s White Plains Division. Assistant United States Attorney Jennifer Beidel is in charge of the prosecutions.
The charges contained in the Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Eric Bolton, et al., 16 Mag. 2293
CHARGE(S)
DEFENDANT(S)
MAXIMUM PENALTIES
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute 28 grams or more of crack cocaine.)
ERIC BOLTON,
a/k/a “E.B.,”
DERRICK FRANKS,
a/k/a “Skills,”
EDWARD REEVES, WILLIAM BOLTON, FRANKLIN BARBER,
a/k/a “Nitty,” and
XAVIER DABBS,
a/k/a “X.”
40 years in prison
Mandatory minimum: five years in prison
United States v. Kaihiem Taylor, et al., 16 Mag. 2294
CHARGE(S)
DEFENDANT(S)
MAXIMUM PENALTIES
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute 28 grams or more of crack cocaine.)
KAIHIEM TAYLOR,
a/k/a “Killa,”
JEROME REED,
a/k/a “Popsie,”
DESHAWN SMALLS,
a/k/a “Scrap,” and
NATHANIEL GRAHAM,
a/k/a “Happy.”
40 years in prison
Mandatory minimum:
five years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Complaints and the descriptions of the Complaints set forth below constitute only allegations, and every fact described should be treated as an allegation.
Temp Agency Owner Pleads Guilty to Personal & Corporate Tax EvasionRead the Press Release
PROVIDENCE, R.I. – Rossy Noriega, 50, of Providence, R.I., owner of New Diamond Work, Inc., a temporary employment agency based in Fall River, Mass., pleaded guilty in federal court in Providence today to charges that she failed to pay $720,923 in employment and personal income taxes due the IRS. Noriega admitted that she failed to pay employment taxes for those employees who she paid in cash, and that she failed to pay personal taxes on unreported cash from her business that she pocketed.
Noriega admitted to the court that during tax years 2009-2013, she made over $2.5 million dollars in cash withdrawals from her company bank accounts. Some of the proceeds of these withdrawals were used to pay employees in cash; while some of the proceeds were used for her own personal benefit.
Noriega’s guilty plea to charges of income tax evasion and failure to withhold and pay over employment taxes is announced by United States Attorney Peter F. Neronha and Joel P. Garland, Special Agent in Charge of IRS Criminal Investigation.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Noriega admitted to the court that during tax years 2009-2013, as she made over $2.5 million dollars in cash withdrawals from company accounts, she paid some of her New Diamond Work employees via payroll check while many more were paid in cash, and that she used a significant amount of the cash withdrawn for her own personal use.
Noriega admitted that she failed to accurately report to the IRS the number of employees, total payments to the employees, and the employees’ and the employers’ share of federal employment taxes due the IRS. She also admitted that she failed to accurately report her own personal income, thus she failed to pay the appropriate amount of taxes due the IRS. An investigation by IRS Criminal Investigation revealed that the defendant failed to pay to the IRS $580,066 in payroll taxes on behalf of New Diamond Work, Inc., for the quarters ending March 31, 2009 through and December 31, 2013; and that during tax years 2009-2013, she failed to pay personal income taxes totaling $140,857.
Noriega is scheduled to be sentenced by U.S. District Court Judge John J. McConnell, Jr., on June 24, 2016.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter was investigated by IRS Criminal Investigation, with the assistance of the U.S. State Department Office of Inspector General.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Tax Fraudsters Sentenced in $200 Million SchemeRead the Press Release
PHILADELPHIA – Andrew Ahn, 41, of Columbia, Missouri, was sentenced today to 30 months in prison while his co-conspirator, Aviel Faliks, 41, of New York, New York, was sentenced to a year and a day for a multi-million dollar tax fraud scheme. In addition to the prison terms, U.S. District Court Judge Berle M. Schiller ordered Faliks to sell his apartment worth approximately $6.5 million and use half of the proceeds to pay restitution in the amount of $48,457,370 to the IRS. Judge Schiller also ordered Ahn to pay restitution of $113,537,679.
Between at least 2003 and 2011, the defendants, with several co-conspirators, designed and implemented a scheme to evade more than $200 million in corporate taxes by purchasing companies with taxable gains and using fraudulent losses to wipe out the gains. The conspirators then pocketed the corporations’ cash, filed fraudulent returns, and, in some instances, fraudulently sought and obtained refunds from the IRS for prior years. The defendants implemented their fraud scheme through four basic steps: (1) initial purchasers---including MidCoast Financial Inc., a company owned by defendant Chandrakant Shah and operated by defendant Samyak Veera---purchased target corporations with cash assets and large anticipated corporate income tax liabilities; (2) the initial purchasers next transferred these target corporations to “straw buyers” controlled on paper by Andrew Ahn and Aviel Faliks for the benefit of Veera; (3) the defendants then evaded the corporations’ income taxes through the use of fraudulent transactions designed to create the illusion that the corporations had incurred capital and ordinary losses; and (4) finally, the defendants distributed proceeds of the scheme through disguised means.
During the course of the conspiracy, Ahn and Faliks took various actions in furtherance of the conspiracy. For example, both Ahn and Faliks signed false and misleading documentation regarding the transactions, caused fraudulent corporate income tax returns to be filed, and made misrepresentations to the IRS regarding the scheme. In addition, both defendants held themselves out as independent, arms-length participants in the transactions and hid Veera’s role as the architect of the scheme from the IRS and others.
Faliks pleaded guilty on July 27, 2015, to one count of conspiracy and one count of corruptly endeavoring to obstruct and impede the Internal Revenue laws; Ahn pleaded guilty on August 30, 2012, to one count of corruptly endeavoring to obstruct and impede the Internal Revenue laws and one count of structuring transactions. Co-defendant Eric Merl, the in-house counsel for MidCoast Financial, pleaded guilty on October 31, 2013, to one count of conspiracy and one count of making a false statement. Merl was sentenced to 24 months in prison on February 22, 2016 by Judge Schiller.
The case was investigated by IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorneys Patrick J. Murray and James Petkun.
Tampa Man Sentenced to More Than Five Years in Stolen Identity Refund Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Major Dixon to five years and one month in federal prison for his role in a stolen identity refund fraud scheme. As part of his sentence, the Court also ordered him to pay $129,505.33 in restitution to the Internal Revenue Service. Dixon pleaded guilty on December 11, 2015.
According to court documents, between February and September 2012, Dixon and others filed false and fraudulent income tax returns in the names of others, including deceased individuals. In these fraudulent returns, the conspirators represented that they were entitled to the refunds and requested that the IRS direct the funds to accounts the conspirators had established in their respective names at various local financial institutions.
Four others were charged and previously pleaded guilty for their roles in this conspiracy. Sonja Lang was sentenced to time served and was ordered to pay $37,158.04 in restitution to the IRS. Rosea Armstrong was sentenced to 36 months’ probation and was ordered to pay $46,641.59 in restitution to the IRS. Arthur Murray was sentenced to 21 months in federal prison and was ordered to pay $19,235.10 in restitution to the IRS. Finally, Lasia Maxwell will be sentenced on June 2, 2016.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Stock Broker and Partner Arrested for Microcap Stock Manipulation SchemeRead the Press Release
BOSTON – A former New Hampshire stock broker and his Florida-based partner were arrested today on charges arising out of their participation in a market manipulation scheme which was actually part of an FBI undercover operation.
Robert Raffa, 56, of Penacook, NH., and David Aubel, 57, of Marco Island, Fla., were charged in a criminal complaint with conspiracy and wire fraud based on their involvement in a scheme to manipulate the market for the publicly traded securities of Green Energy Renewable Solutions, Inc., a penny stock company that claimed to be in the business of developing and operating waste processing and recycling facilities near Detroit, MI. They were arrested at their respective homes in New Hampshire and Florida.
