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Thursday 18 February 2016
Two Convicted for Fraudulently Obtaining over $50,000 in Federal Housing Assistance FundsRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced the convictions of RHODA RENAE ROBERTSON, age 47, and LOUELLA ROBERTSON, age 68, both of Baton Rouge, Louisiana, who pled guilty before U.S. District Judges Shelley Dick and John deGravelles, respectively, to theft of government funds, in violation of Title 18, United States Code, Section 641. RHODA ROBERTSON was convicted on February 16, 2016. LOUELLA ROBERTSON was convicted on February 18, 2016.
According to the factual basis presented to the Courts in connection with their guilty pleas, LOUELLA ROBERTSON and her daughter RHODA ROBERTSON stole over $38,000 in United States Department of Housing and Urban Development (HUD) Section 8 Housing Choice Voucher funds. The ROBERTSONS submitted documents to the East Baton Rouge Parish Housing Authority which contained false representations for the purpose of obtaining HUD Section 8 Housing Choice Voucher funds to which they were not entitled. During their respective re-arraignment hearings, the ROBERTSONS admitted that they fraudulently obtained more than $38,000 in HUD voucher funds between July of 2011 and December of 2014.
Prior to July of 2011, RHODA ROBERTSON engaged in similar conduct and obtained an additional $12,445.25 in HUD Section 8 Housing Choice Voucher funds to which she was not entitled. In all, these defendants fraudulently obtained approximately $50,996 in HUD Section 8 Housing Choice Voucher funds.
U.S. Attorney Green stated: “I am proud to work with the U.S. Department of Housing and Urban Development, Office of Inspector General, and the East Baton Rouge Parish Housing Authority, to aggressively identify and prosecute individuals who steal money from programs designed to help those truly in need of housing assistance. I look forward to continuing our work with HUD-OIG and other investigative agencies to help fight Section 8 fraud.”
This investigation is being conducted by the U.S. Department of Housing and Urban Development, Office of Inspector General. The matter is being prosecuted by Assistant United States Attorney Peter J. Smyczek.
Two California Residents Admit Participating in Mortgage Loan Modification SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MEHDI MOAREFIAN, a.k.a. “Michael Miller,” 36, and DANIEL SHIAU, a.k.a. “Scott Decker,” 30, both of Irvine, Calif., pleaded guilty yesterday in Bridgeport federal court to conspiring to defraud homeowners across the United States who were seeking mortgage loan modifications.
According to court documents and statements made in court, MOAREFIAN, SHIAU and others jointly operated a series of California-based companies that falsely purported to provide home mortgage loan modifications and other consumer debt relief services to numerous homeowners in Connecticut and across the United States in exchange for upfront fees. The defendants did business, at various times, as “First Choice Financial Group, Inc.,” “First Choice Financial,” “First Choice Debt,” “Legal Modification Firm,” “National Freedom Group,” “Home Care Alliance Group,” “Home Protection Firm,” “Hardship Center,” “Network Solutions Center, Inc.,” “Premiere Financial Center,” “Premiere Financial,” “Rescue Firm,” “International Research Group LLC,” “Hardship Solutions,” “American Loan Center,” “Loan Retention Firm,” “Clear Vision Financial,” “Green Tree Financial Group,” “Green Tree Financial,” “Enigma Fund, Inc.,” “National Aid Group,” “Southern Chapman Group LLC,” “Save Point Financial,” “Best Rate Financial Solutions,” “Best Rate Financial Solution,” “Best Rate Financial,” “Best Rate Finance Group,” “Nation Star Financial,” and “Nation Star Fin Group.”
Acting as representatives of these entities, the defendants and their co-conspirators cold-called homeowners and offered to provide mortgage loan modification services to those who were having difficulty repaying their home mortgage loans. The defendants charged homeowners fees that typically ranged from approximately $2,500 to $4,300 for their services. To induce homeowners to pay these fees, the defendants falsely represented that the homeowners already had been approved for mortgage loan modifications on extremely favorable terms; the mortgage loan modifications already had been negotiated with the homeowners’ lenders; the homeowners qualified for and would receive financial assistance under various government mortgage relief programs, including the Troubled Asset Relief Program and the Home Affordable Modification Program; and if for some reason the mortgage loan modifications fell through, the homeowners would be entitled to a full refund of their fees.
In fact, the homeowners had not been preapproved for mortgage loan modifications with lenders, mortgage loan modifications had not been negotiated with the lenders, homeowners had not qualified for and did not receive any financial assistance through government mortgage relief programs, and homeowners did not receive a refund of their fees upon request. Few homeowners ever received any type of mortgage loan modification through the defendants’ companies, and few homeowners received refunds of their fees.
MOAREFIAN, SHIAU and others involved in the scheme used pseudonyms and periodically changed their business and operating names to evade detection. The defendants also directed homeowners to mail their checks to addresses and mail boxes that the defendants and their co-conspirators had set up in states other than California.
On January 21, 2016, a grand jury in New Haven returned an indictment charging MOAREFIAN, SHIAU and five other California residents with conspiracy and fraud offenses related to this scheme. The defendants were arrested on January 26.
MOAREFIAN and SHIAU each pleaded guilty to one count of conspiracy to commit mail and wire fraud, an offense that carries a maximum term of imprisonment of 20 years. They also have agreed to pay restitution of approximately $3 million. Sentencing is scheduled for May 11, 2016.
To date, investigators have seized approximately $350,000 from various bank accounts, approximately $362,000 from a Bitcoin account, a $100,000 cashier’s check, and a 2013 Ferrari 458 Italia.
This matter is being investigated by the U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Postal Inspection Service, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), U.S. Department of Housing and Urban Development – Office of Inspector General, Federal Housing Finance Agency – Office of Inspector General, and Federal Bureau of Investigation, with assistance from the Oklahoma Attorney General’s Office.
The case is being prosecuted by Assistant U.S. Attorneys Avi M. Perry and Sarah P. Karwan.
Two Anchorage men indicted for assaulting a Deputy United States Marshal with a shotgunRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin R. Feldis announced today that two Anchorage men were indicted by a federal grand jury in Anchorage for assaulting a Deputy United States Marshal with a deadly and dangerous weapon while he was engaged in his official duties.
The two defendants named in the indictment are Leigaga Selau Amituanai, aka “G,” 26, and Sulu Faamolemole, aka “Chase,” 26, both of Anchorage. According to the indictment, Amituanai and Faamolemole assaulted a United States Marshal on Feb. 11, 2016.
According to the criminal complaint filed in federal court late last week, the Deputy United States Marshal was conducting surveillance the morning of Feb. 11, 2016, near Mountain View Drive and North Park Street in Anchorage, when Amituanai pointed a sawed-off shotgun directly at the Deputy United States Marshal from a vehicle that Faamolemole was driving. When Anchorage Police Department officers and the Deputy United States Marshal tried to pull over Amituanai and Faamolemole a short time later, Amituanai and Faamolemole attempted to elude officers, driving down an embankment onto the Glenn Highway exit ramp at Bragaw Street before being apprehended. A sawed-off shot gun, a loaded pistol, and ammunition were recovered from the vehicle.
Assistant U.S. Attorney Andrea Hattan, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both, for the charged offense. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
The United States Marshal Service (USMS) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), both branches of the Department of Justice, and the Anchorage Police Department (APD) conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Trustee of Retirement Plan Convicted of Filing False ReportsRead the Press Release
Raymond K. Mays, 52, of Crossville, Tennessee, pleaded guilty today to three counts of making a false statement on forms that were filed on behalf of an employee retirement plan. Mays was an employee of Eye Centers of Tennessee, a medical services company based in Crossville and served as a trustee of that company’s 401(k) retirement plan, and had a fiduciary duty to that plan’s beneficiaries.
During a plea hearing before U.S. District Court Judge Todd J. Campbell, Mays admitted that the employee retirement plan made loans to a limited liability company that he controlled, made payments to another company owned by Mays, and leased property to a third company owned by Mays’ wife. Mays acknowledged he personally oversaw these transactions and that these transactions were prohibited by the Employee Retirement Income Security Act of 1974 (“ERISA”) due to the relationship between Mays and these various companies. Mays further admitted that he took steps to conceal the fact that the retirement plan had engaged in financial dealings with entities that he owned and/or controlled, including failing to disclose his relationship with these entities to the third party administrator that helped to prepare the retirement plan’s ERISA filings.
During today’s hearing, Mays also acknowledged signing three false reports that were filed on behalf of the employee retirement plan with the Internal Revenue Service and the U.S. Department of Labor, including one report that falsely stated that the retirement plan had not made any loans and two reports that falsely stated that the retirement plan had not engaged in any prohibited transactions with an interested party.
Mays faces up to 5 years in prison and a fine of up to $250,000 on each count. Mays will be sentenced by Judge Campbell on May 13, 2016. The sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
The case was investigated by the Employee Benefits Security Administration of the U.S. Department of Labor and by the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
Three Prince George’s County Defendants Indicted in Foreclosure Prevention Fraud SchemeRead the Press Release
Greenbelt, Maryland – A federal grand jury returned an indictment late yesterday against Rene de Jesus de Leon, age 47, and his wife, Pedrina Rodriguez Bonilla, age 37, both of Silver Spring, Maryland, and Ana Maritza Gomez, age 43, of Hyattsville, Maryland, on charges arising from a residential mortgage fraud scheme.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG); Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG); Chief Henry P. Stawinski of the Prince George’s County Police Department; Postal Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service - Washington Division; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to the 10-count indictment and court documents, from at least January 2011 to August 2015, the defendants told homeowners who wanted to modify their mortgage loans and prevent foreclosure of their homes that -- for an upfront fee, which was usually between $2,000 and $6,000, subsequent monthly payments and a back-end consulting fee -- the defendants could lower the homeowners’ monthly payments and allow them to pay off their loans more quickly. The defendants told the victims to make monthly payments to the defendants and to companies they controlled, in lieu of to the homeowners’ lenders, as part of a “principal reduction consulting program.” The companies controlled by defendants were named Marketing Multiservices LLC and Innovative Solutions Services LLC.
According to the indictment and court documents, the conspirators mailed monthly invoices to the homeowner victims. Some of the victims paid Gomez in person each month at her residence, or a co-conspirator would go to the home of the victim to pick up the monthly payment. The defendants told the victims not to open any mail from their lenders and instead provide it to the conspirators. The indictment alleges, however, that the defendants did not negotiate with lenders of behalf of the homeowners.
According to the affidavit supporting the complaint against Bonilla and Gomez, one victim who was actually current on his mortgage made payments to the program, in lieu of his lender, totaling approximately $50,000, including the initial fee. The victim stopped making payments when he received a foreclosure notice from his lender. Another victim told investigators that she made payments to the program totaling at least $20,000, but nevertheless was evicted from her house, had her cars towed, her dogs boarded and her belongings put on the front lawn.
The defendants face a maximum sentence of 20 years in prison for conspiring to commit mail and wire fraud, and 20 years in prison for each of nine counts of mail fraud. De Leon and Bonilla are currently detained. Initial appearances for the three defendants have not yet been scheduled.
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.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao-md/financial-fraud-and-identity-theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended the FHFA-OIG, HUD-OIG, Prince George’s County and Montgomery County Police Departments, U.S. Postal Inspection Service and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant United States Attorney Jolie F. Zimmerman, who are prosecuting the case.
Three Members of Matusiewicz Family Receive Life SentencesRead the Press Release
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, Kevin L. Perkins, Special Agent in Charge, Federal Bureau of Investigation, Baltimore Division, and Nathaniel McQueen, Jr., Colonel, Delaware State Police, announced today that United States District Court Judge Gerald A. McHugh sentenced Defendants David T. Matusiewicz, Lenore Matusiewicz, and Amy Gonzalez to each serve a term of life imprisonment.
Following a five week jury trial this past summer, Defendants were convicted of conspiracy, interstate stalking resulting in death, and cyberstalking resulting in death. This was the first case in the nation where defendants were convicted of cyberstalking resulting in death.
After a lengthy sentencing hearing today in Delaware, Judge McHugh concluded that David Matusiewicz and his father, Thomas Matusiewicz, acted with premeditated intent in the February 11, 2013, murder of his ex-wife, Christine Belford, at the New Castle County Courthouse. Thomas Matusiewicz also shot and killed Laura “Beth” Mulford, who accompanied Belford to the courthouse that morning. Judge McHugh determined that, based on defendant’s repeated criminal conduct and the serious nature of the offense, which included “contempt for the law,” only a life sentence would protect the community and Christine Belford’s children.