According to the charging documents, in early 2012, Raffa and Aubel used four foreign entities to covertly acquire nearly all of Green Energy’s unrestricted stock without reporting their controlling interest as required by law. They then hired a promoter to send blast e-mails touting Green Energy to potential investors. Meanwhile, it is alleged that Raffa and Aubel were furiously selling their shares without disclosing that they had orchestrated the campaign encouraging investors to buy.
As alleged in the criminal complaint, the initial promotion enabled Raffa and Aubel to sell more than 1.5 million shares of Green Energy stock for proceeds of about $950,000. However, Raffa and Aubel continued to control a substantial amount of Green Energy stock after the promotion ended, so they used manipulative trading techniques to stabilize Green Energy’s stock price while they searched for another promoter to run a second touting campaign. Their search led them to a stock promoter who was secretly cooperating with the FBI and an undercover FBI agent who claimed to have access to a network of corrupt stock brokers who would buy Raffa’s and Aubel’s shares and place them in customer accounts in exchange for kickbacks. Raffa and Aubel allegedly executed a trade in which they sold 174,000 shares of their Green Energy stock to an account purportedly controlled a corrupt broker, which in fact was controlled by the FBI. Following the trade, Raffa and Aubel wired $6,000 to an account they believed to be controlled by the corrupt broker, but which was actually controlled by the FBI.
In a parallel action, the Securities and Exchange Commission (SEC) announced securities fraud charges today against Raffa and Aubel in connection with the scheme.
These charges arise out of a multi-year investigation focusing on preventing fraud in the microcap stock markets. Microcap companies are small publicly traded companies whose stock often trades at pennies per share. Fraud in the microcap markets is of increasing concern to regulators as such markets have proven to be fertile grounds for fraud and abuse. This is, in part, because accurate information about microcap stocks may be difficult for the average investor to find, since many microcap companies do not file financial reports with the SEC.
Today’s charges follow a series of cases filed by the U.S. Attorney for the District of Massachusetts and the SEC in which more than 30 individuals have been criminally charged and convicted for using kickbacks and other schemes to trigger investment in, or manipulate the stock of, thinly-traded stocks.
The charge of conspiracy provides a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000, or twice the gross loss. The charge of wire fraud provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss. 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 Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The United States Attorney’s Office received valuable assistance from the SEC during the investigation of this matter. The case is being prosecuted by Assistant U.S. Attorney Vassili Thomadakis of Ortiz’s Criminal Division and SEC attorney Andrew Palid, who was appointed as a Special Assistant U.S. Attorney.
The details contained in the charging document are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Springfield, Illinois Men Plead Guilty to Heroin ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two men have pleaded guilty to their roles in a heroin trafficking conspiracy in the Springfield, Mo., area.
Deauntee Q. Mosby, 23, of Oak Lawn, Ill., pleaded guilty before U.S. Magistrate Judge David P. Rush on Wednesday, April 6, 2016, to the charge contained in a September 30, 2015, federal indictment. Donald D. Johnson, 27, of Springfield, pleaded guilty to the same charge on March 30, 2016.
By pleading guilty, Mosby and Johnson each admitted that he participated in a conspiracy to distribute more than 100 grams of heroin in Greene County, Mo., between May 29, 2013, and Feb. 12, 2015.
Mosby and Johnson admitted that they bought heroin in the Chicago, Ill., area and had it transported in vehicles to the Springfield area for distribution. Johnson also admitted that he bought heroin in the St. Louis, Mo., area. Mosby and Johnson sold heroin to other co-conspirators.
Mosby was stopped by law enforcement officers on two occasions. On Aug. 28, 2013, he was the passenger in a vehicle that was stopped in Nixa, Mo. Mosby, who smelled of marijuana, was asked to get out of the vehicle. The officer searched the vehicle and found a syringe that contained heroin between the front driver and passenger seat, a digital scale with heroin residue, and $2,373 in the driver’s wallet. The officer also found a firearm in the trunk. Mosby was also stopped in Pulaski County, Mo., on Jan. 12, 2015, by a St. Robert, Mo., police officer. The officer smelled marijuana in the vehicle and arrested Mosby for an active warrant. Officers searched the vehicle and found a plastic bag behind a panel below the center console that contained 59.36 grams of heroin.
Mosby also admitted that he sold seven grams of heroin to a confidential law enforcement informant in Springfield for $1,100 on Sept. 13, 2013.
Johnson admitted that he sold heroin to an undercover law enforcement officer and a confidential informant on three occasions. On March 13, 2014, he sold .7 grams of heroin for $275 in a transaction in Springfield. On March 18, 2014, he sold 2.2 grams of heroin for $500 in a transaction in Ozark, Mo. On Feb. 12, 2015, he sold .93 grams of heroin for $270 in a transaction in Springfield.
Law enforcement officers searched a unit rented by Johnson and a co-conspirator at Bradford Mini Storage in Springfield on May 29, 2014. Inside the storage unit they found a Bushmaster .223-caliber semi-automatic rifle.
The plea agreement also contains references to telephone calls between Johnson and a co-defendant who discussed the conspiracy while she was incarcerated at the Greene County Jail.
Under federal statutes, Mosby and Johnson are each subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of up to 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Nhan D. Nguyen and Ami Harshad Miller. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol and the Springfield, Mo., Police Department.
Southbridge Man Pleads Guilty to Illegally Exporting Assault Rifle and Pistol PartsRead the Press Release
Boston – A Southbridge, Mass., man pleaded guilty in U.S. District Court in Worcester today in connection with illegally shipping hundreds of firearm parts to people in 22 countries, including France, Finland, Indonesia, New Zealand, Thailand, Spain, Australia, and Germany.
David L. Maricola, 60, Southbridge, Mass., pleaded guilty to a 32-count indictment charging him with conspiracy, illegally exporting defense articles, making false statements on customs forms, and money laundering. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for June 30, 2016.
In 2015, Maricola and Arto Laatikanien, a 32-year old Finnish citizen, were indicted in connection with illegally exporting hundreds of assault rifle and firearm components, including parts for M16, M4, AR-15 assault rifles, Glock pistols, and UZI submachine guns.Between November 2010 and March 2012, Maricola shipped more than $100,000 worth of firearm components to Laatikainen in Finland though the U.S. Postal Service.After receiving the parts, Laatikainen sold them to criminal organizations in Finland, including the Cannonballs Outlaw Motorcycle Gang.
At today’s hearing, Maricola admitted to illegally exporting and conspiring to illegally export hundreds of firearm parts overseas using the Postal Service, lying on customs declaration forms about the contents and value of the articles he was sending, and money laundering. Maricola acknowledged that he had obtained many of the parts he illegally exported overseas from Gunbroker.com, an auction type website, and instructed his customers to send money to him using Paypal. Additionally, Maricola admitted that he repeatedly falsely described gun parts on customs forms as merely being “AIRSOFT” or replica firearms rather than being for actual, lethal guns. On numerous occasions, Maricola also falsely described AR-15 assault rifles parts as “aluminum sculptures.”
Laatikanien remains in Finland as Finland does not extradite its own nationals.