Defendants Lenore Matusiewicz and Amy Gonzalez likewise received life sentences from Judge McHugh. Defendant Lenore Matusiewicz was sentenced at her bedside last week at Jefferson Medical Center in Philadelphia. Defendant Amy Gonzalez was sentenced after her brother’s sentence was imposed. Judge McHugh concluded that Defendant Gonzalez’s overall stalking conduct was inextricably intertwined with the conduct of her family members and that it was reasonably foreseeable to Defendant Gonzalez that an act of violence would occur when her brother, mother, and father left for Delaware in early February 2013.
“The life sentences imposed by Judge McHugh were necessary to punish the defendants and to protect Christine Belford’s children and our community," said Acting U.S. Attorney Weiss. "We hope that these sentences provide some comfort to the victims’ families, and we thank the law enforcement and legal communities for their contributions to the successful prosecution of this case.”
"The Matusiewicz family caused a lot of unnecessary harm in this case, killing and injuring innocent people for no reason," said Special Agent in Charge Perkins. "This ground-breaking prosecution and investigation shows people who actively take part in planning crimes, even though they don't pull the trigger, will be held accountable."
“The Delaware State Police supports the decision of the jury and the judge for holding all defendants in this case fully accountable for their actions," said Colonel McQueen Jr. "The successful prosecution and sentencing of the defendants responsible in the first federal conviction of cyber-stalking resulting in death is truly welcomed news for all federal, state and local law enforcement involved in the investigation. This investigation is a landmark case that emphasizes the impact and benefit to the community when all agencies are working together.”
According to the evidence presented at trial and sentencing, David Matusiewicz and Christine Belford were involved in divorce and child custody proceedings in the Family Court of Delaware in 2007. In August 2007, David Matusiewicz and his mother, Lenore Matusiewicz, kidnapped the three young children born of his marriage to Christine Belford and fled to South America. In March 2009, David and Lenore Matusiewicz and the young children were found living in a motor home in Nicaragua. David and Lenore Matusiewicz were arrested and prosecuted in Delaware, and the children were returned to the care of their mother, Christine Belford. In September 2009, David and Lenore Matusiewicz each pleaded guilty to crimes relating to their kidnapping of the children.
In December 2009, David Matusiewicz was sentenced in federal court to 48 months in prison, to be followed by five years of supervision by the U.S. Probation Office. In the days following his December 2009 sentencing, David Matusiewicz began to orchestrate, from his prison cell, a course of conduct designed to stalk, harass, and intimidate Christine Belford and her children. He enlisted his father, mother, sister and various other persons in this effort, which stretched from December 2009 to February 2013. The Matusiewicz family’s stalking campaign included broad dissemination -- by mail, email, websites, Internet postings, and other means – of false and defamatory allegations against Christine Belford.
After his release from federal custody, David Matusiewicz resided in southern Texas. On January 8, 2013, David Matusiewicz sought and received permission from the United States Probation Office in Texas to travel to Delaware to attend a child support arrearage hearing he had requested. That hearing was scheduled for February 11, 2013. David Matusiewicz never informed the probation officer that he intended to travel to Delaware with Thomas and Lenore Matusiewicz.
On the morning of February 11, 2013, David and Thomas Matusiewicz drove to a hotel parking garage near the New Castle County Courthouse in a Honda CRV, which contained ammunition, a military style knife, three sets of restraints of progressively smaller sizes, a bullet proof vest, an electric shock device, binoculars, and photographs of Christine Belford’s children and residence. After entering the courthouse lobby at approximately 7:30 a.m., David Matusiewicz entered and stayed in the security screening line, while Thomas Matusiewicz moved around the lobby, occasionally approaching and talking to David Matusiewicz.
Shortly before 8:00 a.m., David Matusiewicz passed through courthouse security screening and walked to another floor of the building. Thomas Matusiewicz remained in the lobby, where he shot Christine Belford multiple times as she entered the courthouse lobby, killing her. He then shot Laura Mulford multiple times as she attempted to flee. After a shootout during which he shot and injured two Capitol Police officers, Thomas Matusiewicz died on the sidewalk of the courthouse of a self-inflicted gunshot wound.
This case was investigated by the FBI and the Delaware State Police, and is being prosecuted by Assistant U.S. Attorneys Jamie M. McCall and Shawn A. Weede.
St. Thomas Man Sentenced to 120 Months in Prison for Possession of Firearm by Convicted FelonRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez sentenced today Tashimo Scatliffe, 33, to 120 months’ imprisonment and three years of supervised release for possession of a firearm by a convicted felon, United States Attorney Ronald W. Sharpe announced. Judge Gomez also ordered Scatliffe to pay a $100 special assessment and perform 400 hours of community service.
On October 20, 2015, Scatliffe pleaded guilty to possession of a firearm by a convicted felon. According to the plea agreement filed with the court, on February 2, 2015, Virgin Islands Police Department (VIPD) officers responded to a domestic disturbance at the Paul M. Pearson Housing Community on St. Thomas. Upon arrival, officers observed Scatliffe leaving the building where the call had originated. The complainant confirmed that Scatliffe was in possession of a firearm. Police searched the area and located a firearm and a spent casing. Analysis of these items verified that the spent casing had been fired from the recovered firearm. In addition, Scatliffe’s DNA was found on the firearm. Scatliffe is a convicted felon and therefore cannot legally possess a firearm in the Virgin Islands. He was previously convicted of felony offenses in the Superior Court of the Virgin Islands.
“This is a great example of federal and local agencies sharing resources to combat violent gun crime and eradicate those who want to destroy our communities,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Carlos A. Canino.
This case was investigated by the ATF and the VIPD. It was prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
Siblings Charged in Mortgage Fraud SchemeRead the Press Release
PITTSBURGH - Two residents of Allegheny County, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges of wire and bank fraud conspiracy and bank fraud, United States Attorney David J. Hickton announced today.
The two-count superseding indictment, returned on Feb. 16, named Janna Nassida, 45, of West Mifflin, Pa., and James Nassida, 48, of Pittsburgh, Pa., as the defendants in this case.
According to the indictment, from 2002 to 2008 James Nassida and his sister Janna Nassida knowingly conspired with other individuals known to the grand jury to defraud lenders and consumers. James and Janna Nassida worked at Century III Home Equity, a mortgage broker firm. The fraud scheme involved the submission of loan applications to lenders that contained material misrepresentations about the borrowers’ financial conditions, such as inflating borrowers’ incomes and assets. James and Janna Nassida, along with others who worked at Century III, also submitted bogus supporting documentation for the misrepresentations contained in the applications, as well as appraisals that overstated the values of the properties serving as collateral for the loans.
The law provides for a maximum total sentence of 60 years in prison, a fine of $2,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Mortgage Fraud Task Force conducted the investigation leading to the Indictment in this case. The Mortgage Fraud Task Force is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry. Federal law enforcement agencies participating in the Mortgage Task Force include the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigations; the United States Department of Housing and Urban Development, Office of Inspector General; the United States Postal Inspection Service; and the United States Secret Service. Other Mortgage Fraud Task Force members include the Allegheny County Sheriff's Office; the Allegheny County District Attorney’s Office; the Pennsylvania Attorney General's Office, Bureau of Consumer Protection; the Pennsylvania Department of Banking; the Pennsylvania Department of State, Bureau of Enforcement and Investigation; and the United States Trustee's Office.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Ship Captain Pleads Guilty to Felony Obstruction Related to Pollution from Tanker Ship Traveling to CharlestonRead the Press Release
A Filipino citizen and the captain of the tanker ship, T/V Green Sky, pleaded guilty today to one felony count in federal court in Charleston, South Carolina, for obstructing a U.S. Coast Guard investigation into pollution crimes aboard the vessel.
Genaro Anciano, 52, who was the highest ranking officer aboard the ship, pleaded guilty to one count of Obstruction of an Agency Proceeding. The charge stems from a Coast Guard investigation in late August 2015 into the bypass of pollution prevention equipment, including the use of a “magic device,” on the Green Sky. In court papers, the defendant stated that members of the ship’s engine room, including a senior officer, admitted to illegally discharging overboard. These admissions occurred prior to the August 2015 Coast Guard inspection at the Port of North Charleston. During the investigation, Anciano made several false and misleading statements to the Coast Guard to cover up the illegal conduct.
The T/V Green Sky is a 30,263 gross ton, ocean-going vessel that operates as a petroleum and chemical tanker. The vessel is approximately 600 feet in length and is registered in Liberia. The vessel is owned by an entity incorporated in the Marshall Islands. Over the course of several days, the normal operation of the Green Sky generates thousands of gallons of bilge wastes that are contaminated with petroleum products and oil residues. These bilge wastes must be removed for the vessel to operate safely.
Both the United States and Liberia are parties to the MARPOL treaty, which regulates the overboard discharge of bilge waste. It was prohibited to discharge bilge wastes from the T/V Green Sky without first running that effluent through the ship’s oily water separator. According to the MARPOL treaty, all overboard discharges from the vessel’s bilges had to be recorded in the T/V Green Sky’s oil record book. A bypass of the oily water separator, which is not recorded in the oil record book, jeopardizes the accuracy and integrity of that document. It is a separate federal crime for oceangoing vessels to enter a U.S. port with a false oil record nook.
Anciano’s sentencing has not been scheduled.
The case was investigated by the U.S. Coast Guard Investigative Service with assistance from inspectors from Sector Charleston as well as Legal from U.S. Coast Guard in Miami. The case is being prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division and Assistant U.S. Attorney Matt Austin of the U.S. Attorney’s Office for the District of South Carolina in Charleston.
Sex Offender Sentenced to 139 Months in Prison for Assaulting a Federal OfficerRead the Press Release
TUCSON, Ariz. – Today, Howard James Sawyer, 41, of Iowa City, Iowa, was sentenced by U.S. District Judge Cindy K. Jorgenson to 139 months in prison. Sawyer had previously pleaded guilty to assaulting a federal officer.
On February 2, 2015, Sawyer was incarcerated in the federal penitentiary in Tucson, Ariz., because of a conviction for failure to register as a sex offender. When informed that his request for a housing reassignment was denied he became angry and punched a Corrections Officer in the eye. The attack caused the officer to suffer permanent vision impairment.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Jesse Figueroa, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-15-00897-CKJ-EJM
RELEASE NUMBER: 2016-013_Sawyer
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Sentencings for February 11 - February 18, 2016Read the Press Release
James Patrick Mahoney, 31, of Torrington, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on February 18, 2016, for being a felon in possession of a firearm. Mahoney was arrested in Torrington, Wyoming. He received 63 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $300.00 fine and a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Maria Lynn Caparotta, 25, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on February 16, 2016, for possession with intent to distribute less than 50 grams of heroin. Caparotta was arrested in Cheyenne, Wyoming. She received 41 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Cheyenne Police Department.
Simone Marie Mandan, 20, of Riverton, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 11, 2016, for assault resulting in serious bodily injury. Mandan was arrested in Riverton, Wyoming. She received 33 months imprisonment, to be followed by two years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Indian Affairs.
San Clemente, California Man Pleads Guilty to Conspiracy to Distribute 15 Kilograms of CocaineRead the Press Release
BOISE – Christopher “Farley” Woods, 57, of San Clemente, California, pleaded guilty today to conspiracy to distribute cocaine, U.S. Attorney Wendy J. Olson announced. Woods was indicted by a federal grand jury in Boise on August 11, 2015.
According to the plea agreement, Woods admitted that between 2008, and June 9, 2015, he conspired to distribute cocaine by supplying co-conspirators in Idaho and Utah with 15 kilograms of cocaine. He also admitted to selling each kilogram of cocaine for $35,000. As part of his plea agreement, Woods agreed to forfeit 1.4 million dollars in cash proceeds, his residence in Orange County, California, $77,400 in seized currency, and three million shares of stock.
The charge of conspiracy to distribute cocaine is punishable by at least five years, but not more than forty years in prison, a maximum fine of $5,000,000, and at least four years of supervised release.
Sentencing is set for May 24, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Drug Enforcement Administration, U.S. Marshals Service Asset Forfeiture Division, Blaine County Narcotics Enforcement Team, Blaine County Sheriff’s Office, and the Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force.
San Antonio Man and Woman Charged in Alleged Mail Theft and Financial Institution Fraud SchemeRead the Press Release
In San Antonio this week 31-year-old Michael McKinney had his initial appearance before U. S. Magistrate Judge Henry J. Bemporad on charges of possession of stolen mail, access device fraud, financial institution fraud and aggravated identity theft announced United States Attorney Richard L. Durbin, Jr., and U.S. Postal Inspection Service Team Leader Michael R. Martinez-Partida.
McKinney’s co-defendant, 30-year-old Jennifer Burns, had her initial appearance before Judge Bemporad on February 2, 2016. Burns is charged with possession of stolen mail, financial institution fraud and aggravated identity theft.
As alleged in the indictment, on or about June 28, 2015, McKinney and Burns were caught in possession of stolen mail, including stolen checks, from various San Antonio mailboxes. Prior to that date, the defendants utilized information from stolen mail, changed the payee name on stolen checks, and cashed the checks at various financial institutions using counterfeit drivers’ licenses.