The charges of illegally exporting defense articles and money laundering each provide for a sentence of no greater than 20 years in prison. The charges of conspiracy and making false statements each provide for a sentence of no greater than five years in prison. In addition, the charge of illegally exporting defense articles provides for no greater than three years of supervised release and a fine of $1 million on each count. 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; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Leigh-Allistair Barzey, Special Agent in Charge of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office; and Michael S. Imbrogna, Special Agent in Charge of the Department of Commerce, Bureau of Indutry and Security, Office of Export Enforcement, Boston Field Office, made the announcement today. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and U.S. Postal Inspection Service provided substantial assistance during the investigation. The case is being prosecuted by Assistant U.S. Attorney B. Stephanie Siegmann of Ortiz’s National Security Unit.
Six Defendants Indicted in Tunnel and Drug SeizuresRead the Press Release
Assistant U. S. Attorney Sherri Walker Hobson (619) 961-0287
NEWS RELEASE SUMMARY – April 7, 2015
SAN DIEGO – Six people – including two new defendants arrested in Arizona and San Bernardino County, California - were indicted today by a federal grand jury in San Diego in connection with the drug tunnel that was seized last month in Calexico, California.
The new defendants are Bertha Lidia Esquivel, aka Bertha Inzunza, of Rialto, California, and Kenneth Wayne Olmos, Jr., of Tucson, Arizona.
Also charged in the indictment with multiple federal offenses were Agustin Enriquez Cruz, aka Tinky, of Tucson, Arizona; Eva Medina De Duarte, aka Eva Duarte-Medina, aka Eva Duarte de Medina, of Tucson, Arizona; Joel Duarte-Medina of Mexico; and Manuel Gallegos-Jimenez, aka Jorge Alberto Torango, of Mexico. Eva Medina De Duarte is the grandmother of Agustin Cruz and the mother of Joel Duarte-Medina.
The defendants were previously charged via complaint; the grand jury indictment charges them with additional crimes. They are now charged with some or all of the following drug and tunnel related crimes: Conspiracy to distribute marijuana, possession of marijuana with intent to distribute, conspiracy to import marijuana, importation of marijuana, construction and financing a tunnel that crosses the border, use of a tunnel that crosses the border, conspiracy to use and maintain drug related premises, use and maintaining drug related premises, and criminal forfeiture.
All defendants are in federal custody.
Federal officials seized a cross-border tunnel on March 23, 2016 following a lengthy investigation that resulted in multiple arrests and the confiscation of more than a ton of marijuana. The tunnel, approximately 415 yards in length, stretches from El Sarape Restaurant in Mexicali, Mexico to a two-bedroom, two-bath house, located at 902 E. Third Street in Calexico, California, about 300 yards north of the international border. In the front room of the residence, agents found a hole in the floor covered with tile leading to a shaft descending underground.
On the day the tunnel was discovered, defendants Joel Duarte Medina and Manuel Gallegos Jimenez were arrested in Calexico. They were arraigned today on the indictment in El Centro, California, by United States Magistrate Judge Peter Lewis.
Augustin Enrique Cruz, the owner of the house in Calexico where the tunnel exit was discovered, and his grandmother, Eva Medina De Duarte, were arrested in Tucson, Arizona, the day after the tunnel discovery. They will appear before U.S. Magistrate Judge Karen Crawford, in San Diego, California, tomorrow at 2 p.m. for arraignment on the indictment.
Defendant Bertha Lidia Esquivel, who was arrested in Rialto, on March 24, appeared today in San Diego for a detention hearing; her matter was continued to Tuesday, April 12, before U.S. Magistrate Judge Jan Adler. Defendant Kenneth Wayne Olmos, Jr., was arrested in Arizona on March 25 and is pending removal and transfer to San Diego, California, for arraignment.
DEFENDANTS
Agustin Cruz, age 23, of Tucson, Arizona
Eva Medina De Duarte, age 74, of Tucson, Arizona
Joel Duarte-Medina, age 43, of Mexico
Manuel Gallegos-Jimenez, age 49, of Mexico
Bertha Lidia Esquivel, age 52, of Rialto, California
Kenneth Wayne Olmos Jr., age 33, of Tucson, Arizona
CHARGES
Count 1
Conspiracy To Distribute over 1,000 kilograms of marijuana 21 U.S.C 841 and 846
Maximum penalties:
10 year MM/life; 5 years of SR; $1,000,000 fine, $100 SA
Agustin Cruz
Eva Medina De Duarte
Joel Duarte-Medina
Manuel Gallegos-Jimenez
Bertha Lidia Esquivel
Kenneth Wayne Olmos Jr.
Count 2
Possession With Intent To Distribute 100 kilograms of marijuana 21 U.S.C. 841 and 18 U.S.C. 2
Maximum penalties: 5 year MM/40; 5 years of SR; $500,000 fine, $100 SA
MARCH 7, 2016 SEIZURE OF 1,389 POUNDS OF MARIJUANA
Agustin Cruz
Eva Medina De Duarte
Joel Duarte-Medina
Manuel Gallegos-Jimenez
Bertha Lidia Esquivel
Kenneth Wayne Olmos Jr.
Count 3
Possession With Intent To Distribute 100 kilograms of marijuana 21 U.S.C. 841 and 18 U.S.C. 2
Maximum penalties 5 year MM/40; 5 years of SR; $500,000 fine, $100 SA
MARCH 23, 2016 SEIZURE OF 1,532 POUNDS OF MARIJUANA
Agustin Cruz
Eva Medina De Duarte
Joel Duarte-Medina
Manuel Gallegos-Jimenez
Bertha Lidia Esquivel
Kenneth Wayne Olmos Jr.
Count 4
Conspiracy To Import over 1,000 kilograms of marijuana
21 U.S.C 960, 952, 963
Maximum Penalties: 10 year MM/life; 5 years of SR; $1,000,000 fine, $100 SA
Agustin Cruz
Eva Medina De Duarte
Joel Duarte-Medina
Manuel Gallegos-Jimenez
Bertha Lidia Esquivel
Kenneth Wayne Olmos Jr.
Count 5
Importation of 100 kilograms of marijuana
21 U.S.C. 952, 960 and 18 U.S.C. 2
Maximum Penalties: 5 year MM/40; 5 years of SR; $500,000 fine, $100 SA
MARCH 7, 2016 SEIZURE OF 1,389 POUNDS OF MARIJUANA
Agustin Cruz
Eva Medina De Duarte
Joel Duarte-Medina
Manuel Gallegos-Jimenez
Bertha Lidia Esquivel
Kenneth Wayne Olmos Jr.
Count 6
Importation of 100 kilograms of marijuana
Aiding & Abetting/Pinkerton Liability
21 U.S.C. 952, 960 and 18 U.S.C. 2
Maximum Penalties: year MM/40; 5 years of SR; $500,000 fine, $100 SA
MARCH 23, 2016 SEIZURE OF 1,532 POUNDS OF MARIJUANA
Agustin Cruz
Eva Medina De Duarte
Joel Duarte-Medina
Manuel Gallegos-Jimenez
Bertha Lidia Esquivel
Count 7
Conspiracy to Construct and Finance of Tunnel
18 U.S.C. 555(a) and (d)
Maximum Penalties: 20 years; 3 years of SR; $250,000 fine, $100 SA
Agustin Cruz
Count 8
Using Narcotics Tunnel 18 U.S.C. 555(c)
Maximum Penalties: 20 years; 3 years of SR; $250,000 fine, $100 SA
Agustin Cruz
Eva Medina De Duarte
Joel Duarte-Medina
Manuel Gallegos-Jimenez
Bertha Lidia Esquivel
Count 9
Conspiracy to Maintain/Use Drug-Related Premises
21 U.S.C. 856(a)(1) and 846
Maximum Penalties: 20 years; 3 years of SR; $250,000 fine, $100 SA
Agustin Cruz
Eva Medina De Duarte
Joel Duarte-Medina
Manuel Gallegos-Jimenez
Bertha Lidia Esquivel
Kenneth Wayne Olmos Jr.