Both defendants remain in custody. Upon conviction, McKinney and Burns each face up to 5 years in prison and a maximum $250,000 fine for the possession of stolen mail charge; each face up to 30 years in prison and a maximum $1,000,000 fine for the financial institution fraud charge; and each face a mandatory consecutive 2 years in prison and a $250,000 fine for the aggravated identity theft charge. In addition, McKinney faces up to 10 years in prison and a maximum $250,000 fine for the access device fraud charge.
“Theft of U.S. Mail is a serious offense and a violation of federal law. Postal Inspectors work vigorously to identify and bring to justice those responsible for committing this criminal act,” stated Team Leader Michael R. Martinez-Partida of the U.S. Postal Inspection Service in San Antonio.
If you believe you are a victim of mail theft, please contact the U.S. Postal Inspection Service at 1-877-876-2455 or at www.postalinspectors.uspis.gov to file a complaint.
Assistant United States Attorney Thomas P. Moore is prosecuting this case on behalf of the Government.
A criminal indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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Saint Paul Man Indicted for Dealing Firearms without a LicenseRead the Press Release
United States Attorney Andrew M. Luger today announced a federal indictment charging EITAN BENJAMIN FELDMAN, 28, for illegally dealing in firearms without a license and lying on at least nine firearms transaction records (Form 4473).[1] The defendant is expected to appear later today before Magistrate Judge Mayeron in United States District Court in Minneapolis, Minn.
“There is far too much gun violence in the Twin Cities,” said U.S. Attorney Luger. “Violent crimes involving guns are often committed by people who cannot legally obtain a firearm, but they find a way. According to today’s indictment, Eitan Feldman was one of those ways. This defendant engaged in the business of dealing guns without a license. He didn’t conduct background checks on the people to whom he sold the guns, and at least three of the guns were connected to Twin Cities crime scenes. Thanks to the dedicated special agents of the ATF, Feldman today is in custody and there is one less backdoor through which potential criminals can get a gun.”
“Today’s arrest should send a message to unlicensed firearm dealers who put the public at risk each time they sell a firearm to a potential criminal,” said ATF St. Paul Field Division Special Agent in Charge James Modzelewski. “They are recklessly circumventing the criminal background check system and it is a crime.”
According to the indictment and documents filed in court, between January 2014 and January 2016, FELDMAN engaged in a regular pattern and practice of unlawfully dealing in firearms without a license by repeatedly purchasing firearms and offering them for resale within days of getting them. FELDMAN routinely purchased firearms offered by out-of-state Federal Firearms Licensees (FFLs) through websites such as gunbroker.com, an online firearms auction site. FELDMAN arranged to have the firearms transferred to L.E. Gun Sales, a FFL in Minnesota, where he received and took possession of the guns after completing and signing the appropriate documentation and submitting to a National Instant Criminal Background System (NICS) check.
According to the indictment and documents filed in court, during the same time period, FELDMAN regularly listed and offered the same firearms for sale – often at a higher price than what he paid – on armslist.com, a website that allows individuals to list firearms for sale. Of the 41 guns FELDMAN purchased and re-sold during this time, the average time he actually possessed a gun before offering it for resale was only nine days.
According to the indictment and documents filed in court, FELDMAN would sometimes include on his for-sale listings on armslist.com a false story indicating that he had actually owned a particular firearm for much longer than he had or concoct a reason why he was then selling the gun. For example, on one listing for a 20-guage pump-action shotgun that FELDMAN had possessed for only two days before listing on armslist.com, FELDMAN wrote that he, “is a gun collector, has had the shotgun for two years, never shot it.” On another listing for a .38 caliber handgun that he had possessed for only seven days before listing for resale, FELDMAN wrote, “bought a couple of years ago but only taken to the range a few times.” In yet another listing for a semiautomatic 9mm carbine rifle that he had possessed for only six days, FELDMAN claimed that the rifle had been “sitting in [his] closet for a few months” and that he had not fired it for about four months.
According to the indictment and documents filed in court, in July 2015, an ATF Special Agent told FELDMAN that some of the firearms he had received at L.E. Gun Sales, and subsequently sold, had been linked to crime scenes within days of FELDMAN taking possession of and selling the guns.
According to the indictment and documents filed in court, on April 26, 2015, the Minneapolis Police Department (MPD) recovered a loaded Ruger .380 pistol when responding to a gun-pointing assault. The weapon was submitted for National Integrated Ballistics Information Network (NIBIN) analysis, which showed that the weapon had also been used on March 19, 2015, in a shots-fired incident from which MPD recovered two spent shell casings. FELDMAN had purchased this same weapon on March 12, 2015, only seven days before the shots-fired incident and 45 days before it was recovered from the gun-pointing crime scene.
According to the indictment and documents filed in court, on May 28, 2015, MPD responded to a narcotics call, during which they recovered a Bersa Thunder .380. This same gun had been purchased by FELDMAN 18 days earlier on May 10, 2015.
According to the indictment and documents filed in court, on August 25, 2015, Bloomington Police (BPD) identified and stopped several vehicles involved in the transport of at least 50 pounds of marijuana from California to Minnesota. In one of the vehicles, BPD officers recovered a backpack containing two loaded handguns, one of which was a Taurus .38-caliber revolver. One of the suspects admitted that both guns belonged to him and that he had bought the Taurus revolver from a private seller in Minneapolis. That same gun was purchased only three months earlier by FELDMAN on May 10, 2015.
According to the indictment and documents filed in court, on July 17, 2015, ATF Special Agents executed a search warrant at FELDMAN’s home in Saint Paul, Minn., and seized five shotguns. FELDMAN had completed the transfer of each shotgun at L.E. Gun Sales and had listed and offered each shotgun for resale on armslist.com between two and 25 days of receiving them at L.E. Gun Sales. ATF Special Agents also recovered three firearm bills of sale, showing that FELDMAN had sold four firearms to three different individuals. FELDMAN had received the four firearms at L.E. Gun Sales between three and 24 days before reselling them.
According to the indictment and documents filed in court, during at least nine transactions at L.E. Gun Sales in which FELDMAN received the four firearms seized during the search and 23 other firearms that he offered for resale, he falsely represented his residential address on the Form 4473.
According to the indictment and documents filed in court, on October 2, 2015, ATF Special Agents served FELDMAN with a written Warning Notice of Unlicensed Firearms Dealing in Violation of Federal Law, warning him that his continuous and repetitive firearm-related activity appears to make him an unlicensed “dealer in firearms” and that he should stop immediately or risk criminal prosecution. Despite the warning, FELDMAN continued his unlawful dealing in firearms on at least eight more occasions.
According to the indictment and documents filed in court, on December 3, 2015, ATF Special Agents made an undercover purchase of a .38-caliber revolver from FELDMAN, a gun that he had received 10 days prior. The undercover officer paid FELDMAN $260 cash in the parking lot of a local shopping mall. FELDMAN never sought to verify the identity of the purchaser, nor did he make any effort to determine if the buyer was prohibited by law from purchasing a firearm. FELDMAN conducted no background check.
According to the indictment and documents filed in court, on January 21, 2016, ATF Special Agents made an undercover purchase of a Hi-Point 9mm semiautomatic carbine rifle from FELDMAN, a gun that he had received seven days prior. The undercover officer paid FELDMAN $250 cash in the parking lot of a local shopping mall. FELDMAN never sought to verify the identity of the purchaser, nor did he make any effort to determine if the buyer was prohibited by law from purchasing a firearm. Again, FELDMAN conducted no background check.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Minneapolis Police Department, Saint Paul Police Department and Bloomington Police Department.
Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
Defendant Information:
EITAN BENJAMIN FELDMAN, 29
Saint Paul, Minn.
Charges:
- Willfully engaging in the business of dealing in firearms without a license, 1 count
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Making a false statement during a firearm purchase, 9 counts
[1] The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Sacramento Man Found Guilty of Federal Charge of Producing Child Pornography that Was Used in Online Ads for Prostitution ServicesRead the Press Release
LOS ANGELES – A federal jury this afternoon convicted a Sacramento man of producing child pornography in a case in which his co-defendant previously pleaded guilty to the sex trafficking of the 16-year-old victim.
Antonio Dickerson, 26, was found guilty of one count of sexual exploitation of a minor for production of child pornography, an offense that carries a mandatory minimum sentence of 15 years and a maximum sentence of 30 years in federal prison.
Dickerson – who was also known by several aliases, including “Girbaud,” “Bohanlin” and “Mayor Marlow” – is scheduled to be sentenced by United States District Judge Stephen V. Wilson on May 2.
Previously in this case, Dickerson’s co-defendant – D’Antoine Thomas, 26, also of Sacramento – pleaded guilty to sex trafficking of a minor. Thomas faces a mandatory minimum sentence of 10 years and a maximum sentence of life in federal prison when he is sentenced by Judge Wilson on March 14.
The victim in the case was 16 when she met Thomas in Sacramento in 2010. She soon started working for Thomas as a prostitute in Northern California. In April 2011, Dickerson transported Thomas, the victim and another prostitute to Orange County. During this trip, Dickerson directed the 16-year-old victim and another prostitute to simulate sex acts, which he photographed and posted on a website to advertise prostitution services.
“No child should be subjected to this type of exploitation,” said United States Attorney Eileen M. Decker. “Protecting our nation’s most vulnerable, especially minors, by aggressively investigating and prosecuting child exploitation crimes is a top priority of the Justice Department.”
The jury that convicted Dickerson today of producing child pornography also acquitted him of a charge of sex trafficking of a minor.
This case is the result of an investigation by the FBI and Sacramento Sherriff’s Department.
Rio Rancho Man Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Trevor Bianchini, 24, of Rio Rancho, N.M., was sentenced today in federal court in Albuquerque, N.M., for unlawfully possessing a firearm and ammunition. Bianchini was sentenced to 40 months in federal prison followed by three years of supervised release.
Bianchini was arrested in March 2015, on a two-count indictment charging him with (1) being a felon in possession of firearms and ammunition, and (2) possession of body armor by a person who had been convicted of a felony violent crime offense. According to the indictment, Bianchini committed the offenses on May 24, 2014, in Bernalillo County, N.M. At the time, Bianchini was prohibited from possessing firearms, ammunition, or body armor because he previously had been convicted of burglary of a vehicle, conspiracy to commit burglary of a vehicle, and two counts of residential burglary.
On Aug. 18, 2015, Bianchini pled guilty to both counts of the indictment without the benefit of a plea agreement.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department. Assistant U.S. Attorney Jacob Wishard prosecuted the case.
Rio Arriba County Man Sentenced to Five Years for Federal Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Eugene Vigil, 37, of Truchas, N.M., was sentenced this morning in federal court in Santa Fe, N.M., to 60 months in prison followed by four years of supervised release for his heroin trafficking conviction.
Vigil was arrested on May 5, 2014, on an indictment charging him with participation in a heroin trafficking conspiracy and heroin trafficking. On Aug. 27, 2015, Vigil entered a guilty plea to a heroin distribution charge and admitted distributing more than 100 grams of heroin.
In his plea agreement, Vigil admitted purchasing ten ounces of heroin in Feb. 2014, with the intention of reselling and distributing the heroin to others in and around Rio Arriba County, N.M. According to the plea agreement, on Feb. 25, 2014, law enforcement officers went to Vigil’s residence inquiring about heroin. Vigil agreed to show the officers where he kept his heroin and led them to four guardrails along New Mexico Highway 76. There Vigil showed the officers where he hid his heroin and surrendered approximately 219.9 grams of heroin to the officers.
This case was investigated by the Albuquerque office of the DEA with assistance from the Albuquerque Police Department and the Bernalillo County Sheriff’s Office.
The case was prosecuted by Assistant U.S. Attorney Timothy S. Vasquez 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 trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Richard Johnson sentenced to 12 months and one day in prison for filing a false tax returnRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that Richard Z. Johnson Jr. was sentenced Wednesday to 12 months and one day in prison for filing a false federal income tax return.
Johnson, 59, of Mansfield, La., was sentenced by U.S. District Judge S. Maurice Hicks Jr. on a one-count bill of information charging him with making or subscribing a false tax return. He was also sentenced to one year of supervised release and ordered to pay $275,184 in total restitution of his back taxes. According to the September 21, 2015 guilty plea, Johnson reported a total income of $126,197 on his 2011 U.S. individual tax return but willfully failed to report additional income in the amount of $78,717.
The prison sentence was based on a tax loss of approximately $107,000 attributable to criminal violations of federal tax laws. The plea agreement covers full restitution of all delinquent back taxes, including interest and penalties.