Count 10
Maintain/Use Drug-Related Premises
21 U.S.C. 856 and 18 U.S.C. 2
Maximum Penalties: 20 years; 3 years of SR; $250,000 fine, $100 SA
Third Street Residence in Calexico
Agustin Cruz
Eva Medina De Duarte
Joel Duarte-Medina
Manuel Gallegos-Jimenez
Bertha Lidia Esquivel
Count 11
Maintain /Use Drug Related Premises
21 U.S.C. 856 and 18 U.S.C. 2
Maximum Penalties: 20 years; 3 years of SR; $250,000 fine, $100 SA
Horizon Residence in Calexico
Agustin Cruz
Eva Medina De Duarte
Joel Duarte-Medina
Manuel Gallegos-Jimenez
Bertha Lidia Esquivel
Kenneth Wayne Olmos Jr.
Count 12
Maintain/Use Drug Related Premises
21 U.S.C. 856 and 18 U.S.C. 2
Maximum Penalties: 20 years; 3 years of SR; $250,000 fine, $100 SA
Avenida Warehouse in Calexico
Agustin Cruz
Eva Medina De Duarte
Joel Duarte-Medina
Manuel Gallegos-Jimenez
Bertha Lidia Esquivel
Kenneth Wayne Olmos Jr.
AGENCIES
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations
Homeland Security Investigations, Calexico
U.S. Border Patrol, El Centro Sector
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Sikeston Man Sentenced on Federal Fraud ChargesRead the Press Release
St. Louis, MO – James Michael Arnold was sentenced to 30 months in prison on charges involving his false use of the name and Missouri Bar number of a licensed Missouri attorney to practice law.
According to court documents, James Michael Arnold graduated from the University of Missouri School of Law, Kansas City, in July 1992, but never passed the Missouri Bar Examination and has never been licensed to practice law in Missouri or elsewhere.
Between January 2010 and January 2014, James Michael Arnold fraudulently represented to individuals, law firms, legal staffing agencies and other businesses that he was a licensed attorney in order to gain employment as an attorney. As part of his scheme to defraud, Arnold used the name and Missouri Bar number of a licensed Missouri attorney to apply for jobs as an attorney and to file court documents. Arnold’s unsuspecting victims paid him for his fraudulent representation.
Additionally, for tax years 2011, 2012 and 2013, Arnold failed to file tax returns reporting the earnings from the illegal activity described. Arnold’s failure to file the required returns resulted in a tax loss of approximately $74,000.
James Michael Arnold’s scheme to defraud resulted in a loss to the victims of approximately $530,000.
Arnold, Sikeston, Missouri, pled guilty in January to one felony count of mail fraud, one felony count of aggravated identity theft and one count of failure to file tax returns. He appeared today for sentencing in St. Louis before United States District Judge E. Richard Webber.
This case was investigated by the United States Postal Inspection Service and Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Jennifer Roy handled the case for the U.S. Attorney's Office.
Sentencings for April 5 - 6, 2016Read the Press Release
Andrew Jivelekas, 60, of Worland, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on April 6, 2016 for wire fraud. Jivelekas appeared pursuant to a summons. He received 12 months imprisonment, to be followed by two years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $25,781.73. Jivelekas fraudulently obtained unemployment benefits from the Wyoming Department of Workforce Services, Unemployment Insurance Division ("Workforce Services"). Jivelekas invented a sham company and submitted quarterly reports to Workforce Services in which he falsely reported earnings by various purported employees, including himself, none of whom actually worked for the company. Jivelekas repeatedly filed for unemployment benefits in the names of the purported employees, claiming they had been laid off. This case was investigated by the U.S. Secret Service.
Dustin Blaine Headley, 25, of Arapahoe, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 5, 2016, for assault resulting in serious bodily injury. Headley was arrested in Arapahoe, Wyoming. He received 28 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Indian Affairs.
Luis Enrique Monreal-Lovatos, aka Luis Monreal-Lovatos, aka Carlos Rodriguez-Lovars, 37, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 5, 2016, for illegal re-entry of a previously deported alien into the United States. Monreal-Lovatos was arrested in Worland, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Travis Alan Schone, 36, of Riverton, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on April 5, 2016, for conspiracy to distribute 50 grams or more of methamphetamine and aiding and abetting. Schone was arrested in Fremont County, Wyoming. He received 39 months imprisonment, to be followed by four years of supervised release, and
was ordered to pay a $100.00 special assessment and restitution in the amount of $400.00. This case was investigated by the Wyoming Division of Criminal Investigation.
Roswell Man Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Jason Martinez, 27, of Roswell, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to methamphetamine trafficking charges under a plea agreement with the U.S. Attorney’s Office.
Martinez and his co-defendant Joseph Vallejos, 23, also of Roswell, were charged in a criminal complaint with conspiracy and possession of methamphetamine with intent to distribute in Sept. 2015, in Chaves County, N.M. According to the criminal complaint, on Sept. 10, 2015, Martinez and Vallejos sold quantities of methamphetamine to an undercover agent on the following dates: 15.3 grams on Sept. 10, 2015, 15 grams on Sept. 11, 2015, and 56.7 grams on Sept. 16, 2015. Vallejos was also charged with possessing a firearm during the Sept. 16, 2015 transaction.
Martinez and Vallejos were subsequently indicted on Dec. 17, 2015, and charged with conspiracy to distribute methamphetamine and three counts of distributing methamphetamine. The indictment also charged Vallejos with using a firearm in relation to a drug trafficking crime. The indictment included forfeiture allegations requiring Martinez and Vallejos to forfeit $3,000.00 to the United States.
During today’s proceedings, Martinez pled guilty to the indictment and admitted conspiring to sell a total of 87 grams of methamphetamine to an undercover agent in Chaves County in Sept. 2015.
At sentencing, Martinez faces a statutory minimum of five years and a maximum of 40 years in federal prison followed by not less than four years of supervised release. Martinez remains in custody pending a sentencing hearing which has yet to be scheduled.
Vallejos has entered a not guilty plea to the indictment and remains in custody pending trial which is currently scheduled for June 20, 2016. Charges in indictments are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces office of the DEA and the New Mexico State Police. Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Retired United States Postal Service Executive Sentenced to ProbationRead the Press Release
PLANO, Texas - U.S. Attorney John M. Bales announced today that a former United States Postal Service executive has been sentenced to probation for an offense committed in the Eastern District of Texas.
Russell Sykes, 64, of Boynton Beach, Florida, a retired executive level employee of the United States Postal Service, was sentenced to three years’ probation and was fined $5000 during a hearing before Judge Amos L. Mazzant on March 29, 2016.
According to information presented in court, Sykes had been employed by the Postal Service in an Executive Service position as Manager of the Surface Transportation Category Management Center in Largo, MD. Sykes retired from this position on May 31, 2011. Immediately before his retirement, Sykes was heavily involved, in accordance with his position as a manager for the Postal Service, in negotiating contracts with Alan Richey, Inc. (ARI), a company that leased trailers to the Postal Service to transport mail. After his retirement, Sykes represented ARI in matters related to contracts between ARI and the Postal Service in violation of the statute. As a result, Sykes was paid fees totaling $30,000 by ARI, and additional contracts were awarded to ARI. Federal law prohibits, for two years, former government employees who served in an executive level position from contacting or communicating with their former department or agency about any matter that was pending before that department or agency and over which the employee had official responsibility.
Area Special Agent in Charge Curtis Lembke, U.S. Postal Service OIG, Special Inquiries Division, stated, “Sykes used his former position with the Postal Service for his own personal gain. This criminal behavior is not tolerated, and the results of this investigation serve as a deterrent to others.”
This case was investigated by the United States Postal Service, Office of the Inspector General (OIG), and prosecuted by the United States Attorney’s Office of the Eastern District of Texas.
Racketeering Conspiracy Charged in Payday Lending CaseRead the Press Release
PHILADELPHIA – Charles M. Hallinan, 75, of Villanova, PA, and Wheeler K. Neff, 67, of Wilmington, DE, were charged by indictment, unsealed today, with two counts of conspiracy to violate the Racketeering Influenced and Corrupt Organizations Act (“RICO”) relating to “payday lending” businesses, announced United States Attorney Zane David Memeger. A third defendant, Randall Ginger, 66, a Canadian citizen, was charged with Hallinan and Neff in one count of conspiracy to commit mail fraud, wire fraud, and money laundering, as well as two counts of mail fraud and three counts of wire fraud. Hallinan and Ginger were also charged with nine counts of international money laundering.
According to the indictment, Hallinan and Neff participated in a conspiracy that violated the usury laws of Pennsylvania and other states and generated more than $688 million in revenues, between 2008 and 2013, from hundreds of thousands of customers, including residents of Pennsylvania which prohibits such loans. It is further alleged that Hallinan, Neff, and Ginger conspired to defraud nearly 1,400 people, who had sued one of Hallinan’s payday loan companies, into abandoning a lawsuit valued as high as $10 million.
Hallinan owned, operated, financed, and/or worked for more than a dozen businesses between 1997 and 2013 that issued and collected debt from small, short-term loans that were commonly known as “payday loans” because the customers were supposed to pay them back with their next paychecks. Hallinan’s companies allegedly charged customers about $30 for every $100 they borrowed, which meant that the annual interest rates on the loans often exceeded 700 percent. Pennsylvania and more than a dozen other states have passed laws criminalizing such loans as usurious. The indictment alleges that Hallinan and Neff conspired to evade such laws by, among other things, paying thousands of dollars each month to three Indian tribes to pretend that they were the actual payday lenders and claim that “tribal sovereign immunity” shielded their conduct from state laws and regulations.
Hallinan and Neff are also charged with helping another payday lender, Adrian Rubin, charged elsewhere, evade state anti-usury laws by entering into sham contracts with an Indian tribe that were designed to give the false impression that the tribe was the true lender.
Ginger, it is alleged, claimed to be a “hereditary chief” of one of the tribes that Hallinan and Neff used to try to hide Hallinan’s payday lending activity from state law enforcement officers and regulators. In 2010, a class action lawsuit was filed in Indiana against Apex 1 Processing, a payday lending company that Hallinan ran out of offices in Bala Cynwyd, Pennsylvania. According to the indictment, Hallinan offered to pay Ginger $10,000 every month to pretend that he owned Apex 1 and that Apex 1 had no assets, so the plaintiffs would settle their lawsuit for pennies on the dollar. Neff allegedly facilitated that scheme.
If convicted of all charges, Hallinan faces a possible advisory sentencing guideline range of at least 12 years in prison, three years of supervised release, a possible fine, and a $1,700 special assessment. Neff and Ginger both face sentencing guideline ranges of at least eight years in prison. Restitution may also be ordered.
The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, and Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant United States Attorneys Mark B. Dubnoff and Joel M. Sweet.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Queensbury Man Pleads Guilty to Tax EvasionRead the Press Release
ALBANY, NEW YORK – Jason Holcomb, age 46, of Queensbury, New York, pled guilty today to tax evasion, announced United States Attorney Richard S. Hartunian and Shantelle P. Kitchen, Special Agent in Charge of IRS-Criminal Investigation’s New York Field Office.
As part of his plea, Holcomb admitted that he willfully evaded the payment of income taxes he owed to the Internal Revenue Service for the 2002 to 2005 tax years. While working as a construction contractor, Holcomb concealed his assets by putting assets in the names of other people and dealing in cash, to try to hide his income from the government. As a result, Holcomb failed to pay $193,215 in taxes, which does not include interest and penalties that the IRS could assess.
Holcomb faces up to 5 years in prison, a maximum fine of $250,000, and a maximum term of post-imprisonment supervised release of 3 years when he is sentenced by United States District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Holcomb may also be ordered to pay restitution to the Internal Revenue Service.
This case was investigated by the New York Field Office of the IRS-Criminal Investigation, and is being prosecuted by Assistant U.S. Attorney Emily Farber.
Quakertown Man Charged with Defrauding Lehigh University Fraternities and SororitiesRead the Press Release
PHILADELPHIA – An indictment was filed today charging Albert Fisher, 76, of Quakertown, PA, with conspiring to defraud fraternities, sororities and fraternity alumni associations at Lehigh University, announced United States Attorney Zane David Memeger. The defendant is charged with one count of conspiracy to commit wire fraud, one count of wire fraud, and five counts of subscribing to false tax returns.
Fisher and Person #1 operated Fraternity Management Association (“FMA”), located in Bethlehem, PA, and allegedly created a fictitious consulting company, “Fisher and Associates,” which had FMA as its sole client. During the period charged, Person #1 was the Executive Director of FMA while Fisher was employed by FMA as both a full-time employee and as an independent contractor for Fisher and Associates. According to the indictment, between 2009 and 2013, Fisher and FMA’s Executive Director conspired to take money, as payment for future services, that was intended to pay for the operations and upkeep of the fraternities and sororities which included food services and the financial management of expenses. Instead of paying for future services, Fisher and the Executive Director allegedly misappropriated at least $1,461,777.96 in funds from FMA and the victim fraternities which he and the Executive Director used for their own personal purposes, including purchases of goods and services, vacation expenses, home furnishings, and designer clothing. Fisher allegedly lied to the victims about the money that was entrusted to FMA. When FMA ceased operations during the Spring of 2014, Fisher and the Executive Director caused an additional $990,157.41 in expenses for the fraternities, sororities and other victims, including Lehigh University, when the victims had to pay for operations and upkeep of the fraternities.
It is further alleged that Fisher filed tax returns for tax years 2009 to 2013 which failed to report $614,398 in income, which included the defendant’s personal expenses that were paid by FMA and consulting fees authorized by the Executive Director and paid on behalf of FMA.
If convicted, Fisher faces a maximum possible sentence of 50 years in prison, up to three years of supervised release, restitution, a possible fine, and a $700 special assessment.
The case was investigated by Internal Revenue Service Criminal Investigations and the FBI Allentown Resident Agency. It is being prosecuted by Assistant United States Attorney John Gallagher.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Porcupine Man Indicted for Assault on a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Porcupine, South Dakota, man has been indicted by a federal grand jury for Assaulting a Federal Officer.
Michael Lone Hill, age 27, was indicted on March 22, 2016. Lone Hill appeared before U.S. Magistrate Judge Daneta Wollmann on April 1, 2016, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to an incident on March 17, 2016, at Evergreen Housing, when Lone Hill used a vehicle to assault a law enforcement officer employed with the Oglala Sioux Tribe Department of Public Safety.
The charge is merely an accusation and Lone Hill is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, the Oglala Sioux Tribe Department of Public Safety, and the Federal Bureau of Investigation. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Lone Hill was released on bond pending trial. A trial date has been set for June 7, 2016.
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Pittsburgh Man Pleads Guilty to in Heroin and Crack Cocaine Trafficking ConspiracyRead the Press Release
PITTSBURGH – A Pittsburgh resident pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Sekou Brooks, 40, of Pittsburgh, Pa., pleaded guilty to two counts before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that from in and around December 2013, and continuing to in and around June 2014, in the Western District of Pennsylvania and elsewhere, Brooks conspired with others to distribute and possess with the intent to distribute more than 100 grams of heroin and more than 280 grams of crack cocaine.