“Mr. Johnson filed a false tax return where he willfully failed to report a significant portion of his income,” Ms. Finley stated. “Filing false returns is a serious crime, and my office will continue to identify and prosecute those who violate our tax laws.”
“The filing and timely payment of income tax returns is an obligation that all Americans should take seriously,” said Special Agent in Charge of IRS Criminal Investigation, Jerome R. McDuffie. “Mr. Johnson is an attorney, a long-time prosecutor, and was well aware of these requirements. One of the responsibilities of citizenship is to abide by our nation’s tax laws. Our agency will continue to work with the United States Attorney’s Office to aggressively investigate allegations of tax crimes and prosecute those who fail to file returns and pay their fair share. Today’s sentence is a reminder that no one is above the law.”
The IRS conducted the investigation. Assistant U.S. Attorneys William J. Flanagan and Seth D. Reeg prosecuted the case.
Resident Alien from Mexico Sentenced to 70 Months for Federal Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Francisco Hernandez-Hernandez, 24, a resident alien from Chihuahua, Mexico, who resides in Albuquerque, N.M., was sentenced this morning in federal court in Santa Fe, N.M., to 70 months in prison for his heroin trafficking conviction. He will be deported after completing his prison sentence.
Hernandez-Hernandez was arrested on May 4, 2014, on an indictment charging him with participation in a heroin trafficking conspiracy and using communication devices to facilitate drug trafficking crimes. On Oct. 13, 2015, Hernandez-Hernandez entered a guilty plea to a heroin distribution conspiracy charge and admitted being a member of a heroin distribution conspiracy.
In his plea agreement, Hernandez-Hernandez admitted joining the conspiracy in Dec. 2013, and participated in its activities until April 2014. Hernandez-Hernandez acknowledged that he delivered and sold heroin provided by organizers and managers of the conspiracy. On a typical day, he sold heroin to 30 customers. Hernandez-Hernandez also provided direction and guidance to less experienced deliverymen and helped coordinate delivery of the conspiracy’s heroin.
The plea agreement states that in April 2014, Hernandez-Hernandez traveled to California at the direction of the conspiracy’s organizer. In California, Hernandez-Hernandez purchased 750 grams of heroin which was concealed in a loudspeaker box. During his return to New Mexico, he detoured to Colorado where he left the heroin in a relative’s home after learning that law enforcement authorities were investigating the conspiracy’s drug trafficking activities. Hernandez-Hernandez was subsequently detained by law enforcement authorities and the heroin he left in Colorado was surrendered to law enforcement.
This case was investigated by the Albuquerque office of the DEA with assistance from the Albuquerque Police Department and the Bernalillo County Sheriff’s Office.
The case was prosecuted by Assistant U.S. Attorney Timothy S. Vasquez 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 trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Previously Deported Mexican National Sentenced to Five Years for Federal Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Juan Reyes-Abarca, 31, a Mexican national from Tepic, Nayarit, Mexico, illegally residing in Albuquerque, N.M, was sentenced this morning in federal court in Santa Fe, N.M., to 70 months in prison for his heroin trafficking conviction. He will be deported after completing his prison sentence.
Reyes-Abarca was arrested on April 3, 2014, on a criminal complaint charging him with unlawfully reentering the United States after being convicted of an aggravated felony. According to the criminal complaint, Reyes-Abarca was arrested in Bernalillo County, N.M., while driving another person to retrieve heroin. It further alleged that Reyes-Abarca was deported in Dec. 2006, after he was convicted on state heroin trafficking charges in Bernalillo County. Reyes-Abarca subsequently was indicted and charged with conspiracy to distribute more than 100 grams of heroin.
On May 14, 2015, Reyes-Abarca pled guilty to participating in a conspiracy to distribute heroin. In his plea agreement, Reyes-Abarca admitted that in Jan. 2014, he joined a conspiracy that acquired and distributed heroin in Bernalillo County. His role in the conspiracy was to order and obtain heroin from suppliers and he frequently “processed bulk heroin received from suppliers by ‘cutting’ or diluting the heroin with sugar or other inert substances, dividing the … heroin into smaller portions, and re-packaging the heroin into small plastic bags for further distribution.” Reyes-Abarca also admitted that he also delivered and sold heroin himself.
This case was investigated by the Albuquerque office of the DEA with assistance from the Albuquerque Police Department and the Bernalillo County Sheriff’s Office.
The case was prosecuted by Assistant U.S. Attorney Timothy S. Vasquez 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 trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
President of Office Equipment Leasing Company Pleads Guilty for Engaging in Multi-Million Dollar Fraud SchemeRead the Press Release
Earlier today, Michael Conway, the President of Choice Office Solutions LLC, pleaded guilty to wire fraud in connection with a scheme where he forged numerous lease agreements to defraud an individual investor and De Lage Landen Financial Solutions Partner (DLLFSP) of more than $3.5 million. Pursuant to his plea agreement with the government, Conway has agreed that he is liable to pay restitution in the amount of $3,555,493.40 to the individual investor and $1,203,516 to DLLFSP. When sentenced, Conway faces up to 20 years in prison.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“Through a web of lies, deceit and forgeries, Michael Conway induced an individual investor and a lending firm to invest millions of dollars with his company. Conway presented his unsuspecting victims with forged lease agreements and represented to them that he had entered into lucrative contracts to lease office equipment with more than 50 companies, including law firms, universities, and a major league baseball franchise, when in reality, a number of these agreements were worthless,” stated United States Attorney Capers.
“Conway swindled investors to the tune of more than $3.5 million through a series of fraudulent business agreements and lies. Today’s plea and agreement to pay restitution should serve as a warning to others who seek to profit through deception,” stated FBI Assistant Director-in-Charge Rodriguez.
According to court filings and facts presented at the plea hearing, between March 2014 to August 2015, Conway forged lease agreements with various companies in the business of leasing office equipment, and then used these fraudulent agreements to obtain financing from private investors. As part of the scheme, he induced an individual investor to become partners with him in the leasing business. Conway would then purportedly secure a lease from a company, present the signed lease and invoices to the individual investor, who would provide funds to purchase the office equipment to be leased. In this manner, Conway presented the individual investor with leases from approximately 58 companies, including law firms, universities, hospitals, and hotels, and the individual investor paid Conway approximately $3.5 million to purchase office equipment. In reality, most of the leasing agreements that Conway provided to the individual investor were fraudulent, and Conway pocketed most of the individual investor’s money.
One of the fraudulent leasing agreements was purportedly with the New York Mets. Relying on it, the individual investor wire transferred approximately $500,000 to Conway’s bank account to purchase office equipment. Conway then used the same forged lease agreement, and a forged authorization letter from the New York Mets purportedly signed by Jeffrey Wilpon, the team’s Chief Operating Officer, to obtain financing from DLLFSP. Based on these fraudulent documents, DLLFSP wire transferred a total of approximately $313,000 to Conway’s bank account. Through this and other forgeries, Conway defrauded DLLFSP of more than $1 million.
Today’s guilty plea took place before United States District Judge William F. Kuntz.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Winston Paes and David Pitluck are in charge of the prosecution.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit ww.StopFraud.gov.
The Defendant:
MICHAEL CONWAY
Age: 40
Verona, New JerseyE.D.N.Y. Docket No. 16-CR-052 (WFK)
Police Detective Arrested on Drug ChargesRead the Press Release
COLUMBUS, Ohio – An area police detective was arrested without incident this morning on charges that he allegedly possessed with the intent to distribute controlled substances.
Tye L. Downard, 43, of Westerville, allegedly made more than 20 deliveries of narcotics between October 2015 and February 2016, including heroin, cocaine, marijuana and Percocet pills.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division, John F. Oleskowicz, Special Agent in Charge, U.S. Department of Justice Office of the Inspector General, Chicago Field Office, Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration (DEA) and Ohio Attorney General Mike DeWine announced the charges.
According to court documents, Downard was employed as a detective at the Reynoldsburg Police Department throughout the investigation, which began after the FBI Public Corruption Task Force received information that Downard was using his official position to engage in illegal activity.
It is alleged that, on 21 occasions between October 2015 and February 2016, Downard delivered drugs to an individual to sell. The complaint further alleges that Downard seized blue-and-white Percocet pills during a search warrant and provided blue-and-white Percocet pills to the individual to sell two days later. Likewise, Downard was involved in the execution of a search warrant that yielded several green glass canning-style jars containing harvested marijuana buds. The next day, Downard allegedly provided the individual with four green glass canning-style jars containing harvested marijuana buds.
Possession with intent to distribute controlled substances is a crime punishable by up to 20 years in prison.
U.S. Attorney Stewart commended the FBI, Ohio Bureau of Criminal Investigation (BCI), Department of Justice OIG and DEA for their investigative work, as well as Assistant U.S. Attorneys Peter Glenn-Applegate, Salvador A. Dominguez, and Jessica W. Knight, who are prosecuting the case.
A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Pittsburgh Man Sentenced to Probation for Selling Uninspected PoultryRead the Press Release
PITTSBURGH -A local resident has been sentenced in federal court to two years’ probation with special conditions on his conviction of transporting poultry without inspection, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Xia Vue, 84, of Pittsburgh, Pa.
According to information presented to the court, the defendant had been slaughtering poultry at a dilapidated residential home and was selling the poultry in commerce to retail markets and individual customers. The poultry products sold by the defendant had not been inspected by the United States Department of Agriculture, as required by law.
Prior to imposing sentence, Judge Cohill emphasized the importance of food safety and said that the special conditions of Vue’s probation are necessary to prevent the defendant from continuing to slaughter poultry for commerce.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Department of Agriculture, Office of the Inspector General for the investigation leading to the successful prosecution of Vue.
Pittsburg, Kan., Man Sentenced for Distributing Child PornRead the Press Release
WICHITA, KAN. – A Pittsburg, Kan., man was sentenced Thursday to 96 months in federal prison for distributing child pornography, U.S. Attorney Barry Grissom said.
John Tyler Gariglietti, 32, Pittsburg, Kan., pleaded guilty to one count of distributing child pornography. In his plea, he admitted he used a computer in his home in Pittsburg to access a file sharing network. He stored images of child pornography on his computer that were available to other users on the network. He told investigators he had been collecting child pornography since 2011.
Grissom commended the Wichita Police Department, the Kansas Internet Crimes Against Children Task Force, Homeland Security Investigations and Assistant U.S. Attorney Jason Hart.
Philadelphia Man Charged with Jumping BailRead the Press Release
PHILADELPHIA - Calvin Johnson, 45, of Philadelphia, Pennsylvania, was charged by Information, filed yesterday, with one count of failing to appear as required by conditions of release, announced United States Attorney Zane David Memeger.
If convicted, Johnson faces a maximum possible sentence of 10 years in prison, up to three years of supervised release, a fine, and a $100 special assessment.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Patrick J. Murray.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Penn National Racing Official Sentenced to 4 Months in Prison for Fraud in Race Rigging SchemeRead the Press Release
HARRISBURG - The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that a racing official at Penn National Race track in Grantville, was sentenced to 4 months in prison today by Chief U.S. District Court Judge Christopher C. Conner.
According to United States Attorney Peter Smith, Craig Lytel, age 61, of Hershey, Pennsylvania was an employee of the Hollywood Casino at Penn National Race Track (Penn National) who served as a racing official at the track. Lytel pled guilty in September 2015 to wire fraud for accepting money and other gratuities in exchange for providing inside information to trainers on which races to enter their horses in order to have a better chance at winning. On one occasion Lytel was the recipient of an interstate wire transfer of $1,000 from a bank in Kentucky to Lytel’s bank in Pennsylvania in exchange for providing inside information on the makeup of horse races at Penn National. Lytel admitted to accepting cash, dinners, gift cards and golf outings in exchange for the information thereby depriving his employer of his honest service and defrauding other horsemen and the betting public. The identities of the trainers who paid Lytel for the information was not disclosed by the government as the investigation is ongoing.
Lytel was sentenced to serve 4 months in a federal prison and was ordered to surrender at the institution selected by the Bureau of Prisons by 10:00 a.m. on March 23, 2016.
The case was investigated by the Harrisburg Resident Office of the Federal Bureau of Investigation and the Pennsylvania Horse Racing Commission as part of an ongoing investigation of racing at Penn National.
Prosecution of the case was handled by Assistant United States Attorney William A. Behe.
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Pascua Yaqui Brothers Sentenced to Prison for Aggravated Assaults on the Pascua Yaqui Indian NationRead the Press Release
TUCSON, Ariz. – On February 10, 2016, Steven Gabriel North, 33, of Tucson, Ariz., and a member of the Pascua Yaqui Indian Nation, was sentenced by U.S. District Judge James A. Soto to serve 63 months in prison for aggravated assault with a dangerous weapon. On February 18, 2016, Antonio Ruben North, 30, also of Tucson, Ariz., and a member of the Pascua Yaqui Indian Nation, and brother and co-defendant of Steven Gabriel North, was sentenced by Judge Soto to serve 28 months in prison for aiding and abetting his brother in committing aggravated assault with a dangerous weapon. Both defendants had previously pleaded guilty to these offenses.
On July 25, 2014, Steven Gabriel North stabbed four victims with a knife during an altercation. Antonio Ruben North aided his brother in committing the stabbings by physically fighting with the victims. When fleeing from the scene after the altercation, the defendants ran over one of the victims with their vehicle. All four victims suffered injuries from the assault, which occurred on the Pascua Yaqui Indian Nation. One of the victims is also a member of the Pascua Yaqui Indian Nation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Pascua Yaqui Police Department. The prosecution was handled by Angela W. Woolridge, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-15-0266-TUC-JAS
RELEASE NUMBER: 2016-012_North
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Palmer man indicted for role in heroin related deathRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin R. Feldis announced today that an indictment has been returned charging a Palmer man with multiple drug felonies, including one count of distributing heroin that led to the death of a young man who used the heroin.
Hiram Luis Ducasse, Jr., 26, is the only defendant named in the three-count indictment. The first count charges Ducasse with conspiring with others to distribute heroin. The second and third counts both charge Ducasse with actually distributing heroin or otherwise possessing heroin with the intent to distribute it. The second count specifically charges Ducasse with distributing the heroin that resulted in the death of another individual, listed in the indictment as M.C.
The indictment stems from an investigation launched by the Drug Enforcement Administration (DEA) and the Alaska State Troopers (AST) after M.C.’s death in December 2015. It is related to two other indictments also issued by the federal grand jury today charging five other individuals from Wasilla, Palmer, and California with drug trafficking and related gun crimes.
Assistant U.S. Attorney Stephanie C. Courter, who presented the case to the grand jury, indicated that Ducasse faces a mandatory minimum penalty of 20 years in prison for the heroin distribution that led to M.C.’s death. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.
The charges against Ducasse and the related indictments are the latest in the ongoing efforts of federal and state law enforcement to combat the increasing prevalence of heroin in our community. According to a February 2015 publication issued by the National Institute on Drug Abuse (NIDA), overdose deaths from heroin abuse have more than doubled since 2010. The Centers for Disease Control (CDC) found that, in 2013 alone, drug overdose was the leading cause of injury death. That year, overdoses caused more deaths than motor vehicle traffic accidents and firearms. Similarly, according to the DEA, of the approximately 47,055 unintentional drug overdose deaths that occurred in the United States in 2014, 61 percent of those (28,647) were caused by prescription painkillers and heroin.
“Sadly, heroin use and distribution is on the rise throughout the country and in Alaska with often tragic consequences; this is one such tragic case,” said Acting U.S. Attorney Feldis. “As a community we must all play a role in combatting the use and distribution of illegal drugs and the addiction, crime and destruction that can too often result.”
“Nationwide, a drug overdose occurs every 12 minutes in which a life is taken by anonymous predators, however today, this heroin dealer is named and will face full accountability,” said DEA Special Agent in Charge Keith Weis.
“Drug and alcohol addiction continues to destroy Alaskans’ lives and we are committed to being part of the solution,” said AST Captain Jeff Laughlin. “By working together with local, state and federal partners, those who are trafficking illicit drugs and contributing to the destruction of our neighbors’ lives will be relentlessly pursued and held accountable. Addiction is a disease, and those who contribute to this illness are put on notice that they will be held responsible, as evidenced by this indictment.”
Ducasse will be arraigned in federal court in the coming days. The DEA and AST conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Palm Beach County Resident Convicted of Narcotics Trafficking and Unlawful Gun PossessionRead the Press Release
On February 11, 2016, following a four-day trial, a federal jury in West Palm Beach, Florida, convicted Kevin Raphael Bully of narcotics trafficking and unlawful possession of a firearm.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and A.D. Wright, Special Agent in Charge, Drug Enforcement Agency (DEA), Miami Field Office, made the announcement.
This case stemmed from an investigation into the importation of Alpha-pyrrolidinopentiophenone (“α-PVP”), aka “Flakka,” from China into the United States. In March of 2015, as a part of an ongoing investigation regarding the illegal drug trafficking of synthetic cathinones, specifically Flakka, DEA agents received information about suspected narcotics packages being delivered to Palm Beach County. DEA agents in London, England received information from the British authorities regarding multiple packages that were intercepted coming from a chemical company in Hong Kong, China. The Chinese based chemical company had been utilizing a shipping company to transport chemicals to buyers in the United States. The British authorities found approximately seven packages that contained a white crystallized substance which tested positive for the presence of α-PVP. DEA agents in London provided West Palm Beach agents with the packages’ address information and forwarded the deliveries. The local agents, including a law enforcement officer dressed as a DHL employee, delivered a package to the listed address. Kevin Raphael Bully, 26, of Palm Beach County, answered the door of the identified address and took possession of the package upon delivery.
During the course of the investigation, Bully’s cell phone was found to contain text messages discussing the importation and receipt of packages containing Flakka. In July of 2015, Bully was found at a hotel in Boca Raton, Florida, in possession of over 50 grams of heroin, 1,600 tablets of Zanax, a digital scale and packaging used for the distribution of narcotics.
At trial, Bully was found guilty of seven of the eight counts charged in a superseding indictment, to wit: conspiracy to possess with intent to distribute α-PVP, in violation of Title 21, United States Code, Section 846; attempted possession with intent to distribute α-PVP, in violation of Title 21, United States Code, Section 841(a)(1); conspiracy to import α-PVP, in violation of Title 21, United States Code, Section 963; attempting to import α-PVP, in violation of Title 21, United States Code, Section 963; possession with intent to distribute heroin and Zanax, in violation of Title 21, United States Code, Section 841(a)(1); and possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1). Bully was found not guilty of possessing a firearm in furtherance of a violent or drug-trafficking offense, in violation of Title 18, United States Code, Section 924(c)(1)(A).
Bully faces a maximum sentence of 20 years in prison on the drug importation and trafficking counts. He also faces a maximum sentence of 10 years in prison for the firearm offense.
“The manufacture, importation and sale of synthetic drugs such as ‘Flakka’ presents a danger to our citizens, since these illicit narcotics are being produced without regard to safety protocols and can have grave negative health effects upon human consumption,” said United States Attorney Ferrer. “Floridians can continue to be proud of the hard work and cooperation by federal, state and local law enforcement to identify, investigate, and prosecute the offenders who bring synthetic drugs into our communities.”
DEA Special Agent in Charge A.D. Wright stated, “The presence of Flakka in our communities is extremely dangerous. Because of the violent and uncontrollable effects it has when ingested, it threatens everyone’s safety and highly jeopardizes the community’s well-being. DEA, along with our law enforcement partners, will continue its commitment to the fight against synthetic drugs, particularly Flakka, by identifying and investigating its trafficking and distribution throughout the state of Florida.”
Mr. Ferrer commended the investigative efforts of the DEA and support of the United States Marshals Service. The case was prosecuted by Assistant U.S. Attorney Lothrop Morris.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owner of Commercial Supply Company Admits He Defrauded Public and Private Customers of More Than $700,000Read the Press Release
TRENTON, N.J. – A part owner of Bayway Lumber, a Linden, New Jersey, company that sold commercial and industrial products to numerous public and private entities, today admitted his role in a scheme to defraud customers out of $708,386, U.S. Attorney Paul J. Fishman announced.
Robert R. Dattilo, 61, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of conspiracy to commit mail and wire fraud.
According to documents filed in this case and statements made in court:
From 2007 to November 2015, Dattilo conspired with others to defraud certain customers by engaging in fraudulent business practices, including overbilling, charging for more expensive items or larger quantities of items, and providing free items to employees of customers, then recouping the cost of the items (and additional profits) by overbilling and fraudulent billing.
At Dattilo’s direction, Bayway Lumber inflated the prices on items sold or intentionally failed to provide the prices called for in contractual agreements between Bayway Lumber and customers, including the University of Medicine and Dentistry of New Jersey (UMDNJ) and its successor entities – Rutgers University and University Hospital; the City of Elizabeth; and the New York Transit Authority. These methods included:
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Concealing the true cost of items to Bayway Lumber, sometimes by manually altering vendor invoices, in order to enable Bayway Lumber to bill UMDNJ higher mark-ups.
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Charging Elizabeth prices that did not apply the discounts called for by contracts.
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Consistently billing the Transit Authority for the most expensive items, such as doors, frames and door hardware, permitted by the contract, although Bayway Lumber was providing less-expensive items than what was ordered.
Dattilo also conspired to provide certain customers, such as the Philadelphia Housing Authority, Con Edison, the New York Department of Corrections and the City of Newark, with lower-quality lumber than the customers ordered and paid for. The lower-quality lumber, including “reject” lumber, did not meet certain industry specifications and was not of construction-grade quality, as required by contract. To conceal this product substitution scheme, Dattilo directed Bayway Lumber employees to spray paint or rearrange the lower-quality lumber sent to the customer entities in order to hide any markings on the lumber that would indicate that it was the lower-quality lumber. At Dattilo’s direction, Bayway Lumber also issued invoices to customers that falsely described the lower-quality lumber as the higher-quality lumber that the customers ordered.
Employees of some of Bayway Lumber’s customers, including Amtrak, the Plainfield Board of Education and a Bergen County company identified in the information as “Company 1,” were given a variety of items, including electronics, tickets to sporting events, merchandise and gift cards. Bayway Lumber then overbilled and fraudulently billed those customers to recoup the cost of the gifts, plus additional profits. Dattilo kept a running tally of how much Bayway Lumber overbilled and fraudulently billed those customers, which Dattilo referred to as the “Bank,” to ensure that Bayway Lumber recovered the full cost of the free items.
The charge to which Dattilo pleaded guilty carries a maximum potential penalty of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest. Sentencing is scheduled for May 23, 2016.
U.S. Attorney Fishman credited special agents with the Office of Inspector General, U.S. Department of Housing and Urban Development, under the direction of Special Agent in Charge Christina Scaringi; special agents of the FBI, under the direction of Acting Special Agent in Charge Andrew Campi; and the Office of Inspector General, Amtrak, under the direction of Special Agent in Charge Robert Koons, as well as investigators of the U.S. Attorney’s Office, for conducting the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Barbara R. Llanes and Cari Fais of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Alain Leibman Esq., Princeton, New Jersey
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Otero County Prison Inmates Sentenced to Federal Prison for Scheme to Smuggle Drugs into Otero County PrisonRead the Press Release
ALBUQUERQUE – Two inmates who were housed at the Otero County Prison Facility (OCPF) in Chaparral, N.M., were sentenced today in federal court in Las Cruces, N.M., for their participation in a conspiracy to smuggle methamphetamine and heroin into the OCPF. Armando Lopez, 29, of Anthony, Texas, was sentenced to 84 months in prison followed by three years of supervised release, and Eric Lovato, 32, of Alamogordo, N.M., was sentenced to 70 months in prison followed by three years of supervised release.
Lopez and Lovato were two of six individuals charged in April 2014, in a criminal complaint with conspiracy to violate the federal narcotics laws by smuggling controlled substances into the OCPF. The other defendants charged with participating in the conspiracy were Luis Delgadillo, 39, of El Paso, Texas, who was a corrections officer at OCPF during the conspiracy, Ana Lopez, 26, of Albuquerque, N.M., Nancy Salas, 37, of Alamogordo, N.M., and Gary Borja, 28, of Albuquerque. All six defendants subsequently were indicted on Aug. 20, 2014, and charged with conspiracy to distribute methamphetamine and heroin from Dec. 2013 through April 26, 2014, in Otero County, N.M.
The FBI initiated an investigation into the case in Jan. 2014, after receiving information from the New Mexico Corrections Department showing that Delgadillo was smuggling heroin and methamphetamine into the OCPF. The investigation, which included a review of recorded inmate telephone calls and OCPF surveillance video, physical surveillance and the results of inmate drug testing, identified the six defendants as members of a conspiracy who smuggled narcotics into the OCPF between Jan. 2014 and April 2014.
Lovato pled guilty to the indictment in Oct. 2015, and Armando Lopez entered a similar guilty plea in Nov. 2015. Lovato admitted recruiting Salas to smuggle drugs into the prison and deliver the drugs to Delgadillo, and Lopez admitted recruiting Ana Lopez to do the same thing. On April 26, 2014, at Lopez’s direction, Ana Lopez met with Delgadillo and gave him 25 grams of methamphetamine, 11 grams of heroin and ten Suboxone pills for Delgadillo to smuggle into OCPF.
The four co-defendants have entered guilty pleas to the indictment. On Jan. 12, 2016, Delgadillo was sentenced to 40 months in prison followed by three years of supervised release. On June 24, 2015, Ana Lopez was sentenced to 30 months in federal prison followed by two years of supervised release. Borja and Salas have yet to be sentenced.