Judge Hornak scheduled sentencing for Aug. 10, 2016 at 1:30 p.m. The law provides for a total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Troy Rivetti and Tonya Sulia Goodman are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the FBI Greater Pittsburgh Safe Streets Task Force, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Police Department conducted the investigation that led to the prosecution of Brooks.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Pine Ridge Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Pine Ridge, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Orville Red Feather, age 43, was indicted on March 22, 2016. Red Feather appeared before U.S. Magistrate Judge Daneta Wollmann on April 1, 2016, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Red Feather failing to register and update his registration as a convicted sex offender between January 1, 2016, and March 22, 2016, at Rapid City.
The charge is merely an accusation and Red Feather is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Red Feather was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for June 7, 2016.
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Philadelphia Man Charged in Two Bank RobberiesRead the Press Release
PHILADELPHIA - David Robinson, 42, of Philadelphia, PA, was charged today by indictment with two counts of bank robbery, announced United States Attorney Zane David Memeger.
According to the indictment, on March 19, 2016, Robinson robbed the PNC Bank at 4753 N. Broad Street in Philadelphia, of approximately $3,020. It is further alleged that on March 21, 2016, Robinson robbed the PNC Bank at 3244 N. Broad Street in Philadelphia, of $1,190.
If convicted of all charges, Robinson faces a maximum sentence of 40 years in prison, a possible fine, up to three years of supervised release, and a $200 special assessment.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Salvatore L. Astolfi.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Man Sentenced for Cyberstalking and “Sextorting” Massachusetts College StudentRead the Press Release
BOSTON – A Pennsylvania man was sentenced today in U.S. District Court in Boston for engaging in a “sextortion” campaign against a Boston-area college student.
James F. Connor V, 20, of West Chester, Penn., was sentenced by U.S. District Court Judge William G. Young to time served, three years of supervised release, the first 10 months to be served in home confinement, a $5,000 fine and 500 hours of community served. In January 2016, Connor pleaded guilty to one count of cyberstalking and one count of extortion.
In 2012, Connor and the victim met through social media and developed an online relationship. In the course of that relationship, the victim sent Connor naked pictures of herself through Snapchat and engaged in sexually explicit video chats with him using FaceTime. Connor preserved many of these images without her consent. After the relationship ended, Connor attempted to continue communications with the victim and initiated a campaign of harassment and intimidation. He threatened to harm her physically and harm her reputation by publicly disseminating the sexually explicit images. Connor also repeatedly threatened to commit suicide if the victim did not take his calls, and sent her pictures of himself holding a knife to his throat with blood, which was later determined to be fake, dripping down his neck.
In September 2015, Connor escalated his campaign of harassment when he began blackmailing the victim and threatening to send the sexually explicit images to her parents and Twitter followers if she did not send additional naked pictures and engage in sexually explicit video chats with him. As part of Connor’s cyberstalking and sextortion campaign, he sent the victim a detailed list of sexual demands, which included, among other things, that she send him five sexually explicit pictures and have five sexually explicit video chat sessions per week over a five week period. Connor also insisted that she break up with her current boyfriend.
Connor frequently employed a telephone and text message spoofing, or anonymizing, application that allows users to easily change telephone numbers to conceal their identity. In October 2015, Connor was arrested and charged via criminal complaint after the victim reported the threats and prior pattern of harassment to law enforcement authorities.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Jordi de Llano of Ortiz’s Major Crimes Unit.
Owner of Virginia Beach Tourist Attractions Sentenced for Tax EvasionRead the Press Release
NORFOLK, Va. – David A. Parker, 49, of Virginia Beach, was sentenced today to 24 months in prison for evading income tax assessment and payment. Parker was also ordered to pay restitution in the amount of $1,070,358.26 and a fine of $50,000.
Parker pleaded guilty on Oct. 22, 2015. According to court documents, Parker is the owner of Rudee Inlet Jet Skis and Adventure Parasail, Inc. – two companies that are in the business of providing jet ski rentals and parasailing tours at the Virginia Beach oceanfront to tourists and residents. During the relevant timeframe, Parker was also a partner in Duck Parasail, Inc., located in Duck, North Carolina, which provided similar services. In a statement of facts filed with the plea agreement, Parker admitted that from 2005 until 2011, he completely failed to file individual federal income tax returns and, also declined to file business income tax returns after 2007. For several years, Parker ignored attempts by the Internal Revenue Service to recoup his tax balance. In February 2012, an IRS Revenue Officer – again attempting to recover Parker’s outstanding tax balance – interviewed Parker about his failure to file individual income tax returns and his current finances. Parker failed to disclose all of his assets to the officer and maintained that he had little money, thus could not pay his tax balance. In the weeks after his meeting with the revenue officer, and rather than repay any portion of his tax balance, Parker traveled to casinos in Florida and Atlantic City, where he purchased nearly $50,000 in chips. Despite this meeting with the Revenue Officer, Parker continued to choose not to file his tax returns for the next several years. The combined tax due and owing resulting from Parker’s failure to file individual and business income tax returns for tax years 2005 through 2011 is over $1 million.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Thomas Jankowski, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen. Assistant U.S. Attorney V. Kathleen Dougherty prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:15-cr-113.
Owner and Captain of Commercial Fishing Vessel Indicted for Clean Water and Ship Pollution ViolationsRead the Press Release
The owner and captain of the commercial F/V Native Sun, were indicted Thursday for conspiracy, as well as violations of the Clean Water Act (CWA) and Act to Prevent Pollution from Ships (APPS).
According to the indictment, starting in 2011 and continuing into 2013, Bingham and Randall Fox discharged and caused other crewmembers to illegally discharge oil and other pollutants into waters of the United States, coastal waters near Blaine, Washington, and the open ocean where the ship operated.
The discharge of oil and other bilge wastes are regulated by the CWA and APPS to protect the nation's waterways, port and ocean water quality. The discharge of oils and other pollutants in waters of the United States is prohibited absent a CWA permit. Open ocean discharges are also prohibited without using the oil-water separation (OWS) equipment specified in APPS.
The indictment describes that Bingham Fox owned the Native Sun and, as part of its dockside maintenance, ordered crew members to discharge oil and other bilge wastes overboard into the harbor and adjoining shorelines of Blaine. Bingham Fox’s son, Randall Fox, served both as a crewmember and later a captain aboard the Native Sun and ordered crewmembers to discharge oil and bilge wastes overboard while the vessel was underway on fishing trips. The Native Sun had neither a CWA permit to discharge wastes nor the OWS equipment on-board, as required by APPS.
The maximum penalty for each count of violating the Clean Water Act is three years in prison and a fine of $250,000. Knowing violations of APPS are punishable by up to six years in prison and a $250,000 fine.
The defendants will be summoned to appear in U.S. district court in Seattle on April 14, 2016.
This case is being prosecuted by Trial Attorney Brandy Parker and Senior Trial Attorney Todd W. Gleason of the Environment and Natural Resources Division. The prosecution is the result of an investigation by the U.S. Coast Guard Sector Puget Sound and the Coast Guard Investigative Service Northwest Region.
An indictment contains only allegations against an individual and, as with all defendants, the Foxes must be presumed innocent unless and until proven guilty.
Orlando Man Sentenced to over Thirteen Years for Firing on Police OfficersRead the Press Release
Orlando, FL – U.S. District Judge Carlos E. Mendoza today sentenced Johan O. Lopez (29, Orlando) to 13 years in federal prison for possessing with intent to distribute marijuana and discharging a firearm in furtherance of a drug trafficking offense. He pleaded guilty on January 19, 2016.