This case was investigated by the Las Cruces office of the FBI and the New Mexico Corrections Department and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
This case is 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 trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Oregon Husband and Wife Plead Guilty to Crimes Related to Filing False Retaliatory Liens Against Federal Judges and Other Federal OfficialsRead the Press Release
An Oregon husband and wife pleaded guilty today to crimes related to filing false retaliatory liens against two federal judges, a clerk of court and a federal prosecutor for performing their official duties, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Ronald D. Joling, 72, formerly of Coquille, Oregon, pleaded guilty to one count of conspiracy to file false retaliatory liens against government officials. His wife, Dorothea J. Joling, 73, also formerly of Coquille, pleaded guilty to one count of filing a false retaliatory lien. In October 2014, the Jolings were convicted on various criminal charges related to their federal income taxes. As part of their guilty pleas today, the Jolings admitted that while they were on pretrial release in the criminal tax case they filed false retaliatory liens claiming that multiple federal officials each owed the Jolings $100.003 million.
Ronald Joling admitted that between August 2013 and February 2014 he conspired with his wife to file and cause the filing of false liens against the real and personal property of two federal judges assigned to the criminal tax case, the Clerk of Court for the U.S. District Court for the District of Oregon and the Assistant U.S. Attorney who prosecuted the tax case. These liens were filed in the public records of the State of California. He also admitted to filing false liens against a former federal judge and the former U.S. Attorney for the District of Oregon. As part of her guilty plea, Dorothea Joling admitted to filing and causing the filing of a false lien against the judge who presided over the Jolings’ criminal tax case.
The Jolings were scheduled to be sentenced in the tax case on April 22, 2015, but did not appear in court. They were fugitives until they were arrested on Oct. 5, 2015 in Arizona. On Dec. 11, 2015, the Jolings were sentenced in the criminal tax case; Ronald Joling was sentenced to 97 months in prison and Dorothea Joling was sentenced to 48 months in prison.
The Jolings each face a statutory maximum sentence of 10 years in prison and a $250,000 fine on the retaliatory lien charges. U.S. District Judge Michael J. McShane set sentencing for June 22.
Acting Assistant Attorney General Ciraolo thanked special agents of the Internal Revenue Service – Criminal Investigation, who investigated the case and Senior Litigation Counsel Jen Ihlo and Trial Attorney Thomas Agnello, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Operation Smokin’ Bones Drug Conspirator Pleads GuiltyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Ilian David Gomez Mathews (25, Orlando) today pleaded guilty to conspiracy to possess with intent to distribute a controlled substance. He faces a maximum penalty of 40 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, between November 2012 and November 2015, Mathews conspired with others to ship at least 15 kilograms of cocaine through the U.S. mail from Puerto Rico to Orange and Osceola counties for distribution. Mathews admitted to distributing the majority of the cocaine, which was typically between 500 grams and two kilograms per month. As part of the scheme, tens of thousands of dollars were transported as bulk cash back to Puerto Rico, to the cocaine supply source.
In November 2015, federal and local law enforcement arrested five individuals, including Mathews, for drug trafficking, as part of Organized Crime and Drug Trafficking Task Force Operation “Smokin’ Bones.” Those individuals were indicted in December 2015. Mathews is the first defendant to plead guilty. The remaining individuals, Jose Javier Nieves Torres (45, Kissimmee); Dennis Rodriguez De Jesus (38, Kissimmee); Ramon Alberto Castro Ortega (26, St. Cloud); and Hector Manual Sanchez Garay (55, Orlando) are awaiting trial.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Orlando Police Department. It is being prosecuted by Assistant United States Attorney J. Bishop Ravenel.
Oklahoma Man Pleads Guilty to Making Bomb ThreatRead the Press Release
BEAUMONT, Texas – An Oklahoma man has pleaded guilty to federal charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Parker Ryan Little, 19, of Wagoner, OK, pleaded guilty in federal court today to charges of making a false bomb threat in an appearance before U.S. Magistrate Judge Keith Giblin.
According to information presented in Court, on April 11, 2015, an emergency call was placed stating that a person who identified himself as “M.S.” had just shot his mother, strapped a bomb to his 21 year old daughter’s chest and was armed with an AR-15. The caller provided an address in Port Neches, Texas. The call was placed from a telephone number that was later determined to be associated with Google Voice, a telephone service that makes calls via the internet. Due to the nature of the call, the Jefferson County SWAT team was dispatched to the address. After approximately two and one half hours, SWAT team members made contact with the occupant of the residence, who had no knowledge or involvement in the alleged incident.
That same night, the Corinth Police Department received a similar call. Corinth Police Officers were dispatched to a home in Shady Shores, Texas, which is located in Denton County. Denton County dispatch received a call from a male stating he had shot his mother, strapped a bomb to his sister and was in possession of a knife and a rifle. The call was placed from the same Google Voice number used to make the emergency call earlier in the day in Port Neches. The Denton bomb squad, the Denton County Sheriff’s Department SWAT and the Texas Rangers responded to the address in Shady Shores. Eventually, two male occupants and one female occupant exited the residence. No evidence of the reported incident was found inside the home. The occupants were determined to have no involvement in the incident.
During the course of the investigation, it was determined that a computer hacker nicknamed “Demon” had been contacting a former resident of the Port Neches address and a resident of the Shady Shores home and making various threats. Investigators, utilizing subpoenas and search warrants, were able to determine that the email address used to initiate the Google Voice account and a register Twitter account @DeMoNTheLord were owned by the defendant, Parker Little. Little used these accounts to harass well known on-line gamers, some of whom had millions of Twitter followers, and attempt to coerce them into following @DeMoNTheLord on Twitter or mention @DeMoNTheLord, a positive light, presumably to help him gain more followers and increase his own stature. If they would not comply with his demands, he would seek revenge on them in various ways, including “swatting” or “doxxing.” “Swatting” has become prevalent among gamers, targeting those who livestream or broadcast themselves and their game play live over the internet. “Swatting” involves the placing of a hoax call to 9-1-1, usually reporting a serious crime such as a hostage situation or active shooter in order to draw a response from law enforcement. “Doxxing” or “doxing” is the Internet-based practice of researching and broadcasting personally identifiable information about an individual, posting it in public forums. Investigators were able to identify at least 7 other victims of Parker’s on-line harassment, some of whom were “swatted” in a manner similar to the victims in Port Neches and Shady Shores.
Little faces a term of imprisonment of not more than 10 years, a fine not to exceed $250,000 or twice the pecuniary loss to the victim or gain to the defendant. He also faces a term of supervised release of not more than three years following his release from custody. A sentencing date has not been determined at this time.
This investigation was conducted by the Federal Bureau of Investigation, the Texas Rangers, the Port Neches Police Department, Jefferson County Sheriff’s Department, the Corinth Police Department and the Denton County Sheriff’s Department. This case is being prosecuted by Assistant U.S. Attorney Christopher T. Tortorice.
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Oakmont Man Charged with Financial CrimesRead the Press Release
PITTSBURGH, PA: An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on charges of bankruptcy fraud, money laundering, conspiracy and structuring financial transactions, United States Attorney David J. Hickton announced today.
The five-count indictment, returned on Feb.16, named Louis Lamanna, 50, of Oakmont, Pa.
According to the superseding indictment presented to the court, Lamanna committed bankruptcy fraud when he filed for personal bankruptcy and failed to disclose numerous assets such as open and closed bank accounts, various transfers of funds, and his ownership of a luxury vehicle. The luxury vehicle was ultimately sold, and Lamanna laundered the approximately $32,000 obtained from the sale of the vehicle and hid those proceeds from the bankruptcy court and his creditors. Lamanna also conspired with others to structure more than $170,000 in cash withdrawals from accounts at PNC Bank and First Commonwealth Bank for the purpose of evading currency transaction reporting requirements in a further attempt to hide funds from the bankruptcy court and his creditors.
The law provides for a maximum total sentence of 45 years in prison, a fine of $1,750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Oakland Resident Sentenced to 12 Months’ Imprisonment in Tax Fraud ConspiracyRead the Press Release
OAKLAND – Tanya Keith was sentenced today to 12 months’ imprisonment for conspiracy to file false federal tax returns, announced Acting United States Attorney Brian J. Stretch and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Michael T. Batdorf. Today’s sentence follows Keith’s September 17, 2015, guilty plea to the conspiracy charge.
On January 15, 2015, Keith, 48, of Oakland, was charged in a thirteen-count indictment along with co-defendants, Cassandra Tompkins, 48, of Oakland, Cordia Spearman, 46, of Vacaville; and Damien Mitchell, 52, of El Sobrante. All four defendants were charged with conspiracy to file false federal tax returns, in violation of 18 U.S.C. § 286. Keith was also charged with wire fraud, in violation of 18 U.S.C. § 1343, and aggravated identity theft, in violation of 18 U.S.C. § 1028A. Tompkins and Mitchell faced additional related charges.
Pursuant to her plea agreement, Keith admitted that between January 15, 2011, and May 15, 2012, she, along with Tompkins, Spearman and Mitchell, obtained the names and social security numbers of other individuals and used the information to prepare false federal income tax returns. Keith acknowledged that defendants filed a total of 219 false federal income tax returns with the IRS. Defendants claimed over $678,000 in tax refunds of which $287,498 was paid by the IRS.
All four defendants entered guilty pleas to the conspiracy change. Tompkins, Spearman, and Mitchell pleaded guilty on August 20, 2015. Tompkins acknowledged maintaining notebooks that listed the names and other personal identifying information for taxpayers, along with false W-2s, which she filed with the IRS. Further, all four defendants admitted to receiving a portion of the improperly obtained tax refunds.
Keith’s sentence was handed down by the Honorable James Donato, U.S. District Judge. Judge Donato also sentenced Keith to pay $19,944 in restitution and to serve 3 years of supervised release. Keith will begin serving her sentence on April 18, 2016.
Judge Donato previously sentenced Tompkins and Spearman for their respective roles in the scheme. Judge Donato sentenced Tompkins to 20 months’ imprisonment and Spearman to 3 years of probation, 6 months of which will include electronic monitoring. Mitchell’s sentencing has not yet been scheduled.
Assistant U.S. Attorney Cynthia Stier is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
North Carolina Man Pleads Guilty in U.S. Treasury Check SchemeRead the Press Release
A Smithfield, North Carolina, man pleaded guilty today to one count of a dual object conspiracy to defraud the United States and commit theft of public money, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina.
According to court documents, Oscar Barahona Fiallos, 52, owned and operated a tax preparation business in Smithfield. In 2011 and 2012, Fiallos cashed large numbers of U.S. Treasury checks issued as a result of fraudulent tax returns filed with the Internal Revenue Service (IRS) in the names of third parties. The checks were provided to Fiallos by co-conspirators and Fiallos never met the third-party payees, who purportedly lived in New York, New Jersey and North Carolina. Fiallos deposited the checks into his bank account and then provided co-conspirators with cash equal to the value of the check, less a check cashing fee. After a bank account was closed, Fiallos obtained a check cashing license so that he could continue cashing checks for his co-conspirators. He also prepared Individual Taxpayer Identification Number applications and false tax returns for third parties he did not meet and who did not sign the documents.
Fiallos faces a statutory maximum sentence of five years in prison. In his plea agreement, he has agreed to pay restitution to the United States in the amount of $2,802,496. The sentencing hearing is set for June.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Bruce commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Lauren M. Castaldi and Nathan P. Brooks of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
North Carolina Man Pleads Guilty in Tax Refund Fraud SchemeRead the Press Release
A Raleigh, North Carolina, man pleaded guilty today to one count of conspiracy to commit theft of public money and one count of theft of public money, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina announced.
According to court documents, in 2011 and 2012 Wilfredo Acosta Hidalgo, 47, conspired with check cashers to cash U.S. Treasury refund checks issued as a result of fraudulently-filed income tax returns. Hidalgo provided the check cashers with U.S. Treasury checks issued to third-parties in whose name the fraudulent returns were filed. The check cashers deposited the U.S. Treasury checks into their business bank accounts and provided Hidalgo with cash equal to the value of the U.S. Treasury checks, less a check-cashing fee. The third-party payees were not present when the Treasury checks were cashed.
Hidalgo faces a statutory maximum sentence of five years in prison for the conspiracy charge and 10 years in prison for the charge of theft of public funds. In his plea agreement, he has agreed to pay restitution to the United States in the amount of $4,280,871. Hidalgo’s sentencing has not been scheduled.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Bruce commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Lauren Castaldi and Nathan Brooks of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
North Carolina Man Pleads Guilty in Tax Refund Fraud SchemeRead the Press Release
WASHINGTON – A Raleigh, North Carolina, man pleaded guilty today to one count of conspiracy to commit theft of public money and one count of theft of public money, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina announced.