According to court documents, on May 29, 2015, officers from the Orlando Police Department executed a search warrant at Lopez’s downtown Orlando residence. Prior to entering, the officers announced themselves and the fact they had a search warrant. As the officers entered Lopez’s apartment, Lopez fired two gunshots. The officers found Lopez next to a handgun, which appeared to have an unused round jammed in the firing chamber. They also found approximately one pound of marijuana in Lopez’s residence.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Orlando Police Department. It was prosecuted by Assistant United States Attorney Vincent S. Chiu.
Okreek Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Randolph J. Seiler announced that an Okreek, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on April 4, 2016, by U.S. District Judge Roberto A. Lange.
Robert J. LaVallie, a/k/a Robert Gross, age 34, was sentenced to 15 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. LaVallie also forfeits interest in the firearms seized during a search of his residence.
LaVallie was originally indicted by a federal grand jury on November 13, 2014. A superseding indictment was filed on November 10, 2015, charging LaVallie with Assault with a Dangerous Weapon, and Brandishing, Carrying or Possessing a Firearm During and In Relation to a Crime of Violence. He pled guilty to Assault with a Dangerous Weapon on January 7, 2016.
The conviction arose from an incident on May 31, 2014, in Todd County, South Dakota, when LaVallie and the victim got into a verbal argument. LaVallie began yelling at the victim and pointing at her, telling their children, “If I shoot myself, it’s because of this right here.” The children ran out of the house and the victim went to phone for help. LaVallie was carrying a handgun in a holster on his waist. He withdrew the firearm, waved it around, and threatened to kill the victim. He then grabbed two assault-type rifles and started putting clips into them. The victim left the house, called the police, and LaVallie was taken into custody. A search warrant of the residence resulted in the seizure of several firearms and ammunition.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
LaVallie was immediately turned over to the custody of the U.S. Marshals Service.
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North Jersey Real Estate Developer Admits Soliciting Bribe to Palisades Park OfficialRead the Press Release
NEWARK, N.J. – A real estate developer and landlord of commercial buildings in Palisades Park, New Jersey, today admitted soliciting a $50,000 bribe payment to a Palisades Park borough official, U.S. Attorney Paul J. Fishman announced.
Chung S. Kho, 68, of Fort Lee, New Jersey, pleaded guilty to an information charging him with one count of using facilities in interstate commerce to promote bribery.
According to the documents filed in this case and statements made in court:
Beginning in October 2010, Kho met with an individual (“Individual #1”) who sought to open a karaoke business at a multi-unit commercial building in Palisades Park owned by Kho. During the initial discussions between Kho and Individual #1 about opening the karaoke business, Kho guaranteed that there would be no problem in obtaining a change-of-use approval from Palisades Park to operate a karaoke business at the location.
Kho admitted today that, between October and December 2010, he used his cellphone to facilitate the offer of a bribe payment by Individual #1 to a borough official in Palisades Park for a favorable decision by the borough official regarding the change-of-use request. According to Kho, that offer involved a payment of $30,000 to obtain approval for one karaoke business and $50,000 to obtain approval for two karaoke businesses. Individual #1 initially was hesitant to make the payment. By the time Individual #1 agreed to pay the bribe, Kho informed him that it was too late to make the payment.
The charge of using facilities in interstate commerce to promote bribery carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 18, 2016.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Garret Mountain Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher; special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi; and special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation.
The government is represented by Assistant U.S. Attorney Jacques S. Pierre of the Special Prosecutions Division in Newark.
Defense counsel: Edward T. Kang, Esq., Alston & Bird LLP
New York Tax Return Preparation Business Owner Sentenced to Prison for Preparing False Tax ReturnsRead the Press Release
A Staten Island, New York, tax return preparer and business owner was sentenced to prison today for preparing false federal income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Alabi Gbangbala aka Babatunde Alabi Babaia, 52, was sentenced by U.S. District Court Judge Carol Bagley Amon to serve 18 months in prison, followed by one year of supervised release, and ordered to pay $178,209 in restitution to the Internal Revenue Service (IRS). Gbangbala pleaded guilty on June 1, 2015, to one count of preparing a false tax return.
According to court documents and in-court statements, Gbangbala was the operator of Broadfield, a tax return preparation business located in Staten Island. For tax years 2008 and 2009, Gbangbala prepared false federal individual income tax returns for Broadfield clients by, among other things, failing to report accurate exemptions, falsifying business receipts and losses on Schedules C, and inflating or fabricating charitable contributions and unreimbursed employee expenses. He also filed false tax returns for himself by underreporting his income for tax years 2008 through 2010.
Acting Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Mark S. McDonald and Christopher P. O’Donnell of the Tax Division, who are prosecuting the case.
New Haven Man Sentenced to More Than 7 Years in Prison for Illegal Gun PossessionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RAJOUN JULIOUS, also known as “Snuggles,” 23, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 87 months of imprisonment, followed by three years of supervised release, for .
According to court documents and statements made in court, in the early morning hours of September 1, 2015, an investigation of an armed robbery of three male victims in the vicinity of 824 Elm Street led New Haven Police to JULIOUS, who was sitting in a parked car on Morse Street. After JULIOUS was ordered out of the car and frisked for weapons, officers searched the car and found a loaded Smith and Wesson .38 Special and a loaded Davis Industries model P380, .380 caliber semi-automatic pistol. Officers also found three iPhones underneath the car and two iPhones in nearby bushes. One of the iPhones was identified as stolen during the armed robbery. In an interview, JULIOUS admitted that the .380 caliber pistol was his.
JULIOUS, a member of the Reade Street, or “R2,” group, has a violent criminal history that includes felony convictions for first degree assault, intimidating a witness, and carrying a dangerous weapon. In 2009, JULIOUS shot a victim twice at close range. In 2010, JULIOUS was found with a firearm shortly after a group of males shot a victim who was riding his bike.
JULIOUS has been detained since September 1, 2015. On December 3, 2015, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
National Reentry Week Recognized in Middle GeorgiaRead the Press Release
The United States Department of Justice has designated April 24 – 30, 2016 as National Reentry Week. Major steps have been taken to make the criminal justice system just, fair, and effective at reducing recidivism. In recognition of National Reentry Week, the Macon Reentry Coalition (MRC), a local nonprofit that connects returning citizens to resources, will host free events open to the public in Macon, Georgia.
“Supporting successful reentry is an essential part of our mission to promote public safety,” Attorney General Loretta Lynch stated. “If we can reduce recidivism by helping individuals return to productive, law-abiding lives, we will reduce crime across this country, make our prisons safer, and make our neighborhoods better places to live.”
“The successful assimilation of returning citizens back into our communities, with new skills and attitudes, is beneficial both to the communities and to the returning citizens,” Acting United States Attorney G.F. Peterman, III commented. “I am proud of the ongoing participation of my office in this initiative.”
An official proclamation by Mayor Robert Reichert designating National Reentry Week in Macon-Bibb County will be held Thursday, April 21 at City Hall in Downtown Macon at 11 a.m.
“We have the people and resources right here in Middle Georgia to help returning citizens get back on the right track and be successful,” said Macon-Bibb County Mayor Robert Reichert. “Our entire community will benefit from people getting back to work and having a reduction in the crime rate.”
On Wednesday, April 27, the Macon Reentry Coalition meeting and resource fair will be held at the Goodwill Helms Career Center located at 240 Broadway. The meeting will begin at 9 a.m. with a community resource fair immediately following. Local representatives from education, housing, counseling, health, veteran services and employment agencies will answer questions and assist in making referrals. Light refreshments will be available.