According to court documents, in 2011 and 2012 Wilfredo Acosta Hidalgo, 47, conspired with check cashers to cash U.S. Treasury refund checks issued as a result of fraudulently-filed income tax returns. Hidalgo provided the check cashers with U.S. Treasury checks issued to third-parties in whose name the fraudulent returns were filed. The check cashers deposited the U.S. Treasury checks into their business bank accounts and provided Hidalgo with cash equal to the value of the U.S. Treasury checks, less a check-cashing fee. The third-party payees were not present when the Treasury checks were cashed.
Hidalgo faces a statutory maximum sentence of five years in prison for the conspiracy charge and 10 years in prison for the charge of theft of public funds. In his plea agreement, he has agreed to pay restitution to the United States in the amount of $4,280,871. Hidalgo’s sentencing has not been scheduled.
Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Bruce commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Lauren Castaldi and Nathan Brooks of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New York Man Sentenced to 42 Months in Prison for ExtortionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that KEVAHN THORPE, 25, of Brooklyn, N.Y., was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 42 months of imprisonment, followed by two years of supervised release, for extorting a Connecticut resident last summer.
According to court documents and statements made in court, between June 26 and July 7, 2015, THORPE sent text messages and made phone calls to a Connecticut resident, demanding money and a pair of sneakers from the victim. If the victim failed to comply, THORPE threatened to publish certain information that he knew would damage the victim’s reputation.
On July 7, 2015, the victim met with THORPE at a Manhattan hotel and gave him an envelope with $4,000 cash in it. THORPE was arrested at that time.
On November 4, 2015, THORPE pleaded guilty to two counts of extortion.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
New York Attorney Who Defrauded Two International Companies Out of Hundreds of Thousands of Dollars Sentenced to More Than Four Years in PrisonRead the Press Release
TRENTON, N.J. – A New York attorney was sentenced today to 57 months in prison for defrauding two multi-national companies out of hundreds of thousands of dollars by fraudulently billing them for services that were never provided, U.S. Attorney Paul J. Fishman announced.
After a two-week trial before U.S. District Judge Michael Shipp in June 2015, a jury deliberated for three hours before convicting Marijan Cvjeticanin, 52, of St. James, New York, of all nine counts of the indictment charging him with mail fraud. Judge Shipp imposed the sentence today in Trenton federal court.
According to the documents filed in this case and the evidence presented at trial:
From September 1996 to September 2012, Cvjeticanin worked for Wildes & Weinberg P.C., a New York law firm specializing in immigration law, first as a paralegal and then as an attorney. Among other clients, the firm represented Automatic Data Processing Inc. (ADP) and Broadridge Financial Solutions Inc. (Broadridge) in connection with various immigration law matters. Cvjeticanin was the case manager handling day-to-day tasks, such as preparing Department of Labor certifications and applications for permanent residency for certain foreign workers of those companies employed in the United States on a temporary basis.
The application process required ADP and Broadridge to place job advertisements in the geographic location where the relevant position was located and demonstrate that there were no minimally qualified United States citizens available to fill that position. Wildes & Weinberg arranged for an independent advertising agency to contract with ADP and Broadridge to place the advertisements.
At some point prior to 2010, Cvjeticanin caused ADP and Broadridge to replace the independent advertising agency with Flowerson Holdings Inc., a/k/a Flowerson Advertising (Flowerson). Unbeknownst to Wildes & Weinberg, ADP, or Broadridge, Cvjeticanin was the owner and principal of Flowerson. From that point until September 2012, Flowerson purportedly handled all of the certification advertisement obligations for ADP and Broadridge. In reality, Cvjeticanin did not place the majority of the advertisements as required and instead pocketed the monies paid to him by ADP and Broadridge.
In September 2012, Wildes & Weinberg learned through a routine audit of employee email accounts that Cvjeticanin owned and controlled Flowerson and fired him. The subsequent investigation revealed that between 2010 and September 2012, ADP and Broadridge collectively paid Flowerson approximately $579,000 for advertisements relating to permanent residency applications. Virtually all of the invoices that Flowerson submitted to ADP and Broadridge included charges for advertisements purportedly placed in Computer World magazine as well as advertisements placed in newspapers such as The New York Times, The Boston Globe, The Star-Ledger, The Seattle Times, and others. However, Cvjeticanin never placed the majority of advertisements. Instead, he kept the money for his personal benefit.
The investigation also revealed that from time to time the government would conduct audits of labor certifications submitted on behalf of ADP and Broadridge and request additional information from the filer, including copies of the print advertisements that had been placed. Cvjeticanin was responsible for gathering the print advertisements responsive to the government audit requests. Because Cvjeticanin had not placed most of the print advertisements, he was unable to provide the copies. Cvjeticanin took out advertisements after he received notice of the audit. Cvjeticanin then fraudulently superimposed those advertisements on a newspaper from another date and made a photocopy, which he submitted to the government. The photocopied submissions purported to show that the relevant advertisements had been placed on the appropriate dates.
In addition, during today’s sentencing proceeding, prosecutors asserted that Cvjeticanin had also been practicing law in the immigration courts after his conviction despite having been suspended from such practice by the U.S. Department of Justice, Executive Office for Immigration Review, Board of Immigration Appeals. Cvjeticanin was suspended from practice before the Board of Immigration Appeals, the immigration courts, and the Department of Homeland Security as of Nov. 2, 2015, because of his felony convictions in this matter. Cvjeticanin was also ordered to notify his clients of his suspension. Nevertheless, Cvjeticanin continued to represent clients before the immigration courts in New York City into 2016. Cvjeticanin is also currently the subject of disbarment proceedings in New York State.
In addition to prison time, Judge Shipp sentenced Cvjeticanin to three years of supervised release and ordered him to forfeit $668,977.
U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence S. Opiola, Newark Field Office, and the U.S. Department of State Diplomatic Security Service, New York Field Office, under the direction of Special Agent in Charge David Schnorbus, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Francisco J. Navarro and Dennis C. Carletta of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: Lorraine Gauli-Rufo Esq., Verona, New Jersey; Thomas Ambrosio, Esq., Lyndhurst, New Jersey
New Orleans Man and His Restaurant Plead Guilty to Employing Unauthorized Aliens and Making False StatementsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KE LIAN ZHAO, age 50, of Kenner, pled guilty to employing unauthorized aliens at his restaurant, LA JUMBO CHINA BUFFET (“JUMBO BUFFET”), and JUMBO BUFFET pled guilty to two counts of making false statements to federal agents.
According to court documents, from a time unknown but prior to August 2011 and continuing through March 2015, ZHAO knowingly and unlawfully hired or recruited three aliens for employment in the United States, knowing the aliens were unauthorized, as defined by section (h)(3) of Title 8, United States Code, Section 1324a. After hiring the unauthorized aliens, ZHAO continued to employ them in the United States, knowing that it was unlawful to employ such aliens.
During this time frame, JUMBO BUFFET knowingly and willfully provided materially false, fictitious, or fraudulent statements or representations to agents of the United States Department of Homeland Security (“DHS”) in response to a Notice of Inspection and administrative subpoena, requesting an inspection of I-9 Forms. When DHS agents requested information about the employees of JUMBO BUFFET working at the restaurant on or about January 16, 2013, JUMBO BUFFET provided false and fictitious documents showing that it only employed Asian workers during this period. In fact, witness interviews, surveillance, and other admissible evidence, including statements from a company representative with authority to bind the company, confirm that JUMBO BUFFET employed Hispanic workers, who were unauthorized aliens as defined by Title 8, United States Code, Section, 1324a(h)(3), and unlawfully employed them at the restaurant.
Further, on or about September 26, 2013, JUMBO BUFFET, knowingly and willfully provided materially false, fictitious, or fraudulent statements or representations to agents of the United States Department of Labor’s Wage and Hour Division (“WHD”) in response to a Request for Information dated September 18, 2013, notifying JUMBO BUFFET, of the existence of a Fair Labor Standards Act investigation. JUMBO BUFFET did not pay its workers according to the Fair Labor Standards Act. Some employees worked six days a week, for approximately 12 hours per day and did not receive overtime pay or minimum wage. When WHD investigators requested payroll information from JUMBO BUFFET, the company altered payroll documents to make it look as if it had complied with minimum wage and overtime pay requirements, when witness statements, surveillance, and other evidence show that employees worked in excess of a 40 hour work week, without being paid overtime, and were not paid minimum wage.
ZHAO faces a possible penalty of up to six months imprisonment, a fine of up to $3,000 per alien and a special assessment of $100. JUMBO BUFFET faces a possible fine of up to $500,000 and a special assessment of $400. Additionally, ZHAO and JUMBO BUFFET may be found to be jointly and severally liable for $52,305.78 in restitution. U.S. District Judge Jane Triche Milazzo set sentencing for May 19, 2016.
U.S. Attorney Polite praised the work of the U.S. Department of Labor, Wage and Hour Division, the U.S. Department of Labor, Office of Inspector General, the United States Department of Homeland Security, and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Sharan E. Lieberman is in charge of the prosecution.
New Orleans Man Sentenced in Ethylone Drug CaseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DAI VAN TRAN, age 33, of New Orleans, was sentenced yesterday for attempting to possess with intent to distribute almost two kilograms of ethylone.
U.S. District Judge Martin L.C. Feldman sentenced TRAN to 36 months imprisonment, three years of supervised release, and a special assessment of one hundred dollars.
According to court records, on March 19, 2014, the United States Postal Inspection Service in New Orleans identified an International Express Mail parcel from China addressed to a local restaurant that contained approximately two kilograms of ethylone powder. Ethylone, a drug similar to MDMA (“ecstasy” or “molly”), is an isomer of butylone, which was prohibited as a Schedule I drug controlled substance earlier in 2014. Postal Inspectors removed the ethylone from the intercepted parcel and replaced it with two kilograms of a decoy non-drug powder in anticipation of making an undercover delivery of the parcel on the following day. TRAN eventually appeared at the restaurant and received the parcel.
U.S. Attorney Polite praised the work of the United States Postal Inspection Service and the Tactical Diversion Squad of the DEA New Orleans Field Division in investigating this matter. Assistant United States Attorney Michael B. Redmann was in charge of the prosecution.
Nebraska Man Sentenced for Counterfeit iPad Return ScamRead the Press Release
BOSTON – A Nebraska man was sentenced yesterday for his role in a conspiracy to purchase genuine Apple iPads from large retail stores, return counterfeit iPads for a full refund, and resell the genuine iPads for cash.
Ernesto Leyva, 27, of Lincoln, Nebraska, formerly of Miami, Florida, was sentenced by District of Nebraska Senior U.S. District Court Judge Richard G. Kopf to 15 months in prison, three years of supervised release and ordered to pay $27,745.33 in restitution.
Leyva was indicted in the District of Massachusetts in July 2015, and subsequently pleaded guilty in October 2015, to one count of conspiracy to traffic in counterfeit goods and transport stolen goods. Co-defendants, Yoan Sanchez Rodriguez, 26, formerly of Hialeah, Florida and Yulaisy Dominguez, 27, formerly of Hialeah, Florida, were also charged in the same conspiracy.
Between December 2012 and December 2013, Leyva engaged in a conspiracy to purchase genuine iPads from Walmart and Target and then return counterfeit iPads to the stores, for a full refund. He would then resell the genuine iPads. The scheme began shortly after Christmas in 2012 and was concentrated on Walmart stores in the Northeast (Massachusetts, New Jersey, New Hampshire, Maine, and Connecticut) between December 2012 and February 2013 and Target stores in Florida in July 2013. The total retail losses to both store chains were over $80,000.
Leyva was arrested in Nebraska in July 2015 and in October 2015 the case was transferred for a plea and sentencing from the District of Massachusetts to the District of Nebraska. Defendants Rodriguez and Dominguez, who are married, are fugitives.
Members of the public who have questions, concerns or information regarding this case or knowledge of the whereabouts of Rodriguez and Dominguez should call 617-748-3274, and messages will be promptly returned.
United States Attorney Carmen M. Ortiz and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. The U.S. Attorney’s Office also wishes to thank the United States Attorney’s Office for the District of Nebraska for the role they played in the resolution of the case. This case is being prosecuted by Assistant United States Attorney Amy Harman Burkart of Ortiz’s Cybercrime Unit and Assistant United States Attorney William W. Mickle, II from the District of Nebraska.
Nassau County Man Arrested and Federally Charged with Receiving Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Clement Ashford Reeves, Jr. (73, Yulee) has been charged by indictment with receiving child pornography over the Internet. If convicted, he faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison and a potential life term of supervision. Reeves was arrested at his residence on February 16, 2016.
This case was investigated by the U.S. Department of Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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.