“Macon-Bibb and the Middle Georgia region contain vast and critical resources to help ensure the successful reintegration of our returning citizens,” Macon Reentry Coalition CEO Todd Robinson noted. “Many of these men and women are talented, hard-working individuals that just need counsel and direction. Since 2008, the Macon Reentry Coalition has brought resources together to help reentrants become productive citizens who can support their families. Stronger families equates to a safer community.”
The Bureau of Prisons will be coordinating reentry events at their facilities across the country during National Reentry Week. The U.S. Attorney’s Office plans to host private reentry events in the district as well.
Questions regarding National Reentry Week or the Macon Reentry Coalition can be directed to Brittney Kish Lightsey, Community Relations Assistant, at 478-621-2735 or [email protected].
The Macon Reentry Coalition is a 501(c)(3) nonprofit organization, a collaborative effort among federal, state, and local agencies, mentors and advocates, faith-based and philanthropic organizations, and community resource partners to empower returning citizens.
Nashville Tax Return Preparer Indicted for Tax FraudRead the Press Release
Nicole Bond Hicks, 45, of Nashville, Tenn., was indicted yesterday by a federal grand jury in Nashville, Tenn., on charges related to preparing and filing false income tax returns, announced David Rivera, U.S. Attorney for the Middle District of Tennessee and Tracey D. Montaño, Special Agent in Charge, IRS-Criminal Investigation. Hicks was charged with 14 counts of aiding and assisting in the preparation of false tax returns for other individuals and one count of interfering with the administration of the internal revenue laws.
According to the indictment, Hicks was the owner of America’s Tax Table, a tax preparation business in Nashville, Tennessee. During the period of around 2007 through 2011, Hicks prepared and caused to be filed approximately 3,700 tax returns on behalf of her clients. Specifically, the indictment charges that she aided in the preparation of at least 14 false tax returns for other individuals from January 2010 through March 2011. The fraudulent returns inflated or created fictitious medical and dental expenses, cash charitable contributions, and fictitious, unreimbursed employee business expenses. These fictitious expenses created hundreds of thousands of dollars in false expenses and deductions and allowed clients to obtain income tax refunds they were not legally entitled to.
If convicted, Hicks faces up to three years in prison and a $250,000 fine on each count.
The case was investigated by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Thomas J. Jaworski is representing the United States.
An indictment is merely an accusation and is not evidence of guilt. Defendants are presumed innocent unless and until proven guilty in a court of law.
Mission Woman Sentenced to 60 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on April 5, 2016, by U.S. District Judge Roberto A. Lange.
Danielle Lane Provancial, age 21, was sentenced to 60 months in custody, followed by 4 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Provancial was indicted by a federal grand jury on September 15, 2015. She pled guilty on January 20, 2016, to distributing 50 grams or more of methamphetamine.
Beginning in March of 2015, Provancial received and distributed methamphetamine in South Dakota. The individuals who provided Provancial with large amounts of methamphetamine knew she intended to engage in further distribution. Provancial had other dealers working for her, and she carried a .22 pistol for protection because she was worried that she would be robbed while selling methamphetamine. It was reasonably foreseeable to Provancial that more than 50 grams of methamphetamine would be distributed during the course of this conspiracy.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorneys Ted L. McBride and SaraBeth Donovan prosecuted the case.
Provancial was immediately turned over to the custody of the U.S. Marshals Service.
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Mission Man Sentenced to 120 Months for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on April 4, 2016, by U.S. District Judge Roberto A. Lange.
Leon Lloyd Farmer, age 35, was sentenced to 120 months in custody, 5 years of supervised release, a $1,000 fine, and a $100 special assessment to the Federal Crime Victims Fund.
Farmer was originally indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on May 19, 2015. He pled guilty on January 7, 2016, to distributing 500 grams or more of methamphetamine.
Beginning no later than November of 2013, Farmer received distributable quantities of methamphetamine from other individuals who knew he intended to engage in further distribution of the methamphetamine. Farmer provided methamphetamine to others, knowing they intended to engage in further distribution of the methamphetamine within South Dakota. It was reasonably foreseeable to Farmer that more than 500 grams of methamphetamine would be distributed during the course of his conspiracy.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorneys Ted L. McBride and SaraBeth Donovan prosecuted the case.
Farmer was immediately turned over to the custody of the U.S. Marshals Service.
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Mission Man Sentenced for Assault with a Dangerous Weapon and Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, man convicted of two counts of Assault with a Dangerous Weapon and Aiding and Abetting, one count of Prohibited Person in Possession of Ammunition, and two counts of Failure to Register as a Sex Offender was sentenced on March 28, 2016, by U.S. District Court Judge Roberto A. Lange.
Richard Timothy Fool Bull, age 38, was sentenced to 117 months in custody, followed by 5 years of supervised release, $500 in special assessments to the Federal Crime Victims Fund, and $661.25 in restitution.
On February 10, 2015, Fool Bull was indicted by a federal grand jury for Failure to Register as a Sex Offender. On March 11, 2015, Fool Bull was indicted by a federal grand jury for Discharge of a Firearm During Crime of Violence, Felon in Possession of a Firearm, Failure to Register as a Sex Offender, and six counts of Assault with a Dangerous Weapon. He pled guilty on January 7, 2016, to two counts of Assault with a Dangerous Weapon and Aiding and Abetting, one count of Prohibited Person in Possession of Ammunition, and two counts of Failure to Register as a Sex Offender.
Fool Bull pled guilty to a violation of Sexual Abuse of a Minor on October 20, 1998, in U.S. District Court for the District of South Dakota. Between November 14, 2014, and December 9, 2014, and between January 31, 2015, and March 1, 2015, Fool Bul1, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under Federal Law, failed to properly register as a sex offender.
On November 14, 2014, Fool Bull was released from federal custody following incarceration for supervised release violations in an unrelated case. Fool Bull was directed to report to a halfway house in Sioux Falls immediately following his release. Fool Bull did not report to the halfway house, and he absconded from his federal supervision. Fool Bull was arrested on December 9, 2014. Fool Bull did not register as a sex offender with any jurisdiction, as required, between the date of his release from federal custody on November 14, 2014, and the date of his arrest on December 9, 2014.
On January 13, 2015, Fool Bull was released from federal custody following incarceration for supervised release violations in an unrelated case. Fool Bull was placed at the Glory House in Sioux Falls. On January 14, 2015, Fool Bull registered as a sex offender with the Sioux Falls Police Department. On January 31, 2015, Fool Bu1l absconded from the Glory House. Fool Bull was arrested on May 26, 2015. Fool Bull did not register as a sex offender with any jurisdiction, as required, between January 31, 2015, and the date of his arrest on May 26, 2015.
On the evening of February 27, 2015, Fool Bull drove to Sunrise Apartments in Mission, with James Iron Ring and a juvenile. Iron Ring and the juvenile remained in the vehicle while Fool Bull approached the apartment. Fool Bull stood outside of the apartment and discharged a firearm eight times into the apartment. Iron Ring then drove Fool Bull and the juvenile away from the apartments.
Five individuals were inside of the apartment at the time of the shooting. One of the bullets struck a victim in the arm. The bullet was slowed by traveling through the walls of the apartment and the bullet did not break the skin on the victim’s arm.
James Iron Ring has pled guilty to one count of Assault with a Dangerous Weapon and Aiding and Abetting. Iron Ring’s sentencing is currently scheduled for June 1, 2016.
This case was investigated by the U.S. Marshals Service and Rosebud Sioux Tribal Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Fool Bull was immediately turned over to the custody of the U.S. Marshals Service.
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