Missouri Woman Charged with Making Twitter ThreatsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that Safya Roe Yassin, 38, of Buffalo, Missouri, was charged today with communicating threats of violence over the Internet.
Yassin, a U.S. citizen, was charged in a federal criminal complaint that was filed under seal in the U.S. District Court in Springfield, Missouri, on Feb. 17, 2016. She remains in federal custody pending a detention hearing, which is scheduled for February 23, 2016 at 3:00 p.m.
An affidavit filed in support of the complaint alleges that Yassin maintained several social media accounts, including numerous Twitter accounts and a Facebook account, and used a Twitter account to post a threat against two FBI agents. On Aug. 24, 2015, Yassin allegedly posted the names, residences (city, state and ZIP code) and phone numbers of the two FBI agents under the words, “Wanted to kill.”
According to the affidavit, the threat originated with a Twitter account associated with ISIL. During the investigation, federal investigators identified multiple Twitter accounts allegedly used by Yassin, many of which were suspended by Twitter.
The charges contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the FBI, and is being prosecuted by Assistant U.S. Attorneys Brian P. Casey and Abram McGull II of the Western District of Missouri.
Mission Woman Sentenced for Theft of Government PropertyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, woman convicted of Theft of Government Property was sentenced on February 16, 2016, by U.S. District Court Judge Roberto A. Lange.
Denise Sanchez, age 21, was sentenced to time served in custody, 2 years of supervised release, $100 special assessment to the Federal Crime Victims Fund, and $1,809.25 restitution.
Denise Sanchez was indicted for Theft of Government Property by a federal grand jury on September 9, 2015. She pled guilty on December 2, 2015.
On August 25, 2015, Sanchez was arrested for being intoxicated while pregnant and was transported to the Indian Health Services Hospital in Rosebud, South Dakota, for a medical evaluation. Sanchez left the hospital and went to the Community Health Representatives Program Building next to the hospital where she stole a microwave and several food items. Sanchez found keys to a Dodge Durango owned by the Community Health Representatives Program and drove away in the vehicle. Sanchez was located in Valentine, Nebraska the following day and the stolen items were recovered.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson prosecuted the case.
Sanchez has criminal charges pending in Cherry County, Nebraska, and she will be released to authorities in Cherry County.
Mission Woman Sentenced 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 February 16, 2016, by U.S. District Roberto A. Lange.
Julie Little Thunder, age 38, was sentenced to 87 months in custody, 4 years of supervised release, $100 to the Federal Crime Victims Fund and forfeiture of $1,640 in cash.
Little Thunder was indicted by a federal grand jury on May 19, 2015. She pled guilty to the Indictment on December 1, 2015.
On April 9, 2015, a search warrant was executed at Little Thunder’s residence in Todd County, South Dakota. Little Thunder was located in a bedroom in the residence that contained a safe with $1,640 in cash and 34 grams of methamphetamine. The investigation revealed that beginning in 2013, Little Thunder received distributable quantities of methamphetamine from outside suppliers. Little Thunder and her suppliers knew she would distribute the methamphetamine in South Dakota. Over the course of the conspiracy, Little Thunder distributed more than 500 grams of methamphetamine in South Dakota.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorneys Ted McBride and SaraBeth Donovan prosecuted the case.
Little Thunder was immediately turned over to the custody of the U.S. Marshals Service.
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Minnesota Man Indicted for Dealing Firearms without a LicenseRead the Press Release
At Least Three Guns Sold by Feldman Were Recovered From or Connected to Twin Cities Crime Scenes
U.S. Attorney Andrew M. Luger for the District of Minnesota today announced a federal indictment charging Eitan Benjamin Feldman, 28, of Saint Paul, Minnesota, for illegally dealing in firearms without a license and lying on at least nine firearms transaction records. The defendant is expected to appear later today before Magistrate Judge Mayeron in U.S. District Court in Minneapolis, Minnesota.
“There is far too much gun violence in the Twin Cities,” said U.S. Attorney Luger. “Violent crimes involving guns are often committed by people who cannot legally obtain a firearm, but they find a way. According to today’s indictment, Feldman was one of those ways. This defendant engaged in the business of dealing guns without a license. He didn’t conduct background checks on the people to whom he sold the guns and at least three of the guns were connected to Twin Cities crime scenes. Thanks to the dedicated special agents of the ATF, Feldman today is in custody and there is one less backdoor through which potential criminals can get a gun.”
“Today’s arrest should send a message to unlicensed firearm dealers who put the public at risk each time they sell a firearm to a potential criminal,” said Special Agent in Charge James Modzelewski of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) St. Paul Field Division. “They are recklessly circumventing the criminal background check system and it is a crime.”
According to the indictment and documents filed in court, between January 2014 and January 2016, Feldman engaged in a regular pattern and practice of unlawfully dealing in firearms without a license by repeatedly purchasing firearms and offering them for resale within days of getting them. Feldman routinely purchased firearms offered by out-of-state Federal Firearms Licensees (FFLs) through websites such as gunbroker.com, an online firearms auction site. Feldman arranged to have the firearms transferred to L.E. Gun Sales, a FFL in Minnesota, where he received and took possession of the guns after completing and signing the appropriate documentation and submitting to a National Instant Criminal Background System (NICS) check.
According to the indictment and documents filed in court, during the same time period, Feldman regularly listed and offered the same firearms for sale – often at a higher price than what he paid – on armslist.com, a website that allows individuals to list firearms for sale. Of the 41 guns Feldman purchased and re-sold during this time, the average time he actually possessed a gun before offering it for resale was only nine days.
According to the indictment and documents filed in court, Feldman would sometimes include on his for-sale listings on armslist.com a false story indicating that he had actually owned a particular firearm for much longer than he had or concoct a reason why he was then selling the gun. For example, on one listing for a 20-guage pump-action shotgun that Feldman had possessed for only two days before listing on armslist.com, Feldman wrote that he, “is a gun collector, has had the shotgun for two years, never shot it.” On another listing for a .38 caliber handgun that he had possessed for only seven days before listing for resale, Feldman wrote, “bought a couple of years ago but only taken to the range a few times.” In yet another listing for a semiautomatic 9mm carbine rifle that he had possessed for only six days, Feldman claimed that the rifle had been “sitting in [his] closet for a few months” and that he had not fired it for about four months.
According to the indictment and documents filed in court, in July 2015, an ATF Special Agent told Feldman that some of the firearms he had received at L.E. Gun Sales and subsequently sold, had been linked to crime scenes within days of Feldman taking possession of and selling the guns.
According to the indictment and documents filed in court, on April 26, 2015, the Minneapolis Police Department (MPD) recovered a loaded Ruger .380 pistol when responding to a gun-pointing assault. The weapon was submitted for National Integrated Ballistics Information Network (NIBIN) analysis, which showed that the weapon had also been used on March 19, 2015, in a shots-fired incident from which MPD recovered two spent shell casings. Feldman had purchased this same weapon on March 12, 2015, only seven days before the shots-fired incident and 45 days before it was recovered from the gun-pointing crime scene.
According to the indictment and documents filed in court, on May 28, 2015, MPD responded to a narcotics call, during which they recovered a Bersa Thunder .380. This same gun had been purchased by Feldman 18 days earlier on May 10, 2015.
According to the indictment and documents filed in court, on Aug. 25, 2015, Bloomington Police (BPD) identified and stopped several vehicles involved in the transport of at least 50 pounds of marijuana from California to Minnesota. In one of the vehicles, BPD officers recovered a backpack containing two loaded handguns, one of which was a Taurus .38-caliber revolver. One of the suspects admitted that both guns belonged to him and that he had bought the Taurus revolver from a private seller in Minneapolis. That same gun was purchased only three months earlier by Feldman on May 10, 2015.
According to the indictment and documents filed in court, on July 17, 2015, ATF Special Agents executed a search warrant at Feldman’s home in Saint Paul and seized five shotguns. Feldman had completed the transfer of each shotgun at L.E. Gun Sales and had listed and offered each shotgun for resale on armslist.com between two and 25 days of receiving them at L.E. Gun Sales. ATF Special Agents also recovered three firearm bills of sale, showing that Feldman had sold four firearms to three different individuals. Feldman had received the four firearms at L.E. Gun Sales between three and 24 days before reselling them.
According to the indictment and documents filed in court, during at least nine transactions at L.E. Gun Sales in which Feldman received the four firearms seized during the search and 23 other firearms that he offered for resale, he falsely represented his residential address on the Form 4473.
According to the indictment and documents filed in court, on Oct. 2, 2015, ATF Special Agents served Feldman with a written Warning Notice of Unlicensed Firearms Dealing in Violation of Federal Law, warning him that his continuous and repetitive firearm-related activity appears to make him an unlicensed “dealer in firearms” and that he should stop immediately or risk criminal prosecution. Despite the warning, Feldman continued his unlawful dealing in firearms on at least eight more occasions.
According to the indictment and documents filed in court, on Dec. 3, 2015, ATF Special Agents made an undercover purchase of a .38-caliber revolver from Feldman, a gun that he had received 10 days prior. The undercover officer paid Feldman $260 in the parking lot of a local shopping mall. Feldman never sought to verify the identity of the purchaser, nor did he make any effort to determine if the buyer was prohibited by law from purchasing a firearm. Feldman conducted no background check.
According to the indictment and documents filed in court, on Jan. 21, 2016, ATF Special Agents made an undercover purchase of a Hi-Point 9mm semiautomatic carbine rifle from Feldman, a gun that he had received seven days prior. The undercover officer paid Feldman $250 in the parking lot of a local shopping mall. Feldman never sought to verify the identity of the purchaser, nor did he make any effort to determine if the buyer was prohibited by law from purchasing a firearm. Again, Feldman conducted no background check.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Minneapolis Police Department, Saint Paul Police Department and Bloomington Police Department.
Assistant U.S. Attorney Benjamin Bejar for the District of Minnesota is prosecuting the case.
Midland Man Found Guilty of Attempted Murder of Border Patrol AgentRead the Press Release
In Del Rio today, a federal jury found Carl Wayne Wiley guilty of attempted murder of a federal agent, announced United States Attorney Richard L. Durbin, Jr., Rodolfo Karisch, Del Rio Sector Chief Patrol Agent, U.S. Border Patrol, and Christopher Combs, Federal Bureau of Investigation (FBI) Special Agent in Charge of the San Antonio Division.
Wiley was found guilty of one count of attempting to kill one or more United States Border Patrol Agents who were engaged in the performance of their official duties, one count of assaulting, resisting, opposing, impeding, or interfering with one or more United States Border Patrol Agents using a deadly or dangerous weapon, and two counts of using and discharging a .45 caliber Ruger revolver during and in relation to the commission of the aforementioned crimes of violence.
According to court records, Wiley was wanted for Murder and Attempted Murder in Midland, TX and was fleeing prosecution. He was originally spotted by Border Patrol Agents in Sanderson, TX in the early morning hours of June 29, 2014. Wiley took agents on a high speed pursuit before crashing his vehicle. He fled on foot into the brush and avoided arrest by stealing an ATV, then a Ford F-350 pickup truck and several firearms from nearby ranches.
On June 30, 2014, an off-duty Comstock Border Patrol Agent observed the Ford F-350 truck traveling east on Highway 90 near the Comstock Border Patrol checkpoint. The vehicle suspiciously and abruptly turned around short of the checkpoint and proceeded west back toward Comstock, TX. Approximately four miles north of Comstock, an agent attempted to conduct a vehicle stop in order to investigate the suspicious activity. When the agent activated the emergency equipment, Wiley crashed through a ranch fence and continued driving further into the ranch. The vehicle came to a stop after colliding with a tree and Wiley absconded on foot into the brush. Wiley led responding agents on a foot pursuit, and when one agent was closing in on him, Wiley shot at him. Wiley continued to evade agents, shooting again at a group of agents as those agents honed in on his position. The agents were eventually able to surround Wiley and successfully apprehended him after a struggle.
“Wiley was a one-man crime wave crashing across the expanse of West Texas as he fled murder and attempted murder charges in Midland. It is a miracle he did not seriously injure any agents or citizens during his rampage. The agents who risked life and limb to catch him are to be commended for their courage and professionalism. This conviction should remove him from the street for some time to come,” stated United States Attorney Richard L. Durbin, Jr.
Wiley faces up to 20 years imprisonment each for the attempted murder charge and the assault charge. He faces a mandatory ten years for the use of a firearm during and in relation to the commission of a crime of violence. The defendant remains in custody pending sentencing, which is scheduled for June 6, 2016.
This case was investigated by special agents of the Federal Bureau of Investigation with assistance from the United States Border Patrol, Val Verde County Sheriff’s Office and the Midland Police Department. Assistant United States Attorneys Ralph Paradiso and Katherine Griffin prosecuted this case on behalf of the Government.
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